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Dom Farnell Trading Tips
Traders need to have a good understanding of their financial goals and risk tolerance, as well as the market’s liquidity and potential price movements. This can help them make more informed decisions about their investments. Source :https://www.theinvestorscentre.co.uk/author/dom-farnell/
One of the most important tools for this is DOM (Depth Of Market). DOM is a live, high-resolution image of the market’s current mood. It lists all buy and sell orders for a particular asset lined up by their price levels, and provides valuable information about the market’s liquidity and possible price movements.
Expert Trading Insights by Dom Farnell
For example, if there are more buy orders than sell orders at a certain level, it may indicate that there is a strong demand for the asset and that its price could rise. On the other hand, if there are more sell orders than buy orders at a certain level, it may be a sign that the price of the asset is likely to decrease.
Using the DOM helps traders determine the best entry and exit points for their trades. It also enables them to analyze the market and identify areas where there is a concentration of buy or sell orders, which can act as support and resistance levels. The DOM can also be used to assess market efficiency and the degree to which prices reflect all available information. This is particularly useful for traders who use stop orders. In addition, it can help them to avoid unnecessary slippage when placing large orders.
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