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... Read more
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... Read more
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... Read more
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... Read more
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 f... Read more
“Compound interest is the eighth wonder of the world. He who understands it earns it, he who doesn’t, pays it.” -Unknown Why is compound interest considered the eighth wonder of the world? Here are three shocking examples of the exponential gr... Read more
You have probably heard of the bullish 50/200 day moving average crossover golden cross or the the bearish 50/200 day moving average cross under death cross which is a long term trend signal on charts, especially for the major stock indexes. The... Read more
In 1996 two professors studied a sample of millionaires in the United States to understand the path that took them to a million dollar net worth. The results were very surprising as their path and lifestyle was very unexpected. They did not find... Read more
Here is a stock market game that Danny Merkel @ChartingTrends shared on Twitter this year. This is a card game that simulates the importance of position size and trading through sequences of wins and losses. All you need is a deck of cards. Yo... Read more
The original stoics were members of the ancient philosophical school of Stoicism started in Athens, Greece in the 3rd century B.C. In modern times a stoic is thought of as any person who can endure mental pain and hardship without being emotiona... Read more
