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 […]
Penny stocks are where a lot of new traders start their career. Tempting day traders with the prospect of significant financial gains and a low cost of entry. Stories of stocks gaining of over 5,000% in just a short time add to their appeal, and advances in trading technologies make it easier than ever […]
The alternative uptick rule is an SEC rule that prevents short sellers from shorting on the bid after a stock is down 10% in a day. Once the restriction is in place, short sales cannot occur above the national best bid price for the stock. In other words, short sales must be executed on […]
On June 23, a new rule was published that could put an end to the short squeeze madness we’ve seen throughout 2021. The rule essentially allows the NSCC, which is one of the DTCC’s clearing firms, to check if a broker-dealer meets capital requirements more frequently. To understand why this rule change matters, and […]
Just like mid and large cap stocks, there is no limit to how high a penny stock can go. Many massive, well-established companies were once trading for less than $5 per share. Some of these companies include Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Ford (NYSE: F), General Motors (NYSE: GM) and Advanced Micro Devices […]
Thanks to technological advances, actively trading stocks is now easier than ever. Most brokerage firms allow day traders to trade stocks via internet, telephone and even on your smartphone. However, while the process of buying and selling stocks is easy, you may still be locked out of trading or miss a wonderful opportunity because […]
The Wall Street hype machine is once again cranking at maximum RPM following the Dingdong IPO announcement. Dingdong, a company that offers fresh produce and grocery deliveries through a mobile app in China, raised $95.7 million when it priced its IPO at $23.50 per share ADS on Monday, June 28. The company gained a […]
If you are an active day trader, you are probably aware that Fibonacci retracement and extension levels are some of the most important and useful tools in all of price action. Day traders and technical analysts can use Fibonacci levels analysis to confirm an entry-level, target a take profit, and to determine your stop […]
Investment factors are a set of quantitative criteria used to explain investment returns. The idea is that some baskets of securities that have similar criteria might deliver superior risk-adjusted returns. At its simplest, an investment factor is a characteristic of a security that is associated with superior risk-adjusted returns. That could be a low […]
