What is a long-legged doji candlestick pattern? The long-legged doji candlestick pattern has both long upper and lower shadows (wicks) and generally has a closing price near where it opened in the time frame of the candle. The long-legged doji candlestick can signal extreme indecision in the current market with a large trading range but […]
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Munehisa Honma (本間 宗久) 1724-1803 is known as the father of the candlestick chart. He is believed to have been a rice merchant in 18th century Japan who traded the Dojima Rice market in Osaka. . In 1710, a Japanese rice spot market was transformed into a futures market for rice. This market used coupons
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A martingale strategy is a betting method designed for games where the gambler wins a 50/50 bet like a coin flip wins landing on heads and loses on tails. This strategy betting structure has the gambler double their bet if they lose so the first win would recover all previous losses and get back to
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The “magic formula investing” system parameters and principles are used by Joel Greenblatt in his approach to value investing to outperform the market. In his book ‘The Little Book that Beats the Market’, Greenblatt writes that this system buys cheap stocks of 30 companies that have high earnings yield and also a high return on
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This is a guest post by Michael Dehoyos. Trading can be a daunting prospect to someone completely new to it, which is why so many people trust companies to invest and trade for them. However, by giving over your portfolio to a company, you’re also giving up a certain level of control over your own
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Nicolas Darvas was a professional dancer in the 1950s that developed a trend trading system for stocks that turned his $36,000 into $2.25 million between 1956 and 1958. He used price momentum near all time highs with buy stops and trailing stops to trade the highest momentum stocks during one bull market to compound money
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The Kelly Criterion is a scientific gambling method using a formula for bet sizing that mathematically calculates the proper position size for placing a bet based on the odds. The Kelly bet size is calculated by optimizing the projected value of the wealth logarithm, which is equivalent to maximizing the expected geometric growth rate of
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A spinning top is a single candlestick pattern that has a body in the middle of two longer wicks. A spinning top chart pattern is a signal that neither buyers or sellers have control of price action in the time frame of the candle. The spinning top candle shows that price ended up closer to
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Portfolio backtesting is the process of using historical price data to analyze and backtest the returns of a group of stocks, exchange traded funds, or mutual funds in the past. A complete portfolio backtest of your watchlist can visualize the risk of correlations, optimum percentage of capital exposures, drawdowns, and potential for diversification to hedge.
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Bill Ackman is ranked as America’s 21st richest hedge fund manager with a current net worth of over $2 billion. He is ranked #391 on the Forbes 400 wealthy list. Bill Ackman is a self-made billionaire through operating the hedge fund he founded in 2004, Pershing Square Capital Management. He rose to fame for his
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