Archive for July 10th, 2010

Many traders in today’s stock market are opting to use a technical analysis tools program which carries out all of the analytical work on their behalves and delivers stock tips which are algorithmically based right to their e-mails. At this point any kind of investor whether you’re a Wall Street mogul or a stay-at-home mom can trade accordingly without having the time to put towards the analytics.

Asset allocation is when an investor divides their portfolio amongst various asset classes into percentages based on their individual time horizon and risk appetite. It used to be quite normal for one to diversify their portfolio and maintain a “buy & hold” strategy with the occasional re-balancing. However, this old style diversification that once was instrumental in reducing volatility risk has become harder and harder to achieve due to global markets which often move in sync with each other more and more over the last decade.

How does the Open Outcry system of trading work? What are some of the exchanges that utilize this type of trading?