Liquidity Crisis High levels of liquidity happen when there is both supply and demand for an asset, meaning transactions can take place easily. A market is considered to be liquid if it can absorb liquidity trades with significant changes in price. A liquidity crisis is, therefore, an acute shortage or drying up of liquidity. In simple terms, it...
Volatility Revisited Volatility is a measure of the range of price movement over a defined period on a specific timeframe on which any calculation is performed. It may increase or decrease dependent on market conditions and aims to provide the trader with an indication as to whether the range price movement in subsequent candles/bar is lik...
Success leaves clues, and over the years as an educator and coach, I can confidently say that there are several things that traders who achieve positive trading outcomes appear to do, that less successful traders are not doing. One of these is to have a daily agenda or habits that go alongside direct trading activities with the aims of getting...
It was another busy day for the Australian share market with a series of corporate results; namely for Asaleo Care, Crown, Cleanaway, Domino's Pizza, Fletcher Building, Fortescue Metals, Lovisa, McPherson's, Mount Gibson, McMillan Shakespeare, Nearmap, Seven Group, Sonic Healthcare, St Barbara, Stockland, Vicinity Centres, Wesfarmers, and Wise...
In the Australian share market, the focus remains on the earnings report. Most sectors were trading in negative territory with significant losses in the energy and information technology sectors. The technology sector was dragged by Altium Ltd. Altium is the world’s leading software company. It has helped a wide range of companies succeed in ...
The Australian share market struggled to rise into positive territory on Monday. Sectors performance was mixed, with Information Technology, Energy and Real Estate leading gains of more than 0.5%, while significant losses were seen in the Consumer Discretionary and Communication Services sectors. Brambles Ltd, Regis Resources Limited and QBE In...
Which safe-haven to choose in 2020 – Gold or the Mighty Dollar? In times of uncertainties – be it economical, political or policy-related, investors generally seek safety with haven assets like the US dollar, Japanese Yen, Swiss franc or Gold. Our attention today is on Gold and the US dollar, both of which have had an interesting start to...
The start of the year was marred by the escalating tensions between the US and Iran while extreme weather conditions across the global triggered fierce debates about climate change. What do we know so far about the tensions between Iran and the US? Iranian-backed militia killed an American Defense Contractor The US retaliated with missile...
It was a monumental year for two of the biggest electric car makers – Tesla and NIO in 2020. The stocks of both companies rose significantly over the last 12 months with NIO gaining over 1000% and Tesla by over 350% - reaching new record highs. With such gains, both companies have attracted significant public interest and a lot of investors h...
Warning: Turn your sensitivity meter down a little. This is a no sugar-coating, tell-it-how-it-is article (but rest assured it comes from a nurturing place). All over the globe, trading gurus attempt to sell their wares (software, the ‘holy grail’ of trade set ups etc) using retrospective charting examples. Such powerful visual “evidence�...
Trading Volume: General principles Many experienced traders (even those using a simple system will incorporate volume as part of their entry (common) and/or exit (less common) system. It is essential (as with any indicator) that you understand the role volume can and cannot play with suggestions of what is happening to marke...
We have discussed many times the importance of unambiguous, and sufficiently specific statements within your trading plan in previous articles and at the weekly “Inner Circle” webinars (for more information see the Inner Circle in the navigation bar). The benefits of this are twofold: 1. Assist in developing consistency in executi...
If we could describe the year 2019 in one word, we believe uncertainty says it all. The world entered 2019 with a high level of ambiguity and is poised to finish the year with the same extent of uncertainties. The Global Economic Policy Uncertainty Index which is a GDP-weighted average of national EPU indices for 20 countries has remained in ele...
At the recent Finanxingcoin Daryl Guppy seminar, we had a presentation from Daryl that covered both an insightful economic outlook as well as some of his technical trading approaches. During the seminar, a question was asked about how to match the two. i.e. if you have an economic idea how can you integrate this into your trading style. ...
Thursday’s OPEC meeting will be a decisive one for the oil market. OPEC members and its allies (OPEC+) will gather on the 5th and 6th of December for the 177th meeting of the OPEC conference. This producer’s summit is likely to be heavily influenced by the upcoming Saudi Aramco’s IPO. OPEC+ Politics The rising tensions in the Middle East...