Trading News

There are very few true monopolies in the stock market these days the classic sense, as antitrust laws and regulations aim to promote competition. Nonetheless, there are some companies that enjoy a dominant market position or quasi-monopolistic advantages in their respective industries.   Key Takeaways – Stocks That Are Monopolies Stocks that are monopolies (examples) […]

Seasonal stocks are those that tend to experience predictable patterns of price movements and trading activity at certain times of the year due to the cyclical or seasonal nature of their business operations. We look at the details of seasonality in the stock market and some examples.   Key Takeaways – Seasonal Stocks Here are […]

When a stock’s price falls to zero, it means the company has gone bankrupt or its shares have become essentially worthless. This situation typically arises from severe financial distress that leads the company to bankruptcy or a similar outcome where the company’s assets are insufficient to pay off its debts and obligations.   Key Takeaways […]

When you sell a stock, the buyer is typically another individual investor, an institutional investor, or a market maker. We look further into the topic below on the mechanics of the buying and selling process.   Key Takeaways – When You Sell a Stock Who Buys It?  Anonymity – You don’t necessarily know who specifically […]

In this article, we give a step-by-step breakdown of how to calculate portfolio beta. Understanding Beta Beta measures the volatility of a portfolio compared to the overall market. A beta of 1 means the portfolio moves in line with the market. A beta greater than 1 indicates more volatility than the market (higher risk, higher […]

Relative value trading involves identifying and exploiting pricing inefficiencies between related financial instruments or securities.  The key idea behind relative value trading is to identify and capitalize these pricing discrepancies between related instruments, while hedging out other market risks. Traders may use various quantitative models, statistical techniques, and fundamental analysis to identify relative value opportunities […]

Day trading with 0 DTE (Zero Days to Expiration) options is an advanced and risky options trading strategy.  We look at the strategies, risks, and general things to know when it comes to day trading 0 DTE options.   Key Takeaways – 0 DTE Options Not for Long-Term Holds  0 DTE (Zero Days to Expiration) […]

When considering pursuing new trading strategies, conduct an evaluation based on various critical factors that directly impact the potential success and alignment with your trading goals and risk tolerance. We’ll cover those in this article.   Key Takeaways – When to Pursue New Trading Strategies Market Conditions Strategies effective in one scenario may falter in […]

The Dunning-Kruger effect is a cognitive bias wherein individuals with low ability at a task overestimate their ability, and has important implications in trading and finance. It can negatively impact decision-making processes, risk assessment, and ultimately, financial outcomes. We look at the key causes and considerations related to the Dunning-Kruger effect in trading and finance. […]

Overtrading occurs when traders or investors buy and sell financial instruments more frequently than their strategy or financial situation warrants. It often leads to diminished returns and increased risks. Moreover, it often leads to increased costs (commissions, fees, etc.). Understanding the causes, recognizing the types, and employing strategies to avoid overtrading are important for maintaining […]