Most people associate “insider trading” with secret tips and federal agents busting into a dirty hedge fund like Showtime’s Billions. That’s insider trading based on material non-public information (MNPI). We will cover the illegal side briefly, but today’s article is mainly about the legal open market activities of company insiders. When an “insider” of […]
If you have noticed that the number of option contracts you own on a stock that has recently split has changed, don’t panic. When a stock splits, due to a corporate action, several components of an option contract can change to make you whole. Recently both Apple and Tesla announced stock splits which have […]
Failing to prepare is preparing to fail . . . Building a watchlist of tickers that you’re interested in trading for the day is an essential part of a profitable trading process. A watchlist is simply a short-list of stocks that meet or might meet your criteria for a profitable trading setup. While your […]
If you have a 401k at work, you can still have your own Individual Retirement Account. The Roth IRA in particular has several distinct advantages (but disadvantages, too) compared to the workplace plan. Lets compare the Roth IRA vs 401k and see what the differences are. Roth IRA Overview As the name implies, the […]
One of the most effective setups for profitable trading opportunities is the rising wedge pattern. Wedges form as a stock’s price movements tighten between two sloping trend lines that are drawn like a triangle. Many day traders are probably already familiar with rising wedge patterns (opposite of falling wedge patterns) as they are quite common […]
Inflation can be a good or bad thing depending on your perspective. However, knowing how to profit from inflation is a great way to protect your money and even increase your wealth. What is Inflation? Inflation occurs when goods and services rise, making them more expensive relative to the amount of money you make. […]
What is Chaikin Oscillator? The Chaikin Oscillator (CO), also called the Chaikin Indicator, is used by traders analyze the strength of a price trend based on trading volume. This oscillator is represented by charts: a divergence between this indicator and the price trend shows that most traders have less faith in the current price trend […]
We all like to make fun of the unfulfilled predictions of meteorologists, but perhaps the trading community should hold back its ire since weather prognosticators and day traders employ some similar methods. Like day traders, meteorologists are constantly looking for patterns and signals that imply a change is about to occur. Anyone can look […]
Different order types are among the most boring stock market subjects, mostly the focus of a small sect of high-frequency trading enthusiasts and opponents. But the discussion of stock market orders shouldn’t be about the orders themselves, but framed in a discussion about trade planning. Planning your trades has a significant material effect on […]
Apple (AAPL) just announced that the company is performing a 4-for-1 stock split to occur at market close on August 24th, 2020. This means that Apple shareholders will receive four shares for each share they own. For example, suppose the stock split were to happen today when the stock is trading at about $430. For […]
