Trading Resources

Forex Trading

Basic Fundamental Analysis in Forex

Wed, 02/04/2008 - 00:38

Learn about the basics of fundamental analysis in Forex

Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.

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CFD Trading

International Share Trading using CFDs

Sat, 29/03/2008 - 01:13

Stock brokers offer services which allow share trading international stocks. But there are rules and limitations that restrict which companies we can invest and trade. What differences are involved if I were to use CFDs to trade international shares?

Using CFDs are a great way for international share trading. You will be able to easily access and trade a wide range of international shares, stocks and other securities with one trading account with the CFD provider. You can choose to trade any markets around the world as they open and close. From the beginning of the day you can follow the active trading hours of New Zealand and Australia, Asia (China, Singapore, Hong Kong, Japan, etc...), European (Frankfurt, etc...), UK and finally the US and Canadian stockmarkets.

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CFD's

International Share Trading using CFDs

Sat, 29/03/2008 - 01:13

Stock brokers offer services which allow share trading international stocks. But there are rules and limitations that restrict which companies we can invest and trade. What differences are involved if I were to use CFDs to trade international shares?

Using CFDs are a great way for international share trading. You will be able to easily access and trade a wide range of international shares, stocks and other securities with one trading account with the CFD provider. You can choose to trade any markets around the world as they open and close. From the beginning of the day you can follow the active trading hours of New Zealand and Australia, Asia (China, Singapore, Hong Kong, Japan, etc...), European (Frankfurt, etc...), UK and finally the US and Canadian stockmarkets.

Slippage in CFD Trading

Wed, 26/03/2008 - 22:14

I’ve read about Slippage, and how does it happen in CFD Trading?

First of all, what is slippage? Slippage means that your order has been filled at a different price compared to the price on your order ticket. The amount of slippage is the difference between the initial order price and the price at which the order was filled.

How do you know that slippage is happening in your account? Take note of your original order price and match it with your actual executed order price. Also, research stock forums for other users who have had problems with slippage with CFDs. If you had any problems with slippage, leave a comment below.

What is "Requote" mean in CFD Trading?

Wed, 26/03/2008 - 22:13

I’ve been requoted while Trading CFD’s. What does that mean and why does it happen?

A requote in terms of CFD trading means that these is a deficiency of liquidity in the underlying equity so the CFD trader had to be requoted the remainder of the position that was executed in the buy or sell ticket.

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Trading Psychology

Is Trading Gambling?

Tue, 01/04/2008 - 22:03

Is Trading Gambling
Have you as a trader questioned whether your trading is a gambling operation or a business proposition? Find out if trading is gambling.

Is trading gambling? It’s a question that’s bound to pop in your mind if you’re an active trader in the markets. Trading seems like gambling. You risk a portion of your capital into this thing: this concept we call a market. You put in your money and your money can do one of three things: return you an increase in capital, return you the same amount or return you less. Very similar to putting in money into the slot machines and getting those returns isn’t it? So are traders gamblers or not? Let’s examine it.

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Shares

Broker and Analyst Recommendation Primer

Mon, 07/08/2006 - 15:26

We will look at what these broker and analyst recommendations actually mean: Overweight, Underweight, Sell, Buy, Reduce...

In the Broker recommendations section you may find some analysts or brokers recommending certain stocks listed on the Australian Stock Exchange (ASX). Some may say they are Overweight or Underweight on a stock while others will claim a stock will Outperform. Some others may actually give instructions like Sell, Buy or Reduce. We will have a look at what these broker and analyst recommendations actually mean.

What is Share Trading?

Tue, 02/05/2006 - 02:29

Marco tries to answer the simple question: "What is Share Trading?"

What is share trading? Of course you may say - the answer is simple: "Share trading is the activity of actively trading shares in the view of making a profit". Simple wasn't it? Well, case closed, we can all go home now. Well, I want to probe into what share trading really is in reality, not some non-sensical theory that seems impractical in the real world. Sure, the laws of supply and demand rule the markets, but what I want to discuss is what share trading means to the retail trader: traders like you and me.

What is the Most Traded Stocks with the Highest Volumes on the ASX?

Thu, 19/01/2006 - 12:41

I often ask the question - which shares are being traded the most in the ASX sharemarket? Why? Because it reveals liquidity

I often ask myself the question - which shares are being traded the most in the ASX sharemarket? Sometimes I use the local teletext services that you can access on your TV box for this information - if you point it to page 200 you'll get the financial index. The shares with the most traded shares with the highest trade volumes (not necessarily highest net worth) that day reveal the level of liquidity of the stock as well as the most actively traded stocks. The significance of this is simply that as a trader you should be aware of what the neighbours are doing but this doesn't mean you should join in with the crowd - Just to be aware of what the market is and perhaps recognise the activity as a result of some news or market information.

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Frequently Asked Questions

How can I trade in share market

Wed, 14/11/2007 - 13:40

Trading and Investing are two different things.

How can i trade in share market? I can invest up to $1,500 for six months?

Trading and Investing are two different things. Trading should be a long term thing. Although your trades are in the short term, there is always a possibility of loss - you can't always win. And that's the inherent risk in trading.

So if you need the money back in 6 months, just put it your bank account.

But, if you treat trading seriously and professionally, it can pay off... Of course profits are never guaranteed.

What is a Basis Point?

Mon, 17/07/2006 - 14:20

Definition of a Basis Point: A commonly used financial jargon in describing interest rates or forex trading price movements

In financial terms, a basis point is one percent or one hundred pips. For example, having a quote of 1.3493 EUR/USD - to move one basis point the currency would need to increase by 100 pips. So a move from 1.3493 to 1.3593 would be a move by one basis point.

What are Pips?

Mon, 17/07/2006 - 14:18

What is the definition of a pip? A term commonly used on forex trading

In forex trading, a PIP is the abbreviation of "Price Interest Points." Most traders measure their forex trading profits by counting pips. One pip is one-hundredth (1/100) of one percent (1%) of a currency contract price. For example, if the AUD/USD currency pair was to move by one pip the price movement could be from 0.7483 to 0.7484.

Is Share Trading Gambling?

Wed, 03/05/2006 - 00:18

Marco tries to Answer Whether or Not Share Trading is Glorified Gambling or a True Profession?

Is share trading a gambling activity? The Australian Pocket Oxford Dictionary defines gambling as to 'play games of chance for money'. It also defines gambling as to 'risk much in the hope of great gain'. Now, old George doesn't think share trading is gambling. In that post, he says, "You used technical indicators to tell you that the balance of probability lies in your court and if it doesn't - well you must quickly initiate risk management and cut losses." A statement that contradicts our dictionary definition. So some people classify share trading as "glorified gambling." Well, if you stick to the genuine definition of gambling, share trading IS gambling. Personally, I was in denial with this for a long time. Every time someone brought up share trading and gambling I would refuse to believe it was. But surely there's more to this argument...?

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