Archives

A strategy for selecting stocks using screening criteria that have been found to work in the past.

Company with market capitalization less than $1 billion.

Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company’s balance sheet or an individual’s net worth statement.

Usually involves looking for stocks in a strong uptrend (high relative strength), strong earnings growth, and increasing earnings forecasts. In today’s market, may include relative strength only.

Orders which must trade under special conditions. For example, a cash order will be settled sooner than the usual three-day settlement period.

This is the price of the last trade of a stock when the market closes for the day. This price is of primary importance in our trading as where a stock closes in its range tells us much about the direction and momentum of the stock.

Companies currently in favor by investors (price/sales greater than 10, price/earnings greater than 35 or so).

A session during which trading in a listed security is limited to the execution of transactions at a single price.

This is a stock’s trading price when a stock begins trading for the day. It may gap up, gap down, or open where it closed the previous session. Where a stock opens can be deceptive, especially if the stock gaps up or down significantly from the closing price.

Part of the capital market established to buy and sell short-term financial obligations. These include federal government treasury bills, short-term Government of Canada bonds, commercial paper, bankers’ acceptances and guaranteed investment certificates. Longer-term securities are also traded in the money market when their term shortens to three years.