Martin S. (Buzzy) Schwartz trader who made a fortune successfully trading the financial markets. He has been both a futures day trader and also an options trader and was successful with both and also other markets. He became famous after he won the U.S. Investing Championship in 1984 and was also featured in Jack Schwager’s […]
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The Treynor ratio is a measurement of the returns earned in excess of what could’ve been earned on an investment that has no diversifiable risk per unit (like U.S. Bonds) of market risk assumed. The Treynor reward to volatility model is also called the reward-to-volatility ratio or Treynor measure it was named for Jack L.
What are covered puts? A covered put is created when put options are sold that correlates with a short stock position already being held or opened as a sell/write at one time. The stock position acts as a hedge for the short puts to limit losses as the short shares can be used if the
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A two-legged pullback to the 20-period exponential moving average is a high probability trade entry set up inside a strong uptrend for buying a dip in price action. It can also be a short selling opportunity on a rally back to the 20-EMA during a downtrend in price action. Any candle that goes higher than
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The Hagakure: The Book of The Samurai records Yamamoto Tsunetomo’s views on bushido and the warrior code of the samurai. It was written in the early 18th century and explains many principles of the Samurai warrior. Many of these same principles can be used in business, sports, trading, and investing to achieve a warrior mindset
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Dogs of the Dow System The Dogs of the Dow investment strategy first became popular after Michael B. O’Higgins’s published the book, Beating the Dow, in 1991 where the phrase Dogs of the Dow was first used. The Dogs of the Dow strategy is a simple strategy based on the theory that a high dividend
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The rounding top chart pattern is a bearish reversal that occurs after an uptrend on a chart. The rounded top is formed after an uptrend in price action stalls out near a peak and goes sideways into a range before slowly going lower to create lower highs and lower lows. The pattern forms a downward
In technical analysis the triple bottom pattern can be a possible signal for a reversal higher in price. This pattern is formed when price action finds support inside a price zone three consecutive and separate times. This type of price behavior can give clues that there are no sellers at lower prices below that support
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What is a trailing stop loss? A trailing stop loss is a risk management tool for locking in profits on a winning trade. A trailing stop is a strategy that moves the exit point for a trade as price moves in the right direction to increase profits. A trailing stop loss is a quantified strategy
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Highest Short Interest Stocks Lists of the current most shorted stocks right now can be a great place to find high interest stocks that have the potential to be deep dip value buys. These stocks on major U.S. stock exchanges are also a great list to watch and stay updated on for potential short squeeze opportunities.
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What is IV in Options? In Black–Scholes option pricing model, the implied volatility or IV of an option contract is the cost embedded in the option of the volatility of the underlying instrument that it is being valued against. Volatility is the input in an option pricing model that measures when an asset will likely
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Books on Mindset Having the right mindset is the first step on any path to a successful and happy life. Not having the right mental model for thinking can be a drain on our energy and emotions. Our belief systems are the filter through which we see the world so we must choose carefully what
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Wyckoff Theory Wyckoff Method Richard Wyckoff was a famous trader, author, and technician from the 1920s. He founded the Wyckoff Stock Market Institute to study technicals and market price action. He developed a market model for a way of looking at the patterns that accumulation and distribution create on charts. Wyckoff Pattern A Wyckoff Spring
Here is the link to a free Candlestick Patterns PDF Guide created by Rayner Teo. A summary of what this PDF explains: How to understand candlestick patterns in less than 60 minutes to avoid spending countless hours trying to understand all the different patterns that exist. The key principles to reading candlestick patterns to better
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Cryptocurrency Chart Patterns Cryptocurrency price action creates chart patterns like any other market. The patterns formed are simply visual representations of the prices buyers and sellers bought and sold a token at in the past. There is no magic in chart patterns they just show what happened in the past and what has a higher
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Here are ten of the best business books for business owners and CEOs. These books do a great job explaining the principles to successfully manage, operate, build, innovate, and win in the business world. Steve Jobs by Walter Isaacson This book takes a look inside the mind and processes of one of the most successful
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The Psychology of Money by Morgan Housel This book is a #1 bestseller on Amazon in its category and currently has 15,064 ratings that are 77% five star reviews. This book discusses behavioral economics in both personal finances and investing and gives solutions to the problems most people experience with money in their lives. This
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Trading Journal Spreadsheet What is a Trading Journal? A trading journal is the book a trader writes about their own trading journey. A trading journal records decisions made in the market so you can see any errors in discipline, risk management, or process. If you can measure it, you can change it. If you are
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The Ultimate Candlestick Pattern Cheat Sheet How to Read Candlesticks A candlestick is a type of chart used in trading as a visual representation of past and current price action in specified timeframes. A candlestick consists of the ‘body’ with an upper or lower ‘wick’ or ‘shadow’. Most candlestick charts show a higher close than
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A list of the current most shorted stocks right now can be a great place to look for potential deep dip value buys. The stocks with the highest short interest on major U.S. stock exchanges is also a good list to watch and stay updated for potential short squeeze opportunities. The below company stocks have the highest
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