Year: 2018

How Do Dividend Paying Stocks Work?

Dividends may be a sign of good stock but never invest in some stock just because of dividends it pays.

By Guy Avtalyon

The dividend is like interest on a loan. A company that earns real money every year operates with it on three options. First, the company can reinvest earnings to make new products, find more customers, or to make business more efficient. Some companies can buy back their stock in order to own more of the company and more profits. The third way is to return some of the money to shareholders through dividends. It is very important to understand how dividends work. Stocks that pay dividends can be great to hold.

Dividends are like interest on a loan. Assume you loan your relative $1000 for a year at 5% interest. You expect to get back your $1000 plus that 5%, which is $50 more. The dividend is that except the $1000 stays in the company because you still own part of it. It’s your part of the profit the company made.

Unfortunately, not all companies will pay dividends. Some companies don’t make the profit and they can’t pay out anything. Other companies flow all of their money back into the company to grow faster. The rule is there is no rule. What works for one business doesn’t work for others.

Is investing in dividends a good choice?

I know some people who like to receive dividend checks. For instance, some reliable companies may payout every three months. Even if the share price has small moves every year, investors still make money from these dividend payments and they don’t have to sell their shares to get that money. The check comes at the end of a certain period.

This money gets paid to all shareholders, no matter how many shares they own. The retiree who owns one share of some company gets the dividend in the same way as the wealthy hedge fund manager. The reliability of dividends gives them attractivity in investment.

Do Stock Pay Dividends?

High dividend-paying stocks have rates of 5%, 10%, or even more.

Why they are so high? It is simple to explain. Let’s see this simplified example.

A company with a share price of $100 which pays a dividend of $1 per share every year has a dividend yield of 1%, while a company with a share price of $10 which pays out $1 per share every year has a dividend yield of 10%.

Notice that the price you pay for a stock and the growth of the business over time determine how much money you make on that stock. Keep in mind there’s no shortcut to investing little money with high returns. Unfortunately, but that’s true.

The easiest way to find if a stock pays dividends is to look at any stock research site. You will find a dollar amount for the latest dividend announced, the annual amount paid, and the current yield. Always check the dates. The point is that stock may pay out one quarter and not the next.

Is it profitable to invest in the high dividend-paying stocks?

High dividend-paying stocks are paying more than the average dividend rate. Companies that pay high dividends are considered as good companies. But they may have some other reason like to attract investors to drive up the share price. It also may be a sign that the share price has dramatically gone down recently. Sometimes this means the stock is on sale or that the company is in trouble. You can’t know this just by looking at the share price or how high is the dividend amount. You have to have better information about the company’s business and its current financials.

The company must choose to pay a dividend and the amount paid may vary. Not all companies will regularly raise the number of its dividend payments.

Is investing in stocks that pay dividends a good strategy?

Yes, especially if you want regular cash coming in reliably. Reliability is the keyword because dividends aren’t guaranteed. You still have to do your research. It is better to buy great companies, not just stocks that pay the highest dividends per share.

High dividend stocks are not necessarily a good investment. Pay attention do they pay them every year, every quarter or does a certain company follow a regular schedule for the rise of its payment amount. It is possible to make more from dividends every year per share than you initially paid for the stock. Keep in mind this the tricky part of a dividend yield of stocks; it’s always calculated relative to the current price, not what you paid. A company that pays a huge dividend is a warning sign. How does the company plan to maintain its payment strategy? Is this a temporary trick to raise the stock price to fake levels? Always think about reliability.

Does value investors make money from high dividend-paying stocks?

Dividends are excellent. And value investing looks for underpriced stocks.

“What are the best stocks to invest in?” or “What are the reasons to invest in a company?”, can be the questions you ask yourself. In that case, dividends may be a sign of a good stock. But not all great stocks pay dividends, indeed. Some never do. Some pay from time to time. It depends.

If you pick a powerful company that gives you a check every quarter and if the price is right relative to the value, then you have no problem. That gem belongs to you.

18th September 2018
Blockchain Telecommunications: The New Era of Crypto Phones

2 min read

Crypto users could soon be enjoying more hardware choices. Multiple smartphone manufacturers announced plans to integrate blockchain technology into their products in the coming months. Blockchain telecommunications is taking crypto users to the next level with integrated decentralized applications (Dapps) and much more. Get ready for crypto phones.

Blockchain Telecommunications

The telecommunications industry is undergoing the start of a blockchain revolution that has the potential to reshape the market for years to come. Analysts have long predicted the integration of these technologies. One study placed the level of future blockchain investment by telecommunications manufacturers at around $1 billion over the next five years. The majority of these future investment funds target the development of Dapps. Dapps are at the core of this blockchain telecom infusion.

This article by David Hamilton was originally published at CoinCentral.com

Risk Disclosure (read carefully!)

18th September 2018
How to Find Dividend Yields on Stocks’ List?

By Guy Avtalyon

The dividend yields are metric. For every single investor, the most important question is ‘How much money can I make’. At least, the reason to buy a stock or bond or ETF is to make money. It is important to understand what people mean when they talk about yield, return, and types of both. Investors have several ways to measure the money they expect to get, Depending on their investment strategies, investors have several ways to measure the money they expect to get. Managing risk is important.

What produces the dividend yields?

Yield is the earnings you can make with an investment in a period of time. It’s the cash you get from making the loan. For example, you loan a friend $1,000 for a year. And your friend agrees to pay you back that $1,000 in twelve months, as well as $10 a month. For that loan, you’ll get back the principal as well as an extra $120.

That means you’ll end up with 12% more money at the end of the year than you started with. This is easy to understand with loans and it’s similar to bonds, where the bond rate and payout periods determine what kind of money you get back and how often you’re paid.

Do bonds give yields?

But bonds are a little bit more complicated than loans because you can buy them from other investors. But the yield falls as the price rises because the yield depends on both the interest rate and the price you paid.

Let’s say someone else bought the loan to your friend for $1100 and the 12% interest rate stayed the same, they’d only get $20 for the year, or 1.82% interest. That’s a different yield from 12%, don’t you think.

What determines the yields?

The yield depends on both the interest rate and the price you paid. If you want a higher yield, you either need to earn more money from your investment every month or pay a lower price for the investment.

Hence, there are different types of yield you can measure. But, you must know how stocks produce yield, for this to make sense.

Do stocks give yields?

Stocks don’t pay interest, but stocks may pay dividends. The dividend yield is easy to compare to other investments if you know what you paid for a stock. The problem is you can’t measure what everyone else paid for it. There are more possible to see the current yield of a stock, which divides the annual dividend payout with the current price of the stock.

How to find dividend yields?

If you want a regular cash income from your stock portfolio, you’ll have to understand dividend yield. The dividend yield is a pivotal metric that enables investors to analyze stocks. According to stock capability to generate dividends traders are trading them at many higher prices. To define dividend yield, you’ll need to know the total of a stock’s dividend payments per year and the current stock price.
To calculate dividend yield you’ll have to add all the dividends paid per common share over the last year. Further, divide this amount by the current price. Then, multiply this result by 100 to discover the yield.

For example, if the stock trades at $10 per share, the dividend yield is $0.70 divided by $10 and times 100, which is 7%.
That would mean that for every $100 you invest in this stock, you receive income of $7 per year. Compare dividend yields of different stocks, and you’ll find the best investment choice.

What is the difference between dividend yields and returns?

But, not all stocks pay dividends. You might earn a great return that never pays you a penny. But it is possible you’ll get money from selling a share for more than you paid for it. The same goes for bonds.

Slowly, that combination of the profit you made from the sale plus any dividends you’ve received makes up your total return. Exactly as with yield, the price you paid is the most important factor in your return.

But notice that there is one more essential difference between yield and return.

The yield looks to the future.

What can you earn in a year, what dividends will you receive, what interest payments will you get? These are predictable, depending on the risk of the investment of course.

Return looks to the past.

It includes interest or dividend payments, but it also depends on the price at which you sold your investment.

What to maximize yield or return?

The real goal of understanding yield and return is to compare how similar investments meet your investing goals. Any investment that returns money to you, produce regular income. If you can live from the incomes of your investments, that can be a great modus operandi.

But if you want to build real wealth and you have enough for a long-term investment, total return is more important. But never ignore yield because it can be a great way to make better your returns. Pay attention to yield but look for good returns from share price realization as well.

Whatever, being careful about the price you pay for investment will help you improve your yields and total returns.

17th September 2018
Japanese MoneyTap app Connects 60 Banks with Ripple

1 min read

The payments network Ripple is looking to launch the MoneyTap application with support from the SBI Ripple Asia Japanese Bank Consortium later this year. That will cause Ripple to have a large share of the Japanese currency transfer market, maybe the largest. MoneyTap has officially launched its website which is a major step forward connecting several Japanese banks via Ripple solutions. It said, in March this year, the app would make it easier for banks to settle round-the-clock domestic payments in Japan. MoneyTap App is going to reduce fees associated with traditional money transfer services. The fact is that Japan is residence to a huge market for fintech, or financial technology, particularly in the areas of blockchain and cryptocurrencies.

The deal between Ripple and the consortium has been planned for a few years.

Japanese MoneyTap app and Ripple

But now it looks like the firms involved are setting the closing preparations to launch the MoneyTap application in Japan. The app which was announced earlier this year, but the website for the service went live yesterday, September, 13th.

The main purpose of the new technologies is to be applied in a wide range of industries to facilitate and enhance a great number of processes. The banking sector is one of the spheres that eagerly adopt new solutions with a view to improving its functioning.

MoneyTap is a kind of a “simple bank transfer application without charge” and “a new bank experience application provided from the consortium for domestic and foreign exchange”.

Speaking about the fund transfer system in Japan, transaction fees are quite high and requires a lot of time to be executed. By implementation of MoneyTap app, the situation will be changed. Via the solutions offered by Ripple, it is planned to reduce fees and to achieve a possibility to carry out reliable same-day transfers.

The application is not ready for download just yet. But, the website going live shows that it will be soon. The projected launch date is autumn 2018.

Ripple’s own blockchain technology is known mainly as the underlying network for its cryptocurrency, XRP, known as ripple too and it is also used for real-time transaction settlements.

Presentation of the new app

The new app, Money Tap will offer a money transfer too, so that will be available on iOS and Android phones. That characteristic place them to be one of the first apps with such functionality that will be used by a number of banks at the same time.

In the beginning, the application will be working in collaboration with three of the members of the SBI Ripple Asia Consortium. The first banks involved are SBI Net Sumishin Bank, Suruga Bank, and Resona Bank. This preliminary launch will be followed by the service for the other 60 plus members.

Ripple hits the center of Japanese money transfer

Ripple are hoping that the move will place them at the center of the huge Japanese international money transfer market. They believe that can offer more affordable transfer than SWIFT is. Money Tap app could be more efficient in transfer smaller amounts of money than was previously feasible with traditional options.

It is interesting that it will also compete with remittance companies like The Western Union Co. (WU). The launch will also support Ripple’s claims of offering a robust and dependable technology platform that can form the strong support of the modern payment system.

Japanese MoneyTap app and Ripple keep the project under the veil

We must say that practically no information on the project has been already revealed, but it is clear that Money Tap will be used by the Japanese Bank Consortium that unites over 60 local banks. That is almost 80% of the country’s banking system.

The CEO of a Tokyo-based Strategic Business Innovator Group (SBI) has once said that they are also examining a possibility to use XRP for bridging currency on the Money Tap fund transfer platform. Now SBI is working with different cryptocurrencies.

Ripple solutions and XRP tokens represent a special interest for SBI. Just a few months ago, the company established its crypto exchange called VCTRADE.

Good news for Ripple, more and more financial institutions are implementing Ripple’s technology to make easier their processes.

But fans of the Ripple project, particularly XRP token, should hold off on celebrating just yet. Like with many of the projects Ripple is working on, it could be that the service exists without using the token itself. Whilst this would likely be positive for those invested in terms of exposure, it would not represent automatically adoption of XRP in itself.

It would make sense for Ripple to sideline their XRP token given that it is still not clear whether global regulators deem it as a security.

Risk Disclosure (read carefully!)

14th September 2018
How to select trading signals?
Trading signals are important for successful trading but too many of them will confuse you

By Guy Avtalyon

To select trading signals, your beliefs are the most important driver.

You must have the right trading signals to guide you in the intensively competitive environments you will find in the stock market, futures, forex, and options markets.

The challenge is that it is not as simple as finding the best trading signal. Because just like everything else in your trading system, your signals should be based on your beliefs and your trading strategy.

If this is not the case you will have trouble pulling the trigger when you get a signal.

Because of the way you enter and exit the market should be based on what you believe about your trading strategy and how the markets work.

How to select trading signals based on beliefs?

Your beliefs about the market are the most important determinant of your ideal trading system.

The first step to ensure you select a trading signal which matches your beliefs is to document your beliefs about trade setups, entry signals, exit signals, and initial stop losses.
Some traders believe that there is absolutely no value in using trial and error trying all different entry triggers / buy signals/sell signals hoping to find something that works.

According to such traders, trial and error in trading signal selection will result in a curve-fitted, worthless trading system. That can be true at some point.

The influence of trading signals

When you apply the trial and error method, you get a curve showing the past data. You can get a system that works fantastically well on past data but doesn’t work tomorrow or into the future.

Maybe, for that reason, it is better to start with your beliefs and your trading strategy and select trading signals that support these to reduce your chance of curve fitting.

When you change your approach you can found enormous benefits which included:
- Greater clarity on objectives
- Reduced need for optimization
- Greater real-time profitability
- Reduced development time
- Simplified system design
To be clear.

The internet is a wonderful tool, but the vast amount of information and companies/people dispensing forex trading signals and advice can be daunting and confusing to newer traders.

Advanced traders already can recognize what constitutes quality versus hype.

Forex signal services

No one forex signal service will ever meet the needs of all traders, but a good service must.

Few trading services post their performance. There are several reasons for this:

The performance is simply not worth showing as it does little to motivate.
The raw data, no matter how robust, falls on deaf ears.

The first consideration is that looking for a trading signal that generates a profitable trade on its own is nonsensical. You may get the best entry signal ever created. It will be useless unless you adopt this rule as part of your trading system. Also, you’ll need all of the required components working together. Otherwise, there is no way you will make money in the long run.

A complete trading system needs each of the following:

Objectives
Setup
Entry trigger
Initial stop loss
Exits

Money management and Position size rules

The trade entry trigger is just one part of the complete system.

Many people also suggest that it is the least important part of the system. Entry triggers are the area most prone to curve fitting, over-optimization, and random noise in the market.

Actually, how you exit a trade once you are in determines how much profit you make from it.

Remember, simple is better than complex. Fewer rules is better than more rules. Complex trading systems with many rules may not perform well in the future.

Well, it is more difficult to warp fit a simple system with several rules to past data. Hence, if you have many rules and complex manipulations you can easily fit your system to the past data. This will perform it largely useless in the future!

One trader told us: ”Use simple trading signals that fit your trading strategy and beliefs”. That helps a lot.
13th September 2018
Do trading signals work?

2 min read

The answer is Yes!

Of course yes. A successful trader can be a great signals provider.

They work but you have to follow instructions, do right money management and choose a good signal provider that show real performance, not scammers.

Off course there are signal providers which work. Some are even free of costs to you, Some work on a subscription basis. The problem is to find the right signal on these platforms.

Yes, they do. Trading signals work.

But it has to combine with the overall market scenario as well. Awareness about the happening in the financial world on micro and macro levels is important to fully trust a trading signal.

Trading signals always require a stop loss to be put along while following a signal.

Trading Signals are meant to be an assistance, not reliance. One should never ever follow trading signals blindly.

Always do your own research before investing in any asset class be it forex crypto or stocks. Trading signals work as a good confluence for trade setups.

That helps!

Trading signals in Forex trading.

It is possible to find a number of courses for FX signals. There are a lot of websites that are dedicated to such a service, and social media makes it possible for people to share Forex signals free versions and premium versions. There are three main groups of people that are responsible for sending such signals out

Traders
Affiliates
Scammers

And you will see, many of them are scammers but a very few honest people are still out there.

Forex trading signals serve as signposts or indicators of when/how to act on a particular currency. It is important for investors to know how to read signals.

Trading signals work in a variety of designs, from bear/bull designs to geometric shapes, and can bring attention to important currency details.

Why should an investor have to know how to read these things? For the same reason, drivers have to learn how to recognize road signs: if you don’t know what the signs mean, you could end up ruined. Forex signal trading cannot be taken lightly. It is home to a rapidly changing environment where some online brokers manipulate the original data feed to cause errors in the marketplace and earn a profit over them

We show you these groups in the order in which they can be trusted.

It is common to find traders that are looking to share their ideas with the outside world.

Their main aim in doing so is to earn a reputation of being a good trader, help out other people, and simply support the place that was once supporting them when they were new to FX trading. Usually, it is possible to find traders that are sharing FX signals free on various forums.

What does such a trader, signal seller try to aim?

Traders try to send reliable signals by performing their own analysis and providing exactly the same information that they are using in their own trades

Affiliates represent another group of signal providers.

You can get free daily Forex signals from this group once you have signed up for an account with a broker using their affiliate link.

In this way, affiliates can still make a commission on the trades you make, but the signals remain free to you. However, not every person has enough time to support both his affiliate business and his trading activities.

So you should be cautious about this group of signal providers.

Sometimes the quality of their signals may drop because they put more accent on their own promotion. But you can still treat such signals with a decent level of trust.

But remember, it is a must to have former testing of their daily free Forex signals on a demo account.

Scammers are the people you should be avoided, because they are only interested in making an affiliate commission from you, or just making you purchase their ‘free’ signals. Such providers usually employ quite obvious methods of attracting clients. They provide a few free Forex signals online and later ask you to buy premium signals.

After you have signed up for free, you will be sent some signals, but they will do the same to the other people that have signed up.

Some of these people are going to receive BUY orders, others will be provided with SELL orders. This way a scammer can split his audience in half.

The first 50% is going to profitable and another 50% will be losing.

So do not fall for scams, as they cannot deliver anything close to the best Free forex signals. Some trading signals/strategies work very well as long as they aren’t “overused”.

You can have a go with them and see if they can produce what they claim. They have to let you know the result. If they can’t, never subscribe to that signal service!

Risk Disclosure (read carefully!)

11th September 2018
Signal Provider – How To Pick Right One?

Picking the good signal provider can be harder than anyone can imagine. Truly nightmare.

By Guy Avtalyon

A signal provider can help you but also ruin you. Many forex traders use forex signal providers’ services to make money. Traders who struggle to make profitable trades in the forex market can leverage off successful forex traders by using their signals in their trades.

Not every forex signal provider out there is authentic and attempting to make sense of which ones are con artists. And ones which are genuine can be an overwhelming assignment.

Finding the right signal provider is the challenge

Finding a reliable forex signal service can seem like a challenge. There are those signal providers that are professional and transparent.

And unfortunately, there are those providers that do not always have their members’ best interest in mind.

It is up to you. You have to do your due diligence. To be sure that you are working with an honest forex signals provider. The one you can trust and have faith in.

There are several things the trader would consider when are going to pick your signal provider.

A trader should be aware that there are a lot of hardcore scammers in the market. They are working very hard to provide fake, low quality, and substandard forex signals.

Most of these hardcore scammers have no background. Or training in any financial matters. And usually, feed the trader with performance statistics that are imaginary.

But yet convincing to a trader who is not smart enough.

The best way a trader can deal with this problem is by spending at least 5 minutes looking at what other traders are saying about this respective signals provider.

This will help him or her in making an informed and proper judgment.

Another way is by the trader looking at the level of detail contained in the signals provided by the forex signal provider. If he or she realizes that it just entails a few charts with a loss or profitable line, the trader has a reason to think twice before following such signals.

A trader should look for testimonials about various forex signal providers available in the market. A trader should look at what other players in the industry are saying about the available signal providers. This will enable the trader to choose the best provider in terms of accuracy, quality, timeliness, and affordability of the services offered.

What trader should check?

The trader should check the number of TPs the providers have in one trade.

Also, the trader should check how the providers put together the performance statistics.

Check if the providers have a trade by trade statistics.

The bottom line is that any trader who wants to be profitable in the long term should start learning by himself or herself about forex signals through experience and self-training.

If you search for forex signal providers on the web, you will most likely be unable to recognize the sites of scammers from genuine suppliers.

Scammers’ sites are so comparative and competitive.

Sometimes you can feel that clueless forex merchants typically get gotten in the scammer’s site rather than the genuine forex signal supplier. When they understood that the signal is not profiting, it would have been past the point of no return.

The scammers had officially taken the cash and it is past the point where it is possible to do anything.

Signal providers will give you entry and exit signals but remember you have no idea how they came up with the entry and exit points, all you have to do is follow.

With all these promises, you will be tempted to subscribe. That is the moment it will dawn on you that whatever you have subscribed to is a pack of lies.

Forex Signal providers are typically separated into two different groups

It is based on how they generate their trading ideas – technical analysis and fundamental analysts.

Technical Analysts base their trading decisions on chart analysis including support and resistance levels, candlestick patterns, price channels, market structure, or other technical approaches. Many technical analysts have a proprietary method for analyzing the markets. And the highly successful ones have spent many years researching and testing their methodology. All over historical data and in real-time market conditions.

Fundamental Analysts base their trading decisions on economic and news related data. This could be in the form of long-term interest rate analysis, inflation, central bank policy, employment reports, sentiment surveys, and more.

Some are longer-term position traders while many others are shorter-term traders that try to catch volatility spikes after an anticipated news release.

Some traders may think “reliable” means having a high win rate, but that is not really what you primarily want to be looking at.

Actually, win rates are not that important as a metric by itself. You must also analyze the average risk to reward in conjunction with the win rate.

There are strategies with 90% win rates that can lose money and then there are strategies with 30% win rates that can make money.

Another factor to consider is the technology the signal provider is using. Do they have a reliable platform to send out notifications and are there multiple ways for you to receive the alerts? But there is something important also. Do the trading alerts always detail the buy and sell signals, or present stop-loss levels and targets? Or do they only provide superficial information such as entries but no exit details? These are some of the factors you need to consider.

So how can you find out if a provider is reputable and worth your time?

Sign up for a Trial – Sometimes this the best way to get started is by signing up for a forex signals trial. You may get a real sense of the quality of service by diving in and taking a test drive. Many signal providers offer a 1 or 2 week trial for members.

Join their Email List – Another way to find a provider is by joining their email newsletter. You will find the value that they provide for free. So, you can evaluate whether their premium forex signals service will meet your expectations.

Check their Track Record – Every single reputable FX signal provider will implement a performance record detailing their published trades. This is a good way to find their average pip profit per month. Their risk parameters, average win percentage, and other related metrics.

Google them – Yes, simply Google them. Are they mentioned in any important trade publications or articles? What type of social following do they have?

Do everything possible to find with whom you are dealing. Just don’t be one of those naysayers.
Check it, try it, test it, and make your own conclusion.

10th September 2018
Trade signals – What Is It and How To Use?

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2 min read

Trade signals are simply when someone is making a trade call. Either to buy or sell a security or other asset, generated by analysis.

They show you that it is a good time to buy or sell a particular security.

So if they believe an asset will go higher or lower, they will tell you via some kind of message, email or software. After that, it is up to you to follow or not to follow.

Actually, trading signal is a alert that is based on technical indicators.

Trade signals come in a variety of forms. They can be bull or bear pennants, rectangles, triangles, and wedges, as well as head-and-shoulders chart patterns. Trade signals may also bring attention to abnormal volumes, options activity, and short interest.

There are lots of trade signals

As anyone can make calls, the challenge often is finding one run by an actual trader. These type of services exist in the institutional world as well. They just tend to be a little more accurate than ones you find available to retail traders.

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 capita,l it prefers loan capital. It is based on 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.

Trade signals in volatile markets

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

There are usually two ways to deliver market signal: send news and activity. The market signal expects to deliver consumer, rivals and outlet member. And the earlier studying of the market signal which is mainly a concentration of signal’s influence.

For instance, it is the price signal where costly products make the customer think it is made of high-quality raw material.

That is a kind of advertisement in which the main aim is to make the customer think that a certain enterprise has more advantage.

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.

Trade signals in Forex

In Forex, traders are using trade signals all over the world to aid them in making critical decisions about their trades. They are one of the most important tools a trader has, and almost all traders choose to use them in one way or another.

There are many types of signals systems, some are offered for free while others for a fee but take in mind that a trustworthy service should include information about taking profit and stop loss configurations.

A forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time.

Who can generate the trade signal? Human-analyst or an automated Forex robot supply a subscriber of the forex signal service. They are usually sent via email, website, SMS, RSS, tweet.

The majority of signal providers focus on supplying signals based on technical analysis and a minority work on fundamental analysis or price action.

Technical analysis, such as Ichimoku and candlestick charting, show both short and long-term price trends giving the signal provider flexibility in supplying a range of trade options.

The fundamental analysis gives longer-term trade ideas. Price action gives extremely short-term trade ideas, often more suited to scalping.

Trade signal in the stock market

The signal in the stock market is developed by George Lane. It is an indicator that measures the relationship between an issue’s closing price and its price range over a predetermined period of time.

A short note about George Lane (1921 – 2004): He was a securities trader, author, educator, speaker, and technical analyst. He was part of a group of futures traders in Chicago who developed the stochastic oscillator (also known as “Lane’s stochastics”). This is one of the core indicators used today among technical analysts. Lane was also President of Investment Educators Inc. in Watseka, Illinois, where he taught investors and financial professionals basic and advanced technical analysis methods. He popularized the stochastic oscillator.

Stock trading signals

Stock trading signals are simply the implementation of a trading system or method.

The actual signal is given when a traders system determines all criteria necessary for a new buy. Signal are met now and a new buy order can be placed by the trader.

Stock trading signals are most often associated with technical analysis. This is a study of price action and derivatives of price action.

An example of a technical analysis price indicator may be a Moving Average or MACD. Traders can receive stock signals on thousands of trading methods.

Trading stocks can be extremely lucrative when you are able to find trading signals that are proven to be effective. Trusted stocks signals help you predict the market investing in stocks. Doing that with live trading signals sent directly to your device, in the app. With this, you will be able to get live rates on hundreds of different assets.

How does it work?

The software scours social media and accumulates posts, comments, etc that include keywords of interest. All this data is then filtered and crunched to produce interesting statistics. Showing the true public opinion using their words, giving an in-depth insight into public minds.

Risk Disclosure (read carefully!)

9th September 2018
What is Speculation? Trading or Gambling?

3 min read

The definition of speculation says:

The speculation involves trading a financial instrument involving high risk, in expectation of significant returns.
The motive is to take maximum advantage of fluctuations in the market.

Who are speculators?

Speculators are prevalent in the markets where price movements of securities are highly frequent and volatile. They play very important roles in the markets. Because they can absorb excess risk. And provide much-needed liquidity in the market by buying and selling when other investors don’t participate.

What is speculation?

Let’s be clear.

Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more worthy in the future.

Speaking about finance as a field, speculation is also the practice of engaging in risky financial transactions. In an attempt to profit from short-term fluctuations in the market value of a tradable financial instrument.

Rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, dividends, or interest.

Not one speculator pay attention to the fundamental value of a security. Instead, speculators are focused purely on price movements. Speculation can involve any tradable good or financial instrument. Speculators are particularly familiar with markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate, and derivatives.

Why speculators are important?

Speculators play one of four primary roles in financial markets, besides hedgers, who engage in transactions to offset some other pre-existing risk, arbitrageurs who look for profit from situations where fungible instruments trade at different prices in different market segments, and investors who seek profit through long-term ownership of an instrument’s underlying attributes.

Why wouldn’t we consult history?

The appearance of the stock ticker machine in 1867, removed the obligation for traders to be physically present on the floor of a stock exchange. Since then, stock speculation went through a dramatic expansion through the end of the 1920s.

The number of shareholders increased tremendously. Let’ say, from 4.4 million in 1900 to 26 million in 1932.

Whether speculation has a place in the portfolios of investors is the subject of much debate. Some investors believe the market is always fairly priced. They are thinking about speculation as an unreliable and unwise way to profits. Speculators believe that the market has a lot of variables and each of them is the opportunity for capital growth.

The view of what distinguishes investment from speculation and speculation from excessive speculation varies widely among pundits, legislators, and academics.

Speculation as higher risk

Some sources note that speculation is simply a higher risk form of investment. Others define speculation more narrowly as positions not characterized as hedging.

The U.S. Commodity Futures Trading Commission defines a speculator as “a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.”

The agency emphasizes that speculators serve important market functions. But defines excessive speculation as harmful to the proper functioning of futures markets.

Frankly, some speculation is necessary and unavoidable.

Why?

In many common-stock situations, you can find substantial possibilities of both profit and loss, and the risks therein must be assumed by someone.

True?

Many long-term investors, even those who buy and hold for decades, maybe classified as speculators. Of course, excepting only the rare few who are primarily motivated by income. Or the safety of principal and not eventually selling at a profit.

We already conclude the trading is art.

But we have to admit that speculators are real artists.

Yes, we know that some market pros have the opinion that speculators are gamblers. But as we said above, a healthy market is made up of not only hedgers and arbitrageurs, but also speculators.

Economist John Maynard Keynes said that speculation is knowing the future of the market better than the market itself.

And you know who Keynes was. This giant of finance, English economist, journalist, and financier is best known for his Keynesian economics, theories on the causes of prolonged unemployment.

He developed, so-called, Keynesian economics during the 1930s in an attempt to understand the Great Depression. Keynesian economics is a theory of total spending in the economy (called aggregate demand). And its effects on output and inflation.

A Keynesian believes that aggregate demand is influenced by a host of economic decisions, both public and private and sometimes behaves erratically.

Let’s go back to speculations.

Speculation usually involves more risks than investment.

That’s true.

But, everyone has to recognize the price-stabilizing role of speculators. One who tends to even out price-fluctuations due to changes in the conditions of demand or supply. Only because they have better than average foresight.

One of them explained the benefits of speculation. Victor Niederhoffer, in his book “The Speculator as Hero” wrote:

”Let’s consider some of the principles that explain the causes of shortages and surpluses and the role of speculators. When a harvest is too small to satisfy consumption at its normal rate, speculators come in, hoping to profit from the scarcity by buying. Their purchases raise the price, thereby checking consumption so that the smaller supply will last longer. Producers encouraged by the high price further lessen the shortage by growing or importing to reduce the shortage. On the other side, when the price is higher than the speculators think the facts warrant, they sell. This reduces prices, encouraging consumption and exports and helping to reduce the surplus.”

The art of speculating covers a wide range of trading tactics. Including pairs trading, swing trading, employing hedging strategies and recognizing chart patterns. Speculators are well skilled at fundamental analysis. Including spot over- or under-valued companies, the amount of short interest a company holds. And, analysis of earnings and other SEC statements. A speculator with skills and good performance knows that the short-term movements of the investment markets are largely tied to world events.

According to the Los Angeles Times, baby boomers are trying a new investment strategy for their retirements accounts.
Instead of the passive investment strategy that most employees use, an increasing number of people have turned to speculate. In an attempt to catch up on shortfalls in their retirement accounts.

How to become speculator?

Every trader who wants to become speculator has to spend many years of learning, watching, practicing.

Such one must learn how the market behaves and watch how favorite stocks react to market events.

For many traders, the book, “How to Make Money in Stocks” by William O’Neil, is a value for learning the art of speculation.

This book and many others provide ambitious trader practical tips on trading and risk management.

Speculation popularity is spreading rapidly because of the easy access to world investment markets through online brokerage portals.

But speculation is difficult to master, so you have to learn a lot if you mean to become speculator one day.

After you have a continuous track record of success through both up and down markets, it’s time to consider speculating with real money.

Successful speculating takes a lot of skill, time and experience to master. Most people who work outside of the financial industry don’t have that.

That’s why the speculators are real artists.

Risk Disclosure (read carefully!)

7th September 2018
Asian shares a sea of red on trade, emerging market anxieties

(Reuster)

According to Reuters, Asian shares fell for a sixth straight session on Thursday as oil skidded and safe-haven gold gained, with investor confidence shaken by turmoil in emerging markets and jitters over a potentially severe escalation in the U.S.-China trade war. MSCI’s broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS fell 0.4 percent to hit its lowest since mid-August. Japan’s Nikkei .N225 slipped 0.2 percent while Australian and New Zealand indices.NZ50 fell more than 1 percent each.

China’s blue-chip index.CSI300 slipped 0.2 percent while Hong Kong’s Hang Seng index.HSI dipped 0.5 percent. Read the full article about Asian shares here…

Introducing the Australian Stock Market

6th September 2018