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How to Choose the Right Broker for You

How to Choose the Right Broker for You

Posted by on January 2, 2012 · 0 Comment

Deciding to start investing or trading stocks can be intimidating for many. Even understanding how to read the stock market pages and graphs can seem like trying to read hieroglyphics. Working with a broker can help you better make sense of your options and learn what you need to know to make smart investing decisions. Choosing the right broker to work with is just as important as determining what [...]
Filed in: Beginners Guide
Are zig-zag indicators any good?

Are zig-zag indicators any good?

Posted by on November 28, 2011 · 0 Comment

Whenever the question of indicator-accuracy raises its inquiring, bespectacled head amongst the global fraternity of bruised, battered and sceptical forex traders there is rarely a definitive consensus. The ‘Zig Zag’ indicator is certainly no exception to this with its Marmite ability to divide opinion and invoke contentious exchanges as to its usefulness as a forex trading indicator. The fact [...]
Filed in: Technical Analysis
Trading with the Parabolic SAR

Trading with the Parabolic SAR

Posted by on November 25, 2011 · 0 Comment

Most commonly known as the “stop and reversal” indicator the Parabolic SAR is one of the most straightforward indicators for traders to interpret. Welles Wilder, also of average directional indicator and relative strength indicator fame, developed this indicator with the purpose of attempting to pinpoint the highest probability of price reversing.  He suggested that, used in conjunction with [...]
Filed in: Technical Analysis
Scalping with indicators

Scalping with indicators

Posted by on November 18, 2011 · 1 Comment

Scalping requires an ability to move in and out of the forex market quickly, taking short, small gains whilst limiting risk and exposure. Scalpers vary in style and can trade multiple times throughout the day or simply once dependent on the strategy and leverage that they apply to their trades. The fact that scalpers often take only a handful of pips means that they often trade larger value transactions [...]
Filed in: Beginners Guide
Manage Risk, Realize Profits – Easier Said Than Done?

Manage Risk, Realize Profits – Easier Said Than Done?

Posted by on November 8, 2011 · 0 Comment

Risk is an inevitability in investing.  You have to risk money to make money, and the more risk you assume, the greater the potential rewards.  With interest rates the lowest most of us have ever seen, traditional bank accounts and savings accounts fail to beat the rate of inflation, let alone provide a path to true and lasting wealth. The key is to take calculated risks with your money, based on [...]
Filed in: Beginners Guide
The Power of Currency Correlations

The Power of Currency Correlations

Posted by on November 4, 2011 · 0 Comment

Different currency pairs can often be seen to move together, sharing a similar chart pattern and increasing and decreasing in value at the same time. These can be seen to be correlated, sharing direction and mimicking the movements of the other. The level of this positive correlation can be measured and ranges from a strongly correlated pair to one which can be considered weak or not correlated. Conversely, [...]
Filed in: Beginners Guide
Applying risk management to improve success

Applying risk management to improve success

Posted by on November 3, 2011 · 0 Comment

Risk management is an absolutely essential requirement to becoming successful in forex trading. It is quite possibly the single most important discipline for a trader to develop and can make even the most average trading strategy potentially very profitable. Risk management is closely linked to creation of wealth, considering the fact that minimising losses allows profits to be less frequent in order [...]
Filed in: Beginners Guide
Technical analysts gain from market volatility

Technical analysts gain from market volatility

Posted by on November 2, 2011 · 0 Comment

Technical analysts have seen several clear-cut opportunities to enter the market over the past two trading days as several currency pairs and commodities approach significant resistance levels. Classic reversal patterns has successfully played out in both gold and the S&P Index. The reliability of these candles patterns at important resistance levels reinforces that often the most straightforward [...]
Filed in: Technical Analysis
Realizing Profits With Momentum Investing

Realizing Profits With Momentum Investing

Posted by on October 31, 2011 · 0 Comment

Every investor no matter the level of individual skill is familiar with the adage “buy low and sell high,” as the golden rule of successful investing.  The concept of purchasing securities at a low price and profiting from the rise in share price is what many consider to be the true way to make money in the stock market. This strategy seems so simple until you consider the pit falls you may encounter [...]
Filed in: Beginners Guide
Trading with the Stochastic oscillator

Trading with the Stochastic oscillator

Posted by on October 29, 2011 · 0 Comment

The stochastic oscillator belongs to the family of momentum indicators which include the RSI and the MACD. Like the RSI, the stochastic oscillator was developed to preempt the strength of momentum in a stock, currency or commodity. It does this by taking the closing prices and applying this to the highs and lows of a specific trading period. The idea is that closing prices should represent the direction [...]
Filed in: Technical Analysis
MACD

MACD

Posted by on October 22, 2011 · 0 Comment

The Moving Average Convergence-Divergence indicator was developed as an attempt to try to create a reliable leading indicator out of two lagging indicators. This design in applying two trend-following moving average indicators to create the momentum oscillator that we know today as the MACD was the ingenuity of Gerald Appel during the 1970’s. The importance of this indicator has grown with increasingly [...]
Filed in: Technical Analysis
Relative Strength Index

Relative Strength Index

Posted by on October 21, 2011 · 0 Comment

RSI is a momentum indicator and belongs to the family of oscillators which can help traders to determine whether a stock, currency or commodity is likely to continue or reverse from its current trend. Developed by Welles Wilder as a tool to help predict price reversals, the RSI forms a very important trading tool for technical trend analysis and can be incredibly useful to help determine a good time [...]
Filed in: Technical Analysis
Is A Stock A Real Value Or A Value Trap? How To Tell The Difference

Is A Stock A Real Value Or A Value Trap? How To Tell The Difference

Posted by on October 21, 2011 · 0 Comment

For value investors, the market’s decline that started in April would seem to provide a prime opportunity to pick up shares of companies at a dramatic discount.  While that is certainly the case with a few securities, unlike what was seen during the financial crisis, where valuations on stocks fell to a twenty-year low, it can be surprisingly difficult to find real value in today’s market. Masking [...]
Filed in: Beginners Guide
Support & Resistance

Support & Resistance

Posted by on October 18, 2011 · 0 Comment

Understanding support and resistance is fundamental to successful trading. A grasp on these two very simple concepts can allow traders to enter and exit trades confidently, seeking price areas where buying and selling will occur in enough quantity to resist price movements. The basis of this being the ‘memory’ that price has and which can be seen by looking to the left, rather than the right, of [...]
Filed in: Technical Analysis
Average Directional Index

Average Directional Index

Posted by on October 12, 2011 · 0 Comment

Average directional index is a useful indicator for traders to use in order to gain an objective understanding of the trend. It is a group of three directional indicators which, when applied together, can form a trading system which both defines the direction and the strength of a trend. Most indicators such as moving averages will offer an analysis of the trend direction whilst oscillators and momentum [...]
Filed in: Technical Analysis
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