Trading

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 […]

Definition: Underwater is a term used to describe anything that occurs beneath the surface of the water. It is a term used in various contexts, including: 1. Geography:– Underwater landscapes, such as the seafloor, coral reefs, and canyons.- Underwater features, such as mountains, canyons, and underwater caves. 2. Marine Biology:– Marine ecosystems, such as kelp […]

Cash equivalents are short-term, highly liquid investments that can be easily converted into cash. They include: Money market funds: Funds that invest in highly liquid debt instruments, such as Treasury bills and commercial paper. Certificates: Deposits in banks or savings institutions that offer a fixed interest rate for a set period. Treasury bills: Government securities […]

Definition: Clearing is the process of removing unwanted items or substances from a space or object. It involves sorting, organizing, and discarding or disposing of items based on their relevance, usefulness, or necessity. Types of Clearing: Spring Cleaning: A comprehensive cleaning of living spaces, including dusting, vacuuming, mopping, and rearranging furniture. Moving Preparation: Clearing out […]

Proprietary Trading Proprietary trading, also known as prop trading, is a type of trading strategy where financial instruments are traded exclusively for the profit of the firm, rather than for clients. Traders who engage in prop trading are employed by the firm, rather than acting as independent investors. Key Characteristics of Proprietary Trading: Firm-owned: The […]