The SEC just disrupted a niche corner of the stock market and their involvement could potentially lock retail investors out of areas of significant opportunity. To put it shortly, the SEC is not allowing broker-dealers to quote non-reporting or “dark” companies. In other words, if a company doesn’t report timely financial statements and reports […]
Technical analysis is a key component of the stock market on a number of scales. Traders can use it to pick good stocks to trade and to predict and forecast future stock prices. It can also be used to identify entry and exit points which enables good returns. In this blog post, you are […]
What is a Measured Move? A measured move is a swing trading concept that assumes the next leg of a chart pattern or trend will be roughly equal to the previous leg. You use measured moves to set your profit targets and project the magnitude of the next price swing. Assuming that the future […]
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 […]
Most of the time when we make a trade, we’re making a pretty specific bet. We buy Apple because we think Apple is going up for whatever reason. It’s a simple bet with one way to win: the price has to go up. With pairs trading, you’re combining two separate bets into one. Let […]
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 […]
It’s tough to know how much leverage is in the market until everyone needs liquidity at the same time. As the 2008 financial crisis and the recent Archaegos blow-up demonstrated, leverage can quietly gather in odd corners of the market. I mean, who would have thought a bunch of media stocks like Viacom or […]
The recent sharp selloff in US markets might be indicative of a broader weakness developing in market breadth. Due to the top index components being so heavily weighted in the indexes, their strength is presenting a potentially misleading picture of how the average stock is performing. How Indexes Work: Why Index Calculation Can Distort […]
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 […]
