Trading News
Entropy in TradingWhen you think of market pioneers, names like Warren Buffett or George Soros might come to mind. But the architect of many modern trading strategies can be traced back to someone who wasn’t a financier – Claude Shannon, the mathematician who laid the groundwork for information theory, which is behind every digital device you use […]
XM Demo Competition: $100,000 Up For GrabsXM is celebrating the first anniversary of its Demo Competitions with a month-long event. With a total prize pool of $100,000, you can compete each week for a share of $25,000 – all in a risk-free environment using virtual funds. The February contest provides an attractive chance to test your skills in a competition series […]
Sovereign Wealth Fund (SWF)A sovereign wealth fund (SWF) is a state-owned investment fund that is composed of financial assets such as stocks, bonds, and real estate. These funds are typically funded by a country’s foreign exchange reserves, which are made up of currency, gold, and other financial assets that a country has acquired through trade or other means. […]
4-Step Daytrading Framework: Goals, Strategy, Process, PsychologyTrading requires more than just technical expertise. It involves a clear and well-structured framework to guide every decision. Here we look at a 4-step trading framework that begins with defining your goals, continues with formulating a strategy, moves into executing a precise process, and involves mastering the necessary psychology to see through it. Each component […]
Rule of 72The Rule of 72 is a simple way to determine how long it will take for an investment or price level to double, given a fixed annual rate of return. The rule states that the number of years required to double your money is approximately equal to 72 divided by the annual expected return, expressed […]
eToro Partners With Stocktwits To Enhance Social TradingeToro and Stocktwits have teamed up, giving traders real-time data, discussions, and execution tools in one place. eToro will integrate Stocktwits’ insights into its asset pages, while a new ‘trade’ button on Stocktwits allows its 10M+ users to execute trades through eToro. Key Takeaways More market insights: eToro will integrate Stocktwits’ trending discussions. Social trading […]
Purchasing Power Parity (PPP)Purchasing Power Parity (PPP) is a lens through which we can understand the real value of money across borders. Imagine walking into a bakery in Tokyo and buying a loaf of bread for ¥500, then doing the same in New York for $5. At first glance, comparing these prices seems pointless. But PPP asks: How […]
Anxiety in TradingTrading financial markets involves high stakes, rapid decisions with incomplete information, and outcomes that can rarely be known ahead of time — all of which can fuel anxiety. This emotional response isn’t a sign of weakness but a natural reaction to risk. Trading, like flying a plane, is highly risky without skill and preparation. But […]
Currency Valuations vs. Yield DifferentialsCurrency valuations are heavily determined by yield differentials. They shape the dynamics of foreign exchange (forex) markets, capital flows, and trader decisions. This article looks at yield differentials as a currency valuation driver, looking at their mechanisms, implications, and nuances in markets. Key Takeaways – Currency Valuations vs. Yield Differentials Yield Differentials Drive Currency […]
Stocks-Bonds CorrelationThe relationship between stocks and bonds is commonly referenced when it comes to portfolio diversification. Historically, the interaction between these two asset classes has fluctuated, influenced by the market environment, monetary policy, economic cycles, and sentiment. Stocks and bonds can be diversifying, but aren’t inherently diversifying. We look into the concept of stocks-bonds correlation, its historical context, […]
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