The definition of financial hedging is to buy insurance to limit the risk of the downside if an asset falls in value. Hedging is a multi-position strategy that purchases insurance for an investment or trade position that is being held as a way to limit the downside losses if it trends against the investor. It […]
The falling wedge chart pattern can fit in the continuation or reversal category. When it is a continuation pattern it will trend down, however the slope in the wedge will be against the overall market uptrend. When it is a reversal pattern, the falling wedge trends down when the overall market is in a downtrend.
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Warren Buffett thought the management fees that hedge funds charged investors was ridiculous based on their historical returns in comparison to the markets. So Mr. Buffett set up a challenge for the hedge fund industry in 2008. One fund accepted his challenge, Protégé Partners LLC, and they made a million-dollar bet on who could produce
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In the world of finance, intrinsic value is the true, inherent, and essential value of a specific asset independent of its quoted price in a market. In speculation prices can become far removed from the real actual value of a stock, tulip, Beanie Baby or cryptocurrency. Here is a list of the ways to quantify
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Jeff Bezos current net worth is $125.5 billion making him the richest person in the world again. His net worth is up over $13 billion since November 2019 with most of the increase coming after last Friday’s gap up in Amazon price. Amazon issued its earnings last week and its stock set new all time highs.
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Elon Musk’s current net worth is $42.8 billion dollars and is now the 23rd wealthiest person on the Forbes 400 list. His net worth has grown by approximately $20 billion since November 2019 as Telsa stock has increased from $320 to over $900 a share in three months up +183%. The fuel for this huge
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On this Day in history in February 3, 1690, the Massachusetts Bay Colony printed and released the first ever paper money in the Americas. Before that day all American settlers used silver coins for transactions. These new bills were pounds, named after the pound sterling of Britain. The British government had the idea to issue
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The Richest Man in Babylon is a great little personal finance book set as an ancient fictional tale that explains the ‘The Seven Cures to a Lean Purse’ and ‘The Five Rules of Gold’. The Seven Cures to a Lean Purse: Start thy purse to fattening. Pay yourself first. Save money before you pay any
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This is a guest post by Jake @TrendSpider. In this weekend’s analysis, we analyze the moves made by the broad market ETFs last week and how TrendSpider’s current features are helping get an idea of what is possible into next week!
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This is a review of the book ‘The Snowball: Warren Buffett and the Business of Life’ by Alice Schroeder. This book reads like a novel about Warren Buffett. I believe this book is the closest readers will get to Warren Buffett writing an autobiography of his life. He gave the author unprecedented access to his
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Net worth is the total value of every asset that an individual owns subtracted by all their liabilities. Net worth can also be calculated for businesses, governments, or countries. To calculate your personal net worth first add up all your personal assets. Value of your personal residence. Value of any rental homes you own. The value of any
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Paul Tudor Jones II was born in Memphis, Tennessee. In 1976 he earned a bachelor’s degree in economics from the University of Virginia. He was accepted to Harvard Business School in the 1980’s but he did not enroll. PTJ was a commodities broker for E. F. Hutton & Co between 1976-1980. PTJ was mentored by cotton trader Eli Tullis. Tullis
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The Calmar Ratio was created by Terry W. Young in 1991, it is short for California Managed Account Reports. The Calmar ratio is usually based on recent and short term data. The Calmar ratio gives investors insight into the risk parameters of different investments and money managers. The Calmar Ratio contrasts the risk of maximum drawdown and the annual
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CAGR stands for ‘compound annual growth rate’ and is used in business, investing, and trading as a term for the measurement as a geometric progression ratio providing a constant rate of return over a specific time period. While CAGR is not an accounting term it is still used to describe the return in segments of
The scientific method is a fact finding method of gathering knowledge that was developed in the 17th century to search for the truth for cause and effect relationships in science. This method requires observing along with skepticism about what is being observed. Cognitive assumptions can be biased and filter how someone interprets information so a filter
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Data mining for traders is the process of researching large amounts of historical data to find repeatable price action patterns in financial markets. Data mining can be done on all different time frames and both technical and fundamental data can be used to analyze the movements of markets based on different catalysts. When you mine
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Stocks are an asset class of investments where you buy a share of ownership in a publicly traded company. Stocks are equity in a company. Shares trade on stock exchanges through market makers and executed for investors through a stock broker. How do you invest in stocks? Decide you want to own stocks. Understand the
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Warren Buffett’s 2014 Cadillac XTS. Warren Buffett is not only one of the richest people in the world but also very frugal to a point that it is very surprising to people. He lives in the same five bedroom house he purchased in 1958 for $31,500. He also has a modest car in comparison to
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Warren Buffett has established himself as being the best investor in history by both becoming the wealthiest person in the world many times over and building one of the biggest companies in the world Berkshire Hathaway out of a failing textile company. What specific investment strategy did Buffett use to create such success and wealth?
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In trading the two terms tactic and strategy are not used enough and when they are used many times they are mixed up. Trading tactics are the actual means that are used to achieve a single specific goal or target, but a trading strategy is the big picture plan that combines many different tactics together to achieve the overall objective of
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