Equity markets are known to be trending in nature over the years. With capital flows, investments, and economic expansion, developed world equity markets tend to go up by time thus compensating investors for the risk they are taking and the liquidity they are providing. This article will discuss a technical tool used to determine and follow the trend by showing showing an example on the S&P500 index.
Volatility is an important part of trading. It is related to risk but also in some cases, opportunity. This article will show how to use volatility to get a directional bias in the equity futures market. Volatility analysis is both quantitative and psychological in nature because it uses complex calculations to understand the level of fear and greed in the market.
The futures market offers opportunities either through trading or analysis. We can find interesting insights from the futures markets which help us understand market sentiment. The COT Report This article will discuss a report referred to as the Commitment of Traders, a weekly market sentiment publication by the Commodity Futures Trading Commission. Market sentiment is Read More…
There is no doubt that risk management plays a vital role in trading; it arguably separates successful traders from unsuccessful ones. Incorporating risk management in trading helps to eliminate bad trading habits such as fear, greed, clinging to losing trades, etc., and helps prevent you from losing most if not all your trading capital. There Read More…
It’s no secret that trading can be a stressful endeavor. Regardless of how well you do your research, how great your strategy is, or how thoroughly you’ve analyzed the market, you’ll face tough decisions and may be prone to make mistakes in your trading. The good news is that that’s how you learn and improve. Read More…
To an untrained eye, high-performance traders may seem like divine entities who can turn a profit at the snap of their fingers. There’s an illusion that they never lose or have losses so insignificant that they never put a dent in their wallet. The truth is that even high-performance traders lose. They don’t have a Read More…
