Online Trading Articles
Below are individual articles regarding online trading. We've grouped them categorically, and added a brief introduction to each article to help you find what you're looking for. We believe you'll find a tremendous amount of useful information and trading insights contained in these articles. Bookmark this page and check back often because we are constantly adding new material. If you'd prefer to be notified when we have new trading articles, just sign us using the form below and we'll keep you up to date.
General Trading Articles
Trading Money Management - Money management is one of, if not the most critical components of any successful trading plan. Yet, it's something that many traders overlook. If you fail to properly manage your risk, your odds of making money over the long term are greatly diminished. read more >>
The Five Fatal Flaws of Trading - Close to ninety percent of all traders lose money. The remaining ten percent somehow manage to either break even or even turn a profit – and more importantly, do it consistently. How do they do that? That's an age-old question. While there is no magic formula, one of Elliott Wave International's senior instructors Jeffrey Kennedy has identified five fundamental flaws that, in his opinion, stop most traders from being consistently successful. read more >>
Options Trading Articles
Why Most Options Traders Lose Money - The number one reason why most options traders fail is they rely solely on market timing for success. If you're using options simply as a leveraging tool to make more money on the predicted movement in a stock or index, you'll have many trades go in your favor and from time to time you'll experience fantastic gains. However, if you're simply buying calls or puts based on what you expect the underlying stock to do, your odds of long term success as an options trader are very limited. read more >>
With Options Trading, Time is Money - The old adage that time is money holds particularly true when trading options. That’s why it’s very important to understand how theta works, and the affect it has on an option price. Theta is the Greek letter used to represent the impact of time on an option’s value. All options lose value, as they get closer to expiration. However, the rate at which an option contract loses value is primarily a function of how much time remains until expiration. read more >>
How Implied Volatility Affects Options Prices - Have you ever bought an option, had the underlying security move the direction you hoped, and still lost money on the trade? If so, chances are you owned an option contract that saw a drop in its implied volatility. Implied volatility is an important component in the price of an option, and understanding how it affects the price of a contract can make the difference between making and losing money on a trade. read more >>
Stock Trading Articles
Popular Culture and the Stock Market - Both a study of the stock market and a study of trends in popular attitudes support the conclusion that the movement of aggregate stock prices is a direct recording of mood and mood change within the investment community, and by extension, within the society at large. read more >>
Introduction to Exchange Traded Funds - Exchange Traded Funds, or ETFs, are index funds that trade just like stocks on major stock exchanges. If you want to invest in the market quickly and cheaply, ETFs are the most practical vehicle. They help the investor focus on what is most important…choice of asset classes. read more >>
Technical Analysis Articles
Using the MACD Histogram as a Technical Indicator - The convergence and divergence of moving averages can be a very powerful technical indicator. The MACD (Moving Average Convergence/Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. read more >>
Trading Psychology Articles
The Three Phases of a Trader's Education - Aspiring traders typically go through three phases in this order: Methodology The first phase is that all-too-familiar quest for the Holy Grail – a trading system that never fails. After spending thousands of dollars on books, seminars and trading systems, the aspiring trader eventually realizes that no such system exists. Money Management So, after getting frustrated with wasting time and money, the up-and-coming trader begins to understand the need for money management, risking only a small percentage of a portfolio on a given trade versus too large a bet. Psychology The third phase is realizing how important psychology is – not only personal psychology but also the psychology of crowds. read more >>
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