Blog Posts

Trading is filled with strategies aimed at maximizing returns. One of the most debated of these strategies is market timing. Market timing involves attempting to predict the ups and downs of the market, buying assets when they are deemed undervalued and selling them when they reach a higher price point. The allure is obvious – […]

Leverage allows traders to amplify their potential gains from relatively small price movements in the markets. Nevertheless, when used imprudently, leverage and debt narrow the range of market outcomes that are acceptable. Striking the right balance between the judicious use of leverage and prudent risk controls is critical for the longevity and success of day […]

Mosaic theory is an analytical method used in securities analysis. It involves the assimilation of different types of information – public, non-public, and non-material – to create a detailed and wide view of a company’s value or trade/investment potential. The concept is based on the idea of traders and analysts piecing together various bits of […]

Professional traders and hedge funds use various sophisticated currency trading strategies. The strategies used often depend on the traders’ market outlook, risk appetite, and time horizon.   Key Takeaways – Currency Trading Strategies Used by Professional Traders & Hedge Funds We cover the following currency trading strategies, categorized as follows: Fundamental Analysis-Based Strategies Quantitative Analysis-Based […]

Magical Formula Investing is a financial market strategy developed by Joel Greenblatt, a well-respected finance professor and fund manager. This method combines two key financial metrics: earnings yield and return on capital The goal is to systematically identify high-quality companies at bargain prices. We’ll look at the approach and also distill how day traders and […]

Trading offers the potential for financial gains and an intriguing, relatively autonomous career. But before diving in, one needs initial capital, commonly known as a bankroll. Building and managing this initial investment is the foundation of long-term trading success.   Key Takeaways – How To Develop a Bankroll for Trading Foundation for Success – Building and […]

In options trading, synthetic positions offer traders flexibility and the opportunity to mimic the outcomes of traditional stock trading strategies using a combination of options contracts.  Essentially, synthetic long and synthetic short strategies let traders simulate the risk and reward profiles of buying or shorting a stock, respectively, without actually owning or borrowing the underlying […]

Portfolio margin is a method of determining margin requirements that brokers use to evaluate the overall risk of a client’s portfolio. Unlike traditional margin accounts, which typically calculate requirements based solely on individual securities, portfolio margin accounts use a risk-based model. This approach looks at the entire portfolio’s potential for loss in varying market scenarios. […]

The music industry has massive underlying demand and could be of interest for traders or investors looking to get in on a secular trend. YouTube’s most popular videos and most viewed videos ever are disproportionately music videos. The top ones obtain billions of views, garnering popularity that most forms of content could never fathom even […]

Let’s look at some advanced trading strategies. Some of these strategies might not be directly pursuable for most traders – though some are – but they can show the variety of what’s possible, provide awareness, and inspire creativity: Mortgage Basis Trade (Long/Short MBS Pools vs. TBA) This strategy involves taking positions in mortgage-backed securities (MBS) […]