Everyone is concerned about the scenario of how terrible bears markets are. But there are many ways in which trading and especially learning to trade in a bears market can help you. 1. Stocks tend to go down faster then they go up. I know to most of you that does not seem like a good thing but think about this. If a stock is moving in either direction you can … [Read more...]
Understanding Stock Volume And Liquidity
Understanding that volume and liquidity in a better way will boost trading profits puts you one step closer to financial freedom. The active, professional trader should know how to act in any market, liquid or illiquid condition 1. High Volume Means High LiquidityStocks with a high volume are very liquid, not to mention they have lower spreads between the bid and ask … [Read more...]
Why Paper Trading is beneficial ?
Paper trading is one of the most important parts of stock market trading. There are many reasons why you would need to paper trade before you put any real money in the stock market. 1. It helps you test your system. Paper trading can help you test your system without risking money. You will be able to figure out if your system actually works or if it doesn’t, … [Read more...]
Why a stocks volume is important ?
The stocks volume is a second most important market indicator , it plays a very important role in determining future price movements of a given stock. Volume is an indicator that you can put on your chart. Unlike most indicators it is not developed by using a calculation. It simply tells you how many times a given stock was traded within a given time frame. For example if … [Read more...]
Why Stock, Futures and Forex Markets Correct from Bull to Bear
When does the market goes up? Markets moves up because market participants believe in the fundamentals behind the market. At a certain point it is seen that the fundamentals change and the market corrects, however the reason fundamentals change is not because of some external event, but because of the participants themselves. In other words, an excess of bullishness creates … [Read more...]