The tried and true formula for successful sales, "buy low, sell high," applies equally to financial markets. Traders use various types of transactions to achieve this, including short positions (betting that the price will go down) and long positions (betting that the price will go up). These strategies are commonly referred to as "short" and "long" in professional circles. This article will explain the meaning of these terms, their purposes, and how they work.

One person wants to save for retirement 25 years. Another wants to invest in various instruments for no longer than a year. These investors have different goals and investment timing, which means different market behavior. To avoid placing in rash positions, everyone needs an investment strategy. In this article, we will consider what that is and learn popular types of investment strategies.

ETF funds may become a good alternative to stocks for those who have just turned their attention to earning on the stock market. We have decided to find out what ETFs are worth choosing, how much can be earned from them, and what are the pros and cons of these investments. What Is an ETF? To assemble a portfolio of various securities, the average investor may need a lot of funds. Because many stocks are interesting to invest in, but they are quite expensive.

Almost all experienced traders of the forex market agree that it is necessary to set stop losses in any style of trading. Beginners, newcomers to the market, often neglect this rule, but with time they also come to understand it (or they simply stop trading because of the constant losses). Let's try to figure out why a Stop Loss is so important for successful trading and sustained profits.

Beginning investors who come to the stock market are inevitably confronted with terminology that is new to them. An accurate understanding of this vocabulary makes it possible to quickly understand the principles of the investment mechanism and learn how to make all necessary calculations without errors. In general, for a beginner investor to start meaningful actions it is enough to assimilate a limited set of the most important concepts, which includes the investment horizon.

The past year has brought many worries to investors. All three major stock market indices - the Dow, S&P 500, and Nasdaq - fell hard. The bond market hasn't been left out either if you look at the Bloomberg AGG index. Overall, 2022 is a dismal episode for the major stock and bond indices. Lingering COVID problems, unrelenting inflation, and Fed rate hikes have done their dark work. In 2023, many of the problems are certainly not going anywhere.

An inside bar can be part of an extremely effective price action strategy. However, the effectiveness of the inside bar is highly dependent on the market context. In other words, the inside bar by itself is not a working trading setup. We need to see additional factors that tell us that the potential profit is worth the corresponding risk. And that's not always easy, because you have to consider several components at once.

According to the statistics, not more than 10% of traders manage to become profitable on the long-term horizon and practically 90% of traders do not use any definite strategy in managing their funds. These figures mean that modern traders lack experience and few of the majority think about what money management is, which eventually leads to the loss of the invested funds in the long term. The economists along with other traders, scientists, and financiers urge all investors not to forget how important money management is in trading.

As we know, forex trading is a very risky business. In other words, a trader can lose capital, if the market rate changes to an unfavorable side. However, the threat of financial losses in trading cannot be totally ruled out. To receive earnings and minimize possible losses the corresponding risks need to be managed properly. Thus, risk management plays a critical role in trading on the currency market. It is necessary to find out what risk management means when it comes to trading on the forex market.

Have you ever wondered how to generate income trading stocks? If so, it's a very good question. After all, stocks are one of the best ways to build wealth and passive income. Oddly enough, despite this, many other people are afraid of the stock market and hesitate to start investing. They are afraid of the myths that investing in stocks takes a lot of time and capital.