myTGS.io BLOG

Tax-Loss Harvesting

Nov 13, 2023 |

Tax-loss harvesting is an investment strategy that can be particularly advantageous for investors looking to minimize their tax bill. It operates under the principle that capital losses can be used to offset capital gains. This strategy can be especially relevant for investors who have realized significant capital gains throughout the year and who could face a substantial tax hit as a result. Here’s a closer look at the strategy:

Ratio Charts

Nov 13, 2023 |

Ratio charts are a type of charting technique that compares the relative performance of two assets or indices. Instead of plotting the price of a single asset, ratio charts plot the ratio of one asset to another over time.

Accumulation and Distribution

Nov 13, 2023 |

Accumulation occurs when a trader or investor is gradually buying a particular asset over time, often at lower prices. This process is usually done by institutional investors or larger market participants who have the ability to accumulate significant positions without significantly affecting the market price. The goal of accumulation is to build a large position in the asset at a favorable price before the price potentially rises.

Hedging

Nov 13, 2023 |

Hedging is a risk management strategy that involves taking an offsetting position to protect against potential losses in an existing position. The purpose of hedging is to reduce or mitigate the impact of adverse price movements or market volatility.

Trading Psychology

Nov 13, 2023 |

Trading psychology plays a crucial role in the success of traders in financial markets. Understanding and managing emotions is essential to make rational decisions and avoid common pitfalls.

Overtrading

Nov 13, 2023 |

Overtrading can be detrimental to traders and investors as it often leads to poor decision-making and unnecessary risks.

Put/Call Ratio

Nov 13, 2023 |

The put/call ratio is a ratio that compares the trading volume of put options to call options in a given market or security. Put options give the holder the right, but not the obligation, to sell a specified asset at a predetermined price (the strike price) within a specific time period. On the other hand, call options give the holder the right, but not the obligation, to buy a specified asset at a predetermined price within a specific time period.