A top down analysis approach to fundamental investing starts with the highest level of macro economic data and works its way down to a specific company by filtering each layer of financial information to find the best place to invest capital. The top down analysis will start with the current global economy, then drill down […]
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Bill Ackman is ranked #391 in 2021 on the Forbes 400 wealthiest list with a $2.9 billion net worth. Bill Ackman became a billionaire through operating the Pershing Square Capital Management hedge fund that he founded in 2004. He became famous in the financial world for his short position on bond insurer MBIA and his
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Warren Buffett’s company Berkshire Hathaway was holding 38 different company stocks in its portfolio on December 31st 2020, according to the most recent regulatory filing with the SEC in the 4th quarter of 2020. The five biggest positions account for over 67% of the portfolio’s value: $AAPL $BAC $KO $AXP and $KHC. The top ten
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Here are 65 lessons I learned after spending thirty years trading and investing in the stock market from 1991-2021. A trend can go farther and longer than I ever expect. The best traders are open-minded and flexible in their trades. For most traders less trades is better than more trades, focus only on the best
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The high wave spinning top candlestick pattern consists of a candle with both a large body and also long wicks above and below sandwiched between small candles both before and after it forms. This candle pattern looks like the combination of a large spinning top and a long legged doji candle put together. The wide
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The Judas candle pattern consists of a large red bearish candle followed by a long bullish white reversal candle with a long lower tail which is approximately equal to the bearish candle in length. It can be a powerful bullish signal when it appears after a downswing or downtrend in price action. This bullish candlestick
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The risk of ruin formula shows the probability a trader could lose enough of their trading capital that the return to even or being profitable is near zero for that account. The concept of the risk of ruin came from the world of gambling, but evolved to also show the risk to both traders in
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Seth Klarman is a billionaire hedge fund manager, and author. His primary method in the markets is value investing like Benjamin Graham. His focus is on finding unpopular assets that are undervalued and he buys them looking for a price rise back to true value over time. He is the portfolio manager of the Baupost
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Ray Dalio founded Bridgewater Associates in 1975. He grew it into one of the world’s largest hedge funds by 2005. As of 2021 his hedge fund has over $160 billion in total assets under management. Ray Dalio is the 85th richest person in the world according to Forbes with a net worth of approximately $20.3
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To make money in the markets you need to be trading as a business. Hobbies cost money, businesses make money. A business has a plan, a process, and a system. A business has customers that it sells products to for more than their cost. How a new trader approaches trading and the markets will determine
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A fixed mindset is the belief that the current abilities of intelligence and talent are fixed just the way they will always be for a person. It is the belief that people are born and destined to be at a certain ability level. A fixed mindset accepts their current performance and intelligence as fixed and
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First principles thinking inverts complex problems to look at each step in a process or system. It seeks to find errors as places for improvements by looking at the most basic principles that lead to success or failure. You must remove opinions, beliefs, assumptions, traditions, and predictions to see the essential core principles of a model
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This is a guest post by Howie Bick. Diving into momentum trades: why they move, and why they move fast. One of the ways people trade and look for ways to produce returns, is by looking for momentum throughout a market. Momentum when it comes to trading, means where there is an abundance of trades
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This is a guest post Jared Tendler. Your goal is to make money, but sometimes you find yourself losing money when you shouldn’t and leaving potential profits on the table. The question is why. You’ll first look to tighten your technical skills by analyzing your trades, tightening your rules, and learning new techniques. That’s
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Here is a top 20 list of the highest current most shorted stocks in the NASDAQ with the highest short interest in March 2021 based on the most recent information available. Be aware that the NASDAQ short interest is updated twice a month. Short interest data is reported on mid-month and end-of-month settlement dates. So it is
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Here is a top 20 list of the current most shorted stocks with the highest short interest as of the last update across all stock exchanges. Most exchanges do month end reporting. So it is constantly changing but is delayed in reporting. Be aware that the NASDAQ short interest is updated twice a month. Short interest
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The high tight flag pattern is one of the most bullish chart patterns that shows a strong trend followed by a trading range that could be setting up for another strong swing to the upside. It shows a chart is currently in a longer term uptrend. The high tight bull flag is a version of
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A cash secured put is created when a put option is sold to open at the same time as capital in an account is designated to buy the underlying stock at the strike price if the put expires in-the-money and is assigned to the option writer. A cash-secured put can be written as an at-the-money
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What is a leap? LEAPS is an acronym for options contracts called a Long Term Equity Anticipation Security. Leaps are derivatives with a long term expiration date that have prices that fluctuate along with the underlying stock or index it is written on. LEAPS have much longer time periods before expiration than traditional monthly options
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A naked put option calculator allows an option trader to key in the following data points: Stock Price. Put option strike price. Naked put option premium credit received. Days until expiration. Margin interest rate when needed. An option trader must consider whether the put option is a cash-secured put in a cash settled account or
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