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Which is smart? Learning from your mistakes or from the mistakes of others? Obviously, it is the latter because it comes free. Further, it makes you learn aplenty in a short period of time. So, it saves time, steepens your learning curve and provides better results too. It’s the general case but in trading, you get an even better incentive — you cut your losses. You don’t have to put your hard-earned bucks into a trial and error test and learn it the hard way. When you can develop your trading skill the easy way , why not take it? So, here are the common mistakes every new trader does. And you don’t have to do it. Because you read it here. *Mistake #1 — Diving without due preparation* Which is smart – Learning to swim in a pool or in the sea? It’s the pool. In this analogy, the swimming pool is the demo account and the sea is the real account. Trading in a demo account can seem childish. You may even feel lame that you’re putting in your hours for nothing. Some even argue that trading ...
Indices or Indexes are groupings of a specified number of stocks into one trade-able entity, either representing a particular market or portion of it. Although each stock can be bought and sold on its own, and index can also be traded as a whole. Indices are bought and sold in same way as an individual share. Indices images Indices are mostly region based and investors also use them to gauge a particular economy’s health. Trading on Indices also allows investors to diversify their risk across the whole market instead of investing in a specific company. Major Indices are S&P 500, Dow Jones in USA, FTSE100 in UK, European indices such as DAX30 and Asian Indices such as NIkkei225, Shanghai Composite. Indices Trading Example Buying SPX500 Opening the Position Opening price USD $ 2082.60 You decide to buy 1 contract at $ 2082.60 (1 contract=1$ per index point) Closing the Position One week later the SPX500 has risen to $2092.60, you decide to take your prof...
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