Stop-Loss or Stop-Limit Orders

Stop-Loss or Stop-Limit Orders

Which Order to Use? Stop-Loss or Stop-Limit Order Traders and investors who seek to limit potential losses can use several types of orders that can get them into and out of the market at times when they may not be able to place an order manually. Stop-loss and stop-limit orders are two such order types that can accomplish this. But it is critical to understand the difference. Stop Loss Orders There are two types of stop-loss orders: 1) Sell-stop orders protect long positions by triggering a market sell order if the price falls below a certain level….

Chart Patterns (1)

Chart Patterns (1)

Introduction to Chart Patterns There are hundreds of thousands of market participants buying and selling securities for a wide variety of reasons: hope of gain, fear of loss, tax consequences, short-covering, hedging, stop-loss triggers, price target triggers, fundamental analysis, technical analysis, broker recommendations and a few dozen more. Trying to figure out why participants are buying and selling can be a daunting process. Chart patterns put all buying and selling into perspective by consolidating the forces of supply and demand into a concise picture. As a complete pictorial record of…

Scalping and Swing Trading

Scalping and Swing Trading

Differences between Scalping and Swing Trading strategies. Many people participate in the stock markets, some as investors; others as traders. Investing is done with a long term view in mind – years or even decades. Trading, meanwhile, is done to pocket gains on a regular basis. There are many sub categories of traders. One of the common ways to distinguish them is the “time period” for which traders hold a stock, which can vary from few seconds to months, even years. Some of the popular trading strategies are day trading, swing trading, scalping…

Trading Software

Trading Software

The Best Technical Analysis Trading Software Most brokerage firms today offer free or premium trading software applications to individual clients when they open a brokerage account. The bundled software applications, offering a wide variety of trade, research, and analysis functions, are used as a prominent sales-pitch to the trader client. They also boast features like in-built technical indicators, fundamental analysis numbers, integrated applications for trade automations, news, and alert features. We will examine some of the most widely used, based on features (not price point): MetaStock Trader: One of the…