Swing Trading Strategies
A guide to Swing Trading for bullish and bearish traders. Swing Trading is a short-term trading method that can be used when trading stocks and options. Whereas Day Trading positions last less than one day, Swing Trading positions typically last two to six days, but may last as long as two weeks. The goal of […]
Buy Stocks Online Without the Need for a Traditional Broker
Thanks to the proliferation of smart technologies in recent years and a willingness on the part of authorities and exchanges to open their doors to technological integration, the role of the stock broker in the life of individual traders is not growing at the rate of self-directed investing (according to Forbes). Online trading platforms afford […]
What are unsettled funds and why am I being warned or restricted from using them?
Under Regulation T of the Securities and Exchange Act of 1934 all transactions in a cash account must be paid for in full and are also subject to settlement rules. If you purchase a security with settled funds in your cash account you may sell that security at any time without restriction. If you purchase […]
Differences with Buy and Long, or Sell and Short
You’ll notice sometimes an investor or trader may use the word buy while others use the word long. What’s the difference? It could be very little, or a lot, all at the same time. Buying a stock (or an option) is straightforward. It’s the resulting position which might not be obvious. As you probably have […]
ETFs for Beginners
Are you just starting with exchange-traded funds (ETFs)? If so, you may have little or no direct participation in the financial markets. Maybe you’re transitioning from a full-service brokerage or employer-sponsored retirement plan to an online service like Credence Global Bank Invest. Your investing objectives may run the spectrum from conservative to aggressive, but it’s likely you […]
How are “Hard-to-Borrow” fees calculated?
A hard-to-borrow fee is an annualized fee based on the value of a short position and the hard-to-borrow rate for that position. The fee is charged on a pro-rated basis depending on how many days you hold the position short. It will be assessed to your account at the end of the month or upon […]
I just bought a security in my cash account. How soon can I sell it?
Cash accounts are required to abide by industry-wide settlement rules that were established through Regulation T of the Securities and Exchange Act of 1934. These rules dictate that cash proceeds from Stock, ETF, and mutual fund trades will settle on the third business day after the trade date. Option trades, on the other hand, will […]
Day Trading Rules and Leverage
What is a Pattern Day Trader? If a trader exceeds a certain number of day trades within a short period of time, the trader’s brokerage firm is required to mark the account as that of a Pattern Day Trader (PDT). Certain restrictions may apply to these accounts. Since the number of trades is such an […]
