Typically, I prefer to come up with my own ideas and do my own writing. But sometimes I come across things that are so well thought out and so well written I figure “why recreate the wheel?”
For Investors
So the first article is about the yield curve. While the phrase “yield curve” may not trigger excitement, the fact remains that the yield curve is one of the simplest and most useful ways to gauge future prospects for the economy and the stock market. Just not always in the way most people think. The 10-yr-2yr spread has been tightening of late, which has triggered a lot of consternation among the pundit class.
So the first article by Liz Ann Sonders of Charles Schwab addresses the reality (and the history) of the yield curve, and is extremely enlightening. If you follow the economy or the stock market at all, please invest a few minutes and educate yourself about this important – and very misunderstood and misinterpreted – topic by reading the article linked below.
Don’t Fear the Yield Curve Reaper by Liz Ann Sonders at Charles Schwab
For Traders
Technically this second article does apply to “investors” as well as “traders”, but I like it more for people who trade in the financial markets on an active basis. For many the material may seem like a “refresher”, and maybe it is. But even if so, a refresher is useful in order to help remind oneself about “how trading really works”, and how long-term success is actually achieved (Hint: It has less to do with “signal generation” and much more to do with “money management and risk management”).
So if you trade your own money on any kind of an active basis – again – please invest a few minutes and educate (or re-educate) yourself on this important topic
Losing To Win: 3 Reasons I Focus On Average Loss from Schwab Trading Services
Enjoy. And learn.
Jay Kaeppel
Disclaimer: The data presented herein were obtained from various third-party sources. While I believe the data to be reliable, no representation is made as to, and no responsibility, warranty or liability is accepted for the accuracy or completeness of such information. The information, opinions and ideas expressed herein are for informational and educational purposes only and do not constitute and should not be construed as investment advice, an advertisement or offering of investment advisory services, or an offer to sell or a solicitation to buy any security.
indeed a great article that every trader should refer to often