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What is Short Interest?

StocksShortInterest

By   640 days ago

Short interest is simply the total number of shares of a particular company that have been sold short. Short interest figures are available toward the end of each month in financial publications like Barron’s and the Investor’s Business Daily, as well as online. The significance of short interest is relative. If a company has 200 [...]

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What Are Stocks?

StockCertificate_0

By   640 days ago

A type of financial security that signifies ownership in a corporation that represents a claim on part of the corporation’s assets and earnings. Stocks are in two primary classes. Preferred stocks typically pay regular dividends and are for investors who favor income. Common stocks represent ownership of a company and may offer more rights and [...]

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What is an ETF?

StocksETFs

By   640 days ago

Exchange Traded Funds, or ETF’s, are portfolios of stocks, bonds, or other investments that trade on a stock exchange just the same as regular shares of stock in a corporation. There are over 150 ETF’s for investors to choose from. ETF’s trade like stocks, you can buy on margin and short. Options are available on [...]

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What Are Stock Splits?

StockSplits

By   640 days ago

A type of corporate action where a company’s existing shares are divided into multiple shares. Although the amount of shares outstanding increases by a specific multiple, the total dollar value of the outstanding shares remains the same compared to pre-split amounts. No real market value has been added or subtracted as a result of the [...]

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What are Earnings?

StocksEarnings_0

By   640 days ago

Earnings numbers may be the most studied numbers in a company’s financial statements. They show a company’s profitability. A business’s quarterly and annual earnings are typically compared to estimates made by analysts and guidance provided by the business itself. In most circumstances, when earnings do not meet either of those estimates, share price will go [...]

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Money Management

By   640 days ago

It is up to you, the independent trader, to decide how much capital you are willing to risk trading the markets. Money Management is the most important aspect in trading. It makes a trader succeed or fail. Discipline is vital. There are traders who win 9 out of 10 trades and traders who win only [...]

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What Exactly Are Stocks?

By   640 days ago

A type of financial security that signifies ownership in a corporation that represents a claim on part of the corporation’s assets and earnings. Stocks are in two primary classes. Preferred stocks typically pay regular dividends and are for investors who favor income. Common stocks represent ownership of a company and may offer more rights and [...]

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Technical Analysis View All →

Support

Chart_of_IBMsupport

By   640 days ago

Support is a level located on a chart that indicates demand, where buyers have come in and purchased a security. Price moves down to a certain point, buyers come in and price reverses and begins to move up. This may be enough to keep price from falling further. As price drops to that level, buyers [...]

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Commodity Channel Index – CCI

Chart_of_IBMcci

By   640 days ago

The commodity channel index or CCI, was originally developed to assist in trading the commodity markets by Donald Lambert. The CCI is a momentum indicator. Momentum indicators Many commodities trade in a cyclical fashion, moving up or down based certain seasons or economic activity. The CCI was developed to identify changes in those cycles. The [...]

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Exponential Moving Averages – EMA

Chart_of_IBMma

By   640 days ago

TradeWithPros incorporates 3 moving averages into its educational charting system. Moving averages are the most popular tool in technical analysis. Many indicators, such as the MACD are developed from moving averages. Stocks tend to follow moving averages. Moving averages can provide insight to stock price movement. A moving average is an average of prices created [...]

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Moving Average Convergence Divergence – MACD

Chart_of_IBMMACD

By   640 days ago

MACD is a simple indicator based on moving averages. Gerald Appel designed the MACD to take advantage of the trend following characteristics of moving averages. It measures the difference between two exponential moving averages. TradeWithPros utilizes the default setting, a 12 and 26 moving average, but many traders adjust this setting to suit their own [...]

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Price Resistance

Chart_of_IBMreisistance

By   640 days ago

Resistance is simply the opposite of support, a level where buyers leave the market and selling begins, increasing supply. When price moves up to a certain level, sellers begin selling, price reverses and begins to move down. Supply may be stronger than demand and keep selling prices lower. Buyers refuse to pay higher prices for [...]

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Relative Strength Index – RSI

Chart_of_IBMrsi

By   640 days ago

RSI is another momentum indicator and probably one of the best known. Created by J Wilder it was first introduced in his book New Concepts in Technical Trading Systems, 1978. The RSI compares the magnitude of securities recent gains to recent losses creating overbought and oversold signals. The information is plotted with a range of [...]

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Slow Stochastic – SST

Chart_of_IBMstoch

By   640 days ago

The Stochastic Oscillator is also a momentum indicator. It shows the location of the present market closing price relative the high/low price range set over a number of periods. George Lane developed the stochastic indicator. There are three types of stochastic, Fast, Slow and Full. TradeWithPros utilizes the slow stochastic set at 5,5. When the [...]

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Volume

Chart_of_IBMvolume

By   640 days ago

Volume is the number of trades in a stock or index over a period of time. This time frame may be minutes, days, weeks or even months. On the chart, volume is usually represented by the histogram below the price chart. Do not confuse the colors of the volume histogram with positive and negative numbers. [...]

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Economy View All →

The Discount Rate

By   640 days ago

The Federal Reserve System also directly sets the “discount rate,” the interest rate that banks pay to borrow directly from the Fed rather than other banks. However, banks usually prefer borrowing fed funds from other banks, even at a higher interest rate, rather than directly from the Fed, because that might suggest problems with the [...]

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Important Discount Rate Effect

By   640 days ago

All traders and investors have heard of the Prime Rate, the interest that a bank charges its “best” customers. There is no single prime rate, but the commercial banks generally offer the same prime rate. The Fed does not adjust a bank’s prime rate directly, but indirectly. An increase or decrease in the discount rate [...]

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How Interest Rate Adjustments Affect Stocks

By   640 days ago

When the Fed announces interest rates the market becomes very volatile. For example, if the Fed lowers interest rates from 4.75% to 4.25% it is presumed business expansion would increase consumer spending as growth created jobs. Businesses in turn can borrow money at a cheaper rate and continue to expand to accommodate all of the [...]

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Housing Starts

By   640 days ago

Definition Housing starts measure initial construction of residential units (single-family and multi-family) each month. A rising (falling) trend points to gains (declines) in demand for furniture, home furnishings and appliances. How This Affects Us Housing statistics are very important. They give a good indication on the current state of the economy. Homebuilders for the most [...]

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Gross Domestic Product

By   640 days ago

Definition Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. How This Affects Us GDP measures everything that has to do with [...]

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FOMC Meeting Announcement

By   640 days ago

The Federal Open Market Committee consists of the seven Governors of the Federal Reserve Board and five Federal Reserve Bank presidents. The FOMC meets eight times a year in order to determine the near-term direction of monetary policy. Changes in monetary policy are now announced immediately after FOMC meetings. How This Affects Us These announcements [...]

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Fed’s Main Job

By   640 days ago

The Fed’s main stated goal is to prevent inflation from overtaking the economy. Inflation is a persistent rise in the general price level, as measured against a standard level of purchasing power. This happens when the economy grows too fast. If the economy grows too slow we may see a recession. The Fed controls the [...]

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Federal Funds Rate

By   640 days ago

The most well know function of the Fed, the Federal Funds Rate is just one tool the Federal Reserve uses to influence the nations economy, but the most watched by the average investor and the public in general. The Federal Open Market Committee meets eight times a year to discuss the federal funds rate. The [...]

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