Is Interactive Brokers safe? I have been a customer at Interactive Brokers (IB) for the last 11 years and on and off for many years before that. I love IB as a broker, but my capital is at risk: Your assets in IB are not segregated but held in “street name” and thus you are…
Correlation in trading strategies , which measures the relationship between two datasets, is an essential variable for a trader. How your positions move in relation to other positions is crucial to understanding and managing risk. Correlation in trading means how your trading strategies perform together. The strategies should not produce negative results at the same…
Would you like to know how to get started in trading? Do you want to become a trader? Or have you dipped your toes in the water but are struggling to find the right direction? Are you uncertain if trading is the right thing to do? Perhaps you are better off investing for the long…
Just like we can develop seasonal trading strategies in the overall stock market, we can find potentially profitable seasonal trading strategies in the retail sector. This article presents one such opportunity. Are there any seasonalities in retail stocks? Some years ago, Jay Kaeppel published an article about retail seasonalities. The best months for retailers are…
How to deal with drawdowns in trading is important. Why? Because a drawdown makes you fiddle, change, abandon your strategies or stop trading altogether. Thus, a good trading plan deals with drawdowns before they inevitably happen. Our anecdotal experience indicates most traders and investors (including ourselves) underestimate their risk tolerance. What looks tolerable in backtesting…
Is it better to trade or invest in stocks? What is the difference between investing and trading? Trading and investing are entirely different ballgames. Both have the same aim, to grow your wealth, but they have various time commitments, risk profiles, and likely outcomes. In this article, we explain the main differences between trading and…
TradingView is a financial platform that offers tools for traders to visualize market data, create and share technical analysis, and develop and backtest trading strategies. The platform offers a variety of tools including charting, indicators, drawing tools, and alerts. It allows you to access a large community of traders and analysts to share and learn…
The Golden Butterfly Portfolio by Tyler portfolio is a simple but highly effective approach to asset allocation. It focuses on delivering steady investment growth by balancing economic conditions with an eye toward prosperity. Let’s find out what this portfolio is about and how it works. The Golden Butterfly Portfolio is a balanced investment strategy that…
One of the most important factors in trading is trading volume, as it represents the amount of buying and selling that goes on. One strategy that makes good use of trading volume is the value area trading strategy. What is it? Value Area trading strategy is a method of trading that makes use of the…
Chart patterns are very important to price action traders. They are tools for forecasting future price directions, and the triple top chart pattern is one of the most popular bearish patterns. Let’s take a look at the triple top chart pattern trading strategy. The triple top chart pattern is a reversal pattern that predicts a…
