Archive for the ‘Stock Research’ Category

Put options

Put options give the buyer the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to buy shares. If you choose to buy or ...

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Call Options

Call options are agreements that give an investor the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period. The agreed upon price of the exchange is called the strike price. The date on which the agreement expires ...

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Asset Allocation with ETFs

Investors should spend most of their time on overall asset selection and ignore individual stocks for the most part. according to research, about 95% of money managers' performance can be explained by their selection of asset classes, not by their selection of individual stocks. Asset allocation is not necessarily easy, ...

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ETF – Exchange Traded Fund

An exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Most ETFs ...

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The primary types of financial options

The primary types of financial options are: Exchange traded options (also called "listed options") are a class of exchange traded derivatives. Exchange traded options have standardized contracts, and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Since the contracts are standardized, accurate pricing models ...

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Parabolic SAR (SAR – stop and reverse)

Parabolic SAR (SAR - stop and reverse) is a method devised by J. Welles Wilder, Jr, to find trends in market prices or securities. It may be used as a trailing stop loss based on prices tending to stay within a parabolic curve during a strong trend. The concept draws on ...

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The Elliott wave principle

The Elliott wave principle The Elliott wave principle is a form of technical analysis that attempts to forecast trends in the financial markets and other collective activities. It is named after Ralph Nelson Elliott (1871–1948), an accountant who developed the concept in the 1930s: he proposed that market prices unfold in ...

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What is Commodity Channel Index (CCI)?

The Commodity Channel Index (CCI) is an oscillator originally introduced by Donald Lambert in an article published in the October 1980 issue of Commodities magazine (now known as Futures magazine). Since its introduction, the indicator has grown in popularity and is now a very common tool for traders in identifying cyclical ...

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Stock Chart: Double Tops and Bottoms

A much more common reversal pattern is the double top or bottom. Next to the head and shoulders, it is the most frequently seen and the most easily recognized.   Example of a bouble top. This pattern has two peaks ...

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The Ways to Minimize the Risk in the ETF Trade

Here are some tips for trading ETFs in a wildly gyrating market. Choose Carefully Investors trying to gauge which ETFs are cheapest and easiest to trade need to keep two factors in mind: how frequently the stocks or bonds that make up the ETF trade, and how frequently the ETF itself trades.The ...

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