When trading stocks on a brokerage platform, there are a variety of stock order types you can use. Some order types are executed immediately, while others can only be executed at a specific price or time. It is therefore very important to familiarize yourself with the most popular types of stock orders and how […]
So what’s the difference with large cap vs small cap stocks? Quite a bit actually! In this article, we will help shed light on market capitalization, differences between large and small cap stocks, and things to consider when trading both types. What is Market Cap? Market cap is a measure of a company’s value […]
An iceberg order is an order type that allows you to conceal the true size of your order. These orders are increasingly common in today’s market as almost everyone has access to them. The idea is that instead of displaying your entire order (which might have a significant market impact), you display a comparatively […]
The immediate or cancel order is an order type with instructions to fill the order immediately and any part that isn’t will be canceled. Immediate-or-cancel orders instruct your broker to fill your order immediately or cancel the order. It’s a liquidity-removing order duration preference similar to the “fill-or-kill order,” the only difference being that […]
You ever wonder why there are giant spikes of volume during the last minute of trading but little price change? That’s the closing auction and is the period of highest liquidity during the stock market session mainly because of the market on closer order. It’s where most investment funds, end-of-day algorithmic traders, and index […]
Day traders usually focus on maximining their trading profits, and moving averages are one of the technical analysis tools some of them use to achieve that goal. Moving averages are applied to help determine trend direction, strength, and to find entry and exit points. They can also be used with other indicators to create […]
Macroeconomic indicators give you a big picture on the health of the economy, but why is that important and how can you use them? Below we’ll look at some peculiar macroeconomic indicators in different industries that help gauge market strengths and weaknesses. The Texas Ratio The Texas Ratio is a quick and dirty accounting ratio […]
When it comes to trading stocks, it is important that traders know how to use indicators to enter and exit trades. One key chart indicator, which day traders use to determine where stability lies, is the Moving Average (MA). Moving averages are popular among day traders, investors and technical analysts around the globe. These […]
Most day traders prefer to use candlestick charts for their analysis, but most have not heard of the Heikin Ashi candlesticks. Heikin Ashi candlesticks have recently gained popularity by day traders to identify a given trend more easily. They look pretty similar to Japanese candlesticks at the first glance, but there are still some […]
In his recently released book Unknown Market Wizards, Jack Schwager gave an excellent definition of the breakout trade: “A breakout is a price movement above or below a prior trading range (sideways movement in prices) or consolidation pattern (e.g., triangle, flag, etc.). The underlying concept is that the ability of prices to move beyond […]
