// TRADING TERMINOLOGY

What is Diversification?

The practice of spreading investments across different assets to reduce overall risk.

In-Depth Explanation

By holding assets that are not perfectly correlated, a trader can reduce the impact of any single asset's poor performance on the total portfolio.

"Instead of only trading Tech stocks, the investor adds Gold and Commodities for diversification."

A statistical measure of how two securities move in relation to each other.

A price level where a rising market finds selling pressure and struggles to break above.

A price level where a falling market finds buying interest and struggles to break below.

A momentum oscillator that measures the speed and change of price movements.

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Knowing the terms is just the start. Learning how to apply them is where the edge is found.