Bollinger bands are used by stock traders to determine overbought and oversold levels in the markets. Bollinger bands consist of two trading bands moving above and below a moving average. When using these bands you will see a center line which is either the exponential moving average or the simple moving average (depends upon personal [...]

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Trading volatility; an investing method typically employed in stock option trading, measures the risk of an option over time. In theory, the chances of an instrument’s price being further out from the current price increases over time. Thus, the volatility must be taken into account when selecting an option trade.
Three CBOE volatility indexes
1) The [...]

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Margin trading, also referred to as “buying on margin” is the borrowing of money from a broker in order to purchase stock, or other securities. Margin trading provides stock investors with the ability to buy more stock than he or she would normally invest through the use of a margin account. In fact, once you [...]

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Paper trading is what many new investors do when they are first learning to trade. Whether they are learning to trade stocks, options, commodities, or other financial instruments, paper trading is a smart way for new investors to learn from their mistakes before losing actual money. Paper trades are trades that are tracked on paper [...]

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More investors are turning to candlestick charts for determining market direction. See this week’s audio/video review!
Average session recording is approximately one hour and requires Windows Media Player installed on your computer. If you do not have this, Click on Windows Media Player and choose “Download Now” BEFORE you try to download your free video.
If this [...]

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Spread trading is used in technical analysis and it is when you take a long and a short position at the same time, in order to make a profit. This profit comes from the “spread” which is the difference between the “bid” and the “ask” price. The “bid” is the offer that is made by [...]

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There are two types of separating lines that we will discuss today. These include the bullish and the bearish separating lines.
Bullish separating lines are lines that move in opposite directions and act in the exact reverse manner as the meeting lines pattern. In order to qualify there must be a significant uptrend in progress and [...]

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More investors are turning to candlestick charts for determining market direction. See this week’s audio/video review!
Average session recording is approximately one hour and requires Windows Media Player installed on your computer. If you do not have this, Click on Windows Media Player and choose “Download Now” BEFORE you try to download your free video.
If this [...]

continue reading.....