Category: Education


What Is a Trading Index And How to Trade It?

A trading index is an index of the average price of a certain set of instruments, such as stocks of different companies, united in one group. Indices are calculated by various rating agencies and organizations by various formulae, such as a simple average price, weighted average price, etc. However, there is no need to learn the formulae as you will not have to calculate the indices yourself.

Losses: 4 stages of accepting them, 3 ways to reduce them, and 3 rules of changing them to a profit

Everyone who comes to the market craving for money thinks that they will be among that 10 % of successful traders that can be called "cream of the cream". Such a way of thinking is logical and natural, because — who will ever aim at bad results? Well, a question emerges then: where do the remaining 90% appear from? What happens to them next? Why do these statistics of 90% losing traders against 10% gaining ones exist at all?

How to Set Goals in Trading

Psychologists recommend formulating your goals as precisely and carefully as possible, projecting them on your subconscious and controlling your progress towards them. Systematic investors and traders have managed to secure themselves at the top of the market not just because they own some super system or insider information; the reason is, their goals are based on their long-time experience, their knowledge, technology, psychological stability and skillfull risk and money management. Trading without a clear idea of what, when and how we are planning to reach washes the main part of "plankton" off the market very quickly. The more detailed and realistic your goals are, the lower the risk of losing your deposit.

What Is a Gap? Main Types. Trading Gaps.

The Gap is shown in the chart above as yellow rectangles. This is a practical gap in the flow of quotations reflecting a serious difference between the opening and closing prices in trading sessions. A quick look at the chart captures a large number of such phenomena. This means that if we classify them we may find a lot of opportunities to use them in trading. But first, let us talk about the reasons which a Gap emerges for.

Basics of Technical Analysis

To succeed in market trading you should learn to analyze and forecast price movements. The market price is influenced by a whole range of various factors, all of which we literally cannot know. A question emerges: in this case, how does forecasting become possible? This question is answered by one of the basic and most necessary types of market analysis — technical analysis.