What does shorting a stock mean in the stock market? Shorting stocks is the opposite of going long. This strategy allows you to make money as a stock falls. Look to sell a stock near resistance levels, which creates a negative position. Then you buy to cover at support levels, your position is closed, and…
What does float mean in stocks? The float of a stock is the number of shares that are actually available to trade. In other words, these are shares the company makes public or shares available for trading on the open market. This is calculated by subtracting the number of shares owned by insiders, employees, and…
What Is Level 2 Stock Trading and How Do You Read It? Level 2 shows the numbers of buyers and sellers waiting on the bid and ask, and time and sales shows the actual orders that have been placed. It gives a good idea of support and resistance levels. When you see large buyers and…
Bollinger bands are also known as volatility bands. Any move that happens outside of them is significant. Stocks are like rubber bands that want to pull back to equilibrium levels. The bollinger band setup has two volatility bands that bracket a moving average line. The bands get wider as volatility increases. This trading technique was…
A kicker pattern is similar to a gap pattern but a bit different. They are either bullish or bearish and signify a reversal. Bullish kickers start with a bearish candle then a bullish gap up. Bearish kickers start with a bullish candle then a bearish gap down. Kicker patterns are reversal patterns used to tell…
What does Level 1 mean when trading? It shows the current number buyers and the sellers real-time and last quote price. The bid price is the highest price that a buyer is willing to pay. The ask price is the lowest amount that a share holder is willing to sell their shares for. Level one…
A marubozu candlestick is a full body either bullish or bearish candlestick. They are larger candlesticks and don’t have any upper wicks or lower shadows. They are typically green or white on stock charts when bullish and red or black on charts when they are bearish. How to Trade Marubozu Candlesticks How to trade marubozu…
Looking for how to place a stop loss order? Each broker has a different order entry system but the process is similar. 1st: purchase shares of a stock. 2nd: go to your filled order and create a stop order. There are several types of stop orders to choose from. Stop loss, stop limit, and also…
What Are the Basics of the Stock Market? What are the basics of the stock market? If you’re looking to get started as a trader, then there are several key components that you need to be aware of. First, you need to determine your trading style. Will you be a day trader, swing trader, or…
Stocks vs options and which strategy is better? That all depends on your trading style and risk tolerance. Stocks allow you to buy shares of the security at the amount times number of shares purchased. Options allow you to trade the stock without having to put out the full amount of capital. You purchase an…
Start Your Free Trial
Download Our Free eBook
