Wall Street loves to label stuff. When markets are rising it’s a “bull market.” Conversely, falling prices are a “bear market.” Interestingly, while there are some “rules of thumb” for falling prices such as: A “correction” is defined as a decline of more than 10% in the market. A “bear market” is a decline of more than 20%. There are […]

Even the experts have yet to agree on a consistent definition. For instance, the United Nations (UN) the classifies countries as either developed economies, economies in transition, or developing economies, although it doesn’t specify its basis for applying these groupings other than that they “reflect basic economic country conditions.” The International Monetary Fund (IMF) , on […]

A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. On the subsequent day, trading above the pivot point is thought […]

William Delbert Gann is a considerable financial markets analyst who is among the world’s most famous traders.William Delbert Gann was born on June 6, 1878, as the son of a farmer, in Lufkin County, Texas. Gann, who lived between 1878-1955, gained world fame with the analyzes he made. William owes his knowledge of commodity markets […]

My two investment rules: Rule one, never lose money. Rule number two, never forget rule one. – Warren Buffett Buffet, who started to earn money at a very young age by following his father’s footsteps, was born in 1930. The future of this rich man, whose father was also a stockbroker, was actually clear from […]

Market Order A market order represents the most basic type of a trade order and implies buying or selling a security at the current price. Securities are bought at the ASK price and sold at the BID price. If the trader needs to get into or out of a trade, a market order is the most reliable […]

After the Word War II as part of the framework of the Marshall Plan to rebuild the Western Europe the Organization for European Economic Co-operation (OEEC) was established in 1948. Headquartered in the Chateau de la Muette in Paris, it aimed to coordinate and supervise the aid mainly from the US. It was comprised of 18 members. […]

Morgan Stanley Capital International (MSCI) indexes are one of the most globally followed benchmarks of the stock markets. They include more than 80 countries from developed, emerging and frontier markets, covering 99% of investable opportunities. Indexes are weighted by market cap and created following the Global Industry Classification Standard (GICS). Created in 1968 it represents […]

Purchasing Managers Index (PMI) is the leading indicator of the economic growth and directions of the economic trends. It is derived from the survey of private businesses in specific sectors. The index is published monthly and observed by various market participants. The Institute for Supply Management (ISM) publishes the indexes for the US, interviewing 400 companies in […]

Risk reversal is an options trading strategy used to hedge risk. The strategy protects against adverse movements but at the same time limits potential profit. A trader buys one option and other write depending on a position in underlying. Income from the written option can outweigh the premium paid for buying one. Long risk reversal […]