There are many free learn to trade resources online and their are countless numbers of paid courses. Are any of these worthwhile?
The term Contract is used by some Spread Bet and CFD brokers to denote the unit size of an underlying market. Forex markets usually have a Contact Unit size of $100,000. Traders need to know how to convert Contracts so that they know exactly how much they are risking on each trade.
The term Tick is the smallest possible price movement of a market to the right of the decimal point. Ticks prior to market decimalisation were 1/16 of a dollar. CFD and Spread Bets brokers do not generally use Ticks and most markets will move in either Points or PIPS. The term Ticks is still used …
The term Point is the smallest value of a market to the left of the decimal point. Index markets are usually priced in points. With CFD and Spread Bets brokers this usually the smallest value that is traded. Generally, we use the term Points when trading Index markets because brokers of these markets price the …
In trading we use the word “risk” often. Here it’s important to understand that we are defining risk as the amount risked per trade – this is the full amount lost if the stop is hit.
The term PIP stands for a Point In Percentage. It is the smallest value of a market to the right of the decimal point. With CFD and Spread Bets brokers this usually the smallest value that is traded.
The best trading strategy for nearly all traders is Support and Resistance. A great deal of research has been done with successful traders and a future article will look more in detail about what we can learn from these traders. Suffice to say the most common trait is that they invariably did not use “advanced” …
What is the best trading strategy for a beginner? Read More »
The best trading strategy is one that fits within your trading personality and your personal social restrictions. This nearly always requires you to choose a flexible strategy that you can adapt to your circumstances. Each of us has an individual trading personality, this is something that we develop over time and through our individual experience …
What is the best Spread Bet and CFD trading strategy for me? Read More »
In our Master Trader training series, we explain the “Secret to Successful Trading”, and it’s too much of a spoiler to give you the short version now: its understanding and accepting a loss. It’s definitely, absolutely not finding a “Holy Grail” strategy. There is no such thing. You become a trader when you accept this fact.
To turn a losing trading strategy into a profitable one you will need to answer a number of questions about the trading strategy in question. By looking at the records of your individual trades and the market price action (charts) at the time, you may be able to change the trade entry parameters or the …
Adding to a winning trade can significantly increase profits. This should be done only if the market has a valid trade strategy set-up at the addition point.