Stocks

Overview

The closing bell rings at the end of a trading session signifying that the trading day is over. The New York Stock Exchange is one of the few exchanges which still uses an actual bell to end the session. The bell rings at 4pm EST.  The closing bell was first introduced as a way to notify traders that the trading day was over. A bell, when rung, produces a loud noise that was familiar to everyone on the trading floor. There are some traders who will still attempt to complete a deal or two after the bell, but with the exchanges going electronic, this practice is not as prevalent. On Fridays when the closing bell is rung, many traders will shout cheers of happiness for the beginning of the weekend.

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. The logic behind the strategy is that the economy will grow overtime and by avoiding selling during normal cyclical downturns, a trader will ultimately be more successful over a multi-year timeframe. There have been a number of studies done which show that over the long run, stocks outperform any other investment (real estate, bonds, etc.). Until the advent of hedge funds, many large money managers believed that it was silly to move in and out of the market due to increase commissions and the risk associated with each new trade.

Choppy Market

A choppy market is defined as a market without any clear direction. Choppy markets can present themselves after an extended bull or bear market has been in place. When identifying choppy markets, a trader must first locate the highest high and lowest low over a number of sessions. These two swing points will give you your range. The next thing to look for is how well the underlying security trades within this given range. If the security puts up little fight when attempting to break through support or resistance, odds are the stock is in a choppy market.

How to profit in a Choppy Market

There are two methods for profiting in choppy markets. The first method is to buy support and sell resistance. When stocks are choppy, there is not enough supply or demand to push the issues through critical levels. So, if a trader simply buys the support levels and sells resistance, one can net substantial gains.

52-Week Low

The 52-Week Low is a rolling count of the low of the stock over the past 52 weeks.  This of course translates into the yearly low for the stock.  Both fundamental analysts and technical analysts pay close attention to the 52-week low.  This represents a bearish move in the stock.  Some traders utilize a trading strategy where if a stock makes a new 52-week low, the stock should be sold.  The assumption is that the stock will continue lower over the short-term and losses could accelerate.  On the flip side, some speculators will use the 52-week low as a place to buy the stock.  This is due to the fact that a test of a 52-week low will generally produce a news event, thus increasing the public’s fear of the stock.  This increase distaste produces the necessary volume required in order for professional traders to be able to accumulate a large number of shares.  Many large data providers such as Yahoo Finance and Bloomberg will provide a

52-Week High

The 52-Week high is a rolling count of the high of the stock over the past 52 weeks.  This of course translates into the yearly high for the stock.  Both fundamental analysts and technical analysts pay close attention to the 52-week high.  This represents a bullish move in the stock.  Some traders utilize a trading strategy where if a stock makes a new 52-week high, the stock should be purchased.  The assumption is that the stock will continue higher over the short-term and quick profits can be made with ease.  On the flip side, some speculators will use the 52-week high as a place to unload shares.  This is due to the fact that a test of a 52-week high will generally produce a news even, thus increasing the public’s interest.  This increase interest produces the necessary volume required in order for professional traders to unload their shares.  Many large data providers such as Yahoo Finance and Bloomberg will provide a list of stoc

Form 10-Q Overview

The Form 10-Q is submitted by public companies quarterly as required by the U.S. Securities and Exchange Commission. The 10-Q contains financial statements that have not been audited , which provide insight into a company’s financial health throughout the course of the year. Firms are required to disclose the financial statements, management guidance and significant milestones achieved by the corporation. These events can include new product releases and stock events. The 10-Q provides a forward looking assessment of a company’s potential growth. This assists investors in estimating the potential growth of a company over the near future. The 10-Q has gain more popularity over the recent years as a result of ENRON and MCI falsifying there quarterly reports in order to retain investors. It is critical that quarterly statements are done properly, as they can result in restatements.

Form 10-K Overview

The form 10-k is a summary of a company’s performance over a year.  The report must be filed within 60 days after the end of the fiscal year.  Law by the U.S.

What is the January Effect?

The month of January in the stock market has strong significance in predicting the trend of the stock market for the rest of the calendar year.

Free Stock Charts - Top 10 Places to get Free Stock Charts

Why Use Stock Charts

Whether you use fundamental analysis, technical analysis, astrology, or just darts on a board, every investor needs to use stock charts. Stock charts provide you, the investor, a visual depiction of a stock over "x" period of time. This allows you to assess if a stock is in an uptrend or downtrend, which levels are providing support and resistance, and a multitude of other on screen factors. In this article, I will provide you information on the Top 10 sites where you can get free stock charts. Remember, these sites provide free stock charts and the data is often delayed and may not provide all of the tools required to be a successful trader.

What is an ETF ?

ETFs, aka. Exchange traded funds, are similar to mutual funds in that they hold a variety of stocks enabling you to diversify your portfolio.  ETFs are a relatively new product and are one of Wall Street's hottest products out there.  The first brand of ETFs that hit the market were tracking broad market indices, such as the S&P500 or the DOW Jones Industrials.  Every year, the number of ETFs hitting the market is exponentially growing as they offer a quick and easy way to purchase an index or sector that you like.  Many ETFs have spawned as vehicles for trading new indices, overseas markets, individual sectors, fixed income, and even baskets of random stocks.