The Frontiers Of Trading

by: Ivan Cavric Short-term day trading involves buying and selling securities within a single trading day. As a result, traders must be able to quickly identify trends and make informed decisions to maximize profits. In this fast-paced environment, using a moving average can be a helpful tool to assess market trends and make informed decisions. One of the most popular and effective moving averages used by short-term traders is the 6-period and 18-period smoothed moving average. This combination is considered the best because it strikes a balance between sensitivity and smoothness. The 6-period moving average is a highly sensitive indicator that can quickly detect short-term price changes. This is especially important for day traders who are looking for quick profits. However, a highly sensitive indicator can also lead to false signals, causing traders to make poor decisions. The 18-period moving average provides a smooth representation of the trend and eliminates short-term fluctuati...

by: Ivan Cavric Trading can be a challenging and complex endeavor, and even the most experienced traders can make mistakes. Here are seven of the biggest mistakes traders make, and how you can avoid making them: Not having a trading plan: One of the most common mistakes traders make is not having a clear trading plan. A trading plan should include your goals, risk management strategy, and a detailed plan for how you will enter and exit trades. Without a trading plan, you are more likely to make impulsive decisions and be swayed by emotions. Not managing risk: Risk management is an essential part of trading, but many traders ignore it. Without a proper risk management strategy in place, you are more likely to suffer significant losses. It's important to have a plan in place for when things go wrong and to have a stop-loss in place to limit your losses. Over-leveraging: Leverage can be a powerful tool, but it can also be dangerous if not used correctly. Over-leveraging your trades...

by: Ivan Cavric The Average Directional Movement Index (ADX) is a technical indicator used to measure the strength of a trend. It was developed by J. Welles Wilder and is a popular tool among traders and investors to determine whether a market is trending or ranging. In this article, we will discuss the basics of the ADX, how to use it properly, and some potential drawbacks to be aware of. First, let's define what is meant by a trend. A trend refers to the direction in which the price of an asset is moving. For example, if the price of a stock is consistently rising over time, it is said to be in an uptrend. On the other hand, if the price is consistently falling, it is said to be in a downtrend. A trend can also be flat or sideways, meaning that the price is not consistently moving in any particular direction. The ADX is a line on a chart that ranges from 0 to 100 and is calculated using the highs and lows of the past 14 periods (the time frame can be adjusted by the user). A rea...

By:  Ivan Cavric  It is said that nine out of every ten traders loose money. It is also said that day trading is seventy five percent psychology and the other twenty five percent divided up between your trading system and proper money management. Now I do not know if those facts are true or false. I have never seen a survey published on the topic, maybe someone can help me with that information, but let us assume that if it’s not absolutely true then it is nearly true. This would mean that most traders are lacking the proper psychology for trading.  Therefore we need to look very carefully at this business of our thought patterns, what we are thinking while we are trading. All our actions are governed by either pleasure or pain. Whatever we do, we do it to either to experience pleasure or escape pain. We have a need to avoid pain and a desire to gain pleasure. We need to do some introspection and decide what is it that drives us while we are trading, pleasure or pain. Do ...