In “The Big Short”, hedge fund managers Michael Burry and Steve Eisman correctly predicted the collapse of the US housing market and used investment vehicles called credit default swaps in order to bet against mortgage-backed securities. This bet is the aforementioned “Big Short” – an investment that makes money when the price of a security […]
If there’s one story right now that deserves your attention, it’s what’s been going on with oil prices. More specifically, prices for U.S. benchmark West Texas Intermediate (WTI) have been falling significantly over the past while. However, no-one was expected prices to fall down into the negative on Monday, something that has never been seen […]
You might be surprised by the personal information questions a broker asks you before you can open a trading account. The detail of the information is based on the concept that your broker needs to “know your customer” which is mandated by the Securities and Exchange Commission (SEC). Knowing your customer/client is a standard in […]
Momentum trading is one of our favorite styles of day trading so we put together a list of some of the best momentum indicators for day trading. What is Momentum Trading? Traders and investors define momentum slightly differently. If you ask an institutional investor who employs “smart beta” strategies, they might tell you that momentum […]
Day trading, the practice of buying and selling financial instruments such as stocks and ETFs within the same day, when mastered can be an excellent way to make money. There are, in fact, thousands of people out there that are making a successful living through day trading. But this style of trading can be extremely […]
“We talking about practice,” Allen Iverson ripped in 2002 during arguably the most famous press conference in NBA history. “Not a game. Not a game. We talking about practice.” The sound byte was legendary, but the reasoning behind Iverson’s rant was solid. As the Sixers franchise player, he felt it was better to preserve his […]
The novel coronavirus (COVID-19) pandemic has not only killed thousands of people, but also sparked panic that has sent a chill through the global economy. As of this writing, the fast-spreading virus, which originated in the central Chinese city of Wuhan, has already claimed more than 37,500 lives and infected over 800,000 across at least 177 countries […]
Pattern recognition is an important part of technical analysis. You want to make sure that if you have a déjà vu moment you can act on a situation if you have seen it before. When you are evaluating price action using technical analysis you are gauging the ebbs and flows of investor sentiment based on […]
Although indexes can tell you what the overall market is doing, they can’t drill down and reveal more information. They can’t tell you how many assets are participating in a rally or pull back. They can’t show how many are moving in the opposite direction of the market. That’s why there are market breadth indicators […]
COVID-19 Crisis The past month of financial markets activity can be summed up by one phrase: black swan. While some traders were able to establish short positions well before the pricing-in of the disruptions, predicting the virality of a deadly virus outbreak is pretty much impossible and is why the COVID-19 crisis has caught many […]
