In his recently released book Unknown Market Wizards, Jack Schwager gave an excellent definition of the breakout trade: “A breakout is a price movement above or below a prior trading range (sideways movement in prices) or consolidation pattern (e.g., triangle, flag, etc.). The underlying concept is that the ability of prices to move beyond […]
Japanese candlestick chart patterns are a way to read and interpret the price of financial instruments. Over the last few decades, traders have been using them to make trading decisions and predict the short-term direction of the price of market instruments. Candlesticks are believed to have been invented in the 1700s by Japanese rice trader called Munehisa […]
Candlestick patterns are representations of market data. They give a clear picture of market movements and tell us a lot about how buyers and sellers interacted at any given time. In this post, we are going to talk about an important Japanese candlestick pattern called bullish abandoned baby pattern. We will explain what it […]
At a time when many traders are scratching their heads trying to understand how stocks can rise during the biggest economic downturn in nearly a century, it is more important than ever to use candlestick patterns within your own day trading strategy to understand price action. Candlestick patterns tell traders about price trends and the market sentiment. They have […]
Technological advances have made it possible for day traders to trade the financial markets efficiently and securely, much like the big financial institutions. The electronic communications network (ECN), sometimes also referred to as alternative trading system (ATS), is one such facility, a computerized system that matches buy and sell orders for market securities. ECNs are […]
One of the great things about trading is that everyone can have their own unique style. Even if two different trading styles conflict, it doesn’t mean that one strategy is right and one is wrong. With thousands upon thousands of stocks to choose from, there’s always an abundance of effective ways to trade. Technical […]
In this TradeSpoon review we dive deep into their offerings, what we like and dislike and how it compares to other companies. Brief Overview Tradespoon is an online security research platform that uses artificial intelligence and machine learning to find trades. It is the creation of Vlad Karpel, who was in charge of technology at […]
What is Price Discovery Price discovery is the process where buyers and sellers determine where a transaction can take place based on supply and demand. This evaluation process uses the economic concept of supply and demand to find a price where a buyer and a seller agree to trade. The supply and demand for […]
While day trading stocks can potentially lead to big profits, options are an ideal way to control a large chunk of shares without having to put up the funds necessary to own stocks of bigger companies and can actually help protect or hedge your stock investments. This article will prepare you to effectively use […]
You may have heard that trading stock options can be worth a lot of money when used correctly, and it is certainly true. But do you really know how stock options work? Or what a stock option is? Do you know what it mean to exercise options? Do you know the difference between exercising calls […]
