Short squeezes can introduce a lot of volatility into stocks and send share prices sharply higher. These squeezes offer opportunities for trading, but they often require different strategies and more caution than traditional breakouts. In this article, we’ll take a...
Introduction For traders who trade on margin, understanding your buying power is essential to staying on the right side of margin requirements. Buying power controls how much money you can deploy at any time. Importantly, buying power changes between market hours and...
There are different chart patterns that stock traders can use to help them make informed trading decisions. In this guide, we will focus on the bearish pennant pattern. This formation often signals a downtrend and can be used to predict price movements. We will...
A head and shoulders chart pattern typically indicates a reversal at the end of an uptrend. It includes three peaks with troughs between them and can be followed by a significant breakdown. In this guide, we’ll highlight what traders need to know about head and...
If you’ve ever traded stocks, you’ve probably used a market maker. Market makers are the middlemen of the stock market, and in most cases, these are firms, individuals, and or large corporations that facilitate transactions. For example, if you wanted to...
Investors can hold onto long positions for years or even decades without running into problems. But most short positions are much shorter in duration – a few months to a few years at most. There are several practical limitations that limit how much time traders can...
