Most people have had a very cursory introduction to the financial markets. Their exposure to equities usually involves a 401k that they received from their job. The majority believes that the best way to invest in the markets is to put money into stocks or mutual funds and hold it there until they retire.
In Online Trading Academy courses, we are taught to buy in demand zones and sell in supply zones as the most effective way to trade. This is the simple part of trading, following rules.
All traders should be planning their trades before they enter them. The three critical pieces to that plan are: the entry level for the trade, the target for profit, and most importantly, the stop where you will exit if the trade doesn?t work out.
Anyone who has had a retail brokerage account is likely familiar with the term ?dollar cost averaging.?
This earnings season may be less impactful than past ones due to the upcoming Presidential Election. Regardless of the earnings impact on the markets, one of the core concepts we teach is the preservation of capital and the proper assessment of risk for any trade.
I recently received an email from a student that I would like to answer in this week?s article.
To be able to identify the problem, it is critical that you have consistent trading so that you can see what is or isn?t working. You can only become consistent by following a detailed plan.
I was working with one of my Forex students in London last week after class. The student had taken a large loss in his trading account and was now taking very small gains. He knew that he was making great entries but kept fearing losing any gains so he was cutting them short.
Sovereign debt, falling gold prices, Euro worries? there is a lot of talk in the news about risk. However, as a trader/investor, risk can mean something different.
I was watching a financial network on TV today and heard the anchor say, ?Good news for investors in Zynga, the shares are up over eight percent today!? A little later she muttered almost under her breath, ?But the shares are still down over 60% year to date.?
Moving averages are an average of closing prices over a period of time. Many traders try to use them as a dynamic trend line.
When traders use oscillators for trading decisions, they often use them incorrectly. Most will wait for a buy signal from an oversold oscillator crossing the line marking oversold or they will wait for a sell signal from an overbought indicator crossing below the line.