What is a Home Inspection?
A home inspection is performed by a certified home inspector to determine the condition of a property and to find out if there any safety of compliance issues that the home or property may have. Home inspectors are typically hired by real estate professionals and homebuyers when a home is on the market. It is not required except for FHA loan termite inspection requirements, but it is always advisable for a potential home buyer. A home inspection is not to be confused with a home appraisal. Continue reading...
What is the Head-and-Shoulders Top (Bearish) Pattern?
The Head and Shoulders pattern has five points to it. There is the left shoulder, the left side visit to the neckline area, the head, the right side visit to the neckline, and the right shoulder. A head and shoulders pattern appears as a baseline with three peaks, the outside two are close in height and the middle is highest. The image below is an example of the bearish head and shoulders pattern: Continue reading...
How Do You Make a Paper Bitcoin Wallet?
Because bitcoin wallets and balances are little more than a few lines of code, it is often desired to move the wallet offline into paper form. Generally speaking, it is not a difficult process. The way bitcoin transactions work, funds are sent to a specific address that signifies the wallet of the payee. People can possess multiple wallet addresses, which can be quickly generated at no cost, and this is often preferential for security and privacy reasons. Services such as bitaddress.org allow users to generate new wallet addresses and then help users encrypt and print paper versions of the necessary information to keep their bitcoin balances offline for cold storage in physical form. Extensive tutorials on how to do this exist online in forums and videos. Some people like this option because it removes any chance of their wallet being hacked. Continue reading...
How Do You Mine Ethereum?
When mining on the Ethereum blockchain, you are rewarded in Ether, but you may need to do some calculations to find out it if will be profitable for you. Ethereum mining can still be done profitably, as of the time of this writing, by individuals on their home computers, as long as they have decent hardware. This is no longer the case for Bitcoin, Litecoin, and a few other coins, due to the development of ASIC (application-specific integrated circuits) mining rigs used by the nascent mining industry, which have rendered home computers obsolete and have begun to present a significant centralization threat on the decentralized blockchain. Continue reading...
What is the Dead Cat Bounce (Bearish) Pattern?
The Dead Cat Bounce pattern appears when a pair’s price falls quickly but has a temporary “v-shaped” recovery before resuming its downward trend. The temporary bounce (from point 2 to point 3) may be explained by shorters covering their positions, or buying by investors who think the price has already reached a low point. It is important to wait for the confirmation move, which is when the price breaks below the low where the dead cat bounce occurred (point 2). Continue reading...
How to use Open Interest in trading
Open interest, or OI, can be a very important number for futures, options, and other derivative markets, but it can also be important to traders in the traditional stock market. Open interest in derivatives of stocks indicates that there is a deep market for the stock itself, since many of the positions may eventually require the purchase of the stock. Increases and decreases in open interest may help a trader understand if there's significant action in a security's price movements, which can determine liquidity needs as well as whether the price movements are rooted in actual supply and demand characteristics. Continue reading...
What is a Merger?
A merger is the voluntary melding of two companies into one, when the owners believe the change is mutually beneficial. A merger could happen between two companies that were competitors, called a horizontal merger, or between companies who are part of the same supply chain, called a vertical merger. A merger between two companies who are based in the same industry but serve different markets could also be called a market extension. Continue reading...
What Des 'Compounding' Mean?
Compounding refers to when your asset generates interest, and then that interest is reinvested to create additional interest on the now larger amount. Put simply, it’s when your earnings generate additional earnings. Albert Einstein once referred to compound interest as the “greatest mathematical discovery of all time.” Compound interest only requires two things to work: interest and time. Long-term investors that can resist the temptation to touch any of the principal or interest over the life of their investment are sure to reap the magnificent rewards of compound interest. Continue reading...
What does notional value mean?
Notional Value is used in futures, options, and forex markets to describe the total value of the principal of a contract or transaction, especially when either none or only part of that value has actually been exchanged. Notional value is used most often in interest rate swaps and futures contracts, and is "notional" because either no principal changed hands at the beginning of the contract (such as in an interest rate swap), or only a small payment was used to buy a larger position (such as in a futures contract). Continue reading...
How to use the average directional index in trading
Trend traders can use the Average Directional Index (ADX) technical indicator to spot and confirm the strength of a trend in a security, then combine the ADX reading with other indicators to determine whether it makes sense to trade with the trend. Click here to view the current news with the use of other Technical Indicators Technical Indicators are charting tools that appear as lines on charts, or as other kinds of graphical information, and serve as guidelines for buying and selling opportunities. Traders use technical indicators like the ADX to make predictions about future prices. They verify how well a specific indicator works for a particular security, often by calculating the odds of success under similar market conditions to guide their actions. Continue reading...