Trading

Trading

  1. Explanation of Trade Types
  2. Top 10 Rules for Successful Investing: https://www.investopedia.com/articles/trading/10/top-ten-rules-for-trading.asp
  3. Investment Strategies for Extremely Volatile Markets: https://www.investopedia.com/articles/trading/08/strategies-for-volatile-market.asp
  4. Could Trading Like a Member of Congress Be Your Next Big Investment Strategy? https://www.investopedia.com/how-to-invest-like-congress-11753159
  5. The Financial Mavericks: Discover the Stories Behind the World’s Most Renowned Traders: https://www.investopedia.com/worlds-most-famous-traders-11678399
  6. Weekend and Holiday Trading: What You Can and Can’t Do in 24-Hour Markets https://www.investopedia.com/weekend-and-holiday-trading-what-you-can-cant-do-11758203

Commodity Trading

Commodities are raw materials ranging from oil, gold, and copper, to agricultural products including wheat, soybeans, and coffee. They are often considered an alternative investment and can be traded on dedicated exchanges through futures contracts or through investment vehicles like mutual funds and ETFs.

Position Trading

A position trader buys an investment for the long term in the expectation that it will appreciate in value. This type of trader is less concerned with short-term fluctuations in price and the news of the day unless they alter the trader’s long term view of the position.

  1. https://www.investopedia.com/terms/p/positiontrader.asp

Circuit Breaker

An emergency-use regulatory measure that temporarily halts trading on an exchange.

Temporarily measures that halt trading to curb panic-selling on stock exchanges.

Circuit breakers attempt to curb in panic-selling and can also be triggered on the way up with manic-buying.

https://www.investopedia.com/terms/c/circuitbreaker.asp

Buy a Bounce

Buy a bounce is a trading strategy that focuses on buying a given security once the price of the asset falls toward an important level of support.

https://www.investopedia.com/terms/b/buyabounce.asp

Basis Trading

In the context of futures trading, the term basis trading refers generally to those trading strategies built around the difference between the spot price of a commodity and the price of a futures contract for that same commodity. This difference, in futures trading, is referred to as the basis. If a trader expects this difference to grow, the trade they will initiate would be termed “long the basis”, and conversely, a trader enters “short the basis” when they speculate that the difference will decrease.

https://www.investopedia.com/terms/b/basis-trading.asp

Extended Trading

Extended trading is conducted by electronic exchanges either before or after regular trading hours. Volume is typically lower, presenting risks and opportunities.

https://www.investopedia.com/terms/e/extended_trading.asp

Record high

A record high is the highest historical price level reached by a security, commodity, or index during trading.

https://www.investopedia.com/terms/r/record_high.asp

Trend Trading

https://www.investopedia.com/terms/t/trendtrading.asp

Pairs Trade

A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation.

https://www.investopedia.com/terms/p/pairstrade.asp

Momentum trading

https://www.investopedia.com/terms/m/momentum.asp

Market timing

Market timing refers to the supposed ability to forecast whether the market is at a peak or in a valley, and to profit from that prediction.

  1. https://www.sofi.com/article/money-life/deep-dive-241218/
  2. Market Timing: What It Is and How It Can Backfire https://www.investopedia.com/terms/m/markettiming.asp
  3. Buy-and-Hold Investing vs. Market Timing: What’s the Difference? https://www.investopedia.com/articles/stocks/08/passive-active-investing.asp
  4. Market Timing Tips Every Investor Should Know: https://www.investopedia.com/articles/active-trading/043015/market-timing-tips-rules-every-investor-should-know.asp
  5. Trading Is Timing: https://www.investopedia.com/articles/trading/06/tradingistiming.asp

Gap Trading

Gap Trading: How to Play the Gap: https://www.investopedia.com/articles/trading/05/playinggaps.asp

Day Trading

Day trading is a fast-paced form of investing in which individuals buy and sell securities within the same day. The goal is to profit from short-term price movements in stocks, options, futures, currencies, and other assets

  1. https://www.investopedia.com/articles/trading/05/011705.asp
  2. Is Day Trading Profitable? https://www.investopedia.com/articles/active-trading/053115/average-rate-return-day-traders.asp
  3. 10 Day Trading Tips for Beginners Getting Started https://www.investopedia.com/articles/trading/06/daytradingretail.asp
  4. 12 Rules for Picking Stocks in Intraday Trading https://www.investopedia.com/day-trading/pick-stocks-intraday-trading/
  5. Investing vs. Trading: What’s the Difference? https://www.investopedia.com/ask/answers/12/difference-investing-trading.asp
  6. Day Trading vs. Swing Trading: What’s the Difference? https://www.investopedia.com/articles/active-trading/052815/pros-cons-day-trading-vs-swing-trading.asp
  7. Risk Management Techniques for Active Traders https://www.investopedia.com/articles/trading/09/risk-management.asp

Inverse Head and Shoulders

This is a concept related to trading.

The inverse head-and-shoulders pattern is a major reversal signal that forms at the end of a downtrend. It has three successive troughs, with the middle trough being the deepest.

https://www.investopedia.com/terms/i/inverseheadandshoulders.asp

TODO

  1. A Day in the Life of a Portfolio Manager https://www.investopedia.com/articles/professionals/042413/day-life-portfolio-manager.asp
  2. Nasdaq-100 Pre-Market Indicator: How It Works, Pros and Cons https://www.investopedia.com/terms/n/nasdaq100-premarket-indicator.asp
  3. Trading Hours for the World’s Major Stock Exchanges https://www.investopedia.com/ask/answers/040115/when-do-stock-market-exchanges-close.asp
  4. How to Take Advantage of in Pre-Market and After-Hours Trading https://www.investopedia.com/articles/investing/050313/activities-you-can-take-advantage-premarket-and-afterhours-trading-sessions.asp
  5. Does After-Hours Trading Affect Stock Prices? https://www.investopedia.com/ask/answers/05/saleafterhours.asp
  6. What Is After-Hours Trading, and Can You Trade at This Time? https://www.investopedia.com/ask/answers/after-hours-trading-am-i-able-to-trade-at-this-time/
  7. Weekend and Holiday Trading: What You Can and Can’t Do in 24-Hour Markets https://www.investopedia.com/weekend-and-holiday-trading-what-you-can-cant-do-11758203
  8. Is 24-Hour Trading Right for You? Understanding the Risks and Rewards https://www.investopedia.com/24-hour-stock-trading-8740400
  9. Pre-Market and After-Hours Trading https://www.investopedia.com/ask/answers/06/preaftermarket.asp

Links to this note