FAQ

Special Forex Strategies For Trading News Events

Question: Are there special forex strategies for trading news events? Response: There are a few strategies that come to mind when trading news events. However, finding the style that fits one’s trading personality and tailoring it to meet different needs can help to curb the risk for loss while broadening the scope to profit from…

How Do You Know That A Currency Is Really In A Trend

Question: I read all the time that you have to trade with the trend. But how do you know that a currency is in a trend and isn’t just a momentary blip? Response: That is correct, it is much easier to trade in the same direction as the trend rather than against the flow. You…

How do I get an order filled before the open of the market ?

Question: “I was waiting to buy  “SIP” on Friday morning and on opening at 11:00 it was already +38%! How do people get their orders filled before open to receive the gain? On Thursday I put an order in at 7:30am to buy “AEC” at 2.680 and when it opened I did not get my…

Can I use a margin loan to buy just one stock?

A Margin Loan can be utilised to purchase just one stock. However, before considering in investing in just one stock, you will need to consider how much you wish to borrow. In the case of the top 20 shares listed on the ASX, we lend up to 65% of the current value of these shares,…

When is the best time to trade CFDs?

Question: I was wondering if you could tell me the best times of the day to trade CFDs.  Are there certain times of the day that breakouts would be more likely etc? Response: Knowing what time of the trading day presents the most opportunities is particularly important for day traders. A day trade has a…

Silver’s Rally Could Be Ending

Since emerging out of the usual summer doldrums, silver’s performance has been dazzling.  Buyers are returning to this hyper-speculative metal en masse, driving some fast-and-furious gains.  And the Fed poured rocket fuel on silver’s hot rally last week when it announced its newest inflationary campaign. The broad commodities rally the Fed sparked helped catapult silver…

When is my portfolio at risk of falling into margin call territory?

Question: What is a margin call, and how can I calculate when my portfolio is at risk of falling into margin call territory?   Response: Any portfolio that is highly geared is at risk of falling into margin call territory. This can be calculated if your current LSR (loan-security-ratio) is approaching your base LSR. If…

What is the difference between an exchange traded option and a company option?

There are key differences between Exchange Traded Options (ETOs) and Company Options. An option is either the right to buy (a call option) or the right to sell (a put option) the underlying asset for an agreed price on or before the predetermined date. Company options are call options which may be issued to shareholders…

What is momentum trading? And how does it work?

For the purpose of this article momentum refers to the rate of acceleration of a security’s price ie how quickly it builds up speed in terms of price. Healthy price trends tend to display strong momentum while weakening price trends often have decreasing momentum. Momentum trading aims to identify explosive share price moves for the…

How do I know when I should exit a trade?

Question: How do I know when I should exit a trade? Are there some rules on this that I can follow? Response: Many traders approach their strategy with one thing in mind: establishing the qualifications for entry. The ‘edge’ if you will. From there, the trade should take care of itself, right? Not really. How…