Diversification is a market strategy that enables you to spread your money across a variety of assets and investments in pursuit of uncorrelated returns, hedging, and risk control.
Table of Contents
What is portfolio diversification?
Brief history of the modern portfolio theory
Why is diversification important?
An example of diversification at work
How to...
Basic Principles of Trading a Balanced Node
Rule 1: Unless the price breaks and holds Value High or Value Low we should expect buyers and sellers to maintain the current balance.
Rule 2: If we break and re-bid from Period Value High we should treat that level as supportive until it is reclaimed ( buy-side acceptance outside of balance)
Rule 3: If we...
Hello Traders welcome back to another concept video. This is the second video in our series -- High Volume Times to Trade --
We talk about
1) 4Hr Candle Opens/Closes
2) New York Stock Exchnage Open
3) London Close
Scalping/Intra-day trading during these times, in my experience, can provide unique opportunities to profit on Eur/Usd.
Similar to Part 1 of our...
Jesse Livermore is one of the most famous and successful traders of the last century. During his lifetime he was nicknamed "The Great Bear" because he actively sold stock assets during the Great Depression and managed to make a multimillion-dollar fortune. Wikipedia mentions that Livermore made and lost significant sums on the stock market more than once during...
█ Adaptive versus Simple Moving Average Trading Strategies. Is smarter really better?
Computer-aided trading systems have revolutionized the way trading decisions are made. We now employ sophisticated algorithms to predict market movements and execute trades at optimal times. Among these, moving average(MA) strategies stand out for their simplicity and...
Have you ever been in the following situation?
You pick a trading strategy, you make nice profits and then, for some unknown reasons, you start losing. You take one trade after another and the strategy stops working.
That is a very common thing that happens will every trader. I am trading for more than 9 years, and you know what, this year I got a trading...
Hello,
Creating a solid portfolio can be a tough task for most investors. Understanding easy ways of beginning that journey can greatly improve your performance as an investor & greatly amplify your results.
The times of just buying the S&P and waiting for your money to keep growing is long gone & active investing can widen the gap between yourself and the...
Liquidity is shifting within the market, moving from niche to niche as presented in the accompanying chart. One standout winner in this regard is the meme domain , which has seen significant gains because its market capitalization is small. Another area of focus is the AI niche , which is currently experiencing a surge in investor interest and capturing a...
Greetings, fellow traders!
As a seasoned veteran of the financial markets, we've witnessed firsthand the transformative power of trading, its ability to elevate individuals to new heights of financial freedom and fulfillment. Yet, we've also observed the struggles of many aspiring traders, their goals & dreams marred by a lack of guidance and a clear...
Position sizing is one of the components of a trading plan, and it's important to be just as disciplined and consistent with this as with all other parts of the plan. Position sizing is defining how much we will risk for each and our objective is to consistently get the most profit with the least amount of risk.
So, how much should you risk per trade? There is...
Hello everyone,
In the above chart, I present a detailed breakdown of how money circulates within the cryptocurrency market.
It's crucial to identify the current phase in the chart in order to allocate your investments effectively.
Happy trading !
Key words to understand:
- Tapering
- Liquidity
- Tapering
- Tapering
It's important to understand how liquidity plays a role in moving price and what it actually means. In order for price to make a solid move anywhere, there has to be liquidity built up for price to grab (use) to break out of strong resistance levels (i.e. levels with lots of sellers ready to...
To trade well is nothing more than a calculated dance on the trading floor.
You need to navigate the volatile seas of markets and understand the essential elements of a trade.
And whether you’re a newbie or the MOST experienced trader out there, you need to adopt the same quintessential factors with your trading.
And that is, the elements that make a...
Introduction:
In the nuanced world of options trading, the Iron Condor strategy stands out as a sophisticated yet accessible approach, especially suited for markets that exhibit a balanced demeanor. This strategy, belonging to the "Options Blueprint Series," is designed for traders who seek to harness the potential of stable markets. Iron Condors offer a way to...
Back in 1967, a big study called the Whitehall studies was done by Professor Michael Marmot. He looked at 28,000 British office workers for 40 years.
en.wikipedia.org
For the first time, this study showed how stress from work really affects how long people live and their health.
It also found out if you’re higher up or lower down in your job affects how stressed...
Buying areas and possible withdrawals of the QQQ ETF, for long-term investments. You can follow the evolution on a weekly timeframe and take profits or add to the investment at major support or resistance areas.
