TOOLS TRADES - What Is Articles https://www.toolstrades.com/what-is-in-finance Wed, 24 Apr 2024 16:44:25 +0000 en-gb toolstrades.com@gmail.com (ToolsTrades) The best movies about trading https://www.toolstrades.com/what-is-in-finance/7039-the-best-movies-about-trading https://www.toolstrades.com/what-is-in-finance/7039-the-best-movies-about-trading  

One of the surest way to learn something in the modern world is from the screen of one’s TV. News, talk shows, interviews. All of that is unlimited in the number and through internet is available 24/7 to everyone. But, as weird as that may seem, movies can be educational as well. Movies can also be quite an influential tool at this time. That is why a lot of people do not turn to books or special programs when they want to submerge into the fascinatingly difficult world of trading. They want to see right there in from of their eyes. So, here is the list of the best movies about trading there are to this day.

 

Wall Street. This movie has already become classic. Released in 1987 it is telling a story of a young broker who only starts learning about the world of trading. The movie masterfully tells the story of trading world along with rising the questions of morality and legality of the actions. Human nature intervened with the world of trading – perfect movie for those who want to get a lot of interesting action and have some food for the thought as well.

Boiler room. Although known for his comedic talent, Giovanni Ribisi brought depth to his character in this movie. Spectators together with the characters of the film learn a lot about the consequence of one wrong action. Put in front of the seductively big amount of money – who of us wouldn’t take a chance to have it all? This movie shows the insides of the trading world.

Margin Call. 2008 financial crisis is still looming over our heads, 10 years later. And we all still remember how crazy it was out there in 2008. Margin Call tells a story of several bank workers who saw the storm coming as they realized they could do absolutely nothing with the approaching catastrophe. Put in the crisis situation not a lot of people would find themselves into throughout their entire life, the situation is very relatable to many of us.

The big short. But if you really want to understand what happened back in 2008 The Big Short is the movie for you. This relatively new flick is based on a real story of people who foresaw the bubble bursting and taking stock and equity market sown for years to come. Fast narration along with the hard to swallow story this is the movie for real traders who will not get lost in all of the terminology. Although by the end of the movie every spectator will have a basic understanding of the trading world and how it is influential for the rest of the world.

Wolf of Wall Street. This movie is already becoming a classic for traders. Based on the recently happened story of a very real trader Jordan Belfort it is a story of a dream, professionalism and embezzlement. Looking at the life choices it is hard to believe that the story really took place, but every bit of it is true. Leonardo DiCaprio was excellent in his portrayal of the main character and the world of trading shown in the movie attracts with the glamour and noise.

These are only top-5 trading movies in our opinion. Watching all of them will not give a true picture of a trading world, but it will help understand how things work behind the glamour of the stocks exchanges. Interesting world of trading gets only more exciting after watching the movies on the list.

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anna@timber-marketing.com (Anna K.) WHAT IS Fri, 29 Jun 2018 11:38:55 +0000
What is short and long trading? https://www.toolstrades.com/what-is-in-finance/7017-what-is-short-and-long-trading https://www.toolstrades.com/what-is-in-finance/7017-what-is-short-and-long-trading Trading glossary may be a tough one. There are a lot of words which are interchangeable with each other. They are also regular words that we use every day. But when we step into the world of trading they change meaning completely. That can be quite confusing. Such are the words “long” and “short” trading. What do they mean in the world, completely different from everyday life?

Long and short are the terms used by professional traders to indicate whether a certain trade in worth buying ir selling. It also indicates the action of buying or selling itself. Long trade is the one that initiated by buying and the assets is expected to rise in the price and sold for trader’s profit. A short trade is the one when a trader sells off his assets with the intention that very asset back after they fall in price. That would also come to be profitable for said trader.

Long trades are the one where a trader bought an asset. Some of the brokers even went as far as not to have BUY button in their interface. Instead they have a LONG button for the same purpose. Trader also quite frequently use the term long as in owning an asset. So, saying “I am long Microsoft shares” means that the traders owns said shares. To go long means that a trader is interested in purchasing a certain asset.

Short trading on the other hands has a whole different concept. Of course, there is the same goal in mind, but short trading stands for the much more complicated process than a long one. First a trader has to sell chosen assets and wait for the price for them to drop lower than the one those his sold them for. After that the assets are bought back and not sold until they are back up in price again. Most of the financial markets allow traders to go short. Most of the stocks are quite prone to be short.

So that is the difference between going short and long in trading. Simple. But there is a certain beauty to it.

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anna@timber-marketing.com (Anna K.) WHAT IS Tue, 12 Jun 2018 13:38:27 +0000
Are you a Stock Trader? https://www.toolstrades.com/what-is-in-finance/6971-are-you-a-stock-trader https://www.toolstrades.com/what-is-in-finance/6971-are-you-a-stock-trader stock logos

 

You are here because you were searching for stock trading

 

Tools trades provides all the necesery tools for using financial world:

 

 

  • incdluding daily news which reflect on the market like was with Facebook,

 

  • Provides Important stock Charts for Apple For Example

 

 

To get the Free Service and Free Trading signals sign up here: 

 

 

 

 

 

 

people stock

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admin@toolstrades.com (Mark Densel) WHAT IS Thu, 12 Apr 2018 05:06:10 +0000
What are the traits of good broker? https://www.toolstrades.com/what-is-in-finance/6969-what-are-the-traits-of-good-broker https://www.toolstrades.com/what-is-in-finance/6969-what-are-the-traits-of-good-broker Choosing a good broker is of the keys to a successful trading and good win percentage. That being said with the number of brokers on the market today it is fairly easy to lose oneself in the options. The process of choosing a good broker can be just as hard as choosing trading assets, so it is important, especially for those only getting into trading, to know the qualities of a good broker.

1) Communication skills. The key to feeling comfortable with the trader of choice begins with that first communication while verifying recently opened account. Broker’s readiness to help trader cope with the first difficulties and professionalism of the support team are the indicators of a good broker.

2) Minimum deposit. Although there are brokers who set their enrolling minimum too high, typically the number lies in between $500-1000.

3) See-through business conduction. It is very important that every aspect of the broker’s activity is understood by the traders who use their services. After all, broker deal with someone else’s money and it is of paramount importance that traders can actually see every transaction.

4) Clear fees. Every broker has different fees for trades execution but, in any case all of the fees should be out there for the trader to know them before he ever signs up for their services. Plus, there is a question of affordability of the fees, as not all of the traders come into the business with a lot of starting capital. So, the fees should be known and affordable with the good broker.

5) Experience. Of course, in the age of crypto trading it is impossible for every single trader to be in the market for tens of years. But as the practice confirms, it is usually better when the brokers understand the market from traders’ point of view and have vast trading experience.

The basic rules for spotting a good broker are pretty see-through and obvious but it is still difficult to find a broker who will be reliable from all points. So the search and decision must be tough-through and well formed.

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anna@timber-marketing.com (Anna K.) WHAT IS Wed, 11 Apr 2018 12:49:01 +0000
What is margin? https://www.toolstrades.com/what-is-in-finance/6945-what-is-margin https://www.toolstrades.com/what-is-in-finance/6945-what-is-margin Margin is a key point in buy-(re)selling process. Margin is a difference between the selling price of a product or service and the cost if its production or the company’s revenues and expenses. Margin also counts with the help of the amount of equities put in by the investors.

Margin can also be referred to as the edge of something or the amount by which an item falls short or surpasses other items. "To margin" means to use borrowed money to purchase securities.

Margin can also be used as a verb. To margin means buying on margin. It means to practice buying an asset where a buyer pays only a percentage of the asset's value and loans the rest of the needed amount from the bank or broker.

The broker acts as a lender, and he uses his funds in the securities account as collateral on the loan's balance. The margin is the amount of money an investor decides to put down on the account and is typically displayed as a percentage.

For example, if in investor wants to buy a $100,000 futures contract on margin, and the margin is 20%, he has to pay $20,000 in cash but can borrow the rest in the bank. The situation is going to bring a lot of advantage to the traders who count on winning big amounts at a high rate of return. This way paying off the loan will not be a problem for the trader.

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anna@timber-marketing.com (Anna K.) WHAT IS Tue, 27 Mar 2018 13:55:11 +0000
What is a candlestick chart? https://www.toolstrades.com/what-is-in-finance/6885-what-is-a-candlestick-chart https://www.toolstrades.com/what-is-in-finance/6885-what-is-a-candlestick-chart Candelstick chart is one of the most popular and common trading charts in the markets now. Although it has some disadvantages it is still one of the most convenient ways for chart drawing in the market.

In the chart one can see a lot of candle-like sticks and everyone pretty much understands the whole movement of the graphic, but the amateurs usually don’t know that the candle itself can have a lot of meaning inside.

There four pieces of information hidden inside that little candle on the graphic: opening and closing prices as well as high and low of the stock or asset for the day. Little vertical strokes on the top and the bottom of the candle represent the difference between high and low of the asset during the trading day. These strokes are called the wicks.

Candle can also be in the company of additional information: a total number of the traded shares, or the total amount of contracts open for the trade.

Reading candlestick graphic is not a difficult task. It takes just a few days of practice to be of full understanding of the charts.

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anna@timber-marketing.com (Anna K.) WHAT IS Wed, 21 Mar 2018 14:27:33 +0000
What are commodities? https://www.toolstrades.com/what-is-in-finance/6850-what-are-commodities https://www.toolstrades.com/what-is-in-finance/6850-what-are-commodities Commodity traders are the people who use crudes and other goods of nature to trade then for the goods of the same nature. The most often traded commodities are oil, gas, gold, coffee, tea and others. It is also possible to say that animals, animal products, metals and bio-fuels are commodities.

commodities vadodra 730x410The basic feature of commodities is that there is no additional value to them. They are basically sold as they are extracted, washed or picked from the Earth. And, of course, commodities can vary in quality and value, but more or less they are similar, and it doesn’t matter who is the producer. Coming from different usage groups, commodities coming from the same group are interchangeable.

There is a possibility to trade futures for commodities as well. Standard amount of commodities used for trading is established by the marketers. For example, oil is sold by the barrels, precious metals by ounces and wheat by 5.000 bushels.

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anna@timber-marketing.com (Anna K.) WHAT IS Thu, 15 Mar 2018 12:44:29 +0000
What is the correct strategy? https://www.toolstrades.com/what-is-in-finance/123-what-is-the-correct-strategy https://www.toolstrades.com/what-is-in-finance/123-what-is-the-correct-strategy Successful trading depends on selecting the right strategy.

Choosing the trading strategy, in turn, depends on the ability to successfully plan targets and timetables to be correctly calculated in the process of buying and selling, as well as the opening and hold the necessary positions.

Trading strategy combines information on the process of trading (from the initial to the final results), as well as all the necessary information required to be taken into account in financial management. This allows you to adopt a trading plan that excludes speculative aspect as it is in the decision making process when choosing a trading strategy.

Some traders pursue the trading strategies without considering the changes taking place in the markets. Others, however, prefer them more mobile strategy that can also be successful. In the second, the emphasis is given to feelings and assumptions of the trader, it is impossible to consider when choosing a strict trading strategy.

When using a trading strategy can combine different types of assets. In addition, many trading strategies are also considered derivatives, which allow to calculate the initial risk. The most common trading strategies, built with the additional derivatives, often applied in the CFD market. CFD market is a separate market where traders can use different types of positions, personally hoping risk for each of them.

 

 

 

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admin@toolstrades.com (Mark Densel) WHAT IS Wed, 12 Aug 2015 06:36:00 +0000
What is ROI (Return on Investment)? https://www.toolstrades.com/what-is-in-finance/1908-what-is-roi https://www.toolstrades.com/what-is-in-finance/1908-what-is-roi ROI is basically a term that help us understand.

How much money we earned from an investment.

 

For example:

We invest $100 in a cfd position

 

We won a contract and earned $80

Overall, we got $180 back while investing $100

The formula to calculate ROI is

So in our case ROI is (180-100)/100 = 80%

 

There is more to understand ROI, but this is all you need to know for the basics.

 

 

 

 

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omri@media-gnm.com (Donald Herison) WHAT IS Thu, 18 Sep 2014 10:02:46 +0000
What is stock? - Easy to understand https://www.toolstrades.com/what-is-in-finance/1774-what-is-stock-easy-to-understand https://www.toolstrades.com/what-is-in-finance/1774-what-is-stock-easy-to-understand I’m going to open now a new business with 20,000usd 

 

 

I have right now 10,000usd

 


I need another 10,000usd

 


Instead of going to a bank and ask for a loan of 10,000



I’m going to divide my company

Pie itself has 20 slices:

I have in one hand 10 pieces of the pie that is mine and in a second hand i have another 10 slices.
for each slice in the second hand I’ll ask 1000usd from investors.

My company is now running




After a year I manage to make my business bigger - and now it worth not 20,000 - it worth 40,000usd

ferrari

 

That means my 50% of the company worth instead of 10,000usd it worth now 20,000usd

and each investor doubled his 1000usd investment - now each investor has 2000usd




Each investor also now can sell his pie for 2000usd and make a clean profit of 1000usd (invested 1000 and earned another 1000usd)



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admin@toolstrades.com (Mark Densel) WHAT IS Sun, 17 Aug 2014 11:49:46 +0000
When to trade? https://www.toolstrades.com/what-is-in-finance/112-what-is-the-correct-hours-to-trade https://www.toolstrades.com/what-is-in-finance/112-what-is-the-correct-hours-to-trade The Forex market is a decentralized platform, so it works around the clock seven days a week.

 

 

However, the weekend is much slower trading and liquidity falls. Therefore, market makers and brokers stop their work. Saturday and Sunday are considered unofficial time when trading on the Forex closed and traders are resting.

For a successful trading and analyzing the financial news you need to know the exact time of the trading session (when trading is allowed). Timing is of the Prime Meridian passing through Greenwich, and called Greenwich Meridian Time.

The exact time of trading sessions site FrontStocks Ltd:

Monday Tuesday Wednesday Thursday Friday Saturday Sunday
00:01-23:59 00:00-23:59 00:00-23:59 00:00-23:59 00:00-20:00 holiday holiday Note: All times in the time zone GMT [?]

The main points of the trading week

Sunday 20:00 - Start of Trading;

21:00 - beginning of the trading session in New Zealand. Events do not occur, trade sluggish;

23:00 - beginning of the trading session in Sydney. Trading begins to gain momentum, as in 1 hour will trade in Tokyo;

24:00 - the opening of trading in Tokyo. Market gains momentum. Take into account the specifics of the market: Asian investors are consistently and clearly, if open positions in the same direction - all at once;

01:00 - Opening of Singapore. Increases because of the dynamics approach the opening of the two giant stock exchanges - in Shanghai and Hong Kong. Often, before the Chinese session euro decreases up to the opening of the Shanghai and Hong Kong;

01:00 - 01:30 - to the Chinese session mostly Euro falls, but there are exceptions;

01:30 - Opening of Shanghai and Hong Kong. Begins a large-scale trade in the auction involves the entire Asia - Pacific;

01:30 - 02:30 - possible adjustment Euro. Most often, up to one hour.

02:30 - 06:00 - open multidirectional deal on EUR / USD. At this time, Asian exporters convert part of their profits in dollars and euros;

06:00 - closes Tokyo. If the Euro is actively sinking up to this point, after the closure of Tokyo, Chinese traders are trying to boost the Euro;

06:00 - 07:00 - "Chinese Hour" on the exchange. Chinese and Singaporean traders have complete control over the trade situation. At this time, most growth occurs Euro;

Asia - a major trade - industrial region with an abundance of high-quality and low-cost goods and financial giant in circulation. Asian traders make a lot of deals. Therefore bets made at the opening of trading in London, should be monitored after the trade the Asian region;

07:00 - Opening of London and European exchanges. According to the observations often sell Euro dominated in the early hours;

09:00 - Closing of Singapore and the end of the Asian session. Almost immediately or within an hour going to push the Euro and change of trend (often it happens to 11:30);

09:30 - often the leap for the Euro. European traders no one interferes. Asia is likely to bring down the foot;

10:00 - 10:30 - may be change of trend in the European session;

11:00 - 13:00 - end of trade on the oil exchanges: Dubai, Qatar, Emirates and others. Oil trade is in dollars, so often a rise in the euro;

13:00 - 13:30 - the panic, as the approaching opening of the U.S. stock exchanges. The right time to close unsafe position. Quite often, at this moment the Euro goes down;

13:30 - opening exchanges of America and Canada. Europe at this time is also able to trade. So begins the most large-scale trade. Trades are formed quickly. Generally strong movements at this point are due to speculation;

15:30 - The European session is closed. Often at this point is changing the trend of the Euro to the opposite;

19:00 - 20:00 - the last hour of the American session. The previous trend resumes often and 21:00 - 21:30, the first and last hour of any stock exchange - is the time of maximum activity of large institutional clients and funds. At this time there fixing their profits. At this point, you should be careful.

Friday 21:00 - trade stops

Recommendations traders
 If you use the technique of intra-day trading, then you are important time points of entry and exit from the market. A time when it is desirable to monitor the traffic on Forex:

23:55, 01:25, 05:55, 06:00 - 07:00, 06:55, 08:55, 09:00 - 11:00, 10:55, 11:00 - 13:00, 12: 45, 13:25, 15:30 - 17:00, 18:55, 19:55, 20:00, 21:00.

If you have questions about the transactions, please contact our customer support. For a quick tutorial you can also use the online chat by clicking the "Support" at the bottom left of the page.

 

 

 

 

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admin@toolstrades.com (Mark Densel) WHAT IS Sat, 24 Nov 2012 21:59:31 +0000
What is the correct terminology? https://www.toolstrades.com/what-is-in-finance/111-what-is-the-correct-terminology https://www.toolstrades.com/what-is-in-finance/111-what-is-the-correct-terminology Forex - foreign exchange market, where buyers and sellers conduct foreign exchange transactions.

 

 

Broker - an organization that provides lending and support traders.

Bulls - traders who count on the rise in the exchange rate.

Bull market - a market with a tendency to appreciate in value.

Exchange rates - is of two kinds:

direct quotation - the number of currency units per U.S. $ 1 (U.S. is ahead of the currency pair).
reciprocal rate - the number of units of currency per 1 euro, British pound and Swiss franc (Euro, British pound and Swiss franc currency pair is ahead).
Base currency - currency, standing in the currency pair first.

Currency quotes (quote currency) - in each currency pair is written on the right (second).

Exchange rate - the price of the currency of one country expressed in the currency of another country.

Currency pair - text entry currency quote.

The upward trend - when every once in a wave reaches higher than the previous value of the course. Low points of waves connected by a straight line - trend line.

Intraday trading (intraday) - Trade with orientation to profit in one day.

Deposit - money deposited into an account for further operations.

Diversification - a strategy designed to reduce risk by spreading investments among different currency pairs. Unfavorable development of the situation in one of the currency pairs can be skormpensirovano successful deals in another currency pair.

Dealing - cashless trade exchange.

Dealing center - company that provides access to the foreign exchange market through the pooling of client requests to open positions.

Channel - a certain corridor currency fluctuations.

Leverage - the rate of the loan provided by the trader to the broker.

Cross-rate - the rate that expresses the ratio of the two rates, none of which is the U.S. dollar.

Trend lines - is performed on the graph straight lines passing through the cavity by an upward trend and in spades - when descending. These lines define the current trend. Trend line break is usually a signal of change in trend.

Margin trading - currency trading on the security (margin). In margin trading necessarily holding back the transaction.

Market-makers - major banks and financial companies that define the current level of the exchange rate or interest rates by a significant proportion of their operations in the total market.

Bears - traders bearish on the currency.

Bear market - a market with a tendency to depreciate.

The downward trend - when every time achieved a lower rate. The trend line is constructed by connecting the high points of wave motion rate.

Order - any transaction on the account.

Point or pip - the minimum price change, which is different for all currency pairs.

Range - the distance between the support and resistance levels.

Swap - the amount that is removed or credited to each open trade after midnight.

Spread - the difference, usually expressed in points, between the seller and buyer prices. A lower spread is favorable to the trader.

Technical analysis - the area of ​​market analysis, suggesting that the market has a memory, and that the future course of the movement strongly influenced by patterns of his past behavior.

Transaction - The open / closed position.

Trader - person, who trades currency on the Forex market for profit.

Trend - current general direction of price movement.

The level of support - the lower boundary of the channel.

Resistance - the upper limit of the channel.

Figure - price change for 100 points.
For example, price change EUR / USD from 1,770 to 1,870 - an increase of this figure.

Hedging - operation with some financial instruments that partially overlap the risk of loss of working with other financial instruments. For example, when trading in futures on the dollar, the risks can be hedged transaction options contracts on EURUSD, and vice versa.

Chart, graph, diagram - a graphical representation of price change and other data over time.

Fundamental analysis - the area of ​​market analysis, in which predictions are based on developments in the financial world. The main criteria are usually considered the economic situation in the country under consideration currency, monetary policy and other "fundamental" aspects.

Interbank rates - exchange rates, which are large international banks quote other large international banks. The difference between the purchase and sale of foreign currency may be about 0.03-0.08%.

 

 

 

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admin@toolstrades.com (Mark Densel) WHAT IS Sat, 24 Nov 2012 21:14:24 +0000