When you place an order to trade a stock there a couple of different types of orders you can use and knowing how they work will help you understand where and when to use them. What is a limit order? A limit order is an order type that tells market centers that you want to […]
When placing orders to trade stocks you can place a couple different types of orders but the one I want to talk about now is called market orders. When you place a market order you are saying that you will buy or sell at whatever price the market price is when you submit your order. […]
Stop order is a versatile order that can be great for getting in and out of trades. When you place a stop order you are saying that you want to get in or out of a trade when prices hit your stop price and once they do, it turns into a market order and will […]
Time and sales (AKA the tape) is a tool that shows every trade that has been executed along with the size and time for that trade. In the image below you will see that there are green and red prints along with white prints, time of trade and the size on the right. The […]
The Average True Range is a trading term used to the measure the volatility of a stock or index. It’s a technical indicator that tells us the average price range a stock typically trades in and was first introduced by Welles Wilder. It calculates the average price range over a given period time, usually for […]
A short squeeze is a trading term that happens when a stock that is heavily shorted all of a sudden gets positive news or some kind of catalyst which brings a lot of new buyers into the stock. When this happens, the stock is being bought up and the shorts are now forced to cover […]
A market maker is a broker-dealer who has been certified, and/or has met capital requirements, to facilitate transactions in a particular security between the buyer and sellers. They typically hold a lot of inventory of shares in that security so they can fulfill large amounts of orders in a moments notice. How Market Makers […]
Level 1 is a service provided by your broker that displays real-time bid, ask and last quote information for stocks. Level 1 is the most basic form of quoting and does not show market depth like Level 2 does. The bid represents what the buyers are willing to pay for the stock at that specific time […]
Many traders rely so much on technical indicators that they avoid or forget that all indicators are derived from price, so when you are using indicators you are adding an extra layer of analysis between yourself and price. Technical indicators are like different colored lenses, each one offers a different view, but the clearest view […]
