How to Use Gann Square of 52

W.D. Gann was an innovative investor who predicted market changes by using long-term time cycles. He accurately predicted the market rally of the 1920s and the bust of the 1930’s. Read More

How to Calculate Bressert Double Stochastic

The Bressert Double Stochastic Oscillator is an advanced indicator that helps short-term technical analysis-driven traders to make investment decisions. A stochastic process is essentially random where one point does not Read More

How to Set Up a Blind Trust

A blind trust is one in which the beneficiary has no idea how the trustees are managing the trust assets. Politicians sometimes place investments in a blind trust, with themselves Read More

What Is Cash Equities Trading?

The term cash equities refers to a type of trading executed primarily by large, institutional investors. These companies trade equities for themselves and on behalf of customers. An individual working Read More

List of Factors That Motivate Employees

Employee motivation is the process or act of prompting or encouraging an employee to work towards organizational goals. Robbins et al. in the book Management 4e define employee motivation as Read More

How to Use the Donchian Channel

When trading securities, some investors use an indicator called the Donchian channel to measure price movements and volatility of a particular stock, currency, commodities future or other instrument. Traders also Read More

Equity Swap Transaction Accounting Rules

Equity swaps are a form of derivative. Equity swaps are treated as assets and liabilities under accounting rules. The value is based on the fair-market value of the derivative. Losses Read More

How to Correctly Count Elliott Waves

Strategic investment should be guided by both qualitative and quantitative analysis of an investment product. There exist numerous ways for investors to attempt to mathematically predict the performance of a Read More

How to Install a NinjaTrader Indicator

NinjaTrader is a charting application traders and investors use to analyze instruments such as stocks, futures and commodities. The NinjaTrader software includes many free indicators to use for trading. Many Read More

How to Use Fibonacci on Charts

The Fibonacci sequence has become synonymous with technical analysis on stock charts. In 1202, Leonardo Pisano published his book Liber Abaci, which explained how to use the Fibonacci sequence to Read More

Difference Between Foreign Currency Options & Futures

Currency trading involves taking a position on the relative value change between two different currencies. Buying a large amount of foreign currency to profit from a small change in relative Read More

Bull Put Spread Vs. Bull Call Spread

A bull put spread and a bull call spread are equivalent strategies in options trading. They are equivalent because the strategies will produce similar profits from the same price move Read More

How to Chart With Fibonacci

Fibonacci is a charting tool that relies on prices making predictable, repeating patterns. It is based on the Fibonacci ratio, which is approximately 1 to 1.618 (or 0.618 to 1). Read More

Objectives of a Sole Trader

A trader seeks profits from daily market movements in prices. As a sole trader, you trade strictly on your own behalf — you don’t trade or invest for others. While Read More

Five-Minute Forex Strategies

Foreign exchange, or forex, is the global marketplace where various countries’ currencies are exchanged for one another. Currency traded on forex is priced in pairs as they relate to one Read More

The 4 Hour FOREX Strategy

The foreign exchange, or Forex, is a worldwide market that facilitates the trading of one country’s currency for another. Currencies in the Forex market are priced in pairs, as they Read More

FOREX Grid Trading Strategy

One of the most difficult aspects of any trading system is predicting future price direction. The Forex grid trading strategy removes the need to predict the future by using a Read More

What Are the Top Ten Precious Metals?

The underlying value of a precious metal is determined by its rarity and the unique demand for utilizing the metal. The price of precious metals fluctuates depending on public sentiment; Read More

What Are Day Trader Tricks?

Day traders use a variety of tricks to profit in the volatile investment market. Instead of using long-term fundamental forces such as gross domestic product (GDP) or corporate earnings, a Read More

The Best Indicator & Strategies for FOREX

The foreign exchange market (FOREX) is the financial market in which foreign currencies are traded. For those interested in trading in this market, FOREX indicators are useful tools that show Read More

How to Avoid Day Trading Penalties

Day traders are stock traders who buy and sell their stocks within the same business day. This can be an effective strategy, especially if you are dealing with huge sums Read More

How Much Does the Average Day Trader Make?

Day trading is buying and selling stock in the same day using large amounts of capital. The goal is to make a lot of profit from only a little movement Read More

Understanding the Forex Lot Size

Trading currencies is what the forex market is all about, and the size of the lot that you trade will have a big impact on how much money you can Read More

If you trade options, price is paramount. An overpriced option, like an overpriced stock, can adjust downward without warning, reducing or eliminating possibilities for resale. Even if it doesn’t adjust, Read More

Options traders consider a number of variables when deciding when to buy and sell contracts. Because options contracts guarantee the right to trade an asset at a specific price for Read More

How Does the CBOE Volatility Index Work?

In 1993, the Chicago Board Options Exchange created the Volatility Index, or VIX, as a way to quantify a nebulous concept in options trading: expected future volatility, or the amount Read More

Implied Vs. Realized Volatility

Volatility — both implied and realized — is a valuable tool for the options trader. Comparing an option’s historic, or realized, volatility to its anticipated future, or implied, volatility can Read More

What Are Tick Charts?

Tick charts are the smallest unit of measurement for an active trading chart. They produce a graph of every single movement or tick in price. Most charts are framed in Read More

How to Cover Short Sales With Stop-Limit Orders

Smart traders put in stop orders and limits on their trading to lock in their potential risk and reward. Short sales are investments that predict the price of a stock Read More

How Do You Read an MACD Histogram in Day Trading?

Moving Average Convergence Divergence, or MACD, is an indicator used to determine the direction of a new trend. Successful day trading, whether foreign currency or stock, primarily depends on recognizing Read More

How to Calculate Fibonacci Pivot Points

Fibonacci pivot points are useful in any trading sector including forex (foreign exchange) and the stock market. In trading technical analysis, they represent prices that are likely support and resistance Read More

How to Interpret the VIX

One of the best known volatility indicators for the stock market is the Chicago Board Options Exchange Volatility Index (VIX). The VIX is a dynamic measure of the implied volatility Read More

E-mini S&P 500 Options

E-mini futures are electronically traded futures contracts. The E-mini S&P 500 futures are widely used by traders to take positions on the S&P 500 stock index and the direction of Read More

Foreign exchange, or forex, is a worldwide marketplace that facilitates the exchange of one country’s currency for another. Currencies in this market are quoted in pairs, representing their relationship to Read More

Rules for Stock Day Trading

Day trading is a highly risky but potentially profitable way to engage the financial markets. Unlike most investors, who often hold onto their stock positions for months or years, day Read More

What Are Options & Futures?

When traders look for a way to diversify away from the stock and bond market, they often end up trading futures and options. Getting involved in the futures and options Read More

Three Ways That Stocks Are Traded

When deciding how to trade stocks, you must take several important factors into consideration. The right method will depend on how much time you are willing to commit, how much Read More

Explanation of Forex Short & Long Positions

Trading currency in the foreign exchange, or forex, market is a hobby for some and a profession for others. Gaining an understanding of the methods and terminology used by traders Read More

How to Get Into Commodities Trading

The commodities market includes raw commodities, such as grains, food, meat, energy and metals, that are traded in the commodities exchange through standardized contracts. A commodities trader purchases and sells Read More

Forex Broker Capital Requirements

Forex trading has grown significantly, with a continued escalation in retail trading accounts since 2001. The retail forex industry experienced very light regulation in its early years, and stringent regulatory Read More

Day Trading Vs. Swing Trading

Day trading and swing trading are techniques for buying and selling assets, most commonly stocks, within a short period. They differ in the time scale and the logic behind the Read More

What Does Slippage Mean in a Forex EA?

An EA, or expert advisor, is automated trading software that an investor can use to make trades. Currency prices fluctuate very quickly, so the expert advisor’s order may be received Read More

When Are Futures Markets Open?

One feature of futures trading is the ability to conduct transactions at almost any time of day. Commodity and futures markets are closed on weekends, but most futures contracts start Read More

Clearing and settling represent the final step in a trading transaction. The U.S. Treasury and other financial institutions use the process to uniformly exchange money or assets. Modern-day settlement and Read More

Difference Between a Foreign & a FOREX Account

While opening a foreign account and a Forex account might be similar, these are two separate types of accounts that have some key differences between them. A foreign account is Read More

Day Trading Stocks & Options

Stocks and options are two common types of investments that people buy and sell in the hopes of making a profit. Stocks represent small shares of ownership in companies, while Read More

Most Reliable FOREX Indicator

Forex trading is a fun hobby for some and a living for others. Trading profitably depends upon having reliable ways to read the market and placing more winning trades than Read More

Taxes on Trading Options

If you trade options, you know that there are numerous types of options and an equal number of outcomes to options transactions. As such, it is not at all surprising Read More

Do Pattern Day Trading Rules Apply to Cash Accounts?

The pattern day trading rules do not apply to a cash account. A large portion of the rules relate to buying and selling stock on margin. Margin trading is not Read More

What Are the Benefits of Commission-Based Forex Brokers?

There are several ways Forex brokers earn their money. These include commissions, spreads, dealing and theft. Of these, only commission-based brokers are certain to be indifferent to your trading results, Read More

How to Become a Professional Trader

There are two kinds of professional traders: those who work for a brokerage firm or other institution and those who make a living trading their own accounts. Professional securities traders Read More

Forex Intraday Trading Strategies

The foreign exchange (Forex) market is the highest volume and most liquid speculative market in the world. Over $4 trillion in Forex currency exchanges take place daily, according to the Read More

How to Write a NinjaTrader Divergence Indicator

NinjaTrader is an advanced-trading platform that can be used to trade derivatives both manually or using an electronic trading system. The company behind NinjaTrader, NinjaTrader, LLC, based in Denver, Colorado, Read More

How to Roll Over Option Trading

Options have a limited timespan and come with an expiration date. As this date approaches, you’ll have to decide what to do with the option. Roll over gives you a Read More

The Minimum Amount of Money to Day Trade in the Stock Market

The U.S. Securities and Exchange Commission, or SEC, is the government agency charged with regulating United States’ financial markets. The SEC has developed a special set of rules for investors Read More

Can I Trade Futures in a Retirement Account?

Futures trading involves buying and selling contracts for agricultural commodities, foreign currency, metals and other items whose price fluctuates from day to day. Futures traders make money by betting that Read More

Is Option Trading Reported to the IRS?

If you trade in options — securities that offer the ability to buy or sell a stock at a particular price — you may be surprised when it comes to Read More

Should You Hold a Position in FOREX Over the Weekend?

While the Forex markets are open continuously throughout the week, they do close on the weekends. This situation may pose a problem to you if you hold a position going Read More

How Much Money to Start Trading on the Forex?

You can begin trading in the foreign currency exchange market for as little as $100. Most brokers allow you to use margin to leverage your account 50 times. So a Read More

What Courses to Take to Become a Stockbroker

Stockbrokers handle stock transactions on behalf of individual and institutional investors. All stock transactions legally must be handled by registered stockbrokers, so these specialists are always at work behind the Read More

How to Use a Gann Grid MT4

Gann grids consist of 45 degree angled lines drawn on trending charts. Day traders (both forex and stock traders) use gann grids to possibly predict price movements and strong trends. Read More

What Stock Option Sales Are Considered Non-Reportable?

Tax reporting for stock options can be complex — rules vary depending on the nature of the trade, your role in the trade and the end result. One rule is Read More

How to Make Money Daytrading the Stock Market

Day-trading means buying and selling a stock in the same trading day. Some traders buy a stock hoping it will go up. Some traders sell a stock short, hoping it Read More

Is Day Trading Legal?

Both the Internal Revenue Service and the Securities & Exchange Commission consider day trading a legal activity. However, day traders must observe legal trading capital requirements and securities laws. According Read More

How to Use RSI 9 on FOREX

In FOREX trading, the Relative Strength Index (RSI) is a technical indicator for measuring the trend strength of a FOREX currency pair. It measures the rate of change of the Read More

How to Calculate a Silver Futures Contract

Silver futures are contracts for the future delivery of a specified amount of 0.999 pure silver. The standard futures contract is for 5,000 ounces of silver and prices are quoted Read More

How to Profit From Very Small Moves in FOREX Trading

Trading in the Forex market can be extremely profitable if you know how to navigate the market. One of the methods that many traders use is a scalping approach to Read More

How to Read Price Action in FOREX Charts

Chart-reading in the foreign exchange market, otherwise known as forex, can be particularly challenging for chart analysts. Chart readers typically analyze the relationship between price and volume. Forex trading is Read More

How Much Money Do You Need to Start Day Trading?

Different brokers have different requirements on minimum initial equity capital for security trading. For a cash account fully funded by a customer’s own money, the minimum initial equity can be Read More

How to Determine FOREX Liquidity

Liquidity is one of the best friends traders have because it provides enough buyers and sellers to allow traders to make transactions when they want to and at prices close Read More

Salary of a Day Trader

The business of buying and selling stocks and other investments throughout the day can be exciting, risky and rewarding. Day trading offers unlimited potential profits, but it also exposes one Read More

How Many Trades Does It Take to Be Considered a Day Trader?

A day trader is a securities trader who holds securities positions for less than the market day. Day trades are opened after the market opens and closed out by the Read More

How to Calculate Leverage

Investors and traders use leverage to increase the profit potential from the money they have to invest. Using leverage involves borrowing money to pay for part of the investment or Read More

How to Trade ES Futures

ES is the ticker symbol for the e-mini S&P 500 futures contract. The e-mini S&P 500 futures contract is a popular choice for traders who want to trade the direction Read More

How Can I Trade for Free on TD Ameritrade?

TD Ameritrade offers investors the opportunity to trade investment funds online for a flat rate. However, for those looking to trade funds at no cost, TD Ameritrade offers commission-free ETFs. Read More

The Average Income of a Successful Day Trader

A day trader’s income has many unknown variables, including his capital contribution, skill level, type of trades, risk tolerance, and fees and commissions paid, making it difficult to calculate. Success Read More

How to Make Gains Trading Forex With Pivot Points

Technical analysts use pivot points to predict the direction of price movements for highly liquid commodities, such as Forex. A pivot point is based on the average of the previous Read More

The Foreign Exchange Trading Process

Traders trade foreign currencies in hopes that they can profit from the changes in the exchange rate between the two currencies. In order to gain access to the Foreign Exchange Read More

Intraday Intensity Technical Analysis

Stock trading is a zero sum game. For every buyer there is a seller, and for every seller there is a buyer. When there are more sellers than buyers, the Read More

Starting a Forex fund can provide you with a way to come up with the money necessary to make large profits in the foreign exchange market. This market has a Read More

SPX is the stock market symbol for the S&P 500 stock index. Options trading on the SPX allows traders to set strategies to profit from projected changes in the stock Read More

Trading in the foreign exchange market, or FOREX, is both rewarding and challenging. To be successful, a FOREX trader must combine a deep understanding of the foreign currency marketplace with Read More

Panasonic UL 1220 Specifications

Finding the proper replacement battery for your camcorder is necessary for continued functionality. While many newer digital camcorders function using a rechargeable battery, older VHS models require more archaic acid Read More

FOREX Scalping Techniques

Scalping is the rapid trading of a highly liquid instrument, such as FOREX — the foreign exchange market. Scalpers try to eke out small profits from short-term trades, such as Read More

How to Figure Direction in the FOREX Market

Knowing the market direction, or trend, for a FOREX currency pair is essential to trading success. You can identify trends by using simple moving averages (SMAs). An SMA is the Read More

Forex Pip Definition

A pip refers to the smallest increment of a given currency. In the FOREX, or foreign exchange market, pips are representative of the most minute fluctuations in the value of Read More

How to Day Trade Using a Candlestick Chart

Candlestick charts are charts used by stock market day-traders to help identify patterns in particular stocks. A candlestick chart shows the range of movement over a period of time for Read More

How to Trade the Dow Via Options

The Dow refers to the Dow Jones Industrial Average, the oldest and most widely followed U.S. stock market index. Index options can be a low-cost way to make directional trades Read More

What Is Drawdown in Forex?

Drawdown is a term that is used in the Forex market to describe the amount of money that an account could lose after a streak of losing trades. Drawdown is Read More

The Best Indicators to Use for Day Trading on the FOREX Market

As the world’s largest financial market, and operating with a 24/7 trading window, the Forex market has come into its own as a destination for day traders to test their Read More

How to Trade the Asian Opening With FOREX

Trading Forex at market openings is a method most suited for fundamental traders. News events involving Asia that take place during Asian market-close hours naturally amplify trends of the currencies Read More

How Much Capital Is Needed to Become a Day Trader?

To be a pattern day trader, an investor must have a margin account with a brokerage firm and maintain a balance of at least $25,000 at all times. Read More

Simple 5M FOREX Trade Strategy

In FOREX terminology 5M stands for five minutes. A simple five-minute FOREX (Foreign Exchange) strategy is based upon a price chart which shows the high and low prices of a Read More

How to Avoid Whipsaws With Moving Averages When a Market Is Trading in a Range

Moving averages give visual signals for up or down trends in the market you want to trade. A buy or sell signal occurs when the price of the security you Read More

How to Make Money Trading Futures

A big advantage when trading futures is that you can sell a commodity before you buy it, so that makes it possible to make money whether prices are going up Read More

Taxation of Foreign Exchange Gains & Losses

The goal of a forex trader is to make money from foreign exchange transactions and make gains. It is a prudent policy therefore to know how to file your foreign Read More

How to Read Technical Analysis Charts

Technical analysis charts may appear confusing to the uninitiated, but with just a little study they become readable. Technical analysis is the study of historical price information in a market Read More

Fibonacci Day Trading Technique

The Fibonacci sequence, named after the Italian Renaissance mathematician Leonardo Fibonacci, refers to a sequence of numbers in which each number represents the sum of the two numbers preceding it. Read More

How to Calculate Maintenance Payments

Maintenance payments are an important consideration to bear in mind when investing in something. This is because maintenance is not necessarily an ongoing cost but one can strike unexpectedly and Read More

Foreign Currency Trading & Tax Laws

Internal Revenue Service (IRS) tax laws on foreign currency exchange trading in the foreign exchange (forex) market are somewhat confusing. In addition, the people making the trades have changed. The Read More