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Showing posts from 2006

STOP LOSS ORDER

A stop loss order is simply a trailing "safety net" that you can attach to a stock buy. The purpose of a stop loss order is to keep you from being "trapped" in a stock that falls a ton of points. It is all done electronically and it is both easy to use and quite mandatory in our opinion. Many times you will hear ..Know your exit before you go in. On the downside though. For instance there are going to be times when you make a trade and it goes against you. That is normal and it happens to every trader. The difference is that if your trade was fundamentally flawed (you bought a stock thinking it would make a short term run but it fizzled out instead) you should have a set predetermined price that you will let that stock fall to and ..you are out. For instance lets say we think the XYZ company is going to fly because of a hot news release and we buy 500 shares. but almost instantly the thing starts backing up and soon we are down a couple points. Do you hold or do you...

technicle terms

Subject: [ISG:24010] All U Want 2 Know About Technical Analysis Glossary 52 Week high 52 Week high is the highest price of a stock/security within the last 1 year. 52 Week low 52 Week low is the lowest price of a stock/security within the last 1 year. Accumulation Distribution(AD)A momentum indicator that associates changes in price and volume. It is based on the premise that a price move is more significant with larger volume. When there are more buyers than sellers on a particular stock then it is under accumulation, but when there are more sellers then buyers the stock is under distribution. ADX DI & ADX are used for identifying when a definable trend is present in a security/stock. That is, the DMI tells whether an stock is trending or not. The scale for the DMI is from 0-100. The Average Directional Movement Index (ADX) is a moving average of the DMI. Breakdown If the price of a security moves below the last know support level(price), it moves DOWN very fast as there is NO kno...