Trading Strategies and Systems
There are some rules that pattern day traders should abide by when day trading on margin.
Circuit breakers are the markets or exchanges established, coordinated strategy for dealing with extraordinary market volatility, specifically extreme market price declines.
Rebalancing is an asset maintenance procedure that involves assessing your investment time horizon, risk tolerance and financial need to determine whether your investment preferences have changed.
Asset diversification is a risk management strategy, involving investing in a combination of assets of different types and levels of risks.
Variable annuities are just one of the two main types of annuities. This article discusses the characteristics of annuities.
Prepaid tuition plans and college savings plans are the two specific types of 529 plans. Read their comparison and learn more about both of them.
Exchange-traded funds have unique features that distinguish them from other investment companies of the open-ended or UIT type.
Equity-indexed annuities are perhaps some of the most complex investment vehicles and as with any other investment, there are risks involved. Therefore, educate yourself well in order to make money out of investing in equity indexed annuities.
This article will provide you with every criterion you need to know and review in order to choose the best allocation strategy for your investing needs.
Investors should be critical of research reports by brokerage firms and financial analysts. This article will discuss the disclosures required from brokerage firms and financial analyst and will teach you how to determine whether a research report is objective or not.
Investors can automate trading on their account. Under such an auto-trading setup, securities transactions are automatically processed and executed by your broker. Learn more about how auto-trading works and what are its pros and cons.
People trade during after-market hours for many reasons. Whatever its benefits, after-hours trading definitely comes with a number of risks and this article will show them to you.
A lot of companies let investors buy stock directly from them through the company’s direct stock purchase plans. In this article you will learn more about the direct stock plans.
Holding a security can be done in three ways - getting a physical certificate, registration in Street Name, and direct registration. In this article we will examine in greater details the direct registration option.
Investors can choose to hold their securities with a physical certificate, street name registration, or direct registration. This article will examine in further details the third option - street name registration.
When it comes to holding securities individual investors have up to three choices - Physical Certificate, Street Name Registration, or Direct Registration. This article will present you the advantages and disadvantages of choosing a physical certificate.
The Securities and Exchange Commission (SEC) enacted some changes in their Order-Handling Rules (OHR) in 1997, which include the Limit Order Display Rule and the Quote Rule.
Investing on margin is a high-risk strategy that can yield huge profits or huge losses if you are not careful. This article will help you better understand buying stock on margin and the risks involved.
Stock market day traders buy and sell stocks via stock exchanges within the same trading day so as to close all positions before the market close of the trading day.
Nowadays trading outside the regular window (also known as after-hours trading) is available to individual investors thanks to smaller exchanges and the rise of Electronic Communications Networks (ECNs).
Two very important dates determine whether you are the one who will receive the next dividend payment and these are the record date and the ex-dividend date.
The selling short strategy is applied if the investor anticipates a fall in the price of a stock. Short interest represents the indicator that stock exchanges keep a close eye on in order to make a view on the activities of short-sellers.
Many people consider insider trading as something extremely bad. However, if addressed wisely even you can extract some benefits.
No expert can say for sure how long the US dollar will continue to fall. Thus, being an educated investor requires you to construct an appropriate strategy to meet the movements of the US dollar.
Once you have acquired an option there are several courses of actions you can take. Here we will examine in more detail the alternative strategies you can use with your options.
If the price of your stock has decreased, then a good strategy may be to apply averaging down. Still, in order to determine the suitability of this investment strategy you should be able to make a distinction between investing in a stock and investing in a company.
The decreasing prices of a down market drive investors into making reckless selling decisions. However, it is sometimes better to look around for some discounted stocks that may represent good investment bargains.
If you decide to use a stock screen then you will be able to specify certain criteria and according to them the screen will sift the stocks that possess the determined characteristics.
When you establish your investment portfolio you should balance it among the different asset classes. If you fail to do so you may expose yourself to higher levels of risk.
Generally investors try to forecast the movement of stocks in a particular direction. Study the company’s business activity in order to determine whether it is in a current state or a consistent losing position.
During a down market many investors transfer their stocks into cash and wait until the market starts to move up again. Despite the fact that this strategy sounds as a good movement on the part of investors, it hides its risks.
The purchase of a stock includes the clear identification of the reasons why you want to buy exactly this stock. Five main steps should be followed in order to eliminate emotions out of the purchase or sale process.
The number of stocks an investor should own is determined mainly by the situation in which the investor is in.
Deciding on the right price at which to purchase a stock represents one of the major difficulties that investors face. Dollar cost averaging represents a good tool over the long term, which enables the elimination of emotions out of stock investment decision making.
Stock investing is considered as very complex by most people. However, it is not that difficult and it all depends on you whether it will be complicated or not.
When your stock turns into a winning player you may become frustrated about what to do - sell the stock and enjoy its profits or keep the stock and wait to see its future development.
Value investing refers to the purchase of stocks that have been overlooked by the market and as a result their price is below their real value.
In his book “The Warren Buffett Way”, Robert Hagstrom outlines 12 principles Warren Buffett follows in his investment decision making. This article illustrates these tenets implemented by Buffett when selecting stocks or companies.
This article aims to familiarize you with several investing strategies for common stocks. You can choose for yourself the ones that best meet your needs and financial goals.
With time every investor develops his/her investing philosophy regarding the type of investment strategies that are to be undertaken. This article provides an explanation of different types of investment strategies and their philosophies.
Many financial experts recommend the Dogs of the Dow investing technique. For those of you who are not familiar with it, read this article and see whether it is suitable for you.
DRP stands for Dividend Reinvestment Plan. Under such a plan the dividends you are paid are directly used to purchase additional stocks.
Today most of the employers provide their employees with the opportunity of purchasing stocks of the company. Nevertheless, many specialists question the reasonability of such investment activities.
If you don't have much time for making investment decisions, then the Dogs of the Dow investment strategy is what you are searching for. This is so, since it eliminates the research and guesswork from your investment decision making.
Diversification is one of the key components of a successful investment portfolio. Through diversifying your stocks you decrease to a great extent the risk of losing your money.
Most investors prefer to trade investments through the opening of a brokerage account. However, in some cases using the alternative ways of buying and selling investments, which exclude the participation of a broker, is far better.
The goal of many investors is to beat the market. They aim to do this by using their stock investments. However, establishing as a goal the beating of the market may not be enough to achieve financial success.
Many investors find it difficult to judge when the right time has come to sell a particular stock. Besides the personal reasons that may guide your decision there are times when the market requires you to sell a stock.
Deciding on the right time to buy a stock is as difficult as deciding on the right time to sell it. Many reasons can guide the investor’s decision for selling a stock, some of which are personal.
Before you make a decision about the purchase of a stock you should do an extensive research and analysis. If the market shows that you should follow an investment strategy that doesn’t conform to your research, double-check the latter and proceed according to the results.
If you a long-term investor you should not pay attention to the pennies you can save from purchasing a particular stock. However, if you are trader interested in quick profit making every penny should matter.
No matter which way of stock trading you choose - electronic trading or the stock exchange trading floor - it is good to know how it works in case something wrong happens. In this way you will have the knowledge on where to search for the obstacle.
The stock market often falls under the conditions of the so called bull and bear markets. Intelligent investors are well familiar with the conditions of both and know exactly what to do.
No stock buying should be done without a thorough preliminary check on its potentials. This is required in order not to wake up in the next morning and wonder why you have put your money in this stock at all.
The most common rule of thumb that most financial advisors give is to buy at a low price and sell when the price is high. However, many investors miss the right time.
Some people get confused when they are asked whether they invest in a company or a particular stock. No matter what answer they give it will be the right one. However, the problem is when people don’t make a difference between investing in a company and investing in a stock.
Now that you have noticed that a particular investment promises high returns you face the problem of finding the finances for pursuing it.
Stocks are extremely sensitive to the different ups and downs of the market over the short-term. In order to become an educated stock investor you should always keep in mind that stocks are an investment tool that gives the best results over the long-term.
Many average investors are confused about the exact meaning and impact of the Dow. Investors that invest in index mutual funds or exchange traded funds, which follow the behavior of the Dow will be extremely satisfied to hear when the Dow has hit a high record.