What is a Hedge Fund?

Hedge Funds are private capital reserves for investment with the flexibility to buy or sell a wide range of assets. It is basically a name for an investment company. The purpose of a hedge fund is to maximize investor returns and reduce risk, hence the word ‘hedge’. It aims to benefit from market failures rather than relying purely on economic growth for performance. These funds are very illiquid, in particular by limitations on redemption and ceilings for withdrawal.

Key strategies of hedge funds

There is no universal formula, and the types of investment strategies pursued by individual Hedge Funds are extremely diverse.

Technological advancements have contributed a lot to the evolution of the trading landscape. The way stock trading is done today represents a radical shift compared to the bygone era when brokers screamed and made hand gestures on the trading floor.

Majority of trades today take place electronically with the push of a button at both the institutional and the individual level. Billions of dollars exchange hands in cyberspace within milliseconds. In this article, we will look at how stock exchanges have evolved and the manner in which stock trading has progressed from in-person to electronic within a span of a few decades.

A stock portfolio watch list consists of a basket of stocks that investors can watch like a hawk. The watch list provides timely information on different financial securities that can be used in making smart financial decisions.

By creating a stock watch list, you will be able to monitor changes in price every single trading day. You can even receive emails on major price movements and relevant breaking news relating to the stock. The watch list can help you keep up-to-date with the performance of your stock portfolio.

Today around 73 percent of equity trading in the US is being carried out using high-frequency trading. High-frequency trading seems mysterious, and somewhat scary, particularly for beginner investors. The words ‘high frequency’ itself conjures an image of bespectacled individuals in gray suits sitting in front of a large computer screen and engaged in a trading frenzy.

But the reality is far from this.

One of the most common problems traders face when reading technical charts is determining the right profit-taking and stop-loss points. The market ‘noise’ caused due to short-term volatility most often triggers a panic response, due to which traders exit the trade prematurely. By cutting out of winning trades early, they are not able to make the most of the opportunity, and capitalize on a potentially larger return.

Wouldn’t it be great if the technical chart could filter the market noise caused due to price fluctuations allowing you to make optimal trading decisions?

Every active trader looks to maximize investment gains. And one way to achieve this aim is by ensuring that Uncle Sam gets to take a minimum share of the revenues. While there are several strategies you can implement to reduce the tax burden, one effective strategy that not many traders may not know about, is by creating a limited liability company (LLC).

Apart from saving on taxes, there are many other benefits for traders to carry on the investment activities as a registered entity, which we will briefly discuss in this article.

Taxes are always a major factor for traders and investors. Anyone who wants to invest in stocks or futures contracts should take into consideration the primary differences in how these investments are taxed. This guide is going to discuss the main tax benefits of trading futures over stocks.

How are Stocks Taxed?

The tax system used for stock investments is quite simple; you only pay tax on any profits you make. This is known as a capital gains tax, and the rate you pay depends on which tax bracket you fall into. If you fall into the 10% or 15% tax bracket, for example, you would pay 0%.