Leverage, when taken literally, means an advantage in an endeavor through assistance. When using leverage as a verb its meaning is to have an advantage through using a tool like a lever. A lever creates the ability to move a heavy object that could not be lifted using effort alone. Leverage gives you the ability […]
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Mental accounting is also called psychological accounting as it tries to describe how people categorize and label financial income and outgo of money. This behavioral economic theory was first proposed by Richard Thaler. Mental accounting quantifies the emotional and mental connections made with money specifically directed to a budget and specific savings like investing, trading,
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To answer the question of who are the best traders in the world we have to consider several things. To be considered the best you would have to filter for these following quantified variables. Long term returns on assets under management. Size of assets under management. Consistency of returns. Size of drawdowns in trading capital.
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The S&P 500 index is a system for quantifying and picking approximately 500 stocks that are updated regularly. The S&P 500 is weighted by market cap and stocks enter and leave their index based primarily on their size. Companies that do well and grow in market capitalization enter the S&P 500 and the companies that
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Elon Musk recently overtook Warren Buffett in wealth ranking briefly after the surge of Tesla stock temporarily to a high price of $1794.99 a share. Elon is the man that founded the companies PayPal, Solar City, Tesla, The Boring Company, and SpaceX. He is with no doubt one of the most brilliant entrepreneurs and CEOs
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Michael Jordan is considered to be the greatest professional basketball player of all time playing in 15 National Basketball Association seasons. In that time he won 6 NBA championships, 5 MVP awards, ten scoring titles, the 1988 NBA Defensive Player of the Year Award, and also 2 gold medals in the Olympics (1984 in L.A.
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In technical analysis the triple top chart pattern can be a possible signal for a reversal lower in price. This pattern is formed when price action find resistance inside a price zone three separate times. This type of price behavior can give clues that there are no buyers at higher prices above that resistance zone
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A candlestick chart is a type of visual representation of price action used in technical trading to show past and current price action in specified timeframes. Most candlestick charts will reflect a higher close than the open as represented by either a green or white candle with the opening price as the bottom of the
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An RSI divergence indicator signal shows traders when price action and the RSI are no longer showing the same momentum. The RSI shows the magnitude of a price move in a specific timeframe. The RSI is one of the most popular oscillators used in technical analysis. A divergence looks at it in relation to the
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A technical indicator/price action divergence happens if a momentum indicator like the MACD (moving average convergence divergence), doesn’t show the same movement to higher highs or lower lows that price action does to confirm momentum. If the price on the chart makes a new high price but the MACD does not make a higher high
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