Introduction You might have noticed that I have a pretty large set of trading strategies. Running many trading strategies leads to diversification, which reduces overall risk. But as you can imagine, running a large number of trading strategies can be a huge headache. The truth is, in my daily trading life, I typically stick […]
Why Dividends Suck Browse through any investment community discussion on dividends, and you’ll encounter myriad misconceptions about dividends. Here are some of the comments displaying the range of misconceptions related to dividend investing. “Dividends are for income generation, not for growth.” “Investing in dividend stocks is the best way to plan for retirement.” […]
When new investors first begin to understand dividends, they come up with a brilliant idea: “What if I buy a stock just before the ex-dividend date and sell it right after the dividend payout? Could I essentially collect the dividend without having to hold the stock?” The market contains free few lunches – or arbitrage […]
The Basics of Trading a Post-earnings Gap The Steps of Trading A Post-earnings gap Because a post-earnings gap occurs after a company releases an earnings report, many traders think that trading post-earnings gaps is different from trading any average gap. In many ways, this is true, as the catalyst for the gap is clear. While […]
How to Hedge against a Market Crash While the topic of hedging has gained in popularity recently, I claim most investors have not made changes in the fundamental basics of portfolio design. Many newcomers, and even some longtime investors, have misconceptions about how to hedge and prepare a crash-safe portfolio. Here are my six most […]
The Strategy No One Dares Risk I believe that the best investment is one that leverages mispricing. And I’m not alone, as hedge fund managers often base their own strategies around buying undervalued and selling overvalued investment instruments. Some mispricing phenomena are due to miscorrelations between certain instruments. Some traders have found that leveraged, paired […]
Credit Suisse’s two price targets for AT&T (one conditional on the merger) are both over 10% the current price. The merger between AT&T and Directv will likely go through. AT&T can – but needn’t – compromise with Netflix, the merger’s opposition. Credit Suisse (CS) is well known even to investors and traders not interested in […]
Genetic Technology Technical Analysis Genetic Technologies Limited (GENE) just jumped nearly 23% in share price within a day. The third up-gap this month, this time’s gap comes from news that another two healthcare centers have adopted its BREVAGenplus breast-cancer detection tool. previous two up-gaps were also fueled by BREVAGenplus’s acceptance into other facilities. The causational […]
24 Stocks You Should Avoid Buying When Oil Rebounds (And 5 Stocks To Buy) Includes: AAL, COST, DAL, DNR, F, HA, HES, JNJ, KO, LUV, MAT, MCD, MRO, NFX, PEP, PG, QEP, ROST, SAVE, SBUX, TGT, THO, TJX, TSLA, TTM, UAL, UN, WGO, WMT, XOM, ZAAP Disclosure: The author is long AAL. Summary In light […]
Want to know how to get into gap trading? I’m listing my 11 easiest gap trading strategies for you to try out. Gap trading suits every trading style, from day trading to options trading. If you don’t know what gaps are yet, first get my complimentary guide, The Gap Method. Read it all the way […]
