Blog Posts

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 […]

Volatility trading is an advanced approach to trading. These strategies are primarily used in options trading, but they can also be applied to other financial instruments.  Focusing on the magnitude, speed, or variation of price movements – rather than their direction – enables traders to potentially profit in both up and down markets. It’s gained […]

The Percent Risk Model is a risk management, betting strategy, and position sizing framework that helps traders protect their capital while maximizing potential returns.  This approach focuses on limiting the amount of risk taken on each trade to a specific percentage of the total trading account.   Key Takeaways – Percent Risk Model Capital preservation […]

The 1-3-2-6 system is a betting strategy in trading for binary outcome-type instruments like binary options. Traditionally, it’s been a popular betting strategy used in various forms of traditional betting, in games like blackjack and roulette.  This system is designed to help traders manage their risk while potentially maximizing their profits through a structured approach […]