Trading concepts

AMC investors have been talking about dark pool activity recently as trading volume seems elevated. Dark pool dealing has an impact on AMC stock, according to Wall Street Memes. In recent years, dark pools have grown to become a major element of the global equity...

In light of the ongoing coronavirus pandemic, most people are refocusing their energies on physical and mental health, relationships with family and loved ones, and improving our skill sets and self-improvement. Let's deep dive into consolidating stock in this...

Regardless of whether you are not a stock merchant, you presumably realize that the financial exchange doesn't open all week long, which can restrict the amount of days one can exchange during a year.  Considering that, you might think about the quantity of...

If I have to name a single tool that is absolutely imperative for a trader's success, it would be a stop-loss order. A stop-loss (abbreviated as SL) order is a crucial part of a trader's exit plan when the market goes against expectations.  How stop-loss orders are...

The strategy of scalping, or trading on the short side, has been around for a very long time. This trading method involves buying and selling stocks multiple times within a day for a small profit. A trader usually does this once he has made a profit from a trade....

The act of purchasing securities based on rumors, and then selling them once news breaks, may seem risky, but it can also be a smart move. Most markets, particularly financial markets, operate on the principle of buying the rumor and selling the news. You can turn the...

What is Zero Sum Game? This is a condition in a game theory where the loss incurred by an individual is equal to the gain of another individual. Therefore, the net change in wealth is equal to zero. A zero-sum game can have as little as two players participating or as...

If we have to define the stock market using just one word, we would most probably define it as “volatile.” The world of stock markets is full of uncertainties. Although we conduct detailed technical and fundamental analysis, we cannot tell when the market will...

What is a Falling Knife? A falling knife is used to refer to a rapid drop in the price of security such as a stock. In such cases, it is advisable for traders to patiently wait for the price to attain the lowest point before buying it again. Is catching a falling...

What is Yield Curve? A yield curve is also known as a structure of interest rates. The Yield Curve is a graphical representation of current conditions in a certain fixed-income bond market. It is a captured image of interest rates in the market. It is a basic yet...

What is Wall Street? Wall Street is a street that you can find in the lower Manhattan part of New York City. It has historically been the headquarters of some of the U.S. largest investment banks and brokerages. As well as the home to the New York Stock Exchange. Find...

What is Interest Coverage Ratio? Interest coverage ratio also known as times interest earned ratio evaluates the ability of an organization to take care of its outstanding debt. It is a type of debt ratio traders and investors use to measure the financial condition of...

Introduction Trading has a special language of its own. For a new trader, words like long, short, bullish and bearish should not be strange to you. You must know what they mean as they are used to describe the state of the market. Long: this is a trading term for...

What is a Choppy Market? This is a market lacking any clear trend. Orderly markets trend upward and downward, providing traders with the chance to place their bets. There is no noticeable pattern to the movement that occurs in a choppy market. The adjustment happens...

Swing Trading Swing trading is dependent on finding out swings in stocks, commodities, and currencies that occur over a period of days. A swing trade can span from a few days to a few weeks to get executed. As opposed to a day trader, a swing trader would probably not...

What Is Short Covering? Short covering is also known as buying to cover. It takes place when an investor purchases shares of stock so as to close out an open short position. As soon as the investor buys the amount of shares that he or she sold short and gives back...

What Is Time In Force? Time in force is a unique instruction used when setting a trade. It shows the period an order will stay active before it is completed or terminated. These alternatives are definitely crucial for active traders and enables them to be very precise...

What Is Mean Reversion? Mean reversion, or reversion to the mean, is a term used in finance. It indicates that asset price volatility and historical returns eventually will go back to the long-run mean or average mark of the whole dataset. What is mean reversion in...

Introduction There's a possibility that you have heard a financial news reporter utter something along the lines of: The central bank governor came out slightly hawkish today after bouts of strong economic data The terms Hawkish and Dovish refer to whether central...

The Internet is flooded with individuals claiming to be knowledgeable about ways to becoming a “successful trader” and making a “secondary income”.  Almost everywhere you turn to, there is an Ad that would in a way assure you that it is achievable to make a lot of...

Dividend payment attracts positive public sentiment and more and more investors begin to take interest in its shares.The company loses its cash in hand by paying dividends and hence its overall price gets reduced. Dividends are a part of profits that a company earns...

What is a Delta? This is the ratio that compares change in price of a derivative to the change in price of the underlying assets. It is equally known as the age ratio. Delta is a risk sensitive guideline adopted in testing derivatives. It is one of the numerous...

What is Opening Range? The opening range is basically the high and low price after a market opens. This period is usually the very first 30 minutes or 60 minutes of trading. During this time frame, you must try to discover the high and low of the day. Additionally,...

Stock investors can be paid to own stock.Dividends are a way for company to share a part of their profits with their shareholders.There are many reasons for companies to pay dividends and not to pay dividends and each company can decide. Dividends are a part of...

Dual listing, also known as cross-listing or multiple listing, is a phenomenon where a company seeks to list its stock on different stock exchanges. The dual listing requires companies to meet certain legal and regulatory requirements and deposit fees. Dual listing...

There are multiple reasons for fluctuations in stock prices.Those reasons include fundamental factors, technical factors, supply and demand, and market sentiment. Share price variation is a common phenomenon in stock markets and every one of us is aware of it. Stock...

A stock can see its price go to zero.Traders can profit from prices rising or dropping.Traders can loose more than their initial investment in some cases. Everyone who wants to enter the arena of the stock market must know that the games played in this arena are...

There is no trading strategy in the world that guarantees us success every time. No matter how careful and vigilant we are in our trading, there are things that are out of our control. If we carefully analyze a company and follow market trends, we cannot claim to be...

Losses are inevitable in trading and no trader not even the most successful traders can make 100% winning trades. That is why risk management is paramount to keep manage risks carefully.  Trading is a very risky game that requires you to be disciplined in each...

Professional traders do not consider trading as a hobby. When you take trading as a business, you develop a proper plan that becomes your stair to reach heights of success. Also, you prepare yourself for the uncertainty, risks, losses, and stress. We often find...

Do you want to learn what is copy trading? Or, how does copying work? Then you are on the right platform because we are going to learn all about copying in this article. In a hurry? Just want to start copy trading now?Click here to start copytrading right now on...

How do you measure and track your trading performance? What is the best yardstick that can help you track trade performance? And, how do you know how good you are as a trader?  Good? Better? Best? Mediocre? Or bad? Monitoring trade performance is an important...

Perhaps everyone familiar with the world of trading is curious about one thing. How much do day traders make? Questions about returns for day traders often arise. But, it is next to impossible to answer those questions. A very few day traders disclose their income....

Once Lawrence J. Peters said, “If you don't know where you are going, you will probably end up somewhere else.” That is the importance of goals in the simplest words. People with vague vision never reach their destinations. They don't get up every morning with a...

Do you know what stats say about the people who set on the journey to becoming stock market or Forex traders? Only 10% of those taste success in the stock market trading and make money. The other 80% lose their money and the remaining 10% achieve break even. That is...

Whenever you make a trade, you always ask yourself why it is a good idea. Fundamental analysis answers questions arising in your mind. Fundamental analysis is one of the two key stock analysis techniques. The second one is technical analysis. Both require great tools...

People from all across the globe consider trading as a high barrier-to-entry profession. They often ask questions like “why should I trade?” “why trading is important?” or “is trading really worth it?” Don't be anxious and overthink. If you have enough ambition and...

Technical analysis or TA is the study of the past movements of financial markets and securities including price and volume.Fundamental analysis focuses on figuring out the true value of stocks.Fundamental Analysis vs Technical Analysis has several similiarities and...

Behavioral finance is a sub-field of behavioral economics.It is built on the assumption humans are not rational individuals.It also propounds that psychological influences and biases can cause market anomalies and stock market anomalies in particular. The phrase...

Before you enter the complicated world of investing and trading, it is crucial to understand the difference between investing and trading. Which is better for you, investing or trading. And, which is more profitable investing or trading.  Investment means buying...

Technical analysis and trading gurus always advise to main discipline to be a successful trader. But, it is very difficult and sometimes seems impossible to main discipline when you are trading. Here, a proven trading strategy comes into the mix of things. A...

Let's set the stage of trading plan with 2 quotes: By failing to prepare, you prepare to fail.Benjamin Franklin and Give me six hours to chop down a tree and I will spend the first four sharpening the axe.Abraham Lincoln That is the importance of planning. Without...

There is a long list of stocks, mutual funds, and exchange-traded funds to pick for trading and investing. Understanding how to pick stocks is absolutely imperative to any trader or investor's success. We have put together an easy, complete, and step-by-step guide for...

Trading is often viewed as an activity of complete freedom.But to succeed, every trader must set rules he is willing to follow.Rules help traders manage their emotions and relieves them from excessive stress. Financial trading is not just about numbers, figures, and...

For you trading to get better, you have to keep track of what you do. That's what your journal is all about.It lets you keep track of what you learn, what you do, your trades, your emotions and your errors.Keeping track and then reviewing it will help your trading to...

Most people all across the globe have a perception that trading is gambling. There are also many others who think the opposite, trading is not gambling. So, what is the reality? Is trading really gambling? Has it some similarities with gambling? Or, it isn't gambling...

Cycles are are patterns which repeat (in the market, business or in other contexts).Market cycles often have 4 phases.Identifying the current phase of the cycle can be close to impossible.Assets behave differently at the different phases of the market cycle. Even...

Trailing stop helps trader secure their trade automatically when it moves in their favor.It can let traders book profit or mitigate risk if the price reverses.Trailing stop only moves in one direction as price progresses.It can be set as a percentage of price or a...

Multiple types of orders exist and can be used to best suit your trading strategy.A market order buys or sells shares at the available price until all the order is filled.A limit order buys or sells shares at a fixed given price. There is no guarantee it'll be fully...

The Sector Rotation Strategy assumes investors invest cyclically their funds in predictable industries.This theory is used by traders to anticipate investments & divestment and thus profit for price variations.It links market cycle to economic cycles. Sector...

The Risk/Reward ratio is a measure of the potential profit potential of trade compared to its risk.It a very important metric used by traders to manage their risk on each trade they consider.With win rate it helps estimate how profitable a strategy is. There are many...

The Dow theory is a financial theory stating the market is in an upward trend if all its averages are in sync.For example, the industrials average should move coherently to the transportation average. The Dow Theory is one of the oldest theories of technical analysis...