What are Algorithms (Algos)? Algorithms (Algos) are a set of instructions that are introduced to carry out a specific task. Algorithms are introduced to automate trading to generate profits at a frequency impossible to a human trader. The process is referred to as algorithmic trading, and it sets rules based on pricing, quantity, timing, and…
Guide to Commodity Trading Secrets Successful commodity traders know the commodity trading secrets and distinguish between trading different types of financial markets. Trading commodities is different from trading stocks. It’s a different game, but a game worth learning for investors. Every investment instrument is unique in terms of how best to generate profits from trading it….
What is Speculation? Speculation is the buying of an asset or financial instrument with the hope that the price of the asset or financial instrument will increase in the future. Speculative investors tend to make decisions more often based on technical analysis of market price action rather than on fundamental analysis of an asset or…
What is the Dow Jones Industrial Average (DJIA)? The Dow Jones Industrial Average (DJIA), also commonly referred to as “the Dow Jones” or simply “the Dow,” is one of the most popular and widely recognized stock market indices. It measures the daily stock market movements of 30 U.S. publicly-traded companies listed on the NASDAQ or…
What is Risk and Return? In investing, risk and return are highly correlated. Increased potential returns on investment usually go hand-in-hand with increased risk. Different types of risks include project-specific risk, industry-specific risk, competitive risk, international risk, and market risk. Return refers to either gains or losses made from trading a security. The return on…
What is a Daily Trading Limit? The daily trading limit refers to the maximum amount by which the price of a stock or other exchange-traded security can rise or fall during a trading session. The limits are decided by the exchange in an attempt to avoid extreme volatility or manipulation in the markets. Once a daily limit price…
What is a Resistance Line? A Resistance line, sometimes also known as a Speed Line, helps identify stock trends and levels of support and resistance. Resistance lines are technical indication tools used by equity analysts and investors to determine the price trend of a specific stock. They are very useful in predicting the probable movement…
What is a Ticker? A ticker is a symbol, a unique combination of letters and numbers that represent a particular stock or security listed on an exchange. The symbol is used to refer to a specific stock, particularly during trading. Trades are executed based on a company’s ticker symbol, which is recorded in the exchange’s trading system….
What are Private Equity Funds? Private equity funds are pools of capital to be invested in companies that represent an opportunity for a high rate of return. They come with a fixed investment horizon, typically ranging from four to seven years, at which point the PE firm hopes to profitably exit the investment. Exit strategies include IPOs…
