The Realities of Margin Trading Investigated & How to Avoid Lossess.
Our research shows that overconfidence and a lack of a robust trading plan are the biggest reasons traders lose when trading with margin or leverage.
The Best Month to Buy Stocks: 53 Years of Analysis
According to our research, using 53 years of stock exchange data, the best time to buy stocks is in October, and the best time to sell stocks is in July.
Stock Order Types: Using Market, Limit & Trailing Stops in Trading
Limit, market, and stop limit orders, help ensure you get the best possible stock purchase price. Stop limit, stop market, and trailing stop orders help sell your stocks for profit or limit your risk.
How Long Should You Hold A Stock? Research & Facts
According to my research, during a bull market, investors should hold a stock for between 50 and 300 days to allow profits to develop optimally. The ideal hold time for swing traders is 45 days for an average profit of 30%.
Short Sale Rule (SSR) / Uptick Rule Explained
When a stock's price declines significantly, the SSR triggers a temporary restriction that prevents investors from shorting the stock unless the price is above the current highest bid. This measure aims to stabilize financial markets during volatile trading sessions and protect listed corporations from potentially manipulative trading practices.
Lot Size Meaning in Finance: Understanding Market Quantities
Lot size refers to the standardized number of units of a security or asset involved in a transaction. Lot sizes facilitate a smoother functioning of financial markets by ensuring uniformity in trade volumes.
Freeriding in Stocks: Avoiding Good Faith Violations & Risks
Freeriding in stocks involves a trader purchasing shares or other securities and selling them before the initial transaction has settled, effectively using capital that does not yet exist in the account. It can lead to significant penalties for uninformed investors.
Stock & Share Prices: Open, Close Bid, Ask & Spread Explained
The terms "stock price" and "share price" are used interchangeably in finance. However, pricing equities involves a wealth of additional terms, including the open, high, low, close, ask, bid, and spread.
Stock Leverage: The Risk & Rewards of Margin Accounts
Using stock leverage, which involves trading stocks with a margin account, leveraged ETFs, or stock options, can be a double-edged sword. It has the potential to magnify both your gains and losses.
What Are Points in Stocks, Bonds, Futures & Forex?
A one-point move in a stock price equals a one-dollar change. When someone says a stock is down two points, its price has declined by two dollars. Points in a stock index are similar to points in a stock, but instead of referring to the actual stock price, they refer to an index's performance.
Average Up & Average Down in Stocks Explained
To average up and down in stocks, buy more shares at a lower price when the stock price drops (averaging down) or fewer shares at higher prices when it rises (averaging up). This technique capitalizes on market movements with limited risk by lowering the cost basis and potentially increasing returns over time.
Can You Owe Money on Stocks?
Yes, you can owe money on stocks if you buy stocks through a margin account. A margin account allows you to borrow money from your broker to buy more stocks than you could with just the cash in your account. If your trade moves against you, you could end up owing money.
Can You Buy and Sell Stock on the Same Day?
Yes, you can buy and sell the same stock on the same day four times weekly in the USA. If you day trade more often, you must follow the FINRA rules on Pattern Day Trading (PDT), which means being a registered day trader and having a $25K minimum account balance.
How To Buy Stocks Online Without A Broker
You can buy stocks online without a broker using a transfer agent, a direct purchase plan, a dividend reinvestment plan, or your company's stock purchase plan. Alternatively, you can use a commission-free brokerage.
How old do you have to be to buy stocks?
Individuals need to be 18 years old to trade stocks. However, parents can open a custodial account with a brokerage for a minor and...
Dollar Cost Averaging (DCA): Examples & Strategies
Dollar cost averaging is an investment strategy that divides the total investment amount across periodic purchases, reducing risks from lump-sum investments and capitalizing on market price variations.
Track Your Trades With Our Free Excel Stock Tracker
Our Excel stock tracker tool is an easy way to manage your investments. With our Excel stock tracker, you can keep track of portfolio performance, analyze financial data, and more.
Sell In May And Go Away! Is It True? Debunking the...
Our 60 years of research shows that the stock market maxim "Sell in May and go away" is misleading and detrimental to your investing performance. The 60-year average return of June, July, and August outweigh any losses incurred during bad years.
Common vs. Preferred Stock: Strategy Differences & Examples
Common stock has voting rights and price appreciation in line with market prices, whereas preferred stock does not. However, preferred stock has higher priority dividend payments and liquidity rights in case of insolvency. The downside of preferred stock is that it has no voting rights, and they are callable.
How Many Stocks Should I Own? What the Academic Research Says
According to four academic research papers, you should own at least 10 stocks to achieve 90% diversification. If you own 20 to 30 stocks, your portfolio will perform better than average.
Our Best Training & Strategies
Liberated Stock Trader Pro: Learn Stock Market Investing
Learn stock market investing with the complete online stock trading course by Barry D. Moore, a certified financial analyst from the International Federation of Technical Analysts (IFTA).
ETF Investing Strategy: MOSES Improves Performance & Lowers Risk
The MOSES ETF investing strategy is a powerful suite of indicators meticulously backtested over 100 years. Designed to empower you to outperform the market, it equips you with the tools to navigate major stock market crashes and unlock greater investing performance.
Our LST Strategy Beat the Stock Market’s S&P 500 By 102%...
Decades of research and testing unveiled the Liberated Stock Trader Beat the Market System. Our 9-year, backtested, and proven strategy targets 35 financially healthy high-growth stocks, producing a track record of beating the S&P 500 by 102%.