Return on investment (ROI) refers to a metric that measures profit or loss generated by an investment in relation to the invested funds and is expressed as a percentage. As the most common profitability metric, it helps to evaluate the performance of a company relative to the invested money. It’s important to understand that profit […]
A Roth IRA is a retirement account funded by a taxpayer using his or her post tax-income. The plan has several similarities to the traditional IRA. In the traditional IRA, contributions are made with pre-tax dollars which means an individual will pay income-tax when they withdraw the money from the account during retirement. When it […]
A Traditional IRA is a retirement account where individuals are allowed to contribute pre-tax income which grows tax-deferred. No dividend-income is deducted by the IRS until the amount is withdrawn by the account holder once they attain the age of 59 ½ years. Traditional-IRA accounts are overseen by select custodians who include retail brokers and […]
This is an employer sponsored retirement plan that is eligible to employees where they can make salary reduction contributions on a pre-tax or post-tax basis. The 401k plan allows employees to save and invest part of the income before taxes are deducted. Employers who offer the plan to their employees can choose to match individual […]
This refers to a private forum designed for trade securities where investors have the chance of placing big orders and completing trades without the need of publicly advertising one’s intention. Also referred to as dark pool of liquidity, they are utilized by investors for block trading especially where a large number of financial instruments are […]
This is the projected price of a financial instrument as provided by an analyst and when it’s achieved, the trader is able to attain the best possible outcome from an investment. In other words, it is the price at which a trader or investor exits a trading position finally achieving his or her reward. It […]
What is a Strike Price? Strike Price is the option price set on a derivative contract. It is often used in index and stock options, where the strike is listed precisely in the contract. Strike price is where security can be purchased during call options. Conversely, it is also the amount at which security can […]
The stochastic oscillator is a momentum indicator that helps to show the current location of a security closing price relative to its high/low range. As a range bound momentum, it’s used for three things: a. Identifying overbought and oversold levels b. Spotting divergences c. Identifying bull or bear signals One thing you need to […]
This refers to an advanced charting study used to show trading activity spanning a particular trading and price levels. Also referred to as volume by price, it helps to display the amount of volume occurring at certain price levels and range as opposed to most volume indicators that display volume based on a certain time […]
What is a Channel pattern? It is described as a price movement which utilizes support and resistance to validate what will happen in the future. As a form of trading, it capitalizes on the market tendencies to trend. This is one of the most powerful trading tools that combines different technical analysis indicators finally […]
