Most studies show that it’s more important to have the right asset allocation than to try and correctly time the market. When the market is drifting sideways, it’s a great time to rebalance your allocation. Strategies for trading a sideways market For instance, you could sell a straddle—both an at-the-money call and a put option…
Elon Musk, Tesla’s CEO, has frequently criticised short-sellers, labelling them ‘value destroyers’ and suggesting that short-selling should be made illegal. Short selling continues to be controversial despite regulatory rules to prevent short sellers from manipulating the market. When you buy a stock, your upside is unlimited and the maximum amount you can lose is all…
You can think of it as a loan that allows you to gain exposure to a large amount of an asset without having to pay the full price upfront. Leverage can increase potential returns from a pool of capital but can also result in higher losses. There are risk management tools and strategies available for…