Many retail investors are drawn to short-term trading strategies like day trading or swing trading, lured by the prospects of quick...

As artificial intelligence increasingly makes its way into the investment world, questions arise regarding how AI systems can uphold...

Many popular investment brokerages and trading apps have designs and features that encourage overtrading - making an excessive number of trades that are ultimately detrimental to returns. While trading volumes make these companies more money in fees and data sales , overtrading tends to significantly reduce investors' long-term gains . In this article, we’ll explore some of the problematic ways these platforms promote superfluous trading and why it’s bad for customers

Fundamental analysis involves analyzing a company's financial statements and operations to determine the intrinsic value of its stock . One of the most important sources for conducting fundamental analysis is a company's regulatory filings with the Securities and Exchange Commission (SEC). As an investor, learning how to find and interpret SEC filings can help you make more informed investment decisions. This article will provide an overview of SEC filings and how to use th

Synthetic controls are an increasingly popular method in causal inference that can be highly useful for investors when evaluating the...

Initial public offerings (IPOs) are a popular topic among investors as they represent an opportunity to get in early on a potentially...

Retail investors have flooded into the stock market in recent years thanks to free trading apps and optimism around meme stocks,...

Artificial intelligence and machine learning are transforming many jobs , including those in the finance industry. AI systems are now capable of analyzing massive amounts of data, identifying patterns and making predictions faster and more accurately than humans in some cases. This means AI threatens to replace some of the core job responsibilities of financial analysts over the next decade. Financial Analyst Responsibilities Financial analysts evaluate economic, financ

Tacit knowledge is an important concept that investors should understand. It refers to the knowledge, insights, and intuitions that...

As investors look to leverage AI and machine learning in their analysis and decision-making, data quality is crucial. If the data going into AI models is biased , inconsistent, or incomplete, then the insights, predictions, and recommendations generated will be flawed. Two techniques that can improve data quality for investors employing AI solutions are re-weighting and targeted data augmentation. Re- Weighting Data Re-weighting involves adjusting the overall mix of data sa

When evaluating the potential impact of an AI system, it's important to understand that effects can vary across different groups, known...

As an investor, it can be tempting to react to every headline and breaking news story about a company. However, following the day-to-day...

The Rule of 72 is a handy shortcut for estimating how long it will take for an investment to double in value when you know its annual...

In investing and probability, you often encounter binary outcomes - two possible scenarios such as a market going up or down. However,...

Many investors often think about "buying the dip" when they see a stock price fall. They believe buying when the price drops allows them...

Footnotes are an important part of reviewing SEC filings for investors. SEC filings, including 10-Ks, 10-Qs, and proxy statements,...

As an investor, you may be tempted to only look at big, mainstream markets when considering where to put your money. However, some of the...

A company's stock price is the current market price of a single share of its stock. This price is determined by the market forces of supply and demand - it goes up when there are more buyers than sellers, and goes down when there are more sellers than buyers. On its own, a stock's price doesn't tell you much. It doesn't reveal anything about the actual value or performance of the underlying company. A high stock price doesn't necessarily mean the company is fundamentally s

As an investor, determining cause-and-effect relationships is crucial for making sound investment decisions . However, correctly identifying causality can be more difficult than it seems. There are some common ways that investors misunderstand or misattribute causality , which can lead to poor choices. Correlation vs. Causation One of the biggest causality mistakes investors make is confusing correlation with causation . Just because two variables are correlated , or te

When analyzing a company's SEC filings like 10-Ks and 10-Qs, there are certain red flags investors should keep an eye out for. Though a...