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Spot Forex
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An investment which involves the
simultaneous buying of one
currency and selling of another
and executed in currency pairs. It
operates on a 24 hour basis through
an electronic network of banks,
corporations, and individuals.
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Spot Commodity
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An investment which offers traders
the opportunity to profit from the
rise and fall of commodity prices
around the world. Most popular
commodities offered with huge
supply and demand factors such as
oils, metals, soft commodities & grains.
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Spot Index
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An investment which allows you to
profit on the overall movement of the
whole stock market by buying and
selling its stock index.
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Other CFDs
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An investment which allows you to
participate and profit in the price
movement of an underlying share
of any major global stock market
without any share ownership involved.
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Fund Management and
Fixed Income
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An investment managed by a
team of experienced seasoned
fund managers which gives periodic
income at regular intervals at a
reasonably predictable levels.
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MONEY MANAGEMENT AND TRADING
GUIDELINES
- Trade in the
direction of the intermediate trend.
- In uptrends,
buy the dips; in downtrends, sell bounces.
- Let profits
run, cut losses short.
- Always use
protective stops to limit losses.
- Don't trade
impulsively; have a plan.
- Plan your work
and work your plan.
- Use money
management principles.
- Diversify, but
don't overdo it.
- Employ at least
a 3 to 1 reward-to-risk ratio.
- When pyramiding
(adding positions), follow these guidelines,
- Each
successive layer should be smaller than before
- Add only to
winning positions.
- Never add to
a losing position.
- Adjust
protective stops to the breakeven point.
- To prevent
margin calls, make sure total equity is at least 75% of total margin
requirements.
- Close out
losing positions before the winning ones.
- Except for very
short-term trading, make decisions away from the market, preferably when the
markets are closed.
- Work from the
long term to the short term.
- Use intra-day
charts to fine-tune entry and exit points.
- Master
inter-day trading before trying intra-day trading.
- Try to ignore
conventional wisdom; don't take anything said in the printed media too
seriously.
- Learn to be
comfortable being in the minority. If you are right on the market, most people
will disagree with you.
- Technical
analysis is a skill that improves with experience and study. Always be a
student and keep learning.
- Keep it simple;
more complicated isn't always better.
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