7 Habits of Highly Successful Traders

Just like Stephen Covey found the effective habits of successful people through his studies I have found the common habits of successful traders through research. Many similarities for what creates success in any field. Let me breakdown the seven habits common in most successful traders. 1. Use A Positive Expectancy Model What is Positive Expectancy? … Read more

Bayes Theorem, the Geometry of Changing Beliefs

Image created by Holly Burns Bayesian thinking is successfully applied to professional fields requiring statistics and also to those considered outside of traditional statistics like education, computer programming, software, philosophy, economics, medicine and the practice of law. Bayesian thinking is a mental model which allows us to adapt our thinking reactively to new evidence as … Read more

Growth Vs Value Investing – New Trader U

There are two primary methods for investing in the stock market: value investing and growth investing. Value investors want to buy a dollar in value for 50 cents today and a growth investor wants to but a future five dollar value for one dollar today. They are different ways of thinking but both can be … Read more

Why 80% Of Day Traders Lose Money

To the stock trading platform Etoro, they found that a whopping 80% of day traders lose money over the course of a year and the median loss is -36.30%. Also, 75% of all day traders end up quitting within just two years. In 1999, The North American Securities Administration Association (NASAA) reported 70% of traders … Read more

Why Home Prices Haven’t Crashed Yet

Home prices minus the inflation rate equals real home prices. The historical performance of home prices has to be looked at in terms of inflation adjusted returns not nominal home prices. If your house goes up 10% in one year but inflation also goes up 10% you didn’t have a 10% return, your house was … Read more

Warren Buffett: Why Real Estate Is a Lousy Investment

Warren Buffett believes that compared to the potential of companies and stocks that real estate is a lousy investment. This is speaking relative to business ownership as he does think money can be made in real estate especially in times of market mispricing. However, his edge is in analyzing the value of future company cash … Read more

The American Economy Is Now A Super Bubble | EXPLAINED

A market bubble is when prices are too high based on historical fundamental valuation metrics at approximately 2-sigma from the historical trend. A super bubble is when asset prices are multiples from historical valuations and the average price trend due to extreme speculative conditions. A super bubble in the financial markets is when assets are … Read more

It Started: The Housing Market Is Collapsing

Let’s look at the first signs of the demand for high priced houses collapsing and how much of it is location based around the US Is the housing market in a recession? Most home builders and mortgage brokers say that we have entered a housing recession. Here’s what they are seeing: Higher mortgage rates are … Read more