2% Rule

What Is the 2% Rule? The “two percent rule” (or, “2% rule”) is a real estate investing guideline.  It recommends that monthly rent should be set at 2% of total investment.  This helps ensure that a rental property generates positive monthly cashflow. The 2% rule is a...

Accumulation

What Is Accumulation? In trading and investing, accumulation is the act of acquiring more of an asset over a period of time, usually across the course of multiple transactions.  This buying activity could be performed by an individual, a fund, an institution, or the...

1% Rule

What Is the 1% Rule? The “one percent rule” (or, “1% rule”) is a commonly used guideline for real estate investing.  It recommends that monthly rent should be set at 1% of total investment.  It helps ensure that a rental property generates positive cashflow (or at...

Stop Loss

What Is a Stop Loss Order? A stop loss is a type of order wherein a market buy or sell order is executed automatically if the asset reaches a specific price.  This allows traders to manage risk without monitoring the market around the clock. Stop losses can be used to...

Volume

What Is Trading Volume? Volume is the quantity of an asset that is trading over a specific time period.  It can be measured in shares, contracts, or any other measurement relative to the asset being traded.  Trading volume takes into account the total number of buys...

Resistance

What Is Resistance? In regards to price action, resistance is a price level (or price range) that provides opposition against upward movement.  It can be created by prior local highs and lows, moving averages and other indicators, or even fundamental factors of an...