Bull and Bear Market

Bull vs. Bear The terms “bull market” and “bear market” describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. The names perhaps correspond to the fact that a bull attacks by lifting its horns upward, while a bear strikes with […]

Force Index

The force index, a term and formula developed by psychologist and trader Alexander Elder, is a technical indicator that measures the amount of power used to move the price of an asset. The Force Index allows to identify the reinforcement of different time scale trends:  The indicator should be made more sensitive by decreasing its […]

Margin Call

A margin call occurs when the value of an investor’s margin account (that is, one that contains securities bought with borrowed money) falls below the broker’s required amount. A margin call is the broker’s demand that an investor deposit additional money or securities so that the account is brought up to the minimum value, known […]

Intrinsic Value

Intrinsic value is also used in options pricing to determine how in-the-money an option is or how much profit currently exists. For review, an options contract grants the buyer the right, but not the commitment, to buy or sell the underlying security at a preset price called the strike price. Options have expiration dates at […]

Ichimoku Cloud Trading Strategy

Ichimoku trading strategy is one of the most reliable strategies. One glance equilibrium chart or with the original name in Japanese “Ichimoku Kinko Hyo” is my all-time favorite trading strategy. There is a Japanese saying: “Consult the market about the market.” A lot of time we trade not what we see but what we think […]

Market Maker

An independent trader or trading firm that is prepared to buy and sell shares or contracts in a designated market. Market makers must make a two-sided market (bid and ask) in order to facilitate trading. A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell […]

Trading Plan

Learn how to create a successful trading plan and put it into action. With a smart plan, you’ll have guidance on which market to trade, when to take profits, when to cut your losses, and where other opportunities could exist. A trading plan is a comprehensive decision-making tool for your trading activity. It helps you […]

Trend Indicators

The core concept of technical analysis is to trade with the trend. If your trend indicators tell you the security is trending upward, buy it. When it stops trending upward, sell it. If you don’t know what’s going on, don’t trade. Don’t fall into the value trap — that a high-quality security will come back […]

Technical Analysis

Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories. Many investors analyze stocks based on […]

Options

Options trading may seem overwhelming, but they’re easy to understand if you know a few key points. Investor portfolios are usually constructed with several asset classes. These may be stocks, bonds, ETFs, and even mutual funds. Options are another asset class, and when used correctly, they offer many advantages that trading stocks and ETFs alone […]