Stock Trading

A collection of our best articles and lessons on stock trading. Here you will learn the skills strategies and techniques of the day trader, swing trader, and position trader.

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.

What is the Power Hour in Stocks?

The Power Hour in stocks is a one-hour session at the beginning and end of the trading day when stock trading volume is at its highest. The Power Hour is when market volatility is highest.

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...

What is FOMO in Stocks? 10 Ways To Deal with Investing...

FOMO, or Fear of Missing Out, is a phenomenon in which investors are spurred by the fear that they might miss out on potential gains from stock investments. This feeling can cause people to make decisions without adequate research or consideration of risk, leading to poor investment choices.

5 Best Swing Trading Strategies: Backtested & Executed

The 5 important swing trading strategies are trend following, support and resistance, breakouts, momentum, and reversals. Automating the identification, testing, and execution of these strategies is the key to successful swing trading.

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.

What Is Swing Trading? A Fact-Based Guide for Beginners

Swing trading is a popular investment strategy that capitalizes on short-term price movements. Unlike day trading, which focuses on quick trades within a day, swing trading is more profitable, capturing larger price movements over days to weeks.

3X Leveraged ETF Trading Strategy & Best ETFs to Trade

Gain insights from a seasoned ex-Wall Street trader with 40 years of experience, as he imparts knowledge on leveraged 3X ETF trading. Explore the intricacies of risks, rewards, and effective strategies.

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%.

TradingView Review 2024: Tested by LiberatedStockTrader

LiberatedStockTrader's review testing awards TradingView 4.8 stars due to excellent stock chart analysis, pattern recognition, screening, and backtesting. TradingView is our top recommendation for US and international traders.

Stock Rover Review 2024: Tested by LiberatedStockTrader

LiberatedStockTrader's review testing awards Stock Rover 4.7 stars. Its advanced screening, research, and portfolio tools are ideal for US value, income, and growth investors. With 650 financial metrics on 10,000 stocks and 44,000 ETFs, we rate Stock Rover the number one stock screener.

Trade Ideas Review 2024: AI Tested by LiberatedStockTrader

LiberatedStockTrader's review testing awards Trade Ideas 4.7 stars. Its stock scanner and proven Holly AI algorithms are the most advanced and trustworthy auto-trading software for day traders.

TrendSpider Review: Big 2024 Updates! Is It Now The Best?

Our TrendSpider testing finds it is ideal for US traders wanting AI-automated charting, pattern recognition, and backtesting of stocks, indices, futures, and currencies.

Benzinga Pro Real-time News Tested by LiberatedStockTrader

Our testing shows Benzinga Pro is best for US traders who want a high-speed, actionable, real-time news feed at 1/10th of the price of a Bloomberg terminal. I recommended Benzinga Pro for active day traders and investors who trade news events.

MetaStock Review 2024: Tested by LiberatedStockTrader

Our MetaStock review and test reveal an excellent platform for traders, with 300+ charts and indicators for stocks, ETFs, bonds & forex globally. Metastock has solid backtesting and forecasting, and Refinitiv/Xenith provides powerful real-time news and screening.