Understanding the Basics
How to Measure Risk
Standard Deviation (volatility)
Measures how much price fluctuate over time, high volatility the greater chance of losing more money.
Price to Earnings Ratio (PE Ratio)
Price to earnings ratio (PE ratio) – price of stock divide by earnings per share eg. 20/2 = 10 read more…
Price to Book Ratio (PB Ratio)
Methods of Trading
- Algorithmic Trading
- Quantitative Trading
Stock Trading Markets (Financial Markets)
NYSE, NASDAQ, AMEX
What are ETFs?
Exchange traded funds (group of stocks) eg. spy (local and international)
Bid – most someone willing to pay
Ask – most someone willing to sell
Bid-Ask Spread – is the difference deciding whether trade proceeds, the bigger the spread it is less likely for the trade and results in liquidity.
Types of Orders
Market Order: market orders involve buying stock at the best available price, routed the time it is placed.
Limit Order: willing to buy stock at certain price