Tag Archive for: Tips for beginner traders
Portfolio diversification is the investors’ Holy Grail
Portfolio diversification is one of the most useful skills of a professional investor since the goal of diversification is reduction of the portfolio risks while preserving the yield. One of the most famous popularizers of the idea is the legendary investor Ray Dalio, who calls diversification the Holy Grail of investing. In this article, we […]
Options hedging. How to reduce risks?
Hedging in general is a strategy used by investors for reducing risks of holding one position through opening the second position. If we speak about options contract hedging, it is the limitation of risks through opening the second position in the options market. In this article, we will explain how to use options as a […]
Futures hedging. How to hedge risks
Hedging risks with futures. Not only major companies but also traders and investors should think about it. Hedging is insurance, which is available to all. Read in the article: What is hedging? Advantages of hedging. Difference between diversification and hedging with futures. Hedging with futures. Conclusions. What to do in practice?
Pre-market. Specific features of trading USA stocks
American company stock novice traders know that the US stock market is open from 9:30 until 16:00 Monday-Friday Eastern Time (holidays excluded). But they may not know that stocks are also traded before the main session opening at 9:30. This period of time is called ‘pre-market’. The present article aims at getting acquainted with this […]
Hedging currency-related risks
What does hedging currency risks mean? In simple words, this is when a financial market participant performs an operation to insure himself against a possible negative influence, which can be exerted on his other operations by the currency exchange rate change. For example, when a US investor buys stock of an American company, denominated in […]
How to analyse the market and develop a trading plan
Why to analyse the market structure? Very often traders are in a hurry to start trading. Besides, the existing variety of trading systems and indicators will always give a signal for trading. However, you shouldn’t hurry in this business because opening a trade against the current market moods will, most probably, be loss-making or have […]
