Kathy Lien or Mrs Kathy Trading, The Richest Female Forex Trader, Managing Director of FX Strategy with 20+ years of experience in financial markets, Internationally published author with many bestseller books in trading, Founding partner of NYC trading firm, BKForex LLC. She is highly recommended for beginners of Forex trading. Story of Mrs Kathy TradingKathy Lien better known as Mrs Kathy Trading currently lives in New York City. She graduated from New York University’s Stern School of Business.
At 18, Kathy Lien started working on Wall Street at JP Morgan and Chase. She owns the name Mrs Kathy Trading because of her excellent achievements in trading in general and forex trading in particular. She has more than 20 years of experience researching and working in financial markets. At the same time, Mrs Kathy Trading is also a founding partner of trading companies such as NYC, and BKForex LLC, with Boris Schlossberg – one of the few investment advisory letters focusing strictly on the 3 Trillion/day FX market.
Some notable achievements:
· Forex expert, Author, and CNBC contributor
· Author of best-selling forex trading books
· Frequently quoted in the Wall Street Journal, Reuters, Financial Times, Bloomberg, Associated Press, Marketwatch, AAP, UK Telegraph, Sydney Morning Herald and other leading news publications.
Mrs Kathy Trading (Kathy Lien) is the managing director of FX strategy
· Nationality: USA
· Social Networks: LinkedIn, Twitter
· Markets: Forex & Stocks
What are Mrs Kathy Trading’s remarkable experiences?Starting her career at the age of 18, Kathy Lien specializes in currency research. Her career began at JPMorgan Chase, where she worked on the interbank FX trading desk that created the foreign exchange markets. The latter is in the exclusive cross-market trading group where she trades spot FX, options, interest rate derivatives, bonds, stocks, and futures.
In 2003, Kathy Lien joined FXCM and founded DailyFX.com which is the leading online forex research portal. At the same time, Mrs Kathy Trading acts as a managing analyst who provides research and commentary on the forex market.
In 2008, she became director of currency research at Global Futures & Forex Ltd. Here, she provides research and analysis to clients and manages a global forex analysis team.
Kathy Lien Forex strategy (FX strategy)· Global Health Crisis
· NoReccession, Little Growth
· End of Monetary Easing?
· Return of Carry?
· Fed Controls Alls
· And more in Kathy Lien trading strategy…
Who is the richest female forex trader?If you want to know who is the richest female forex trader? Then that answer is Kathy Lien (according to Swaay’s rating). She is on the list of the top 5 most influential female forex traders today. Some of the next names can be mentioned such as Raghee Horner, Linda Raschke, Jennifer Fan, Abigail Johnson, etc.
To become a good forex trader, you should know how to best control your personal emotions. Don’t let worries, insecurities, or aggression keep you from making logical decisions.
Mrs Kathy is the top of the list Top 11 female trader
Kathy Lien Net Worth, Income, Salary, EarningsMrs Kathy Trading net worth report updated 2021:
Kathy Lien’s Income: Per Year: $400,000; Per Month: $32,000; Per Week: 8,000; Per Day: $1140
This post answered for :
· How did Kathy Lien get so rich?
· What is Kathy Lien Earning per day ?
· How much does Kathy Lien make per day?
· How much Kathy Lien Net Worth ?
Mrs Kathy Trading on CNBC
Article Course: https://libraryoftrader.net/mrs-kathy-trading
0 Comments
Moxie stock method is TG Watkins’s proprietary method created to read the profit potential of any stock. In addition, it also provides notable signals when the market has strong fluctuations. This article will also introduce you to What is the moxie indicator and moxie indicator rules. 1. What Is Moxie Stock Method?The Moxie Stock Method is a technical approach that help you keep track of stock moves and foresee the next movements. As a result, you can develop viable strategies based on valuable insights into the changes and reversals of market moves. How amazing can it be to pinpoint the next drop or peak of price actions? It will be your ultimate trading edge that serves as an unbeatable advantage. So, you can obtain and maintain consistent profitability. It is totally understandable that you still doubt its effectiveness, however. So, we would like to provide some detailed information of this method’s creator and some proven records of winning cases. Who Created The Moxie Stock Method?TG Watkins is the man behind the creation and development of the Moxie Stock Method. It is an idea coming up throughout his stock trading to smoothen and alleviate the whole process. We are all aware of the tumultuous price actions which are the nightmares of stock traders. Instead of letting himself drown in the chaos, TG Watkins made a step ahead when developing the Moxie Stock Method to support him of decoding the patterns of market moves. So, he could foresee what would happen before it happens! TG did not start trading as a professional trader at his tender age, but when he worked as a financial advisor for a while. The experiences of advising and consulting on others’ trades and investing offer TG chances to observe and learn the market cycles, the best practices, and common mistakes. It might have pushed him to get his feet wet with his first-hand experience as a full-time stock trader. Instead of abundant knowledge and experience as a financial advisor, TG Watkins did not bypass the fundamentals. The Moxie Stock Method by TG Watkins Thus, he looked for a professional education platform to learn and improve his trading knowledge and skills. And his mentors saw his potentials as he developed his own indicator and technical approach – the moxie indicator. Then, he developed his own trading education service – Moxie Trader for a few years until he met John Carter, the founder of Simpler Trading. TG Watkins is now among the most popular instructors at one of the large online instructional platforms. And his Moxie Stock Method is still one of the go-to courses for all stock traders due to its amazing features. Real Winning CasesTG Watkins applied this method to his trading and brought back the big gains of 21% and 8% on both daily and hourly charts, respectively. The records show TG’s 103% account growth and double gains in 14 moths, from $67k to $136k after the application of this tool! In the package of the moxie indicator, TG provided his trading charts and proven records of those phenomenal breakthroughs. Such information is helpful for in-depth analysis of real case studies. 2. What Is The Moxie Indicator?What is the moxie indicator? The Moxie indicator is a very useful tool in finding divergences. We can see the negative and positive energy inside the price clearly thanks to the Moxie indicator. Moxie indicator review shows the intrinsic strength of the market based on energy or momentum. The altitude above or below the line is considered the average air volume. The job of the Moxie indicator is to inform us when to close a trade, which reduces the investor’s chances of entering into the wrong move. This indicator works optimally in trending markets, letting you know when to stay away from volatile market times. In particular, the Moxie indicator will tell you what characteristics or signals a strong move will have. The color coding of the Moxie Indicator and the unique stair step provide traders with better visual cues to determine the strength and strength of a move. 3. The Moxie Indicator RulesMoxie Indicator Rules: Moxie AutoYou should buy when the Moxie Indicator™ crosses above the 0 levels and the 50 level – the price is above its SMA. And vice versa, you should sell when the Moxie Indicator™ is below 0 and the SMA is below 50. This rule shows that, if the price is below the SMA (50) and the Moxie is above zero, recovery is imminent. On the other hand, if the price is above the SMA (50) and the Moxie is below 0, a drop is possible and the trader is inclined to get out. Moxie Auto is available on all 5-minute, 2-minute, hourly, daily, and weekly charts. The 5-minute and 2-minute charts are commonly seen among day traders with the Moxie 15 Low indicator. Hourly, daily chart with Moxie 15 High indicator commonly used by long-term traders. Moxie Price Signals AutoThe Moxie Auto Price Signals Indicator appears together with the main Moxie Auto indicator. It overlays arrows on the price chart corresponding to the Moxie Auto indicator crossing above or below the 0 line to help identify entry and exit points more easily. The signal arrows are green when the Moxie Auto indicator crosses zero and red when it crosses below (colors are customizable). The Moxie Auto Price Signals Indicator overlays arrows on the price chart corresponding to the Moxie Auto indicator Moxie 15 High and Moxie 15 LowThe Moxie 15 High and Moxie 15 Low indicators have two Moxie lines instead of one. They indicate whether the strength of the signal is strong or weak. Appearing green lines and moving up but far apart is a weak signal. Conversely, if they are close to each other, it shows a strong signal. Moxie 15 High and Moxie 15 Low indicators can be added to the 15 minute chart. Moxie 15 High is slower but more powerful and is often paired with hourly and daily Moxie Auto indicator charts for swing trading. The Moxie 15 Low is more agile and commonly used for day trading, along with the 5-minute and 2-minute Moxie Auto indicator charts. The Moxie 15 High and Moxie 15 Low indicator bars are green when rising and red when falling (colors are customizable). The Moxie 15 Low appears green lines and moving up but far apart The Moxie 15 High appears green lines and is close to each other Many professional traders recommend using and researching this method because it is considered an accurate predictor of market ups and downs. We will update contents related moxie stock method in the next articles. Forex trading provides a chance to participate in a global economy with great potential. Because of its popularity among day traders, Forex has earned a reputation for producing rapid returns. To not only succeed, but to succeed consistently, you must first comprehend the market and then fine-tune your trading technique. 1. Fundamental definitions: Forex day trading system and strategies1.1. What is day trading?Day trading is the practice of opening and closing positions on the same day. Day trading tactics are more action-packed and need traders being at their trading station throughout the session to follow the live price charts. 1.2. What is Forex Day Trading System and Forex Day Trading Strategy?Forex day trading systems should not be confused with day trading strategies. The primary distinction between a system and a strategy is that a system specifies a trading approach, but a strategy is more descriptive and gives more precise information, such as entry and exit locations, indicators, and time periods. 1.2.1. How many types of Forex Day Trading Systems?
1.2.2. How many types of Forex Day Trading Strategies?The following are 5 of the most commonly used Forex Day Trading Strategies:
2. How do I determine if I am a Forex day trader?
3. How to start day trading Forex?
4. How do Forex Day Traders make money?Day traders use big amounts of cash to profit from slight price swings in highly liquid indices, equities, or currencies. In other words, these traders are not seeking for significant price falls and peaks. They are OK with little, moderate swings, but their transactions are greater and more frequent than those generated by traders who invest for longer periods of time. The primary goal of a day trader is to generate a large number of pips in a single day. Day traders should ideally earn profits on both asset highs and lows in forex day trader strategies. The entry in the various systems employ comparable tools to those used in conventional trading; the only variation is in the time and approach. 5. What are the most profitable forex trading strategy for beginners?After determining a time frame, the intended position size on a single trade, and the anticipated number of transactions you want to open during a specific time period, we'll go through three prominent Forex trading strategies for beginners that have shown to be profitable. 5.1 ScalpingForex scalping is a popular trading method that focuses on minor market fluctuations. This approach entails opening a huge number of transactions in the hopes of making tiny returns on each one. Hence, scalpers strive to maximize earnings by making a high number of minor gains. This method is diametrically opposed to remaining in a posture for hours, days, or even weeks. Because of the liquidity and volatility of the Forex market, scalping is quite popular. Investors are seeking markets where the price movement is continually shifting in order to profit from modest variations. 5.2 Day TradingThe process of exchanging currencies in a single trading day is referred to as day trading. Day trading method, while applicable in all markets, is most commonly utilized in Forex. This trading strategy suggests that you open and close all deals in a single day. To reduce risk, no position should be left open overnight. Unlike scalpers, who only want to stay in markets for a few minutes, day traders typically monitor and manage open deals throughout the day. Day traders produce trading ideas mostly using 30-minute and 1-hour time periods. Many day traders base their trading methods on breaking news. Scheduled events, such as economic figures, interest rates, GDPs, elections, and so on, have a significant influence on the market. 5.3 Position TradingPosition trading is a long-term investment technique. This trading method, unlike scalping and day trading, is primarily concerned with basic variables. Minor market swings are not taken into account in this technique since they have little impact on the overall market picture. To detect cyclical patterns, position traders are likely to study central bank monetary policies, political developments, and other fundamental variables. Successful position traders may only open a few transactions every year. However, profit goals in these trades are likely to be in the hundreds of pips range. 6. To sump up: Key highlights about Forex Day Trading Systems and Strategies
Source: https://libraryoftrader.net/the-crucial-guide-to-forex-day-trading-systems-and-strategies Is day trading worth it from 2022? Many people like day trading because of its high profitability, however, it’s not for everyone. Whether day trading is a good idea is a very controversial issue these days. Let’s analyze all the advantages and disadvantages of this type of trading! Is Day Trading worth it a Good Idea?Is day trading worth it? The essence of day trading Is that traders buy stocks at any time of the day and sell them before the market closes. This is a game that makes a profit based on the price movement of a stock in a day. Day trading is not a suitable investment method for the vast majority of traders. Those who participate in trading are often very easy to lose because they do not really understand the core rules of this market. Statistically, over 95% of day traders lose money but they continue to ignore losses. Depending on the trading platform you use and the type of security you are trading, you may also pay a commission every time you buy or sell a stock. These trading costs can be costly for day traders. However, to know if day trading is worth it, we need to learn about its two advantages and disadvantages Advantages
Disadvantages
Is Day Trading Profitable?Every job will benefit you if you work hard and take it seriously. The same goes for day trading. This is not a job for the weak to control their emotions. If you have a weak heart, it will be difficult to enter day trading successfully. Is Day Trading Gambling?Many people often compare day trading and gambling to two similar forms. Gambling is also about betting or investing money in a risky way. Meanwhile, day trading is also a form of waiting for luck, the market will increase in price according to your expectations. That is the common sentiment of most traders. Can You Make Money Day Trading?Profits from day trading are often uncertain. However, when a trader is able to accurately predict market volatility, he or she can make a profit of around 6 figures. Penny stock is the type of stock that traders tend to trade the most because of its large profit potential in day trading. On the other hand, many people still rely on luck like gambling. This is a very common situation among traders, supply is the main reason why they are most likely to lose money. How Risky Is Day Trading?Day trading is serious business and not something you just dive into, especially if you are using a leveraged investment strategy or trading leveraged products. Day trading is not for the faint of heart as it involves minute-by-minute decision making, as well as leveraged investment strategies that can lead to significant losses. What Is The Difference Between Day Trading Vs. Investing?Day Trading vs Investing are two different concepts? Investing is a broader term. It is a good form of profit from buying a stock or bond and holding them for a long time. Long-term investors usually don’t experience the emotional swings that affect their trading as most day traders do. If you create and maintain a portfolio of low-cost exchange-traded funds (ETFs) rather than day-trading, the ability to turn profits over a long period of time will be in your favor. Are Penny Stocks The Same As Day Trading?The answer is absolutely No! Penny stocks are the names of stocks that are worth less than $5. Day trading is a form of buying and selling stocks within a day. When real day trading, many people often focus on penny stocks. However, day trading is also possible with all other types of stocks. What Are Day Trading Taxes?When you buy a stock and then sell it on the same trading day, you can make money. But you also owe tax on the gain, which is the price at which you sold the stock minus the original purchase price. The Bottom LineIn general, answering “Is day trading worth it?” depends on your vision. Day trading is very easy to make money as long as you have enough knowledge and thorough research. Otherwise, it will also destroy your wallet in a split second by ignorance. Please follow and share this knowledge if you find it useful. Read more related articles to upgrade your trading knowledge! Article Source: https://libraryoftrader.net/is-day-trading-worth-it
Trading without financial markets knowledge is like going shopping without knowing where the mall is. Only when you answer the questions: what are financial markets and how do they work, can you master them for consistent profits. With this blog, we will have financial markets explained in the most easy-to-understand way to make sure you can start your trading career right and easily. What Are Financial Markets? – Financial Markets 101Financial markets can be confusing as they go by many terms. They are also called capital markets, Wall Street, and even simply “the markets.” In the simplest words, financial markets are where traders buy and sell assets. These marketplaces include (but not limited to) the stock market, bond market, Forex market, and derivatives market. They are vital for capitalist economies to operate smoothly. Understanding the Financial MarketsFinancial markets are vital to facilitating the smooth operation of capitalist economies by allocating resources and creating liquidity for businesses and entrepreneurs. They create securities products providing a return for those who have excess funds (lenders/investors) and make these funds available to those who need additional money (borrowers). To ensure that the markets set prices that are efficient and appropriate, financial markets rely heavily on informational transparency. The market prices of securities may not indicate their intrinsic value because of macroeconomic forces such as taxes. Pros of Financial Markets
Cons of Financial Market
Types of Financial MarketsIf you do some Googling, you might see different answers to “How many types of financial markets are there?”. Some say 5 financial markets, some others say 7 types of markets. In this blog, we will list down 8 types of financial markets based on their different instruments traded and their maturity. Capital marketThe capital market aids in raising long-term capital, generally over 1 year. It comprises a primary and a secondary market and can be divided into two main subgroups: The stock market and the Bond market.
A secondary market (a.k.a “aftermarket”) is the place where investors purchase previously issued securities like stocks, bonds, futures, and options from other investors, instead of issuing companies themselves. The secondary market is where the bulk of exchange trading takes place and it is what people are talking about when they refer to the “stock market”. Some well-known secondary markets to name are the NYSE and Nasdaq. Money MarketThe money market allows economic units to manage their liquidity positions through lending and borrowing loans on a short-term basis, generally under 1 year. It facilitates the interaction between those with temporary surpluses of funds and those who are experiencing a temporary shortage of funds. For easier understanding, via a standard instrument, one can borrow money within a quite short period of time, the so-called “call money”. After one day, from 12:00 PM today until 12:00 PM on the next day, these funds become “on call” and are callable at any time. In some cases, “call money” can be borrowed for up to one week. Foreign Exchange MarketThe foreign exchange market aids foreign exchange trading. With an average traded value of more than $5 trillion per day, it’s the largest, most liquid market in the world. It includes every currency in the world and any individual, company or country can participate in it. Commodity MarketThis market manages the trading in primary products which occurs in about 50 major commodity markets where entirely financial transactions increasingly outrun physical purchases which are to be delivered.
Derivatives MarketIt facilitates the trading of financial instruments such as options and futures contracts and is used to aid control financial risk. The instruments derive their value mostly from the value of an underlying asset such as stocks, bonds, currencies, commodities, or mortgages. The derivatives market is classified into two parts which are of completely different legal means and nature to be traded. Exchange-Traded DerivativesThese are standardized contracts (futures, call options, and put options) traded on an organized futures exchange. Trading in such uniformed instruments requires payment of an initial deposit from investors which is settled through a clearing house and aims at removing the risk for any of the two parties not to cover their obligations. Over-the-Counter DerivativesThese are tailor-made contracts privately negotiated and traded directly between the two parties, without using the services of an intermediary. Securities such as forwards, exotic options, swaps, forward rate agreements, credit derivatives, and other exotic derivatives are almost always traded this way. These contracts remain largely unregulated and provide the seller and buyer with more flexibility in meeting their needs. Insurance MarketThe insurance market is meant to relocate various risks. Insurance is used to transfer the risk of a loss from one counterpart to another in exchange for a payment. This market is where two peers, an insurer and the insured, or the so-called policyholder, meet in an attempt to strike a deal primarily used by the client to hedge against the risk of an uncertain loss. Why Are Financial Markets Important?Financial markets are vital for a healthy economy as it brings people together to create more values.
Who Are the Main Participants in Financial Markets?The main participants in financial markets include banks, primary dealers (PDs), financial institutions (FIs), stock exchanges, brokers, investment bankers (merchant bankers), foreign institutional investors (FIIs), custodians, and depositories. Article Source: https://libraryoftrader.net/financial-markets-knowledge
Financial Markets Advisory: Everything you should know You might have heard of financial markets advisory if you are into investments or financial planning. But what is it exactly? And how can we know when we need a financial advisor? What Is Financial Markets Advisory?
Financial Markets Advisory indicates the financial services of consulting on your financial planning based on your goals.
What Do Financial Advisors Do? Simply put, a financial advisor suggests the best ways to do with your money, such as investment, trading, etc. Their ultimate goal is their clients’ goal – gaining personal wealth.
A Financial Planning Partner
A financial advisor can accompany you in the process of financial planning. For example, if you want to retire in 20 years, you should have a thorough plan to back you up. It is not easy so you should ask a skilled professional with the right licenses to smooth these plans’ implementation and make your vision come true. An Educator
To gain your trust, a financial advisor should help you understand how the financial markets work, and explain all terminologies in the simplest ways.
Why Are Financial Advisors Important?
People now can take great advantage of the information era for research and self-learning. So, you can draw practical insights into personal finance management and financial planning from books, print media, websites, etc. There are some questions that can help you decide:
If yes is your answer to all the questions above, it will not be crucial to have the support of a financial advisor. Otherwise, professional help speaks its volume. Delegating or finding the best persons who do their jobs is the shortcut to managing your investments and financial planning!
Pros and Cons of Using The Financial Markets Advisory
Benefits
The previous section already covers the first and important advantage of hiring a financial advisor – decoding the complex theories of finance. It is extremely crucial for those who have been confused amidst the unpredictability of the financial world. Drawbacks
It is possible that you will meet up with scamming advisors. They can be excellent actors rather than real experts.
Conclusion
Financial Markets Advisory has been a popular service due to its great help. Yet, it still raises doubts and concerns due to scamming services. The key is to equip yourself with fundamental knowledge about financial investments and planning. Also, you should check the information of an advisor’s background to see whether they are capable or not. Source: https://libraryoftrader.net/financial-markets-advisory
It is safe to say that every financial planner is a kind of financial advisor. Yet, it is not right in the reverse order. So, how different are they, a financial planner vs. an advisor? Scroll down this article to have practical insights and find the answers by yourself! Financial Planner vs Advisor: What Are The Primary Differences?Financial PlannerA financial planner guides you or your organization to develop a strategy to reach their long-term financial goals. There are many aspects that a financial planner gets involved in, such as budgeting, saving, investing, and retirement planning. It is common sense that a financial planner has a full-time job at a bank, wealth management firm, or non-profit organization while assisting individual clients. Financial AdvisorA financial advisor assists a person to manage her money. It relates a broad range of aspects, such as investment management, stock buying or selling, tax planning, comprehensive estate plans, etc. TakeawaysThrough an overview above, you can spot some main points in the differences between a financial planner and a financial advisor. In this section, we will summarize the primary differences. Tips For Getting a Reliable Financial PlannerAs we have mentioned, you must research a financial planner’s credentials. The information under your consideration can be licenses and their experiences. Also, you should double-check their qualifications through the professional pieces of training they have joined. As a result, you can determine whether they are suitable for your needs or not. Financial planning fees are among the most important factors. Yet, many people bypass it when they research a financial planner. There are two common types of payment, including a one-time fee for the financial review or multiple fees per time of change or plan update. Are All Financial Planners Also Financial Advisors?Yes, all financial planners can claim themselves as financial advisors. Their job is to guide an individual or an organization to manage their money and plan out the future to reach their financial goals. It is a kind of advisory, so it is reasonable that every financial planner can be a financial planner. Who Can I Become a Financial Advisor or Planner?There is a wide range of backgrounds when you check the top financial planners. They can be investors, brokers, insurance agents, etc. So, it is safe to state that you do not need a specific prerequisite and base to become a financial planner. Before You GoA financial planner can be called a financial advisor while the reverse order needs much consideration. Financial advisory is a broader term as it relates to planning, investment management, wealth management, tax accounting, etc.
Although the description of a financial planner and a financial advisor overlap each other, this article points out some primary differences. So, you can better understand their jobs and decide which kind of financial services are more suitable for your needs. “A financial planner vs. an advisor: What are the differences?” is one of the blogs on Library of Traders. Browse our blog section to explore more interesting topics of trading and investing! Article source: https://libraryoftrader.net/financial-planner-vs-advisor What exactly is financial market volatility and why does it worry even the most seasoned traders? Introduction Financial market volatility is basically inevitable no matter where you are having your eyes on it. Although at first glance, a prolonged period of volatility poses an alarming phase for the market, it is actually profitable and is the key to some trading strategies, especially day trading ones that require drastic price fluctuations. What is Volatility Financial market volatility is observed and calculated as either variance or standard deviation between returns from the same asset within a period A lower volatility means that the value of a security does not fluctuate dramatically and therefore is more stable. It is essential that traders pay attention to volatility when choosing a market and making trades since it will be one of the key factors to the success of your trading plans. By understanding and analyzing volatility, traders can somewhat predict upcoming movements of the markets. Types of VolatilityWhen it comes to the types of volatility, we are talking about their measure process rather than just the state itself. Financial market volatility is generally divided into two different types: historical and implied volatility. While the historical volatility measure involves inspecting back at the past market prices within a series of time, the implied volatility measure means taking a look forwards into the near future with the help of technical analysis of past and current recorded statistics. Historical VolatilityHistorical volatility (statistical volatility), inspects the changes in underlying securities by measuring price fluctuations over predetermined time periods. Because it is not forward-looking, it is less common than implied volatility. Implied Volatility Implied Volatility (projected volatility) enables traders to forecast how volatile the market will be in the future by computing probability using given information and recorded returns. Implied volatility is derived from the price of the asset and represents the expected price fluctuation for the near future. They offer insightful information when carefully analyzed and treated as stepping stones for making further decisions. How is Financial Market Volatility Measured Financial market volatility is calculated by using the standard deviation from the price fluctuations over a time period, therefore enabling traders to see how much certain values differ from the average one, as VIX, to have a better understanding and insightful overview of the volatility state of the markets. VIX is a real-time market index that shows the expected values for volatility over the next 30 days. As it represents volatility, VIX has the same aspects such as rising when stock prices fall and vice versa. Investors utilize the VIX to gauge the risk and the fear happening in the current market and thus have more information to make decisions. The bearish trends of the markets can help you to get your hands on new assets with ridiculous prices. What to Do During Financial Market Volatility When high volatility strikes, and you wait for so long just to eventually exit at some point, you may never recover the lost values as well as miss out on the potential gains when the markets rebound back. When the situations get out of control, consider these approaches for making a better decision.
Source: https://libraryoftrader.net/financial-markets-volatility IntroductionUnderstanding essential financial trading terms is indeed one of the important, as well as the most basic, parts of the learning journey of every trader. Learning these most common financial trading glossary will surely help you remove the early language obstacles and pave the way for the success you deserve. Essential Financial Trading Terms (by Alphabetical Order)AAnnual ReportAnnual reports provide financial information to shareholders about the company they invest in. It contains insightful data such as the company’s cash flows and management strategies so that the traders can evaluate the business proficiency and financial situation of the company to make further investment decisions. ArbitrageArbitrage is the practice of buying and selling the same asset on different exchanges at different prices. If a stock is worth $20 on one exchange and $20.50 on another, you could buy it for $20 and sell it for $20.50 on the other while keeping the price difference as profit. BBar ChartA Bar Chart, also known as a ‘Bar Graph’, is a type of chart that demonstrates data using rectangular bars or columns (referred to as bins) that represent the total number of observations in the data for that category. A bar chart can be displayed with vertical columns, horizontal bars, comparative bars (many bars next to each other for easy comparison), or stacked bars (much detailed information about a bigger host). BetaBeta is used to measure the volatility of an asset in comparison to all markets in general – regarded to have a beta of 1. If an asset has a beta of a specific value, it means that it moves that many points for every one point move in the market, showing that the asset is more volatile than the market. CCandlestick ChartCandlestick chart is a technique for establishing a basis for a trade by technically analyzing certain pieces of information: the open and close prices, as well as the high and low prices for the period. Call OptionA call option is a contract that grants the buyer not the obligation but the right to purchase a specific asset at a specific price on a specific date. The value of a call option rises is also proportional to the price of the market asset. DDay TradingDay trading involves the simultaneous purchase and sale of assets on the same day, often online, thus aiming to make profits based on minor, short-term price fluctuations DeltaDelta, also known as a hedge ratio, is a metric used in trading to determine how the price of a contract changes when the price of the underlying asset changes. ANDEarning Per ShareEarnings per share (or just EPS) is a critical metric when determining a company’s earnings. It is calculated by dividing the total returns made in a given period by the number of shares listed on the stock exchange. EquityIn financial markets, equity refers to the number of shares owned by a company. When you buy assets from a company (shares, stocks, and the like) as an investor, you are purchasing an equivalent degree of ownership in that company. The financial markets are where these company assets (equity) are traded between investors. FFair ValueFair value is generally used to indicate the amount of money attributed to an asset, as well as the contract price (when it comes to options or futures trading) reflecting the price of the underlying asset. Fiat CurrencyA fiat currency is basically a that is not relevant to the price of a commodity, such as gold or diamond. Its value is mostly defined by its users (both national and worldwide) in the issuer (typically the government or the central bank of that country or just the country itself). Fibonacci RetracementA Fibonacci retracement is a popular technical analysis tool involving using percentages, horizontal lines, and price charts to determine potential levels of support and resistance. Knowing these areas can help traders decide when to open/ close positions and further strategies. GGDPGross domestic product, or GDP, is the sum of the value of the commodities and services generated in a nation during a given time period. It serves as a gauge for the size and strength of a nation’s economy. Gross MarginGross margin, often known as gross profit margin, is a metric for determining how much money a business has left over after deducting the direct expenses related to the sale of its products and services. HHedgeA hedge is a trade or an investment created to lower your current risk exposure. As a result, hedging is the technique of lowering risk through investing. High-frequency TradingHigh-frequency trading, also known as HFT, is a type of modern trading platform that utilizes cutting-edge processing technology (https://en.wikipedia.org/wiki/Automated_trading_system) (trading bots for instance) to quickly handle a large number of deals that a normal human is not capable of. It can also be used to do large-scale market research and identify potential trading opportunities. IIndexAn index is a benchmark that traders and investors use as a point of reference, for instance, the S&P 500 and the Dow Jones Industrial Average (the Dow). Indicator An indicator includes using one or a series of trading tools to assist make the market more understandable. For instance, they can confirm if the market is trending or range and provide specific market data according to the criteria of the users. LLeverageLeverage involves borrowing money from your broker to increase your profits. It is usually done to boost gains, but doing so also increases potential losses. LiquidityMarket liquidity, often known as liquidity, is a term used in finance to indicate how quickly traders make moves to their assets on the market (withdraw, deposit, buy, sell, and the like) without changing their prices. High liquidity usually results from high demand. MMarginA margin account is used to borrow funds from a broker to buy stocks or other assets. The margin is the discrepancy between the loan balance and the price of the security. Moving AverageMoving average is a technique that is usually utilized within trading tools for demonstrating the typical share price of a stock over a given time frame. NNet ChangeNet change is the difference between the closing price of the current trading session and that of the previous session. It reflects whether the markets were higher or lower than usual the day before, indicating positive or negative. Negative Balance ProtectionNegative balance protection involves the act of making sure that traders will not lose more than the balance in their account, even when high volatility strikes. OOptions Contract Unlike a futures contract, options contracts give the holder both the right, but not the obligation to buy or sell a specific asset at a specified price on a future date. Over The CounterOver-the-counter trades are executed electronically, thus there is less transparency than on the major exchanges. Small businesses, usually foreign corporations, that don’t meet the listing requirements for the major exchanges are the companies listed on the OTC marketplaces. PPortfolioA portfolio of a trader is a grouping of assets. It can contain a single asset (for instance, stock or bond) or a large number of other securities. PositionPosition refers to a trade that is either open (still available for business) or closed (already been closed). Only when a position has been closed can profit or loss on it be recognized. QQuoteA quote is the most recent trading price of a stock. Free stock quotes are typically delayed information. Real-time data might come with an additional cost. RRallyA rally is a sudden sharp rise in the price of an asset or the general pricing level of the market. It may be a bull rally or a bear rally, depending on the general situation. RangeThe range of a market is the difference between its highest and lowest price over a specific time period and is primarily used as a volatility indicator. A large range suggests price turbulence. SScalpingA scalp is when a trader opens and then swiftly closes a position in the hopes of making money off of slight price changes. SectorA sector is a collection of equities from the same industry. Some traders favor trading in a particular industry, particularly when that activity from that industry is strongly and heavily impactful. TTechnical AnalysisTechnical analysis is a method to analyze and forecast price changes in the financial markets by using historical price charts and market data. Its results can help traders deduct insightful information to make trading decisions. Time ValueTime value refers to the fact that the value of an asset is proportional to the remaining time until its expiration. The longer the period, the more the value. VVolatilityVolatility is the fluctuating state of the price of an asset. When high volatility strikes, the price can unpredictably make sudden changes to both directions within a short period. VolumeVolume is the total number of shares of stock exchanged in a given time frame, usually measured as the daily average. WWeekend TradingWeekend trading refers to a service that enables you to observe several markets over the weekend. YYieldYield, which is stated as a percentage, primarily refers to the return on investment for an asset. ConclusionUnderstanding above financial market terms may only be the beginning of your learning journey. Things will get even more complicated when tackling these words in a bigger context or a more technical-driven topic.
Article source: https://libraryoftrader.net/financial-trading-terms |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
October 2022
Categories |