Blog Posts

Portfolio tilt involves adjusting the asset allocation within a portfolio to reflect the trader’s expectations about future market conditions. This shift, often toward specific asset classes or sectors, allows the trader to position their portfolio to potentially benefit from anticipated market trends. Portfolio tilt is commonly done in the context of “base” portfolio that’s well-structured […]

The Series 7 license, administered by FINRA, qualifies individuals to sell a wide range of securities including stocks, bonds, options, and mutual funds. It requires an exam on various financial topics.  The Series 63 license focuses on state securities laws and is necessary for representatives who sell securities within specific states. This ensures they understand their […]

The Chartered Financial Analyst (CFA) program is a globally recognized professional designation offered by the CFA Institute. The program covers a broad range of topics including: Ethical and professional standards Quantitative methods Economics Financial reporting and analysis Corporate finance Equity investments Fixed income Derivatives Alternative investments Portfolio management and wealth planning Key Takeaways – CFA […]

The Chartered Market Technician (CMT) designation is a professional credential awarded to individuals who have demonstrated proficiency in technical analysis and trading techniques. The CMT program is structured to provide a strong understanding of market behavior and technical trading strategies.   Key Takeaways – Chartered Market Technician (CMT) Enhanced Technical Analysis – Master trend analysis, […]

Controlling emotions in day trading is very important for achieving consistent success. Traders can have all the personal talent, but if their emotions aren’t steady, that can ruin everything. We all have our own dispositions. Some of us are more stoic and some of us are more excitable. Traits can help us and hurt us […]

Day trading and gambling are often compared due to their potential for high financial risk and reward. But the important distinction lies in the analytical approach and strategies that can be used in day trading, which differentiate it significantly from gambling.   Key Takeaways – Day Trading vs. Gambling Analytical Edge – Day trading uses […]

The importance of controlling volatility in trading lies in the effect of volatility on compounded returns. Holding return constant, higher volatility reduces the geometric mean more than lower volatility, which means that trades or investments with lower volatility tend to grow more effectively over time. This is because the compounding process penalizes high variability, leading […]

The Global Exchange Rate Assessment Framework (GERAF) is a currency valuation model developed by the US Department of the Treasury to evaluate currency valuations.  It looks at external imbalances and exchange rate misalignments by considering a wide set of economic indicators, structural factors, cyclical factors, and policy variables.  GERAF gives a multilaterally consistent analysis, which […]

Welcome to a comprehensive guide on currency trading and macroeconomic relationships. Currencies are a macro asset class. In a previous article, we looked at currency valuation models. In this article, we’ll delve more specifically into dozens of concepts that are critical to understanding how macroeconomic factors affect currency values and how to use this knowledge […]

Different traders have different ways of determining a currency’s fair value price. Clearly, different expectations and different motivations are what make a market. While many traders have their own decision rules and proprietary systems, there are currency valuation models and ways of looking at the currency markets that are the most common.   Key Takeaways […]