Active Trading Articles

  1. 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 stocks? And how do I use technical indicators to trade them? Find out here.
  2. 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 has narrowed.
  3. 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.
  4. The Rise And Fall Of The Shadow Banking System

    We look at the evolution, failure and fallout from the shadow banking system.
  5. 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.
  6. Megatrends For Maximum Profits

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

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

    Follow a modern trade to see how this old strategy still captures profits today.
  9. 3 Key Signs Of A Market Top

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

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

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

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

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

    Discover how banks and financial institutions use economic capital to enhance risk management.
  15. 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 often much harder (if not impossible) to do so in practice.
  16. Four-Week Rule Boosts Winning Trades

    Acquaint yourself with an indicator that played a role in the early development of technical analysis.
  17. 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.
  18. 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 veteran, Todd Gordon has an options strategy that takes advantage of the upcoming unwind of the divergence.
  19. 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" skew.
  20. 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" skew.
  21. Day Trading Rules For Rookies: Don't Play It By Ear!

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

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

    A brief overview of how to provide from using call options in your portfolio.
  24. 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.
  25. How Do You Use Stock Simulators?

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

    A brief overview of how to profit from using put options in your portfolio.
  27. Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  28. 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.
  29. 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 no money.
  30. How to Day Trade Volatility ETFs

    A primer on the ideal time to day trade volatility ETFs, and how to do it.
  31. 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.
  32. 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.?
  33. 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 role in your investing strategy. Here are some of the more common questions surrounding these options.
  34. 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 the same; underlying market, strike (K), volatility and time.
  35. 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.
  36. 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 what they are not--in order to use them effectively.
  37. 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 or the overall market. And what makes binary options intriguing, besides their straight-forward risk/reward profiles and defined risk, is that they can be used for shorter strategies due to the hourly, daily or weekly expirations of the contracts.
  38. 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 exchange.
  39. 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 indices, commodities and currencies-even economic events. Say you think the S&P 500 is going to rise, or the U.S.
  40. 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.
  41. 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 in an increasingly fragmented marketplace. They also generate significant income by capturing rebates offered by various exchanges for providing liquidity.
  42. Trading Options on Futures Contracts

    Futures contracts are available for all sorts of financial products, from equity indexes to precious metals. Trading options based on futures means buying call or put options based on the direction you believe an underlying financial product will move, or writing options for income.
  43. How To Use A Moving Average To Buy Stocks

    The Moving Average indicator is one of the most useful tools to trade and analyze financial markets.
  44. 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 how to invest in gold , here's a shorter-term and less capital intensive way to do it.
  45. 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 futures.
  46. 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 stocks.
  47. The Difference Between Options and Futures

    Are you sure you know the difference between an option and a future?
  48. 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." The percentage price oscillator, which measures momentum, is among the more sophisticated of such tools.
  49. An Introduction To Dark Pools

    Dark pools are an ominous-sounding term for private exchanges or forums for trading securities; unlike stock exchanges, dark pools are not accessible by the investing public.
  50. The Perils Of Program Trading

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

    Behavioral finance researchers have discovered that our personal experiences disproportionately impact our investing behavior. Nelli examines the evidence and implications of this bad investing behavior, and what investors can do to overcome it.
  52. 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.
  53. 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.
  54. 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 two prices – the strike price and the knock-out barrier price.
  55. How To Profit From The "Night and Day" Aroon Oscillator

    “Aroon” is a Sanskrit word loosely translated as the transition from night to day, appropriate for a measure that attempts to determine when a trend is about to develop into something of substance.
  56. 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 will yield above-average returns.
  57. 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 for individual assets, investment portfolios and anything that can rise or fall in value over time.
  58. A Simple Overview Of Quantitative Analysis

    All of the potential highs, lows, and sentiments associated with investing can overshadow the ultimate goal—making money. The “quantitative” approach to investing seeks to pay attention to the numbers instead of the intangibles.
  59. 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 box atop a long, narrow "shadow."
  60. 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 to trade more efficiently.
  61. 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?
  62. Tweezers Provide Precision For Trend Traders

    How to use candlestick tweezer patterns for analyzing and trading financial markets.
  63. 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 different from standard call and put options.
  64. 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 in options trading.
  65. 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 has come as close as anyone. Enter the Chaikin Oscillator.
  66. How Traders Can Utilize CCI (Commodity Channel Index) To Trade Stock Trends

    Use the Commodity Channel Index (CCI) to enter and exit price trends.
  67. Using the Coppock Curve to Generate Stock Trade Signals

    How the Coppock Curve momentum indicator can help you isolate buying opportunities and exit points in the stock market.
  68. 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). This is the main difference between mini options and standard options, which have 100 shares as the underlying security.
  69. 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 option (on the same underlying asset) with the same expiration date but a higher strike price. A bear call spread is one of the four basic types of vertical spreads.
  70. 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 but a lower strike price.
  71. 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 movement in the underlying security until expiration.
  72. 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 option (on the same underlying asset) with the same expiration date but a higher strike price. A bull call spread is one of the four basic types of vertical spreads.
  73. Creative Ways to Protect Your Stock Portfolio

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

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

    Investopedia explains: Weather derivatives allow businesses to safeguard against unusual temperatures or levels of precipitation that may adversely affect financial performance.
  76. What Is A Bull Put Spread?

    Investopedia explains: A bull put spread is a variation of the popular put writing strategy, in which an options investor writes a put on a stock to collect premium income and perhaps buy the stock at a bargain price.
  77. Options Basics: How to Pick the Right Strike Price

    The strike price has an enormous bearing on how your option trade will play out. Read on to learn about some basic principles that should be followed when selecting the strike price for an option.
  78. What The Market Open Tells You

    The first few moments of trading provide a lot of information. If a trader analyzes this information, it can give a lot of insight into the market's moves for the day.
  79. Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  80. Are You Investing Or Gambling?

    We look at ways in which gambling creeps into trading, and what may drive an individual to trade - or gamble - in the first place.
  81. What You Need To Know About Binary Options Outside The U.S.

    Binary or digital options are a simple way to trade price fluctuations in multiple global markets.
  82. A Fresh Look At The Financial Markets

    Different markets provide unique opportunities and risks for investors. Find out more here.
  83. Trailing-Stop/Stop-Loss Combo Leads To Winning Trades

    Combine trailing stops with stop-loss orders to reduce risk and protect portfolio value.
  84. Introduction to SPOT Options

    Single-payment options trading (SPOT) allows investors to have full control over their investments.
  85. Introduction To Put Writing

    Learn about a strategy that may be appropriate if you have a positive outlook on a stock.
  86. Financial Markets: Random, Cyclical Or Both?

    Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
  87. Enhance Your Portfolio With Active Equity

    This strategy provides the potential for larger returns while using less capital.
  88. Exotic Options: A Getaway From Ordinary Trading

    Exotic options are like regular options, except that they have unique features that make them complex. These unusual investment vehicles can reignite your interest in trading.
  89. Getting A Handle On The Options Premium

    The price of an option, otherwise known as the premium, has two basic components: the intrinsic value and the time value. Understanding these factors better can help the trader discern which contracts represent a good value for the money.
  90. Reducing Risk With Options

    If you want to use leverage to your advantage, you must know how many contracts to buy.
  91. The Basics Of Option Price

    Options can be an excellent addition to a portfolio. Find out how to get started.
  92. The Optimal Use Of Financial Leverage In A Corporate Capital Structure

    The amount of debt and equity that makes up a company's capital structure has many risk and return implications.
  93. 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 out on top.
  94. Get The Most Out Of Employee Stock Options

    These plans can be lucrative for employees - if they know how to avoid unnecessary taxes.
  95. Advanced Game Theory Strategies For Decision-Making

    The importance of game theory to modern analysis and decision-making can be gauged by the fact that since 1970, as many as 12 leading economists and scientists have been awarded the Nobel Prize in Economic Sciences for their contributions to game theory.
  96. Is Your Personality Preventing Profitable Trades?

    Different personality types will trade differently. Where do you fit in?
  97. How To Avoid Closing Options Below Intrinsic Value

    To get the best return possible on your options trading, it is important to understand how options work and the markets in which they trade.
  98. Breaking Down The Binomial Model To Value An Option

    Find out how to carve your way into this valuation model niche.
  99. 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.
  100. Introduction To Momentum Trading

    This trading style offers major profit potential thanks to the powerful way in which momentum can drive a stock.
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