What is a Small Cap Stock? Small cap stocks belong to companies with small to moderate total market values. Small cap stocks have the potential to grow into large companies, and many investors consider them a great value because of their price and growth potential. At...
Chasing high-performing stocks, buying high and aiming to sell higher, is known as momentum trading. Momentum stocks are those with long-term uptrends, typically over a period of three to 12 months, with consistently high rates of return over the same period. Momentum...
Market sentiment is the general feeling that the “herd” is thinking in the stock market. Contrarian investors seek this out and look to inverse it, while trend following investors look to ride the trend until it shows signs of reversal. If you are currently bullish on...
Have you ever wondered where your trade goes when you place a buy or sell order? Although most equity trades take place on centralized exchanges, these exchanges rely on intermediaries to match buyers and sellers and to serve as counterparties for every trade. These...
What is a Stock Trading Simulator? A stock trading simulator is a game-like program, typically online, in which players are given a fake brokerage account with an initial lump of simulated cash and are allowed to place simulated trades. Stock trading simulators...
What is the SEC? The SEC, the US Securities and Exchange Commission, is the most important regulatory body in stock trading and sets many of the rules on what traders can and cannot do, what financial information companies must disclose, and how stock exchanges...
