Penny stocks are the most peculiar asset class that beginners get drawn to. At the same time as having immense benefits: least competitive, highly volatile, and daily runners, they also have huge drawbacks: they’re the riskiest, most of the companies are shoddy, and are often manipulated. The drawbacks of penny stocks are reasons many […]
If you plan to trade, you are going to experience risk. In fact, the reason you can make money trading is that you are taking risks. Risk is the amount of money you could lose if you invest in an asset. Risk is not the actual loss; it is the potential loss you might experience. […]
Brief Overview M1 Finance is a recent entrant into the brokerage world. Targeting Millennials, it brings with it a unique style of investing, combining features of robo investing and self-directed trading. Will M1 Finance be able to shake up the brokerage industry the way Robinhood did? Let’s have a look. Services Offered M1 Finance’s specialty […]
What is a margin call? This is a question we get all the time so we put together this guide on trading with margin and what to do if you get a margin call. Margin Intro Borrowing money is a way of life in our society. Whether you take out a mortgage to buy a […]
If you would like to start trading various financial instruments such as stocks, bonds, commodities, ETFs, and mutual funds, it is important to read the best books on technical analysis. Reading books is one of the best low-cost ways to advance your knowledge of the financial markets. Since most of the technical analysis books that we […]
There are several types of brokerage accounts, but mostly, they are variants of two basic account types: margin account or cash account. Put most straightforward, a cash account requires the client to pay in full for the securities they buy for their account. If they have $500, they can only buy $500 worth of securities […]
An order imbalance is when one side of the trade (buy or sell) meaningfully outweighs the other side. As a consequence of supply and demand, a significant imbalance in one direction is bound to affect the price of that security. Understanding Order Imbalances The NYSE and NASDAQ both disseminate order imbalance information each day on […]
Knowing how to evaluate a stock is a crucial step in developing your investment skills so you know whether you are getting a deal or not! How to Evaluate a Stock Example A share of common stock is a fractional claim of ownership of a company. Because thinking about owning a fraction of Apple or […]
Knowing how to trade options on Robinhood is a great way to get introduced to the options market. Their free commissions makes it cheaper than ever to trade options. Below we’ll dive in to how you can place your first options trade on Robinhood’s platform. Trading Options on Robinhood When Robinhood first entered the […]
What is a Dividend Aristocrats? Dividend Aristocrats is the name used for stocks that are members of the S&P 500 that have increased their dividends every year for the past 25 years. A dividend is a payment made by a company to shareholders of record by a predetermined date of eligibility. Dividends are a way for […]
