Trading News

Probability distributions are one of the most fundamental concepts in finance, markets, and trading. They provide a fundamental framework for understanding, modeling, and managing the unknowns and risks inherent in these domains. Trading isn’t so much about “predicting the future” (i.e., trying to ascertain a deterministic line of how things will transpire) as it is […]

Day trading and gambling are often compared due to their potential for high financial risk and reward. But the important distinction lies in the analytical approach and strategies that can be used in day trading, which differentiate it significantly from gambling.   Key Takeaways – Day Trading vs. Gambling Analytical Edge – Day trading uses […]

Shorting the housing market entails betting that real estate prices (or housing-related financial instruments) will decline. While it’s rarely straightforward, this strategy can serve either as a hedge or as a pure directional trade tied to macroeconomic, credit, or demographic theses. Below are the key pros and cons of shorting housing, along with second-order factors […]

Designing a less volatile equities portfolio requires an approach that blends macroeconomic insights with strategic cash flow management.  The crux of this approach involves focusing on stable cash flow streams and incorporating macroeconomic overlays to better control the short-term volatility. This way, an equities portfolio can reduce downside exposure while maintaining resilience across varying market […]

Tariffs are government-imposed taxes on imported goods that serve as both a revenue source and a strategic policy tool to influence trade balances, protect domestic industries, and respond to geopolitical tensions. In our current times, tariffs, debt cycles, monetary imbalances, geopolitical distrust, domestic political polarization, and deglobalization are converging to reshape capital flows, inflation dynamics, […]

Here’s a list of Insurance-Linked Securities (ILS) – financial instruments where investors take on insurance-related risks in exchange for potential returns, most commonly in the form of premiums or coupons.  These securities transfer insurance or catastrophe risks from insurers, reinsurers, governments, or large corporations to capital markets. Fundamentally, the idea is to earn premiums by taking […]

Dollar-cost averaging (often abbreviated as DCA) is an investment strategy where an investor divides a lump sum of money into smaller, fixed amounts that are invested at regular intervals, regardless of the current price of the investment. The most common example is an individual investor taking their monthly savings and buying assets for their portfolio […]

eToro now allows clients to fund their trading accounts with Bitcoin (BTC) and Ethereum (ETH). In doing so, eToro follows other brokers that have embraced crypto-funding options in recent years, including Axi, Fusion Markets and Pepperstone. Key Takeaways You can now fund an eToro account using BTC payments or ETH payments It requires the use […]

Identifying resilient companies in an uncertain macroeconomic environment requires more than just screening for profitability or recent performance. The real test is how a business behaves when conditions tighten and change – whether it can preserve margins, maintain relevance, and continue delivering value. We give a framework that outlines the traits that help companies not […]

The concept of leverage involves using borrowed capital for investment and amplifying the potential returns. While leverage can magnify profits, it also magnifies losses. Below we focus on how you can generate leverage in your portfolio, through options, futures, borrowing, shorting, and more.   Key Takeaways – How to Generate Leverage in a Portfolio Leverage […]