What is a bull trap? A bull trap tricks investors into thinking a stock price decline is finished and that it’s a good time to buy. Learn how to avoid being in one.
Some option traders stick to selling strategies only, but buying calls and puts have their place too. You just have to remember these five tips.
The volume-weighted average price (VWAP) indicates the average price of an intraday period weighted by volume. The value is calculated during the trading day, from open to close, making it a real-time dynamic indicator.
When a trend is bullish or bearish, a reversal may be near. There may be no way of identifying the end of a trend, but you may be able to analyze the crowd’s behavior by looking at charts.
Whether you first started charting stocks on paper, software, or a smartphone, you’re likely to make the same charting errors. Here’s how to avoid falling into typical charting traps.
thinkorswim Web is the TD Ameritrade streamlined, web-based options trading platform that lets you trade wherever you have an internet connection.
When your stock options trading strategies aren't working as expected, it could mean you have to revisit the strategy, change your trade position sizes, or tweak a few strategy parameters. Here are some ways to fix the problem.
With so many technical indicators to choose from, it can be tough to choose the ones to use in your stock trading. Consider a top-down approach to help you decide whether to use stock momentum indicators, trend indicators, or consolidating indicators.
Too many indicators can lead to indecision. Check out this stock analysis tool from TD Ameritrade that can help you make decisions about stock trades.
Trend direction and volatility are two variables an option trader relies on. Combining trend following, momentum, and trend reversal indicators on the thinkorswim platform may help you determine which direction prices may be moving and with how much momentum.
Understand the difference between trading range-bound stocks versus stocks in a trend.
Confirmation indicators such as moving averages and the relative strength index can help ascertain whether a stock will continue a trend.
Fundamental or technical analysis? You don’t have to choose. A combination can help with potential entries and exits.
Do Not Sell or Share My Personal Information
Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2023 Charles Schwab & Co. Inc. All rights reserved.