Diversification in finance describes the process where a portfolio of correlated assets is built in such a way that produces a better risk/return profile than would be achievable with only one asset or with a basket of unrelated assets. Diversification in Contemporary Finance The concept of diversification is based on modern portfolio theory, which is […]
Andrews’ Pitchfork is a technical indicator that is used to identify support and resistance levels during a medium to long term price trend that is either increasing or decreasing. Traders can use the trend-lines generated by the Andrews’ Pitchfork to make a variety of trades based on resistance and support from the upper and lower […]
Capitulation is a colloquial market term describing a pattern of strong selling, where powerful psychological and market forces have led to market participants liquidating their positions at any price. Capitulation is usually driven by a combination of fear-induced panic-selling and the forced selling of margin calls. Identifying Capitulation While there is no strict measure […]
Price rate of change, or ROC, is a technical indicator used to signal the momentum of a price’s current trajectory. Price rate of change comes from a class of technical indicators known as momentum oscillators, which are employed in a variety of ways in momentum or trend investing. The formula for calculating the price rate […]
Linear regression is a form of statistical analysis that attempts to identify a relationship between an independent variable and one or more dependent variables. Generally linear regression is aimed at causal relationships, where a change in the independent variable causes a predictable change in the dependent variable. Linear regression forms the basis of much of […]
Net income is a company’s earnings after all expenses are paid. Net income is more commonly known as ‘profit’, but ‘net income’ is the proper accounting term and the term that is used on a company’s financial statements. Net Income Example Suppose that a company has revenues of $100, production costs of $50, depreciation costs […]
What’s up, everyone? All right, so here we are, second day in the office. Yesterday was a great day. $6,700, really pumped. Today, well, … wasn’t sure what I would do. Finished up $10,400; a big win. I needed it. I’m really happy about that. Four days of trading, $35,000 of profit, just like […]
What’s up, everyone? Here we are, first day in the new office. I moved my whole trading station over here last week. Connected, all set up. It was smooth sailing, very easy. First day in the new office, $6,700 of profit. That feels good. That’s what I really wanted, my first day here in the […]
What’s up, everyone? All right, so here we are Friday morning, finishing the day. Well, it’s kind of funny. I did my midday recap, recorded it, Facebook Live, did my thing. I was up $200 on the day, and while I was recording the midday recap, this stock, CADC, a Chinese stock, was squeezing up. […]
What’s up, everyone? All right, so here we are, Thursday morning, and you know what? A big green day. Biggest green day of the month. I’m up $13,800 this morning, in less than an hour and a half of trading. I mean, that is awesome. Life is good. Time to go enjoy the summer […]
