Day Trading

Is Day Trading gambling? Lot of people think of it that way and for many it’s daily 9-5 job. There are different types of investors and traders for different markets. There is long term investing, there are swing traders – people who buy/sell stocks for a few days to weeks – and then there are day traders who buy and sell stocks multiple times in any given day.

Large hedge funds, banks and institutions that have day trading as part of their strategy to invest and make money for their clients. High Frequency Trading is nothing but Day Trading. Continue reading

Big Market Swings in the U.S., are You In or Out?

S&P 500 Market Swings

The big market swings in the U.S stock indexes recently are similar to a roll-a-coaster ride. Climbs a little, drops a little, then a huge climb followed by a sudden elevator drop. You get the gist. This is called Market Volatility.

All the 3 indexes have seen a fair share of the gain only to give it away very rapidly and then regain some back. This rapid market swings sometimes shakes investors off causing them to take steps they otherwise would not have taken. For example, some might sell existing stock holdings thinking the market is going to go down more. Some might buy new stock to add to their portfolio or buy more of existing stocks they own to dollar cost average the price.

Why is this happening?

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Nasdaq Breached 5000 level

NasdaqSimple Investing Summary: Nasdaq has caught up with indexes in terms of making new highs.  Technology and Healthcare sectors are propelling Nasdaq higher.

The other day Nasdaq closed above 5000. This is big psychological number and has a lot to say about the current stock market and the underlying economic fundamentals. It was 15 years ago on March 10, 2000 when Nasdaq reached an all-time high of 5048. Does this level conjure memory of the tech bubble from that era? There were technology businesses sprouting all around the silicon valley by the dozen every day and going IPO at the fastest pace. Young entrepreneurs shot up to the millionaires status overnight and just as fast lost everything like a roll coaster ride. It wasn’t at Six Flags or any Disney park – it was the dot-com bubble. Continue reading