Stock Trading News
What Impact Do Elections Have on Financial Markets?Elections can have significant power over financial markets, both immediately and over time. This sway is due to the potential economic consequences of the policy proposals from different candidates/parties and other factors we’ll cover. And financial markets and economies also have sway on election outcomes (i.e., an underperforming economy may increase the likelihood of a […]
The Role of Intuition in TradingIn trading, there are countless variables that can impact the outcome of any trade, so intuition can be a reliable tool in many circumstances. For experienced traders, it can provide an intuitive edge – guiding them beyond data and analytics. But what really is intuition, and how does one use it in trading? Key […]
What Happens When a Huge Company Fails? (Effect on Markets)We all know stories about Enron, Worldcom, Wirecard, and other large companies that, suffice to say, didn’t pan out for traders and investors betting on their success. They weren’t the first and won’t be the last large companies to fall. What happens to the broader market and economy in such circumstances? A stock that constitutes […]
How Are Trading & Investing Algorithms Built? (Guide)Building trading and investing algorithms involves a blend of financial theory, mathematics, programming, and data analysis. These algorithms are designed to make trading decisions based on certain criteria, which can include any number of factors based on the underlying cause-effect relationships governing the decisions. Building trading and investing algorithms is a complex, iterative process that […]
Reserve Currency History, Status, and BenefitsIn a separate article, we covered the current status of the basic reserves today; namely, the USD, EUR, JPY, GBP, CNY, and gold, as the main few. In this article, we’ll cover reserve currency history as well as reserve currency status, the benefits it brings, and how it’s lost. We are currently in a precarious […]
Drawdowns – Why They’re the Worst Thing in TradingThe entire purpose of trading and investing is to earn more money back over time than is lost. At worst, it should preserve your purchasing power over time. Drawdowns are the one thing that should be avoided at all costs. Warren Buffett is known for his quotes on investing, one of which pertains to his […]
How Large of a Drawdown Should Be Tolerated?The non-linear relationship between losses and the gains required to recover those losses is an important concept in portfolio management. For example: A 10% loss requires an 11% gain to recover. A 20% loss requires a 25% gain to recover. A 50% loss requires a 100% gain to recover. Mathematically, if “L” is the loss […]
Auto-CallablesAuto-callables are complex savings instruments that offer a bond-like fixed return, crafted by selling stock options. Key Takeaways – Auto-Callables Auto-callables are savings instruments that offer fixed returns similar to bonds, created by selling stock options, primarily on broad stock market indices. They attract investors with their potential for higher yields and early redemption […]
XTB Introduces Fractional Shares With Zero Commissionshas launched fractional shares on its xStation platform. Providing flexibility, accessibility and diversification, traders can buy small portions of stocks from the US and Europe. Key Takeaways Traders can invest in major companies like Tesla, Apple and Netflix for a fraction of their full share price. Investors can buy fractional shares in any stock, ETF […]
Market Microstructure and Algorithmic TradingMarket microstructure refers to the study of how trading mechanisms, rules, and protocols, as well as the actions of market participants, influence the formation of asset prices, trading volume, and trading behavior. Algorithmic trading involves using computer algorithms to automatically make trading decisions, submit orders, and manage those orders after submission. Understanding the various intricacies, […]
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