TRADING SKILLS & ESSENTIALS

Retrocession Retrocession is the act of relinquishing a possession or right back to its original owner or previous holder. It is the reverse of accession, which is the act of acquiring a possession or right. Examples of retrocession: A landlord who receives notice from a tenant that they are moving out and returns the premises […]

A cover letter is a document that introduces you to a potential employer and provides a brief summary of your qualifications and interest in the position. It is typically one page long and is written to a specific job opening. Essential Elements of a Cover Letter: Heading: Includes your name, full address, and date. Salutation: […]

Systematic Risk Systematic risk, also known as market risk or undiversifiable risk, is the risk that affects the entire market or a particular sector and is beyond the control of individual investors. It is often associated with macroeconomic factors, global events, and changes in interest rates. Key Factors Affecting Systematic Risk: Interest Rates: Interest rate […]

The sinking fund method is a financial technique used to accumulate funds for a future expense or liability, such as the cost of equipment replacement or a debt payment. It involves setting aside a fixed sum of money at regular intervals to cover the future expense in advance. Key principles of the sinking fund method: […]

Common Stock Trading Terms Every Trader Should Know: Basic Terminology:* Bid: The highest price a buyer is willing to pay for a stock.* Ask: The lowest price a seller is willing to accept for a stock.* Market Maker: A company that actively buys and sells a stock to provide liquidity and stabilize prices.* Day Trader: […]

A stopped order, also known as a trailing stop-loss order, is a type of conditional order in which you specify a price level at which you want to sell a security if the price reaches that level. It’s a popular order type among day traders and investors because it allows you to lock in profits […]

Sensitivity refers to the degree to which a person or system responds to changes in input or stimuli. It is a measure of how much output changes in response to changes in input. Definition: Sensitivity: The ratio of change in output to the change in input. Sensitive: Highly responsive to changes in input. Insensitive: Not […]

Trading Skills Essentials 1. Market Analysis: Understanding market fundamentals and technical analysis Analyzing price charts and indicators Identifying patterns and trends Assessing supply and demand dynamics 2. Trading Strategy Development: Defining trading objectives and risk tolerance Selecting trading tools and platforms Developing trading rules and criteria Implementing a trading plan and sticking to it 3. […]

The phrase “stem the tide” means to prevent something from happening. It metaphorically refers to controlling a wave (tide) before it reaches the shore. Example: “The government took action to stem the tide of inflation.”

Price Action Price action is a fundamental analysis technique that studies the movement of a security’s price over time, without considering any other factors. It is based on the principle that the market is efficient and that all available information is already reflected in the price of a security. Key Concepts of Price Action: Support […]