TRADING SKILLS & ESSENTIALS

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The Spinning Top A spinning top is a toy that consists of a hollow, conical shape made of wood, with a small amount of weight attached to the top. When the top is spun, it wobbles and spins on its axis, maintaining its angular momentum. Physics of the Spinning Top: Angular Momentum: The spinning top […]

Speculation is a type of financial activity that involves making predictions about the future price of an asset or commodity, often through the use of derivative instruments or other leveraged financial instruments. It can be contrasted with hedging, which involves taking a position to protect against potential losses in the value of an asset or […]

Sure, the word “upside” has a meaning of the opposite of the word “downside.” Definition: Upside: The upper or upper side of something. Upside-down: The reverse of something, with the top part at the bottom and the bottom part at the top. Example sentences: The coin is on its upside. The tree is upside down. […]

Definition: A counterparty is a party who enters into an agreement or transaction with another party. In other words, it is the other side of the transaction. Examples: In a contract between A and B, B is the counterparty to A. In a loan agreement between a bank and a borrower, the borrower is the […]

Beta Risk Beta risk is a measure of the volatility of a security or portfolio. It quantifies the extent to which the security or portfolio’s returns move in synchronization with the returns of the overall market. Formula: Beta = Standard Deviation of Security Returns / Standard Deviation of Market Returns Interpretation: Beta greater than 1: […]

The tide is a periodic rise and fall of ocean water caused by the gravitational pull of the Moon and Sun. This phenomenon is also called the tidal force. Causes of the Tide: Gravitational pull: The Moon and Sun exert a gravitational pull on the water on Earth. This pull causes the water to move […]

A warrant is a legal document issued by a magistrate or judge, authorizing a law enforcement officer to conduct a search or arrest. Types of Warrants: Search warrant: Authorizes law enforcement officers to search a premises for evidence related to a crime. Arrest warrant: Authorizes law enforcement officers to arrest a person for a specific […]

Price Discovery Price discovery is the process of determining the equilibrium price of a good or service in a market. It is the process by which buyers and sellers interact to establish the price at which the quantity of a good or service that buyers are willing to buy is equal to the quantity that […]

Morning Star Pattern The morning star pattern is a candlestick pattern that signals the possibility of an upcoming uptrend. It is characterized by three candlestick patterns: First candlestick: A small green candlestick that opens slightly above the previous day’s close. Second candlestick: A larger white candlestick that closes above the first candlestick’s high. Third candlestick: […]