Overview Interest rates play a key role in the general business cycle and the financial markets. When interest rates change, or interest rate expectations change, the effects are far-reaching. When rates rise, consumers spend less which causes retail sales to slow, which leads to reduced corporate profits, a declining stock […]
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This article reproduced with permission from Brett Steenbarger Here is an interesting observation drawn from the past six months of working with a large group of full-time traders: The most successful of the group never change the displays on their screens. Each morning the same information appears in the same […]
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By Chuck LeBeau. The outcome of every trade is dependent on the exit. If we enter in a timely fashion and then exit poorly, the trade is likely to be a loss. If our entry happens to be poor but our exit is good we might still salvage a profit. […]
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This tutorial written and reproduced with permission from Peter Ponzo Historical Volatility (HV) is calculated by looking at historical returns and calculating some kind of average deviation from their mean value using the magic formula for Standard Deviation … also called Volatility. But aren’t their several magic formulas for Standard […]
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This tutorial written and reproduced with permission from Peter Ponzo Once upon a time, a British government bureaucrat named Harold Edwin Hurst studied 800 years of records of the Nile’s flooding. He noticed that there was a tendency for a high flood year to be followed by another high flood […]
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