Investment Risk
Liquidity measures the accessibility of your money, or how easily your investments can be converted into cash. If you need invested money during an emergency, lack of liquidity can be a concern.
Volatility measures how much and how quickly the value of a security or market sector changes. The more volatile a security, the more its value fluctuates, and the more risky it can be.
The various risks you take as an investor can be broadly categorized as either systematic or nonsystematic. Systematic risk, or market risk, is characteristic of the entire market or a particular market segment. Nonsystematic risk is based on the performance of an individual company or groups of companies.
Though investment markets are unpredictable, they tend to move in cycles of ups and downs. A bull market occurs when stock prices as a whole move upward for a prolonged period. Bear markets happen during periods of falling stock prices, and are generally said to occur when prices fall at least 20% from the most recent high.
Some investments react similarly to changing economic and market conditions. In investment terms, correlation describes the extent to which various types of investments respond in the same way.
| Relative Strength Index (RSI) |
| Diversification |
| Education Accounts |
| Retirement Accounts |
| Dollar Cost Averaging |
| Fort Lauderdale User Summit | 12/18/10 |
| Understanding Margin | 12/13/10 |
| Discover Scottrade | 12/13/10 |
With more than 400 branch offices nationwide, Scottrade offers live events in neighborhoods all over the country. Visit your local Scottrade office for a cozy small-group Branch Seminar, or get together with Scottrade customers from your area at our popular User Summits.
Browse All Live Events >Stream live, interactive presentations right to your computer! Check back every week for new Live Webinars on a variety of topics including:
- Market analysis
- Basic & advanced orders
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Education meets interaction in the Scottrade Community. Join Scottrade customers from all over the country as you exchange information, ideas and trading strategies in a comfortable online learning environment.
Interact with Scottrade customers and product specialists. Share your thoughts and learn from others. Grow as an investor. Join our community today!
Learn More About the Community >Brokerage Products and Services offered by Scottrade, Inc. - Member FINRA and SIPC
Online market and limit stock trades are just $7 for stocks priced $1 and above.
Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited, or the need to deposit additional collateral in a falling market. Margin Disclosure Statement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, and by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.
Market volatility, volume, and system availability may impact account access and trade execution.
Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.