Knowing Major Stock Indexes (Part II)

The Nasdaq-100 is a modified capitalization weighted index. Modified cap weighting involves adjustments to the capitalizations of the various components of the Nasdaq-100 index. The NDX contract at the CBOE is based on Nasdaq-100 as is the MNX.

What Are Stock Indexes? (Part I)

There are 100s of ETFs and HOLDRS covering key industry benchmarks such as the various Standard & Poor Indexes, Russell Indexes or the Dow Jones Averages. There are ETFs that cover the other less well known narrow based sectors.

Placing Stop Loss Order

You should understand how to select stop orders to limit your potential losses and how to let profits ride. Managing risk and using systems that helps evaluate price changes is critical for a trader if he/she is to maintain a degree of profitability over time.