If you are an active day trader, you are probably aware that Fibonacci retracement and extension levels are some of the most important and useful tools in all of price action. Day traders and technical analysts can use Fibonacci levels analysis to confirm an entry-level, target a take profit, and to determine your stop […]
Investment factors are a set of quantitative criteria used to explain investment returns. The idea is that some baskets of securities that have similar criteria might deliver superior risk-adjusted returns. At its simplest, an investment factor is a characteristic of a security that is associated with superior risk-adjusted returns. That could be a low […]
Outright speculation on future volatility is a pretty new phenomenon in financial markets. The mathematization of derivatives markets made traders realize that they’re primarily making bets on future volatility more so than price, which encouraged Wall Street to create more “pure play” products. The primary volatility products in US markets are VIX futures/options, and […]
Reddit did it again. You can’t be blamed for thinking that the short squeezes in January 2021 were a complete anomaly, not to be repeated. Market pundits have plenty of explanations for why, but it happened again. Last time, the main event was GameStop (GME), and this time it was (is?) AMC Entertainment (AMC). […]
Browse through any major finance website, and you will likely see a post about “cult stocks.” If you are new to stock trading, this might be very confusing. Are they talking about a company engaging in evil activities? Well, the reality is much simpler. The term cult stocks refers to stocks that enjoy a […]
The Money Flow Index (MFI) is a modified RSI indicator with an additional volume component. Put simply, think of the MFI as RSI that accounts for volume divergences. The Money Flow Index (MFI) is a prevalent indicator used by investors and day traders alike. It is one example of a classification of indicators in […]
You may have heard stock traders discussing “LUPA” stocks. But what are they? LUPA is a relatively new acronym that refers to four high-profile tech companies that have made their public debuts in recent years: Lyft Inc Uber Technologies Inc Pinterest Inc Airbnb Inc Take the first letter of each stock and you get […]
If you’re new to the trading world, you might hear traders say that a stock is “thinly traded” in conversation and get a bit confused. No worries, because you’ll come to see that us traders come up with loads of jargon for the simplest of concepts and most of the time there’s no complex […]
Day traders use technical analysis indicators out of absolute necessity. It would be incredibly difficult to make profits consistently on fast time frames by just relying on fundamental data. As a trader, it is mandatory to use tools that show market data and price action to help you form decisions. But what is technical […]
Stocks that trade under $5 per share are considered cheap stocks. However, unlike stocks under $20 or stocks under $10, stocks under $5 are placed in a different category by the U.S. Securities and Exchange Commission (SEC). According to the SEC, any stock trading under $5 per share whether it is listed on an exchange or trading through pink […]
