What is Short Selling of Stocks and How Does it Work? Short selling of stocks refers to the practice of selling stocks that the investor does not own with the intent of repurchasing them at a lower price in the future. Short selling of stocks allows the trader to...
What is Amibroker and How Does it Work? Amibroker is a technical analysis and trading software platform that is designed to help traders analyze market trends, test trading strategies, and optimize their trading systems. It is popular among both professional traders...
What are stock market indices and how do they work? Stock market indices are tools that measure the performance of a specific group of stocks or the overall stock market. They can provide investors with a benchmark for the performance of their investments and can also...
Introduction to the ADX Indicator: What It Is and How It Works The Average Directional Index (ADX) is a technical indicator that is commonly used to measure the strength and direction of a trend in a financial market. Developed by J. Welles Wilder in the 1970s, the...
Relative Strength Index (RSI) Introduction RSI is short for Relative Strength Index. It is a technical analysis indicator (a Momentum Oscillator) that measures the magnitude of recent price moves to determine whether overbought or oversold conditions are present in...
Introduction to Technical Analysis Basics Technical analysis is an approach to analyzing stocks that uses charts and indicators based on price and volume. Traders can make profitable trading decisions using technical analysis indicators and chart patterns. I have been...
Introduction Moving Averages What is a moving average and what is it used for? A moving average is an indicator that used on your trading charts to help gauge the direction of the price movements. Moving averages are one of the most commonly used indicators in...
When your system gets a signal today and enters tomorrow, it’s a one day delay between the signal and the entry. If you do a backtest today just normally, the backtest won’t show you that there’s a new trade that needs to be opened tomorrow because...
If you got your trade tracking spreadsheet, you’ll know if you’re getting lots of slippage or not. If you’re getting lots of slippage, then think about using limit orders. Thus, you’ll know, for your account size, for the stocks you’re...
The key lesson is to make sure that you follow the calculations all the way through yourself manually so that you understand what the conversion should be and make sure that your position size is appropriate relative to your base currency account. For example, you can...
