Investments Reference

Adding To A Loser definition explanation

What is Adding To A Loser?
The action of a trader/investor increasing a position in an asset when its price is heading in the direction that’s opposite to what the investor/trader desires. This is generally not a wise investment decision because unless the asset begins to move in the desired direction, the investor’s losses will increase. Read more for examples and further explanation including related video clips and also comments
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Active Management definition explanation

What is Active Management?
The use of a human element, such as a single manager, co-managers or a team of managers, to actively manage a fund’s portfolio. Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. The opposite of active management is called passive management, better known as “”indexing”". Read more for examples and further explanation including related video clips and also comments
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Active Investing definition explanation

What is Active Investing?
An investment strategy involving ongoing buying and selling actions by the investor. Active investors purchase investments and continuously monitor their activity in order to exploit profitable conditions. Read more for examples and further explanation including related video clips and also comments
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Absolute Breadth Index – ABI definition explanation

What is Absolute Breadth Index – ABI?
A market indicator used to determine volatility levels in the market without factoring in price direction. It is calculated by taking the absolute value of the difference between the number of advancing issues and the number of declining issues. Typically, large numbers suggest volatility is increasing, which is likely to cause significant changes in stock prices in the coming weeks. Read more for examples and further explanation including related video clips and also comments
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Above The Market definition explanation

What is Above The Market?
An order to buy or sell at a price set higher than the current market price of the security. Examples of above the market orders include: a limit order to sell, a stop order to buy, or a stop-limit order to buy. Read more for examples and further explanation including related video clips and also comments
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130-30 Strategy definition explanation

What is 130-30 Strategy?
A strategy that uses financial leverage by shorting poor performing stocks and purchasing shares that are expected to have high returns. A 130-30 ratio implies shorting stocks up to 30% of the portfolio value and then using the funds to take a long position in the stocks the investor feels will outperform the market. Often, investors will mimic an index such as the S&P 500 when choosing stocks for this strategy. Read more for examples and further explanation including related video clips and also comments
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Announcement Effect definition explanation

What is Announcement Effect?
The impact on markets from the news that a change will occur at some future date. It can be used as a general term for the reaction to any development that affects trading, such as a change in dividend policy or a stock split. It is most often used, however, to describe investor reactions to changes in monetary policy, such as a hike or cut in a key interest rate level.

Also known as a “”signal effect.”" Read more for examples and further explanation including related video clips and also comments
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Anonymous Trading definition explanation

What is Anonymous Trading?
Visible bids and offers on the market without the identity of the bidder and seller being revealed. Read more for examples and further explanation including related video clips and also comments
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Arbitrageur definition explanation

What is Arbitrageur?
A type of investor who attempts to profit from price inefficiencies in the market by making simultaneous trades that offset each other and captures risk-free profits. An arbitrageur would, for example, seek out price discrepancies between stocks listed on more than one exchange, buy the undervalued shares on one exchange while short selling the same number of overvalued shares on another exchange, thus capturing risk-free profits as the prices on the two exchanges converge. Read more for examples and further explanation including related video clips and also comments
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Aroon Indicator definition explanation

What is Aroon Indicator?
A technical indicator, developed by Tushar Chande in 1995, used for identifying trends in an underlying security and the likelihood that the trends will reverse. It is made up of two lines: one line is called “”Aroon up”", which measures the strength of the uptrend, and the other line is called “”Aroon down”", which measures the downtrend. The indicator reports the time it is taking for the price to reach, from a starting point, the highest and lowest points over a given time period, each reported as a percentage of total time. Both the Aroon up and the Aroon down fluctuate between zero and 100, with values close to 100 indicating a strong trend, and zero indicating a weak trend. The lower the Aroon up, the weaker the uptrend and the stronger the downtrend, and vice versa. The main assumption underlying this indicator is that a stock’s price will close at record highs in an uptrend, and record lows in a downtrend. Read more for examples and further explanation including related video clips and also comments
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