Trading Strategies, Psychology

Trading Strategies, Psychology

Understanding the US Dollar Index

The U.S. Dollar Index (USDX, DXY, DX, or, informally termed “the Dixie") is a measure of the value of the United States dollar relative to a basket of foreign currencies. It is often used as an indicator of the overall strength or weakness of the U.S. dollar in the foreign exchange market.  Changes in the index value reflect shifts in the rel...

August 16, 2023
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Bid-Ask Spread explained: What Traders Need to Know

The bid-ask spread is the difference between the highest price a buyer is willing to pay for an asset (the bid) and the lowest price a seller is willing to accept to sell it (the ask or offer).  This spread is a fundamental element of market liquidity and represents the transaction cost that traders need to consider when entering and exiting po...

August 14, 2023
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From Data to Dollars: An introduction to Quantitative Trading

Quantitative trading, often referred to as quant trading, is a trading strategy that relies on the use of mathematical models, statistical analysis, and data-driven approaches to make trading decisions. Often associated with the creation of specific automated trading systems, terms Expert advisors (EAs) on MetaTrader platforms, it a perceived as a ...

August 14, 2023
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How to optimise your dividends and maximise your returns?

What is a dividend?   A dividend is a payment made by a company to its shareholders to give back some of its profits or return. Dividends are most often paid to shareholders, annually, semi-annual, or quarterly. Non annual dividends that are paid periodically are known as interim dividends.  Companies can also pay dividends at their dis...

January 20, 2023
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Why you need to understand this market concept to improve your trading: Market Correlation

Why you need to understand this market concept to improve your trading: Market Correlation For new traders and experienced traders, it can be daunting trying to find the best assets to trade. Whether it be equities, foreign exchange or indices, traders should be trying to have as many factors pointing in their favour as possible when entering a ...

December 21, 2022
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What are corporate actions and why you need to be aware of them?

Corporate actions are activities that material effect an organisation and impacts the key stakeholders including shareholders and creditors. They can affect the stock price both in good and bad ways. Corporate actions are most often determined and voted on by the board of directors of the company. Although sometimes, shareholder will be given the c...

December 16, 2022
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How to use a trading a journal to reduce your learning curve

As a new trader, riding the emotional ups and downs can be a very difficult task. It is human nature to feel the pain of a losing trade. The losing often outweighs the positive feeling of any winning trade. Dealing with the emotion of trading can be an incredibly difficult task. It can cause even the best system to fail. A trading journal especiall...

December 6, 2022
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How to use Arbitrage trading to increase profits

How to use Arbitrage trading to increase profits   Professionals in finance like to use hard to read and complicated language to make what they do much harder and more complicated than it sounds. However, when it comes to arbitrage, it is actually a relatively simple concept that can be used in trading, to develop an accurate system that...

December 1, 2022
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How to trade in low volatility conditions

The market in recent months has created exceptionally difficult conditions to trade. Low volatility and obscure price action has reduced the volatility available for traders to capitalise on. These conditions have affected FOREX, Equity, and Index trading. It has been specifically difficult for momentum and trend following traders as a certain leve...

November 23, 2022
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What is mean reversion?

Mean reversion strategies are some of the simplest trading strategy’s used by sophisticated traders. However, when most traders hear the term, they immediately get confused. So, what is mean reversion and why do traders use it as a strategy?   Mean reversion is the tendency for the price of an asset to move back to its long-term averag...

October 18, 2022
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How to maximise your trading strategy using Relative Volume?

  For new traders, it can be difficult to know which indicators to use, the saturation of various moving averages, RSI’s, MACD’s and more can be overwhelming and counterproductive. However, utilising relative volume, as an indicator is one of the most important sources of information for technical traders.   What is Volume? Vo...

October 13, 2022
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What are Bonds and how do you trade them?

Maturity, Yields, Par Values and Coupon payments. These are words that everyone has heard of but not many have a good understanding of what they mean. In this article all these complicated terms will be explained. Please note that while this information is most relevant for physical bonds, it is still important to understand when dealing with CFD...

September 28, 2022
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How to develop a good training plan?

Trading FOREX, equities, commodities, and any other asset can be an emotional rollercoaster. With so many different emotions and external factors difficulties impacting a trade, it is crucial that before any trade is executed a trading plan is produced to minimise the impact of the ‘noise’.     Generating the Idea   ...

August 25, 2022
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Results are in – NVIDIA reports

Results are in – NVIDIA reports NVIDIA Corporation (NVDA) announced its second quarter results after the closing bell in the US on Wednesday. The US technology giant reported revenue that exceeded analyst expectations at $6.704 billion for the quarter vs. estimate of $6.699 billion. Earnings per share reported at $0.51 per share, narrowl...

August 25, 2022
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Is there further pain in store for Bitcoin?

The recent price action of the Bitcoin suggests that the leading cryptocurrency may be ready for another sell off. Since last November when the currency peaked it has seen a sharp decline with retracements along the way. With inflation and recessionary pressures prevalent short-term volatility remains high as the market determines how to price the ...

August 24, 2022
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