Active Trading Articles

  1. Andre Kostolany: Germany's Stock Market Guru

    We can learn a lot from Kostolany and his "steady or shaky hand" investing philosophy.
  2. Understanding Lender-Required Flood Insurance

    Having to buy flood insurance shouldn't be a surprise. Find out what you need to know when purchasing or refinancing a house. ...
  3. Take On Risk With A Margin of Safety

    More common risk theories can lead to missed opportunities. Find out how margin of safety can propel your portfolio.
  4. Understanding The Basics of A Stop-Limit Order

    There are many techniques used by investors and traders to restrict losses or lock in gains. The stop-limit order is one ...
  5. Strategies To Trade The Dow Jones Industrial Average

    Here are four strategies for trading the Dow Jones Industrial Average (DJIA), one of the oldest and most widely-followed ...
  6. Charting Your Way To Better Returns

    Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis.
  7. Logic: The Antidote To Emotional Investing

    Playing follow-the-leader in investing can quickly become a dangerous game. Learn how to invest independently and still come ...
  8. Using Trading Indicators Effectively

    Select multiple indicators, avoid information overload and optimize indicators to effectively use technical analysis tools. ...
  9. 4 Signs You're Addicted To Investing

    Compulsive trading will ratchet up your transaction costs, stress level and time spent away from the important things in ...
  10. Asset Allocation: The First Step Toward Profit

    Understanding the different asset classes is an essential part of portfolio diversification.
  11. Modern Portfolio Theory vs. Behavioral Finance

    Modern portfolio theory and behavioral finance represent differing schools of thought that attempt to explain investor behavior. ...
  12. The Cost And Consequences Of Bad Investment Advice

    Is your advisor working for you, or for him/herself? Find how to tell the difference.
  13. Be Aware Of The Hindenburg

    This indicator can protect your profits from going into a tailspin.
  14. 3 Psychological Quirks That Affect Your Trading

    There are human tendencies that can block the road toward achieving our financial goals. Here's how to get around them.
  15. 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 ...
  16. Microfinance: What It Is And How To Get Involved

    This growing industry is full of opportunities for the socially conscious investor.
  17. Advanced Channeling Patterns: Wolfe Waves and Gartleys

    Discover how these provide the trader with insight into both the timing and scope of breakouts.
  18. Goals For Novice Traders

    You're starting out in the investing world as a trader, so now what? We give you a few tips on how set your goals.
  19. 3 Technical Tools To Improve Your Trading

    Find out how volume, the Aroon indicator and Fibonacci numbers can improve your profits.
  20. Risks in Financial Spread Betting

    It is generally perceived that spread betting produces higher after-tax returns. However, this pre-conceived notion is not ...
  21. Matching Investing Risk Tolerance To Personality

    Understanding risk tolerance is crucial to the advisor/client relationship and any good investment policy statement.
  22. Getting On The Right Side Of The P/E Ratio Trend

    Buying at the right time is crucial, but how do we know when that is?
  23. Curious About Stock Index Futures? Read This First

    You've mastered investing in individual stocks...now what? If you like a challenge, consider stock index futures. Just be ...
  24. 5 Tips For Recession House Hunters

    Follow these five tips to get a leg up on rival bargain hunters.
  25. What The Dow Means And Why We Calculate It The Way We Do

    Investors worldwide refer to the Dow every single day, but do you know why we use that formula?
  26. Mortgages: Fixed-Rate Versus Adjustable-Rate

    Both of these have advantages and disadvantages depending on your financial needs and prospects.
  27. Introduction To Swing Trading

    This style, between day trading and trend trading, may be a good one for beginners to try.
  28. Active or Passive? How to Blend Aspects of Both

    Investment fund strategies can broadly be divided into either active management or passive management.
  29. Use The Percentage Price Oscillator: The "Elegant Indicator" For Picking Stocks

    Technical analysis is basically an attempt to disprove the credo that "Past performance is not indicative of future results." ...
  30. Herding Tendencies Among Analysts

    Just like private investors, analysts are sometimes guilty of following the herd and failing to think independently.
  31. Finding The Trend With Aroon

    Don't be confused about whether a long-term trend will continue, stall or reverse.
  32. Trading Volatile Stocks with Technical Indicators

    Short-term traders seek volatility because of the profit potential, which leads to two common questions. How do I find volatile ...
  33. Selling Premium As Small Caps Play Catch Up

    In our recent article we pointed out a divergence between the small cap Russell 2000 and the S&P 500. However, the divergence ...
  34. The NASDAQ Pre-Market: What You Need To Know

    Curious about pre-market or extended-hours trading? Here's a quick guide so you'll know what to expect.
  35. The Rise And Fall Of The Shadow Banking System

    We look at the evolution, failure and fallout from the shadow banking system.
  36. Understanding Leveraged Buyouts

    LBOs are often presented as predatory by the media, but it really depends on which side of the deal you're on.
  37. Megatrends For Maximum Profits

    Predicting how the world will evolve can help you build a portfolio that can roll with the punches.
  38. MACD Histogram Helps Determine Trend Changes

    Learn how this momentum indicator is used to determine price action on a stock.
  39. Darvas Box Traps Elusive Returns

    Follow a modern trade to see how this old strategy still captures profits today.
  40. Understanding Financial Spread Betting

    Investopedia explains the logic behing financial spread betting.
  41. 3 Key Signs Of A Market Top

    Learn the best ways to foresee market corrections and how to profit from them.
  42. Warren Buffett's Bear Market Maneuvers

    This esteemed investor rarely changes his long-term investing strategy, no matter what the market does.
  43. Where's The Market Headed Now?

    Whether up, down or sideways, learn about some of the factors that drive stock market moves.
  44. Trade Like A Hedge Fund Master

    Simple techniques can limit losses - but at a cost.
  45. Invest Like Madoff - Without The Jail Time

    This Ponzi scammer's professed strategy has been vilified, but it actually works.
  46. Using Economic Capital To Determine Risk

    Discover how banks and financial institutions use economic capital to enhance risk management.
  47. Pitfalls Of Copycat Investing

    While it may sound good in theory to attempt to mimic the investment style and profile of a successful institution, it is ...
  48. Four-Week Rule Boosts Winning Trades

    Acquaint yourself with an indicator that played a role in the early development of technical analysis.
  49. 4 Leverage Ratios Used In Evaluating Energy Firms

    These four leverage ratios can help investors understand how oil and gas firms are managing their debt.
  50. How To Profit From Recent Market Divergence

    US stocks contemplate the fate of the 5-year bull market as the small cap Russell 2000 diverges from the S&P 500. Market ...
  51. Strip Options: A Market Neutral Bearish Strategy

    Strip Options are market neutral trading strategies with profit potential on either side price movement, with a "bearish" ...
  52. Strap Options: A Market Neutral Bullish Strategy

    Strap Options are a market neutral trading strategy with profit potential on either side price movement, and with a "bullish" ...
  53. Day Trading Rules For Rookies: Don't Play It By Ear!

    If you want to start day trading as a rookie, follow these guidelines.
  54. A Guide To Day Trading On Margin

    Buying on margin is a good option if you don't have the cash to day trade.
  55. Three Ways to Profit Using Call Options

    A brief overview of how to provide from using call options in your portfolio.
  56. Risk Reversals for Stocks Using Calls and Puts

    Risk reversal strategies can be a very useful “option” for experienced investors who are familiar with basic puts and calls.
  57. How Do You Use Stock Simulators?

    Stock market simulators let you pick securities, make trades and track the results-all without risking a penny.
  58. Three Ways to Profit Using Put Options

    A brief overview of how to profit from using put options in your portfolio.
  59. If You Buy Stocks Online, You Are Involved in HFTs

    Many people don't realise that some half to two-thirds of all trades use high-frequency trading in some fashion.
  60. Day Trading: Impoverishing Dilettantes Since 1990

    Operating a day-trading account is like owning thoroughbreds or an America’s Cup team. You can't just enter the arena with ...
  61. How to Day Trade Volatility ETFs

    A primer on the ideal time to day trade volatility ETFs, and how to do it.
  62. The Best Day-Trading Schools

    Here are the top day-trading schools that offer courses and mentoring in the stock, options, futures and forex markets.
  63. A Guide To Trading Binary Options In The U.S.

    What binary options are, how they work and where you can legally trade them in the U.S.?
  64. Binary Options FAQs - Sponsored by Nadex

    Many investors may not be familiar with binary options, but they’re actually quite easy to use. And they can play an important ...
  65. How to Trade Volatility Using Binary Options - Sponsored by Nadex

    Binary options are similar to classic options with some slight nuances but the components used for the option’s pricing are ...
  66. Using Binary Options to Trade Direction - Sponsored by Nadex

    Binary options are an outstanding method of trading market direction, whether it’s going up or down.
  67. Common Misconceptions About Binary Options - Sponsored by Nadex

    There are many misconceptions about binary options, so it is really important that traders understand exactly what they are--and ...
  68. Binary Options Strategies - Sponsored by Nadex

    Because of their all-or-nothing character, binary options offer traders a great way to trade on the direction of an asset ...
  69. The Benefits Of Exchange Traded Binary Options - Sponsored by Nadex

    Binary options can be a fantastic trading instrument, as long as they are structured correctly and traded on a regulated ...
  70. Introduction To Binary Options - Sponsored by Nadex

    Binary options may sound complicated, but they're really not. In fact, they offer traders alternative ways to trade stock ...
  71. A Guide For Buying ETFs On Margin

    "Buying on margin" is like shopping with a credit card, as it allows you to spend more than you have in your wallet.
  72. Top Stocks High-Frequency Traders (HFTs) Pick

    High-frequency trading (HFT) firms make money by exploiting inefficiencies in the pricing of shares quoted on several exchanges ...
  73. Trading Options on Futures Contracts

    Futures contracts are available for all sorts of financial products, from equity indexes to precious metals. Trading options ...
  74. How To Buy Gold Options

    Buy gold options to attain a position in gold for less capital than buying physical gold or gold futures. If you've wondered ...
  75. How To Buy Silver Options

    Buying silver options allows traders to attain a position in silver for less capital than buying physical silver or silver ...
  76. Trading The Most Volatile Stocks After Hours

    The stock market has an official open and close, but trading takes place outside these hours, often in the most volatile ...
  77. The Difference Between Options and Futures

    Are you sure you know the difference between an option and a future?
  78. An Introduction To Dark Pools

    Dark pools are an ominous-sounding term for private exchanges or forums for trading securities; unlike stock exchanges, dark ...
  79. The Perils Of Program Trading

    The increasing use of program trading makes market glitches inevitable - and sometimes disastrous.
  80. Bad Investor Behavior: Overemphasizing Experience

    Behavioral finance researchers have discovered that our personal experiences disproportionately impact our investing behavior. ...
  81. Overbought Or Oversold? Use The Relative Strength Index To Find Out

    The Relative Strength Index comes in handy when identifying areas that are potentially overbought or oversold.
  82. The Four Most Commonly-Used Indicators In Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and to find entry/exit points.
  83. Use Knock-Out Options To Lower The Cost of Hedging

    Unlike a plain-vanilla call or put option where the only price defined is the strike price, a knock-out option has to specify ...
  84. The Odd Lot Theory: Betting That Small Investors Are Wrong

    The odd lot theory is a largely discredited proposition that small investors are usually wrong and that doing the exact opposite ...
  85. The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate

    The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns ...
  86. Understanding the "Hanging Man": The Optimistic Candlestick Pattern

    A hanging man is a candlestick pattern that hints at the reversal of an uptrend. The candlestick is recognizable by a small ...
  87. Give Yourself More Options With Weekly and Quarterly Options

    Weekly and quarterly options were introduced to give a greater choice of option expirations to investors, and enable them ...
  88. Use The McClellan Oscillator To Measure Market "Breadth"

    How broad is the market? And, once we answer that question, how can we use that answer to our advantage?
  89. How Credit Event Binary Options Can Protect You In A Credit Crisis

    CEBOs are designed to offer protection from “Credit Events” like bankruptcy or a global economic crisis, and thus are quite ...
  90. Which Vertical Option Spread Should You Use?

    Knowing which option spread strategy to use in different market conditions can significantly improve your odds of success ...
  91. How To Use The Chaikin Oscillator To Your Advantage

    How best to reconcile increasing or decreasing volume with price fluctuations? No one has a definitive answer, but Marc Chaikin ...
  92. How Traders Can Utilize CCI (Commodity Channel Index) To Trade Stock Trends

    Use the Commodity Channel Index (CCI) to enter and exit price trends.
  93. Mini Options: A Useful Tool For Trading High-Priced Securities

    Mini options are option contracts wherein the underlying security is 10 shares of a stock or exchange-traded fund (ETF). ...
  94. What is a Bear Call Spread?

    A bear call spread is an option strategy that involves the sale of a call option, and the simultaneous purchase of a call ...
  95. What is a Bear Put Spread?

    A bear put spread entails the purchase of a put option and the simultaneous sale of another put with the same expiration ...
  96. What is an Iron Butterfly Option Strategy?

    This relatively simple strategy is designed to provide a profit for investors who believe that there will be minimal price ...
  97. What is a Bull Call Spread?

    A bull call spread is an option strategy that involves the purchase of a call option, and the simultaneous sale of another ...
  98. Creative Ways to Protect Your Stock Portfolio

    Protecting your stock portfolio is an extremely important part of portfolio management.
  99. Four Breakout Stocks To Watch

    These biotechnology and pharmaceutical stocks continue to put in new highs, but indicators are diverging.
  100. An Overview of Weather Derivatives

    Investopedia explains: Weather derivatives allow businesses to safeguard against unusual temperatures or levels of precipitation ...
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