Category: Technical Trading

  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… Continue reading A Beginners Guide to Investment Factors

  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… Continue reading What Are Cult Stocks And How Should You Trade Them?

  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). … Continue reading Reddit Strikes Again: Explaining The Recent Reddit Rally in Wendy’s

  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… Continue reading How Do SVXY and VXX Work? Volatility (VIX) ETFs Explained

  Volatile stocks can be very rewarding for the savvy trader allowing quick profits from day trading. However, these stocks can become your worst nightmare if you don’t fully know what you are getting into. In this post, we’ll explain what volatile stocks are and whether it is safe for you to hold them overnight.… Continue reading Is It Safe To Hold Volatile Stocks Overnight?

  Trend trading, in its simplest form, is the act of buying assets that are going up and selling short assets that are going down. It takes many forms too. Some take a long-term view, buying the best performing futures contracts and try to hold them for years, only winning about 25% of their trades… Continue reading Trend Trading for Beginners – Warrior Trading

  The stock market offers attractive opportunities of trading different types of stocks. While the moves of the stock market itself affect all stocks, there are plenty of other factors – from the fundamentals of a company to overall economy. Today, we shall discuss detailed differences between cyclical and non-cyclical stocks. So, let’s get started! Cyclical stocks Cyclical… Continue reading Cyclical Vs Non-Cyclical Stocks: What Are The Differences

  Profitable day trading isn’t easy. You need to be precise with your timing, execution, and exits, or else you’ll get chopped up by paying the bid/ask spread and commissions.  In trading books, much of the focus is put on your entry price. Should you enter on a pullback, wait for a moving average crossover,… Continue reading Effective Exit Strategies for Day Trading

  Robinhood was at the center of the unprecedented and monumental Reddit trading mania that saw shares of GameStop (GME) and other companies, including headphone maker Koss (KOSS) and cinema operator AMC (AMC) soar to extreme levels as amateur traders piled into the stocks earlier this year. However, the popular trading app was accused of selling… Continue reading Can A Broker Sell Your Position Without Permission?

  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… Continue reading Can You Short Sell Stocks Under $5?