A certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions. CDs are similar to savings accounts in that they are insured and thus virtually risk-free; they are "money in the bank" (CDs are insured by the FDIC for banks or by the NCUA for credit unions). They are different from savings … [Read more...]
Swing Trading system
Swing trading is commonly defined as a stock, index, or commodities trading practice whereby the instrument is bought or sold at or near the end of an up or down price swing caused by daily or weekly price volatility.[1][2] A swing trade position is typically open longer than a day, but shorter than trend following trades or buy and hold investment strategies. Swing traders … [Read more...]
Absolute vs. Relative Return
Absolute return is simply the return on a particular asset, portfolio or investment. The return that an asset achieves over a certain period of time. This measure looks at the appreciation or depreciation (expressed as a percentage) that an asset - usually a stock or a mutual fund - achieves over a given period of time. Relative return is the difference between the absolute … [Read more...]
Paper Trading: Testing Investment Strategies
Paper trading (sometimes also called "virtual stock trading") is a simulated trading process in which would-be investors can 'practice' investing without committing real money. This is done by the manipulation of imaginary money and investment positions that behave in a manner similar to the real markets. Before the widespread use of online trading for the general public, … [Read more...]
S&P( Standard & Poor’s) 500
The S&P 500 is a market free float-weighted index of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock market companies; the NYSE Euronext and the NASDAQ OMX. After the Dow Jones Industrial Average, the … [Read more...]