LIBRARY

Having the proper guidance every step of the way is crucial to your success. We, at Equity Scholar, understand that. Moreover, in this Library section, you can read through numerous constructive articles written to provide direction and support beyond learning the skills of trading. When it comes to learning complex financial material, there's no substitute for the guidance provided by our Equity Scholar team.
After all, the greatest obstacle that faces any investor is the mental messages which constantly bombard both the novice trader and the veteran. The constant battle of fear and greed, mixed with trade confidence or apprehension, is enough to drive even the most seasoned professional crazy. These articles are designed to give you advice based on the trials and tribulations of seasoned investors and traders. Use these articles to reinforce the lessons learned and reiterate proper techniques from the courses.

Articles

Morning Reversal

The “morning reversal-gap fill” is a great strategy to run in the morning, within the first hour of trading. This is especially true during the first 20-30 minutes of the day. The market maker can legally control at what price a stock opens at and then if the right situation occurs, a reversal can take place. The idea of filling the gap is a prediction that traders are relying on to take place at a high likelihood.

Averaging Down

Averaging down refers to adding to your position if it decreases considerably in price after your original entry. This will bring down the average cost of your position. If it works it will bring you big profits, but if it doesn’t it will lead to a bigger losing position. There are conflicting opinions on this strategy. Supporters of the strategy see averaging down as an efficient approach to generating profits, while those who oppose site it as a formula to disaster.

Tape Reading

Tape reading used to refer to the procedure of studying the antiquated ticker tape and carefully watching prices, volume, and change in order to predict the current trend. Today tape reading refers to keeping track of price action and asking yourself if the price is going up or down at the time. Even beginners have the ability to see when prices are going up or down at a specific time period and they can also tell when price action is going sideways.

Can New Traders Learn from Experienced Traders

There are many theories and arguments in the trading industry about the ability of a newbie to learn to trade from an experienced trader. We believe that it is very possible for an individual to learn trading if they are prepared to make the necessary sacrifices. The learning processes when applied to US equities is very challenging and a trader must study and practice on a continuing basis. We will then add another layer, the psychology of trading, no matter how good a...

Entry and Exit Points

Trading would be easy if traders knew when to get in or out of a trade. Not even the most profitable traders in the world can do this. The maximum that traders can aim for is to catch the bigger part of a move or trend, and then cover their positions for a favorable profit before their positions or the market goes against them. Traders should have a general idea of conceivable entry and exit points, before getting into a trade.

Using Technical and Fundamental Analysis

Most traders usually focus on either technical or fundamental analysis. Many of them are going along with the common knowledge that each approach is more astute with a likely trading range. Long-term investors rely on fundamental analysis because long-term moves are guided by fundamentals, whereas short-term traders rely on technical analysis because short-term moves are governed by volatile price action.

Psychology of Trading

Trading success takes time. There are no shortcuts or blueprints. You develop a trader’s frame of mind by actually trading and incorporating the experiences that you acquire through trading. Psychology in trading is very powerful. No two traders are exactly the same, even if shown the same successful trading strategy. This is because each trader has their own individual point of view and their experiences will determine the way they trade.

Creating a Trading Plan

Trading is a determined business. There are two typical outlooks when implementing a trading strategy. Some people are of the perception that you should always be trading every single minute of every single day. So you won’t miss an opportunity and make the most of those opportunities. Other people are of the mindset that you should be tactical and set specific criteria or goals and if those criteria aren’t met then you wait for the next target or opportunity.

Understanding What it Takes to Trade

Describing a trader’s journey is very similar to climbing up a large set of stairs; it takes time to get from the bottom to the top. A great deal of time and energy must be poured into learning how to trade. Often traders try to rush the process and, as a result, usually end up hurting their accounts. It is imperative to follow some set of rules in order to keep your emotions in check. A “trader checklist” will help you sort through noise and find only the highest...

Proprietary Trading

The objective of proprietary trading is plain and simple- to generate as much profit as possible. Proprietary trading (or just “prop” trading for short) occurs whenever a person or company trades its own capital on its own behalf. Traditionally, this was done by banks and other institutions to add revenue to their loan and investment banking income. Recently, however, with the increase in Internet-based trading, the tables have turned and prop trading has become very...

The Downside of Demos

While having new traders develop skills on a demo or simulation trading platform can be helpful, it is often deceptively destructive. Most inexperienced traders relate gains and losses on their demo accounts to those in the real world. However, performance on a demo is not easily replicated when trading real money, especially when it’s your money. Thus, these artificial gains build over-confidence and subconsciously develop bad habits, often laying the groundwork for...

Setting Up a Brokerage Account

Before you begin trading and/ or investing you will need to open up and fund an investment account. There are a number of options to consider when choosing a brokerage and account type; it is very important to understand how each account type operates before making your decision. Selecting a brokerage and account type should be based on your investment objectives as well as what and how often you intend to trade.