What is Fixed-Income Trading? Fixed-income trading is the process of trading fixed-income securities over-the-counter (OTC). The fixed-income market offers low transaction costs, a competitive market structure, and a large, diverse collection of market participants. The fixed-income securities market is dominated by institutional investors. What is a Fixed-Income Security? A fixed-income security, or debt security, is…
What are Mutual Funds? Mutual Funds are pools of money collected from many investors for the purpose of investing in stocks, bonds, or other securities. Mutual funds are owned by a group of investors and managed by professionals. In other words, a mutual fund is a collection of securities owned by a group of investors…
What is Technical Analysis? Technical analysis is a tool, or method, used to predict the probable future price movement of a security – such as a stock or currency pair – based on market data. The theory behind the validity of technical analysis is the notion that the collective actions – buying and selling –…
What is Trade Order Timing? Trade order timing allows investors to set the amount of time a trade order is good for. The different types of trade order timing each have different advantages and disadvantages that play along with the different strategies an investor may have or wish to use. The following are the most…
Head and Shoulders Pattern Traders and analysts constantly study trends and patterns when watching the market in hopes of detecting the next most probable price movement. Spotting and correctly identifying patterns and understanding their significance is vital to successful trading. The head and shoulders pattern is important because of its longstanding history of reliability among market…
How to Trade the Forex Market Whether you’re an individual trader or a financial or investment professional, the foreign exchange (forex) market, also known as the currency or foreign currency market, is where the money is. Forex trading amounts to approximately $5 trillion (yes, trillion, not billion) per day. By comparison, the approximately $700 billion…
How to Read Stock Charts If you’re going to actively trade stocks as a stock market investor, then you need to know how to read stock charts. Even traders who primarily use fundamental analysis to select stocks to invest in still often use technical analysis of stock price movement to determine specific buy, or entry,…
Investing for Beginners Here it is! – That thrilling (and insightful) guide to investing for beginners that you’ve been dreaming about finding all your life. Well, perhaps we’ll leave “thrilling” to your judgment. However, we are quite confident that you’ll become more than just a little excited when you learn the truth about the wide…
What is the TRIN Indicator? The TRIN indicator, also known as the ARMS index because it was developed by Richard Arms, is functionally an oscillator-type indicator that is primarily used to identify short-term overbought or oversold conditions in the stock market. It does this by comparing advancing versus declining stocks, along with advancing versus declining…
What is ADX Indicator? The Average Directional Movement Index (ADX) was developed by famed technical analyst Welles Wilder as an indicator of trend strength. As a commodity trader, Wilder developed the indicator for trading commodity futures. However, it has since been widely applied by technical analysts to virtually every other tradeable investment, from stocks to…
