ProShares Ultra Russell2000 (:UWM) is moving lower ahead of the market open as the stock is gapping down -2.51%. A recent bid puts the equity at $54.47.
Investors are always trying to get an advantage in the equity market. Everyone wants to find that next great stock pick that provides a solid boost to the portfolio. Investors often identify risk preference when trying to sort out asset allocation. In general, a higher amount of risk may offer a greater potential for growth. Many investors may struggle with the concept of leaving emotion out of picking stocks. Equity research may involve a high degree of patience, determination, and lots of homework. Learning everything possible about the markets can help the individual investor better navigate the waters. As the old saying goes, knowledge is power. Being able to filter through the data to determine what is relevant information may assist the investor with making those tough investment decisions.
Investors may be looking into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be hard pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be exactly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may help fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also help keep the important investing factors in focus. Covering all the bases may help increase the odds of success when trading equities.
A gap is a space between prices that occurs when the price of a stock makes a move down or up when there is no trading happening in between. Gaps are created by numerous factors. Poor earnings, bad news, organizational changes and/or market influences can cause a stock’s price to decrease suddenly.
ProShares Ultra Russell2000 (:UWM)’s performance this year to date is -27.05%. The stock has performed 3.39% over the last seven days, -4.36% over the last thirty, and 17.58% over the last three months. Over the last six months, ProShares Ultra Russell2000’s stock has been 115.99% and -19.21% for the year.
SIMPLE MOVING AVERAGE
The simple moving average is the most common method used to calculate the moving average of prices. It takes the sum of all of the past closing prices over a specific time period and divides the result by the number of prices used in the calculation. ProShares Ultra Russell2000’s 20-Day Simple Moving Average is -2.82%. Extending back, their 50-Day Simple Moving Average is 0.68%, looking even further back, their 200-Day Simple Moving Average stands at -1.07%.
Investors often have to decide how aggressive they are going to be in the stock market. Having the mindset of getting rich quick may result in the rapid loss of capital. Of course, there are those who have possibly had luck on their side, but jumping in head first without a plan can be a recipe for disaster. It may be tempting to take a leap with a risky stock. However, high returns in the equity market may come with extensive risk and volatility. Managing that risk in turbulent markets may help keep the average investor above water when things swing the wrong way. Investors may want to assess if they are trading too much or trading the wrong types of stocks. Doing all the research may involve keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when analyzing the markets.