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Bond funds keep buying new bonds as the old ones expire. They currently have bonds in their fund that are losing value. They were bought when interest rates are lower. Now the interest rates are higher, so those bonds are worth less. If the fund keeps buying funds into a rising environment...

When interest rates rise, existing bond values fall. Some of the experts around here can provide some details. But in a rising interest rate environment, I'm not sure if a bond fund is going to be so great.

Hello, Suppose you see options on five different stocks, each with a probability in the money of 10%. Can you actually use classical binomial distributions with this information? If so, then the probability that exactly two of them will land in the money would be: (5C2)(.1^2)(.9^3) = 7% Can...

Wow, that 30-year interest rate chart is amazing. Also, when the security narrows inside the channel, that is sometimes a sign that it is ready to break out of the channel. This one is textbook: It stays in the channel for a long time (decades!). Then it begins to neglect to touch the channel...

Thanks, this guy made a fun presentation!

Thank you for your reply. What is "TL"?

Hello, I've been studying a lot of candlestick charts with trend lines and trend channels. Very many of them seem to "magically" touch the bottom of an upward trendline and then go back up. Like this example (once the blue line gets touched, the trend line is respected and the stock goes back...

The SPY has a reputation for being amazingly liquid. It is described as an endless river of non-stop trading (at least during normal trading hours). It's breathtaking to see the quotes get updated in a non-stop fashion. I'm not sure how the SPY fits in with the details of what you are looking...

Hello, I think it would be good if there was a forum that discusses/recommends books on trading, investing, etc. Maybe the forum could be piloted for six months to see if there is any interest. It might turn into a hype forum, so I'm not sure if it is a good idea. But I like reading books...

Thank you, excellent detail. I really appreciate all of this. It's hard to piece it all together by clicking around on their website. These comments are drawing out the details I need.

Thanks... "exposure fees"... these are exactly the details I need to know about. I think IB pays a decent "sitting around" rate of return. So I could collect interest in the IB account with cash, and then also use that to avoid "exposure fees"... kind of like "Tell Jabba I have his money".

Not me... I'm too new at this. So if there are 5000 other people here, that narrows it down to 4999 candidates. :-)

Hello, I find IB's interface to be terrible. So I avoid this company. But the fees are very low, so I am interested maybe opening a small account for small trades. For example, if I write a far out of the money put, it might only be .14 per share premium. So you don't want $6 out of $14...

Thanks. I like that Marcus accounts pay a good rate and don't have a large minimum amount requirement. They seem like a best of breed in that regard.

Thank you for your reply. So does that mean the ETF slowly drifts below its NAV over time?

Hello, Suppose an etf has a 0.40% percent expense ratio and it pays no dividends to cover the expense ratio. Also suppose the ETF closely tracks the underlying securities. How does the ETF company take the money out of the security? If it has to track the underlying stocks, taking money out...

Hello, There are three S&P 500 etfs (maybe more): IVV VOO SPY. Suppose you wanted to go in and out of the S&P 500, but don't want to hit the wash sale rules. If you had IVV, VOO, and SPY, could you buy and sell these. So suppose the S&P 500 drops 3%. So you sell the IVV for a loss, then...

I'm not sure this answers your question exactly, but look into the stock's "beta". The beta tells you how much an individual stock typically moves in relation to the overall market. A stock with a beta higher than 1 will move more than the market... it has exaggerated moves. A stock with a...

Hello, I was looking at rates for interest accounts and CDs. It seems like Goldman Sachs' Marcus has good rates and low minimum cash requirements on both: https://www.bankrate.com/banking/savings/rates/ I was thinking you could use that to park trading money until you had a stock you wanted...

I am waiting for the desktop version. It seems like it would be confusing to manage a trading portfolio on a phone screen. Have you found it difficult to manage all of your positions on a small phone screen? The greatest value of free trading is you can take small positions without getting...