Copy trading is one of the ways of investing that implies copying on your account the trades of experienced traders. The mechanism is quite simple and easy to master.
Author: Victor Gryazin
Stocks are one of the most popular investment instruments. Stocks are normally bought on the stock market via a broker. A broker is a company, a professional market player, that is licensed to make operations on the stock market for its clients.
Everyone serious about trading on financial markets will inevitably face the necessity to choose a broker. The Internet is full of various offers and ads. At first glance, it seems virtually impossible to tell a lousy broker with a good advertising campaign from a trustworthy partner providing high-quality service. In this review, we will discuss the main criteria for distinguishing between them.
Indicators have long been introduced to the trading systems of many traders. As a minimum, they are of good help in chart analysis, as a maximum, they are the base of the whole trading system. Algorithmic trading, which means automatizing the work and creating trading robots, is also mostly based on the signals of various indicators.
Momentum is one of the simplest and most popular indicators among traders. As its creator, certain sources name a French mathematician Paul Émile Appell. This indicator helps define the trend direction and the speed of the price change.
How do you use the GDP data in trading? In the classical variant, the GDP data significantly higher than forecast promises growth of the national currency, so buys are in priority. Conversely, the GDP data weaker than expected entails a decline in the national currency rate, so sells are recommended. Also, you should evaluate the technical picture and prepare a trading plan.
The size of the main interest rate is the base for the interest rates of other instruments, such as state and corporate bonds, credit rates for legal entities and physical persons. Central banks resort to changing interest rates rather seldom; such changes are considered major market events, and market players keep a close eye on them.
Non-Farm Payrolls (NFP) are essential data on employment in the USA, which shows changes in the number of employees out of the agricultural sector of the country during the last month. The indicator is based on a poll answered by some 400,000 companies and 50,000 households. Empirically, it has been figured out that if the NFP increases stably by +200,000 every month, the GDP surplus equals roughly 3%.
The Williams Percent Range (Williams %R) is an oscillator of the price movement speed showing the position of the current price in the range between the low and high of the previous periods. The indicator is drawn in a separate window under the price chart and consists of the main line %R and two areas: the overbought and oversold ones.
Exchange-Traded Funds (ETF) are investment trust funds which stocks are traded on the exchange. An index ETF replicates the structure of its basic index. ETF stocks are available for the very same operations as normal stocks on any exchange.