Stock Trading Study Guide 2026

Bollinger Bands plot standard deviation bands above and below a moving average, expanding in high volatility and contracting in low volatility periods.

This is fundamental to Stock Trading practice. They ensure professionals stay current with evolving industry practices and knowledge represents the professional standard for professional standards in the Stock Trading certification framework.

Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%) are horizontal lines indicating potential support or resistance based on prior price moves.

Portfolio turnover rate indicates how frequently a manager buys and sells holdings; high turnover increases transaction costs and tax liabilities.

Benjamin Graham, widely regarded as the 'father of value investing,' advocated for the NCAV (Net Current Asset Value) strategy. This approach involves identifying companies whose market capitalization is less than their net current assets, essentially buying a company for less than its liquidation value. It's a highly conservative value investing technique focused on deep value, aiming to purchase assets at a significant discount.

The strike price (also called exercise price) is the fixed price specified in the option contract at which the holder can buy or sell the underlying asset.