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The idea is to sell the commodity that is considered "overpriced" in exchange for the "undervalued" one. When the ratio reverses in the future, you can trade back, potentially increasing your investment. Extreme ratio levels can lead to profitable opportunities for traders.

Continue Reading at How to Use the Gold to Silver Ratio for Strategic Investment

Investors use the spread to determine the relative pricing or valuation of a bond. The higher the difference between two bonds (or two classes of bonds), the wider the spread. The bond or class of bonds with a higher yield is thought to be riskier. In this case, the higher yield compensates investors for the risk disparity.

Keep in mind that a bond's price moves in the opposite direction of its yield. As a result, when investors perceive a bond to be riskier and throw it out of their holdings, the bond's price falls, and its yield rises. Consequently, the yield spread of this bond increases if the pricing of other bonds remains unchanged.

Continue Reading at How to Analyze Market with Bond Spreads

Don't hold a 'buy' position unless you are sure the market is going up, and don't hold 'sell' unless the market is going down. The way to get lots of profit is by determining the main trend and following it. If your trading isn't going to the same direction as the market, then turn around and follow the market.

It is safer to sell on a bearish market when the price is going down 200 points from the peak. The reason is, price movement below 200 has already passed through any support points. The same thing applies (in reverse) to bullish positions. Always keep up with the market, don't even fight it.

Continue Reading at How to Maximize Your Trading Performance

YouTube has a massive user base, with over 122 million daily users in the US alone. This user base makes it a hub for traders and investors to share their insights and ideas, creating a wealth of information and knowledge for those interested in stock trading.

Continue Reading at Youtube Channels for Newbie Stock Traders