The best rewards on a stock are typically with a hold time of between 50 to 300 days. It takes time for good profits to develop, and they certainly do not happen overnight unless you are fortunate.
The best time to buy stocks is in October, and the best time to sell stocks is in July, according to our research using 53 years of stock market data.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.
Our research shows overconfidence is the biggest reason traders lose with margin trading. Trading on margin trading involves borrowing money from a broker to purchase stock, allowing traders to buy more stocks, amplifying potential gains or losses.
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.
Portfolio diversification is a crucial aspect of sound investment management. By properly implementing this strategy, investors can balance risk and reward, ultimately positioning themselves for long-term financial success.
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