Options are a financial derivative that trade based on the price action of the underlying asset and are bought and sold in units called contracts, which usually represent 100 shares per contract of the underlying. Options come in two different types: calls and puts. Traders can choose to buy (option holder) a call/put long or sell […]
Patience Pays in Day Trading Everyone has heard the statement “Patience is a virtue.” Well, I am here to attest to the truth behind the saying while day trading the markets. Day trading requires an extreme amount of focus while making important decisions that often occur in split seconds. Simultaneous analysis of Market conditions, charts, […]
New traders have a lot of things going through their head. Some are necessities, but most of it is noise. Because of this, it is easy to forget about the those things that can cause a trader to be unprofitable and inconsistent. Risk management is one of those things; to be more specific, stop losses. […]
The stock market has become more popular than ever but what exactly is a stock and how do they work? What is a Stock? When you buy stock, you are actually buying a small portion of the company and becoming a partial owner or shareholder. This means you have a claim on the company’s […]
The ask price (also known as the offer) represents the lowest price a seller is willing to sell their shares for. The bid price is what represents all the buyers. In the above Level 2 of the QQQ’s you will notice that the ask is on the right hand side and is currently sitting at […]
The bid price represents what buyers are willing to pay for that particular security and the bid size represents how much a trader is willing to buy at that specific price. Above is an example of a Level 2 for the SPY and as you can see the bid price is currently at $224.68 with the […]
An exponential moving average (EMA) is an average price calculation over a specific time period that puts more weight on the most recent price data causing it to react faster to price change. Traders use moving averages on charts to help determine trend, direction, and strength, and are often used as entry and exit […]
The Simple Moving Average (SMA) is a popular moving average that takes an average price calculation over a specific time period. Intro Moving averages (MA) are popular among technical analysts, investors and day traders around the globe. MAs collect the closing price of a given stock for a specified period of time, normally over a […]
Traders who are short selling a stock are selling shares and creating a negative share balance in their account. This means that when they are holding a short, their position will show them holding -1,000 shares. As soon as they sell the shares, they are bringing in money from the sale. But they must buy […]
Every stock has a float, which is the number of outstanding shares available to trade in a stock minus the restricted shares or shares held by insiders and employees. More simply, it is the number of shares that are free to trade in the open market. Restricted shares are shares that are held by […]
