Rectangles have been very popular with traders over the years trading the chart pattern when it breaks out in either direction. A rectangle is defined by two lines, one on the upper boundary of the price movement and one on the lower boundary, both of which are horizontal. The lines are parallel. These can be referred to as consolidations or channels, or the well known Darvas Box, used by Nicolas Darvas to make $2 million in the markets.
Today, I had an interesting conversation with an option trader who is still searching for the magic formula to making consistent returns with option trading. He said many things which were so familiar to me.
If you have ever wondered what Forex trading is about this article will help you understand. Forex trading is about investing your money into other currencies. Forex Trading can have other assets aswell as currency. The main asset is money on a global scale. Any country and any investor can partake. It can be a short over night investment or a few days, the choice is yours.
If investors didn’t learn the lesson between 2000 and 2001, odds are that 2008 finally taught them the need to be prepared for a portfolio-destructing bear market. By early 2009, the major stock indices revisited lows not seen in more than a decade, effectively unwinding years worth of gains in just a matter of months. It didn’t have to happen though, if these simple strategies had been understood.