How to Beat The Most Dangerous of All Biases
Jan 09, 2019 | Investing Strategies
We know that certain bad habits are hazardous to your health. And many know that cognitive biases — irrational tendencies built into the brain that lead to poor judgment — can be hazardous to your wealth. Over the past six decades or so, dozens of cognitive biases have been identified. One of the oldest and most dangerous of these is…
What “The Inside of the Stock Market” is Telling Us
Jan 04, 2019 | Investing Strategies
Stan Druckenmiller is one of the best money managers of all time. He has a track record of better than 30% compound annual returns, over 30-plus years, with no losing years. And Druckenmiller accomplished that track record while managing billions — which is harder than with smaller amounts — and made more money in down markets than up markets, which…
5 Financial Resolutions to Consider this New Year!
Dec 28, 2018 | Investing Strategies
With the Christmas season behind us, and 2019 just a few days away, we naturally have a moment to both reflect on the year gone by as well as look ahead toward the new year. Our goal at TradeSmith is to provide the resources you need to be successful individual investors. We include in that goal not only our powerful…
Gold and Gold Stocks Climb a Wall of Global Slowdown Worry
Dec 21, 2018 | Investing Strategies
For Christmas 2018, investors are getting gold in their stockings. That’s not as nice as it sounds. As we head into the end of the year, markets are in turmoil. For example: On the Nasdaq and New York Stock Exchange, the percentage of stocks making 52-week-lows — now 38 percent — is at a historic level. There were only eight…
This “Original Hedge Fund” Strategy Can Protect You in Bear Markets
Dec 18, 2018 | Investing Strategies
If you’ve been wondering what a bear market feels like, this is it. The bear is here. But that doesn’t mean you have to panic. It doesn’t even mean you have to lose money when all is said and done. There are strategies that can help preserve your capital in a bear market — and there are strategies for growing…
European Equities Could Be a Great Buy in 2019
Dec 14, 2018 | Investing Strategies
Value investing has a rich history dating back nearly 100 years. Many of the billionaire legends we follow are value investors. And value investors tend to be contrarian. Value investing is contrarian at heart because, most of the time, it means buying things that are cheap or out of favor. Rather than looking for the most popular investment or the…
Why Deep Learning is the Future of Investing
Dec 11, 2018 | Investing Strategies
Artificial intelligence — and “deep learning,” a specific form of artificial intelligence — is changing the face of investing. This is not something that will happen in the future. It is already happening. The changes are widespread and they will only intensify in the coming years. This could be seen as good or bad news, depending on how you look…
What the Inverted Yield Curve Means (and Why You Shouldn’t Worry About It)
Dec 07, 2018 | Investing Strategies
The stock market had a wild ride this week. On Thursday, the major indices saw their biggest downswing and intraday recovery since May 2010. The Dow lost 785 points at the worst point, with the market roaring back in the last hour. The swings were tied to three things: U.S.-China trade relations, the direction of interest rates, and the yield…
The Mystery of the Misfiring Antitank Shells
Dec 04, 2018 | Investing Strategies
Investing well requires consistency and precision. Every so often, you might make a big investment decision. But to invest well in general, small actions have to be executed — and executed well — over and over again. There are numerous little things that you have to get right. When an investor gets negative results, or a cumulative outcome they aren’t…
Monitoring Your Portfolios During a Downturn
Dec 03, 2018 | Investing Strategies
As a TradeStops member, you know our mantra is to always have an exit strategy. One powerful exit strategy is to focus on the overall state of your portfolio by using the Portfolio Volatility Quotient (PVQ) Analyzer tool. If you have a long-term portfolio that’s sitting on large unrealized gains, it can be difficult to monitor the historical high-water mark…
