Recent content by Shobhit Seth

Advantages of a Forex Trading Career There are several advantages that a career as a forex trader, also known as a foreign exchange trader, offers and these include: Low Costs Forex trading can have very low costs (brokerage and commissions). There are no commissions in a real sense–most forex...

Some traders and investors denounce technical analysis (TA) as a superficial study of charts and patterns without any concrete, conclusive or profitable results. Others believe it is a sort of “Holy Grail” that once mastered will unleash sizable profits. These opposing viewpoints have led to...

Algorithmic trading (also called automated trading, black-box trading, or algo-trading) uses a computer program that follows a defined set of instructions (an algorithm) to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader...

While using algorithmic trading, traders trust their hard-earned money to the trading software they use. The right piece of computer software is very important to ensure effective and accurate execution of the trade orders. Faulty software, or one without the required features, may lead to huge...

Amid thousands of stocks actively trading in global markets, a significant percentage are very thinly traded stocks, in other words, stocks that trade irregularly at low volumes. Investors should be aware of the considerable risks of trading in these low-volume stocks. One risk of low-volume...

For a time, it looked as if high-frequency trading, or HFT, would take over the market completely. In 2010, HFT made up over 60% of U.S. equity volume. But the trend may be waning. In 2009, high-frequency traders moved about 3.25 billion shares a day. In 2012, it was 1.6 billion a day, according...

Lucrative salaries, hefty bonuses and creativity on the job have resulted in quantitative trading becoming an attractive career option. Quantitative traders, or quants for short, use mathematical models to identify trading opportunities to buy and sell securities. The influx of candidates from...

Amid thousands of stocks actively trading in global markets, a significant percentage are very thinly traded stocks, in other words, stocks that trade irregularly at low volumes. Investors should be aware of the considerable risks of trading in these low-volume stocks. One risk of low-volume...

Most brokerage firms today offer free or premium trading software applications to individual clients when they open a brokerage account. The bundled software applications, offering a wide variety of trade, research, and analysis functions, are used as a prominent sales-pitch to the trader...

Shorting covered calls is a very popular option trading strategy that involves shorting a call option and taking a long position in underlying stock. On the upside, there is limited capped profit to the trader with limited and proportionate loss on the downside. Experienced traders apply this...

Computer applications have made it easy to automate trading, especially for short term intensive activities like day trading, making the usage of trading software very popular. The debate continues on the profit potential which can be realistically derived from day trading activities, as...