Blog Posts

‘Liquid alternatives’, sometimes called ‘liquid alts’, is a source of investment returns that is both: a) liquid (i.e., you can buy and sell it at a published price during regular market hours) and b) uncorrelated to traditional returns streams (where the ‘alternative’ comes from).   Key Takeaways – Liquid Alternatives Diversification – Liquid alternatives provide […]

The phrase “beating the stock market” – and doing it consistently over time – is often touted as a type of holy grail in trading and investing.  It typically refers to achieving returns that surpass those of a benchmark index, such as the S&P 500.  While this goal is widely pursued and discussed in financial […]

Day traders generally do not beat the stock market. In fact, the vast majority of day traders lose money over time. In this article, we take a detailed look at the evidence.   Key Takeaways – Do Day Traders Beat the Stock Market? The vast majority of traders don’t beat the stock market. Most day […]

Mark Minervini is a popular stock trader and two-time US Investing Champion (1997, 2021) known for his exceptional returns and risk management. His approach combines technical and fundamental analysis into a strategy for identifying and trading high-momentum stocks. Let’s explore the key components of Minervini’s trading strategy.   Key Takeaways – Mark Minervini’s Momentum Trading […]

Trading simulation software has become an integral part of professional trading. This software allows traders to test strategies, practice decision-making, and analyze market behavior without risking real capital. As the financial markets have gotten more complex and data-driven, the importance of strong simulation capabilities has increased dramatically.   Key Takeaways – Trading Simulation Software Used […]

Cross-market arbitrage is a trading strategy that tries to profit from price discrepancies of identical or similar financial instruments across different markets.  This practice is founded on the principle of the law of one price, which states that the same asset should trade at the same price across all markets, assuming no trade restrictions and […]

Financial engineering became popular in the late 1970s as quantitative-minded traders began using mathematical techniques to have an edge in the markets. Its popularity grew in response to the financial crisis of 2007-2008. Financial engineering refers to the application of quantitative methods, especially those from the fields of mathematics, statistics, and computer science, to solve […]

Listerine royalty contracts offer a unique trading and investing opportunity that has been around for over a century.  Originally created due to unclear legal wording, these contracts have consistently provided passive income to institutions and private investors.  With the internet making these contracts more accessible, what was once a little-known investment is now easier to […]

MBS are essentially bonds backed by pools of mortgages. When homeowners make their mortgage payments, those payments flow through to the MBS investors. This offers investors a way to participate in the real estate market without directly owning properties. For traders, they offer a different type of fixed-income product to trade.   Key Takeaways – […]

A volatility surface is a three-dimensional representation of option implied volatilities across different strike prices and expiration dates. It’s an important form of visual analysis in options pricing and risk management. It provides a view of how the market perceives volatility for a particular underlying asset.   Key Takeaways – Volatility Surface Shape reveals market […]