All you want to know but never asked about the stocks and options markets.

domingo, 24 de abril de 2016

What is slippage in stocks day trading?

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slippage in trading

In an ideal world, when a daytrader place an order, the trade is executed at exactly the price specified. However, under certain conditions, the trade or operation can be executed at a different price. For example, if an intraday trader places a stop loss after having taken a long position - in other words, a trade in which he or she bought stocks instead of selling them - it is possible that the share price could fall below the price specified in the stop loss order before it can be executed. In this case, the stop order will be executed at a lower price - although the broker will try to get the best price available.

jueves, 21 de abril de 2016

Spreads in stock trading

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If you look at the price quoted for any given stock, you can see that there are actually two prices. The first is the buying price (bid) -how much traders are offering to buy such stock - and the second is the selling price (ask), which is the amount that traders are offering to sell that stock. In most cases, particularly in high-volume stocks in the United States, the difference between these prices - the price differential - or the difference between supply and demand (called spread) is usually only a cent.

However, in some cases, the differential or spread may become wider, and this is something that traders have to pay attention. Especially when they are trading in the short term.

martes, 5 de abril de 2016

Do You Have to Use Indicators in Trading?

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Many traders feel compelled to use indicators to anticipate the movements of the stock market, but often, this can backfire. While some traders find that indicators fit their trading style, many more are confused and upset. In fact, many successful traders have abandoned the use of indicators completely, and now choose to focus only on the price and volume information.