This section contains definitions, concepts, strategies and trading tools all traders should be aware. This section will be useful to providing new or inexperienced traders with the fundamentals behind stock market and CFD trading
It is fair to say that many technical traders are constantly searching for the holy grail of systems, and there are clearly some approaches that work better than others, though very few approaches work all the time in all markets
There is no doubt that the internet has altered the share trading process in the last decade to the benefit of private clients in terms of cost and access to information and markets. Alongside this has been a decline in trading physical shares using a traditional stockbroker and the rise of CFDs and spreadbetting.
A stop loss is an order from a customer to a broker that sets the price of a stock below (in traditional trading or in long CFD trades) or above (in short CFD trades) the current Market Price. A stop-loss order therefore will protect profits that have already been made or prevent further losses if the stock drops. A stop loss forms part of an exit strategy for trades that are running at a loss.