Successful trading and investing demands a great amount of knowledge, financial management and risk management. Online trading platforms made it easy for everyone to participate in the financial markets. Nowadays you have the stock exchange on the tip of your finger. With an instant access to real-time share prices and Forex trading, it seems traders are just a couple of clicks away from wealth. Unfortunately, it is not that easy. If you are wondering where to start from, our trading basics section is for you.

Bollinger Bands Basics

Liked for their attractive appearance and easy interpretation, Bollinger Bands are in the top three most popular indicators. John Bollinger developed two bands that reflect volatility and are located over and under a moving average. To determine volatility and measure it, Bollinger uses standard deviations, which change with the up and down movement of volatility.…

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Greed Not to be Mixed with Trading

Almost all people who go into trading are at least partially driven by greed. Maybe not in a bad way, maybe not in excessive amounts. But it is there. This is natural and is part of our human psyche. But it can lead to disastrous consequences if you let it drive your decisions and trades.…

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Trading with the On Balance Volume Indicator

On Balance Volume (OBV) is a volume-based indicator that aims to measure the pressure buyers and sellers exert on the markets. Its approach is to add volume on days that the price rises and subtract volume on days that the price drops. Developed in 1963 by the chartist Joe Granville it was probably the earliest…

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Volume Trading Basics | Forex, Crypto, Stocks

Volume is one of those trading terms that can be a bit confusing. What does it represent? Is it an indicator? How is it calculated? How do you interpret it? We’ve got all the answers here. Let’s tick off the definition: if one buyer and one seller perform a transaction at an agreed upon price…

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Trading Diary: Why You Need One

The ability to learn from one’s mistakes is a valued asset in all parts of life. But it’s especially true when it comes to money. Investing is all about money and having a trading diary, regardless if you’re a day trader, or focused on the long term, is a must. Having a record of what…

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MACD: Moving Average Convergence/Divergence

Moving Averages combined with Convergence and Divergence – that’s how you can define the MACD (pronounced “M-A-C-D” or “Mac-Dee”, like Mcdonalds), another widely used technical indicator. The specific thing that makes it stand out and hold a loyal following is that it provides signals in a clear way by interpreting two different moving averages and…

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Exponential Moving Average Explained

The Simple Moving Average (SMA) is undoubtedly most popular among its siblings but its Exponential Moving Average (EMA) cousin also has a solid fan base. It’s actually quite similar to the SMA with the one difference being that more weight is given to prices that are more recent. The idea behind this is that it…

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Moving Averages: Learning the Basics

Moving Averages are loved by both small traders with several hundred in their accounts and analysts at banks and hedge funds performing technical analysis. Why is that? The idea behind them is that they eliminate noise and short-term distractions from the larger trend. That’s why they’re defined as a lagging indicator, following trends and showing…

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RSI – Understanding the Most Popular Indicator

The Relative Strength Index (RSI) is probably the most popular indicator. Why is it so widespread? Maybe because of how universally simple it actually is or maybe because it aims to provide clear buy and sell points. That was indeed the intention of technical analyst Welles Wilder, who came up with it in 1978. He…

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Technical Indicators: Beginner Guide

Technical indicators can be a traders’ best friend. They are like searchlights showing the path and deciphering complex situations where prices move in unexpected ways. But they can also confuse and obscure the picture. That’s why we decided to go over their building blocks and show how technical indicators should be used correctly. So let’s…

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How to Plan a Trade in Advance?

Two clicks and you’re rich. That’s what trading looks like to many of the traders that decide to have a go at the markets. But when you actually make a trade, it’s just not like that at all. Trading is just like any professional activity that has the ultimate goal of achieving some sort of…

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More vs Better Trades? Which is Best?

One of the most important challenges that new traders face is how many trades they should make. This issue can be the result of different types of experience – fresher traders might have a cautious approach and do less while they gather a bit of confidence. They could go for the guns blazing approach too…

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6 Important Habits of Successful Traders

Plan your trades in advance and follow through Knowing the open and close price for your positions is what good traders do in advance. This helps against impulsive decisions that usually don’t take all factors into account. Keep a diary Record your trades in a file or on paper. That way you can go back…

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Overcoming our Fight or Flight Instinct to Trade Better

All of us approach trading in a different way. Depending on our age, gender, social status and experience we are more or less patient or aggressive. But one thing lies beneath the surface of all of us – our fight or flight instinct. Some are more analytical and good with math, others go with their…

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