You will find rainmakers on Wall Street brilliant, gifted, world beating heads. They’re hired by the biggest hedge funds and investment banks around the planet. Some of them program trading robots, known as “black boxes” and create high frequency trading algorithms, capitalizing on arbitrage opportunities between global markets and who knows what else or what. If you aren’t among these gorgeous thoughts, if you didn’t graduate MIT, do not worry; there is hope. You can make a living out of trading with no rainmaker. One way is to learn where it’s raining and hold out your bucket.
The defining characteristic of this Setup, other than the substantial price movement, is that the massive growth in quantity relative to the stock’s average.
What happens is some kind of Significant catalyst occurs, for example a positive earnings surprise, a news story creating expectations of expansion, etc. This may cause a rush of retail and institutional buyers to the inventory, which generates demand and pushes the price up.
Now that you know these big moves Exist for tradestockalerts, the upcoming few chapters will teach you the individual components you’ll want to be effective at identifying them, capitalizing on them and preventing the ones that you should stay away from.
Fundamental Analysis vs. Technical Analysis
These are two differing schools of Thought when it comes to justifying an investment or trading decision.
Fundamental analysis attempts to unravel what a business is truly worth now and what it will likely be worth in the long run, based on financial reports and underlying variables that affect the company and operations. Someone performing fundamental analysis of a stock is trying to arrive at the value of a company in order to compare this value to the share cost to ascertain if the present cost is over-inflated or undervalued regarding day trading alarms.
Someone performing technical analysis is trying to forecast where the price of a stock will probably be later on, based on chart patterns and mathematical indicators.
Trading vs. Investing
Ordinarily, “investing” refers to a Longer term holding period and a focus on basic analysis; the concept is to purchase value which may appreciate over time. “Trading” refers to a short-term holding period and frequent buying and selling with a focus mainly on technical analysis; the notion would be to make the most of short-term fluctuations in price.
Those market participants that think Market participants who believe a stock’s price will collapse are referred to as “bears” or as being bearish. Buyers are bullish; sellers are bearish. Obviously you are hoping for a bull fashion with day trade alerts.
