Active Trading Articles

  1. Utilizing Prisoner’s Dilemma In Business And The Economy

    The Prisoner’s Dilemma, one of the most famous game theories, provides a framework for understanding how to strike a balance between cooperation and competition, and is a very useful tool for strategic decision-making. As a result, it finds application in diverse areas ranging from business, finance, economics and political science to philosophy, psychology, biology and sociology.
  2. Introduction To Momentum Trading

    This trading style offers major profit potential thanks to the powerful way in which momentum can drive a stock.
  3. Adapt To A Bear Market

    Learn how your portfolio should evolve to suit bear market conditions.
  4. Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually profit by doing market analysis. However, even experienced investors debate which type of analysis - fundamental or technical - provides higher returns.
  5. Market Volatility Strategy: Collars

    Find out which protective or bullish collar will result in your optimal risk/return level.
  6. Top Reasons Forex Traders Fail

    This market can be treacherous for unprepared investors. Find out how to avoid the mistakes that keep FX traders from succeeding.
  7. An Introduction To Structured Products

    Learn a simple way to bring the benefits of derivatives into your portfolio.
  8. Financial Analysis: Solvency Vs. Liquidity Ratios

    Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure a company’s liquidity and solvency, and an investor should use both sets to get the complete picture of a company’s financial position.
  9. Introduction to Margin Accounts

    Find out what your broker is doing with your securities when you invest on margin.
  10. Understanding The Consumer Confidence Index

    We look at this closely watched economic indicator to see what it means and how it's calculated.
  11. Which Order To Use? Stop-Loss Or Stop-Limit Orders

    Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know when to use one versus the other.
  12. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.
  13. Loving Your Stocks? Don't Take This Cliché To Heart

    The advice not to fall in love with one's stocks is common, even a cliché. However, the prevalence of this phenomenon is probably overstated by financial journalists. More common is that investors hang on to poorly performing assets, but for a wide range of reasons.
  14. American Vs. European Options

    These two options have many similar characteristics, but it's the differences that are important.
  15. Top 4 Most Scandalous Insider Trading Debacles

    Here we look at some of the landmark incidents of insider trading.
  16. An Introduction To Gamma-Delta Neutral Option Spreads

    Find the middle ground between conservative and high-risk option strategies.
  17. Profiting In Bear And Bull Markets

    There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage.
  18. How Leverage Is Used In Forex Trading

    Forex trading by retail investors has grown by leaps and bounds in recent years, thanks to the proliferation of online trading platforms and the availability of cheap credit. The use of leverage in trading is often likened to a double-edged sword, since it magnifies gains and losses.
  19. The Iron Condor

    This market-neutral strategy isn't for everyone. Read on to find out if it is for you.
  20. What Is Spread Betting?

    The temptation and perils of being over leveraged is a major pitfall of spread betting. However, the low capital outlay necessary, risk management tools available and tax benefits make spread betting a compelling opportunity for speculators.
  21. The Basics Of The Bid-Ask Spread

    The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders.
  22. The Art Of Cutting Your Losses

    Taking corrective action before your losses worsen is always a good strategy. Find out how to keep your capital losses small and let your winners run.
  23. Master Your Trading Mindtraps

    Traders are only human; therefore, they are subject to psychological traps when they trade. Read how you can manage your emotions so that you can profit from your trading.
  24. Leverage: What It Is And How It Works

    Leverage is an investment strategy of using borrowed money to generate outsized investment returns. Before getting into greater detail on how leverage works in an investment context, it is useful to have a broad understanding of the general topic.
  25. The Basics of Forex Leveraging

    A closer look at the controversial topic of leverage in forex trading.
  26. Should You Borrow Money To Make Investments?

    It's high time investors heed the yellow caution flags waving in front of their margin accounts. Much like the NASCAR driver who pumps his brakes to avoid disaster when he sees the caution flag, it's time for us to slow down.
  27. 7 Controversial Investing Theories

    We take a closer look at the theories that attempt to explain and influence the market.
  28. The Downward Spiral Of Trading Addiction

    Trading in the financial markets is stimulating, exciting and engrossing. But one can become addicted, just like with actual casino gambling or illegal drugs. Like any severe addiction, this can cost you your job, relationships and, of course, your financial resources.
  29. Quit Your Job To Trade Stocks?

    Ready to quit your day job and become a full-time trader? These tips will help you determine your area of expertise.
  30. A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  31. Trading GDP Like A Currency Trader

    Investors that understand and utilize the U.S. GDP report have a significant advantage over those that don't.
  32. Consumer Confidence: A Killer Statistic

    The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them.
  33. Follow The Herd In Trading The Capital Market

    If you have ever heard "the trend is your friend" and believed it, you may be a fan of herd instinct mentality. This is an environment where, just like with fashion, masses of people follow a pattern that the majority of people around them are following … sometimes for no sensible reason.
  34. Avoid These Common Investing Psychology Traps

    There are a number of very common psychological traps or errors that investors typically make. You can save a lot of money and misery by avoiding them.
  35. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
  36. What Type Of Trader Are You?

    There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use?
  37. A Day In The Life Of A Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  38. Behavioral Bias - Cognitive Vs. Emotional Bias In Investing

    We all have biases. The key to better investing is to identify those biases and create rules to minimize their effect.
  39. Sell In May – Yay Or Nay?

    Seasonal timing in the market, best personified by the adage, “Sell in May – Go away,” has long been the subject of debate among investors. The question remains: Is there anything to it?
  40. 4 Behavioral Biases And How To Avoid Them

    Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio.
  41. Trading Is Timing

    Learn how to make gains even if you don't get in at the right time.
  42. Invest Like Buffett: Building A Baby Berkshire

    Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks.
  43. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  44. Trading Forex Trends With MACD And Moving Averages

    Although based on short-term trading, keeping the long-term picture in mind will help investors trade with the trend.
  45. Cash: A Call Option With No Expiration Date

    Cash is generally regarded as a drag on investment returns, but sometimes it may be preferable to hold a substantial cash amount instead of investing it in other assets. This is because having cash on hand gives an investor the flexibility to acquire an asset or assets at bargain prices when the opportunity arises, such as during periods of uncertainty when cash is king.
  46. 10 Golf Tips To Help Investors Tee Off

    There are a lot of similarities between golf and investing. Find out how to keep your game out of the rough.
  47. Becoming A Chartered Market Technician

    The CMT certification involves three tough exams. Find out what you need to do in order to pass.
  48. Modern Portfolio Theory vs. Behavioral Finance

    Modern portfolio theory and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and positions is to think of modern portfolio theory as how the financial markets would work in the ideal world, and behavioral finance as how financial markets work in the real world.
  49. Business Grads, Land Your Dream Job

    Companies are in need of strategic candidates, not walking resumes. Find out how to set yourself apart from the pack and land the business career you've always wanted.
  50. How To Adjust Your Portfolio In A Bear Or Bull Market

    While investors shouldn’t feel compelled to change their portfolios radically overnight in reaction to the market's daily moves, small adjustments in the face of a bull or bear market could be a prudent move.
  51. Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.
  52. Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
  53. Guide To Embedded Options In Bonds

    Investors should be aware of embedded options that may be available in certain securities as these options may affect the value of the security.
  54. Women And Investing: It's A Style Thing

    You don't have to be a boy or act like a boy to win. In fact, doing the opposite could be better for your financial health.
  55. Support And Resistance Basics

    Understanding the concept of Support and Resistance in trading can drastically improve your short-term investing strategy.
  56. Forex: Demo Before You Dive In

    All trading platforms have benefits and drawbacks - master the fake trade before making a real one.
  57. Bloated Budget? How To Trim The Fat

    Blood, sweat and tears should belong in the gym, but your money deserves some training time too.
  58. Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.
  59. Budget Without Blowing Off Your Friends

    With a little planning, you can maintain your social life without breaking the bank.
  60. Exploring European Options

    The ability to exercise only on the expiration date is what sets these options apart.
  61. How To Outperform The Market

    Active trading is an investing style that aims to beat the market. Find out how it works, and whether it will work for you.
  62. Bear Put Spreads: A Roaring Alternative To Short Selling

    This strategy allows you to stop chasing losses when you're feeling bearish.
  63. Build Your Small Business During Downswings

    Here we offer some cost-saving measures to strengthen your business even when the market is weak.
  64. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  65. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  66. Trading Double Tops And Double Bottoms

    We look at how Bollinger Bands help accurately project entry and exit points for pattern traders.
  67. How To Develop A Trading Brain

    The fundamental role of trader psychology tends to be underestimated, with too much emphasis placed on the technical side.
  68. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  69. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  70. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  71. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  72. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  73. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  74. 5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  75. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  76. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.
  77. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  78. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  79. Finding Your Investing Comfort Zone

    Choosing the right investments for you is the best way to feel comfortable with your portfolio.
  80. Removing The Barriers To Successful Investing

    Learn how to stop using emotion and bad habits to make your stock picks.
  81. Can Regular Investors Beat The Market?

    With the big name competition out there, hard-working people who invest have a tough time beating the market.
  82. Finding Your Margin Investment Sweet Spot

    Borrowing to increase profits isn't for the faint of heart, but margin trading can mean big returns.
  83. Using Options To Pay Off Debt

    We tell you about four option strategies that could provide a way to pay off your debt.
  84. Reinvesting Capital Gains In Leveraged Portfolios

    Don't get forced into action. Learn how to plan properly to avoid making rash decisions.
  85. Asset Allocation: The First Step Toward Profit

    Understanding the different asset classes is an essential part of portfolio diversification.
  86. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.
  87. Hedging With ETFs: A Cost-Effective Alternative

    The benefits of ETFs for hedging are clear and investors of all sizes are taking notice.
  88. Investors Intelligence Sentiment Index

    This indicator can give a overall sense of bull and bear forces - learn what it is and how it's constructed.
  89. Triangles: A Short Study In Continuation Patterns

    Learn how to read these formations of horizontal trading patterns.
  90. Minis Provide Low-Cost Entry To Futures Market

    These contracts provide access to commodities without a huge capital commitment.
  91. Pin Down Stock Price With Real Options

    How can you assign a value to what a company may do with its business in the future? We explain how it works.
  92. Forget The Stop, You've Got Options

    Using options instead of stop-loss orders adds finesse and control in limiting losses.
  93. Major Indexes Near Pre-Recession Levels: Is History Repeating Itself?

    The markets look to be moving back to where they were before the recession. Does this mean another is on the way?
  94. Implied Volatility: Buy Low And Sell High

    This value is an essential ingredient in the option pricing recipe.
  95. Offset Risk With Options, Futures And Hedge Funds

    Though all portfolios contain some risk, there are ways to lower it. Find out how.
  96. Cutting Edge Options Trades: The Zero-Premium Hedge

    This options trade is essentially free and can have huge profit potential, but it's not without its risks.
  97. The Barnyard Basics Of Derivatives

    This tale of a fictional chicken farm is a great way to learn how derivatives work in the market.
  98. A Forex Trader's View Of The Aussie/Gold Relationship

    We look at why this relationship exists and how you can use it to produce solid gold returns.
  99. Introduction To Incentive Stock Options

    Here are some basic highlights of how ISOs work and the ways they can be used.
  100. Tax Advice For Victims Of Superstorm Sandy

    As the eastern part of the United States cleans and rebuilds, tax-related issues are sure to arise for the millions affected by the storm.
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