Stock Trading News

Based on historical data for the S&P 500 index going back to 1928: In up years (when the index has a positive annual return): The average annual percentage gain is around +20%. Up years occur around 72% of the time. In down years (when the index has a negative annual return): The average annual percentage […]

The term “penny stocks” refers to stocks trading at a low price per share, typically under $5, and often outside of major market exchanges (sometimes the pink sheets). These stocks are considered highly speculative due to their low price, small market capitalization, and limited following and disclosure. However, several penny stocks have defied the odds […]

Short interest, often expressed as a percentage known as the “short float,” refers to the proportion of a company’s outstanding shares that are sold short but have not yet been covered or closed out. As a financial indicator, it offers insights into market sentiment and potential price movements.   Relevance of Short Float Market Sentiment […]

OANDA has expanded its selection of instruments with European-listed equities, bringing the total number of stocks available to over 2,200. Key Takeaways OANDA has introduced shares from major European stock exchanges, providing exposure to household names like BMW, Adidas, and Christian Dior. Traders can use the search and filter functions in the OANDA platform to […]

Many traders rely on support and resistance levels to chart price movements and predict buy or sell signals. However, the effectiveness of this technical analysis strategy is a subject of debate. We’ll explore the broader question of whether support and resistance levels work.   Key Takeaways – Do Support & Resistance Levels Work? Limitations of […]

Neuro-Symbolic AI is a field of artificial intelligence and machine learning that combines the strengths of neural networks (for pattern recognition and learning) with symbolic reasoning (for logic and knowledge representation) to create better and more explainable AI systems. By merging the intuitive pattern recognition capabilities of neural networks with the logical reasoning of symbolic […]

Informed trading involves the act of trading securities by individuals or entities who have access to material, non-public information (MNPI), which influences market efficiency and fairness. We look into the essence, implications, and regulatory aspects of informed trading.   Key Takeaways – Informed Trading Asymmetric Information Advantage Informed traders possess superior, often non-public, information about […]

A popular paper in quantitative finance – for a period the #1 most downloaded paper on SSRN – is making the old argument for a 100% equities allocation. The argument against the notion of a 100% equity allocation for long-term investors, based on recent discussions and longstanding financial principles is articulated below.   Key Takeaways […]

Stochastic Discount Factor (SDF) models are central to financial economics, as they provide a unified framework for understanding asset pricing. These models, also known as pricing kernel models, are based on the concept that the price of an asset is the present value of its future payoffs, discounted by a stochastic process.   Key Takeaways […]

Pegged orders are a type of order used in trading that automatically adjusts its price based on certain market conditions. These orders are designed to provide traders with more strategic control over their trades, so they remain competitive in changing markets. There are various types of pegged orders, each with its unique features and applications. […]