Here are 10 lessons from a portfolio manager that averaged 29% annual return from 1977 to 1990 1. Everyone has a unique set of knowledge related to their field of work or interest. Your investor’s edge is not something you get from stock analysts and experts. It’s something you already have. You can outperform the experts if you… Read More »
Volatility in markets continue Not a bad month but because February is kind of short I was not able to make too much. I mostly sell put and call spreads being fairly conservative with my Deltas and $2045 represents about 0.5% of my portfolio size. About half of this month’s profit or $1,046 comes from the… Read More »
The cost of higher returns One advantage stock investors have over fixed income investors is higher returns over a long period of time. But this benefit comes at a price. The trade-off for better returns is more volatility or the tendency to change rapidly and unpredictably. Volatility is often seen in a negative way. But objectively it should… Read More »
What drives the stock market higher or lower? In one word, it’s liquidity. Below on the left is a bar graph of global liquidity in US$ trillion. And on the right is the Vanguard Total World Stock Index ETF (VT) over the same time. Notice the correlation between the two? Here’s what they look like overlapped together.… Read More »
Starting a new year of options It has been a decent good start to the new year. I earned $3,607 in net premiums from trading options. About half of this amount came from my 2 weekly trading challenges that I share on Twitter and YouTube. For my Google options challenge, I’m trying to make a 50% annual return.… Read More »
Not the best year for investors The collective net worth of Canadians fell by $332 billion in the third quarter of this year. That’s about $8,700 per person. If we annualize this amount it comes out to roughly $35,000. Unfortunately RBC is forecasting further decline to net worth until the second quarter of 2023. Asset prices across… Read More »