My problem with using moving averages

One of the first things that traders learn when they are starting off is the technique of using moving averages. The statistical definition of one is “a succession of averages derived from successive segments (typically of constant size and overlapping) of a series of values.” Now, these are good if the price is remaining at…

Half term today, which means that I get to start trading!

So, for those of you that didn’t know, my parents only let me trade in holidays, one of which now has started! I have so far got an 8% return so far in 3 hours of Friday evening trading! I had almost forgotten how exhilarating trading could be until now. Keep following the page for…

Is it better to be conservative or reckless when trading?

When trading, there are some who are conservative, who look for the “perfect trade” which almost never comes. And then there are others who look at the tiniest changes in price and think “there we go, that’s my opportunity.” But which one is it better to be? The low volume, low risk trader or the…

The issue of ethics in trading

Investing in fossil fuels has become an issue of ethics lately, especially with the issue of global warming plaguing our world today. The financial issues that investors face have now become more complicated with the additional dimension of ethics involved too. Why do people think investing in fossil fuels is bad? They think that it’s…

Why I am uncertain about investing in oil companies right now

There is a sense of security that every trader has when they know that a stock has been trading around and about the price which it is now for a long time, perhaps a few months or years. But, in the case of oil, there is a complete lack of certainty around the market right…

A book review of Making Money From Trading by Cat Davey

Firstly, I would like to state that this book is one of the only ones that explore the emotional journey that a trader goes through, and it does it very well, with a “Waterworld” or “ego trade” a page. It perfectly captures the mental anguish one goes through when making a loss trading. So, on…

Why I find Forex to be harder to trade than commodities

To the regular person, Forex almost universally is regarded as the best way to get money quickly and simply. I feel that this is because of a lack of information – they are misinformed, if you will. Professional traders may come up with all sorts of reasons as to why Forex is hard to trade,…

The trader’s fallacy: “Buy low, sell high”

Whenever I hear people┬átalking about how they would trade if they had the chance, one sentence remains prevalent in all the conversations I’ve seen. “Buy low, sell high.” The problem with that is, what exactly is low? Oil at $70 could have been construed as low, and I seriously thought that that was it’s bottom….

Gaps: A trader’s worst nightmare or their best friend?

One of the biggest dreads I’ve had during my limited time as a trader is the fear of a stock gapping up or down. For those that don’t know what it is, “gapping” is when a share’s price either rises or falls severely when the stock market opens for the day. Why could this be…

Why trading is a harder job than people give it credit for

Now, I might not seem like I know much about this, being only 14 and all, but from my limited experiences of trading, it is not like the job that many people look at it as, with rose-tinted glasses. It’s all well and good that you can stay at home and work, but how far…

The importance of emotion in trading

First blog post! Yay! Let me start by introducing myself. I’m Shrey, I’m 14 years old and I have recently discovered a passion for trading, and, more broadly, finance in general. I’m in the process of setting up a club about the market in general in my school and have read 2 books so far,…