What Does Relative Performance Mean?
Relative performance (RP) measures how a stock is performing relative to a specific market or index. Using RP lines is a good way to gauge a stock's health.
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Investing Lessons
What Does Buy-on-Stop Mean?
A buy-on-stop is a trade order used to limit a loss or protect a profit. It's a buy order held until the market price hits the stop price.
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Options Trading Terminology
Options trading has its own vernacular. To get started trading options, it's important to familiarize yourself with the following terms.
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The Pros and Cons of Sector Investing
Sector investing can allow you to play a group of stocks that are hot, and avoid the ones that are tanking. But it's not as easy as it sounds.
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Why Is Trading Volume So Important?
Trading volume reflects overall market activity, indicating the sheer amount of buying and selling of securities. Here's why it's so important.
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What is a Double Bottom Chart Pattern?
A double bottom chart pattern is a chart pattern used in technical stock analysis to describe the fall in price of a stock or index, followed by a rebound, then another drop to a level that's roughly similar to the original drop, and another...
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Earnings Season and How to Handle It
How should you play earnings season? There is no one, perfect way. But I'll highlight the good and bad of three different, realistic scenarios.
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Practicing Patience in Stock Investing
Most investors lack patience - the toughest thing to do in stock investing is nothing. But for long-term investors, patience pays.
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Our 3 Best Market Timing Indicators
Cabot's proven Market Timing Indicators are Cabot Trend Lines, Cabot Tides and Two-Second Indicator. Here's how each of them works.
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Cutting Stock Market Losses Short
Our method of cutting stock market losses short rests on a set of rules developed over 45 years of investment advisory experience. Here's how it works.
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Cabot’s Investing Techniques FAQs
Q: What does the Cabot Tides Market Timing Indicator tell us?
A: The Cabot Tides Market Timing Indicator is a technical indicator that uses five different market indexes to help us determine the overall intermediate-term direction of the stock market. The indexes are:
S&P NYSE...
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Investing Books
August 15, 2017 | by Paul Goodwin
I have just three points to make about investing books.
First, don't expect an investing book to change your work life or your investing life.
You got to be the investor you are through a lifetime of experience, and one...
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Technical Analysis of Stocks
Technical analysis of stock trends helps investors to determine how the markets, and their stocks in particular, are likely to behave in the days ahead.
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What Is Investment Leverage?
Investment leverage, which in investment terms is just a fancy word for "debt," can move worlds of money if used properly.
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Advanced Technical Analysis
This page deals with topics discussed in advanced technical analysis. If you're new to technical analysis or need a refresher, click here.
Double Top
A double top occurs when a stock attempts to break out above a recent peak but fails. (Remember, that first peak resistance!)...
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Small-Cap Confidential FAQs
Q: How should I systematically use Cabot Small-Cap Confidential to invest? (Do I invest in every recommended stock, etc.?)
Tyler Laundon: For starters, it’s important to recognize that every investor is different. We all have different risk profiles, different amounts of capital to invest preferences...
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Value Investing FAQs
Q: What is your investment process and criteria for investments?
Roy Ward: I am a value investor. I look for high-quality companies that are undervalued, and companies with strong balance sheets and low price to earnings (P/E) ratios. I use the criteria spelled out the...
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Options Trading FAQs
Q: What is an option
Jacob Mintz: Before you read any further, make a cup of coffee. For the uninitiated, options can get complicated.
An option is a contract that gives its owner the right (but not the obligation) to purchase or sell an underlying at...
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Growth Stock Investing FAQs
What are the best practices of growth investors?
Here are some keys to becoming a successful growth stock investor:
1. Work to identify truly great growth companies
2. Cut your losses short
3. Let your winners run
4. Hold stocks of good companies long term
5. Avoid buying on avoid...
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How Do I Plan for Investment Risk?
Investment risk is a fact of life. Without risk, there would be no reward. The important thing is to know how to plan for it.
Since I was a sophomore in college, my passion has been the stock market—learning its history, finding what methods and...
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