Intrinsic Value
Intrinsic value is also used in options pricing to determine how in-the-money an option is or how much profit currently exists. For review, an options contract grants the buyer the right, but not the commitment, to buy or sell the underlying security at a preset price called the strike price. Options have expiration dates at […]
Ichimoku Cloud Trading Strategy
Ichimoku trading strategy is one of the most reliable strategies. One glance equilibrium chart or with the original name in Japanese “Ichimoku Kinko Hyo” is my all-time favorite trading strategy. There is a Japanese saying: “Consult the market about the market.” A lot of time we trade not what we see but what we think […]
Market Maker
An independent trader or trading firm that is prepared to buy and sell shares or contracts in a designated market. Market makers must make a two-sided market (bid and ask) in order to facilitate trading. A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell […]
Trading Plan
Learn how to create a successful trading plan and put it into action. With a smart plan, you’ll have guidance on which market to trade, when to take profits, when to cut your losses, and where other opportunities could exist. A trading plan is a comprehensive decision-making tool for your trading activity. It helps you […]
Trend Indicators
The core concept of technical analysis is to trade with the trend. If your trend indicators tell you the security is trending upward, buy it. When it stops trending upward, sell it. If you don’t know what’s going on, don’t trade. Don’t fall into the value trap — that a high-quality security will come back […]
Technical Analysis
Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories. Many investors analyze stocks based on […]
Options
Options trading may seem overwhelming, but they’re easy to understand if you know a few key points. Investor portfolios are usually constructed with several asset classes. These may be stocks, bonds, ETFs, and even mutual funds. Options are another asset class, and when used correctly, they offer many advantages that trading stocks and ETFs alone […]
Futures
What Is a Futures Contract? A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. The buyer of a futures contract is […]
Dead Cat Bounce
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Stock Market Cycle
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