The common belief is that large-cap stocks don’t perform very well because they are already big and they don’t grow at high rates. However, is this true? What is the large-cap effect (factor) trading strategy? In this article, we are going to see what the large-cap effect is, develop some trading and investment strategies, and…
Harry Browne was an American investment advisor and financial writer. He was best known for his investment philosophy and strategies, which he outlined in several books. In his book “Fail-Safe Investing,” Harry Browne introduced the Permanent Portfolio as a way to ensure financial security. Let’s take a look at Harry Browne’s Permanent Portfolio. Harry Browne’s…
Bear market strategy refers to the techniques traders and investors use to trade the market during a bear run. They include entry, exit, trade management, and risk management strategies investors use to protect their assets and even make some profits during a bear market. What is a bear market? A bear market, also known as…
Of the many classifications a stock can have, one of the most significant is relative to its size. It is well known in the market that small caps tend to perform better than large caps, something called the small-cap effect. However, how significant is the small-cap factor? In this article, we are going to explore…
The best asset offers the best trading opportunities when it has a high degree of volatility, liquidity, and transparency. Volatility is the measure of how much the price of an asset moves up and down over time. Liquidity is the measure of how easily an asset can be bought and sold. Transparency is the measure…
Spin-offs are a popular corporate action that company management and boards may pursue to unlock value or narrow down their focus. Many famous investors, such as Joel Greenblatt, Seth Klarman, and Charlie Munger, have voiced their support for spin-offs as sources of investment ideas. In this article, we look at how a spin-off trading strategy…
We have compiled a new strategy bundle: 3 strategies for SPY and QQQ that hold positions from the close until the next day’s close – 24 hours. What is a 24-hour swing trade? A 24-hour swing trade is a trading strategy that enters at the close and sells at the close of the next trading…
Today we will look at a strategy that saw the day of light nearly 60 years ago. The somewhat cryptic name is the Coppock Curve. What is the Coppock Curve strategy about? The Coppock Curve Strategy was devised by economist E.S.C. Coppock under a mandate from the Episcopal Church to find long-term investment opportunities. It’s…
How does war affect the stock market? Can we expect poor returns and increased volatility? Or is it a good time to buy when you hear the sound of cannons? Perhaps counterintuitive, history suggests that stock markets show less volatility during wars and geopolitical conflicts, and Nathan Rothschild’s famous quote “buy to the sound of…
Trading is a money-making mechanism that has a lot of appeal. It’s a merit-based system that allows you to use nothing other than your ingenuity to make money. You’re not providing a service. You’re not making anything. The only thing you did was recognize the growth potential behind one stock or commodity before anyone else….
