Education - Advanced, Page 3

  • The Benefits of Bottoms up Investing

    Bottom-up investing is an investment style in which an investor focusses on the fundamental of an individual company. This approach focuses on the analysis of individual stocks. Investors who employ a bottom up style focus on a specific company rather than an industry or macro environment.The bottom-up style assumes that

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  • Using Value at Risk to Manage Your Portfolio

    Value at RiskRisk management is a framework for describing the depth of risk exposure within a portfolio of assets.  Defining the risk management is generally a customized process, and using tools that describe the volatility of the returns is essential toward understand the capital at risk in a desired portfolio. 

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  • How to Analyze the Weekly Natural Gas Report

    Every Thursday the Department of Energy releases its estimate of inventories for natural gas storage supply in the United States.  This number is widely speculated on by analysts and natural gas prices will move rapidly if the number is different than expectations.  The number is released at 10:30 ET on

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  • Using Options to Hedge You Currency Portfolio

    Using Options to Hedge You Currency Portfolio

    There are plenty of times that you may own a currency pair, commodity or equity index that you want to hold, but you are leery about the current market environment.  One way to protect yourself against short term adverse move is to purchase or sell options to protect your portfolio.An

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  • Interest Rate Risk

    Interest Rate Risk

    The interest rate market is a global market which affects consumers, borrowers and lenders worldwide.  Interest rates affect consumers on a retail level as they influence credit card purchases, home loans, business loans, as well as investments that pays a fixed rate.  On the institutional level, interest rates are the

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  • Back Testing the Capital Markets

    Back Testing the Capital Markets

    Backing testing historical prices is a way of creating a trading strategy as historical patterns can assist in the process of finding changes in sentiment that generate trading signal.  By using specific criteria a trader can define and develop a strategy that allows that to profitably transact in the capital

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  • Discretionary Hedge Fund Strategies

    Discretionary Hedge Fund Strategies

    The hedge fund environment sprung to life in the late 1980’s as investors looked for opportunities outside the equity and bond markets.  Sophisticated investors helped catapult the industry as many were looking for investment alternatives that were not correlated to the stock market.  As asset allocation came into prominence in

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  • The Impact of High Frequency Trading on Retail Investors

    The Impact of High Frequency Trading on Retail Investors

    The capital markets is one of the purest forms of true commerce.  Nearly every participant, with the exception of central banks, is involve with one specific intention and that is to make money.  Whether you are a trader looking to earning your daily keep or a corporate hedger looking to

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  • Getting to Know MACD Divergences

    The MACD (moving average convergence divergence) is a momentum indicator initially developed by Gerrald Appel. The indicator measures momentum by evaluating the difference between a slow moving average and a fast moving average and comparing that difference, called the spread to a moving average of the spread.Since the MACD is

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  • Creating a Drawdown Plan

    Creating a Drawdown Plan

    The standard definition of a drawdown is the decline in the value of a portfolio from peak to trough, which is measured in percentage terms.  By using this definition a drawdown can only be calculated once a portfolio begins to recover after the trough is in place.  Some investment managers

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  • Gauging Sentiment in the Capital Markets

    Sentiment is a reflection of investor confidence and can be measures using a number of tools that reflect the emotional construct of investors at the present momentum in the capital markets.  Sentiment is an important tool for investors as it tells you whether there is too much enthusiasm or unusual

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  • How to Use an Interest Rate Differential

    Determining the future direction of a currency pair can be accomplished in a number of ways.  Market analysts will use specific types of analysis including evaluating capital flows or analyzing price action to create a view of the future direction of an exchange rate.  Another analysis that is often contemplated

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  • Basic Ichimoku Trading System

    The basic Ichimoku Kinko trading system is a trend following chart trading strategy that can be used on nearly every asset using multiple timeframes. The strength of the system is that it provides a trader with multiple data points in an effort to give an investor a robust view of

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  • Volatility Risk

    Volatility Risk

    Volatility RiskThe volatility of a security is defined as the change in the asset in percentage terms on an annualized basis.  Most investors are cognizant of volatility as it relates to returns on their portfolio especially if the market is moving lower.  Volatility can be gauged in many ways and

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  • Objective Trend Lines

    Support and resistance are key components to any trading strategy.  Once you determine that a financial security is a robust candidate to catch a specific move, finding the correct entry and exit levels are key to long term success.  Which risk management is the most important equation in creating a

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  • Using Dynamic Fibonacci Retracements

    Most of us are familiar with Fibonacci retracements.  If you are not, you can find information all over the internet about the mathematician who lived in Italy between 1170 and 1250, who formulized mathematical term using what he observed in nature.  His discoveries have been used by technical analysts for

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  • How to Enhance Your Moving Average Crossover Strategy

    Moving average CrossoverThe moving average crossover strategy is geared toward finding the middle of a trend.  A trend defines price action in which prices move in a specific direction over a period of time.  Generally trends are either upward or downward, as sideways movements are considered consolidation and not trends. 

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  • Political Risk

    Political risks within the capital markets are the headwinds that create uncertainty and fear.  Investors are often hesitant to enter new positions when they are uncertain of whether a systematic event can derail their positions. Political risks will generate unwanted volatility and directly and indirectly effect an investors short and

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  • Trading Currencies Using a Synthetic Pair

    One of the first steps you would take as a new currency trader is familiarizing yourself with the financial instruments that are trading in the FOREX market.  Most learn about the movements of the major currency pairs such as the euro versus the US dollar.  After understanding how the major

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  • Bollinger Bands®

    Markets may be placed into two categories, ranges and trends.  A range is a defined period, which may be measured using a specific high and a low point that is defined, while a trend describes a period when the price of a security continues to move in the same direction

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