• Last updated 2/3/11 by Gil Oren

Stop Loss Orders: A Stop Loss is an order you place with your broker to close or sell a security when it reaches a certain price. Stop Loss orders may be put in during the initial order, but may also be a separate order you place after your entry order. Such depends on your brokers platform and how they take orders.   Stop Losses are designed to be used to minimize a traders risk or loss on a security. They are a stop-gap measure and means to protect a trader & minimize losses, for times when a trader may not be able to monitor or be in a position or location to... read more

• Last updated 2/10/11 by wolf825

The Trade Plan Simply put a trade plan is a plan you make for a single trade you take, considering all the potential factors from entry and exit to stoploss, from a full win to limited failure, and the reasons why such may occur in between. This means a trader, often in an Option or Forex trade, has planned out what they expect a trade  to do in performance, for both good and bad, before they take the trade. They then use this to evaluate their options or look for additional ways to improve. Often when a trader makes a detailed plan and considers the reasons... read more

• Last updated 2/3/11 by Gil Oren

You have probably heard of Level 2 quotes and are wondering what they are, how to use them and how to get them. Good news! All your questions will now be answered. When you get a normal stock quote, you see the price of the last trade, the volume and the change from the previous price, this can be called a Level 1 quote. Level 2 (L2, LII) is an essential tool that any serious trader requires. L2 lets you look behind the scenes at what is going on beyond the current bid and ask of a stock and gives you a clear snapshot of how much demand and supply there is at... read more

• Last updated 2/3/11 by Gil Oren

MOVING AVERAGE CONVERGENCE/DIVERGENCE (MACD) a lagging indicator that is also a form of Absolute Price Oscillator   Definitions   Gerald Appel developed MACD as a technical analysis indicator in the late 1970s. MACD shows the difference between a fast and slow exponential moving average (EMA) of closing prices.   MACD is a type of Absolute Price Oscillator (APO). This means that it takes the difference of two price EMAs. An alternate form of price oscillator is the Percentage Price Oscillator (PPO) which is derived by dividing the difference between two... read more

• Last updated 2/4/11 by wolf825

Divergence: Divergence is when the price of a security and an indicator or oscillator, move in opposite directions of each other. One gains while the other loses. So simply put you have two lines that are basically moving drastically apart from each other, instead of moving together in similar patterns. This often signals a potential pending change, stall or shift in price movement. When doing your chart technical analysis, divergence is either negative or positive depending on the separation or move.   Negative divergence happens when the price of the... read more

• Last updated 11/15/12 by Gil Oren

HotStockMarket (HSM) is one of the top rated financial message boards with stock forums for penny stocks, mid caps. blue chips, option traders, forex, stock tips and technical analysis.   Our Stock Market Today thread keeps you updated on intraday fluctuations as they happen, traders share information, news and stock tips throughout the day.   Options, futures, forex and penny stock traders all have a home here on HSM.   Mission: To provide coverage and discussion about current events, educate investors and improve trading skills.   Contact: You can... read more

• Last updated 2/3/11 by Gil Oren

Forex, a.k.a. FX, is short for Foreign Exchange, which is usually referring to trades occurring in the Currency market. Forex trading is the buying and selling of foreign currencies on an (OTC) over-the-counter exchange, and on a daily basis there are over $2trillion dollars in trades that occur world wide. The 'spot' Forex markets opened up to the average consumer for trading only in the late 1970's. In the US and for US traders, legitimate Forex brokers are reviewed and regulated and by the CTFC and NFA.  For the longest time the Currency Markets were the "wild west"... read more

• Last updated 2/3/11 by Gil Oren

Relative Strength Index (RSI) a momentum oscillator   J. Welles Wider developed the RSI and published it in a 1978 book, “New Concepts in Technical Trading Systems”. It was also published in Commodities magazine (now Futures magazine) in June of the same year.   Purpose   The RSI is used as a trading indicator in the technical analysis of financial markets. Based on the closing prices of completed trading periods, one of its purpose is to indicate the current and historical strength of a market. In a RSI, it is assumed that prices close... read more

• Last updated 1/26/12 by tardistossoff

So you want to learn about options do you? Welcome to StockJock-e's Options Wiki!   Options can be your best friend, or your worst enemy. Like any leveraged instrument you can make a lot of money very quickly, or lose it just as fast.   In this wiki I will attempt to get you on the right side of option trading with the correct mind set that should help you avoid the deadly pitfalls that most new option traders fall into.   Before I explain what options are, you need to understand what leverage is.   Leverage   Leverage can most easily be explained... read more

• Last updated 2/3/11 by Gil Oren

Learn how to: Use the Basic Search Mode Use the Advanced Search Use Boolean Operators And Wildcards In Search Save Your Searches   Use the Basic Search Mode How To Execute a Basic Search At the top of every page, you will see the search bar to search the entire site (forums, reviews, Wikis, user profiles, etc). Enter your search keywords into the search bar. Click the "Search" button. Your results will display on several different tabs, divided up by the different types of content.  The first tab will show all of the results... read more