Stock Trading News

The price of anything is the money and credit spent on it divided by the quantity. So while there are many strategic approaches to trading the markets, such as value, momentum, etc., what it ultimately boils down to is who is buying and selling, in what quantities, and for what reasons. It’s buying and selling […]

If you have $100k in cash or are wondering what to do with $100k in the bank, in this article, we cover a balanced approach to what to do with this kind of money. Assuming you have no debt, an emergency fund of 3-6 months of living expenses, and are already maxing out your retirement […]

A Synthetic Put is a trading strategy that allows an investor to mimic the payoff of a put option using a combination of stock and options. How to Create a Synthetic Put Specifically, a Synthetic Put involves: Short selling a stock, and simultaneously Buying a call option on that same stock with an in-the-money (ITM) […]

The Brownian model of financial markets is a mathematical model used to describe the random motion of asset prices. It is based on the Brownian motion concept, which was originally observed in the erratic movement of pollen particles in water. In the context of financial markets, this model helps in understanding the nature of asset […]

Econophysics is an interdisciplinary field that bridges the gap between physics and economics. It employs methods and models from statistical physics to study economic systems. The primary goal is to understand the complex dynamics of financial markets and predict their behavior. Physics is traditionally more mathematically rigorous than economics, and trading algorithms are fundamentally based […]

Tail risk hedging and tail risk protection strategies help mitigate the risk of substantial drawdowns in a portfolio. How do investors protect against these potential price falls? Whether it’s a rapid 20% loss in a month or a gradual decline over a year, the timing and duration of these drawdowns can drastically affect long-term gains. […]

The pension plan and 401(k) are two retirement savings options that serve as pillars of financial preparedness for life after work, each offering distinct benefits and considerations. While both aim to provide financial stability during retirement, understanding the key differences between them is essential for making informed decisions that align with your unique financial goals. […]

The financial markets are filled with various kinds of trades and investment options and each of these comes with different levels of risk and reward. To make informed trading or investment decisions, it’s vital to have a means of assessing the performance of various financial assets. Here we’ll look at a number of performance measurements […]

Post-Modern Portfolio Theory (PMPT) emerged as a response to the limitations and criticisms of Modern Portfolio Theory (MPT), which has been the cornerstone of portfolio management since its introduction by Harry Markowitz in the 1950s. MPT focuses on optimizing risk and return through diversification and asset allocation based on historical data. However, PMPT brings new […]

A portfolio is a collection of financial investments like stocks, bonds, cash equivalents, fund units, etc., held by investment companies, hedge funds, or individual investors. The concept of a portfolio stems from the theory of diversification, which proposes that a trader/investor can reduce risk by putting their funds in different kinds of investments/trades/returns streams.   […]