What is the Efficient Markets Hypothesis? The Efficient Markets Hypothesis (EMH) is an investment theory primarily derived from concepts attributed to Eugene Fama’s research as detailed in his 1970 book, “Efficient Capital Markets: A Review of Theory and Empirical Work.” Fama put forth the basic idea that it is virtually impossible to consistently “beat the…
What is Insider Trading? Insider trading refers to the practice of purchasing or selling a publicly traded company’s securities while in possession of material information that is not yet public information. Material information refers to any and all information that may result in a substantial impact on the decision of an investor regarding whether to…
Stock Investing: A Guide to Value Investing Since the publication of “The Intelligent Investor” by Benjamin Graham, what is commonly known as “value investing” has become one of the most widely-respected and widely-followed methods of stock picking. Famed investor Warren Buffet, while actually employing a mix of growth investing and value investing principles, has publicly…
Stock Investing: A Guide to Growth Investing Investors can take advantage of new growth investing strategies in order to more precisely hone in on stocks or other investments offering above-average profit potential. When it comes to investing in the stock market, there are always a variety of approaches that can be taken. The goal, however, is…
What are Algorithms (Algos)? Algorithms (Algos) are a set of instructions that are introduced to carry out a specific task. Algorithms are introduced to automate trading to generate profits at a frequency impossible to a human trader. The process is referred to as algorithmic trading, and it sets rules based on pricing, quantity, timing, and…
Guide to Commodity Trading Secrets Successful commodity traders know the commodity trading secrets and distinguish between trading different types of financial markets. Trading commodities is different from trading stocks. It’s a different game, but a game worth learning for investors. Every investment instrument is unique in terms of how best to generate profits from trading it….
What is Speculation? Speculation is the buying of an asset or financial instrument with the hope that the price of the asset or financial instrument will increase in the future. Speculative investors tend to make decisions more often based on technical analysis of market price action rather than on fundamental analysis of an asset or…
What is the Dow Jones Industrial Average (DJIA)? The Dow Jones Industrial Average (DJIA), also commonly referred to as “the Dow Jones” or simply “the Dow,” is one of the most popular and widely recognized stock market indices. It measures the daily stock market movements of 30 U.S. publicly-traded companies listed on the NASDAQ or…
What is Risk and Return? In investing, risk and return are highly correlated. Increased potential returns on investment usually go hand-in-hand with increased risk. Different types of risks include project-specific risk, industry-specific risk, competitive risk, international risk, and market risk. Return refers to either gains or losses made from trading a security. The return on…
