Tag: Online Trading

CFD Trading: A Beginners Guide
Strategy, Technical Analysis

CFD Trading: A Beginners Guide

CFDs are a popular type of derivatives product that allows traders to efficiently speculate on the prices of stocks, currencies, commodities, or indices, without having to take ownership of the underlying assets.Here, we’ll shed some light on CFD trading, its main characteristics, and how to trade CFDs online.What are Contracts for Difference and How Do They Work?CFDs, short for Contracts for Difference, are popular financial derivatives that track price movements in an underlying financial instrument.It is a contract for the difference in two prices.It is a contract between a buyer and a seller, normally the trader and their broker, that stipulates that one party has to pay the difference between the price when the agreement was struck and, at some point in the future when the a...
How To Switch Stock Brokers [2021]
Online Trading

How To Switch Stock Brokers [2021]

Want to know how to switch stock brokers? Here’s a tutorial on what to do, how to prepare for a transfer and what to look for in your next broker.IntroThe 2010s was a great decade for retail traders.Discount brokerages eliminated commissions, software offerings improved, minimum deposits went down, and brokers made more products available.Late 2019 was the real game-changer, when Schwab decided to follow in Robinhood’s footsteps and cut commissions to zero. They forced the rest of the industry, other than Interactive Brokers, to follow suit.Because most discount brokers cut their commissions to zero, they’re all trying to compete for the new business by sweetening their offerings.As a result, us retail traders have a lot of great choices for brokers and because of the frequen...
The Big Housing Migration and How It Affects the Homebuilding Industry
Investing, Online Trading

The Big Housing Migration and How It Affects the Homebuilding Industry

Housing starts for December 2020, reported in late January, hit a level not seen since 2006.A confluence of several factors is driving this trend which we’ll explain in this article.Translation: the housing market is booming once again. Is the boom here to stay, and how does this fare for the homebuilding industry?Quick Rundown on HomebuildersIt’s in the name: home builders build and sell homes.They buy plots of land in neighborhoods poised for growth and use construction crews to build houses on the land. Once the house is built, they typically use their own team of realtors to sell the house.Some homebuilders build speculatively–meaning they build before they have a buyer, and list the home on the Multiple Listing Service hoping to get a good price.On the other hand, many r...
What is MOMO Trading?
Online Trading

What is MOMO Trading?

What is momo trading and what does momo stand for? These are common questions we see all the time.Although there are many different types of trading strategies available, ‘momo’ trading strategies have become more and more popular in current markets.In this post, we’ll discuss what momo trading strategies are, how you can use them to trade stocks, and how they differ from other styles of trading.What does Momo stand for?Momo simply stands for momentum.The term momentum is borrowed from Newton’s first law of motion, also known as the Law of Inertia. The law states that an object will remain at rest or move at a constant speed in a straight line unless an external force is applied to it.According to the law, an external force is needed to change the direction or speed of a spacec...
What are the Different Broker Order Types
Strategy, Technical Analysis

What are the Different Broker Order Types

If you’re just getting started with trading, you’ve most likely encountered just one type of order: the spot market order. Fortunately, most brokers and modern trading platforms allow you to choose from a range of order types that best fit your trading strategy.In the following article, we’ll cover the most popular broker order types and explain how to use each of them. Before we do that, it is important to understand that an order is simply an instruction to your broker to initiate a trade when some predefined level or combination of events. If you want to have a refresh of what an order is you can have a look at our free course:Different Types of OrdersThere are many different order types in trading. Each type has a specific purpose and aids certain trading strategies, such as brea...
Ease of Movement Indicator Explained For Beginners
Online Trading, Technical Analysis

Ease of Movement Indicator Explained For Beginners

As a day trader, you know one of the keys to understanding price movement is analyzing volume trends which is where the Ease of Movement Indicator comes in.Volume and volatility go hand-in-hand and day traders need an ample amount of volatility in order to lock in large gains.In volatile markets, volume and price occasionally become disjointed, which can create opportunities for day trading.Many indicators attempt to measure the relationship between volume and price, such as Volume Weighted Average Price (VWAP).One of the lesser known volume-based indicators is the Ease of Movement Indicator, which attempts to compress volume and price volatility into a single number with clear buy and sell signals.What is the Ease of Movement Indicator?The Ease of Movement indicator was develo...
What Happened in GameStop Stock?
Online Trading

What Happened in GameStop Stock?

The epic short squeeze in GameStop (GME) is the biggest financial markets story since the Great Financial Crisis.We all know the story.Redditors noticed that the short interest in GameStop (GME) has been over 100% for a long time. As the stock ticked higher, the idea of a massive short squeeze went viral.The stock went further than most thought possible, reaching a high of $483 from a 2021 low of about $17.Tons have been written on the subject, touching on all manner of broader societal phenomena.Netflix even announced they’re making a film about the event. Doubtless, your email inbox is full of insightful thoughts on what these means for markets and beyond, so we’ll opt just to explain the story behind GameStop stock before the short squeeze occurred.We’ll attempt to answer qu...
How Margin Rates Affect Buying Power for Traders
Online Trading

How Margin Rates Affect Buying Power for Traders

If you utilize margin in your trading, you need to understand how margin works, how much it works, and how it can work against you. In this article we’ll talk about how margin rates affect buying power.What is Margin?Margin is credit that your broker extends to you to trade.For example, in a $10,000 trading account, you might be able to utilize up to $20,000 in buying power for overnight trades and $40,000 for intraday trades.In the United States, there are regulations on how much margin you can utilize within a standard brokerage account.These are typically double your account equity for overnight trades and quadruple your account equity for intraday trades.However, most brokers offer clients with more than $125,000 in account equity a more fine-tuned margin structure, called ...
What Are 13F Filings And How Can Traders Use This Information?
Online Trading

What Are 13F Filings And How Can Traders Use This Information?

There are lots of SEC filings that stock traders and market analysts have to wade through, but few are as important as the SEC 13F Filings, which is filed by hedge funds and other institutional investment managers.The reason you have been hearing about this document recently is because of the Reddit trading frenzy that has caused wild swings in some heavily-shorted stocks like GameStop (NYSE: GME), Koss (NASDAQ: KOSS), AMC Entertainment (NYSE: AMC).Let’s find out more about what traders should know about the SEC Form 13F, including a guide on how you can use the information.What is SEC Form 13F?A 13F filing is a quarterly report that must be submitted by institutional investment managers to the SEC at the end of a calendar quarter to disclose their investments in U.S. stocks.Al...
Stock News

Emergence of more virulent strains

The New Year’s rally on Wall Street and global markets ran into turbulence during January. Rising virus cases and more stringent lockdowns, a shaky rollout of the vaccine in the US and Europe and the emergence of more virulent strains tempered optimism about the recovery. A frenzy in select stocks prompted a surge in anxiety and volatility on Wall Street. But the equity market bounced back into February, supported by still intact recovery expectations and a calming in market volatility. The uptrend in bond yields sputtered amid myriad developments and uncertainties, only to resume as stocks rebounded.Fundamentals were briefly pushed to the side in the final week of January, as a frenzy erupted around shares of GameStop and AMC that was driven by retail investors taking cues from intern...