Tag Archives: mechanics

Thin holiday markets and new year volume pick-up

The following two questions came in from one of my newsletter subscribers in regards to comments I …

Influences on Price/Earnings Ratios

The Price/Earnings ratio (P/E) is a metric commonly used in fundamental analysis of stocks – both individually …

The Cost of Trading

Last week I wrote a post for the Currensee blog addressing a recent SmartMoney article attacking forex …

How Markets Can Fall Without Actually Trading

One of the things many market participants fail to realize is that prices do not require transactions …

Market Makers and Opening Gaps

I received the following email from a trader named Ben. I do have a question regarding the …

Price Movement Causality – Not What You Might Think

I saw the following statement made on the BabyPips site: Forex charts are nothing but a chart …

Where does forex leverage come from?

A question was posted on BabyPips which occurred to me as being something readers here might wonder …

Some Not-So-Great Tips for Using Stop Orders

Stock Trading to Go posted 10 Great Tips For Using Stop Loss Orders Successfully the other day. …

Hedging One Forex Pair with Another

TheÂ hedgingÂ topicÂ often comes up in forex forums. One recent example was a trader who likes to trade GBP/JPY …

When I trade, where does the money go and come from?

I received an email the other day with some questions that may seem very basic to most …

Misunderstanding the Bid/Ask Spread in Stock Trading

It’s been my experience that many people don’t really understand how the bid/offer spread plays a part in all markets, including the one for stocks. This post looks to remedy that.

Liquidity, Fed Action, and all that Stuff

There’s been a ton of talk in the markets recently about liquidity. We heard about the Federal …

The Zero Sum Game

The topic of the zero sum game came up recently in a forum discussion in which I …

Where do prices come from?

Want to understand where the prices you see coming across your trading platform come from? The blog post should help clarify things for you.

Stop-hunting is NOT the problem some people say

A topic that comes up a lot on forex discussion forums is “stop hunting”, though it isn’t …

Losing more than your initial account balance

A question came up recently on the topic of whether you could lose more than your initial …

Let me talk spreads for a minute or two

I want to take some time to talk about the spread, speciifically, the bid-offer or bid-ask spread. …