Trading
Risk Neutral
Definition: Risk-neutral refers to an individual who is indifferent to risk, meaning that they do not experience any changes in utility as a result of changes in risk. This implies that their decision-making process is not influenced by the potential outcomes of an investment or event, as they are not affected by the variability of […]
Bollinger Bands
Bollinger Bands is a technical analysis indicator that measures the volatility of a security’s price movements within a certain time frame. It consists of three lines: the middle line represents the moving average of the security’s price, and the upper and lower bands are calculated at a certain number of standard deviations from the moving […]
Accepting Risk
Risk acceptance is a fundamental concept in probability and decision-making that involves acknowledging the potential for loss or failure while choosing to proceed with a course of action. It involves understanding the risks involved, weighing the potential benefits and costs, and making a conscious decision on whether to take the chance. Key Principles of Risk […]
Trading
Trading Trading is the act of buying and selling financial assets, such as stocks, bonds, commodities, currencies, and options. It involves making a series of predictions about the future prices of assets and acting on those predictions by buying or selling them. Types of Trading: Day Trading: Buying and selling assets within the same day, […]
Dual Commodity Channel Index (Dcci)
The Dual Commodity Channel Index (DCCI) is a technical analysis indicator that measures the relationship between two commodity prices. It is constructed using two Commodity Channel Indexes (CCIs) for two different commodities, with the two CCI lines plotted on a single chart. Formula: The DCCI is calculated as follows: Formula for the first CCI: CCI_1 […]
Current Price
The current price is the price of an asset or commodity at a particular point in time. It is a dynamic figure that is constantly changing, and is usually quoted in terms of a specific unit of currency. Examples: Factors that affect current price: Examples of current price quotes: It is important to note that: […]
Stock Trading
Definition: Stock trading, also known as equities trading, is the process of buying and selling stocks, which represent ownership in publicly traded companies. Traders can engage in stock trading through various platforms, including online brokers, financial advisors, and trading apps. Key Participants in Stock Trading: Types of Stock Trading: Factors Affecting Stock Prices: Benefits of […]
Top Trading Techniques & Strategies Traders Should Know
1. Candlestick Patterns:– Identify candlestick patterns like candlestick patterns, hammerheads, and double tops/bottoms to predict trend direction and potential support/resistance levels.- Use candlestick patterns in conjunction with other technical indicators for confirmation. 2. Moving Averages:– Employ moving averages, such as simple and exponential moving averages, to smooth price fluctuations and identify trend direction.- Use moving […]
Beneficial Owner
A beneficial owner is the person who ultimately owns and controls the assets of a company or other legal entity, even if they do not formally own the assets in their own name. In other words, the beneficial owner is the person who benefits from the assets of the company or entity. Here are some […]
Relative Strength
Relative strength is a concept in strength training that describes the relative load a weight or exercise exerts on a muscle group compared to the weight or load that the same muscle group can handle. Formula for Relative Strength: Relative Strength = Weight/Max Load x 100% Where: Interpretation: Examples: Benefits of Relative Strength: Applications: Note: […]
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