Trading concepts

Dow Theory: How Institutions Move The Price?

Dow Theory: How Institutions Move The Price?

The Dow theory is a financial theory stating the market is in an upward trend if all its averages are in sync.For example, the industrials average should move coherently to the transportation average. The Dow Theory is one of the oldest theories of technical analysis...

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Quick Guide to Mastering the Risk/Reward Ratio

Quick Guide to Mastering the Risk/Reward Ratio

The Risk/Reward ratio is a measure of the potential profit potential of trade compared to its risk.It a very important metric used by traders to manage their risk on each trade they consider.With win rate it helps estimate how profitable a strategy is. There are many...

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Sector Rotation

Sector Rotation

The Sector Rotation Strategy assumes investors invest cyclically their funds in predictable industries.This theory is used by traders to anticipate investments & divestment and thus profit for price variations.It links market cycle to economic cycles. Sector...

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Order Types: Execute your trades like a boss

Order Types: Execute your trades like a boss

Multiple types of orders exist and can be used to best suit your trading strategy.A market order buys or sells shares at the available price until all the order is filled.A limit order buys or sells shares at a fixed given price. There is no guarantee it'll be fully...

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Trailing Stop: How to protect your trades?

Trailing Stop: How to protect your trades?

Trailing stop helps trader secure their trade automatically when it moves in their favor.It can let traders book profit or mitigate risk if the price reverses.Trailing stop only moves in one direction as price progresses.It can be set as a percentage of price or a...

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Market Cycles: It doesn’t repeat but it rhymes

Market Cycles: It doesn’t repeat but it rhymes

Cycles are are patterns which repeat (in the market, business or in other contexts).Market cycles often have 4 phases.Identifying the current phase of the cycle can be close to impossible.Assets behave differently at the different phases of the market cycle. Even...

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Trading vs gambling: Similiarities & Differences

Trading vs gambling: Similiarities & Differences

Most people all across the globe have a perception that trading is gambling. There are also many others who think the opposite, trading is not gambling. So, what is the reality? Is trading really gambling? Has it some similarities with gambling? Or, it isn't gambling...

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Trading Journal – All you should know (+7 tools)

Trading Journal – All you should know (+7 tools)

For you trading to get better, you have to keep track of what you do. That's what your journal is all about.It lets you keep track of what you learn, what you do, your trades, your emotions and your errors.Keeping track and then reviewing it will help your trading to...

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Trading Rules: Key Rules to Trading Success

Trading Rules: Key Rules to Trading Success

Trading is often viewed as an activity of complete freedom.But to succeed, every trader must set rules he is willing to follow.Rules help traders manage their emotions and relieves them from excessive stress. Financial trading is not just about numbers, figures, and...

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How to pick stocks? All you must not miss!

How to pick stocks? All you must not miss!

There is a long list of stocks, mutual funds, and exchange-traded funds to pick for trading and investing. Understanding how to pick stocks is absolutely imperative to any trader or investor's success. We have put together an easy, complete, and step-by-step guide for...

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11 Essential Steps To Create Your Profitable Trading Plan

11 Essential Steps To Create Your Profitable Trading Plan

Let's set the stage of trading plan with 2 quotes: By failing to prepare, you prepare to fail.Benjamin Franklin and Give me six hours to chop down a tree and I will spend the first four sharpening the axe.Abraham Lincoln That is the importance of planning. Without...

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3 Proven Trading Strategies

3 Proven Trading Strategies

Technical analysis and trading gurus always advise to main discipline to be a successful trader. But, it is very difficult and sometimes seems impossible to main discipline when you are trading. Here, a proven trading strategy comes into the mix of things. A...

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Investing vs Trading: All the main differences

Investing vs Trading: All the main differences

Before you enter the complicated world of investing and trading, it is crucial to understand the difference between investing and trading. Which is better for you, investing or trading. And, which is more profitable investing or trading.  Investment means buying...

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Behavioral Finance: Psychology meets trading

Behavioral Finance: Psychology meets trading

Behavioral finance is a sub-field of behavioral economics.It is built on the assumption humans are not rational individuals.It also propounds that psychological influences and biases can cause market anomalies and stock market anomalies in particular. The phrase...

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Technical Analysis vs Fundamental Analysis

Technical Analysis vs Fundamental Analysis

Technical analysis or TA is the study of the past movements of financial markets and securities including price and volume.Fundamental analysis focuses on figuring out the true value of stocks.Fundamental Analysis vs Technical Analysis has several similiarities and...

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11 Life Changing Reasons You Should Start Trading Now

11 Life Changing Reasons You Should Start Trading Now

People from all across the globe consider trading as a high barrier-to-entry profession. They often ask questions like “why should I trade?” “why trading is important?” or “is trading really worth it?” Don't be anxious and overthink. If you have enough ambition and...

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Best Tools for Fundamental Analysis Success

Best Tools for Fundamental Analysis Success

Whenever you make a trade, you always ask yourself why it is a good idea. Fundamental analysis answers questions arising in your mind. Fundamental analysis is one of the two key stock analysis techniques. The second one is technical analysis. Both require great tools...

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The 9 Hard Reasons Trading Might Not Be For You

The 9 Hard Reasons Trading Might Not Be For You

Do you know what stats say about the people who set on the journey to becoming stock market or Forex traders? Only 10% of those taste success in the stock market trading and make money. The other 80% lose their money and the remaining 10% achieve break even. That is...

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How To Set The Most Effective Trading Goals

How To Set The Most Effective Trading Goals

Once Lawrence J. Peters said, “If you don't know where you are going, you will probably end up somewhere else.” That is the importance of goals in the simplest words. People with vague vision never reach their destinations. They don't get up every morning with a...

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What is Copy Trading? How Does it Work?

What is Copy Trading? How Does it Work?

Do you want to learn what is copy trading? Or, how does copying work? Then you are on the right platform because we are going to learn all about copying in this article. In a hurry? Just want to start copy trading now?Click here to start copytrading right now on...

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Can a stock price drop to zero? Myth busted!

Can a stock price drop to zero? Myth busted!

A stock can see its price go to zero.Traders can profit from prices rising or dropping.Traders can loose more than their initial investment in some cases. Everyone who wants to enter the arena of the stock market must know that the games played in this arena are...

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Why is a stock listed on several exchanges?

Why is a stock listed on several exchanges?

Dual listing, also known as cross-listing or multiple listing, is a phenomenon where a company seeks to list its stock on different stock exchanges. The dual listing requires companies to meet certain legal and regulatory requirements and deposit fees. Dual listing...

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Why do companies pay dividends?

Why do companies pay dividends?

Stock investors can be paid to own stock.Dividends are a way for company to share a part of their profits with their shareholders.There are many reasons for companies to pay dividends and not to pay dividends and each company can decide. Dividends are a part of...

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Why does the share price drop after dividend is paid?

Why does the share price drop after dividend is paid?

Dividend payment attracts positive public sentiment and more and more investors begin to take interest in its shares.The company loses its cash in hand by paying dividends and hence its overall price gets reduced. Dividends are a part of profits that a company earns...

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What is a Choppy Market & How to Trade A Ranging Market?

What is a Choppy Market & How to Trade A Ranging Market?

What is a Choppy Market? This is a market lacking any clear trend. Orderly markets trend upward and downward, providing traders with the chance to place their bets. There is no noticeable pattern to the movement that occurs in a choppy market. The adjustment happens...

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Zero Sum Game: What is it & Differences to Non Zero-Sum

Zero Sum Game: What is it & Differences to Non Zero-Sum

What is Zero Sum Game? This is a condition in a game theory where the loss incurred by an individual is equal to the gain of another individual. Therefore, the net change in wealth is equal to zero. A zero-sum game can have as little as two players participating or as...

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How Stop Loss Orders Are Traders Best Friends?

How Stop Loss Orders Are Traders Best Friends?

If I have to name a single tool that is absolutely imperative for a trader's success, it would be a stop-loss order. A stop-loss (abbreviated as SL) order is a crucial part of a trader's exit plan when the market goes against expectations.  How stop-loss orders are...

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How Many Trading Days are There In a Year? [2022 Updated]

How Many Trading Days are There In a Year? [2022 Updated]

Regardless of whether you are not a stock merchant, you presumably realize that the financial exchange doesn't open all week long, which can restrict the amount of days one can exchange during a year.  Considering that, you might think about the quantity of...

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Consolidating Stock – What is it? How to Identify One?

Consolidating Stock – What is it? How to Identify One?

In light of the ongoing coronavirus pandemic, most people are refocusing their energies on physical and mental health, relationships with family and loved ones, and improving our skill sets and self-improvement. Let's deep dive into consolidating stock in this...

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What is Tick Size? Does it matter for your Trading?

What is Tick Size? Does it matter for your Trading?

Are you wondering about what tick size is? Well, you will get answers to your questions over here. Tick size is actually used for referring to the minimum price movement of a trading instrument in the market. There are different price movements for different trading...

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What is Market Making? Can you do it?

What is Market Making? Can you do it?

You might have heard about market makers. Market making is a term that refers to making relations with the market. The markets makers are the firms or individuals who quote the two-sided markets. It particularly adds the quotes of the security. What is market-making?...

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Pick One : 1 Penny Doubled for 30 Days or $1 Million Today

Pick One : 1 Penny Doubled for 30 Days or $1 Million Today

1 penny doubled every day for 30 days = $5,368,709.12 (which is way more than $1 million)If you consider 10% fees and 10% taxes, after 30 days you "only" have $11,910.65 (only 0.22% of $5,368,709.12)You can play with these figures and charts here What will you like to...

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How to Find the Next 10 Bagger Stocks? + Definition

How to Find the Next 10 Bagger Stocks? + Definition

Are you worried about how to find 10 bagger stocks? We are here to help you out easily. Here is a blog that will help you out! A detail about 10-bagger Fidelity mutual fund manager Mr Peter Lynch used this term for investing in the 1980s and 1990s. This term describes...

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How to Trade Like a Casino : 100% Sure to be Profitable

How to Trade Like a Casino : 100% Sure to be Profitable

Do you want to trade like a casino? Do you want to always be profitable? Then our today's post is for you. Our today's guide on how to trade like a casino will demonstrate how you can make consistent profits as a professional trader. As we all know, the trading arena...

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What’s The Best Day of The Week to Buy Stocks?

What’s The Best Day of The Week to Buy Stocks?

Best Day of The Week to Buy Stocks? Currently, in many financial markets, the trading hours are very long. And although sometimes it may seem like a great advantage, it can also be a drawback to achieving good results. And it is that not all...

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Blow-Off Top – How To Identify & Trade It?

Blow-Off Top – How To Identify & Trade It?

On the off chance that you're a financial backer, you should be adaptable, neither a bull nor a bear. I don't have the foggiest idea when I cancel the Blow OFF Top of the Air pocket Blowing. Positively trending Business sector will end. Following 12 years being long...

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Buying On Weakness – Definition & Is It a Good Strategy?

Buying On Weakness – Definition & Is It a Good Strategy?

What Exactly is Buying on Weakness? Buying On Weakness is the famous and also most proactive buying and selling method. Try a method in which a dealer enters into lengthy positions beforehand of the predicted reversal in a safety fee. This method is derived from the...

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What is an Exhaustion Gap? How to Find it?

What is an Exhaustion Gap? How to Find it?

What is an Exhaustion Gap? How to Find it? The Exhaustion gap looks like the most interesting hole withinside the morning. However, what makes the space exact is the quickness of the inversion. The Exhaustion gap ordinarily shows up at the acquiescence of longer rate...

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How To Understand & Forecast Market Direction? Simple Guide

How To Understand & Forecast Market Direction? Simple Guide

Understanding and forecasting market direction are the keys to profitable trading. In fact, predicting market direction is the foundation for your overall trading performance. If you predict the market direction correctly, the door of significant gains is open to you....

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Gap and Go Strategy: What is it? How to Trade It?

Gap and Go Strategy: What is it? How to Trade It?

The Gap and Go strategy are among the most popular trading strategies. It enables traders to make significant gains by capitalizing on gaps. Why do such gaps appear and what are the causes of gap formation? What is the Gap and Go strategy? And how can you also take...

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How to Avoid False Breakouts? Simple Way Explained!

How to Avoid False Breakouts? Simple Way Explained!

To trade breakouts with confidence, you first need to know how to avoid false breakouts. Breakouts are lucrative for traders because they provide a perfect point to enter and a perfect spot to place stop-losses. However, it is also important to know that breakouts can...

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How to Calculate Stocks Profit: Know Your Gains & Losses

How to Calculate Stocks Profit: Know Your Gains & Losses

Knowing how to calculate stocks profit is important. Accurate stock profit calculation lets you know your gains or losses. Although it seems pretty simple because most traders, especially beginners, think that it involves a simple calculation. According to them,...

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How to Short Sell on Robinhood? Best Way to Short Stocks?

How to Short Sell on Robinhood? Best Way to Short Stocks?

Do you want to know how to short sell on Robinhood? Then you aren't alone. You might find a lot of people asking about how to short stocks on Robinhood, especially when you are in the community of traders. Therefore, we decided to help you and others interested in...

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What does Low Float Stock Mean? Definition & Examples

What does Low Float Stock Mean? Definition & Examples

Stock float, high float stock, and low float stock meaning are important to know in stock trading. Why so? Because stock float directly influences stock price as well as stock trading strategies. High float stocks attract medium or long-term traders. Whereas,...

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Post-Earnings Announcement Drift: Definition & Explanation

Post-Earnings Announcement Drift: Definition & Explanation

Post-earnings announcement drift is an anomaly in financial markets. It causes cumulative abnormal returns of stocks of a company to drift for an extended period of time. This is a very important phenomenon for traders to understand. Therefore, we decided to provide...

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OTO Order – Use One Triggers Other Order Like a Boss

OTO Order – Use One Triggers Other Order Like a Boss

An OTO order is a conditional order that consists of two linked orders. This is an advanced order type that enables traders to optimize their trading. How so? Because this order type empowers traders to achieve optimal price fills on both entries and exits. So, this...

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Orders Entry – Definition, Process, and Strategies

Orders Entry – Definition, Process, and Strategies

Orders entry is the order to enter a trade at a specific price level. There are different types of order entry as well strategies to do in the best way. Moreover, it is important for traders to fully understand entry orders for better trading. That said, the purpose...

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How to Become a Part-Time Day Trader? Profitable Trading

How to Become a Part-Time Day Trader? Profitable Trading

Part-time day trading is an idea that is attracting more and more attention across the globe. It is alluring because who in this world wouldn't want to earn some extra money. Additionally, it offers flexible working hours as well as working from anywhere in the...

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What does Partially Filled Mean? Definition & Real Example

What does Partially Filled Mean? Definition & Real Example

A partially filled trade execution refers to a trade execution where a partial amount of your trade order is filled at your desired price. Do you want to know more about it? Then you are on the right platform. We are going to explain what partially filled means with...

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When to Trade Forex on the New York Forex Session

When to Trade Forex on the New York Forex Session

Do you want to know all about the New York forex session? Then you are on the right platform at the right time. We understand how important it is for forex traders to know about the New York forex session as almost 17% of forex transactions occur in New York. ...

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How does a Pump and Dump Scheme Works with Penny Stocks? 

How does a Pump and Dump Scheme Works with Penny Stocks? 

Pump and dump penny stocks scheme is a form of fraud you experience in investment and securities. Fraudsters make a lot of money using this fraudulent scheme by selling penny stocks at inflated prices.  Do you want to know how a pump and dump penny stocks scheme...

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Tape Reading – What is it? How to Best Profit from it?

Tape Reading – What is it? How to Best Profit from it?

Tape reading refers to making trading decisions based on information collected from observations of stock price and volume reports. It is one of the most ancient trading techniques.  So, what is this tape reading? Is this old-fashioned trading technique still...

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Top 10 Reasons Why Most People Are Broke

Do you want to know the reasons why most people are broke despite having more opportunities to make money in this digital era? There is no doubt in the fact that more money is currently circulating in the world. People have more opportunities to make money through the...

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Scared Money Don’t Make Money – Origin & Key Takeaways

Scared Money Don’t Make Money – Origin & Key Takeaways

No risk, no reward is probably the best explanation of the phrase “scared money don't make money”. Members of the hip-hop community widely use this phrase and it is quite popular. Nowadays, the phrase has also gained popularity in the world of trading and investing....

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Ultimate Tips for Supply and Demand Trading

Ultimate Tips for Supply and Demand Trading

Supply and demand trading is one of the most popular as well as useful ways to trade financial markets. In fact, the dynamics between supply and demand have been right at the heart of almost all trading strategies.  Do you also want to know about the holy grail...

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How to Start Trading with No Money? Is it Possible? 

Is it possible to trade with no money? Trading capital is one of the most fundamental elements of trading. However, some people with no trading capital may wonder “is it possible to trade with no money?” Yes, it is possible to trade with no money.  If you don't...

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How to Save $10,000 Fast – Painless and Easy

How to save $10,000 fast, easily and painlessly? This is a very pertinent question you should know the answer to. Obviously, you wouldn't want to be among people who don't care about saving money. Saving money is important to achieve financial freedom at some point in...

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20 Rules of Money – Must Know

20 rules of money are very important to know about to play a money game. Most people earn a lot of money but end up having nothing in their pockets or bank account. Why? Because they don't know what to do with their money. Always remember that earning money is hard...

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How to Avoid Stop-Loss Hunting? Prevent & Protect

How to avoid stop-loss hunting is a question all traders want to know the answer of. A stop-loss order is an order traders place to limit their losses. However, stop-loss hunting often causes significant losses to traders because prices often reverse after triggering...

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Trading Imbalance – What is it? How to Find & Trade it?

Trading Imbalance – What is it? How to Find & Trade it?

Trading imbalance is a crucial concept in trading that refers to inequality between buying and selling orders. In other words, trading imbalances happen when the market receives too many buying or selling orders and very few counterpart orders.  Do you want to...

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Do Scalpers Use Stop-loss? 

Most people often ask about scalper stop-loss. Stop-loss orders enable traders to cut their losses short when trades go wrong. This perfect risk management tool executes a market order when the price of a security reaches a certain point. Additionally, stop-loss...

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Trader Edge: How to Build One? Be Consistently Profitable

Trader edge refers to a trading approach of traders that empowers them to make money irrespective of market conditions. It enables them to earn profits even when hundreds of other traders lose money. But what exactly is this trader edge? Trader edge definition Trader...

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Differences between Plan and Strategy in Trading

Differences between plan and strategy are very obvious. Understanding these differences is very important in trading. Trading strategy and trading plans are the basics you must master. Similarly, identifying differences between plan and strategy in trading is also...

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Shares vs Dollars – Is it better to buy shares or dollars

Is it better to buy shares or dollars? Or should you keep cash in dollars or buy stocks? It isn't a simple question and its answer isn't simple either. There are numerous factors you need to keep in mind before making your decision. Let's discuss whether is it better...

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Can You Buy and Sell Stocks on the Weekend? 

Can you buy and sell stocks on the weekend? Yes, you can. It wasn't possible in the past. Traders couldn't trade whenever they wanted. However, the computer and internet revolution in the modern era has also revolutionized how we trade. Electronic trading has made it...

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Forced Share Recall – Definition & Impacts

Forced share recall is a very key concept for short-sellers. If you are a short-seller, you may have to face a situation where your broker may ask you to return borrowed stock. Although this isn't a common situation and only arises from time to time, it is important...

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Forced Liquidation – Definition, Reasons, & Impacts

Forced liquidation is a very important concept for margin traders. Yes, if you are a margin trader and fail to meet a margin call, you will have to face consequences. And that is the involuntary selling of assets in your portfolio.  Therefore, if you are a margin...

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Infinity Short Squeeze – Definition & What are the Risks

Infinity short squeeze is a very important phenomenon in stock trading. Why is it important to know about it? Let me ask a question to make things clear. Suppose you are a short-seller and looking to short-sell stocks of a company. What are you expecting? You are...

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Paper Hands – Meaning & Where does it come from?

In this article, we are going to share with you the paper hands meaning. If you are in the world of trading, you would have probably heard about paper hands and diamond hands. Have you ever wondered what these terms mean and where did they come from? Let's dive deep...

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Buy Wall vs. Sell Wall: What is it? How to Spot it?

Buy wall vs. sell wall is a key concept in trading. Whether you are trading stocks or cryptocurrencies, you need to understand what is a buy wall and what is a sell wall. Whales and experienced traders use these walls to enter or exit trades. Therefore, if you want to...

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Dollar-Cost Averaging: Is there an Optimal Frequency?

Dollar-cost averaging frequency refers to improving your dollar-cost averaging strategies after intervals. As you know, dollar-cost averaging is a strategy that emphasizes buying financial instruments after intervals to build your portfolio. It is one of the simplest...

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Fat Finger Trade – What is it? What are the Worst Errors?

A fat finger trade is a case of entering or exiting a trade by mistake. You can consider it synonymous with pushing the enter button instead of the delete button on your keyboard. The impact of a fat finger error may not be dire if you are a retail trader. However,...

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5 Top Stock Market News Websites You Should Follow

Stock market news is the best source to stay up-to-date on market developments and to make more informed trading decisions. It is the key to success in the trading arena. However, it is crucial to read financial news on an authentic and trustworthy financial news...

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Are Candlestick Patterns Reliable

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