Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted. But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse […]
Are you a struggling trader? Do you continue to lose money, even in a bull market? If you answered yes to either question, you are not alone. Financial trading is difficult and statistics reveal that at least 90% of traders lose money. The good news is that profitable trading can be attained with hard work and […]
Recently I have been re-reading the book Quantitative Technical Analysis by Dr. Howard Bandy. This is a hefty book filled with quality information and important ideas on the topic of system development.
In the provocative book, The Black Swan, Nassim Nicholas Taleb reminds us that it is often easier (and more useful) to try and disprove something than it is to prove something is categorically true. The best way to do this is through experiments.
To succeed in the financial markets you need to have some kind of system in place. Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap […]
How much money would you have made if you’d invested $500 a month into Apple stock over the last 15 years? What about other major US companies like General Electric, JP Morgan or Visa? Is this even a good investment strategy? In this article, I find out.
In this post I take a look at one of the greatest traders of all time, Jesse Livermore. Jesse was famously profiled in the classic investing tome Reminiscences of a Stock Operator, a book that has been called the best trading book every written. This is a long piece, clocking in at around 9,000 words and it covers […]
In this post I test nine different moving averages in order to see which is the best moving average for trading. Two different strategies and markets are tested. The results may surprise you.
It was November 2008 and I was a graduate futures trader for a trading house in the UK. I’d been trading full time for only a couple of months. The credit crunch was in full force and every day presented new challenges and headaches. Until Lehman Brothers collapsed I had been doing well. Trading a […]