Success in trading and investing rests on three critical pillars: a sharp understanding of market mechanics, an appreciation of the role of probabilities, and, not least, a strong handle on risk management. That last one can be… challenging, to put it politely. Consider what happens when you're buying a call option… Here, you're essentially signing […]
Category
trading strategies
How I Learned to Stop Worrying and Love the "Bailout"
Postcards from the florida republic An independent and profitable state of mind. The Wall Street Journal warns that China could soon face its “Lehman Brothers moment.” It’s a call back to the defining moment of the 2008 Financial Crisis. That “moment” was the long-expected collapse of one of Wall Street’s oldest and most-connected banks. The […]
Keep Momentum Simple (Stupid)
Postcards from the florida republic An independent and profitable state of mind. The emails trickled in one at a time… Then the phone calls started. A business-school friend – with an MBA and decades of executive experience… A financial publisher who’d edited newsletters for 30 years… A bartender in Washington D.C., A relative […]
The Big Hedge
Postcards from the florida republic An independent and profitable state of mind. I’m traveling to Jacksonville today. It’s the largest city by land area in the Continental 48 states. It feels like its own small nation. While on a fact-finding mission for the Republic, I’ve decided this would make a fine port of […]
Here's the Secret to Timing the Market Perfectly
Postcards from the florida republic An independent and profitable state of mind. I give away these Momentum readings for free every day. These are the ultimate equalizer for retail investors against big, greedy institutions. No guessing. No silliness. No chasing headlines from journalism majors who don’t understand finance. When momentum goes RED, it […]
My Six Simple Rules for Negative “Red” Momentum Markets
Postcards from the florida republic An independent and profitable state of mind. In my world, momentum is a measurement of capital inflows and outflows in thousands of stocks. I take the measure, then boil it down to a simple red, yellow, or green. We’re coming off the longest stretch of positive inflows and price […]
We’re Living in an Entirely New Stock Market - Here’s How to Make Money There
When your grandfather got on the horn with his stockbroker to buy colossal 100-share blocks of IBM, he went through that trouble because he believed IBM had strong fundamentals and great future earnings potential. In those days, earnings made the world go 'round. Of course, it's a different world today – and not just because […]
A Lot of Money Can Be Made Between 2:35 PM and 2:37 PM Tomorrow - Here's Why
Tomorrow, the Federal Reserve will raise interest rates by 25 basis points. Everyone and their mother will lock eyes on CNBC and Bloomberg at 2:30 PM… They'll hang on every single word spoken by Fed Chair Jerome Powell. Are they still forecasting a mild recession at the Fed? Are asset prices (equities) too high? All questions will […]
Here Are Two Trading Strategies That'll Set You Up for Consistent Profits
We've all been there at some point in our trading careers – frustrated, banging your fist on the desk as yet another option expires worthless. Don't let it get you down. It's all part of the journey to becoming a better investor. With that said… you can't keep executing the same strategy and expect a […]
This "Secret Weapon" Is a Must for Every Trader's Arsenal
It’s earnings season… and that means a lot of investors are going to be in the grip of “FOMO Fever.” The crippling fear of missing out can set people chasing already expensive trades in the (irrational) hope they become… even more expensive later. It’s the wildly unsuccessful “buy high, sell higher” strategy. But this is […]