Option contract prices will increase as the probabilities of them expiring in-the-money are greater and will go down as the probabilities of them expiring in-the-money decreases. As options get closer to being in-the-money they capture more of their underlying assets move, as they get farther away from being in-the-money they capture less of their underlying […]
Understanding Vega in Options Read More »
The buy side versus the sell side in the stock investment world refers to the contrast between the primary accumulators of stocks and the primary distributors of stocks. The buy side of the financial markets are the institutions that purchases and invests in large position sizes of stocks as money managers and fund managers. The
Buy Side vs Sell Side Read More »
A smoothed moving average (SMMA) is like a simple moving average (SMA) as it tries to quantify the trend in a specific time frame. However, the SMMA would rather filter price action noise than reduce the signal lag time. The SMMA changes, moves, and curves much slower than the more popular SMA. A smoothed moving
Smoothed Moving Average (SMMA) Read More »
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
Top Down Analysis Definition Read More »
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
Current Bill Ackman Portfolio 2021 Read More »
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
Current Warren Buffett Stocks 2021 Read More »
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
Things I Learned After 30 Years of Trading Read More »
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
High Wave Spinning Top Candle Read More »
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
Judas Candle Pattern Read More »
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
Risk of Ruin Formula Read More »
