A 12% dividend yield looks like free money. It's often a warning.
Yield = dividend / price, so when a stock's price collapses, the yield shoots UP.
A sky-high yield usually means the market expects a dividend cut.
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When a stock gaps up or down overnight, you'll hear traders say it'll "fill the gap."
Here's why: no shares traded in that price zone, so price frequently drifts back through it before continuing.
A gap is a magnet, until it isn't.
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An uptrend has a simple definition: higher highs and higher lows.
A downtrend is the opposite, lower highs and lower lows. One red day inside an uptrend isn't a reversal, it's noise.
The trend breaks when the pattern breaks.
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Two phrases that explain half of all market days: "risk on" and "risk-off"
Risk-on, money chases stocks, tech, crypto.
Risk-off, money hides in bonds, gold, and cash.
Figure out which mood the market's in and a lot of moves suddenly make sense.
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Two moving averages active traders watch: the 21 day and the 50 day
The 21 day reacts faster. When it crosses ABOVE the 50 day, short-term momentum is turning up.
When it drops below, momentum is fading.
A simple trend shift signal.
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Ever notice a stock stall right at $100, or $50, or $200?
Round numbers act like magnets. Traders cluster their orders there, so price often pauses or reverses at the level before it finally breaks through. Watch the round numbers.
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Not every bounce is the bottom.
In a downtrend, stocks often snap back hard for a day or two, enough to suck buyers in, then roll over to new lows. Traders call it a "dead cat bounce."
One green day doesn't end a downtrend.
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Your stock dropped and the company did nothing.
Check its competitors. When one name in a group reports bad news or gets downgraded, the whole group often moves with it.
Sometimes the catalyst isn't your stock. It's a rival.
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A cost most people never notice: the bid-ask spread.
It's the gap between what you pay to buy and what you get to sell, instantly.
On big liquid names it's a penny. On thin, low-volume stocks it can cost you 1-2% the moment you trade.
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In a normal market, your stocks move on their own stories.
In a panic, they don't.
Everything correlates to 1, good companies get sold next to bad ones as people dump whatever they can. It's why diversification feels useless in a crash.
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