The Linear Regression Indicator plots the trend of a market instrument's price over a specified length of time. The trend is determined by calculating a Linear Regression Trendline using the "least squares fit" method. This method helps to minimum distance between the data points and a Linear Regression Trendline. Unlike the straight Linear Regression Trendline, the Linear … [Read more...]
Reasons to do Derivative Trading
If you are thinking of a trading option outside traditional stocks and bonds, derivatives trading can be a good option. Derivatives pay off over a period of time which is subsequently based on the performance of assets, interest rates, exchange rates, or indices. The payoff can be either in cash or in kind(assets )and vary, of course, by performance and timing. In addition to … [Read more...]
Derivative trading
A derivative is a financial instrument that is derived from some other asset, index, event, value or condition (known as the underlying asset). Rather than trade or exchange the underlying asset itself, derivative traders enter into an agreement to exchange cash or assets over time based on the underlying asset. A simple example is a futures contract: an agreement to exchange … [Read more...]
Stock market summary for 11th November 2009.
As investors turn cautious, domestic indices took a deep breath after four days of continuous surging, owing heavy profits Global signals On Monday, the major US and European indices recorded strong gains of about 2% each. The Dow Jones Industrial Average (Dow) that recently reclaimed 10000, went to hit its 13-month high after G 20 countries pledged to keep aid flowing … [Read more...]
Predictability and Trends in stock market
I often hear people swear that they make money using the rules of technical analysis. Do they really? The answer, , is that they do. People make money and profit indeed by using all sorts of strategies and techniques . The real question is: Do they make more money than they would investing in a blind index fund that mimics the performance of the market as a whole? Do they … [Read more...]