In the 1980s, John Bollinger, a long-time technician of the markets, developed the technique of using a moving average with two trading bands above and below it. Unlike a percentage calculation from a normal moving average, Bollinger bands simply add and subtract a standard deviation calculation.
Hedge funds are designed for shorter-term investments with the goal of making the largest return on investment in the shortest time. Instead of making a small amount of money over a long period of time, these diversified portfolios generally leverage successful securities against less successful ones, providing a large return with minimal risk. The main component of a hedge fund is the risk-return ratio, which can be analyzed by tracking the performance of certain markets over a specific period of time. Generally, hedge funds are only available to investors with a large percentage of financial assets at risk.
Investors of US debt are growing closer to a breaking point that could force a major sell-off of Treasuries causing yields to rise sharply. This would make it expensive for the US Government to borrow to spur a sluggish economy. If that happens, inflation could soar. Investors would then flock back into gold, as a safe haven. We have already received signals from China that it intends to reduce their holdings of US Treasuries. If you think that will cause a mild inflation risk, you are in for a rude awakening.
Candlestick charts are quite often used in forex trading to depict the trends of an asset. They may seem quite complicated but we explain what a candlestick chart is and how to use one to help you trade better.