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Trading concepts

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 though there are a lot of lessons from past bubbles, mistakes […]

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Trading concepts

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 fixed distance. A Trailing Stop Loss Order […]

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Trading concepts

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 executed. Stop orders trigger […]

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Trading concepts

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 rotation strategy is an investment strategy that involves the movement of investments from one market sector to […]

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Trading concepts

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 components that are parts of successful trading […]

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Trading concepts

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 with its remarkable presence of almost 100 years. Charles […]