Mind Those Market Gaps
Among the many trading proverbs, the one about gaps is easily among the top ten in terms of how frequently it is (ab)used and...
Why Backtests Are Important For Traders To Understand
Backtests are an important price pattern for active investors to understand. Today I want to highlight a couple of recent trading backtests that failed and...
The Art Of Trading And The Illusion Of Control
I’ve written and said many times before that simplicity is a good thing—if you have a trading methodology that is overly complex, there’s a...
4 Considerations When Making New Investments
The stock market is a constantly changing beast that loves to cause the greatest pain to the largest number of participants possible. What I...
Value At Risk (VaR): Insights And Considerations For Risk Managers
We looked at the calculation of Value at Risk (VaR) in my last article. The definition was “the possible loss a portfolio, or position,...
Using VXX Spikes To Generate Equity Buy Signals
The VXX Short-Term Volatility Futures ETF has been much maligned since its launch and one glance at the chart below shows why - it’s...
The Momentum Factor: Why Momentum Investing Works
In a recent Q&A with Patrick O’Shaughnessy, I said the following when asked about the momentum factor (re: momentum investing):
I’m a huge fan of...
Professional Trading Insights: When Everything Goes Wrong
Regardless of your investing or trading strategy, prowess or experience, there will be times when everything (and I mean “everything”) goes wrong. I share...
The Downside Of Long-Term Buy And Hold Portfolio Diversification
There are many different ways to invest, including using a strategy that involves portfolio diversification via ETFs and/or mutual funds. For example, we recently...
The Myth Of Summertime Trading
June officially marks the arrival of the dreaded "summertime trading."
This time period (June, July, and August of each year) is abhorred by most traders...
