Stock Trading News

The Erie War, a notorious series of events that unfolded in the late 1860s, serves as a cautionary tale for modern traders and investors. This intense financial and corporate battle involving some of the wealthiest individuals in the United States was not only a struggle for control of the Erie Railway but also a reflection […]

The Railway Mania of the 19th century in the UK represents one of the more lesser-known dramatic financial bubbles in history. The rapid expansion of the rail industry, fueled by speculation and investor exuberance, led to soaring share prices and substantial investment in railway infrastructure. However, the bubble eventually burst, leading to significant losses for […]

The Panic of 1837 was a significant economic crisis in American history that triggered a severe depression lasting nearly seven years. This event, which had a profound impact on the United States’ financial landscape, can provide lessons to traders, investors, and policymakers. By analyzing the causes and consequences of this financial meltdown (and financial history, […]

Financial history is littered with tales of bubbles and bursts, exposing the human tendency to fall prey to irrational exuberance. Two notable examples, the South Sea Bubble and the Mississippi Company, offer valuable lessons for traders, investors, and policymakers. Below we look into the history, development, and eventual collapse of these notorious financial bubbles, as […]

Stock promotions can be a double-edged sword in finance. While some highly promoted companies and securities genuinely highlight promising investment opportunities, others are riddled with deceptive practices and fraudulent behavior. It’s important for traders/investors to be aware of the common behaviors associated with dishonest stock promotions to protect themselves from potential financial losses. Below we […]

Speculation has long played a role in shaping the global economic landscape, influencing the rise and fall of assets, securities, and currencies. While speculation can spur innovation and economic growth in cases when resources flow in an efficient way, it can also cause market bubbles and eventual financial crashes when resources are misallocated. Below we […]

Scenario analysis (scenario planning) is an important tool for traders and portfolio managers. The ability to forecast multiple potential outcomes and weigh their probabilities is important for making informed decisions about asset allocation, risk management, and overall investment/trading strategy. This article will explore the concept of scenario analysis, its significance for financial professionals, and the […]

Risk management plays a critical role in ensuring the stability of financial institutions and mitigating potential losses. One essential tool for managing these risks is the risk measure. Risk measures are mathematical models used to quantify and manage the risks taken by banks, insurance companies, and other financial institutions. The aim is to determine the […]

In trading and investing, risk is always a factor. If you don’t take enough risk, you won’t make any money. If you take too much risk, it’ll be hard to keep any. But not all risks are equal. Understanding the concept of uncompensated risk is important for anyone looking to optimize their portfolio and maximize […]

Measuring performance is essential for assessing the effectiveness of a strategy and guiding future decisions. Two common methods used for this purpose are absolute return and relative return. Each approach provides distinct information about an investment or portfolio’s performance. Below we look into the differences between absolute return and relative return, discussing their respective definitions, […]