Day trading has exploded in popularity in recent years but what counts as a day trade and why does it matter? According to the U.S. Securities and Exchange Commission (SEC), day traders rapidly buy, sell and, short-sell stocks throughout the day with the hope that the stocks will continue climbing or falling in value […]
It’s tough to know how much leverage is in the market until everyone needs liquidity at the same time. As the 2008 financial crisis and the recent Archaegos blow-up demonstrated, leverage can quietly gather in odd corners of the market. I mean, who would have thought a bunch of media stocks like Viacom or […]
The recent sharp selloff in US markets might be indicative of a broader weakness developing in market breadth. Due to the top index components being so heavily weighted in the indexes, their strength is presenting a potentially misleading picture of how the average stock is performing. How Indexes Work: Why Index Calculation Can Distort […]
When day trading stocks or other securities in a cash account, it is important to know the rules to avoid possible violations. This includes a Good Faith Violation. Before making your first day trade, you’ll need to decide whether you plan to trade on a margin basis or in a cash account. Today, we […]
Penny stocks have been around for a long time but are penny stocks a good long-term investment? In the movie “The Wolf of Wall Street”, con artist Jordan Belford gets his start selling worthless stocks to unsuspecting retirees. Often sold on promises of large potential gains, most of these equities were known as ‘dirt […]
Robinhood IPO is just around the corner. Here’s everything you need to know. Robinhood IPO: Quick Facts Ticker: HOOD Offering date (date of first trading): on or about Thursday, July 29, 2021, according to Renaissance Capital Listing method: Traditional IPO Exchange: Nasdaq Global Select Market Offer price: Shares are expected to be priced between $38 […]
Penny stocks are high risk mainly due to the lack of liquidity and company information as well as the high volatility associated with lower priced stocks. Many day traders looking to make money in the stock market prefer to buy low-priced stocks. This is because they offer higher than normal returns. Penny stocks can […]
If you’re a day trader that doesn’t mind some risk, you may find yourself interested in penny stocks. These stocks have the potential for huge returns but they come with a lot of risks. One of the reasons why they are considered risky investments is because, in most cases, they are traded in over-the-counter (OTC) […]
Backtesting is testing trading strategies against historical data. It serves as a research tool for traders and analysts to stress test their current strategies, find new strategies, or find which factor contributes the most to a strategy’s success. Most backtesting is done with code, using libraries from languages like Python and R and hence, […]
Many traders check the daily gainers & losers list in their screener and find an overhyped penny stock that could be a favorable short-selling opportunity. But when they go to short the stock, their broker frustratingly stops them in their tracks, leaving the trader asking “why can’t I short some penny stocks?” The short […]
