Trading Basics

Averaging Down

Once an initial long trade is place this is the practice of opening additional positions at a lower price with the view of bringing the average opening price of the position down.

Other Trading Basics

Circuit Breaker

When exchanges stop the trading in a security that has fallen significantly.

This is done to stop an uncontrollable panic.

Contrary Opinion

An approach to trading where traders take the opposite view and therefore the position of the retail participants in a market.

Black Box Trading

Also referred to as automatic or algorithmic trading.

The trader does not need to see the system in operation, in effect its a black box.

Start learning

Learn the skills needed to trade the markets on our Trading for Beginners course.