Blog Posts

In this article, we give a step-by-step breakdown of how to calculate portfolio beta. Understanding Beta Beta measures the volatility of a portfolio compared to the overall market. A beta of 1 means the portfolio moves in line with the market. A beta greater than 1 indicates more volatility than the market (higher risk, higher […]

Relative value trading involves identifying and exploiting pricing inefficiencies between related financial instruments or securities.  The key idea behind relative value trading is to identify and capitalize these pricing discrepancies between related instruments, while hedging out other market risks. Traders may use various quantitative models, statistical techniques, and fundamental analysis to identify relative value opportunities […]

Day trading with 0 DTE (Zero Days to Expiration) options is an advanced and risky options trading strategy.  We look at the strategies, risks, and general things to know when it comes to day trading 0 DTE options.   Key Takeaways – 0 DTE Options Not for Long-Term Holds  0 DTE (Zero Days to Expiration) […]

When considering pursuing new trading strategies, conduct an evaluation based on various critical factors that directly impact the potential success and alignment with your trading goals and risk tolerance. We’ll cover those in this article.   Key Takeaways – When to Pursue New Trading Strategies Market Conditions Strategies effective in one scenario may falter in […]

The Dunning-Kruger effect is a cognitive bias wherein individuals with low ability at a task overestimate their ability, and has important implications in trading and finance. It can negatively impact decision-making processes, risk assessment, and ultimately, financial outcomes. We look at the key causes and considerations related to the Dunning-Kruger effect in trading and finance. […]

Overtrading occurs when traders or investors buy and sell financial instruments more frequently than their strategy or financial situation warrants. It often leads to diminished returns and increased risks. Moreover, it often leads to increased costs (commissions, fees, etc.). Understanding the causes, recognizing the types, and employing strategies to avoid overtrading are important for maintaining […]

Trading is largely a process of making mistakes and learning from them to get better. Unfortunately, of course, these mistakes can be very costly. As such, trading can be risky. But risky things are not inherently risky if they’re understood and controlled for. For example, flying an airplane is very risky if you don’t know […]

Making 1% per day consistently through day trading is extremely difficult, risky, and not practical. Achieving a consistent 1% daily return through any trading or investment strategy is extremely challenging and involves a high level of risk. The idea of consistently making such a high return overlooks the complexities and volatilities of financial markets. Sustainable […]

In day trading, distinguishing between signal and noise is important for making informed trading decisions and managing risk effectively. We’ll walk through the concepts, techniques, and strategies for filtering between signal and noise in this article.   Key Takeaways – “Signal” and “Noise” Within the Context of Day Trading Signal – Refers to actionable information […]

Foreign exchange (FX) trading is not an easy game, with various factors influencing the movements of global currencies. One such factor is the economic status of a country, specifically, whether it is a creditor surplus country or a debtor deficit country. This article looks at the characteristics of these countries and how their respective statuses […]