TradersLog

Are Stocks and Bonds Really Different?

In the long-term, investors in stocks and bonds have different goals but the performance of the two investments has been about the same over the past thirty years.

Backtesting to Build Confidence

To make the trade or not to make the trade? That feeling of indecision before enacting a trading strategy can paralyze some traders, but fortunately, backtesting offers an excellent way to build confidence about a trade’s statistical chances.

Do Stops Work?

One of the first lessons that new traders are taught is that one of the keys to success is to cut losses and let winners run. This almost always leads traders to believe stop loss orders should be used to cut losses and are a valuable part of any trading strategy. Individual traders also seem to place stops under the market and forget about them, knowing their losses are limited.