Stock Trading News

US-China relations, and the capital war conflict within it, is and will be a big driver of markets going forward and is important to understand even for those with shorter-term trading orientations. The same things tend to happen over and over again for the same reasons historically. By studying what happened in other societies and […]

‘Risk-adjusted returns’ is a common term used in trading and investing, even to the point of being a buzzword. It’s what every institutional investor strives for in order to add value to their clients. And what every individual trader wants to get more bang for their buck. Risk-adjusted returns normally refers to the idea of […]

Elections are always a time when traders and investors think about the implications of the results on their portfolios. However, in general, market participants tend to spend too much time thinking about the outcome and effect on their allocations. Elections create another set of probabilities to deal with and represent opportunity. But timing them and […]

In a previous article, we covered liquid alternative trading/investing, a type of long/short, typically market neutral(-ish) strategy that provides liquid, uncorrelated returns to traditional asset classes. These types of strategies, because of the market neutral character of them, are a good stepping stone into covering a bit on trader psychology. Even despite how much evidence […]

More tech startups are opting for direct listings instead of initial public offerings as the preferred way of going public. In this article, we’ll cover what direct listings are, how they work and why they’re popular among high growth companies, the pros and cons relative to the traditional IPO route, sustainability of this shift, and […]

The fed funds rate is the base rate that influences many other interest rates, including the cost of debt and equity for businesses as well as the rate of return on cash and rate at which investors can borrow. The effect of lower interest rates on earnings multiples is non-linear. We’ve mentioned in other posts […]

Option values are based on the price of the underlying asset or exchange traded product (ETP). Accordingly, once the underlying asset stops trading, there is no need for options to continue trading. Nonetheless, many underlying ETPs are now being traded in after hours sessions until at least 4:15 PM ET that are open to both […]

A market neutral strategy involves selecting individual securities to buy and short-sell such that roughly equal amounts of money are both long and short the asset class. The market neutral strategy is typically applied to equities, given the vast selection to choose from. Though it can also pertain to other asset classed like fixed income […]

Who doesn’t want to invest in the stock market and make a “full” passive income? Everyone in the markets, from individual traders and investors to institutional funds, has the goal of generating income with the least risk. For the sake of this article, we’ll assume a “full” income of $50,000 per year. We’ll also assume […]