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Investing Guides
Plain-English explanations of the indicators, strategies and valuation tools we use. Educational only — not financial advice.
What Is RSI? The Relative Strength Index Explained
The Relative Strength Index (RSI) is a momentum indicator that compares the size of recent gains to recent losses and plots the result on a 0–100 scale. Readings above 70 are traditionally called overbought and readings below 30 oversold, but in strong trends RSI can stay at those levels for a long time.
6 min read
Cash-Secured Puts Explained: How They Work and the Risks
A cash-secured put (CSP) is when you sell a put option and set aside enough cash to buy 100 shares per contract at the strike price. You collect a premium up front. If the stock stays above the strike at expiration, you keep the premium; if it falls below, you may be assigned and buy the shares at the strike.
7 min read
How to Read Stock Charts: A Beginner's Guide
To read a stock chart, start with the timeframe, then identify the trend (higher highs and higher lows, or lower highs and lower lows), mark support and resistance levels, and check whether volume confirms the move. Candlesticks show each period's open, high, low and close.
6 min read
How to Tell If a Stock Is Undervalued
A stock may be undervalued when its price is low relative to what the business earns or is expected to earn. Investors typically compare valuation ratios like P/E, PEG, price-to-sales and free cash flow yield against the company's own history, its peers and its growth rate — no single ratio is enough on its own.
7 min read