Quick Reads

Trading Indicators: Trading indicators are mathematical calculations based on the price, volume, or open interest of a security or a currency. These calculations are used by traders to make informed decisions about buying or selling assets. Common indicators include moving averages, Bollinger Bands, and Relative Strength Index (RSI).

Types of Trading: There are several types of trading including day trading, swing trading, position trading, scalping, and algorithmic trading. Day trading involves opening and closing positions within the same trading day, while swing trading involves holding positions for a few days to a few weeks. Position trading involves holding positions for a longer period, often several months or more. Scalping involves taking advantage of small price movements in a short period, while algorithmic trading involves using computer programs to make trades based on specific market conditions.

There are several types of investing including value investing, growth investing, dividend investing, and passive investing. Value investing involves buying undervalued stocks with the expectation of realizing their true worth over time. Growth investing involves investing in companies with high growth potential. Dividend investing involves investing in stocks that pay regular dividends, while passive investing involves investing in a broad market index and holding for the long-term.

There are several products that can be traded including stocks, bonds, commodities, currencies, and derivatives. Stocks represent ownership in a company, bonds are a form of debt issued by companies or governments, commodities are raw materials such as gold, silver, or oil, currencies are traded on the foreign exchange market, and derivatives are financial instruments whose value is derived from an underlying asset.