Tag: Buying

What is Cash Trading?
A method of buying or selling securities by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved by using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made. Read more for examples and further explanation including related video clips and also comments
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What is Setup Price?
A price level predetermined as the point of entry into a specific security, stock, or currency. Once the setup price is broken the trader will enter the position determined by the setup. This could include shorting a stock because they think the price will drop or going long because they expect an upward movement. Read more for examples and further explanation including related video clips and also comments
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What is Gap?
A break between prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between. Gaps can be created by factors such as regular buying or selling pressure, earnings announcements, a change in an analyst’s outlook or any other type of news release. Read more for examples and further explanation including related video clips and also comments
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What is Buy A Bounce?
A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Traders who “”buy a bounce”” attempt to profit from a short-term correction or “”bounce”” off of the identified support. Read more for examples and further explanation including related video clips and also comments
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What is Over-The-Counter Exchange Of India – OTCEI?
An electronic stock exchange based in India that is comprised of small- and medium-sized firms looking to gain access to the capital markets. Like electronic exchanges in the U.S. such as the Nasdaq, there is no central place of exchange and all trading is done through electronic networks. Read more for examples and further explanation including related video clips and also comments
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What is Strangle?
An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset.

This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. Read more for examples and further explanation including related video clips and also comments
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What is Dollar-Cost Averaging – DCA?
The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high.

Also referred to as a “”constant dollar plan””. Read more for examples and further explanation including related video clips and also comments
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