An Initial Public Offering, more commonly know as an IPO, is a term used for when a private company issues shares for the first time to the public. Generally companies that are completing an IPO are seeking capital to fund growth initiatives and in return, investors will receive equity in the company with hopes of […]
Margin Account is a type of brokerage account that allows you to buy stock on margin by borrowing money through your broker. Generally there is an application process that has to be approved by the broker to ensure you are eligible for a margin account. For margin accounts, there is an account minimum of $2,000 […]
High Frequency Trading (HFT) is when a trader or institutions utilizes technology and powerful computers to automate trading and execute large orders at very high speeds through the use of algorithms. Their super computers are able to scan the stock market in seconds looking for ideal trading scenarios which gives them a big advantage over retail […]
When opening a brokerage account you have the option to open different types of accounts depending on what you are looking to do. You can open a joint account, individual account, cash account, margin account and many others but the one we are going to talk about today is the cash account. It’s a simple […]
The Stock Market, also known as the equity market, is an auction-based market where shares of public companies trade through exchanges between market participants. It gives public companies the chance to access additional capital by allowing investors to buy shares in return for ownership of the company based on the amount of shares the investor […]
Start Where You Are: A Life Lesson A few years ago, when I was first beginning my journey into day trading, I saw this movie titled, “The Pursuit of Happiness”. I am sure we all have seen or heard of that movie so I won’t spend much time talking about it but just for reference […]
The alligator indicator was first introduced by Bill Williams in the 1990s with the idea that markets trend a small portion of the time while remaining in a sideways range for most of the time. The indicator was developed to give simple buy and sell signals by using three simple moving averages set at five, […]
Option chains are used for quoting options via a list of the available strike prices and expiration’s for the underlying security. In the example below we have an Apple ($AAPL) option chain for the January 20, 2017 expiration. On the left side are all of the option calls, in the center is the strike […]
So you just opened your new trading account and the first thing you see when you sign in is your buying power, but what is buying power? When traders talk about buying power they are talking about how much is available to purchase/short stocks in their account. This can differ depending on what type of […]
When a day trader places a trade they are looking to capitalize on a stocks price movement on the same day they place the trade and are not looking to hold a trade overnight. This is called day trading. So for instance, if a trader buys shares of Facebook ($FB) on Monday, they would have […]
