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What is Capital Appreciation?
Capital appreciation is an increase in the value of an owned stock. Capital Appreciation occurs when the market price of a stock you own increases. For more information on stock prices, see "Why Does the Price of a Stock Change?" Until you decide to sell the shares, you have what is called Unrealized Gains on Capital Appreciation. Something to be wary of: having unrealized gains can be summed up with the old English proverb, "don't count your chickens before they hatch." Continue reading...
What is swing trading?
Swing trading is active trading that is not frequent enough to be categorized as day-trading but generally follows short-term trends. Swing trading can describe long or short positions traded on upswings and downswings of a security or index, and these positions are generally held from one day to two weeks. Generally, these are going to be momentum investments which are entered into after there seems to be confirmation of a trend, and the positions are closed out when there seems to be confirmation that the trend has ended. Continue reading...
What are the pros and cons of hedge fund investing?
Hedge funds are sometimes the highest-earning investment vehicles, and sometimes they do that much worse than everything else. They have a high buy-in, low transparency, and limited liquidity. There are also other advantages and disadvantages worth mentioning. A good hedge fund can provide you with an excellent diversification of your investable assets and give you exposure to the best and brightest money managers in the world. Continue reading...
How Often Can I Change the Allocation in My 401(k)?
By law, your plan administrator (employer) must allow you to change your allocation at least quarterly, but most plans allow for more frequent changes. Generally speaking, you can change your allocations as often as you need to with no commissions or fees; that is, up to a point. Many plans start to impose fees after about the 10th reallocation, and partially this is meant to discourage over-trading. Continue reading...
What is the DAX?
The DAX is an index tracking performance of German stocks. The DAX is an index that tracks the 30 largest capitalization stocks that trade on the Frankfurt Stock Exchange in Germany. The index is capitalization weighted, but since it is so narrow it is more comparable to the Dow Jones than the S&P 500. It does not necessarily give a thorough indication of how the German economy is performing. What is the CAC 40 Index? What is the EURO STOXX 50? Continue reading...
What are the three most commonly used Forex chart patterns?
Discover the power of common forex chart patterns: Head and Shoulders, Triangles, and Engulfing Patterns. Maximize entry, stop, and profit targets. Plus, explore the dynamic Ichimoku Cloud Bounce strategy for unparalleled trading insights. Gain a competitive edge today. #ForexTrading #ChartPatterns Continue reading...
How can one utilize Bullish Candlestick Patterns for buying stocks?
Candlestick charts, which trace back to the age-old Japanese rice trade, have transitioned seamlessly into contemporary stock price charting. These charts are not only visually more appealing than the conventional bar charts but also make price actions more comprehensible. Especially for technical day traders, these patterns are essential in recognizing trends and making well-informed trading decisions. Continue reading...
What Led to the Decline of J.C. Penney's Stock?
J.C. Penney, an iconic name in American retail, faces turbulent times. With its stock plummeting to historic lows and the shadow of competitors' failures looming, is there hope on the horizon? This analysis delves into the factors influencing J.C. Penney's stock trajectory, from economic challenges to internal strategies. Discover the company's financial maneuvers, its position in the broader retail landscape, and the potential paths it might take in the coming years. Whether you're an investor or just curious about the fate of a retail giant, this exploration offers insights into the complexities of the modern retail market. Continue reading...
What Is Trend Trading?
Trend trading is a trading style that attempts to capture gains through the analysis of an asset's momentum in a particular direction. It's all about identifying and profiting from trends in the financial markets, whether they are moving upwards (uptrends) or downwards (downtrends). In this article, we will delve into the intricacies of trend trading and the strategies employed by traders to make the most of these trends. Continue reading...
What is the Nasdaq Composite Index designed to measure?
Explore the Nasdaq Composite Index, a vital global stock market benchmark with over 3,700 stocks. With heavy weighting in tech and inclusion of both domestic and international companies, it's a key indicator of market health. Dive into its composition, relevance, and unique features in our detailed guide. Continue reading...