May 11, 20220Comments

Automated Market Maker

Market makers are market liquidity providers. Stock exchange market makers have functioned for years quoting both buy and sell prices. These market makers make their money on the difference between

by Michael Guess

May 4, 20220Comments

Elliott Wave Theory

Day traders in commodity futures, stock, and currencies primarily focus on short term price fluctuations. However, it is always wise to have an appreciation for longer term trends and the

by Michael Guess

April 27, 20220Comments

Best Trading Tools

An important factor in day trading success is the set of trading tools that a trader uses. Evaluating patterns in trading data allows a trader to time their buying and

by Michael Guess

April 20, 20220Comments

Japanese Candlesticks

There are many indicators that help make day trading successful but none with the history of Japanese Candlesticks. This trading indicator dates back to 18th century Japan when Samurai wielded

by Michael Guess

April 13, 20220Comments

Advantages and Disadvantages of Futures Contracts

Futures contracts have their advantages and disadvantages. Easy pricing, risk hedging, and high liquidity are positive aspects of trading futures. Price fluctuations, asset price reduction when a contract approaches its

by Michael Guess

April 6, 20220Comments

Sortino Ratio

Volatility is commonly where profits lie in day trading. But sometimes volatility is dangerous. A variation of the Sharpe ratio, called the Sortino ratio, will help you recognize when volatility

by Michael Guess

March 30, 20220Comments

How to Use Average True Range

In order to assess market trends objectively a day trader needs precise tools. One indicator that offers many advantages is the average true range. This day trading tool is a

by Michael Guess

March 23, 20220Comments

Private Company Buy Back Shares

In recent years buying back company shares has become more popular than paying dividends for public companies. They do this to increase their share price. A private company can buy

by Michael Guess

March 16, 20220Comments

What Is Quadruple Witching?

Once every quarter the expiration dates for stock options, stock index options, single stock futures, and stock index futures fall on the same day. This simultaneous expiration is called quadruple

by Michael Guess

March 9, 20220Comments

Circuit Breaker Halt

When the New York Stock Exchange becomes very volatile and prices drop precipitously, trading is halted. There are three levels, I, II, and III, based on drops in the S&P

by Michael Guess

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