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Take a look at our extensive collection of articles and content designed to help you understand
the different concepts within trading, investing, retirement planning, and more.
Stocks
Buying stocks is one of the most basic ways to invest. Learn the nuts and bolts of analyzing, selecting, and trading stocks.
Companies typically initiate stock splits when their share price has risen to an unusually high level. The split is generally intended to help make the stock more affordable to a wider range of retail investors. Read on to learn more.
The world of day trading can be exciting. Day traders are unlike many other investors because they only hold their securities—as you would expect from the name—for a day.
Whether you are interested in long stocks, spreads, or even naked options, there are several requirements that are important for you to be aware of before you get started. Knowing these requirements will help you make the right day trading decisions for your strategy.
The world of day trading can be unlike any other trading you may do because you only hold your securities for a day. If you think day trading may be for you, it’s important to understand the process so you'll be prepared if you decide to place this type of trade.
There are many adages in the trading industry. A few of them are: “Buy low; Sell high”; “Nobody ever went broke ringing the cash register”; and “Bears and Bulls make money, but Pigs get slaughtered.” Interestingly, there is a motif underlying all of these sayings, and it has to do with managing risk.
Selecting stocks should never be a guessing game. In this article, we offer three guidelines that can help you take a systematic approach to finding stocks that fit your strategy.
Placing a stock trade is about a lot more than pushing a button and entering your order. This brief video can help you prepare before you open a position and develop a plan for managing it.
Fundamental analysis is the cornerstone of investing. The health of a company and its stock are important factors to consider when trading.
EPS, or earnings-per-share, helps you understand the profitability of each company. Learn how to use EPS in just one minute.
In this video, we'll answer the question, “What is fundamental analysis?” Learn how this process can help you evaluate the economic health and financial performance of the companies in which you may want to buy or sell stock.
Simply put, technical analysis attempts to measure the supply of, and demand for, a stock. Learn more about how you can use this technique in this brief article.
Most technical analysis is performed by observing and interpreting charts. A chart is a historical record of stock price movements plotted over a time period, like one day, one year, one decade, or even longer.
One of the assumptions of technical analysis is that history repeats in the stock market. One example of this is recurring patterns in historical stock prices. These price patterns are essentially shapes that sometimes appear on stock charts.
Among all the aspects of technical analysis, perhaps the most important and actionable concepts are support and resistance. Many other aspects of technical analysis, such as price patterns, are based on the key concepts of support and resistance.
One of the three assumptions of technical analysis is that stock prices tend to move in trends. Another way to think about this assumption is by borrowing from the world of physics and Sir Isaac Newton’s laws of motion. In particular, Newton’s law of motion states that an object in motion tends to stay in motion unless acted upon by an opposing force.
You may find a cash account beneficial for your investing needs because you can use it to buy stocks, bonds, or even mutual funds and these securities are owned by you.
There are rules you should be aware of when trading in cash accounts. One rule of cash accounts is when you buy securities, you must fully pay for the securities on or before the settlement date. If you aren’t fully paid by then, you could create good faith or freeride violations.
The advanced charting capabilities in Power E*TRADE provide more than 120 studies and over 30 drawing tools designed to help you identify these trends and patterns. Let’s look at three particular studies that are available in Power E*TRADE and often used by traders.
Power E*TRADE contains powerful advanced charting and technical analysis tools that can offer insight into potential price moves. These features may inform your trading strategies and help you uncover price patterns, discover potential entry and exit points, spot possible trade opportunities, and more. Let’s take a closer look at how to use three of these key tools and capabilities.
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