Terminology
Basic Terminology Day Trading: Day Trading is defined simply as the act of buying and selling the same asset on the same day. Pattern Day Trader Rules (PDT): This is the bane of all small accounts, the PDT rules state that if a trader takes 3 or more day trades in a 5 day period, […]
What is a Put?
Put contracts are a directional speculative bet similar to a call contract. Buying a put is bearish (I think the underlying is going to go down) and selling a put is bullish (I think the underlying is going to go up). A bought put is referred to as a long put, a sold put is […]
What is a Call?
Call contracts are a directional speculative bet, buying a call is bullish (I think the underlying is going to go up) and selling a call is bearish (I think the underlying is going to go down). A bought call is referred to as a long call, a sold call is referred to as a short […]
How to trade via Support and Resistance
First, let’s define some simple terms to help us understand supply and demand and how they can affect support and resistance. Supply: In terms of the stock market, supply refers to the number of available shares, also known as the float. A security that has a small supply can see a rapid increase in price […]