Tag: trading


Money Management: What Is It? Part 1

Beginner traders usually consider money management to be some dull paperwork; outwitting and conquering the market for a short-term profit seems much more exciting. Short-term effects give you the feeling of a victory but are very few. Such an approach tends to end up in a failure as it is, in essence, playing with the market but not a serious systematic approach. And after the trader realizes that trading requires a strategy and a plan, they start to consider studying some money management models.

Trading News: How To Make Money On Non-Farm Payrolls?

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%.

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?

What Should a Trader Know About The Williams Percent Range?

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.