In the world of investing, especially when dealing with leveraged ETFs or compounding returns, there’s a hidden risk that many investors overlook — volatility drag. It’s a sneaky force that can quietly eat away at your returns over time, even if the asset you’re tracking doesn’t move much in price. Understanding volatility drag is key […]
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This week was full of volatility as tariff headlines continued to rattle markets with uncertainty and recession fears. The good news is that we may have put in a short-term bottom after markets rebounded nicely on Friday. $SPY finished down 2.2% and the $QQQ finished lower at 2.46% for the week. Performance by Sector Source:
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A limit order is a type of order used in trading that allows investors to buy or sell a security at a specified price or better. Unlike market orders, which execute immediately at the best available price, limit orders give traders more control over execution prices. This makes them an essential tool for both new
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A stop order is a type of order placed by traders to buy or sell a security once its price reaches a specified level, known as the stop price. Stop orders are commonly used for risk management and automation in trading, helping traders enter or exit positions efficiently. Understanding how stop orders work, their types,
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The stock market operates on supply and demand, and one of the most crucial aspects of this dynamic is opening and closing imbalances. These imbalances provide traders with insight into institutional activity and potential price movements at the start and end of the trading day. Understanding these imbalances can help traders identify opportunities and risks
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Introduction Options trading can be complex, but understanding the Greeks—key risk measures—can help traders make informed decisions. The Greeks provide insights into how an option’s price is expected to change based on various market conditions. The five main Greeks are Delta, Gamma, Theta, Vega, and Rho. Each of these measures different aspects of risk in
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Introduction When opening a brokerage account, traders must choose between a cash account and a margin account. Both account types allow investors to buy and sell securities, but they have key differences in terms of capital requirements, leverage, risks, and trading flexibility. Understanding these differences is essential for traders to make informed decisions based on
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What is Short Interest? Short interest is a key metric used in stock market analysis that represents the total number of shares of a particular stock that have been sold short but have not yet been covered or closed out. Essentially, it indicates how many shares investors have borrowed and sold in anticipation of a
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What is the Pattern Day Trading (PDT) Rule? The Pattern Day Trading (PDT) rule is a regulation established by the Financial Industry Regulatory Authority (FINRA) to protect retail traders from excessive risk-taking. It applies to traders using margin accounts who execute four or more day trades within five business days, provided these trades make up
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What is Float in Stocks? A stocks Float refers to the number of shares of a company’s stock that are available for trading by the public. It excludes restricted shares held by company insiders, executives, and major institutional investors. The float is an important metric as it influences a stock’s liquidity, volatility, and overall trading
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