Build Your Trading IQ

Basics, building blocks & resources for new traders

Candlestick Charting: Legend of Munehisa Homma

By | April 17, 2019

father of the candle candlestick trading charts

Among the legendary figures who shaped the trading world is Munehisa Homma, known in his time as the “god of the markets.”

Originally a rice merchant from Sakata, Japan, Munehisa Homma became an expert rice futures trader at the Dojima Rice Exchange in the 18th century. He was widely known among fellow traders for his success and earned the nickname “the god of the markets” while accumulating a rumored net worth of $100 billion in today’s US currency.Read More

Fundamental Analysis for Futures Trading

By | April 9, 2019

Fundamental analysis is an evaluation of financial, economic and geopolitical factors surrounding a security in an attempt to determine where the price might be headed. While fundamental analysis is often mentioned in reference to stocks, it can also be applied to futures contracts.

In contrast with technical analysis which analyzes historical price activity and uses a chart-based mathematical approach, fundamental analysis incorporates micro and macroeconomic variables, industry financial conditions, and other tangible considerations which can influence the price of a security. These are known as “the fundamentals.”Read More

200-Day SMA: Why Use a Simple Moving Average?

By | April 3, 2019

The widely-followed 200-day simple moving average (SMA) is considered by many market speculators to be a key barometer of long-term trend strength. Most commonly used on daily charts, the 200-day SMA smooths out price action and helps traders focus on the current price in relation to an average price over time. Read More

Forex Trading Pairs: Major, Minor & Exotic Pairs

By | April 2, 2019

Forex, also known as FX, refers to the foreign exchange market where international currencies are traded.

Global forex trading is decentralized, meaning that financial centers around the world serve as “hubs” for forex transactions. This collective collaboration with participants across the globe speculating on foreign currencies allows forex to be traded 24 hours a day Monday through Friday.Read More

Options on Futures: Which Contracts Are Most Active?

By | April 1, 2019

First introduced in the 1980s, options on futures are leveraged trading derivatives of futures contracts. Futures options contracts afford owners the right to buy or sell a futures contract at a particular price before a specified expiration date.Read More

Coming Up Short: The First Known Short Sale

By | March 18, 2019

When discussing the speculation of a trading vehicle, participants are often classified as “longs” or “shorts.” Longs anticipate the price of a security to increase, while shorts would like to see a decline in price. What exactly is shorting and when was it first executed?Read More

Forex Trading 101: Key Terms for New Forex Traders

By | March 12, 2019

The foreign exchange market, also known as forex or FX, is a global marketplace where currencies are speculated and traded.

For example, if you have traveled and exchanged your currency for the local one, you have effectively taken part in a forex trade!

Forex is one of the most active markets in the world, drawing consistent volume daily from international participants. The added flexibility of being able to trade forex 24 hours a day, 5 days a week provides ripe opportunities for FX traders.Read More

Options on Futures: What Factors Impact an Option Premium?

By | March 8, 2019

Options on futures, or futures options, are similar to stock options except that the underlying instrument is a futures contract. A futures option consists of the right but not obligation to buy or sell a particular futures contract at a specific price and before a certain date.Read More

Tips to Manage Workspaces in NinjaTrader

By | February 28, 2019

NinjaTrader workspaces allow users to create, save and access custom platform layouts quickly.

A workspace is a collection of windows in NinjaTrader which includes charts, settings, technical indicators and drawing objects. Users may employ multiple workspaces for different asset types, strategies, time frames and more.Read More

Why Trade Forex? 3 Reasons Traders Choose Forex

By | February 19, 2019

The global forex market is one of most active trading marketplaces in the world allowing traders to buy, sell, exchange, convert and speculate international currencies. Read More