The Increasing Allure of Private Markets
More and more companies and everyday investors want access to private companies. The private market is powered by private companies. These companies are not subject to a lot of government oversight, regulation, or reporting requirements. Consequently, not much is known about their financial health, profitability, or operations. Moreover, the private market is illiquid, not volatile, […]
Remembering the Legendary Volkswagen Squeeze Chart
Frankfurt-based Volkswagen shares on the Frankfurt Stock Exchange climbed almost 16% in just one day and became the largest carmaker ever. Following its October 28, 2008 high, the stock plunged 58% in four days, and in Sept, the stock fell 60% to its high, giving off most of the squeeze. Even after more than a […]
Short Selling as a Smart Profit Strategy
Experience investors prefer to use the trading technique of selling short. But hedge fund managers, are not the only ones that can benefit from this option for creating profits. At the same time, you should be aware, that if you decide to be a short seller, you can potentially lose a lot of money. If […]
Why is Ethereum Going Up?
Note: Nothing in this article should be considered investment advice. Readers adopt the perspectives in this article at their own risk. 2022 has been a rough and surprising year for crypto enthusiasts. After a bull run in 2021, crypto markets entered a bear market. The market was made even more brutal by the crypto winter […]
How To Use 3 Bar Play
Day trading has developed into a science that is evolving constantly, and the building blocks are technical indicators, that steer traders on the right course in the market to make a profit. Analysis tools are used on charts to estimate market movement, and the patterns are usually constructed from candlesticks, that indicate support and resistance […]
The Basics of Put Call Parity: Everything You Need To Know
Whether you’re a forex trader, a bond trader, or a stock trader, your goal ultimately is to make money with the least amount of risk. For those in the options markets, the most important and easiest principle they can understand to achieve this is the put-call parity. In today’s article, we’ll focus on the nuts […]
How to Use the Martingale Strategy: Doubling Down for Success
Many betting strategies promise the next bet on a slip will be a winning option. One of the no-lose systems is the Martingale strategy, known for its simplicity, and that is one of the attractions for recreational and professional bettors. In addition, it is effective in casino games and sports betting. This is not a […]
Engulfing Candle – A full explanation
Technical traders and analysts apply various methods to identify the best possible ways to trade successfully. One of the most important methods is to look for patterns as these patterns repeat and can be identified and understood easily. The patterns can be classified mainly as chart patterns and candle patterns. While chart patterns focus on […]
Automated Trading Systems – A Doorway to High-Performance Algorithmic Trading
Automated trading is a type of investment in financial markets that use a program that follows pre-programmed rules for entering and terminating trades. As a trader, you’ll mix in-depth technical research with establishing specifications for your positions, like orders to open, following stops, and assured stops. An automated trading system (ATS), a subcategory of algorithmic […]
A Comprehensive Guide to ECN Forex Brokers
Forex trading, also known as foreign exchange or FX trading, is a decentralized global market where all the world’s currencies are traded. It’s the largest and most liquid market in the world, with a daily trading volume exceeding 6 trillion dollars. Amidst this vast financial ecosystem, ECN Forex Brokers have emerged as a highly sought-after […]
Bull Pennant Price Chart Pattern
A Bull Pennant is a technical analysis chart pattern that appears in an uptrend and is considered to be a bullish continuation pattern. This pattern is characterized by a narrowing price range and converging trendlines, which resemble a symmetrical triangle or a “pennant” shape. The price action forms a flagpole, which is the sharp move […]
Close Options: Are You Buying or Selling To Close?
Contents Limiting Losses when Trading Options Contracts What is an Options Contract? Breakdown of an Options Contract Types of Options Position: Long and Short Key Takeaways Limiting Losses when Trading Options Contracts Options markets are financial markets where people buy, sell, and create options contracts. The market is high risk because options contracts are speculative […]
Heiken Ashi Trading Strategy – Should you use it?
Heikin-Ashi, also sometimes spelled Heiken-Ashi, means “average bar” in Japanese. The Heikin-Ashi technique can be used in conjunction with candlestick charts when trading securities to spot market trends and predict future prices. It’s useful for making candlestick charts more readable and trends easier to analyze. For example, traders can use Heikin-Ashi charts to know when […]
Averaging Down Strategy | What is the Stock Average Down?
Although using varying terms averaging down can make one skeptical first impression, a trading strategy that uses the averages down trading strategy can yield a profit both in the short and long term prospects. The investment strategy aims to combat irrationality and loss aversions we carry in our heads. Averaging down viable strategy consists of […]
What is Warren Buffet’s Strategy on Berkshire Hathaway Dividend
It’s easy to see why Berkshire Hathaway, owned by Warren Buffett, is one of the world’s largest public conglomerate holding firms. With the broader market decline, Berkshire shares have lost some of their previous gains. Investors who want to purchase a financial stock that is frequently compared to buying shares of an exchange-traded fund (ETF) […]
Elliott Wave Analysis: Zigzag and Flat patterns
Despite the innovation of automated trading bots and advanced trading indicators, professional traders still recognize Elliott Wave Theory as one of the most effective methods for technical analysis. Ralph Nelson, a famous accountant, and author, innovated the Elliott Wave Theory in 1930. While developing the theory, he noticed stock price follows a natural movement pattern. […]
The Impact of Political Instability on Forex
Forex trading, a pivotal aspect of the global financial landscape, is highly sensitive to global events. It operates on the delicate balance of international currencies, where even the slightest geopolitical shifts can trigger significant fluctuations. This dynamic market, underpinned by complex economic interactions, is particularly susceptible to changes in political climates. As traders and investors navigate through these waters, understanding […]
Behavioral Finance in Forex Trading
Behavioral finance, a significant branch of behavioral economics, is essential in comprehending the complexities of financial markets. This domain focuses on how psychological factors and personal biases shape trading decisions, often leading to irrational financial behavior. Recognizing these aspects is crucial, especially in volatile markets like Forex, where even seasoned investors are prone to cognitive errors. The impact of behavioral finance extends […]
Effective Use of Moving Averages in Forex
Moving averages are fundamental components in Forex trading, serving as critical tools for analyzing market trends and making informed trading decisions. By averaging currency price data over a specific time frame, these indicators smooth out price fluctuations, offering a clearer view of the market direction. There are primarily two types of moving averages used in Forex: the simple moving average […]
10 Tips on How to Avoid Overtrading in Forex
