Timothy Sykes is regarded by many as one of the leading penny stocks traders in the world. His revolutionary trading system is anything but conventional. He outwardly eschews ‘slow growth’ in...
https://www.howthemarketworks.com/3-tips-that-equities-investors-should-learn-from-tim-sykes/
There are lots of fears about how the Bitcoin price keeps on dropping even after months. This is one problem that is causing lots of nightmares to every investor who is taking part in the market ...
https://www.howthemarketworks.com/why-bitcoin-analysts-continue-to-remain-bullish/
The bitcoin market is one that has always been volatile over the years. This is a major factor responsible for its constant price changes leading to lots of investors experiencing losses in the m...
https://www.howthemarketworks.com/bitcoin-prices-bumping-up-again/
Blockchain technology is a disruptive solution with the potential to solve some of the world’s biggest problems by introducing a never-experienced layer of transparency, accountability, and con...
https://www.howthemarketworks.com/sidechains-scalability-on-top-of-bitcoins-network/
Millions of people buy and sell Bitcoin in the conviction that cryptocurrency, in general, is the future of money. Bitcoin as the first cryptocurrency planted the idea that digital currencies cou...
https://www.howthemarketworks.com/five-ways-to-buy-and-sell-bitcoin-in-different-use-cases/
When it comes to online payment methods, PayPal is believed to be one of the widely used payment mediums around the globe. Whether you’re buying anything from an e-store or want to make a payme...
https://www.howthemarketworks.com/its-2019-heres-what-you-need-to-know-about-paypal-forex-brokers/
Most people know that cryptocurrencies are a means of exchange. What is lesser known is that cryptocurrencies serve a variety of other purposes besides transferring value. If you are planning to ...
https://www.howthemarketworks.com/types-of-cryptocurrency-and-which-ones-are-the-best-to-get-into/
Dollar Cost Averaging Investing in the stock market involves a lot of unpredictable factors. So many first time investors get scared off by not knowing what stock(s) to buy at what time. Timing t...
https://www.howthemarketworks.com/dollar-cost-averaging-the-easy-low-risk-investing-strategy/
All successful traders were newbies sometimes, who studied trading from the very foundations. The experience and success came in time. While many of them are self-taught, there are now many onlin...
https://www.howthemarketworks.com/trading-tactics-on-forex-for-beginners/
The price of cryptocurrency is volatile, and the volatility could see prices trade upwards or downward rapidly within minutes or hours. In January 2018, Bitcoin was trading around $17,000; over t...
Leveraged ETFs: The What There’s always more to know when it comes to investing. Leveraged ETFs are a relatively new financial tool that, while somewhat complex and high risk, can be extremely ...
https://www.howthemarketworks.com/leveraged-etfs-how-to-maximize-short-term-returns/
That is one of the leading questions anyone considering forex trading asks. The simple answer is yes you can, but the reality is that it depends. The best way to enumerate this is to start with a...
https://www.howthemarketworks.com/can-get-rich-forex-trading/
You would have heard about discipline. In fact, disciplined behavior must be something that you have previously encountered. But what about a disciplined trading mindset? Have you heard of it? It...
https://www.howthemarketworks.com/discipline-trading-mindset/
Everyone wants to lead their dream life. People wake up very early in the morning thinking about how to can secure their financial freedom. Due to the global economic crisis, finding the perfect ...
https://www.howthemarketworks.com/three-key-strategies-need-know-currency-trader/
You may or may not have heard about Stellar Lumens already, it is a cryptocurrency that is causing a great deal of excitement among users and investors alike. This guide will take you through eve...
https://www.howthemarketworks.com/innovation-accessibility-buy-stellar-lumens/
It has often been said that debt is one of the ugliest four letter words on the planet. Truth be told, the biggest empires have been built on debt-fueled financing. All big-ticket purchases requi...
https://www.howthemarketworks.com/living-better-less-manage-finances/
For a new investor Contracts for Differences (CFDs) are where it starts to get complex. Sure, the start of an investment journey can seem overwhelming at first. But after the initial establish...
https://www.howthemarketworks.com/everything-need-know-trading-cfds/
You might be considering a roof repair for a number of reasons. Perhaps you have been planning to replace your roof with a new one for a while now, and are prepared for the cost. You may have to ...
There are so many different ways for a person to build wealth over time. Finding the right investments is a key part of achieving your financial goals. In order to find the right investments, you...
https://www.howthemarketworks.com/trying-find-right-forex-broker-consider-5-tips/
Five years ago, most people didn’t have a clue what cryptocurrencies were. Ask the average man on the street about bitcoin and he would have raised his eyebrows and said “huh?”. Fast forwar...
https://www.howthemarketworks.com/will-cryptocurrencies-affect-markets-businesses-2018/
Financial stability is a highly desired commodity for both individuals and businesses, and in both cases, money management is often a key to that stability. Multi-million dollar businesses don’...
https://www.howthemarketworks.com/manage-finances-like-multi-million-dollar-business/
The GBP/USD pair is currently trading at 1.3205, close to its 52-week high of 1.34427. The sterling has enjoyed an imperious run of form in 2017, starting at around 1.23, and gaining approximatel...
https://www.howthemarketworks.com/can-sterling-hold-current-levels/
There’s been a lot going on in the technology sector lately, with the NVIDIA Corporation (NASDAQ: NVDA) sell off and the selloff in late June after Alphabet Inc Class A (NASDAQ: GOOGL) got hit ...
https://www.howthemarketworks.com/volatility-come-back-tech-sector/
Crude oil prices have been climbing up steadily in the last couple of months as investors continue to expect a balance in the demand and supply dynamics of oil. Last year, OPEC announced that it ...
Gold is currently trading at $1,215.85 per ounce, up 0.96% or $11.55. The precious metal has gained 6.40% over the past 30-day period, up $72.40. For the year to date, gold is up 4.7%, and it has...
https://www.howthemarketworks.com/what-do-traders-look-for-with-gold/
People buy foreign currency for many reasons. You may wish to purchase Forex as a hedge against depreciation, or because you are traveling abroad. Many people buy foreign currency to send to some...
https://www.howthemarketworks.com/the-travel-money-market-in-perspective/
When it comes to currency trading, there is a vast range of different strategies you can adopt to generate trading profits. For example, you could pursue an event-focused strategy, where you plac...
https://www.howthemarketworks.com/how-to-trade-forex-using-a-technical-indicator-based-strategy/
The most widely traded financial asset in the world is not any particular stock, oil or gold – it is the EURUSD (Euro/ US dollar) currency pair. The pair represents two of the largest economies...
https://www.howthemarketworks.com/should-you-trade-the-eurusd/
Introduction It is no longer news that oil prices have been crashing in the last couple of months towards the end of 2015. In fact, in the last one year, the West Texas Intermediate is down 15.6%...
https://www.howthemarketworks.com/a-crude-oil-rally-is-unlikely-in-the-short-term/
In the last six months we have witnessed strong volatility in the global currency markets. Emerging markets currencies weakened aggressively against the U.S. dollar, which has strengthened substa...
https://www.howthemarketworks.com/how-to-use-fx-derivatives-to-hedge-your-currency-risk/
Contest: March Trading Strategy Final Portfolio Value: $101,169.24 Trading Strategy For This Contest Trading Strategy: Investing for the first time in the stock market is very overwhelming; even ...
https://www.howthemarketworks.com/vickys-march-trading-contest-strategy/
Contest: February Trading Contest Final Portfolio Value: $135,104.98 (+35.1%) Trading Strategy For This Contest I made 4 trades at the start of the month all based on gold being undervalued. I su...
https://www.howthemarketworks.com/michaels-february-trading-contest-strategy/
Contest: February Trading Contest Final Portfolio Value: $143,899.64 (+43.9%) Trading Strategy For This Contest Study sectors precious metals and energy- they have greatest potential for change b...
https://www.howthemarketworks.com/housemanagers-february-contest-strategy/
If you’ve started buying a few stocks, you will probably be interested in diversifying your portfolio between more than one sector. This sounds easy, but it can be very challenging finding stoc...
https://www.howthemarketworks.com/finding-stocks-in-specific-sectors/
Contest: Second November Investing Contest Final Rank: 2 Final Portfolio Value: $113,134.06 (+13.13%) Trading Strategy For This Contest I usually found stocks that had high volume and good commun...
https://www.howthemarketworks.com/sgsadamcs-november-investing-strategy/
Contest: Second November Investing Contest Final Rank: 3 Final Portfolio Value: $112,739.67 (+12.73%) Trading Strategy For This Contest First off, thanks for the great game everyone! Well played....
https://www.howthemarketworks.com/nickstalksstockss-investing-contest-strategy/
Contest: October Third Daily Challenge Final Rank: 7 Final Portfolio Value: $101,621.37 (+1.62%) Trading Strategy For This Contest For the October 3rd Daily Contest I picked a mix between triple-...
https://www.howthemarketworks.com/awesom-0s-third-october-daily-contest-trading-strategy-2/
Contest: October Third Daily Challenge Final Rank: 1 Final Portfolio Value: $108,724.97 (+8.72%) Trading Strategy For This Contest The strategy I prefer to use is to look for stocks that have bee...
https://www.howthemarketworks.com/ruintheres-third-october-daily-contest-trading-strategy/
Contest: September Monthly Million Contest Final Rank: 1 Final Portfolio Value: $1,308,146.64 (+30.8%) Trading Strategy For This Contest My strategy is finding pharmaceutical/biotech companies. I...
https://www.howthemarketworks.com/angelriveras-september-trading-strategy/
Contest: October First Daily Challenge Final Rank: 1 Final Portfolio Value: $104,671.33 (+4.67%) Day Trading Strategy For This Contest For this daily contest, I purchased 4 ETF stocks, then sold ...
https://www.howthemarketworks.com/riskons-october-day-trading-strategy/
Contest: Official September Contest Final Rank: 5 Final Portfolio Value: $1,119,202.95 (+11.19%) Trading Strategy For This Contest My strategy is to look for stocks to short that are moving up (3...
https://www.howthemarketworks.com/smithjjj5s-september-trading-strategy/
Final Rank: 3 Final Portfolio Value: $1,181,543.46 (+18.15%) Trading Strategy For This Contest I used was mainly “gap plays”; I analyze gaps in the premarket everyday, once I determine if the...
https://www.howthemarketworks.com/wkaraman14s-september-trading-strategy/
Fibonacci Arc is a technical analysis indicator and is utilized to give hidden support and resistance levels for security. It is built by drawing a trend line between two swing points on a chart....
Definition Your “Risk Level” is how much risk you are willing to accept to get a certain level of reward; riskier stocks are both the ones that can lose the most or gain the most over time. R...
In finance, Volume-Weighted Average Price (VWAP) is a ratio of the profit traded to complete volume traded over a distinct time horizon - normally one day. It's a portion of the average price a s...
https://www.howthemarketworks.com/volume-weighted-average-price/
Definition Open Interest is the total number of options or futures contracts that are “open”, meaning currently owned by an investor and not yet expired. Details Think first in terms of optio...
Double Bottoms are reversal patterns and often seem to be one of the most common (together with double top patterns) patterns for currency trading. Double Bottoms patterns are identified by two c...
The head-and-shoulders pattern is one of the most popular chart patterns in technical analysis. The pattern looks like a head (the middle peak) with two shoulders (two equal heiight peaks). The...
A cup-and-handle chart pattern resembles a cup of tea. These are bullish continuation patterns where the growth has paused. momentarily, it trades down and then continues its upward pattern. This...
HTMW Quote Actually, one of the better indicators historically of how well the stock market will do is just a Gallup poll, when you ask Americans if you think it's a good . . . Nate Silver The ...
https://www.howthemarketworks.com/gallup-poll-is-best-historical-market-indicator/
Covariance is a statistical measure of the extent that 2 variables move in tandem relative to their respective mean (or average) values. In the investment world, it is important to be able to mea...
The use of correlation analysis extends to numerous important fields. For example, in finance, correlation analysis can be used to measure the degree of linear relationships between interest rate...
A good way to evaluate a manager is to ask many relevant questions pertaining to your own personal financial situation and your financial goals. Examples of questions to ask are: The post How t...
https://www.howthemarketworks.com/how-to-evaluate-a-portfolio-manager/
Screen stocks by industry, price, volume, market cap, dividend yield, performance, sales and profitability, valuation ratios, analysts estimates, etc. The post Fundamental Research Links appea...
https://www.howthemarketworks.com/fundamental-research-links/
Small cap stock investing is volatile. That is one of first things you should know and understand. So, why risk your money by investing in what is typically considered risky business? The post ...
https://www.howthemarketworks.com/small-cap-stock-investing/
Learn the classic market cycles of accumulation, mark up, distribution and mark down so that you can time the market -consistently - and make steady profits any time. The post The Art of Market...
Candlestick charts are made up of red and green bars which are called candlesticks. What do they mean? The post What are Candlesticks (video 2 of 3) appeared first on HowTheMarketWorks .
In the world of stock analysis, fundamental and technical analysis are on completely opposite sides of the spectrum. Earnings, expenses, assets and liabilities are all important characteristics t...
https://www.howthemarketworks.com/technical-analysis-vs-fundamental-analysis-which-is-better/
A short call option position where the writer does not own the specified number of shares specified by the option nor has deposited cash equal to the exercise value of the call. The post Uncove...
You do not need anything else on a stock chart but the candles themselves to be a successful swing trader! And, there is nothing that can improve your trading more than learning the art of readin...
https://www.howthemarketworks.com/how-do-candlesticks-imply-volume-why-is-that-critically-important/
Analysis of ADX is a method of evaluating trend and can help traders to choose the strongest trends and also how to let profits run when the trend is strong. The post Average Directional Index ...
https://www.howthemarketworks.com/average-directional-index-adx/
In an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. The post Stochastics appeared first on HowTheMar...
A good earnings surprise is a pattern in which a company circulates an earnings announcement. Then the market will interpret it as better than was expected. The post Good Earnings Surprise app...
An event pattern called a bad earnings surprise is where a company distributes an earnings announcement then the market defines it as worse than expected. Even in a bear market about 61% will hav...
An inverted dead-cat bounce is quite the opposite of the dead-cat bounce. A quick look is if a trader owns a stock following a quick and large (5-20%) gain there is normally a gap up. If you sell...
A trading term called a dead cat bounce is used to when a stock is in a severe decline and has a sharp bounce off the lows. It occurs due to the huge amount of short interest in the market. Once ...
A gap in a chart is basically an empty space between one trading period and the one prior to that trading period. They normally form on account of an important and material event that will affect...
Flags and Pennants are categorized as a continuous pattern. They normally represent only brief pauses in a dynamic stock. They're typically seen immediately after a quick move. The stock will the...
The V top is a reverse V-shaped top thus the name. The top is quite sharp. It's due to the irrationality of actors leading to a steep increase that will be corrected shortly afterwards. The V top...
The V bottom is shaped like a V thus the name. The dip will be quite sharp. It's because the irrationality of actors leading to a steep fall which will be corrected shortly after. The V bottom wi...
A horizontal channel is a pattern that underlines investor’s indecisiveness. This horizontal channel is assembled by two horizontal and parallel lines that build the progress of the price. To c...
The descending triangle is a bearish continuation pattern. This pattern forms two converging lines. The initial is a downward slant which resistance and the other is a horizontal support. To vali...
The symmetrical triangle top is a bullish continuation pattern. This pattern forms two trend lines which are symmetrical to the horizontal and convergent. The initial pattern is a bearish slant t...
A symmetrical triangle bottom is a bearish continuation pattern. This pattern forms two trend lines that are symmetrical to the horizontal and convergent. The initial one is a bearish slant that ...
https://www.howthemarketworks.com/symmetrical-triangle-bottom/
The ascending triangle is a bullish continuation pattern. This pattern is made by two converging lines. The first line is an upward slant which is the support and the other is a horizontal resist...
The cup with handle has a continuous pattern. This pattern is formed by two rounded bottoms, the first is deeper and wider than the second. The height of the cup and the handle will be aligned al...
The rounding top pattern is a reverse U-shape, also called a "reverse saucer. " The top is rounded with a flat top. But as you'll see in many cases there are several bullish peaks and they will n...
The U-shaped bottom is a rounding bottom, also called a "saucer. " The dip is rounded with a flat bottom. But we'll see in many cases there are several bearish peaks, but they do not question the...
The pennant resembles the symmetrical triangle, but it's characteristics are not the same. The pennants is shaped like a wedge of consolidation. Its normally appears after a sudden upward or down...
The symmetrical broadening top is called a bullish continuation pattern. This pattern is formed by two symmetrical horizontal lines that are divergent. It looks like an inverted symmetrical trian...
https://www.howthemarketworks.com/symmetrical-broadening-top/
The descending flag shows as a continuation pattern. The flag is built by two straight downward parallel lines which is shaped like a rectangle. It is oriented in the direction of that trend whic...
An ascending flag is a continuation pattern. The ascending flag is formed by two straight upward parallel lines which are shaped like a rectangle. It is adjusted in the direction of the trend tha...
A bullish channel is called a continuation trend pattern. The bullish channel is assembled by two parallel lines that frame the upward price trend. A line is validated when there has been at leas...
A bearish channel is a continuation trend pattern. The bearish channel is arranged by two parallel lines that frame the downward price trend. To certify a line, there has to be at least two point...
The triple top is a bearish pattern with an MN shape. Three bottoms will come in succession, reflecting an important resistance. This marks a reversal will. The post Triple Top appeared first ...
Triple bottom is a bullish pattern with a WV shape. Three bottoms will succeed, reflecting an important support. This will mark a reversal. The post Triple Bottom appeared first on HowTheMarke...
Reverse head and shoulders is a trend reversal pattern. It will mark a desire to make a bullish reversal. The theory is the same as a triple bottom other than the second bottom will be lower than...
https://www.howthemarketworks.com/reverse-head-and-shoulders/
The symmetrical broadening bottom is called a bullish reversal pattern. This pattern is formulated by two symmetrical horizontal lines that are divergent. It is an inverted symmetrical triangle o...
https://www.howthemarketworks.com/symmetrical-broadening-bottom/
The double top is a bearish pattern shaped like an M. Two tops must succeed, imaging an important resistance. This marks a reversal. The pattern may also be in WV shape. We can consider a triple ...
The double bottom is a bullish pattern indicated by a W shape. The two bottoms will succeed, mirroring an important support (in green). This will mark a reversal will. The pattern may also be in ...
Diamond tops are a reversal pattern. This pattern is formed by two juxtaposed symmetrical triangles. It's shape is like a diamond. The post Diamond Tops appeared first on HowTheMarketWorks .
A reversal pattern is called a diamond bottoms. This pattern is formulated by two juxtaposed symmetrical triangles. It is shaped like a diamond. The post Diamond Bottoms appeared first on HowT...
A falling wedge is a bullish reversal pattern made by two converging downward slants. To prove a falling wedge, there has to be oscillation between the two lines. Each of the lines must be touche...
A bearish reversal pattern formed by two assembled upward slants is called a rising wedge. To validate rising wedge there must be oscillation between the two lines. These lines must be touched at...
Stock charts print different topping formations. Some are classics, like the Descending Triangle, which can be understood and traded with little effort. However the emotional crowd additionally g...
A bullish reversal pattern formed by two diverging downward slants is a descending broadening wedge. To validate an descending broadening wedge, there has to be an oscillation between the two lin...
https://www.howthemarketworks.com/broadening-wedges-descending/
The formation, ascending broadening wedge is called this because of its similarity to a rising wedge formation and then has a broadening price pattern. The post Broadening Wedges, Ascending ap...
https://www.howthemarketworks.com/broadening-wedges-ascending/
Perhaps the recent Broadening Top and just a fractal footprint of the larger Rising Wedges that top into Broadening Tops, will somehow avoid both the Broadening Top and the far more bearish Risin...
The right-angled and ascending broadening chart pattern is not one you might choose to trade. Other chart patterns perform much better. Downward breakouts have a big break even failure rate which...
https://www.howthemarketworks.com/broadening-formations-right-angled-and-ascending/
The broadening bottom is one of those chart patterns that appears often, but you might want to avoid trading. The performance rank approaches the bottom of the list with a comparatively high brea...
Figure 2: March call options for IBM The data provided in Figure 2 provides the following information: Column 1 – OpSym: this field designates the underlying stock symbol (IBM), the contrac...
With ETFs, you can scaled down the size of the transaction for small investors. The post Hedging with ETFs appeared first on HowTheMarketWorks .
A trailing stop loss is calculated in a manner like the way we calculated our initial stop loss. The only difference being that while we calculated our stop loss from the entry price, we're calcu...
Stock market prices are affected by business fundamentals, company and world events, human psychology, and much more The post Factors that Impact Stock Prices appeared first on HowTheMarketWor...
https://www.howthemarketworks.com/factors-that-impact-stock-prices/
Option Spreads are a kind of option that will get its value from the difference between the prices of two or more assets. The post Option Spreads appeared first on HowTheMarketWorks .
A benefit of options is the fact that you will not be limited to making a profit only when the market goes up. The post Why Use Options appeared first on HowTheMarketWorks .
Fundamental analysis is the process of looking at the basic or fundamental financial level of a business, especially sales, earnings, growth potential, assets, debt, management, products, and com...
A Sharpe Ratio calculates the extra return you make compared to the extra risk you take on. The post Sharpe Ratio (Advanced) appeared first on HowTheMarketWorks .
Technical Analysis is the use of technical indicators comprising of statistics using past market information to predict which direction the security price will move. The post Technical Analysis...
If you have never traded options before, don't worry; it’s easier than you might think. But before you can even begin trading options, you need to understand what an option is. An option is the...
https://www.howthemarketworks.com/an-introduction-to-trading-options/
Ramp is a chart pattern recognition screener for stocks and currency exchange markets Ramp will screen for stock patterns like breakouts, MACD divergences, Fibonacci retracements, W bottoms, head...
Traders, investment firms and fund managers use a trading strategy to help make wiser investment decisions and help eliminate the emotional aspect of trading. The post Trading Strategies appea...
The Average True Range (ATR) is an indicator that measures volatility. The post Average True Range ATR appeared first on HowTheMarketWorks .
The Moving Average Convergence-Divergence (MACD) indicator is one of the easiest and most efficient momentum indicators you can get. It was developed by Gerald Appel in the late seventies. The ...
Moving Averages Moving Averages are one of the most popular and important technical analysis tools. The ease of use and simple calculation make it a great tool to get information quickly. They al...
https://www.howthemarketworks.com/moving-averages-simple-and-exponential/
Volatility is founded on the standard deviation, which modifies as volatility expands and declines. The bands spontaneously widen when volatility expands and narrow when volatility declines. Th...
Pivot Points use the previous period's high, low and close which will define future support and resistance. Pivots Points are important levels chartists utilize to decide directional movement, re...