By Marketiva.com on March 5th, 2010
Traders often chat with one another about a variety of topics related to financial markets, giving their perspectives and discussing trading ideas and current moves on the markets. While communicating with each other they often use slang to express their thoughts in a shorter form. Some of the most popular slang is listed below.
Asset Allocation: Dividing instrument funds among markets to achieve diversification or maximum return.
Bearish: A market view that anticipates lower prices.
Bullish: A market view that anticipates higher prices.
Chartist: An individual who studies graphs and charts of historic data to find trends and predict trend reversals. Continue reading →
By Marketiva.com on March 5th, 2010
Controlling risk is one of the most important ingredients of successful trading. While it is emotionally more appealing to focus on the upside of trading, every trader should know precisely how much he or she is willing to lose on each trade before cutting losses, and how much he or she is willing to lose in trading account before ceasing trading and re-evaluating.
Risk will essentially be controlled in two ways: by exiting losing trades before losses exceed your pre-determined maximum tolerance (or “cutting losses”), and by limiting the “leverage” or position size you trade for a given account size. Continue reading →
