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, […]
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 […]
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 […]
Browse through any major finance website, and you will likely see a post about “cult stocks.” If you are new to stock trading, this might be very confusing. Are they talking about a company engaging in evil activities? Well, the reality is much simpler. The term cult stocks refers to stocks that enjoy a […]
The Money Flow Index (MFI) is a modified RSI indicator with an additional volume component. Put simply, think of the MFI as RSI that accounts for volume divergences. The Money Flow Index (MFI) is a prevalent indicator used by investors and day traders alike. It is one example of a classification of indicators in […]
If you’re new to the trading world, you might hear traders say that a stock is “thinly traded” in conversation and get a bit confused. No worries, because you’ll come to see that us traders come up with loads of jargon for the simplest of concepts and most of the time there’s no complex […]
Day traders use technical analysis indicators out of absolute necessity. It would be incredibly difficult to make profits consistently on fast time frames by just relying on fundamental data. As a trader, it is mandatory to use tools that show market data and price action to help you form decisions. But what is technical […]
Profitable day trading isn’t easy. You need to be precise with your timing, execution, and exits, or else you’ll get chopped up by paying the bid/ask spread and commissions. In trading books, much of the focus is put on your entry price. Should you enter on a pullback, wait for a moving average crossover, […]
Day Trading With Webull Webull is an online brokerage founded in 2017 by Wang Anquan, an alum of Chinese smartphone maker Xiaomi and e-commerce giant Alibaba (BABA). It is regulated by both the FINRA and the U.S. Securities and Exchange Commission (SEC) so traders should feel comfortable trusting them with your money. The mobile-focused brokerage […]
