Stocks

Technical Analysis Explained

What is technical analysis? Technical analysis is the practice of gauging a stock’s future price fluctuations by analyzing past activity. This method involves looking for specific chart patterns and examining other historical data related to price and volume. To give you some perspective, let’s contrast this with fundamental analysis. As the name suggests, this approach […]

Stocks

Long Common Stock

When you own common stock, you hope that the firm will be profitable and you’ll share in the benefit of those profits. If you own a dividend-paying stock, you want to receive excellent dividends and you’d like to see a decent increase in stock price. Some investors feel the higher the dividend, the less they […]

Stocks

Managing Stock Positions

Common methods: Scaling Scaling refers to a somewhat systematic approach of getting in or out of a position in phases instead of all at once. Those phases are defined by share or dollar increments up to your maximum investment. The key to using this method is the planning is done in advance (see pyramiding up), […]

Stocks

Long Common Stock on Margin

The Strategy This strategy is similar to long common stock , but on steroids. That's because when buying stock on margin you normally put up only half of the money to purchase the stock and borrow the other half from your broker. Although the benefit of trading on margin is a boost to your available […]

Stocks

Stock Basics: An Investor’s Guide

Everybody knows the old maxim buy low, sell high, and we all hear rumors around the water cooler about stocks that are poised to take off. Some people think that's all you need to know to make a killing in the stock market. Those people are wrong. Before you begin to invest in stocks or […]

Stocks

Fundamental Analytics Explained: Income Statements

Reading an income statement: Revenues and Costs The income statement gives a more detailed answer to a critical question for any investor: is the company making money? A well-known expression the bottom line comes from income statements. Specifically, it refers to a company's net income. While this is obviously an important figure, it's worth reviewing […]

Stocks

Fundamental Analysis Explained: An Introduction

Fundamental analysis is sometimes considered to be a foundation of solid investing. It helps you determine the underlying health of a company by examining the business' core numbers: income statements, earnings releases, balance sheets, and other indicators of economic health. From these fundamentals, potential investors can evaluate if a stock is under- or over-valued. Fundamental […]

Stocks

Short Selling Explained: An Introduction

Short selling is very different from owning stocks. It's more complex, carries more risk and requires a higher degree of responsibility on the part of the trader engaging in this practice. Before jumping in, you should understand how short selling works and what rules govern your investments, plus the potential risks and rewards involved. Knowing […]

Stocks

Short Selling Explained: Risks and Rewards

What is short selling, and what's in it for traders? Short selling flips the old adage: buy low, sell high. Anticipating that a stock's price will drop, a short seller performs this action in reverse: first they sell high, then they buy low. The tricky part is that the short seller doesn't actually own the […]

Stocks

Short Selling Explained: Trading Strategies

How do you begin short selling as an investment strategy? A number of rules restrict which stocks may be shorted and the necessary conditions for shorting. This means you won't always be able to short any stock you want, whenever you want. Working with an online brokerage service like Ally Invest ensures you have plenty […]