What To Do When Trades Go Bad
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Sometimes even the best-looking set-ups don’t work out, but trader Corey Rosenbloom explains how to develop the proper skills to overcome these setbacks and stay on track.
Day trading is the term often used for buying and selling stocks within the same day. Day traders seek to make a profit by leveraging large amounts of capital in order to take advantage of small price movements in highly liquid stocks or indexes.
The wealth effect is a psychological phenomenon that causes people to spend more as the value of their assets rises. The premise is that when consumers' homes or investment portfolios increase in value, they feel more financially secure, so they increase their spending.
The discount rate is the interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future. Let's say you need $1,000 one year from now to go on vacation. We can use the discount rate to determine how much money you would need to have today to have $1,000 in one year.
Most investment choices involve a tradeoff between risk and reward. The "Efficient Frontier" is a modern portfolio theory tool that shows investors the best possible return they can expect from their portfolio, given the level of volatility they're willing to accept.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Learn about the differences between these two words and how each one is used in the stock market.
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