Month: September 2020

Election 2020: What will happen if the capital gains tax is increased?
Investing

Election 2020: What will happen if the capital gains tax is increased?

I’ve been on my soapbox lately demonstrating that history suggests that elections do not mean nearly as much for equity markets as many investors suspect. Case in point, the average annual return on the US equity market, as represented by the S&P 500 Index, has been 10.1% since 1957.1 Per the rule of 72, that’s a doubling of one’s investments roughly every 7.1 years across the terms of 12 different US presidents. For more potential fodder to ease election concerns, please refer to “2020 US Presidential Election: 10 Truths No Matter Who Wins.” The first question I inevitably receive as I conclude my presentation and come down from my platform (and by that I mean the same chair I have been sitting in for the past seven months) is, “But what if the capital gains tax is increased?” Joe Bi...
How To Trade a Market Sell-off (And When Not To)
Online Trading

How To Trade a Market Sell-off (And When Not To)

How To Categorize a Sell off When speaking of a market sell off, it’s first crucial to categorize what we mean by a sell-off. Your definition should vary based on your holding period and time frame, but we need to be consistent. Here are a few ideas on how to categorize the severity of market moves: A multiple of ATR drop in a time period (i.e., “a 3x ATR decline in the space of three days constitutes a sell-off”) Price moves below lower bands (Bollinger Bands, Keltner Channels, and VWAP bands can all serve this function). Rises in the VIX Percent declines Standard deviations To me, it’s most simple to use a measure of either standard deviations or ATRs. There are tons of tools that can do this for you, whether technical indicators, but a straightforward w...
Another cheque: Silver Lake co-investors to invest additional Rs 1,875 cr in Reliance Retail
Stock News

Another cheque: Silver Lake co-investors to invest additional Rs 1,875 cr in Reliance Retail

Mumbai: Oil-to-retail conglomerate Reliance Industries (RIL) said on late Wednesday that co-investors of Silver Lake will invest an additional Rs 1,875 crore into its unit Reliance Retail Ventures (RRVL), a second such deal in a single day. This will bring the total investment by Silver Lake and its co-investors in the subsidiary to Rs 9,375 crore, and they will hold a 2.13 per cent equity stake in RRVL on a fully diluted basis, RIL said in a late evening release. “Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian retail and the capabilities of Reliance Retail,” Mukesh Ambani, chairman and managing director of RIL said in a release. Earlier in the day, RIL said General Atlantic will invest Rs 3,675 crore into Reliance Retail Ventures for ...
How to Day Trade for a Living
Strategy, Suggested, Technical Analysis

How to Day Trade for a Living

Want to day trade for a living? Here’s a full guide on the most important points you need to consider before getting your feet wet in the markets. Day trading is not easy, but with the right mindset, discipline, and plan, you’ll be able to become a consistently profitable day trader – just like thousands of others around the world. Let this article be the first step towards your trading goals. What is Day Trading? Day trading is a popular trading style that involves opening and closing trades within one trading day. That’s why the style is called day trading or intraday trading as opposed to other trading styles, such as swing trading for example. Most traders have started day trading the market early in their trading career, including me (and most likely you). It’s a great way to lea...
Bitcoin price risks even bigger pullback in Q4 after sharp rejections
Crypto News

Bitcoin price risks even bigger pullback in Q4 after sharp rejections

Bitcoin price is showing weakness after another sharp rejection from the $11,000 resistance level. As Bitcoin (BTC) enters the fourth quarter, the sentiment around the market remains generally cautious and neutral. Bitcoin might face a larger pullback in the fourth quarter due to several key factors. Throughout the past three years, every September monthly candle has closed red. The September monthly candle for 2020 is also on track to close as a red candle, indicating a lack of direction. From March through August, favorable financial conditions, a low-interest-rate environment and a multitrillion-dollar stimulus package caused Bitcoin and stocks to rally in tandem. In the upcoming months, due to the United States presidential election in November, the probability of a delayed stimulus ...
AUD/USD: RBA to promote unwind of Aussie gains – CIBC
Forex

AUD/USD: RBA to promote unwind of Aussie gains – CIBC

Analysts at CIBC, see the Australian dollar weakening versus the US dollar on the back of actions implemented by the Reserve Bank of Australia (RBA). The forecast AUD/USD at 0.69 by the fourth quarter.  Key Quotes:  “A broad reversal and consolidation of USD weakness has contributed to AUD/USD losses, though weakness on other crosses, including vs JPY, EUR and CAD is more telling. We anticipate further weakness over the coming weeks and into the next year.” “Weakness will be driven by a challenging domestic economic environment – highlighted by slowing growth and rising unemployment. The RBA will respond with greater monetary accommodation, and continue, at times subtle, efforts to talk the currency lower. Ongoing tension with China, that has seen some exports to the country...
Mnuchin says he is ‘hopeful’ White House and Democrats can strike a coronavirus stimulus deal
Business news

Mnuchin says he is ‘hopeful’ White House and Democrats can strike a coronavirus stimulus deal

Treasury Secretary Steven Mnuchin said he will talk to House Speaker Nancy Pelosi about coronavirus stimulus again Wednesday and is "hopeful" about the prospects of a deal. "I say we're going to give it one more serious try to get this done and I think we're hopeful that we can get something done," he said during the Delivering Alpha conference presented by CNBC and Institutional Investor. "I think there is a reasonable compromise here." The Treasury secretary added that he aims to find an "understanding" with Pelosi on a broad relief package by Thursday. Mnuchin said an offer he expects to bring to the speaker — a counter to the $2.2 trillion aid bill the House could vote on this week — will resemble the roughly $1.5 trillion bipartisan House Problem Solvers caucus proposal put forw...
Bitcoin exchange reserves down $5B in 2020 hints at whale accumulation
Crypto News

Bitcoin exchange reserves down $5B in 2020 hints at whale accumulation

The Bitcoin (BTC) reserves of exchanges are continuing to drop, which suggests retail investors and whales might be accumulating. According to data from CryptoQuant, all exchanges’ reserves dropped to 2.4 million BTC, which is equivalent to $25 billion. In contrast, in October 2019, exchanges had around 2.8 million BTC, currently worth $30 billion. Bitcoin reserves on all exchanges throughout the past year. Source: CryptoQuant There is a clear decrease in selling pressure from whales and retail investors The reserves of exchanges increase when investors deposit Bitcoin. Typically, deposits or inflows are considered selling pressure, because traders have to send BTC to exchanges in order to sell. Hence, when exchange inflows decline, it often signifies that the appetite to sell BTC b...
APM Stock Price: Aptorum Group Ltd soars 290% after venturing into infectious diseases
Forex

APM Stock Price: Aptorum Group Ltd soars 290% after venturing into infectious diseases

NASDAQ: APM has ended Tuesday's session with a surge of 90% after hitting even higher levels  Aptorum Group launched a new unit focused on an infectious disease liquid biopsy unit. Venturing into a new field involving the coronavirus implies strong growth for the low-valued company. When a stock trades at rock-bottom levels, a small spark is all that is needed to trigger a surge. Aptorum Group Ltd nearly quadrupled in value in Tuesday's intense session, closing at $4.76 after already hitting a high of $14.23. It is set to endure profit-taking on Wednesday and drop toward the $4 mark, yet rise toward the 52-week high of $18.25 cannot be ruled out. Even after the recent leap, NASDAQ: APM's market capitalization is only $144 million. Can it continue rising? APM Stock News ...
The Comforting Lies they feed you in the market all the time
Stock News

The Comforting Lies they feed you in the market all the time

Why do people think that there is no money to be made in trading? I don’t. I believe there is substantial amount of money to be made in trading. If people thought at 20 per cent return on a steady basis is wealth building over time, what would they say to 200 per cent? Boggles the mind, right? And when the mind boggles, it tends to reject what seems ‘unreasonable’. But 'reason' is in the mind too, right? So if we take the mind out of the equation, the ‘ún-reason-able’ is really an exercise in taking the mind out of the way we look at things! Sounds heavy? I agree it does. But if you re-read that passage a few times you will get to where I am going with all this. Let’s see what creates these ‘unreasonable’ perspectives in the mind. For simplicity, I will just call them “Comforting Lies”...