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Bell Curve in Investing Bar Chart in Stock Trading Arithmetic Mean in Investing
 

Bell Curve in Investing

Bell curve is the commonest form of distribution for a variable. The term is derived from the notion that the graph that shows a normal distribution features a bell-shaped line. Also, this curve is termed a normal distribution. It is not common to refer to the bell curve as a Gaussian distribution, in line with […]

Bar Chart in Stock Trading

Bar chart is one of the chart patterns that technical analysts use in stock and other investment types. In a typical bar chart indicating price movements in the stock market, the top of the chart (for the vertical axis) will show a security’s highest price as traded during the day, while the bottom of the […]

Arithmetic Mean in Investing

Generally, arithmetic mean is a way of representing the actual value of series of numbers mathematically, calculated as the sum of the entire numbers in the set of series all- over the frequency (count) of the entire numbers in the set of series. A popular term for this concept is ‘mean’ or simply ‘average’. Arithmetic […]

What is the Best Stock Market Trading Strategy?

13 December 2013

Stock market trading strategy refers to a set of objective rules that spell out the conditions that need to be met prior to trade entries and exits. This set of objective rules would include trade filters and triggers, and specifications for trade entries. Trading strategy will also include rules for trade exits, timeframes, money management, […]

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How to Avoid Analysis Paralysis in Trading

13 December 2013

In trading, you can see analysis paralysis as information overload. It is a scenario where a trader gets overwhelmed by tons of possibilities of price movement in action, and each scenario tends to present an opposing view in the trader’s mind. These opposing views create conflict and confusion, so that the trader finds it very […]

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Bloodletting in Investing

13 December 2013

In stock trading or other investments, bloodletting refers to a period characterized by intense investment losses. This phenomenon can take place in the course of a bear market when the value of securities in several sectors is likely to depreciate heavily and rapidly. Blood letting concept is derived from a historic medical practice where physicians […]

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Behaviorist: Understanding Investor Behavior

13 December 2013

Literally, a behaviorist is someone who embraces the theory of behaviorism. And, as it relates to investing, behaviorists and behaviorism examine investors’ behavior in investing. Thus, when it comes to stock or other investing, people may think they are very rational when they are actually not. Behaviorists are of the opinion that investors usually act […]

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Behavioral Economics: What You Should Know

13 December 2013

Behavioral economics is related to behavioral finance and the concept examines the effects that emotional, cognitive and social factors has on both individuals and institutions’ economic decisions, as well as the consequences for returns, market prices and resource allocation. The concept is basically about the bounds of economic agents’ rationality. Behavioral finance or economics also […]

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Bandwagon Effect and Its Implication in the Investment World

13 December 2013

In its simplest definition, bandwagon effect refers to situation where people do certain things because many others are going the same direction, even when their instinct tells them otherwise. Perhaps you’ve witnessed the case of several people ‘getting on the bandwagon’ of popularly demanded products. This concept also affects our investment decisions. An Example of […]

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