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What is Lock In Profits?
Realizing the gains of a position, such as buying a stock, by exiting at a profit. By locking in, that portion of the investment is no longer exposed to risks. All profits are unrealized until the position is closed.
Also known as “realization.” Read more for examples and further explanation including related video clips and also comments
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What is Buy The Dips?
A slang phrase regarding the practice of purchasing stocks following a decline in prices. After a significant dip in the price of a security or stock index, investors should increase positions or purchase different stocks to capitalize on what is seen as an eventual upswing. Read more for examples and further explanation including related video clips and also comments
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What is Range-Bound Trading?
A trading strategy that identifies stocks trading in channels. By finding major support and resistance levels with technical analysis, a trend trader buys stocks at the lower level of support (bottom of the channel) and sells them near resistance (top of the channel). Read more for examples and further explanation including related video clips and also comments
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What is Record Low?
The lowest historical price level reached by a security, commodity or index during trading. A record low can be reached during a trading day, and is recorded regardless of whether it is the closing price. Record lows tend to be nominal values, which do not account for inflation. Read more for examples and further explanation including related video clips and also comments
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What is Money Manager?
A business or bank responsible for managing the securities portfolio of an individual or institutional investor. Typically, a money manager employs people with various expertise ranging from research and selection of investment options to monitoring the assets and deciding when to sell them. In return for a fee, the money manager has the fiduciary duty to choose and manage investments prudently for his or her clients, including developing an appropriate investment strategy, and buying and selling securities to meet those goals.
Also known as “”portfolio manager”” or “”investment manager””. Read more for examples and further explanation including related video clips and also comments
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What is Mutual Fund Timing?
A legal, but frowned-upon practice, whereby traders attempt to gain short-term profits from buying and selling mutual funds to benefit from the differences between the daily closing prices.
Don’t confuse market timing with mutual fund timing. Market timing is a very acceptable practice of trying to predict the best time to buy and sell stocks. Read more for examples and further explanation including related video clips and also comments
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What is Return On Capital Gains?
The return that one gets from an increase in the value of a capital asset (investment or real estate). Read more for examples and further explanation including related video clips and also comments
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What is Dividend Rollover Plan?
An investment strategy in which a dividend-paying stock is purchased right before the ex-dividend date, which gives the purchaser the right to the divided, with the position being sold off shortly after the ex-dividend date. The sole intention of this practice is to reap the value of the dividends while breaking even on the shares. Ideally, this strategy is designed to maximize short-term return on shares while minimizing risk.
Also known as a “”dividend capture strategy””. Read more for examples and further explanation including related video clips and also comments
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What is Value Stock?
A stock that tends to trade at a lower price relative to it’s fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio. Read more for examples and further explanation including related video clips and also comments
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What is Inventory Turnover?
A ratio showing how many times a company’s inventory is sold and replaced over a period. the
The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand or “”inventory turnover days””. Read more for examples and further explanation including related video clips and also comments
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