The risks of using ETFs for long term investing

An ETF (Exchange Traded Fund) can be a great investment option because it allows diversification even with a small capital. Consider for example the SPY, an ETF tracking the S&P500 index. Since you cannot invest directly in an index, how can you replicate the...

What goes up…

What goes up… must come down. All of us have experienced that, it is called gravity. When you throw a ball in the air, you expect it to come down. The same principle applies to the market, but we tend to forget it.I have posted a few articles on how our mind and...

Japanese Candlesticks

Japanese candlesticks were introduced by the Japanese for rice trading. Today, they are often used for visualizing the price of an asset. The reason is that they provide in an intuitive way information like the low, open, close, and high price.As prices represent the...

Support and resistance

What are support and resistance (S/R)? In technical analysis (i.e., the study of the charts), they are very important levels where the price is more likely to “bounce”. A support is a zone that the price may hit from above and then bounce up. A resistance...

How to restore a lost OCO order

When you cancel an active order you can easily restore it, but it may not be so easy with an OCO order (One Cancels the Other).Ok, let’s start from the beginning. Suppose that you have placed a bracket order with attached take profit and stop-loss. If you have...