- Using the Kelly Criterion in Your Investment Plans
If you’re looking to maximize investment returns, perhaps you should think like a gambler. The Kelly criterion was used by horse racing gamblers in the late 1950s. Today, Warren Buffet and others use it for investing purposes. Before addressing your… read more…
- What Is the S&P 500 Average Annual Return?
Many investors build their portfolios around index funds. These bundled assets provide a return that tracks some third-party metric such as the price of gold, the bond market or, commonly, the U.S. stock market. The S&P 500 average annual return… read more…
- Stock Market Bubbles: Definition and Examples
You get in the shower and turn on the hot tap. The water’s cold, so you turn the tap a little further. Still nothing, so you give it another nudge. Then, all that hot water bursts out at once. You… read more…
- What Is the Series 27 Exam and License?
The Series 27 Financial and Operations Principal (FINOP) is a license that allows its holder to oversee the financial operations in one specific organization, namely a member firm brokerage. Also, the name refers to the exam the license holder must pass. We’ll explore the role the qualification plays in the regulatory structure of the investing… read more…
- What Are Registered Representatives?
Whether you’re looking to buy or sell a security, you’ll likely use a registered representative to help complete the transaction. Registered representatives, usually working with a brokerage firm, help their clients trade securities and provide investment advice. Their practices are… read more…
- Hypothecation: Meaning, Risks and Examples
Hypothecation is the practice of pledging collateral in order to secure debt. This comes up most often in mortgage lending, but it can apply to any kind of debt. It shows up in investing, but hypothecation and riskier rehypothecation can… read more…
- Algorithmic Trading: Definition and Use Cases
There are many different strategies for managing an investment portfolio But did you know you can automate trades within that portfolio? Algorithmic trading automatically places stock orders based on price and other conditions. Here are the basics of this method,… read more…
- What Is Price Action Trading and How Do You Do It?
In stock trading, there are several buying and selling strategies to choose from. Price action trading is one of them. Rather than relying on technical analysis or fundamental analysis, price action trading simplifies tracking and acting on stock trends. If… read more…
- Primary Market: Definition and Examples
The capital market refers to the arena where securities are created and traded between investors. Within this capital market are a primary market and a secondary market, each of which serves a different purpose. Those markets work together to promote… read more…
- How a Smart Beta Investing Strategy Works
Smart beta knows that every investor wants to beat the market. Few actually pull it off. Most of the time, a long-term, passive strategy built around reliable index funds will outperform most active trading schemes. Most of the time. Yet… read more…
- Entrepreneur: What It Takes To Start a Business
Simply put, an entrepreneur is someone who starts a business. But in the age of Bill Gates, Jeff Bezos and Elon Musk, entrepreneurs hold a revered place in the public imagination. They have become identified with special intelligence, visionary powers… read more…
- What Is the Fintech (Financial Technology) Industry?
There was a time when finances and technology were separate, like church and state. If you needed money, you went to the bank. If you wanted to play games, you used a machine. But now, there is fintech: The marriage… read more…
- What Are Equity Capital Markets (ECM)?
If you own a company that is looking to get an initial public offering (IPO), you might need to raise equity capital from financial institutions. However, you can do that through equity capital markets, which are broader than the stock… read more…
- All You Need to Know About Risk Parity
All investors seek a balance between risk and return that works for their temperament and circumstances. Allocation of capital drives many investment strategies, but some focus on risk allocation instead. One such strategy is risk parity, which spreads risk across… read more…
- What Is a Private Equity Fund?
It’s likely that most investors rarely thin about the world of private equity, even though private equity funds control billions of dollars in assets. In the best cases, they reap enormous returns for their investors and help launch some dynamic… read more…
- Behavioral Economics: A Guide for Investors
Investing and financial planning can all be about numbers, so it’s easy to see why economists long assumed people approach these subjects logically. Researchers have found abundant evidence that people often are more irrational about finances, investing and reading markets… read more…
- An Introduction to Investing in the Bond Market
The bond market is a safe harbor when the stock market starts going pear-shaped, or just feels a bit wobbly. They come in all shapes and sizes from Treasury to junk and are often a very strong option for someone… read more…
- What Is a Market Profile and How Do You Use One?
Investing smart means using the right tools. Whether that’s considering a stock’s volatility metrics or its price history, you won’t invest as well without the proper resources. One such resource? The market profile chart, first used in 1984. A market… read more…
- Delta Neutral Investing: What You Need to Know
In options trading, “delta” represents volatility. It is one of a set of variables, collectively known as “the Greeks, that traders use to assess the risk of a derivative. Here’s what you need to know about delta-neutral investing and how… read more…
- What Is the Time-Weighted Return (TWR)?
If you’re an investor, chances are you’re looking for a reliable way to keep tabs on how your money is doing. And while various methods exist to measure the performance of an investment portfolio, calculating the time-weighted return (TWR) is the… read more…
- What Is a Chartered Wealth Manager (CWM)?
Whether you’re a financial novice or a seasoned investor, getting some help from an expert might be good for you. If you need some help with financial planning, investing, or managing wealth a Chartered Wealth Manager (CWM) may be a… read more…
- A Guide to the CAN SLIM Stock-Picking System
CAN SLIM is an investing strategy that represents seven characteristics typically present in well-performing stocks. As a result, those traits typically manifest right before a stock sees its price increase. The term CAN SLIM or “C-A-N-S-L-I-M” is an acronym, with… read more…
- Using Alpha to Measure an Investment’s Performance
Risk is one of the most essential concepts to successful investing. Investors and capital-seekers looking for the right balance on any given security drive most market activity. Alpha measures an investment’s performance compared to a relevant market, like the Dow… read more…
- What Is Proprietary Trading?
A financial firm is said to practice proprietary trading if it invests its own money to make profits for itself, instead of earning commissions by trading on a client’s behalf. While the firm’s clients don’t benefit from proprietary trading, it… read more…
- Efficient Frontier: Definition, Benefits and Uses
As an investor, wouldn’t it be nice to know that your portfolio both limits your risk and maximizes return? Ideally, it will do just that. The efficient frontier is a set of investment portfolios that maximizes returns while minimizing risk. Learn… read more…