trading

Foreign Exchange Markets (FX) The Foreign Exchange Market (commonly referred to as the Forex Market or FX) is the marketplace for global currency deals and is the largest and most liquid market globally. The Forex market provides a vehicle where one country’s currency can be exchanged for that of another country through a floating exchange […]

What Exactly Is a Trend? A trend is the price movement of a market or an asset in its overall direction. Trendlines or price action in technical analysis emphasise when the price is making higher swing highs and lower swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend.

Bollinger Bands  Bollinger Bands, developed by John Bollinger of Bollinger Capital Management, are trading bands that vary in distance from the moving average as a function of a market’s volatility. Bollinger took mathematical formulas commonly used by statisticians to determine the standard deviation of a data series and adapted them to calculate the width of

The Different Types of Charts  Line Charts  These charts are the most basic type of chart, and in most cases, they are generally used for spread trading and longer-term analysis. They are also helpful when only the closing date is available or in markets where high and low price information is not measured accurately. Most

Trading Individual Stocks   Trading individual stocks means that you are going to not only have to understand the stocks that are traded but also have a good knowledge of other influential stock markets. We will look at what things are essential to analyse when trading individual listed stocks.  Reading financial press  Generally, you will want

Basic Technical Analysis  Support & Resistance  Support and resistance levels are, without a doubt, two of the most widely debated aspects of technical analysis. It is helpful to think of prices being established within markets due to a head-to-head battle between buyers trying to force prices higher (commonly referred to as ‘bulls’ in financial markets)

Fibonacci Numbers Fibonacci Numbers are a very popular tool among technical traders and are based on a sequence of integers identified by mathematician Leonardo Fibonacci in the 13th century. However, Fibonacci’s sequence is not as important as the mathematical relationships expressed as ratios between the numbers in the series. Ratios Fibonacci Numbers are used in

What Is a Stop-Loss Order and How Does It Work? What is a Stop-loss ? A stop-loss order is a purchase or sale order made with a broker when the price of a security reaches a certain level. Stop-loss orders are different from stop-limit orders in that they are designed to limit an investor’s loss

TRADE EXECUTION Quick Decisions Trade Execution is the completion of a buy or sell order for a security. The execution of an order occurs when it gets filled, not when the investor places it. Traders are frequently required to think quickly and make quick decisions, jumping in and out of stocks on a whim. They’ll need

Short-selling Short-selling is a method of profiting from stocks that are dropping in value (also known as “going short” or “shorting”). In theory, short selling appears to be a straightforward concept: an investor borrows a stock, sells it, and then buys it back to return it to the lender. However, it is a sophisticated approach