In Short When someone buys or sells stocks, mutual funds, ETFs, etc. they have the choice to use multiple types of orders. Market Order The order is done immediately at the current security price. Market orders have to pay the … Continue reading
Definition When you buy a security there is time between when you buy the security and when you pay for that security. The date you buy is the buy date. The date you pay the money is the settlement date. … Continue reading
In Short There are 2 main ways that a brokerage house makes money. Those ways are through commissions and interest on cash balances. Commissions This type is what most people automatically think of when it comes to this topic. Every time … Continue reading
I wanted to let everyone know that I just uploaded a free e-book. To download a copy of “A Simple Overview of Financial Planning. Book 1: Market Overview”, please click this link or go to the menu on the top … Continue reading
What is a Commodity? A commodity as it is defined in the financial markets is a physical good that is considered the same as all other goods of that same commodity classification. For example: cattle is a commodity. One cow … Continue reading
Definition of Shorting The usual ways of thinking about stocks or commodities is that you buy them at a given price and then you later sell it. Shorting reverses that process. When you short something you borrow the stock or … Continue reading
Short Answer As an investment strategy, day trading is theoretically junk. Random Walk Theory Stock movements for short periods of time are completely random. The drunk staggering left and right from a light pole. There is no pattern. The “random walk theory” has … Continue reading
June 1, 2014 Investment Newsletter for the end of May, 2014 I have said to all of you and to anyone else who will listen that it is impossible to time the market. But what does timing the market mean? … Continue reading
Technical trading is a method to extract as much commission from you as possible. Often, brokers will use terms like the “stock is above its 30 day average”, “head and shoulders”, etc. Technical trading claims to be able to predict … Continue reading