Blog Posts

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 […]

Key Takeaways – Corporate Bonds Corporate bonds are generally unsuitable for pure day trading They lack the volatility and fast-paced price changes that day traders rely upon to turn quick profits. Corporate bond ETFs like VTC serve a different purpose for longer-term traders/investors They provide portfolio diversification, steady income, and some stability within a balanced […]

Financial market exchanges are owned by a mix of: public shareholders private entities government or quasi-government bodies, and in some cases, technology companies or consortia This reflects diverse ownership structures tailored to each exchange’s strategic goals and operational models. Exchange ownership, particularly stock exchanges, can be understood through the lens of two primary models: public […]

Calculating swap rates, especially in the context of interest rate swaps, involves understanding the principles of fixed income and derivatives markets. Interest rate swaps are financial derivatives that allow two parties to exchange interest rate payments, typically one fixed rate for one floating rate, based on a notional principal amount.   Key Takeaways – How […]

Market-neutral trading strategies are designed to minimize exposure to market risk by simultaneously taking long and short positions in closely related instruments. In this way, it aims for returns largely independent of the overall market movement (i.e., no beta). These strategies are a cornerstone of quantitative finance, which leverage statistical and mathematical models to identify […]

TensorFlow and Keras are Python libraries used for building trading models and strategies. We look at how they can be applied in trading. Key Takeaways – TensorFlow & Keras in Trading TensorFlow and Keras are both open-source libraries for machine learning and deep learning. TensorFlow, developed by the Google Brain team, is a platform that […]