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volatility

The relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of ... Read more

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Investing Tip

Benefits of a Trading Schedule

by David Hunt

When setting up a trading schedule, it is important to run a strong balance between market overlaps and news releases. Traders looking to enhance profits should aim to trade during ...

The Efficient Market

The first interesting theory about price behavior is called the efficient market theory (EMT). This theory states simply that prices react to changes in the com...

Entry and Exit Signals

The dilemma most traders are aware of is when to enter a position. But there is more. After you enter, you also need to know when and why to exit the position. ...

Diversifying by Company Size

Another consideration in diversifying your portfolio is the level of market capitalization (market cap). This is a popular comparative measurement, representing...

Combined Techniques: Creative Risk Management

Options strategies are varied and flexible and run the gamut from highly speculative to extremely conservative. This explains a large part of the appeal of opti...

Applying Analysis to Calls—the “Greeks”

Keep the major market theories in mind when you analyze stocks, and remember that exceptionally rich option premium is not a dependable standard for stock selec...

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