Insurance companies collect premium with the expectation of future payouts. By knowing the probability of a claim, they can calculate their expected return for assuming the risk of the policyholder. The insurer is confident that overtime they will profit despite their obligation to pay claims. Casinos successfully operate on a similar premise. They bring in […]
Most people would liken stock trading with gambling. However, in truth, the two couldn’t be more different. In fact, stock trading isn’t simply buying and shares as well. Developing a good trading strategy is the key to making it in the stock market. A stock market simulator, is an online game application that duplicates aspects […]
Most traders have heard of seasonal patterns, something which is mostly associated with commodities. The foreign exchange market also has calendar patterns which influence trading, and just like in commodities, traders can take advantage of them to improve their odds for success and profits. Monthly PatternsNearly all currency pairs have one or more months during […]
Initially, only banks and other financial companies had access to the information involved in this type of trading. Little by little, and mostly thanks to services on the Internet, traders who work on an individual basis were also allowed to access such things as the exchanges and market information. This allows them to make extremely […]
This indicator aims to signal the reversing of a trend, thus providing traders with a good tool for choosing trade exit points. The unique feature about the parabolic indicator is that it takes into account both the factors of time and changing prices. Most traders unfortunately focus mainly on prices and ignore the effects of […]
In 1987, applying his own system, Williams won the World Cup Championship of Futures Trading. He traded 10,000 dollars in real money, and jacks it up to more than 1,147,000 dollars in a period of 12 months of trading. Until now, this feat is still unmatched. Likewise, he also authored a book, How To Prosper […]
Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price. The two Stochastics lines: %K Is the main line and is usually displayed as a […]
Normally, we use the 20-Day simple moving average and its standard deviations to create Bollinger Bands. Strategies some investors use include shorter- or longer-term Bollinger Bands depending on their needs. Shorter-term Bollinger Bands strategies (less than 20-Days) are more sensitive to price fluctuations, while longer-term Bollinger Bands (more than 20-Days) are more conservative. So how […]
Some traders use the RSI for objective buy and sell signals. They usually interpret a buy signal as occuring when the RSI crosses back above 30 after spending time in the oversold area. A sell signal is declared when the RSI moves back below 70 after spending a period of time in the overbought region. […]
The MACD charts are oscillating indicators, meaning that they move above and below a centerline or zero point. As with other oscillating and momentum indicators, a very high value indicates that the stock is overbought and will likely drop soon. Conversely, a consistently low value indicates that the stock is oversold and is likely to […]
The Parabolic/SAR indicator was developed by J. Welles Wilder in 1976. It is often used to select trailing price stops and is commonly referred to as SAR (Stop And Reversal). This indicator aims to signal the reversing of a trend, thus providing traders with a good tool for choosing trade exit points. The unique feature […]
Larry Williams is an expert in stock market trading and is a very highly skilled systems analyst. Although there was already a reliable overbought/oversold indicator which was the well known RSI or Relative Strength Index, he sought to formulate and devise his own indicator which is now known as the Williams Per Cent Range Technical […]
The stochastic oscillator is a momentum indicator to compare the closing price of a commodity to its price range over a given time span. The idea behind this indicator is the prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when […]
The Bollinger Band theory is designed to depict the volatility of a stock. It is quite simple, being composed of a simple moving average, and its upper and lower “bands” that are 2 standard deviations away. Standard deviations are a statistical tool used to contain the majority of movement or “deviation” around an average value. […]
The RSI (Relative Strength Index) is a popular technical analysis oscillator. There are numerous uses of the RSI, including objective buy and sell signals and bullish and bearish divergences. The RSI, as its name implies measures the relative strength of price currently compared to the past: the formula usually uses a 14-period input. As an […]
The Moving Average Convergence Divergence charts, or MACD charts for short, are a technical indicator that is derived from the more simple moving average. The MACD charts are oscillating indicators, meaning that they move above and below a centerline or zero point. As with other oscillating and momentum indicators, a very high value indicates that […]
The shorter the moving average, the more closely it will follow the price trend. When a stock begins an uptrend, short-term moving averages will begin rising far earlier than longer-term moving averages. For example, if a stock declines by equal amounts each day for 50 days, and then begins to rise by the same amount […]
The triple moving average crossover system is used to generate buy and sell signals. Its buy signals come early in the development of a trend, and its sell signals are generated early when a trend ends. The third moving average can be used in combination with the other two moving averages to confirm or deny […]
1.What size wins compared to your losses are you after? 2.Always use three different time frames to trade safely 3.Share CFDs versus Forex or index CFDs. The Various time frames to consider What size wins compared to your losses are you after? One of the most critical and overlooked component to day trading success is […]
1.What size wins compared to your losses are you after? 2.Always use three different time frames to trade safely 3.Share CFDs versus Forex or index CFDs. The Various time frames to consider What size wins compared to your losses are you after? One of the most critical and overlooked component to day trading success is […]
1.What size wins compared to your losses are you after? 2.Always use three different time frames to trade safely 3.Share CFDs versus Forex or index CFDs. The Various time frames to consider What size wins compared to your losses are you after? One of the most critical and overlooked component to day trading success is […]
Here I’ll show you 3 key tips to keep you safe and give you some key areas to focus on when you do your next CFD trade. 1. CFD trading leverage. CFD trading is just a leveraged stock market opportunity that gives you access to greater funds than what you normally could access if you […]
Here I’ll show you 3 key tips to keep you safe and give you some key areas to focus on when you do your next CFD trade. 1. CFD trading leverage. CFD trading is just a leveraged stock market opportunity that gives you access to greater funds than what you normally could access if you […]
Here I’ll show you 3 key tips to keep you safe and give you some key areas to focus on when you do your next CFD trade. 1. CFD trading leverage. CFD trading is just a leveraged stock market opportunity that gives you access to greater funds than what you normally could access if you […]
Comparing Futures, Options & Contracts for Difference Most financial products that turnover billions every day on the worlds stock markets have been around for decades, if not hundreds of years. For example, futures markets have a history dating right back to 1710 when the Japanese traded rice on the worlds first official futures exchange. Since […]
Comparing Futures, Options & Contracts for Difference Most financial products that turnover billions every day on the worlds stock markets have been around for decades, if not hundreds of years. For example, futures markets have a history dating right back to 1710 when the Japanese traded rice on the worlds first official futures exchange. Since […]
Comparing Futures, Options & Contracts for Difference Most financial products that turnover billions every day on the worlds stock markets have been around for decades, if not hundreds of years. For example, futures markets have a history dating right back to 1710 when the Japanese traded rice on the worlds first official futures exchange. Since […]
Even with a trading strategy that yields a high success rate it is still possbile to lose money overall if the losing trades are large and outweigh the positive trades profits. The following pointers will help you maintain good trading discipline. Only Risk Money You Can AffordIt is vital to know how much money you […]
With spread betting, you do not need to do this. Instead you typically put up only a small portion of the underlying value. This is known as your deposit or inital margin. Taking up a position of equivilant size (a bet of £50 per penny movement in a share equates to purchasing 5000 shares in […]
Iraq’s oil ministry spokesman has said that Iraq could miss a one-year deadline to strike a deal with Royal Dutch Shell for a $4bn gas production deal in southern Iraq, Gulf Daily News has reported. Negotiations between Iraq and the Anglo-Dutch firm ‘can be extended,’ nearly a year after Shell formally signed a gas joint […]
