Blog Posts

Commodity Trading Advisors (CTAs) have been a prominent force in the financial markets since the 1970s.  These specialized traders focus on trading futures contracts and other derivative instruments across a wide range of asset classes.  Their strategies, known as managed futures, offer a unique approach to diversification and potential returns.   Key Takeaways – CTA […]

Inverse ETFs, also known as reverse ETFs, are exchange-traded funds designed to profit from a decline in the value of an underlying benchmark. Unlike traditional ETFs that move in the same direction as their target index, inverse ETFs move in the opposite direction. For every 1% decrease in the underlying index, an inverse ETF typically […]

Trading is one of those things that a lot of people think they can do well. But statistics show that the vast majority of day traders lose money. Why is this? This article goes into the reasons behind these losses, looking at the challenges and pitfalls that day traders face in their pursuit of quick […]

Day trading and investing represent two distinct approaches to market participation. Each has its own set of strategies, goals, and risk profiles, rooted in different time horizons and philosophies toward capital growth.   Key Takeaways – Day Trading vs. Investing Time Horizon – Day trading focuses on short-term market moves, while investing aims for long-term […]

The VIX Index, often referred to as the “fear gauge” of the financial markets, measures the market’s expectation of volatility over the next 30 days. Originating from the Chicago Board Options Exchange (CBOE) on the first market day of 1990, it reflects sentiment and anticipated fluctuations in the S&P 500 Index options. When the VIX […]

Liability-Driven Investing (LDI) is an approach primarily used by pension funds, endowments, and insurance companies. Its goal it to match assets with future liabilities, such that obligations to beneficiaries can be met as they come due. LDI strategies have gained prominence in recent decades as pension funds grapple with funding shortfalls and returns that aren’t […]

Volatility-based betting strategies are more sophisticated approaches to trading that adjust position sizes based on the underlying volatility of assets or return streams. These methods try to optimize risk-adjusted returns by either sizing based on risk levels or dynamically changing exposure as market conditions change. Traders who use these strategies recognize that volatility isn’t just […]

Day trading is commonly considered a high-risk, high-reward strategy that involves buying and selling financial instruments within a single trading day. Mutual funds, conversely, are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.   Key Takeaways – Can You Day Trade Mutual Funds? Mutual […]

Mutual funds are a type of investment that allows you to pool your money with other investors and then have a professional manager invest the money for you. A mutual fund investment manager will choose stocks, bonds, and other securities that they believe will perform well, and the mutual fund will then be bought and […]

Correlation measures how two assets move in relation to each other. A negative correlation means that as one asset’s value increases, the other tends to decrease. This relationship is key for portfolio diversification. Investors seek negatively correlated assets or returns stream to balance their portfolios and manage risk. Not all negative correlations are equal; the […]