Wasim Omar

Understanding Stock Circuit Breakers: What Investors Need to Know

At its extreme, volatility in the stock market can be a deadly business. In some devastating episodes of the financial market’s history, some quite recent, fortunes have been wiped off in just a matter of days. There are several mechanisms that are triggered into action when market crashes unfold. One, in particular, is the stock circuit …

Cyclical Stock – Identifying and Trading Cyclical Stocks for Profit

The most seasoned investors recognize that the best way to play the stock market is to look to the past and identify patterns. This is due to the cyclical nature of the financial markets. Looking to the past to predict future market behavior sets apart investors from speculators. As we will see, cycle shifts take place …

Humped Yield Curve – Interpreting the Humped Yield Curve and Its Implications

Yield curves are listed among some of the most critical sources of knowledge, in the world of finance. Its role in banking and the bond markets are especially crucial, as it indicates the market’s perception and willingness on the debt market. One specific type of yield curve is the humped yield curve, with a shape …

Range Trading – Effective Range Trading Strategies for Stocks

By their very nature, market players select trading strategies that are in line with their investment horizon, risk appetite, trading objectives, and other factors. Range trading is a perfect example of such a tailored strategy that is the go-to choice by many traders in the market. There is a lot the range trade approach has to …

Back End Load – Avoiding the Hidden Costs of Back End Load Funds

Before committing one’s savings to a fund, it is highly essential to have a thorough understanding of how the fee structure works. This is important because broker compensation directly impacts an investor’s returns. In a typical fund, especially in mutual funds, there are three main forms of broker compensation schemes. These are front end load, …

Negotiable CD – Investing in Negotiable CDs: Pros, Cons, and Risks

The study of banking instruments is a highly fruitful pursuit, as it involves gaining a deep understanding of some of the most traditional and long-withstanding investment avenues available in the market. Among these is the negotiable CD (certificate of deposit) which has stood against the test of time, and continues to be a mainstream investment for …

VWAP Trading: Using Volume-Weighted Average Price for Better Investment Decisions

Stock traders often consult a wide range of metrics to inform their decisions, and guide their strategy. However, the most overlooked of these metrics remains volume, a crucial indicator that delivers tremendous insight. Volume analysis is a niche area that few analysts consider, but those that recognize its potential understand the value these ignored sets …

Call Option Strike Price: Definition and Importance for Traders

Although stocks remain one of the primary investment classes in the financial markets, there is no denying the booming growth of the derivatives market, since the 1970s. Derivatives refer to securities that derive their value from elsewhere, for instance, the price of a commodity. The call option strike price is one of the most fundamental concepts …

Convertible Shares – Investing in Convertible Shares: An Overview

The financial markets are afloat with a broad variety of different security types, and understanding what each of them is can help you make informed investment decisions, and ensure sound financial planning. Convertible shares are a category of financial securities that many in the market deal with. Having knowledge of this investment category, therefore, is a …

Stop Limit Orders – Maximizing Profits with Stop Limit Orders

In the realm of finance, stop limit orders are essential tools at an investor’s disposal for ensuring the maximization of profits, and minimization of net losses. Because it directly assists with these fundamental market goals, understanding them is key to a sound investment approach. These orders combine the prudence of market participants with the dynamic …