(Updated November 2021) Volatility traders do not pay attention to which direction stock prices move, they are interested in the level of volatility itself. Volatility trading describes trading the volatility of the price of an…
The gross margin helps investors to examine a company’s potential for profitability. But investors shouldn’t rely on it as the only metric. Gross margin represents the companies’ net sales revenue minus the cost of goods…
(Updated October 2021) A stock’s daily trading volume shows the number of shares that are traded per day. Traders have to calculate if the volume is high or low. The average daily trading volume represents…
The share turnover ratio isn’t the most important measure you have to take into consideration when picking a stock but it is important to know will you need a lot of time to sell off…
A trading plan is a set of rules and guidelines that define your trading performance, financial goals, rules, risk management and criteria for entry and exit positions. Why is it so important to know how…
In options trading, the underlying asset can be stocks, commodities, futures, index, currencies. The option of stock gives the right to buy or sell the stock at a definite price and specified date. By Guy…
Don’t base the success of your investment portfolio on returns alone. Use these three sets of measurement tools to calculate portfolio performance. The main goal to calculate portfolio performance is to measure the value created…
The spread of the coronavirus has disturbed investors. The fears of new outbreaks can push down global demand. The S&P 500 closed down 3% on Tuesday, the index is deeper in the red. Markets are…
Investors use the P/E ratio to unveil the relative value of a company’s stock. Also, the P/E ratio can be used to compare a company’s historical data or to compare markets as a whole over…
A basic mistake is considering the closing prices of stocks for analysis instead of Adjusted closing price. If you’re a beginner in investing, you probably already noticed the expression like “closing price” or “adjusted closing…