Looking at market internals is like looking under the hood of a car. From outside the vehicle, you can see a lot. If the car is making odd noises, if smoke is emitting from the exhaust pipe, and so on. But to know what is going on with the engine, you have to pop the hood. The same is true of the stock market.
Backtesting is the testing of a trading strategy against historical data. Backtesting intends to test the statistical validity of a trading strategy. While the practice has various flaws and biases, it can provide you with additional confidence in your strategy and serve as a simple way to quickly test out any ideas about price behavior you may come up with.
Oil makes the world go around. This probably is a revelation to no one. Ever since we started pumping black gold out of the ground in the mid-nineteenth century—mankind just can’t get enough of the stuff.
Don’t be fooled by all the glitz and glamour of the high-flying Wall Street jet setters you see in the media. Success in this business does not happen overnight. A great deal of work goes into being a good trader. This week, the Topstep coaches are here with some tips and resources to help you get started trading.
As usual, the financial media is lambasting millennials, but this time, they’re mad that millennials are finally dipping their toes into the stock market. Until recently, millennials have remained skeptical of markets, likely due to the pivotal role that the GFC played in their early lives.
Most of us start our trading journey with stocks. It’s the most obvious choice because it’s the only financial product that most of the general population understands. Our parents might have owned shares, we learned about stocks in our high school economics class, and we’re familiar with many of the largest companies in the stock market like Apple, Google, and ExxonMobil.
This article is not going to be the reinvention of the wheel. Instead, I will articulate some very fundamental principles that could be critical in your trading improvement. Perhaps you are struggling and finding yourself in many losing trades, then many of the points of this article will be worthy of your consideration.
The SierraChart platform alone has about 400 technical indicators, with hundreds more available to purchase from third-party vendors. Beyond the realm of technical indicators, you can use other securities or indexes as an indicator for the security you’re trading.
The best performers in the world all rely on routines. They are not winging it. Tom Brady, a five-time Super Bowl-winning quarterback, and four-time Super Bowl MVP, goes to bed every night at 8:30 PM. He reportedly wakes up at 5:30 AM to get to work watching game film and working out.
Financial markets are an endless two-way auction, where the price is discovered through the negotiation of buyers and sellers. The stock and futures markets, like any market, exist to facilitate trade. As a result, markets seek to reach a state of balance, where there is a relative agreement between buyers and sellers.