A hostile takeover attempt provides for CEOs and the incentive board to manage companies while aligning with the interests of shareholders. If a company is run poorly or inefficiently, the value of its shares will fall relative to other stocks in the industry. At that point it can be rewarding for another company, an individual, … Read more
Markets have two phases: trends or sideways consolidation. And, because markets have two phases, traders need an indicator that works for each one. Over my years of trading, I’ve experimented with various indicators to try and better understand both of these phases. There are many indicators out there that try to capture the essence of … Read more
Regular trading sessions for stocks and options is 9:30 am to 4 pm EST, however, there are some exceptions on certain options. But first, let’s dig into what options are and how they work. For a deeper dive into options, you can also check out our Options Trading Guide. Intro Retail traders and institutional investors … Read more
Trading with a full-time job can be a challenging venture but also a rewarding one. Being able to trade part-time while you’re at work can be a great way to generate passive income or build up your retirement portfolio. But depending on what your job entails, it may dictate how you trade. For instance, you … Read more
The Divergent Bar can help determine the potential move of one (or up to 3) bars into the future. It is a tool used to identify if you will see potential higher prices or price drops within the next three bars. Depending on the time frame, you can use this tool to make for some … Read more
Meme stocks are back and yet again. After months of commentators creating narratives that the retail phenomenon experienced in 2020 and 2021 was simply aberration, often citing exchange volume data as proof, have yet again been dashed as this small group of stocks like GameStop (GME), and AMC Entertainment (AMC) and a sub-group of related … Read more
Nothing in the stock market is immune to risk But traders may have found one of the safest ways to trade options, and that would be through credit spreads. Credit spreads are a valuable way for traders to generate income in the world of options trading. The only real drawback to credit spreads is that … Read more
As one of the biggest brands in the world, you might think that owning shares in energy drinks company Red Bull is a great investment. It might shock you to know, then, that it is not possible to own Red Bull stock. Red Bull is a multinational company with a hand in several industries including … Read more
Before diving into a discussion on the short float, it’s essential to know what “short” and “float” means. Investors buy “long” when they think a stock price will increase or “sell short” when they believe a stock price will decline. A short position closes out when the trader “covers,” which means buying at a lower … Read more
So news out, Elon Musk has accumulated a 9.2% stake in Twitter. And when I first saw it I thought, okay, I had seen the headlines, I guess, it was last week where he was making posts about is a new platform needed, and interpreted that as a new social media platform. He had the … Read more