The Importance of Volume In Technical Analysis For Forex Trading
Though we have said that technical analysis focuses on price and volume, we have said relatively little about the role of volume so far. Volume is simply the number of contracts traded over a given period of time usually one day. The higher the volume, the more active the forex trading. Analysts look at the [...]
How To Use Technical Analysis in Forex Trading
We have already seen that the fundamental principles of technical analysis in forex trading are: – markets discount everything. All of the relevant information is already incorporated in the price and only knowledge of price movements is necessary to successfully predict the future trend of prices. – prices move in patterns or trends. Prices can [...]
Technical Analysis and its use in Forex Trading
We had earlier seen why it is necessary to analyze forex market movements and to use this information to predict future price trends. We have also looked at the first major tool of market analysis known as fundamental analysis. Now we will consider the second major tool which is technical analysis. Technical analysis is the [...]
Forex Markets: Behavioral Finance & the Psychology of Forex Trading
Hank Pruden, who formulated the theory of behavioral finance, says “For the better part of 30 years, the discipline of finance has been under the thrall of the random walkcum efficient market hypothesis. Yet enough anomalies piled up in recent years to crack the dominance of the random walk.” and goes on to add “Behavioral [...]
Why You Should Trade ETF’s and Exactly How You Can Do It.
An ETF is a unique investment that combines features of stocks and index funds. Like stocks, they can be traded any time during the trading day on a stock exchange. Like index funds, they represent an investment in a pool of financial assets or securities that mimic the performance of a specific index. Here are [...]
Money Market ETF’s – A Brief Explanation to Money Market ETF’s
As interest in ETF’s has skyrocketed, issuers have hurried to expand the scope of products to every conceivable asset in the investment universe. Many investors have gone past the stage of regarding ETF’s as a supplement to equities and bonds and have now adopted all ETF portfolios and techniques such as ETF Trend Trading. With [...]
Inverse ETF’s
An exchange trading fund (ETF) sells investors an interest in a pool of securities such as equities, bonds, currencies or commodities, not unlike a mutual fund. Unlike a mutual fund however, an ETF trades like equity on a stock exchange which means it can be bought and sold freely during trading hours, margin trading can [...]
How to Create an All ETF Investment Portfolio…
Because of the zooming popularity of ETF’s, issuers are rushing to create ETF is that incorporate virtually any financial asset that you can think of. Let us recall that ETF’s are baskets of financial assets or securities in which you can buy a share. They have the liquidity and the trading characteristics of equities, lower [...]
High Yield ETF’s – Everything you need to know…
As we all know, an investment in an Exchange Traded Fund (ETF) offers an instant measure of risk diversification as it represents an interest in a pool of financial assets or securities. This helps particularly when you are planning to invest in an asset where the risk is higher than normal. One particular security in [...]
Are Exchange Traded Funds (ETFs) The Best of All Worlds?
An Exchange Traded Fund (ETF) is an investment fund that trades on one or more stock exchanges much like a stock. It can therefore be bought or sold on the relevant stock exchange at any time of the day. An ETF also mimics a mutual fund in that it offers you a share in a [...]
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