How Can Prop Traders Leverage RSI
Relative Strength Index (RSI) is one of the most widely used tools by Prop Firm Traders. This concept was developed by J. Welles Wilder Jr. and introduced in 1978 in a book named “New Concepts in Technical Trading Systems”. This indicator is available on almost all trading platforms.
The Secret to Success is Solid Money Management
The secret to success is solid money management, a subject that is widely ignored.
Why Moving Average is Considered a Key Concept in Prop Trading
The concept of moving average is prominent in prop trading. The traders make crucial decisions based on the outcome of these calculations. To understand this better, let’s take an example: assume the price of an instrument for the last 5 days is $10, $12, $15, $17, $20 – the total is $74, and when divided by 5 days the moving average comes to be $14.8. This is called the Simple Moving Average (SMA) and helps understand the overall trend and mitigate the recency effect. Now, that the concept is clear let’s dwell on its further parts and understand how a prop trader benefits from its usage.
Silver Price Outlook: Short-Term Trends & Opportunities for Prop Traders
Very often, people say ‘Born with a silver spoon’ or ‘Every dark cloud has a silver lining’. This shows that silver holds a significant place in our society and business as a whole. For a prop trading firm, it becomes equally important as an instrument for traders to trade. In this blog, we will break down the details of this valuable commodity and why it’s traded:
Type of Orders Every Trader Must Know!
Orders represent the fundamental directives that traders convey to their brokers, specifying both the timing and desired price for executing trades on a particular financial instrument.
How Prop Trading Firms Leverage Commodity Markets
Proprietary trading firms (or prop firms) use their own funds to place CFD trades in the marketplace. To generate profits, they provide funds to skilled traders to trade on their behalf and split the profit. Modern prop trading firms offer their traders demo funds in a simulated environment for risk management. Commodity markets consisting of gold, silver, oil, etc. are also the key players in global trading markets. For proprietary trading firms, these markets provide significant opportunities due to their dynamic nature.
In this blog, we will explore how a prop trading firm leverages commodity markets including their key strategies, risks involved and trading opportunities in the financial markets.
Dow Jones Index: A Key Barometer for Proprietary Trading Firms
Little would Charles Dow, the founder of Wall Street Journal and Dow Jones & Company have imagined that his name would become one of the most powerful business Performance Index across the globe. The Dow Jones Index was first introduced on May 26, 1896. This is a representation of the top 30 large business units listed in the US. Some notable companies included in this index are Apple, Cisco, Boeing, Amazon, Goldman Sachs, Visa, and Walmart, among others.. These companies serve as a strong representation of industry leaders across various sectors of the economy..
Some of the reasons for Traders to go for Dow Jones Index are as below:
Why NAS100 is a Go-To Instrument for Prop Trading Firms: Key Factors to Watch
NAS100 or Nasdaq100 is an Equity Index of the largest 100 non-financial companies. It’s a barometer of the US economy and represents the health of IT companies. NAS100 was formed on 31st January 1985 and shot to fame during the dot com revolution. To assess the Financial Firms there is a Nasdaq Financial-100. This index has seen the rise of the US as Super Power in the world, 2000 IT recession, Housing Bubble, 9/11 attack and subsequent wars in the Middle East, Russia/Ukraine conflicts and change of US presidents.
Most of the prop trading firms have an Instrument to trade for NAS100. It’s a popular instrument to trade. There are a lot of reasons and key points that a prop trader should look at while trading the index.
US Dollar Short-Term Outlook: What Proprietary Traders Need to Know
Mr. Trump took office on January 20, 2025, and since then slogans to build America again and America First have gained momentum. There has been a significant focus on improving the Domestic US economy and trying to give it an edge over the other countries. The new tariff rates have been imposed on Canada, China and Mexico. The BRICS nations are next in line. As a Proprietary Trader, some of the key points to focus for a short-term basis the current updates are as follows:
Hedge Funds vs Proprietary Trading: A Comprehensive Guide
Are you among those who are confused about where to invest your funds? Or are you curious to know the difference between hedge funds vs proprietary trading and how both approaches play a significant role in the financial market? If so, then, my dear reader you’re at the right place.
In this blog post, we’ll discover proprietary trading and hedge funds, including their major differences, pros and cons, and how both these approaches work in the financial market. In the end, you’ll get a clear view of the best strategy (proprietary trading or hedge funds) that suits you based on your preferences and trading needs. Therefore, keep reading till the end.