The Frontiers Of Trading

by: Ivan Cavric The Commodity Channel Index (CCI) is a momentum-based technical indicator that was developed by Donald Lambert in 1980. It is a versatile tool that is used to identify cyclical turns in commodities, stocks, and other financial instruments. The CCI is based on the idea that prices tend to remain within an average range, with deviations from this range being an indication of an uptrend or a downtrend. The CCI measures the number of standard deviations that the current price is from the average price. When the CCI is above 100, it indicates that the price is above the average and could be overbought. When the CCI is below -100, it indicates that the price is below the average and could be oversold. To calculate the CCI, Lambert first identified the typical price of a commodity by adding the high, low, and closing prices and dividing the sum by three. He then calculated a moving average of the typical price and used it to determine the average deviation from the typical pr...

  By:  Ivan Cavric According to most marketing campaigns, Forex trading should be a breeze and you should quickly acquire a small fortune in no time at all. Unfortunately, reality does not support this viewpoint and indicates that a far more scientific and structured approach is essential in order to achieve consistent success. In fact, most professionals would advise you similarly in that you need to adjust your thinking about Forex trading so you can elevate it to the same levels used by experts.  To achieve success at Forex, you fundamentally need to complete a sequence of consecutive successful Forex trades as often as possible. What does that really mean and is it difficult? Let us try and answer these questions by considering the following analysis. For each trade you open, consider that you will need to target an achievable profit of 50 pips that may require you to trade, on average, for about 4 hours. In addition, you will then need to obtain a consecutive sequenc...

  By:  Ivan Cavric      As already stated, you will need to be able to use leverage in order to acquire worthwhile profits. However, you must proceed with caution because the poor utilization of leverage could expose your account balance to excessive levels of risk. For instance, some Forex Brokers offer leverage as high as 400:1. Although this sounds impressive and very desirable, you must appreciate how to exploit such a facility accurately before trying to use it in full earnest. Here are some important features about leverage that you must be fully aware of: Always remember that using larger levels of leverage also increases your risks significantly. It is important to monitor your account balance regularly and utilize stop-loss orders on all your open positions in order to restrict your risk exposure. Although using stops is good practice, you must still understand that you will increase your risk exposure significantly if you start leveraging in a reckless...

  By:  Ivan Cavric Many novice traders have gambling mentalities which they have acquired from other pursuits such as horse racing. They mistakenly believe that they can transfer their winning strategies from those activities easily across to trading. Some even think that trading should be easier because it does not comprise uncertainties such as a horse breaking its leg or falling ill.          If you identify with this mindset then you must get rid of it as quickly as possible otherwise you will suffer severe financial losses trading. This is because although trading may appear to be a simple two-way bet from initial perceptions, it is in fact a very complex entity. You can gain an understanding of this feature if you realize that the financial markets have an astonishing daily turnover. The question you need to ask is what on this planet is capable of generating such a massive amount of money. The answer is the combined trading actions performed by ...