Archive for the ‘General’ Category

The year 2011 is almost over, and those who bought stocks (especially bank stocks) at the beginning of the year lost a lot of their investments. Stocks, with the exception of few (such as AAPL), were not a good investment for 2011, for many reasons that...

October 18, 2011 | In: General

Where Can You Buy Stocks?

One of the questions that I always get from new investors is: "OK, now I know how the stock market works, how stock prices are set, and I want to join the game! But, I still don't know where I can buy stocks!" The answer to this question is easy: "Just...

Well, 2011 is almost over, there is now less than 3 months until 2012, so the title of the article should have been "What were the hottest stocks in 2011?"... In any case, here's what I think the hottest stocks in 2011 (note that a hot stock does not...

October 11, 2011 | In: General

Why Buy Stocks With No Dividend?

Often, new investors think why would anyone buy stocks that pay no dividends? After all, dividends are how you can make money out of stocks, no? Well, dividends are one way that you can make money out of stocks, there are other ways, mainly selling stocks...

Some investors believe that the NASDAQ composite index is the same as the NASDAQ 100 index. So are these investors right, and if there is a difference, what is it? To answer the first question, these investors are wrong, the NASDAQ composite is...

When I first started trading stocks, I shrugged when I heard the term spider. I had no idea what it was, and yet I felt ashamed to ask my friends because it seemed to be something taught to investors in "trading stocks 101". In any case, I did my...

New traders are often not clear on how much time it takes an order to get filled. Sometimes an order is filled instantly, sometimes it takes hours. So what is the average fill time of an order? While there's no scientific data on this, I think it's...

September 8, 2011 | In: General

What Is the Average Fill Price?

In my previous article clarifying how stocks prices are set, I have mentioned the term average fill price. So, what is the average fill price and how is it calculated? When I first started trading, I used to only trade very liquid stocks such as BAC...

September 8, 2011 | In: General

Who Sets the Price of Stocks?

Many beginners in the stock market, as well as would be part-time stock traders, want to know who sets the price of stocks. They think that there's an entity/organization who is responsible of setting the price of a stock. Now while stocks in the US are...

I have previously explained wash trading, which is an illegal and prohibited practice for a long time now. However, there is a similar stock trading activity that is legal in some situations and practiced all the time, it is called a wash sale. A wash...

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