ARTICLES Archives

Hedging Portfolio Exposure

Published August 16th, 2021 ** Disclosure: I rarely, if ever, hedge. I am of the strong belief that a system designed to trade a certain style should be left to do its thing. Ideally you should be able to ride out the ups and downs of the strategy as per the backtest. If a hedge […]

Hedging Currency Exposure – Learn How to Hedge

Published August 17th, 2021 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 […]

Beyond Recency Bias

Published August 16th, 2021 Recency Bias occurs when a small or recent sample of trades is used to draw big picture conclusions. 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 […]

Suppressing the Inner Voice of Doubt when Investing

Published August 17th, 2021 It’s normal to have doubts when things don’t go your way, especially when investing your money. So how do you suppress the inner voice of doubt when it comes to investing. Any activity that you have an emotional connection with is one where doubts will flare up and test your resolve. […]

Bear Market Strategy

Published August 17th, 2021 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. […]

The Risks of Avoiding Risk for Traders & Investors

Published August 17th, 2021 The risks of avoiding risk for you as traders or investors, we will explore what we mean in this article. 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 […]

Making Watch Lists Work for You

Published August 19th, 2021 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 […]

Play a Good Defense When Trading

Published August 17th, 2021 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 […]

How Profits are Generated

Published August 13th, 2021 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 […]

Equity Investing with Relative Momentum

Published August 13th, 2021 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 inequities. Before we go there, […]