This is why Quant Trader has a wide trailing stop. To ride big trends, you need to give the shares breathing space. That’s how you capture the big moves.
The pros understand the real driver of stock market returns is income, not just capital gains. This is the crux of income investing.
Many people think algorithmic trading is a strategy. This is a mistake. It’s actually a process. It uses a computer to follow a set of rules.
When it comes to investment, building your wealth, providing for your family or generations after – you need multiple strategies.
Part of being an active investor means checking out a whole range of stocks: dividend stocks, growth stocks, blue-chips, mid-caps and tech stocks.
Since 2008, hedge funds have bled money. Investors are waking up to the dubious performance and are withdrawing hedge fund money at an alarming rate.
Impatience for performance can go one of two ways. It can get you out of losing trades early, which is good. But it can also see potentially good trades cut short.
Of course, in general the Aussie stock market takes it lead off the US. But the same dynamic cannot be said to be at play for the US.
In the 2015 financial year, the RBA reports that Australian companies paid out $78 billion in dividends to shareholders.
If total market profits fall further than dividend payouts, the ratio will increase. That’s part of what happened in 2008 and 2009.