Day traders need volatility in the markets but what happens when volatility becomes too much and what triggers a volatility halt? Earlier this year, we witnessed extreme volatility in “meme stocks” such as GameStop ($GME) and movie chain AMC Entertainment Holdings ($AMC) which triggered trading halts. Several other once-sleepy stocks like Bed Bath and Beyond ($BBBY) and Koss […]
For beginner and experienced day traders seeking to sharpen their skills, a day trading simulator can be an invaluable tool. Trading simulators allow traders to practice trading using virtual currency. This allows you to gain experience without risking your hard-earned cash while also learning to minimize losses. This guide focuses on trading simulators. It looks […]
Day trading has exploded in popularity in recent years but what counts as a day trade and why does it matter? According to the U.S. Securities and Exchange Commission (SEC), day traders rapidly buy, sell and, short-sell stocks throughout the day with the hope that the stocks will continue climbing or falling in value […]
When day trading stocks or other securities in a cash account, it is important to know the rules to avoid possible violations. This includes a Good Faith Violation. Before making your first day trade, you’ll need to decide whether you plan to trade on a margin basis or in a cash account. Today, we […]
Penny stocks are high risk mainly due to the lack of liquidity and company information as well as the high volatility associated with lower priced stocks. Many day traders looking to make money in the stock market prefer to buy low-priced stocks. This is because they offer higher than normal returns. Penny stocks can […]
If you’re a day trader that doesn’t mind some risk, you may find yourself interested in penny stocks. These stocks have the potential for huge returns but they come with a lot of risks. One of the reasons why they are considered risky investments is because, in most cases, they are traded in over-the-counter (OTC) […]
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, […]
Many traders check the daily gainers & losers list in their screener and find an overhyped penny stock that could be a favorable short-selling opportunity. But when they go to short the stock, their broker frustratingly stops them in their tracks, leaving the trader asking “why can’t I short some penny stocks?” The short […]
Penny stocks are where a lot of new traders start their career. Tempting day traders with the prospect of significant financial gains and a low cost of entry. Stories of stocks gaining of over 5,000% in just a short time add to their appeal, and advances in trading technologies make it easier than ever […]
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 […]
