Trading, SHO-WHE

Trading is the short-term buying and selling of stocks, commodities, options, cryptocurrencies, and other securities. Trading has different objectives and strategies than long-term investing. Traders use technical analysis, buy and sell on margin, and look to capture price inefficiencies.
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Trading Encyclopedia Articles By Title

Short interest and short squeezes: What traders watch and why
Short selling is a strategy in which traders aim to profit from a stock’s decline by selling shares they don’t......
Simple moving average vs. exponential moving average
When it comes to analyzing stock trends, price charts are an essential tool. A chart not only helps you contextualize......
Single-stock futures: Trading individual stocks without owning them
Shares of some of the world’s biggest companies—Amazon, Apple, NVIDIA, and others—are among the most actively traded......
Smart contracts vs. dApps—how are they different?
How much do you know about decentralized applications, known as dApps? What about smart contracts? If both of these......
Stability amid the volatility of crypto: Stablecoins explained
A stablecoin is a cryptocurrency that aims to maintain price stability by pegging its monetary value to a given......
Stock market trading time frames: Aligning strategy and personality
If you’re an active trader of stocks, commodities, forex—or any tradable asset, really—consistent profitability......
Strategies to diversify your cryptocurrency portfolio
Are you a bullish crypto investor whose entire portfolio consists of just one or a few coins? If so, you might......
Technical analysis: Is there predictive power in chart data?
Technical analysis is a method of visually analyzing, interpreting, and forecasting price movements using historical......
Technical indicators: The tools of the trade
Technical analysis attempts to identify underlying patterns of buying and selling in a stock or security that may......
The evolution of trading technology: From telegraphs to AI agents
Throughout history, whenever there’s been money to be made, there’s been someone trying to get an edge using the......
The expiration profile: How to read an options risk graph
Want to see the future of an options trade? That’s essentially what a risk profile (or “payoff diagram”) offers.......
The gold-silver ratio: Industrial growth, flights to safety, and storing value
Gold and silver have been used as both monetary metals and stores of value for well over two millennia. Although......
The greater fool theory: The root cause of market bubbles?
Suppose a stock that’s been hyped on social media goes viral, infecting the social trading space with a severe......
The put-call ratio: Gauge the market’s mood with an old-school volatility indicator
The stock market has historically risen over time, but it also goes through significant cycles of bull and bear......
Top USDA reports: Under-the-radar numbers that move markets
If you’re at all connected to the financial markets, you’re likely familiar with the monthly Employment Situation......
Trading crypto? Using it in transactions? Are you mining or staking? Your crypto is taxable
Do you own—or have you transacted in—crypto assets? Engaging in any cryptocurrency or digital asset transaction......
Trading psychology: Mastering your emotions and instincts for successful trading
Trading is a complex endeavor that involves understanding financial instruments, charts, patterns, market conditions,......
Trading with price action analysis
They say the map is not the territory. That might sound like a no-brainer. Yet, we’re all prone to occasionally......
Trend following: A time-tested strategy for riding market momentum
Wall Street wisdom reminds us, through its various maxims, to stay on the right side of the market: The trend is......
Understanding options: In the money, at the money, and out of the money
In options trading, you’ll often encounter a little lingo about the money. An option might be “in the money,” “out......
Unlocking the power of the Chaikin money flow indicator
Chaikin money flow (CMF), developed by renowned stock analyst Marc Chaikin, is a technical indicator used to assess......
Using moving averages to gauge market trends
How might you gauge the direction of an asset’s price trend? If you want to determine whether price is rising,......
Using the stochastic oscillator to anticipate market turning points
If only there were a market indicator that told us when to buy or sell a stock with precise timing and price accuracy.......
Vertical call option spreads: Defined risk and reward with a bearish bias
If you’re already familiar with selling put vertical spreads for a credit as a neutral-to-bullish strategy, but......
Volume-weighted average price (VWAP): A versatile technical indicator for pros and day traders
When it comes to stock market analysis, few indicators offer as much insight into intraday price dynamics and execution......
Want to be a pairs trader? How to assess, enter, and exit a pairs trade
So you’ve done some research on the basic principles of pairs trading—the art and science of identifying similar......
Want to become a yield farmer? A 6-step process to target a return on crypto investments
Imagine rows of crops on a farm—neatly arranged and optimized to yield the most food possible. Cryptocurrency yield......
Want to limit your downside risk? Introducing the protective put strategy
Do you own stocks—or a portfolio of stocks—and you’re worried about a potential meltdown in the short term? Or......
What causes currency exchange rates to rise and fall?
We all know what money is. It’s what we use to buy and sell goods and services and, from a savings and investing......
What is a carry trade? Lucrative to hold, but painful to unwind
It’s one of the key components of capitalism: Accessing money as cheaply as possible and seeking the highest possible......
What is a futures contract?
What will the price of a barrel of oil be in six months? How much will a bushel of wheat set you back a year from......
What is blockchain and how does it work?
Blockchain may be among the buzziest technologies to disrupt the world of finance, tied to the rise of cryptocurrency,......
What is crypto mining and how does it work?
You’re likely already familiar with gold mining, but what is mining for cryptocurrency? Crypto mining is how some......
What is cryptocurrency staking?
You may have heard that cryptocurrency has its own unique equivalent to fixed-income assets. Instead of earning......
What is leverage in trading? A powerful tool for doing more with less
Leverage is a part of everyday financial existence for consumers. Anyone who’s taken out a mortgage to buy a house......
What is market seasonality and why does it occur?
You may have noticed that every year at around the same time, word of seasonal market expectations tends to surface......
What is proof of work? Explaining blockchain verification
You’ve probably heard that Bitcoin transactions are highly secure and executed with near-perfect accuracy despite......
What is the metaverse? Understanding investment opportunities and risks
The metaverse is a network of immersive digital “worlds” that are interconnected so users can move between them,......
What is the relative strength index (RSI)?
When a stock is rallying, we assume there’s an influx of buyers willing to pay higher prices for the shares. Similarly,......
What is Web 3.0? Understanding Web3 decentralized Internet
Have you ever pondered how the Internet works? And we’re not just talking about Web 2.0—today’s Internet of search......
What kind of mood is the market in? Check the Cboe Volatility Index (VIX)
Volatility and uncertainty are part of everyday life. Take the weather, for example. If your local meteorologist......
What’s the difference between day trading and swing trading?
Day trading and swing trading are two distinct styles of market speculation that aim to profit from short-term......
When the upside is down: An intro to short selling of stocks
It’s risky. It’s complex. And if you want approval, you have to jump through hoops. Sounds like the marketing pitch......

Trading Encyclopedia Articles By Title