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 […]
What makes a trade great? Is it the rate of return, superior timing, ability to think differently? In my opinion, a great trade is when a trader identifies an opportunity with an asymmetric reward/risk ratio, follows their personal trading principles to a tee, and is able to size up on the trade to hit that […]
The pattern day trader rule, often referred to as the PDT rule, is one of the most misunderstood stock market terms amongst many beginner traders. This rule was established in 2001 by the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC). Today, we are going to focus on the […]
Best Time of Day to Buy Stocks – Overview of the trading day In terms of trading, many people want to know: When is the best time of day to buy stocks? Certain hours offer the maximum opportunity for trading during the day. Trading at those times can help traders capitalize on better than normal […]
What Is An Earnings Report? Each publicly traded company is required to file a quarterly earnings report each fiscal quarter. This report is what you hear referred to as an ‘earnings report’ in financial media and in conversations among traders. However, an earnings report tells you a lot more than just the earnings (income after […]
What Are Tick Charts? Tick charts create a new bar every time a set amount of transactions are executed, unlike a time-based chart, which creates a new bar based on a fixed time interval. Many traders find these charts to be an effective way to reduce market noise, as each bar is created equal, with […]
Shortly after Robinhood became the first U.S. brokerage firm to offer commission free trades to its users six years ago, analysts began predicting that it was only a matter of time before other brokers followed suit by eliminating or lowering some of the commissions they charge. Robinhood promised $0 trades and high-quality features on its […]
Tech stocks continue to face a period of increased volatility this year after almost a decade of taking the lead in market expansion since March 2009. Concerns regarding increased regulatory pressure, inflated stock valuations, and a downturn in the once-hot chip industry as well as slowing corporate earnings growth have dragged numerous technology stocks into […]
