I have had a number of people write to me over the last few days asking how exactly short selling works and whether I can provide an example. This is a great question and often confuses many traders and investors alike in the market. The primary reason for this is the logic behind selling and [...]

After more than a week of wildly volatile trading days, including Thursday’s more than 700-point drop on the Jewish Day of Atonement (you can draw your own inferences), Friday saw yo-yo action like never before. Check out the (DJI) chart below:

The Dow Jones Industrial Index is down a massive 5,500 points, or 39%, from a year-ago peak on the back of the General Motors Financial Reporting. And yes, you did read that correctly.
It’s now clear that the markets will not stop falling until either the credits markets show a sign of improving by a flow [...]

If you have been reading the Australian and International papers recently, you will have heard that both the US and UK markets have placed a ‘temporary’ ban on short selling in an attempt to reduce the overall volatility in the markets. Short Selling, by its inherent nature, relies on volatility as the primary element to [...]

Many websites seek to promote there trading system as the “Most Profitable Trading System Available on the Market Today!” without actually ever specifying what type of system they are using. The number of trading systems that can be developed is only limited to the amount of people developing them. A system [...]