Year: 2018

Investment prediction for 2019 – Traders Paradise prediction

The image is taken from depositphotos.com

By Guy Avtalyon

Investment prediction for 2019. is in front of you, so let’s start.

Investment prediction is a really tricky job. This year has been full of market volatility, climate disasters, personal data frauds, economic insecurity.

And now, in the end, we are waiting for a fresh start? Things never go in that direction. It looks that 2019 promises to be in a mess. That’s why Traders Paradise is trying to predict what will be real in the next year. And we find this, some other guys may find something different:

Bear market – is here

Nearly half the stocks in the S&P 500 index are in a bear market at the end of this year. They are down 20% from their highs.

The second-largest stock exchange in the world by market capitalization, NASDAQ, is officially in bear territory. If you don’t know yet how to trade- here’s our full guide.

All signs are pointing to more damage to the stocks.

Equity markets in more than 20 countries are in bear territory. Investors are worried about how bad it will be and how long it will last.

Bears are necessary and unavoidable cycles in markets and have been for centuries. But they are cruel. This will be a great theme in 2019. That is our investment prediction.

And each investor should be prepared and to diversify the portfolio.

Artificial Intelligence (AI)

One investment prediction, more.

Japanese tech company Groove X introduced a robot whose task is to make people happy. The “Lovot” uses artificial intelligence. It can mimic human empathy.

This cute robot represents the revolution of artificial intelligence. “Robot” can feel emotions and communicate with people. It is 3kg tall and 43cm tall, the optical camera helps it move. And can be our new friend for $5,300. Some cost us even more.

There’s a vertiginous line of AI applications on the table right now. We expect this term will be very popular in 2019 and the list will become larger.

Obviously you can find all sort of information on the internet about machine learning and AI, like these articles on Wikipedia for example, but the concept is quite simple: You run an algorithm (there are many) on the set of data, and once the algorithm is finished, the software will know how to run by itself on new sets of data, even if it’s never been seen.

There are 2 types of algorithm methods READ HERE

Socially Responsible Investing – Impact investing

Socially responsible, or ESG investing accounts for environmental, social, and governance factors. But does not necessarily result in worse performance. There are those that think ESG investing can outperform the markets, and there are those who strongly believe the contrary. There are specific examples that will back up both sides of the argument.

People are often asking us what is a social enterprise, and we are usually answering by asking “what is social investing?”. Sometimes the phrase is social impact investing; sometimes it just impacts investing.

Impact investing carries risk, that’s true. But also it generates great returns and impact. It is smart and moreover, profitable to invest in companies that actively have positive social or environmental influences. It is a step further than divesting from negative impacts. For example, allocate your investment portfolio away from fossil fuels. Instead, use your money to consciously tackle society’s challenges. And to make a financial return, of course.

Investors’ concerns

Investors sometimes ask how much return they will have to trade-off in order to make impact investments.

Firstly, there is no “impact see-saw”. Just because a business is creating a more positive impact, that does not mean they are creating a less financial return. Indeed, in many cases, because the impact is at the heart of the business model, the more impact they create, the more profit they make, and vice versa. Some research even suggested that impact-focused businesses are more sustainable and profitable in the long-term.

In any investment, there are different levels of risk and return and there are also different levels of impact. An impact investment may be riskier. It has high returns and high impact. Or, it could be less risky since it brings market-rate returns and significant social or environmental impact.

As with any investment, it depends on the business or the fund.

The statistic shows that 89% of investors making impact investments find these are meeting their return expectations, and 54% of investors are targeting market-rate or above market-rate returns.

There are many ways to get involved in impact investing. Crowdfunding has even helped retail investors, who have less risk capital, to get involved in this space.

Generally, our investment prediction that this kind of investment will be more popular in the next year.

Blockchain

Traders Paradise’s investment prediction is this will be one of the most popular terms in 2019.

Blockchain technology provides a way to make transactions and transfers online without the use of an intermediary. Instead of trusting a third party to keep the transaction history safe and accurate, blockchain technology lets you seal “pages” of transactions with a key code for security.

One of the most relevant reasons that many companies are adopting blockchain technology is efficiency. We can all realize how exchanges can become quicker. And simpler too, when they don’t have to go through a third party. It’s also beginning to move document authentication toward obsolescence, removing a step in the translational process.

How To Make Money With Blockchain Technology READ THIS TOO:

Blockchain technology can also make companies feel like their information is safer and more secure. In an age where hacking banks cannot always resist off attempts to attack people’s financial privacy. Therefore, blockchain technology is a way to feel a greater sense of control over transactions.

Short Selling

Many experienced investors think that short selling has an important part in the markets. It improves price discovery and rational capital allocation. At the same time, prevents financial bubbles and finding fraud.
Shorting is a trading strategy where traders are selling a borrowed stock with a belief that it will drop in value. So, they can buy it back later at a lower price. Academic research has shown the stocks of companies that complain about short-sellers tend to falter.

Investment prediction can be an ungrateful job

This term is already hot. Let’s show how much on the example of TESLA.

It is a stressful time to be an investor in Tesla, of course. On September 29th shares in the electric-car manufacturer soared by 17% after its boss, Elon Musk, settled fraud charges with America’s Securities and Exchange Commission (SEC). Just days later, on October 4th, a series of belligerent tweets by the firm ’s founder sent shares tumbling by more than 7%.

You might be interested Apple is charging its batteries with Tesla’s employees

The tweets in question were targeted at short-sellers, who aim to make money by selling borrowed shares and buying them back later at a lower price. With a quarter of its publicly traded shares lent out to facilitate short-sellers’ bets, Tesla is one of the most heavily shorted companies in America. Elon Musk has publicly feuded with short-sellers for years, calling them “haters”, “jerks” and “not super smart”. Research suggests that such insults are undeserved. Short-sellers are savvy investors who help to keep the market’s exuberance in check.

So, Traders Paradise believes that short-selling may continue in the next year. The bear market just started.

So, think about this investment prediction.

Unlike Amazon stock – which we truly believe will rise and get to new highs.

Our investment predictions are based on personal research and act as an observation about what we all can expect in the coming year. But we have to admit, nothing good. We hope we are wrong.

Anyway, we wish you a healthy, happy, and fruitful new year! You can have it!

30th December 2018
Market signal – HOW TO USE IT

1 min read

What is a market signal and how to use it?

The market signal is an unintentional or passive passage of information or indication between participants of a market.
For example, If a firm issues bonds it indirectly shows that it needs capital and also desires to retain control. Thus instead of equity capital, it prefers loan capital.

It is based on the technical indicators and usually is the sign for when to sell or buy a particular product.

It also brings the attention of users to the other options available, abnormal growth and short-term interests.

Using signals in volatile markets can help to point out opportunities to the investors and also will signal them if they disappear.

The market signal is indication or information passed passively or unintentionally between participants in a market.

For example, a firm issuing bond indirectly indicates that it needs capital. And that there are reasons for which it prefers loan capital over equity capital.

The reason can be the desire to retain control of the firm.

Every company doesn’t market in a static environment. The competitor and member of the outlet will make prediction and reaction to enterprises.

Their decisions process is a dynamic market mechanism. And based on rival actions or reactions.

The market signal is any activity of rival.

We want to understand rivals motive, intention and direct and indirect target news and competitive signals such as reduced price.

So, we have to understand the new product introduction and adopting new engineering technology.

The information delivers to the market mainly through the market signal.

If we identify, search, study and analyze the market signal, we take the strategic decision and contribute to analytical behavior trend. We also improve enterprise results.

For example, a well-reputed company can be judged by its income i.e. if its sales increases then its reputation in the market also increases.

Let’s take a look at the experts’ definition market signal.

In contract theory, signaling is the idea that one party (termed the agent) credibly conveys some information about itself to another party (the principal).

For example, examine Michael Spence’s job-market signaling model.

Potential employees send a signal about their ability level to the employer by acquiring education credentials.

The informational value of the credential comes from the fact that the employer believes the credential is positively correlated with having greater ability and difficult for low ability employees to obtain.

Thus the credential enables the employer to reliably distinguish low ability workers from high ability workers.

Signaling took root in the idea of asymmetric information, meaning a deviation from perfect information.

That says that in some economic transactions, inequalities in access to information upset the normal market for the exchange of goods and services.

Let’s suppose that two parties could get around the problem of asymmetric information.

How?

By having one party send a signal that would reveal some piece of relevant information to the other party.

That party would then interpret the signal and adjust her purchasing behavior accordingly. Usually by offering a higher price than if she had not received the signal.

There are, of course, many problems that these parties would immediately run into.

So we can say, the market signal is any action by a competitor that provides a direct or indirect indication of its intentions. Also, motives, goals, or internal situation.

A short note about George Lane (1921 – 2004).

He was a securities trader, author, educator, speaker, and technical analyst. Lane was part of a group of futures traders in Chicago.

He developed the stochastic oscillator (also known as “Lane’s stochastics”), which is one of the core indicators used today among technical analysts.

A March 2007 article quoted George Lane’s description of his famous indicator: “Stochastics measures the momentum of price.

If you visualize a rocket going up in the air – before it can turn down, it must slow down.

That’s the essence.

The market signal is developed by George Lane.

Momentum always changes direction before price.

This means as prices move down, the close of the day has a tendency to crowd the lower portion of the daily range.

Just before you get to the absolute price low, the market does not have as much push as it did. The closes no longer crowd the bottom of the daily range.

Therefore, Stochastics turns up at or before the final price low.

Lane was also President of Investment Educators Inc. in Watseka, Illinois. There he taught investors and financial professionals basic and advanced technical analysis methods.

He popularized the stochastic oscillator, a momentum indicator that uses support and resistance levels.

The term stochastic refers to the point of a current price in relation to its price range over a period of time.

This method attempts to predict price turning points by comparing the closing price of a security to its price range.

The 5-period stochastic oscillator in a daily timeframe is defined as follows:

%K = 100 * (Price – L5) / (H5 – L5)
%D = ((K1 + K2 + K3) / 3)

The H5 and L5 are the highest and lowest prices in the last 5 days respectively. While %D represents the 3-day moving average of %K (the last 3 values of %K).

Usually, this is a simple moving average, but can be an exponential moving average for a less standardized weighting for more recent values.

There is only one valid signal in working with %D alone — a divergence between %D and the analyzed security.

The market signal is an indicator that measures the relationship between an issue’s closing price and its price range over a predetermined period of time.

Risk Disclosure (read carefully!)

28th December 2018
Best-Paid Job In 2019!
3 min read

The best-paid job is so close to you, close to the new year, so think about them.

Ways to make money online are numerous. Our goal is to present you as many profitable deals as possible.

We want to help you find the best-paid job for you. And it is your goal too. To find the best-paid job that suits you more than any other.

You may not become rich, but certainly, this way of working will provide you additional and not small income.

But this is one of the best-paid jobs from home.

And know what, those of us who have worked from home for years wouldn’t dream of going back to a corporate office. Ever. At any point!

It won’t always be easy, and you have to work very hard, you will make mistakes and failures along all that path.

But be honest, the internet has opened up so many possibilities to people regardless of age, location, or background to build a sustainable, online business or side project that can make extra money online every single month.

So, let’s start. What can you do from your home and earn decent money?

1. Trade or invest from home is one of best-paid job

Trade from home is a totally online job.

And it can provide you a quite nice income. Or to be one of the best-paid jobs.

Once upon a time, people relied on the services of a stockbroker, who would make buy and sell orders on the customer’s behalf.

Today, individuals are able to execute buy and sell orders themselves in a fraction of a second using computerized trading services.

But, reading online articles doesn’t make you qualified to trade from home.

Reading the classics of investment literature could be helpful. But the best way is to set aside six months to practice trading with real-world data before investing your money.

You can use some demo account and practice.

Before deciding to buy or sell any stock, you should carefully research the company, its leadership, and its competition.

Make intelligent decisions about what you can afford to invest. Consider investing a portion of your money in an electronically traded index fund, which holds many stocks.

To that end, we present our top three stocks to buy for the long-term:

Buying marijuana stocks can be a best-paid job

The trade becomes more fundamental than gambling. There lies the opportunity and it can become one of the best-paid jobs in 2019. The concept is viable. Moreover, the use of pot will increase because of the legalization trend propagates. The millions of more potential users will access it.

It would be wise to take small positions. Don’t just lay the bet on one perfect entry point. Also, there are no guarantees when investing in stocks.

It’s important to consider the size and never bet more than you can afford to lose.

When looking at potential marijuana stocks to buy, it’s important for investors to remember that there are many ways of trading a concept. Also, not one method is perfect.

Here are three marijuana stocks to buy in 2019:
- Canopy Growth (CGC)
The first reason, the Constellation Brands invested $4 billion in it. So, you can be comfortable joining them in their bet on CGC stock.

If you are going to risk money on this market, you would like to do it in the one that has a strong balance sheet.

It sounds like CGC has good plans to open up more markets to follow the legal path expansion. Constellation made a multibillion-dollar bet on Canopy Growth because it thinks cannabis is a “once-a-century disruptive market transition” and that Canopy Growth is the best marijuana supplier in the world.

Constellation believes the total addressable global market could top $230 billion within the next 15 years. So, projects that Canopy could realistically claim up to 40% of the Canadian market and between 5% and 15% of the market in the rest of the world, including the United States.
- KushCo (OTC: KSHB)
KushCo is a dynamic sales platform. It provides unique products and services for both businesses and consumers in the cannabis industry.

It regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe.

An ancillary play, they have the opportunity of supplying both the legal and black market with their packaging products.

We believe KushCo to be the best additional play in the current market. They have a strong management team. Also, solid execution track record, and servicing the market. We really think their stocks are good investments.
- Innovative Industrial Properties
Stocks of REITs can be attractive for marijuana investors in comparison with pure-play marijuana stocks because REITs spread their risk across multiple leaseholders.

Even if one or two fail, it’s not catastrophic to the whole investment. Innovative Industrial Properties currently owns nine properties, all of which are either greenhouses or indoor facilities used for cultivating marijuana.

2. Launch and grow a startup

Launching a startup can be a very exciting experience and best-paid job.

The first mistake is that founders tend to over zeal their efforts to monetize their products and services. Instead to build a strong base from which the startup can turn into a realistic company.

To avoid mistakes make your list of knowledge areas/special skills on the one side and passions on the other. Then try to connect each of them.

Your knowledge and skills should hybridize with your genuine passion. It means that you have a passion for some job to work and, at the same time, you have knowledge or skills which job requires.

The truth is that you need to love what you do and be damn good at it as well.

Startup founders face a lot of factors and barriers that can stay in the way of success.

Testing your business expectations should be done without investing too much time and money. When you found a winning product, double the original bid on it and focus on the winner.

That’s the whole truth and wisdom!

This world is content obsessed. And we are obsessed by trying to find the best-paid job. This one can be that one in the coming year.

3. A virtual assistant is a defenetely best-paid job

A virtual assistant is a contact made over the internet that assists in day-to-day tasks. Yes, like an assistant, only virtual! And this is one of the best-paid jobs.

These assistants don’t just help someone business run smoothly, they help their life run smoothly.

Whether it’s sending a thank you card to a friend or researching potential investors, a virtual assistant can do just about anything.

They take charge of not only the day-to-day business tasks but can even take hold of day-to-day personal tasks so you can keep focused on what’s at hand.

They can send flowers, thank you cards, or even just schedule an Uber or Lyft so you can go from one venture to the next without a single hiccup.

However, it is just about anything.

Setting up your own Virtual Assistant business may seem like hard work, but we have to tell you that it’s actually the easy part. Moreover, we think it can be the best-paid job.

Being a successful VA isn’t simply helping someone with their admin or supporting their business, it’s knowing how to manage and communicate with them.

If you want to be a VA because you think it’ll be an easy life and easy money then you’re in for a shock because the reality is very different. It’s a brilliant life once you’ve nailed it but there can be a steep learning curve at first.

Virtual assistants charge anywhere from $1 to $100 per hour. Sometimes even more.

But the sweet spot is generally between $15 and $30 per hour for executive assistant services and $40-$75 per hour for higher-level marketing or financial tasks. This definitely may be the best-paid job in 2019

Bottom line: We, here in Traders Paradise, found a lot of very interesting and profitable jobs for 2019. More about them you will read soon, in our new ebook. It’s up to you just to pick one of the best-paid.

Risk Disclosure (read carefully!)
27th December 2018
Grid Computing | The Powers of Distributed Cloud Computing
Grid computing, a descendant of the cloud and big brother to distributed computing.

Think of grid computing as the intersection of two core systems of organization: cloud computing and public utilities like electricity. At this intersection, grid computing is enabling you to tap into computational resources, centralized and not. Just like you would tap into the nearby energy lines for some of those glorious electrons that we rely on.

A modern power grid will have many sources of input. Power plants, for example, contribute a lot to the power grid but burgeoning technologies, such as solar panels and windmills, are democratizing power production.

Independent and artisanal power producers can contribute to the power grid and receive compensation. In some cases, this is excess energy.

Farmers, for example, may have solar panels to generate cheaper electricity locally. However, the farmer cannot store any unused electrons for future use, so they may choose to route that surplus energy back to the energy grid, where others can use it. One person’s wasted electrons are another’s fully charged Tesla.

Grid computing is much like the electricity grid. Contributors, big and small, can add to the grid. Users can tap into the computational grid and access services independent of the contributor.

The Cloud, Grid, and Distributed Computing

To better understand what grid computing is and its nuanced differences from distributed computing, it will be easier to first understand the barrier and limitations that grid computing is able to overcome. In other words, seeing the problems grid computing can solve will help us better understand what grid computing is.

The Limits of Cloud Computing Is Where the Grid Shines

Grid computing is a subset or extension of cloud computing. In a nutshell, cloud computing is the outsourcing of computational functions. A common cloud service, like cloud data storage from Google Drive or Dropbox, lets a customer store their data with those companies.

Someone looking to use cloud data storage chooses between providers like Google Drive, Dropbox and iCloud. The company they go with would then be their provider of cloud storage. Customer support, troubleshooting, billing, networking infrastructure, and all aspects to providing the cloud service to the customer would then come directly and solely from the company they choose.

Pretty straightforward, right? One customer, one provider. However, we are looking for the limitations of cloud computing. Where do the perks of cloud computing fall short and leave room for other organizational structures like grid computing?

Common Criticisms of Cloud Computing:
1. User resources are committed to a single symmetric multiprocessing (SMP) system.
2. Unused computing resources sit idle and are locked into a single task until it is complete.
3. Relatively limited scalability.
Evolving Cloud Limitations with Grid Computing

Keeping in mind the parallels that grid computing has with a public utility grid, this type of computational organization can alleviate some of the common criticisms limiting cloud computing.

Let’s look over each of these claims and examine how a grid system could be more beneficial for a user over a traditional cloud service.

Cloud Limitation #1: User resources are committed to a single symmetric multiprocessing (SMP) system.

I’ll use a really basic example to showcase this pain point. There is a neural scientist looking to crunch two data sets (Set A and Set B). These data sets are huge and she’ll need to outsource the task to a cloud service.

The cloud service will have no problem running these data sets and she happily rents one machine from them to process her datasets. Remember that her datasets are exclusive to each other and need to be processed separately.

This means that the single SMP machine she leased will run Set A followed by Set B. Her single machine is unable to process both data sets simultaneously.

No big deal though, the cloud machines she leased are heavy duty and tear through the massive data sets in less than a few hours each. Processing the data will take less time than a full nights sleep for the scientist.

Now, what happens if she needs to do the same processing but for 100 data sets. Her budget still only gives her enough funding to access one cloud SMP machine. Being a person of science, she quickly does the math and discovers that it will take nearly two weeks to process all that data!

This article was originally posted on https://coincentral.com/grid-computing-the-powers-of-distributed-cloud-computing/
27th December 2018
The First Trade – How To Make It

2 min read

The first trade should be like a selection of a school.

You’ll need to decide on the kind of assets or securities you want to trade. After that, you’ll need to make is choosing the right broker or brokerage firm through which you’ll access the markets.

That’s very important because the broker you choose will have a direct influence on securities you’ll be able to trade. Also, on the tools, you’ll have at your disposal. On how much you’ll pay in fees. Hence, what final returns you can expect on your trades.

You have to find a broker that would charge relatively low fees and provide you with a full package of resources to make your trading experience easier.

And you have to choose the right strategy.

FEW WORDS ABOUT TRADING STRATEGIES

The main difference between trading and investments is that a trader seeks out market movements for profit.

On the other hand, an investor waits to profit from long-term price movements in the assets in their portfolio.

A trader will make tens or hundreds of trades within a week while an investor will buy and hold an asset for months or years.

The first step in creating your trading strategy is to have a trading plan.

The trading plan is like writing a business plan for some entrepreneur. A trading plan will help you to make a realistic decision in periods of rapid market movement when your emotions might lead you to make impulsive decisions.

The trading strategy should include specific goals such as: getting out of debt, retiring early, making your first million.
Also, your trading strategy should include your asset allocation and diversification moves.

As a beginner, you should not have more than 5% of your trading capital on any single trade. Make sure your trading strategy contains a mix of fundamental analysis of global events, like wars that impact oil prices.

But also technical analysis like trading rules based on price and volume transformations.

It is important because you can use this information to determine your entry into trades, your exit when the trade goes your way, and your escape when the trade goes against your plans.

For you, your best interest is to develop the disciple to incorporate stop/limit loss orders into every trade you place.

New traders can use technology to lower the entry barriers to trading by automating many of the activities.

THERE ARE SOME OF THEM:

* Trading bots – This is simply computer programs with instructions based on a predetermined set of market indicators and parameters.

You can use automated trading systems to trade stocks, options, futures, and foreign exchange products.

It is based on a predefined set of rules, which determine when to enter an order, when to exit a position and how much money to invest in each trading product.

Trading bots are especially helpful to beginner traders and sometimes, a bot can be an important market ally for reducing your losses.

* Stock screeners – That can help you filter the stocks in the market to narrow down potential winners before their big breaks.

It will help you identify top gainers and losers, stocks on turbo momentum, and stocks that are about to break out above resistance or break down below support lines.

* Social trading – This is simply a type of trading in which traders rely on user-generated financial content, collected from a variety of networks.

Social trading provides you the platform to be part of a community of successful traders and you can purify the wisdom of the crowd and make you able to make your own trading decisions.

The first trade isn’t like a first love, it is more about how to choose the best school

Always use a trading plan, don’t underestimating the importance of a trading journal, change trading strategy after every trade.

Test your trading skills on FREE DEMO ACCOUNT in a virtual environment before you start risking your own money.

Practice trading strategies so that when you’re ready to enter the real market, you’ve had the practice you need.

Risk Disclosure (read carefully!)

26th December 2018
Bitcoin Bear Market Is Far From Over

2 min read

Bitcoin and the Bear market? Why the bear markets are the best time to be in crypto?

Recently, Bitcoin made a strong rally. Enough to break past the neckline of its double bottom at $3,600 to $3,700. This can be an uptrend underway. If buyers keep the price above the area of interest, it will be possible.

If you apply the Fibonacci retracement tool on the latest swing low and high shows that the 38.2% to 50% levels span the former resistance. That might now hold as support. That means bitcoin could recover to around $4,035 and beyond.

Analysis indicates that the current Bitcoin price chart entirely mirrors that seen in late-2014 and early-2015, this market’s last moody bear market.

What happened then?

2013 marked a very significant year not only in the history of Bitcoin’s bear market but in the history of Bitcoin as a whole. In October 2013, FBI officially shut down the Silk Road.

Silk Road was an online black market. It also represented the first modern darknet market. However, Silk Road’s represented the crypto asset’s first form of widespread user adoption.

The Silk Road closed activity in October of that year. But the price of Bitcoin continued to rally until the end of November before the market had fully systemized the effects of that event.

It is impossible to know when Bitcoin has reached its peak while events are ongoing. Even more, the media didn’t help paint a clear picture of reality. At the time, even as the price of Bitcoin began dropping, headlines were incredibly optimistic.

But, during Bitcoin’s reversal period in January 2015, the general sense in media’s headlines was negative.

These headlines did not provide any positive signals to indicate the bottom of Bitcoin bear market, at that time.

Let’s go back to 2018! What is happening now with Bitcoin?

Although many have claimed that Bitcoin, has finally touched the bottom in 2018’s market downturn, data indicates that many investors still see plentiful amounts of value in blockchain-based assets.

The research group divulged that the 30-day moving average of Bitcoin flow into investors’ wallets has been on the rise, eclipsing the $400 million milestones as of November 1st. Well, $400 million out of Bitcoin’s current $65 billion market capitalization isn’t especially important. In June, this same figure was $300 million. In that period, the price of Bitcoin was approx $6,000. Those days it is about $3,750. November’s inflows should be seen as a bullish indicator.

The data suggests that investors have sought to accumulate Bitcoin at lower prices. Many investors started to allocate more capital towards Bitcoin, due to their long-term belief in the asset’s underlying value.

That wasn’t the case only with “personal wallets”. The institutional players via Grayscale Investments saw an increase in Bitcoin balances. It is an investment-centric subsidiary of the conglomerate that is Digital Currency Group (DCG).

Since the start of 2018, Grayscale has seen its Bitcoin coffers swell by 30,600 BTC to 203,000 total.

Now it accounting for more than 1% of the asset’s total circulating supply.

As seen in the chart above (sourced from LongHash), the wallets pertaining to Grayscale’s GBTC, a vehicle that allows retail and investors to purchase customized BTC on the U.S. OTC market, has seen month-over-month increases.

Markets move solely based on the demand from investors. Hence, if investors think a large rally cannot be maintained throughout the years to come, then some of the largest markets can experience steep sell-offs.

Bitcoin made the recovery and market watchers are pinning it on a number of factors. First is the Coinbase offering of crypto to crypto trading that could boost volumes in the retail sector. Next is the report that Mark Dow, the former IMF economist that opened a major short play on bitcoin after it hit its all-time highs, closed his remaining position also led many to think that he may already be seeing a market bottom.

Bitcoin could take a longer time to recover than in previous years.

Because the market is more structured.

But, it is wrong to claim that Bitcoin could drop to zero because of its 85 percent decline in price this year. This because, in the previous year, it demonstrated a 1,850 percent gain. And a major correction was expected after such a large movement.
But many aren’t convinced that lines can be accurately drawn. The Bitcoin industry has matured beyond measure in the past year alone, and even more so in the past four. Moreover, others have claimed that the worst has yet to come for crypto assets.
Vinny Lingham, CEO of blockchain-centric identity ecosystem Civic, explained that trading within the aforementioned $2,000-wide range is likely to continue for a minimum of three to six months, a common timeline in the eyes of Bitcoin’s short-term bears. The entrepreneur added that if a convincing breakout isn’t established by the end of Bitcoin’s six-month range, a strong foray under $3,000 wouldn’t be out of the realm of possibility.

The Civic chief noted that Bitcoin will likely remain range-bound between $3,000 and $5,000 “for a while.”

But Fundstrat’s Tom Lee said: ”Bear markets are a ‘Golden Time’ to be in crypto.”

Bitcoin bear market is far from over, this is the opinion of analytics.

Risk Disclosure (read carefully!)

20th December 2018
Bear Market profit! How to Make the Profit on the Bear Market?

2 min read

The bear market is here. Now is the time to focus on how bad this bear market can be. But also, how can you make a profit during the Bear market period. The questions exploded, and negative consequences are extensive and serious. But it isn’t impossible to make the profit over the bear market.

The investors and advisers are still focused on holding stocks. That means they are not prepared for the destructive emotions that come from this panic-crash.

How they could be when is the time of the bear market and their goal is to make the profit?

Hopefully, the market does not drop.

But there is a considerable risk now. Maybe the best philosophy is to be prepared for a disaster than to count that the worst will not happen.

Yes, we know. The Bear markets are brutal when they hit. That know any stock investor who was invested in stocks during 1973–1975, 2000–2002, or 2008.

The very first fact is that fortunately, bear markets tend to be much shorter than bull markets. If you’re properly diversified your portfolio, you can get through this period. And not to have much damage.

How?

If you are an agile investor, bear markets can provide opportunities to boost your portfolio. It can lay the base for long-term wealth.

Here are some ways to make bear markets very profitable.

First of all, don’t let yourself down, even when the market is down. Stay calm and focused.

The big truth is that in the bear market, the stocks of all companies tend to go down. Where is the catch? How to make some profit from this?

Bad stocks tend to stay down. Yes?

But good stocks tend to recover and back on the growth path.

So, the strategy is clear.

If the stock of a profitable company goes down, that is a buying opportunity.

Remember this!

Let’s say a few words about the second opportunity during the Bear market.

You have to look at the dividends! A dividend comes from a company’s net income. It is an important fact. Contrary, the stock’s price is determined by buying and selling in the stock market.

Say the some company’s stock price goes down but the company is strong yet, still earning a profit, and still paying a dividend.

It is a good opportunity for those seeking dividend income.

If you are one of them, you have to buy.

A bear market comes in tough economic times. It reveals who has too much debt to deal with. But also, who is doing a good job of managing their debt.

We are talking about the bond rating.

In this circumstance, the bond rating becomes valuable. The bond rating is a picture of a company’s creditworthiness.

The ratings of AAA, AA, and A are considered kind of investment-grade. The lower ratings are Bs or Cs.

A rating of AAA is the highest rating. This mark signifies that the agency believes that the company has achieved the highest level of creditworthiness. Therefore, it is the least risky to invest in.

If you find a stock whose company has a bond rating of AAA, that is good to buy!

Using ETFs with your stocks can be a good way to add diversification and use a sector rotation approach. Different sectors perform well during different times of the slump and flow of the economic or business cycle.

Do you remember the rule: Never put all eggs in one basket.

So, rotate your sector.

Bear markets are tough for good stocks. But they’re brutal to bad stocks.

When a bad stock goes down, it often goes into a more critical decline. Because more and more investors look into it and discover the company’s shaky finances.

What you have to do?

Short it?

Going short is a risky way to bet on a stock going down. If you’re wrong and the stock goes up, you have the potential for unlimited losses.

A better way to speculate on a stock falling is to buy long-dated put options. That gives you the potential to profit if you’re right but limits your losses if you’re wrong.

During the bear market, you can make the profit by using the margin. It can be useful. Using the margin is wisely, it can be a powerful tool. The great tactic is o acquire dividend-paying stocks after they’ve corrected.

A margin is using borrowed funds from your broker to buy securities.

Keep in mind, you don’t like to use margin before the stock corrected or declined.

Using margin when the stock is high and it subsequently falls, can be dangerous. But using margin to buy the stock after a notable fall is less risky.

Buy call option if you want to make the profit during the bear market!

Well, it is about speculating, not investing. Remember, a call option is a derivative, and it has a finite shelf life; it can expire worthless if you’re not careful.

The good side of a call option is that it can be low-cost to buy. And it tends to be a very cheap vehicle at the bottom, when is a bear market. This is your chance!

If the stock price sink, but the company is in good condition, betting on a rebound can be profitable.

How can you still make the profit?

For example, you can write a covered call option. Also, you can write a put option to generate income.

But the most important is to stay calm when the bear market starts. That will provide you with more chances to make the profit.

If you don’t plan to retire ten years from now or even more, a bear market shouldn’t make you nervous.

Good stocks will survive bear markets. After that period, they’re ready for the next bull market.

So, try not to get quickly out of stock. If you want to make the profit on the bear market territory.

Just keep monitoring the company performance for growing sales and profits. If the company looks fine, then hang on. Keep collecting your dividend and hold the stock.

This bear market had a fairly recognizable trading picture. We had the opportunity to see it before.

So, be patient and take your advantages!

Risk Disclosure (read carefully!)

19th December 2018
Growth fears pushed Russell 2000 into Bear area

1 min read

Russell 2000 – That is going to say, we’re about the way to a bear market.

Russell 2000 is pushed into the Bear territory by growth fears!

Looks like the Bear Market is already here.

What happened?

Small American stocks have tumbled into a big hole, reflecting mounting slowdown fears on Wall Street, reported CNN.

The Russell 2000 fell into the hole, in the middle of a wave of selling. The major market indexes are in red.

The DJIA, S&P 500 and Nasdaq are all well into correction territory. They are down more than ten percent from their previous highs.

Russell 2000 – Market indexes are red!

The Russell 2000 index of small-cap stocks dived into a bear market on Monday. It happened after a 20% decline since hitting a record high in late August.

That marks the first bear market for the index since the downturn that spanned June 2015 to February 2016, according to Bespoke Investment Group.

The media’s conclude that investors are scared by the Federal Reserve rate hike.

“Investors are showing real caution about the pace of economic growth for the US next year,” said Nicholas Colas, co-founder of DataTrek Research. “Confidence is falling,” added he for CNN.

The index contains 2,000 smaller companies that do little business overseas. As such making them highly exposed to swings in the domestic economy.

The index is viewed as a barometer for confidence in American growth.

Small-cap stocks sometimes lead the broader market. That’s the reason for making a Russell 2000 bear market a potentially ominous event.

It’s the fear of a recession and that is very real.

How the Fed made this situation as real?

The Fed’s job is monetary policy. They have to keep unemployment low and inflation under control.

Trade war worries

About 40% of the debt held by Russell 2000 companies is floating-rate, according to Peter Boockvar, chief investment officer at Bleakley Advisory Group. The cost to service that debt has climbed in tandem with the Fed’s two-year of raising interest rates.

“That’s potential stress if growth is slowing in the United States, which the markets are betting on,” said Boockvar.

Moreover, about one-third of Russell 2000 companies are unprofitable.

That number could rise if the US economy gets stuck.

It looks that the odds of a US recession over the next 12 months have climbed to about 30%. That would be the highest level during the nine-year economic expansion.

The Russell 2000 climbed 13% last year. The investors bet that US-focused companies would avoid getting caught in the middle of trade wars. Multinational companies like Nike (NKE), Apple (AAPL) and Boeing (BA) dominate the S&P 500 and Dow.

This was a safe haven. But it ended up being a very crowded trade. And everyone knows what happens to a crowded trade when the tide goes out.

The idea that smaller companies would avoid the fallout of the crackdown on trade was flawed. Now it is obvious.

The reason is that Small-cap stocks do business with big-cap stocks.

Markets were in the midst of the longest bull market in American history. This began in March 2009. But the bull has been stumbling pretty badly of late, leading some analysts to investors to wonder whether this is the start of a bear market.
It is commonly measured by a 20% fall from a previous peak.

After a brutal decline in US stocks in October, both the S&P 500 and Dow Jones Industrial Average slipped into the red for the year. That caused erasing all the gains made in 2018.

The benchmark S&P 500 has fallen more than 9% from it’s the all-time peak at the same time. So, stocks continue to slide.
That is going to say, we’re about the way to a bear market.

Risk Disclosure (read carefully!)

18th December 2018
Automated Trading Systems Can Increase Your Trading Profits
This is not something you can do over the weekend and let run happily ever after.

By Guy Avtalyon

People maybe get automated trading wrong. I’ll explain this. But first comes first.

Wouldn’t it be great to have a robot trade on your behalf and earn guaranteed profits? It’s everyone’s dream is to find the perfect computerized trading system for automated trading. The one which guarantees profits and requires little input from the trader themselves.

There are many automated trading systems available. But there are still a few burning questions that need to be answered.

First of all, what is the automated trading?

They are computer programs designed by expert developers to follow a given market algorithm, every minute of the day.

You should consider automation if you want to participate in the futures market but lack the time to monitor, formulate, and implement your own trading plan.

Automated Systems are programmed to look for trends, analyze market data, and apply specific mathematical/technical formulas which in turn generates signals: buy and sell orders – to go long or short.

The performance – whether hypothetical or live- is tracked in real-time and you can subscribe, activate, and deactivate any system at any time.

Automated Trading is comfortable

They are programs that place orders on behalf of the trader. A trader sets the essential condition for order placement based on technical analysis principles.

The system will place orders automatically based on the necessary conditions.

The automated trading system facilitates backtesting on a demo account which gives a fair idea of the efficiency of the strategy.
Nice!!!

But you need more about how an automated system can increase your trading profit.

In other words, can trading strategies that are automatically executed in financial markets be profitable?

The investment is a process, so automation is a logical conclusion. To be honest, auto-trade is like a driverless car. It can go fast or slow.

It all depends on the robustness of your design. People maybe get automated trading wrong. This is not something you can do over the weekend and let run happily ever after.

If you believe that manual trading is highly competitive and intense, then imagine sitting in a fast car without a steering wheel, accelerator or brake pedals.

So, why people fail?

The way to design a profitable trading system is counter-intuitive. It must be built to withstand erosion. People think of the best possible outcome when they design a strategy.

Wrong.

You can’t design and test drive snow tires in Sahara. There are some reasons for that, don’t you think?

You need to design automated strategies with failure in your mind. Always.

Take care of the bad scenarios and the good ones will take care of themselves.

That is not sexy, but you wouldn’t take some luxury car for a spin if you knew that brakes are porous?

When people think about failures, they think about stop losses or blow-ups. This is not the main issue, really.

The problem is transforming near misses into near losses.

Like you know, the market flip-flops all the time and does not care about your feelings.

The whole game is about:
1. a) moving the peak of profitable trades from small losses into small profits. In order to achieve a compounding system. That can only be achieved by having a solid exit policy
2. b) elongating the right tail: ride your winners and cut your losers short. Profits look big as long as losses look small
But as always, simple is not easy.

The privilege of simplicity is that it imposes itself, even to those who do not understand its sophistication.
Automated trading is a great tool to have in your trading toolkit.

We would say the hardest thing about it is codifying your strategy. Converting your strategy into code that a computer can interpret can be very difficult, but totally doable if you put your mind to it.

So if market conditions cause it to enter losing positions, it’s gonna enter losing positions, and quickly!

These losses can mount up so have proper risk management systems in place:

– Set a max drawdown limit that’ll kill the bot if it’s triggered
– Use stop losses on every trade

The strange thing is that it works and frankly speaking, no one would never be able to achieve the same results manually. You do not want to sit in front of a monitor and contemplate all the time.

Computer trades are like a psychopath.

It has no emotion and can do many more markets.

The algo makes better decisions quantified as a higher gain expectancy/trading edge than you would.

There is no question about it. It takes trades to makes money.

The mindset of an autotrader is different than a manual trader. You have to trust the system.

Once you auto trade, you have to let the machine take the trade even if your guts scream NO.

The good news is you can monitor multiple markets on your own time.

The machine keeps trading away and that is an incomparable feeling of freedom.

You can spend that time with your friends.

Isn’t it amazing?
17th December 2018
Position Trading

What are the benefits and disadvantages of this trading style? All explained.

By Guy Avtalyon

The position trading is an approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time. It also refers to the longest term trading. You can have trades that last for several months to several years. This kind of Forex trading requires a good understanding of the fundamentals. Let’s say it isn’t for traders without patience. So, why is that?

What does Position trading require?

Patience. Fundamentals force the long-term trends of currency pairs. Hence, it is very important that every new trader understand how economic details can affect the domestic financial outlook. In this kind of trading, the trader has to hold the trade for a long time. Stop losses will be very large.

That indicates that the trader must have stable capital. Otherwise, the trader will get a margin.

What does taking a position trading mean?

Taking position trading means a position you take when you buy or sell securities. If you buy a stock, future or option, it refers to a Long Position

But if you sell-short a stock, future, or option, it is Short Position. In short, the word position describes your action and view on security/shares/futures, etc.

By taking the position in the stock is something you do to earn money from the stock market.

Very simple.

How to earn money in the stock market?

By purchasing a stock (called taking the position) and then selling that stock (closing the position).

Or by selling the stock (called taking the position) and then buying that stock (closing the position).

However, the duration of your position can fluctuate depending upon your strategy.

It could be for a few seconds, or a few minutes, or a few years, or 20 years. It depends on your personal psychology and goals you want to achieve.

What is the basic analysis of this trading method?

Read the charts or use some fundamental analysis before trading.

When you buy a particular stock always lookout for high volumes.

Of course, don’t buy all the shares at once. Buy it in installments. You have to buy at a lower price. So averaging can helps a lot and don’t forget to put stop loss.

Sometimes market swings beyond our expectations and things may not go well. In that case, you need to exit on time and always make a substantial profit and move on.

You are not married to the stock, so you can always buy it when it corrects.

What is position trading?

Let’s say it again, the position trading, also known as ‘trend trading’, can best be described as a ‘buy and hold’ method.

If you want to become a forex position trader you must be the independent brain. Sometime you must ignore popular views and make your own presumes like, to where the market is going.

You must understand fundamentals and have good vision into how they affect your currency pair in the long run. First of all, actually, you must have enough capital to withstand several hundred pips if the market goes against you.

Long-term Forex trading can net you several hundred to several thousands of pips. If you are too excited being up 50 pips and already want to exit your trade, examine moving to a shorter-term trading style.

You have to be very patient for this trading style.

For position trading, historical points of support and resistance are maybe more important than indicators. The most important is to draw straight horizontal lines and use different time frames. The longer the time frame, the more important level. For this trading style, once again, you must have enough starting capital, you must be patient.

So, what might entice you to try this style?

Firstly, position trading is very convenient for new traders. The speed isn’t as wild as day trading or swing trading. Hence, you have a bit more time to plan your activities and create a trading plan. On a wider level, position trading can also be more attractive in different types of markets.

For example: If you are in a bull market where there are strong emerging trends, it can be a good time to engage in position trading.

You will not see the result fast, it will take time. We are speaking about months and years, not hours or days.

16th December 2018