Averaging Down

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

Bear Market

A Bear Market occurs when the price of a security is falling, and the negative outlook of the security causes the security’s price to continue to fall, causing a self-sustaining problem.

For a downturn like this to be officially considered a bear market, it must be on-going for longer than two months, otherwise it is known as a correction.

Bears are generally traders with a pessimistic view on markets that look to profit from a decline in prices.

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Bollinger Bands

A technical indicator developed by John Bollinger.

The bands help a trader visualise changes in price volatility.

Taught in our Technical Trading course.

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