Investing Strategies

What is an Investment Strategy?

What are Defensive Stocks

What is Pyramiding?

Trading in a volatile market can be very challenging, regardless if a trader is going long or short in the market.  Since the majority of investors are not actively trading stocks, they can often find themselves on the wrong side of the trade as stocks are pushed to their limits.  So,

Cyclical Stocks Definition

Cyclical stocks are securities that respond to economic issues on a seasonal or cyclical basis.  For example, when the demand for gold increases during the Indian holiday season, many gold issues will experience an annual bounce due to the increase demand.

Why are some Stocks Cyclical

Fading the Market

How Does Pre-Market Trading Work?

What is a Trading Range?

A trading range is when a security trades within a given high and low period for a given period of time.  This back and forth price movement between extremes generates a trading range. 

How are Trading Ranges Formed?

Definition of Buy back

Buy back is the process of a company repurchasing its issued shares.  This can come in the form of repurchasing stocks and bonds.  This buy back effort reduces the number of outstanding shares and gives the remaining shareholders a larger stake of ownership in the company.

Why Do Buy backs Occur?

Bottom Up Investing definition

What is Top Down Investing

Top down investing is the process of first assessing the health of the broader market before analyzing individual securities.  This trading methodology is based on the premise that if an investor trades in the direction of the larger trend, it greatly increases the odds of putting on a winning trade.

What is Dollar Cost Averaging (DCA)

Why Lock In Profits

Asking the question of why to lock in profits, is really a silly question when one thinks about it.  The whole point of trading is to make money, and locking in profits is in synch with this line of thinking.  While this sounds so elementary, the vast majority of traders are unable to do this on a consistent basis.  We have all heard t

Cash Trading Overview

Cash trading is a term used to describe a speculator that only trades with the cash on hand and does not use any margin.  Cash trading today sounds like something out of an ancient manuscript.  As more people hav

Overview

Buy and Hold is a basic investing strategy where investors buy and hold a security for an extended period of time. The belief is that it is better to allow a security the opportunity to grow over time, versus attempting to trade in and out of a stock for quick gains. Buy and hold traders see stocks as investments and are not concerned with timing each move.