While it’s pretty standard for investments to hold their positions long term, trades are more short-term in their thinking. An intraday trader may make one or even several trades during a trading day; a scalper could make hundreds or even…
If only trading was as simple as buying support and selling resistance. Daily support and resistance levels can provide traders with potential entry and exit points. The real question then becomes, how can someone calculate where to find support and resistance? The incredible…
Corporate profits, including quarterly earnings, are regularly released for eager market watchers. The eagerly anticipated new season starts in mid-April. Usually, the information is priced in with analyst consensus numbers, with the over/under level to follow. Earnings and revenue numbers above…
One of the primary drivers of an option’s value is implied volatility, or IV. Just as with a stock, the goal might be to buy low and sell high, as it’s usually with options. But that’s not always the case. Buying…
While charts are extremely useful for identifying market trends and possible levels of support and resistance, they do have their limitations. Perhaps the biggest limitation of a traditional chart is the fact that it doesn’t depict volume, but rather just prices…
Markets fluctuate based on many factors including risk appetite or risk aversion, fear, greed, and economic or geopolitical influences. There are so many key data points every month that can drive market action and influence monetary policy. Here is a brief…
The use of moving averages is very popular among both short-term traders and long-term investors. Moving average crossovers can provide a clear picture of market trends, while also demonstrating lack of trends or sideways price action. Traders tend to have preferences…
You’re probably buying puts because you want to mitigate risk or hedge a long position. Sure, it might make sense most of the time, but there are certain market scenarios where it just doesn’t make sense. So if you find…