Definition The stock market crash of 1929 was a massive crash in stock prices on the New York Stock Exchange, and marks the largest financial crash in the United States. Details The stock market crash came in multiple parts – the initial crash on October 28 (a 12.87% drop) continued into October 29 (a 11.73% drop), Read More…
Definition The Federal Reserve Bank, or the “Fed”, is the central banking system of the United States. It serves as the primary regulator of the US dollar, as well as the “lender of last resort” for other banks. Regulating Currency The Federal Reserve works to maintain the interest rates that banks use to lend money to Read More…
Definition The Reserve Requirement is how much of all deposits that a bank is required to keep “on hand”, meaning in its vaults, or on deposit at the Federal Reserve Bank (in the United States). Details The “Reserve Requirement” is about 10% of all money that has been deposited at a bank. Because of how Read More…
Definition: Money creation is accomplished through a system of borrowing and lending. Until the 1970’s, it was based on the total reserves of gold and silver. Details on Money Creation: Money is created principally by standards set by the federal reserve / central bank. The central bank will determine the amount loaned to it’s commercial Read More…
In the United States (and many other countries), the question “How is money created?” comes up a lot. The treasury isn’t just printing cash all day, if they were the government debt would be zero! In the US, money is created as a form of debt. Banks create loans for people and businesses, which in Read More…
Definition Cottage Industry, or the “Putting Out System” is a production system of producing goods that relies on producing goods, or parts of goods, by craftsmen at home, or small workshops, instead of large factories. History “Cottage Industry” describes the methodology that was used to produce most goods throughout human history, up until the end Read More…
Definition: “OHLC” stands for “Open, High, Low, Close”, and this is a chart designed to help illustrate the movement of a stock’s price over time (typically a trading day, hour, or minute) OHLC are very useful for provide quick visual details, especially for technical analysis. Details on OHLC Charts OHLC charts are also known as Read More…
Contest: Second November Investing Contest Final Rank: 5 Final Portfolio Value: $112,017.03 (+12.01%) Trading Strategy For This Contest I looked for low prices stocks breaking new highs and held on for a couple minutes or over night, then I sold them, sometimes shorting stocks that are too hyped up Performance Over The Total Contest Click Read More…
Definition “Wall Street” is a street in New York City, near the southern end of Manhattan Island. It is the home of the New York Stock Exchange, and the biggest center of stock trading and finance in the world. History Before New York was New York, it was a Dutch colony called New Amsterdam, which Read More…
Definition The New York Stock Exchange (or NYSE) is the largest stock exchange in the world. Think of it as an organized, fast-paced flea market where buyers and sellers from all over the world come to trade U.S. stocks (and now some foreign shares as well). It is where over 2,800 of the biggest U.S. Read More…
Contest: October First Daily Challenge Final Rank: 3 Final Portfolio Value: $102,112.25 (+2.11%) Day Trading Strategy For This Contest For this day-trading contest, my big winners were the triple-leveraged ETFs (Click Here for a list of leveraged ETFs!) [hq]DWTI[/hq] and [hq]JDST[/hq]. [hq]DWTI[/hq] is a triple-leveraged Bear Oil ETF, so when oil goes down by 1%, Read More…
Contest: October First Weekly Challenge Final Rank: 1 Final Portfolio Value: $116,943.82 (+16.94%) Trading Strategy For This Contest I select highly volatile and liquid stocks / ETFs to trade, paying attention to how they behave (gap up/down) the 1st 15 min of the opening session. Final Open Positions and Portfolio Allocation Performance Over The Total Read More…
Contest: October First Daily Contest Final Rank: 6 Final Portfolio Value: $101,341.05 (+1.34%) Day Trading Strategy For This Contest I usually focus on Lower priced stocks because they tend to be more volatile. Tuesday however didn’t have very many stocks doing what I prefer to trade, so I pretty much picked one of the top Read More…
Final Rank: 318 / 518 Final Portfolio Value: $992,114,784.48 (-0.79%) Investment Strategy For The Blue Chip Investment Contest Since time was very limited for me in the Blue Chip Investment Challenge. I just tried to get as much profit as possible by trading SPXU and other triple leveraged ETF’s and trying to time the market. Read More…
Final Rank: 338 / 518 Final Portfolio Value: $979,922,717.88 (-2.01%) Investment Strategy For This Contest I don’t know if what I did even qualifies as strategy. I purchased about 20 or stocks that were familiar and then I closed my eyes and crossed my fingers. The end result was losses across the board that ranged Read More…
Final Rank: 331 / 518 Final Portfolio Value: $985,785,982.85 (-1.42%) Investment Strategy For This Contest This was a contest where I wanted to go big or crash hard. The news leading up to the contest was dominated by the crash in oil prices, so I figured that there would probably be a rebound coming soon. Read More…
Live Forex trading includes negotiating of national bills which is performed on a live basis at 24 hour, around-the-clock period. Forex is derived from the words Foreign Exchange which is known as the global market that does business in money trading.
Definition A Stop (or stop loss) order and limit order are orders that try to execute (meaning become a market order) when a certain price threshold is reached. Limit and stop orders are mirrors of each other; they have the same mechanics, but have opposite triggers. When creating a limit or stop order, you will select Read More…
Definition An order type that allows to set a moving stop or limit target price. The target price moves based on the daily high. Trailing stops can be set either in percentage or in dollars and cents terms. When in dollar terms it will activate when the price has moved by the target you have Read More…
Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time. This is seen as a loan from the bond holder to the corporation. The value of Bonds traded are greater than the value of stocks traded.
