It’s important to understand the business model of a firm for long-term investing. Reading SEC filings such as 10-K and 10-Q will gradually help to become an expert on business and industry. Profitable businesses attract competition, and increased competition leads to lower profits. Therefore, a deterioration in profitability can only be prevented through a sustainable competitive advantage. Still, it is essential to perform due diligence before investing by using the best stock news websites and following the financial news. One is the company’s revenue growth, particularly over the past two or three years. If the company’s major competitors are averaging …

Most types of financial instruments provide efficient flow and transfer of capital all throughout the world’s investors. These assets can be in the form of cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one’s ownership in some entity. Common underlying assets or factors include stocks, bonds, currency exchange rates, commodity prices, market indices, and interest rates. For example, if a company were to pay cash for a bond, another party is obligated to deliver a financial instrument for the transaction to be fully completed. One company is obligated to provide …

The true proportion of derivatives contracts used for hedging purposes is unknown, but it appears to be relatively small. Also, derivatives contracts account for only 3–6% of the median firms’ total currency and interest rate exposure. Nonetheless, we know that many firms’ derivatives activities have at least some speculative component for a variety of reasons. For example, an equity swap allows an investor to receive steady payments, e.g. based on SONIA rate, while avoiding paying capital gains tax and keeping the stock. Each party has its profit or margin built into the price, and the hedge helps to protect those …

In our crypto guides, we explore bitcoin and other popular coins and tokens to help you better navigate the crypto jungle. From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here. Since currency pairs oscillate between contained boundaries through nearly all economic conditions, these historical levels can impact short-term pricing for decades. 12th-century monk and mathematician, Leonardo de Pisa discovered a numerical sequence that appears throughout nature and in classic works of art. If they were that simple, traders would always place their orders at Fibonacci retracement levels and the …

He invented the concept of value investing in the 1920s — an approach that prioritizes buying stocks priced below their intrinsic values. Graham wrote two of the most famous books on investing, Securities Analysis with David Dodd and The Intelligent Investor. As both a lecturer at Columbia University and a fund manager, Graham played a formative role in Warren Buffett’s ascent as a value investor. We looked at 11 of the greatest investors in history, who have made a fortune off of their success and, in some cases, helped others achieve above-average returns. Buffett is also known for his long-term …

Now paste the Ewo divergence.ex4 and Ewo divergence.mq4 files into indicators folder and restart the MetaTrader 4. Paste the ewo-divergence-indicator.mq4 indicator in the Indicators folder. Please note that even the best trading indicator cannot yield a 100% win rate over long periods. Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the EWO Divergence Forex indicator. The example chart below displays the EWO Divergence mt4 indicator in action on the trading chart. It’s best to set a profit target as 100% — 161% of the price movement of wave 1 as …