Hedging Currency Exposure

Global markets provide international investors a large array of opportunities, not only for exposure to their respective economies, but also to specialist sectors within those markets. The following chart shows global stock markets priced in US Dollars. Not only is the US the worlds largest economy, it has one of the worlds strongest currencies and […]

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Understanding recency bias

Beyond Recency Bias

During certain time windows the performance and metrics of a strategy will fluctuate due to market conditions within those windows. You may have a system that offers a 65% trade win rate but in small windows it may drop to 40%. You may have a system that shows an 18% annual return over 25-years, yet […]

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Suppressing doubt

Suppressing the Inner Voice of Doubt

It’s normal to have doubts when things don’t go your way. Any activity that you have an emotional connection with is one where doubts will flare up and test your resolve. Losing weight. Starting a family. Taking an overseas posting. Driving your business forward. And investing. Investing tends to be an emotional roller-coaster because it […]

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Bear Market strategy

Bear Market Strategy

There is a time to be involved in the markets and times when it’s best to sit on the sidelines. The 2008 crisis proved to be an excellent case in point. Taking the ‘buy and hold’ approach not only destroyed much wealth, but also destroyed the psychological fortitude of many investors. Not being able to […]

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Trade Long Term Premium Portfolio

The Risks of Avoiding Risk

The 4th quarter 2018 was brutal for many traders and investors. December itself was the worst December performance for 70-years. Thankfully I was already in cash, but even so, my strategies certainly didn’t fare well in October where Tech stocks reversed very sharply. The following are typical questions that come across my desk, not only […]

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Nick Radge Rising Wedge pattern

Making Watch Lists Work for You

How to use watchlists to spot opportunities? Easy. The watchlists provide a short list of high momentum stocks, both bullish and bearish, that are potentially continuing within strong trends or pulling higher out of basing patterns or falling from distribution areas. In conjunction with these watchlists one can use various discretionary chart patterns to identify […]

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Defend your trading capital

Play a Good Defense When Trading

In my 34 years of trading I’ve never met anyone that didn’t like to make profits. Yet, for some strange reason, there seems to be an overwhelming number who hate losses. Go figure. Unless you’ve been sucked into a Ponzi scheme, you can’t have one without the other. They come hand in hand. Successful trading […]

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How Profits are Generated

How Profits are Generated

To someone expecting profit generation to come from complexity, what follows may seem too simplistic. The more you can understand and explain WHY profits are generated, WHY you have an edge, the more comfortable you will be applying your strategy. You do not need to understand all the different tools employed by successful investors to […]

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Equity Investing with Relative Momentum

Equity Investing with Relative Momentum

Equity Investing with Relative Momentum Let’s talk about relative momentum and specifically with equity investing. Normally relative momentum is associated with a portfolio of ETFs. However, as you will see in this article, over the last few years, or number reviews, we have been using it in our right equities. Before we go there however, […]

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