Fundamental Analysis

What Is Fundamental Analysis Fundamental analysis is the study of how global economic news and other news events affect financial markets. Fundamental analysis encompasses any news event, social force, economic announcement, Federal policy change, company earnings and news, and perhaps the most important piece of Fundamental data applicable to the Forex market, which is a country’s interest rates and interest rate policy. The idea behind fundamental analysis is that if a country’s current or future economic picture is strong, their currency should strengthen. A strong economy attracts foreign investment and…

5 Investing Myths

5 Investing Myths That Will Hurt You In the summer of 1885 William R. Travers, prominent NYC businessman and builder of Saratoga Race Track, was vacationing in Newport, Rhode Island. He pointed out a long line of beautiful yachts tied up in the harbor. When he was informed that they all belonged to Wall Street brokers he simply asked, “Where are their clients’ yachts?”. When it comes to investing, there is nothing more dangerous to an individual’s future outcomes than falling prey to the many myths perpetrated on them by…

When Not to Trade

Knowing When Not to Trade is Important In my experience, one of the toughest challenges you may face as a trader grapple with is knowing when to keep your powder dry, a Wall Street maxim for staying out of the market – knowing when not to trade.  Essentially, keeping your powder dry means saving one’s resources, and being prepared for when they will be used in the most effective manner. In trading, this translates into only putting capital at risk when the opportunity offers the lowest risk and highest probability.…

How Futures Market Works

How does the Futures market works? The futures market is a centralized marketplace for buyers and sellers from around the world who meet and enter into futures contracts. Pricing can be based on an open cry system, or bids and offers can be matched electronically. The futures contract will state the price that will be paid and the date of delivery. But don’t worry, as we mentioned earlier, almost all futures contracts end without the actual physical delivery of the commodity. What Exactly Is a Futures Contract? Let’s say, for…

Learn to Invest with no-risk

The way to learn to invest with no-risk If you’re an investing beginner, the prospect of putting your money at risk can scare you to death. To get yourself used to how the stock market works, you might want to give your investing strategies a practice run before you actually invest real money. So as you can learn to invest with no-risk. Enter mock portfolios While you get comfortable with the mechanics of investing (such as researching companies and deciding when to place your buy and sell orders), you can…

Errors When Trading The Inside Bar Pattern

3 Common Errors When Trading The Inside Bar Pattern The inside bar pattern can be a very powerful price action signal if you understand how to trade it properly. Unfortunately, many traders do not know how to trade it properly and as a result, they end up losing money over and over and become frustrated with inside bars. Like any other price action signal, there are subtleties to trading the inside bar setup and learning these subtle differences between a ‘good’ and ‘bad’ inside bar signal is often the difference…

14 Stages of Investor Emotions

Trading Psychology, The 14 Stages of Investor Emotions Efficient markets are based on the assumption that rational people enter transactions with the intent to maximize gains and minimize losses. While this theory is sound, most investors are not the purely rational robots that efficient markets rely upon. Instead, emotions – there are 14 stages of investor emotions – often cloud our decision-making and prevent us from acting in a rational manner. Knowing we can never conquer our inherent emotional biases, we should seek to understand the range of emotions we…

Strong Versus Weak Opportunities

Online Trading Academy teaches our students where the proper areas to buy and sell lie on the charts. Those areas, as you may know, are supply and demand levels. However, there seems to be some confusion among traders as to how to identify the best levels for entering or exiting trades. What we call “strong versus weak opportunities“. Free Trading WorkshopRemember, we want to buy at strong demand levels where the supply is very thin and prices are likely to rise.  We want to sell at supply levels where the…

Frugal habits to become a millionaire

8 frugal habits to become a millionaire which helped me become and stay a millionaire. There are approximately 35 million people who are millionaires in the world. As Robert J. Samuelson states so perfectly in The Washington Post, “That’s about 5% of the U.S. adult population (241 million in 2014), or one in 20. Rarefied, yes; exclusive, no.” Though the population numbers have gone up in the past year, they still prove a point. It’s totally possible for you to become a millionaire when you know this 8 frugal habits…

How to Read Stock Tables

Every investor needs to know how to read stock tables their find in any financial paper and which will look something like the image below: Columns 1 & 2: 52-Week High and Low – These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day’s trading. Column 3: Company Name & Type of Stock – This column lists the name of the company. If there are no special symbols or letters following the…