Chen Model is a mathematical model. The Chen Model deals with the interest rates and their development. The Chen Model is important in the context of finance. It was the first stochastic mean and stochastic volatility model and it was published in 1994 by Lin Chen. The Chen Model could be described as being a certain kind of "one-factor model". It could also be called a … [Read more...]
What Are the Benefits of Owning Common Stock?
What Is Common Stock? Common stock is the most basic kind of stock that a company can emit. Owning common stock from a company means that the stockowner owns a piece of the company. This ownership can be executed through his voting rights: one share, one vote. Proprietors of common stock can choose the members of the board and even decide determined policies. Besides the … [Read more...]
What is Stock Market Crash ?
In recent times many would-be investors simply refuse to enter the stock market, because of the risks involvedand fear of crash in stock market . . While it is true that crashes can happen, understanding what causes a crash and what the effects are can help set your mind at ease and can help you understand more about investing. What Happens When The Stock Market Crashes? A … [Read more...]
Check List of Things for Trading in Stocks
1.) If the lead stochastic crosses over the 20 band consider this a possible buy signal, and if it crosses below 80, then it would be a sell signal. 2.) Use several charts in different time periods for each stock you are trading. 60, 13, 8, 3, and 1 minute charts will enable you to see the bigger picture. If the 60, 13, and 8 minute charts are in an uptrend, look at the 3 / … [Read more...]
Relative Momentum Index : The Basic Concept
The Relative Momentum Index function determines the internal momentum of a field using the number of upward and downward price changes across a given number of bars over a given period of time. The Relative Momentum Index is based on a ratio of the average upward changes to the average downward changes over a given period of time. The individual changes are calculated for … [Read more...]