Options and futures contracts are both derivatives, created mostly for hedging purposes. In practice, their applications are quite different though. The key difference between them is that futures obligate each party to buy or sell, while options give the holder the right (not the obligation) to buy or sell. Options Example Jim thinks he might […]
Inside Look: Options vs Stocks When you buy a stock, you’re buying a piece of ownership in that company. As long as a company exists, that share of stock doesn’t expire. When you buy an option, you’re buying the right to buy or sell a stock (or another asset) at a specified price within a […]
Stock Analyst Ratings A stock rating is a measure of the expected performance of a stock in a given time period. Analysts and brokerage firms often use ratings when issuing stock recommendations to stock traders. Analysts arrive at stock ratings after researching public financial statements of various companies, talking to executives and customers, or listening in […]
Anyone who has followed the markets has probably come across the expression of being bullish or bearish. But what does that mean? Is one better than the other and how do you determine the difference? Bullish vs bearish viewpoints are dramatically different so make sure to read on to further understand these important concepts. Bullish […]
What Is A Parabolic Stock? The term “parabolic move” came about as trader slang. It refers to when a stock makes an upward price move that looks like the right side of a parabolic curve: A parabolic move occurs when the speed at which the stock’s price goes up increases exponentially. In other words, a […]
Table of contents What is Position Sizing? Why Position Sizing Might Be The Key to Your Success Determining Your Risk Per Trade The Importance of Stop Placement What is Position Sizing? Position sizing refers to the parameters that dictate how much capital you allocate to a given trade, and how that relates to the […]
What is Payment for Order Flow? Payment for order flow is when a third-party firm (usually a high-frequency trading firm) compensates a brokerage firm for first-access to their order flow. For example, you enter an order to buy 100 shares of Apple stock in your TD Ameritrade account. You might think that order gets routed […]
There are a ton of different swing trading strategies so we decided cover a couple of our favorites that are easy to understand and trade. Intro Swing trading is generally defined as a short-term trade lasting longer than one day and less than a month. While day traders usually look to capture one piece […]
If you are looking to trade or invest in stocks, it is important to have the best stock portfolio tracker to help you find and manage your trades. Since investors often have positions in several stocks at any given time, keeping track of all those stocks (including price movements) can be a daunting task. That […]
Stock Market Crash of 1987 or Black Monday crash was a severe and rapid downturn in stock prices. It occurred in late October 1987 over several days and affected stock markets universally. At the hit on this crash, the Dow Jones Industrial Average (DJIA) tripled more in the prior five years. On Black Monday, October […]
