How do I calculate the Average True Range on stocks to set a stop loss position?
Any successful trader will tell you that stop losses are essential to a good trading strategy, but knowing where to place your stop loss is less obvious. Average True Range (ATR) can be an effective way to set stop loss positions and profit targets, and avoids the problem of being stopped out early. What is…
Which is better – range trading or trend trading forex markets?
Many traders come over to the 24-hour and deeply liquid currency market from other asset classes. The reasons for market such a shift are varied; but one thing is the same for those that wade into the new arena: they bring their methods and biases for trading with them. In many ways, the Forex market…
Global trading contest starts today
The GFT trading challenge – a global trading contest for new and existing clients with a $50,000 cash first prize – starts today. And the succesful trader who scores the biggest percentage gain over the coming three months, wins. GFT says that the trading challenge aims to do two things; firstly, bring traders across the globe…
Personal bankruptcies up in Dec qtr
Personal bankruptcies in the December quarter were up only slightly from a year before. There were 6,770 new bankruptcies in the December quarter, an increase of 2.1 per cent from the pervious December quarter, the Insolvency and Trustee Service Australia (ITSA) said on Thursday. ITSA is the federal government agency responsible for administering and regulating…
How this CFD trader made $20,000 in one week
A 9 percent jump in India’s ‘Nifty 50′ Index in the week following July’s pull-back saw part-time, twenty-something CFD trader Karthik Ganesh make over $20,000. Having initially dabbled in options four years ago, Ganesh quickly gravitated to trading indices with IG Markets where 24-hour markets offer the flexibility to ‘trade out’ whenever he wants. Choosing…
How to know if a share price has bottomed or topped
Question: What are the indications that a share price has bottomed or topped its current trend? Response: There are many ways to potentially identify if a share has bottomed or topped in a current trend. One of the most popular ways to identify the end of a trend is through technical analysis. Often the…
CFD strategies in all markets with examples
Increasingly unsatisfied with long exposure through the stock market, more investors are using a diversified mix of CFD’s to add leverage and flexibility to their investment portfolio. But regardless of which CFD trading strategies are used, and which instruments are traded, the overarching goal is to make money, despite what markets are doing. Irrespective of…
Inflation-fighting investments
Just as we were starting to feel confident again that the worst of the credit crunch was behind us, fear is creeping back into global markets – this time over the threat of inflation. And investors have a reason to be fearful. Trillions of dollars have been pumped into the global economy via “stimulus packages”,…
What happens when a warrant is out-of-the-money, or in-the-money?
What happens when a warrant is out-of-the-money, or in-the-money? Can you give me an example of both please. Response Warrants are financial instruments that derive their value from another underlying instrument and are issued by banks, governments and other institutions. They are commonly and broadly split into two categories; investment style warrants, which are longer…
How to fill your bid at market open
Hello Matt, some time ago I asked how the End Of Day settlement process works. Thank you for that. Can you please tell me how the Pre-Market works. I see on my screen the matching bids altering up and down on the pre-open. I would like to know if my initial bid will fill at…
