Misusing trendlines can result in a number of trading problems. Since trendlines are often one of the first technical analysis tools new traders learn about, there are several things you should know before you start relying on them too heavily. While each of these points is addressed individually, they all need to be considered while […]
The RSI, or Relative Strength Index, is a popular technical indicator, and has many different uses. By looking at the range the RSI is fluctuating in, it is often possible to tell whether a price trend is likely to continue, or if it is reversing. RSI Intro The RSI falls into a family of indicators […]
Having a working strategy is one thing, but knowing how to use it is another. I’m going to guide you through my strategy that I use for trading currency pairs. But you will have to practice and spend time to master it before you consider trying it out on your live account. If you are […]
The following are some basic, and not so basic, trading terms that you’ll likely hear as you enter the world of binary options. Call Option: An agreement between a buyer and seller that gives the buyer of the call the right to buy an underlying financial instrument at a specific price and time. In simplest […]
There are two main streams of thought when it comes to trading systems and strategies. There are those who believe an entirely rule-based system works best. There are others who believe a more flexible approach to trading is required, where guidelines are used, but not fixed rules. Then there are traders, like myself, who fall […]
I started my journey barely a year ago and had absolutely no trading experience. As many traders recommended, I began demo-trading. My goal was to show good results on the demo first and then start trading live. Unfortunately, there are limits to how much demo-trading can teach you. A demo account is a great place […]
I was at once pleasantly surprised, a little shocked and curious when I stumbled upon a binary options strategy on the SeekingAlpha website. SeekingAlpha is a large and respectable blog spot for investment and trading in the stock, options, commodities and currency markets. The mere fact that the article was hosted on such a site […]
The price breaks out in the direction you expect, and you jump aboard with a trade. Moments later the breakout has failed and you find yourself in a trade that is rapidly accelerating in the opposite direction. Welcome to bull traps and bear traps; terms used to describe an event where traders are trapped into […]
Even after a decade of a trading, I still do things some days that go against my trading plan and strategies. Sometime I take extra trades out of boredom, other times I skip trades, and other times I take all the right trades but fail to manage them properly. Regardless of what the problem is, […]
When monitoring price action, and using it to find and filter trades, understanding magnitude and velocity will likely have a great impact on your trading success (or failure if you don’t understand these concepts). These terms are simply used to refer to how far the price has run in a particular direction–magnitude–and how fast it […]