Tuesday, December 22nd, 2009 at
6:00 pm
Many of the common charts encountered in the toolkit of Forex traders are composed of a graphed series of technical indicators. So, in order to understand those charts, the student of Forex investing will do well to study those indicators.
Fortunately, it isn’t necessary to know exactly how to calculate them in order to use them. Software will do that for you. But, it’s helpful to have some idea of how they are arrived at, and what they mean, in order to evaluate their Read More
Tuesday, December 22nd, 2009 at
5:59 pm
There are more kinds of risk than there are investments, since every instrument carries several kinds. But risk isn’t inherently bad. Without it there’d be fewer opportunities for profit.
The fundamental risk, of course, is price uncertainty. No one knows for sure whether GOOG (the symbol for Google stock) will be higher tomorrow or lower.
Options, like futures or bonds, carry an additional risk – at some point, from a day to several months or years, they Read More
Tuesday, December 22nd, 2009 at
5:49 pm
The terms ‘options’ and ‘futures’ appear together often enough to confuse even knowledgeable traders into thinking they are the same thing. But, while they have important similarities, options and futures are distinct trading instruments.
An option is a contract conferring the right to its buyer to purchase an underlying asset at a fixed price (the ’strike price’). The right – not the obligation. A futures contract, by contrast, obligates the Read More