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Swing Trading
Swing trading is a speculative trading strategy in financial markets where a tradable asset is held for one or more days in an effort to profit from price changes or 'swings'. A swing trading position is typically held longer than a day trading position, but shorter than buy and hold investment strategies that can be held for months or years. Profits can be sought by either buying an asset or short selling. Momentum signals (e.g., 52-week high/low) have been shown to be used by financial analysts in their buy and sell recommendations that can be applied in swing trading. Swing trading methods Using a set of mathematically-based objective rules for buying and selling is a common method for swing traders to eliminate the subjectivity, emotional aspects, and labor-intensive analysis of swing trading. The trading rules can be used to create a trading algorithm or "trading system" using technical analysis or fundamental analysis to give buy-and-sell signals. Simpler rule-based t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trading Strategy
In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The difference between short trading and long-term investing is in the opposite approach and principles. Going short trading would mean to research and pick stocks for future fast trading activity on one's accounts with a rather speculative attitude. While going into long-term investing would mean contrasting activity to short one. Low turnover, principles of time-tested investment approaches, returns with risk-adjusted actions, and diversification are the key features of investing in a long-term manner. For every trading strategy one needs to define assets to trade, entry/exit points and money management rules. Bad money management can make a potentially profitable strategy unprofitable.Nekrasov, V. Knowledge rather than Hope: A Book for Retail Investors and Mathematical Finance Students''. 2014pages 24-26 '' Trading strategies are based on fundame ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Money Management
Investment management (sometimes referred to more generally as financial asset management) is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institutions, such as insurance companies, pension funds, corporations, charities, educational establishments, or private investors, either directly via investment contracts/mandates or via collective investment schemes like mutual funds, exchange-traded funds, or Real estate investment trusts. The term ''investment management'' is often used to refer to the management of investment funds, most often specializing in private and public equity, real assets, alternative assets, and/or bonds. The more generic term ''asset management'' may refer to management of assets not necessarily primarily held for investment purposes. Most investment management clients can be classi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Share Trading
In finance, a trade is an exchange of a security such as stocks, bonds, commodities, currencies, derivatives or any valuable financial instrument for "cash". Such a financial transaction is usually done by participants of an exchange such as a stock exchange, commodity exchange or futures exchange with a short-dated promise to pay in the currency of the country where the ' exchange' is located. The price is agreed between the buyer and seller on the execution of the trade and is guided by the supply and demand for that financial instrument. Once the trade is executed a number of steps take place until the trade is finally settled. There is a pre-defined settlement period for this to happen in each market. Trading in financial markets is key part of a countries economics, providing liquidity, enabling price discovery, and facilitating efficient capital allocation. When trading in financial markets, financial traders balance risk and potential reward to attempt to make profi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trend Following
Trend following or trend trading is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue. There are a number of different techniques, calculations and time-frames that may be used to determine the general direction of the market to generate a trade signal, including the current market price calculation, moving averages and channel breakouts. Traders who employ this strategy do not aim to forecast or predict specific price levels; they simply jump on the trend and ride it. Due to the different techniques and time frames employed by trend followers to identify trends, trend followers as a group are not always strongly correlated to one another. Trend following is used by commodity trading advisors (CTAs) as the predominant strategy of technical traders. Research done by Galen Burghardt has shown that between 2000-2009 there was a very high correlation (.97) between tr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dow Theory
The Dow theory on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 editorials in ''The Wall Street Journal'' written by Charles H. Dow (1851–1902), journalist, founder and first editor of ''The Wall Street Journal'' and co-founder of Dow Jones and Company. Following Dow's death, William Peter Hamilton, Robert Rhea and E. George Schaefer organized and collectively represented Dow theory, based on Dow's editorials. Dow himself never used the term ''Dow theory'' nor presented it as a trading system. The six basic tenets of Dow theory as summarized by Hamilton, Rhea, and Schaefer are described below. Six basic tenets of Dow theory # The market has three movements #: (''1'') The "main movement", primary movement or major trend may last from less than a year to several years. It can be bullish or bearish. #: (''2'') The "medium swing", secondary reaction or intermediate reaction may last from ten ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Day Trading
Day trading is a form of speculation in Security (finance), securities in which a Trader (finance), trader buys and sells a financial instrument within the same trading day. This means that that all Position (finance), positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open. Traders who trade in this capacity are generally classified as speculators. Day trading contrasts with the long-term trades underlying buy and hold, buy-and-hold and value investing strategies. Day trading may require fast trade execution, sometimes as fast as milli-seconds in scalping, therefore direct-access day trading software is often needed. Day trading is a strategy of buying and selling securities within the same trading day. According to FINRA, a "day trade" involves the purchase and sale (or sale and purchase) of the same security on the same day in a margin account, covering a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bear Market
A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time. A future market trend can only be determined in hindsight, since at any time prices in the future are not known. This fact makes market timing inherently a game of educated guessing rather than a certainty. Past trends are identified by drawing lines, known as trendlines, that connect price action making higher highs and higher lows for an uptrend, or lower lows and lower highs for a downtrend. Market terminology The terms "bull market" and "bear market" describe upward and downward market tr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Speculation
In finance, speculation is the purchase of an asset (a commodity, good (economics), goods, or real estate) with the hope that it will become more valuable in a brief amount of time. It can also refer to short sales in which the speculator hopes for a decline in value. Many speculators pay little attention to the fundamental value of a security and instead focus purely on price movements. In principle, speculation can involve any tradable good or financial instrument. Speculators are particularly common in the markets for stocks, bond (finance), bonds, commodity futures, currency, currencies, cryptocurrency, fine art, collectibles, real estate, and derivative (finance), financial derivatives. Speculators play one of four primary roles in financial markets, along with hedge (finance), hedgers, who engage in transactions to offset some other pre-existing risk, arbitrageurs who seek to profit from situations where Fungibility, fungible instruments trade at different prices in dif ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Massachusetts Institute Of Technology
The Massachusetts Institute of Technology (MIT) is a Private university, private research university in Cambridge, Massachusetts, United States. Established in 1861, MIT has played a significant role in the development of many areas of modern technology and science. In response to the increasing Technological and industrial history of the United States, industrialization of the United States, William Barton Rogers organized a school in Boston to create "useful knowledge." Initially funded by a land-grant universities, federal land grant, the institute adopted a Polytechnic, polytechnic model that stressed laboratory instruction in applied science and engineering. MIT moved from Boston to Cambridge in 1916 and grew rapidly through collaboration with private industry, military branches, and new federal basic research agencies, the formation of which was influenced by MIT faculty like Vannevar Bush. In the late twentieth century, MIT became a leading center for research in compu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Day Trading
Day trading is a form of speculation in Security (finance), securities in which a Trader (finance), trader buys and sells a financial instrument within the same trading day. This means that that all Position (finance), positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open. Traders who trade in this capacity are generally classified as speculators. Day trading contrasts with the long-term trades underlying buy and hold, buy-and-hold and value investing strategies. Day trading may require fast trade execution, sometimes as fast as milli-seconds in scalping, therefore direct-access day trading software is often needed. Day trading is a strategy of buying and selling securities within the same trading day. According to FINRA, a "day trade" involves the purchase and sale (or sale and purchase) of the same security on the same day in a margin account, covering a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Moving Average
In statistics, a moving average (rolling average or running average or moving mean or rolling mean) is a calculation to analyze data points by creating a series of averages of different selections of the full data set. Variations include: #Simple moving average, simple, #Cumulative moving average, cumulative, or #Weighted moving average, weighted forms. Mathematically, a moving average is a type of convolution. Thus in signal processing it is viewed as a low-pass filter, low-pass finite impulse response filter. Because the boxcar function outlines its filter coefficients, it is called a boxcar filter. It is sometimes followed by Downsampling (signal processing), downsampling. Given a series of numbers and a fixed subset size, the first element of the moving average is obtained by taking the average of the initial fixed subset of the number series. Then the subset is modified by "shifting forward"; that is, excluding the first number of the series and including the next value in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
