Although I love to test trading systems and write about new trading ideas the last couple of months I have been doing a lot of reading about Charlie Munger and his mental models.

Mental models, in essence, are ideas or concepts that help us understand how the world works. Concepts such as the confirmation bias, availability bias, hindsight bias and regression to the mean.

I’ve found that learning about these concepts can really help improve all areas of your life including trading and investing. Read more »


Visa Inc. ($V) is a multinational financial services company that facilitates the transfer of funds around the world via Visa-branded credit cards and debit cards. If you didn’t already know that you must be living on another planet because Visa is everywhere. Here are 10 reasons why you might want to buy the stock today. Read more »


With everyone talking about the Federal Reserve this week, there is an awful lot of noise surrounding what the Fed will or won’t do. It’s at times like these where it pays to keep a bit of perspective and remember to not do anything rash.

Following are a number of charts that I have compiled from various sources that should be essential for new investors and traders alike: Read more »


The price-to-earnings ratio, or PE ratio, is one of the simplest but most popular financial ratios for estimating the value of a stock. Even though the PE ratio is simple, it’s an amazingly useful tool.

In fact, a study by Merrill Lynch found that 33% of professional investment managers consider the PE ratio before investing in a company. And one of the most famous value investors of recent times, Peter Lynch, was known to make good use of the PE ratio in his analysis. Read more »