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.
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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.
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