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*T&C ApplyUnderstanding Open Interest: Its Mechanism and Significance
While trading in the futures and options market, many of you must have come across the fact that traders face losses as they dont analyze the Open Interest.
Trading Psychology—Mastering Emotions, Biases and Common Traps
Many experienced traders say that the stiffest challenge you’ll face in becoming a trader is conquering your own psyche!!
Bollinger Bands: Meaning, Strategy, and Uses
What are Bollinger Bands? The volatility of a financial asset, such as a stock, commodity, or currency, can be determined using the technical analysis tools known as Bollinger Bands. It was created in the 1980s by John Bollinger and had three lines. A simple moving average (SMA) of the price over a predetermined amount of time is represented by the middle line (usually 20 days). The upper band is made up of the same SMA plus a particular number of standard deviations (often 2) of the price during the same time period. The lower band is the same SMA minus the same amount of standard deviation of the cost during the same time period. Typically, the upper and lower bands are designed to be two standard deviations from the moving average, although this can be changed depending on the asset’s volatility.
Here, you read about the Bollinger bands. Later in this article, you will read about the Bollinger Bands trading strategy, its formula, and its working.
Difference Between Margin Trading and Short Selling
Many people are now trying their hand at margin trading and short selling. Trading on margin is borrowing money to purchase securities. On the other hand, short selling involves selling assets and purchasing them again at a lower price. Investors’ potential to boost their purchasing power in the market is made possible through leverage. They increase their purchasing power by agreeing to a margin loan with their broker. The capacity to invest in more stock than they could normally do with their own money.
Short Term Trading Strategies for Beginners
Short-term trading strategy can be defined as taking a position that can last from a few seconds to several days. It is simply the opposite of traditional long term strategy, in which you’d hold a position for weeks, months or even years.
Understanding the Radar Signal Trading System
Over the past years,different systems and strategies over the past years have developed to take trading to new heights. The stock market with the investment strategy and goals. There is one system which you must know that is the radar signal trading system. It is a method to give a buy or sell signal, which is generated via analysis.
Understanding Positional Trading Strategy
All forms of trading provide the potential for investors to earn. This tutorial will concentrate on position trading, which entails maintaining a position for a long time to increase the likelihood of generating a profit. This article explores what is positional trading and how it functions, provides advice for creating powerful position trader techniques and lists the benefits and drawbacks for a novice or seasoned investor.
Understanding the Distinction: Order Book VS Trade Book
When you enter stock trading, you come across various subsets and styles of trading; equity trading, F&O trading, intraday trading, delivery trading, etc. Regardless of segment or style, you will see your trades appear in at least one of the two, the order book or trade book. To know what an order book and trade book are you can read the following information.
Online Trading Portfolio: A Beginner’s Guide
Today, Indians, both young and old, want to learn about stock market investing. That is because, with each passing day, more people are learning about the benefits of investing in the stock market; they are coming to understand that the stock market is one of the best ways to generate long-term wealth. However, that said, successful wealth creation in the stock market is only possible if you have a well-defined plan to create an online trading portfolio that suits your investor profile.
Understanding Moving Averages: Formulae, Uses, Examples
An effective technical analysis tool for identifying trends and probable entry and exit points for buying or selling a specific company is the moving average. The average stock price for a predetermined amount of time, such as 10 days, 50 days, or 200 days, is used to compute the moving average. The line that results, when displayed on a graph, depicts the trend of the stock price during that time. Moving averages are helpful for traders because they may show them trends and possible entry and exit points. For instance, a company is deemed to be in an uptrend if it is trading above its 50-day SMA or 200-day SMA, and traders may try to purchase the stock on any declines. On the other hand, a stock is said to be in a downtrend if it is trading below its 50-day SMA or 200-day SMA. Traders may then try to sell the stock on any gains.
MACD Indicator Strategy and How to Use It
You may have heard about moving averages. However, have you encountered the term “moving average convergence divergence (MACD)”. In this article, we shall discuss what the MACD indicator is. The MACD indicator is very useful to trace the momentum, direction of a stock’s price in a trend. The MACD crossing is a crucial signal. Histograms that compare the MACD line and the signal line are used to study the features of convergence and divergence.
Understanding the Meaning of Limit Orders in Trading
A trader must get the best price while placing an order on the stock market. A seller wants to sell a stock for as much money as possible, and a buyer always wants to purchase a stock for as little money as feasible. So, there are many ways and approaches for handling stock market trades that can help you to maximize profit and reduce loss. A limit order is the most effective instrument for building successful investing strategies. Limit orders often protect your portfolio from losses caused by irrational price changes. The article will continue to discuss what a limit order is in the stock market.