Year: 2018

Trading Forex – How I made $10,000 on a trading platform?

Trading forex can be very profitable and you can earn money quickly. Here is how.

By Guy Avtalyon

My trading forex story begins like this: I was so tired of “opportunities” that end up taking nothing but a lot of time and money out of my pocket while gaining nothing except lost time and money. Don’t get me wrong, I was willing to put my free time into something that is real.

The forex market offers more opportunities for quick financial success and financial ruin too than almost any other market. The crowds have always been attracted to it. They include speculators, trading novices, retirees, and professionals looking for a way to get out of debt, increase the excitement in their lives, or simply get rich real quick. I’m one of them.

If you have a computer and an internet connection, you can trade forex from anywhere in the world, it is the best home-based business of the 21st century. But the problem is that most people don’t know how to trade forex.

Learning forex trading is not easy

It requires time, patience, and sustained effort. Most people lack the time to learn forex trading. I wanted to become rich. And the first lesson I got was: I have to fail and learn from my failures. I know that most people fail but do not learn. The skills of the trade aren’t like taking a diploma and slowly walking on the path of your career. In trading, when you “advance”, you don’t even know if you’re making progress in the right direction.

When the results show otherwise, it’s so hard to admit that the past months or years of “progress” wasn’t that at all. And after admitting that to yourself, you need to learn from it. You have to put your ego aside. Trading without emotions is a MUST.

Have you ever heard of someone turning a $100 starting capital into $100,000? Maybe you have. Well, such stories were and still are very rare. You really must have the full picture.

I have to tell you some big truths.

Trading forex is not a shortcut to instant wealth.

The old saying “It takes money to make money” is a precise one, Forex trading including. What would you have to do to start at $100 and have a trading account worth $10,000 a year later?

Almost any pattern of gain or loss is theoretically possible on the forex. But return on investment (ROI) calculator shows you that to accomplish this, your annual rate of return on investment needs to be 9,900%! If you enter and close out one trade every day of the year, the average profit on each trade would have to be at least 464 percent on those 100 bucks! You’d have to more than quadruple your money every day to come even close to $10,000 at the end of a year.

Does this sound like something that’s happening in the real world?

There’s something so deceptively rational. The idea to start with $100 and turn it into $10,000 needs to be shown into return rates to show how absurd this really is. It may be theoretically possible, in reality, it’s no more likely that your cat is starting to fly.

No matter what you were told, you have to know that your starting capital is the place to start. Having a good starting capital can help you to set your trading goals, define your risk management, and adapt your trading system and position management around your starting capital.

For many traders, a starting capital of $10,000 should be a good starting point. Depending on other factors such as leverage you can start making profits for as little as $10,000.

The math for trading forex

Assume you start trading with $30,000 and you can risk on each trade is $300 (1% of $30,000). You use 4:1 leverage, which gives you $120,000 in buying power (4 x $30,000) and utilizes a strategy that makes you $0.21 on winning trades and you lose $0.12 on losing trades.

A good trading system will win 60% of the time. Your average is 5 trades per day, so if you have 20 trading days in a month, you make 100 trades per month.

60 of them were profitable: 60 x $0.20 x 2300 shares = $27,600

40 of them were unprofitable: 40 x $0.13 x 2300 shares = ($11,960)

Let’s say your cost per trade is $20 (to get in and out). Your commission costs are:
100 trades x $20 =$2000.

If you pay for your trading platform or exchange entitlements then those fees are added in as well.

That means, you can make approximately: $15,640 – $2000 = $13,640 or about a 45% return per month.

Return on a single trade

As your account grows, your position size and your income will become larger.

Thanks to the availability of leverage, forex traders can make a return on a single trade. When multiples of the margin they used to open the trade. But, leverage is a double-edged sword. It can also mean big losses. Reliance on excessive leverage as a strategy typically leads to the destruction of your account capital in the long run. This is because it only takes one adverse market move to drive the market far enough and trigger losses. You need to view forex like you would any other market and expect normal returns by using conservative amounts of no leverage.

Websites that propose big and fast returns, to start with $100 and turn it into $10,000 in a short time, or imply that you can somehow get rich quick on the forex starting with very little are openly speaking frauds.

What you can do?

In the last few years, many pro traders have started their own forex signals services that provide trading signals to their subscribers via email and SMS.

Copy the trade of these pro traders onto your own account the instant they are made.

Now, what this means is that the pro trader is going to do all the market analysis, decide which currency pairs to trade and when to enter and exit the market. You don’t need to do any of the stuff above.

Follow elite traders when trading forex

At the same moment when pro-trader makes the trading software will instantly copy that trade onto your trading account.

So, if the pro trader makes a winning trade, you also make a winning trade and if the pro trader makes a losing trade, you also make a losing trade.

Try the best forex signals service in your opinion on your demo account. Install the trade copier software and start copying the trades made by the pro trader.

At the end of the month, evaluate the performance of the forex signals. If not satisfied, go for a refund. After several tries, you will be able to find a good forex signals service.

Most pro traders make around 1000 pips per month. 1 pip on a standard account is equal to $10. 1000 pips per month mean making $10,000 per month.

Voila! You earned your $10.000!

But before all, make sure you test the signals for at least two months on your demo account before you start trading live.

And you should know some basics of forex trading. You can learn that online for FREE. Most of that information is available for FREE.

Good luck!

22nd July 2018
What is the best day trading strategy?

Day trading is connected to great risk but also with great potential to profit.

By Guy Avtalyon

So, let’s see what is day trading.

Day trading points to the rapid purchase and sale of stocks throughout the day. With the goal that purchased stocks will climb or fall in value for the short frame of time, seconds, or minutes.

Day traders believe that through certain day-trading strategies, they can add up small daily wins into long-term profits.

Day traders have their own jargon and terminologies, online communities for day-trading tips, support, and strategies.

But you have to know – day trading is risky and only for speculative investors.

The day trading strategies

Scalping Strategy This is the philosophy of how small wins can add up to a lot of money at the end of the day. The scalper sets a buy and sells target and sticks to these levels.

The scalping strategy is fast and traders make buys and sell within a few seconds. This is one of the best day-trading strategies for traders who can make quick decisions and act on them without regret or doubt.

These traders have enough discipline to sell immediately if they see a price decline. In that way, they are minimizing losses. This strategy isn’t for people with short nerves. But still, it is very popular.

Momentum Trading Investor jumps on a stock whose price is moving up. When to use the momentum day trading strategy?
This strategy is very popular for beginners because it focuses on news and recognizing strong trends.
Stock movement of 30 to 40%, smaller stocks, which trade faster due to the reduced number of outstanding shares, a unique and major move in price, driven by a catalyst like a surprise earnings growth, a drug company’s huge, new treatment launch or news that a small company will be acquired by a larger firm. Option stop – loss is required as insurance.
Just hold your position and wait to see indicators of reversal and simply get out. Also, you can decrease the price drop and round your price target at the moment the volume starts to decline.

The most important part of this kind of day trading strategy is to be extremely aware of the expected news and earnings reports. If you execute it correctly, you’ll be able to profit from each trade. And you trade just short as few seconds per trade. Wonderful!.

Breakout Trading – When the stock price rises above the former top resistance price you can use this strategy. You should monitor the level of stock trading volume or how many shares are changing hands. Breakout trades on high volume are more likely to be sustainable at the new higher price than those breakouts with less volume. It’s not as easy as looking at a chart, recognizing the resistance, and then buying after a breakout.

Breakout trading focuses the point when the price clears a particular level on the chart. Also, you have to notice that the volume is increased. So, you have to enter into a long position after the stock breaks above the resistance level. The other possibility is to enter a short position when the stock breaks below the support level.

To explain this more detail, after the stock trades beyond these levels, the volatility will increase and the stock price will usually follow the trend, meaning it will move in the direction of the breakout. Always keep in mind these two levels: resistance and support. You have to see how frequently the stock price hits them. More hits, more volatility, more important the levels become.
Plan your entry point according to which level the price hits. If the price is set close or higher than the resistance level is, you’ll need to take a bearish position. The contrary is when the price hits the support level or move below. In that case, you’ll need to take a bullish position.

Your exits should be set reasonably. Calculate the average recent changes in price to set your price target. For example, if the average price is 3 points more than the last few swings, your price target will be rational. When the stock price hits your target price, just exit the position and take your profit. You had a winning trade.

Day trading on news

News Trading – You must be keeping an eye on the business news, day traders can capitalize on the popular daily stories.

If the news is bad, you might short the stock during the day by “borrowing” shares of the stock from the investment firm. And then selling those borrowed shares.

Similarly, if the stock price declines as expected, you should buy the shares back at the lower price and profit from the difference less a commission payment. If the news is good, you go long or buy the stock outright and sell the shares after the price rises.

Pullback Trading – The first step is to look for a stock with an established trend. Then, monitor the trend until there’s a price decline from the trend. If the established trend is upward, then the pullback is an entry point for the day trader to buy.

If the trend completely reverses after you buy-in, there’s no need to panic. The trend usually continues in the trending direction for a long time.

You may find pullback ”candidates” from the stocks making the biggest gains.

Is there any risk involved

But be aware! ”Day trading is extremely risky and can result in substantial financial losses in a very short period of time,” according to the SEC website.

And one advice: If you’re afraid to try your hand at day trading, only invest money that you can afford to lose.
Or don’t try this!

Read more about Strategies to Avoid Bad Investment Moves

22nd July 2018
Call for Ban on Crypto Buying and Mining In USA

1 min read

U.S. Congressman Brad Sherman has called for a blanket ban on cryptocurrency buying. During the Wednesday hearing of a subcommittee for the House of Representatives Financial Services Committee, he went so far as to advocate keeping Americans out of the crypto market entirely and earlier in March this year, he called cryptocurrencies “a crock”

“We should prohibit U.S. persons from buying or mining cryptocurrencies,” stated this California Democrat. And their largest donor is credit card processor Allied Wallet.

Beyond cryptocurrencies being potentially used as a form of money in the future, it can currently be used by tax evaders and rogue states seeking to bypass U.S. sanctions, he added.

Ban on crypto buying and mining in the USA?

Norbert Michel, director for the Center for Data Analysis at the Heritage Foundation, pushed back against the idea that criminal use should define cryptocurrencies as a whole.

“Yes it is true that criminals have used bitcoin, but it’s also true that criminals have used airplanes, computers and automobiles. We shouldn’t criminalize any of those instruments simply because criminals used them.” he said and added “Those components I believe are the main barriers to widespread adoption in the U.S.”

The tale behind of ban on crypto buying and mining

During the hearing, the topic was general monetary policy and history, but the crypto-specific parts revealed a general opposition to the idea of a central bank digital currency (CBDC).

Recap: central banks around the world have been explored the idea of using the technology concepts behind bitcoin and other cryptocurrencies as part of new, completely digital money systems. The idea is that the tech boost transparency and efficiency.

But some have warned that it could expand the risk of bank main points, and several institutions guaranteed that entirely following their research.

Alex Pollock, a senior fellow at the R Street Institute, refused the concept and declared it as “a terrible idea – one of the worst financial ideas of recent times.”

Congressman Bill Foster asked about blockchain immutability, saying “the promise of blockchain is a non-falsifiable ledger remains an unsolved problem in the digital world is how do you authenticate yourself?”

If you don’t understand, ban the crypto buying and mining

Other committee members agreed that the idea raised more fundamental questions about how blockchain and cryptocurrencies work.

Dr. Eswar Prasad, senior professor of Trade Policy at Cornell University, argued that the existence of cryptocurrencies had the power to impact the financial services system, primarily the payments system, in positive ways.

Just prior to the hearing, chairman Andy Barr noted that cryptocurrencies will “continue to have a greater and greater impact on our financial system,” which means that the committee would probably have to “revisit” once again.

Risk Disclosure (read carefully!)

20th July 2018
How To Avoid Bad Investment?

2 min read

To avoid bad investment can be very tricky.

‘Human beings have certain innate tendencies that don’t always lead to the best investment choices,’ says Mark Riepe, senior vice president at the Schwab Center for Financial Research.

What is a good investment? Or How to avoid bad investment?

Both are very tricky questions. At the same time, they are quite simple if you follow a few steps. Why?
You can see, there are always several important events happening at the same time in the global economy and the capital markets.

Earnings reports, inflation readings, central bank decisions, trade deals, geopolitics with weighty implications.

Altogether, these factors hold some influence over the direction of stocks and bonds. It makes sense that investors would want to consider each one closely when making an investment forecast.

Being analytic and detail oriented makes sense and is very positive in my opinion. If you want to avoid bad investment

Where is the catch?

Investors too often overemphasize the negative, more fearful or worrisome factors, while giving less consideration to the pricing power of the positive factors.

But it’s kinda human nature to be stressed and captivated by uncertainties.

The cryptocurrency market, for example, attracts investors into the possibility of making huge sums of money quickly, without any clear mechanism for understanding or measuring the risk of the investment.

And other examples, 2008 financial crisis, the front page of the Wall St. Journal featured an article stating that economic decline, the collapse of the dollar, and moral degradation would lead to civil war in the United States by 2010.

WHAT?

That madness and hysteria surrounding the financial crisis gave many investors no choice than to take these forecasts seriously.

When the world becomes chaotic, any prediction can make sense. But many of those predictions are bad ones.

You can count on knowledge and experience to help you make smart decisions in most areas of life.

Investing doesn’t always work that way.

Even professionals in financial and market fields, often fall prey to the same unhelpful reflexes that are present among investors.

Fortunately, you can put controls in place to help you set aside harmful impulses. In order to avoid a bad investment.

We live in a society where many seek to keep up with the Joneses.

Only a few individuals are resistant to the urge to make a fast dollar.

It is highly recommended to overcome emotional and personality-driven faults.

Yeah?

Honestly, it’s hard to achieve, almost impossible.

But, one of the keys to success is recognizing that a problem exists, and then devising mechanisms to control or limit bad decisions or risk.

Investing is all about risk, but the calculated risk is important.

The first key: avoid bad investment by avoiding confusing investments

You are more likely to make a bad decision when you lack understanding or knowledge.

If you just don’t understand the investment or the opportunity sounds tricky then you have to do two things: Ask more questions about it and consult with someone who has more experience than you in the field or product.
Frankly, when you don’t understand it, don’t invest your money in it.

Do your own independent research on any potential investment. If you someone offers you an ownership stake in a business, don’t feel pressured to make a decision right away. Demand two to three weeks to make a decision after you’ve received all the details that they can provide. Meantime, you will be able to research similar companies and be assured in your answer as to why or why not you select to invest in this business idea.

You should diversify your investments.

Never put all your resources into one investment.

Don’t put all of your eggs in one basket, is an old saying.

This rule is valid for investments. If someone recommends you put all of your money in one specific investment is giving you bad investment advice! You must spread your resources through financial products and probably some real estate.

You have to find a competent investment advisor.

Make sure that you seek professional help from someone who is educated in the field you’re looking to invest in.

Don’t take financial advice from someone who isn’t a financial professional.

The advisor is skilled to analyze a business idea and financial instruments. An advisor can review fund and stock history. And can give you guidance on the possible projection of the investment, based on market indicators. They can properly explain to you how to avoid a bad investment.

Bad investment decisions can devastate all your investment, all your capital.

Don’t be rush or make a quick decision. Investing is a smart and methodical process that cannot be made in a hurry.

You must take your time and evaluate before making any investment decision to avoid a bad investment.

A wise man once told, “Measure twice and cut once.”

Risk Disclosure (read carefully!)

20th July 2018
Demo And Real Account – What Are the Differences In Forex Trading?

Some beginners in forex trading avoid using demo accounts. Maybe they are right, maybe wrong. Read to the end and find the answer.

By Guy Avtalyon

Demo and real account, what to choose? That is the question now! Before you start trading with real money, it’s always smart to open a free demo account to experience what trading Forex may be like. There you can practice your skills, learn, follow experienced traders. Well, demo trading isn’t live trading, and ti will never show you how to react but it is a valuable tool and useful to learn how all things work.

You can learn how to survive the ups and downs of trading financial markets if you use the demo account. As I said, the problem is that demo accounts don’t always reproduce reality.

Demo accounts are generally offered with the best possible terms and fees but those conditions are out of reach for most of us. And demo trades execute free of latency and other handicaps that we have to deal with when using real accounts.

What are the differences between the demo and real accounts?

Every trader can notice the difference in a short time.

On real account, you don’t have that magical help and nothing will help you to make money in some easy way.

A demo account is a live simulation. So it mimics live prices very closely. They do have a slight difference at some points in price as well.

Paper trading executes one goal, to teach you to learn how to properly execute trades as they say and test strategies without risking real money. Paper trade is advisable until you learn enough to execute trades without making mistakes. These mistakes will cost you money and you have to learn how to avoid them. The lack of a demo account is that paper trading does not develop your trading mindset because there is no real money at risk.

For whom are a demo account and real accounts better?

A demo account is always recommended for beginning traders.

Trading on a demo account is not only vital to consolidate the right knowledge and strategy. It can give important knowledge about how to react and avoid emotional reactions. After you’ve tested your trading strategy for a few months with “paper money” and it is now showing steady and promising returns, maybe it’s time to move to a real money account.

This transfer might seem easy and just an administrative step. But actually, it can be one of the most challenging periods you’ll meet as a trader. The moment you switch to the real account is also dependent on which type of user you belong to.

Two types of users of the demo account are recognizable.

One who never takes the demo trading account seriously.

It’s just a game, simulation of the possible real situation for this kind of trader. That kind of user becomes childish with their accounts. Placing crazy trades and not really caring about it because there is so much money in the demo account. They are masters of the game in their minds.

This is the worst type. From the beginning, you should look to stay away from these kinds of actions. This always limits your growth the trader gets. Such traders don’t spend time trading their plans or gaining wisdom from the demo trading account.

The other type is represented by traders that take the demo account too seriously is different. However, there are drawbacks to this as well. Traders who are not successful in this group may leave the market.

You have to know that no one is able to hit the goal straight away and every day. In the beginning, you have to give yourself a growth period.

Trading with ‘‘paper money” allows the user to practice the mechanics of trading without the risk of losing real money and allows convenient testing of new and unproven trading strategies, spreads, fees, swap interest, instruments, and trade execution. All of this should all emulate those of real accounts that the broker offers. Demo account models an idealized trading environment. The execution of trade orders is simulated to show what would happen in a perfect case.

Contrary, real trading involves many dynamic variables that are impossible for a simulation to properly model like are supply and demand constraints, order processing and information transfer limitations as well as imperfections in the various technologies and some of these are beyond the broker’s control. On the most demo platforms, the trader is likely to achieve a level of performance that would not be reachable on a live trading platform.

What is the first problem in real trading?

The first problem in real trading is that of latency or slippage. You have to understand, there is no electronic trading system that is perfect. There will always be time lags between receiving an order and the platform being able to fill it. These time differences can be small, but they may create discrepancies in trading performance, especially when markets are moving quickly.

Demo accounts don’t interact with the market and it is impossible for them to model supply and demand properly. It means that if other orders are ahead of yours in the order row, you may not achieve the entry price you want. This happens because the offers displayed at the time you entered the order have already been matched with other buyers or sellers.

With some trading models, this triggers a request and you have to reenter the order. This means, your entry price can be significantly different than when you first entered the order. Also, if you placed a stop/limit order to execute at a certain price level, the entire order may not be filled at one instant.

What is the biggest problem of demo and real accounts?

The simulations, in short.

The aspects of supply/demand cannot be simulated entirely because the order flow from the demo account itself would influence the market. It’s clear.

A demo platform publishes a quote at which to trade when in fact there is no market. It’s usually not a problem when trading major Forex pairs owing to the size of the market and because retail order sizes are usually relatively small. There are cases in some instruments where an order cannot be filled because there is “no market” at a given point in time. These are known as liquidity gaps and this can happen when the market is adjusting to an important breaking event. This causes the price to “gap” a certain distance.

In real trading, an order like this, would not be filled at the quoted price because the broker’s matching system would find that there was no price to take and complete the order.

In simulated trading, the order would be filled anyway, even when the price fell through a liquidity gap.

When choosing a demo account you should choose the one closest to the account you plan to trade with. It doesn’t make much sense to use a $100,000 demo account that trades standard lots when the one you plan to use will be a EUR 250 micro account.

But you can still use such a demo account.

But be aware, if you trade with big cash on your practice account, this can give you an unrealistic sense of your margin for error.

What is smarter to start forex trading with a demo or with a real account?

More popular nowadays is to bypass demo trading altogether and start with a real account with a very low balance. Some brokers allow trading with very low cash balances and you can adjust the trade sizes. One of the problems with using paper money is that traders have very little emotional connection with what they are doing.

So, there is no competitive element, and traders often lose interest. Using a demo account is good for traders who don’t want to place their own money at risk but want to develop their skills. A “real” account has the risk of losing your hard-earned money.

Protect your capital and trade smartly. The emotions of fear and greed will come into play when you trade real money and these emotions need to be understood and controlled.

You have to have trading rules in place to make sure you don’t let emotions destruct your trading.

20th July 2018
DEMO and REAL TRADING – Psychological aspect

1 min read

Demo and real trading are similar and different at the same time. With a demo account, you can practice trading without stress, without any possibility to lose real money. When it comes to the real account the situation is slightly different. That is why we want to discuss the psychological aspect of these differences

It is really important to know HOW to trade before you make your first step in RL and the world of trading.

As a newbie trader, you have to practice demo trading first before going live.

Through demo trading, you are able to hone the basic trading skills, develop your trading plan, conduct risk management, and understand trading psychology.

After you become able to show consistent profitability and build up your confidence in taking trades, you may decide that it was time for you to open a live trading account.

Oh, yeah!

You already scored successive wins on DEMO, making the tremendous profit with real money at risk shouldn’t be so big problem.

And you think you are right.

You are on the wrong track! STOP!

Newcomers usually believe that their demo trading results can be easily replicated on a real account when they cross over from demo to live. But you know, some are left very defeated when they figured out that this isn’t always the case.

Let me say why is that.

First of all, playing with real money isn’t a game, real money means real emotions. Eliminating emotions completely isn’t possible for any human being and it is normal to be vulnerable, to be emotional when real money is at risk.

Yes, I know that all of us try to be emotionless while we have to make some decision. But…

Tell honest, what you were feeling when you first traded on a demo account? Compare it with how you felt when you placed your very first live trade. If your heart beats faster, and you feel butterflies in your belly and your hands are a bit shaky, and you are sweat, you are either deliriously in love or you get an extra portion of anxiety when you started trading live!

There is another psychological difference between demo and real trading.

There is no possibility of losing money on a demo account. No risk is involved.
It’s like a game.

Even if you tried to treat your demo account as a real one, the truth is that there is no real financial risk on a demo.

Oh, and you allowed losses here and there, but there was no problem. At the back of your mind, you know that you can have your demo account refilled with virtual cash any time.

The comfort zone of the demo account

You are comforted by the fact that you can start over easily. Contrary to this, finding yourself in a drop while trading real money can hurt your trading faith and confidence. And can obscure your trading decisions later on.

Read this truly and personal experience: I made some profit on a demo account. Should I start trading for real?

Later it can obscure or cloud your trading decisions and make you unsafe and without self-confidence.

It is much more likely to make big mistakes in live trading. Temptations are higher because you’re dealing with real financial risk and you’ll be more emotionally invested in your trades.

The desire to prove that your live account can be as profitable as your demo account can lead you to new problems like overtrading or ignoring your trading plans.

If you can’t keep your emotions in check when trading, you will lose money.

What is the key to making successful trading in the real account?

What you have to do is to copy the mental state of emotionless trading you practiced on the demo.

That means, take one trade at a time and focus on sticking to your plan and implementing proper risk management. Trade with money that you can afford to lose, and concentrate on your trades better.

Switching from demo to real trading is hard and often leads to losses at first, but it shouldn’t stop you.

You just have to step slowly and make sure that you’re aware and prepared for live trading.

Read this too: Trading With Success – A FULL guide for beginners

Share your experience with us!

Risk Disclosure (read carefully!)

20th July 2018
How I Lost 10.000 dollars On A Trading Platform

Lost money in trading isn’t a big deal. But lost self-confidence is the disaster.

How I lost 10.000 dollars on a trading platform? It was a painful experience and I want to share that with you. When you hear that somebody lost $10,000 on a trading platform, what is your first thought? How stupid he/she must be!

Thank you. I’m that one. I lost! So, what?

My entire savings were gone. Don’t even think that I traded without knowledge. I went through all the forex courses available to the time and I’ve spent a lot of money to pay for them.

Let’s go back to that moment in my trading history.

Only a few hours ago everything was fine. But what happened? Let’s take a look. I lost! OMG, I lost all my savings!

First of all, I was so-called, “day trader”. There was no reason I couldn’t have made a billion dollars day trading. Actually, I was the exception. I made a nice sum of money before stopping. The secret was that I treated the thing with respect. I did not plan to get rich overnight, but in a reasonable time, yes. My plan was to become indecently rich in 2-3 years. And I was on my way to becoming so. In fact, I was like many others. Becoming filthy rich for 2-3 years?

How stupid I was!

Fun fact: I was trading without proper preparation and education.

Ha? What do you think about me now?

I never listened to what my father told me:

“Don’t gamble, it is not worth it. Build up your assets with honest work and time. There is a time and a place for everything. With gambling, enough is never enough.”

I thought I knew everything and I have the holy grail in my hands. Just because I bought a trading robot. Yeah, that was very smart of me. Well, after 6 months, my trading account was gone.

Kaboom! It exploded and disappeared in its own smoke! That’s how I lost 10.000 dollars on a trading platform.

I lost everything! How it was possible? I believed marketers and some guys with their “track records”, and hundreds, thousands of testimonials. It is hard to resist when you read or hear some of them.

Would you really like to know how I lost 10.000 dollars on a trading platform?

Take a look at the image above. What can you see? Stop-loss levels. My trading strategy didn’t have stop-losses. I didn’t see the point of using it! The truth is, with a stop loss, you’d get sold out at a loss, and then the market would move back and you would have ended up making money if not sold. But I didn’t see that opportunity, I just wanted to earn a big sum of money.

I had no strategy except to make money

And I really believed that the robot knows what it is doing. I started investing slowly. It was fun. I checked the price of my investment, followed the news on Twitter, and talk about the company’s products. Then the stock price plummeted and I didn’t have a stop loss and that ruined me. Can you understand how I lost 10.000 on ta trading platform now?

Only then I realized that I had chosen the wrong stock, the wrong company.

My skipping of stop-losses and liquidating my position at a very low price. That triggered a chain reaction with all my positions being liquidated in a few minutes. The market was having one of its ‘corrections’. I’d received multiple margin calls overnight that had gone unanswered, so my CFD provider sold my positions out.

The people I was playing against were in many instances the big financial institutions. These institutions’ employees aren’t so many traders as risk managers.

I didn’t realize that trading is like a game of tennis.

You need to know who your opponent is

Today I know what was obvious, that this would never have worked. Do you really think that some rich guy believes in some trading robot account to make his buying decisions?

Of course NOT! But I have seen a number of miracles happen.

And the truth is only ONE! Trading without the right knowledge leads to a deep disaster.

When I see people who are day traders and they are following some crap newsletter or some coach with a fudged up track record, I am going crazy. I can’t even see someone watching FOREX algorithm sales pitch or sniveling over some poor stock report.

I have that one desire, I just want to say to them: you are guaranteed to lose money in any period of time unless you learn to trade well. If you trade without the proper education you should go to some casino or play the lottery. You would have better chances to win. Not to lost.

Yes, how I lost 10.000 dollars on a trading platform? I faced that beast.

The nature of the beast is that even if you are financially educated and you think you know everything about trading, investing or markets at all, you still haven’t guaranteed to win.

For you to know, I’m not selling anything. It didn’t even cross my mind to teach you how to trade. Hm, maybe I could sell my ideas, I could run some newsletter and give you trading ideas? That kind of person makes a lot of money, indeed. And they are generous when they have some secret ideas to share with you for free.

How I lost 10.000 dollars is true BS!

I am not saying all that information is bad, you just have to be careful and try not to follow anyone uncritically.

The Forex systems and robots stirred by internet marketers are a joke. Especially if you think that’s how they make money on Wall Street. And believe me, they DO make tons of money. The markets are full of sharks and they will eat you quickly if you don’t stick to simple and reasonable rules instead of their predatory advice.

Forget about making 20% per month. That’s how poor people like to think.

I learned a few key points when I lost on a trading platform exactly $10,000. My risk tolerance was pretty high. I never felt the need to sell. I regret losing the money, but I never regret making the investment.

The lesson to myself was: you have to know whether it will move up or down and markets must agree with your judgment and you also need to know when the stock will move.

To be successful with individual stock investing, you must predict its future movement AND when that movement will come. You’ve got to be fluid as a trader and there are no guarantees.

The Forex market is the most volatile market in the world and therefore it cannot be manipulated.

KISS, live long and prosper, and trade smartly!

19th July 2018
Investing Tips for Millennials

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1 min read

Investing and millennials! If you were born between the early 1980s and late 1990s, you’re Millennials.

Do you know you’re millennial?

If you were born between the early 1980s and late 1990s, you’re.

And I’m sure odds are you aren’t investing your money in the stock market.

According to a recent study, 79% of your generation isn’t handing over hard-earned cash to Wall Street, 76 % of millennial women found investing confusing, 60 % believe the typical investor is an old, white man, almost half of millennial men agreed.

As a member of this generation, you’ve seen investors losing their money during market crashes.

It can be unsettling. It can also be discouraging to start investing if you’re uninformed about how to get started.
Before you begin investing, you should arm yourself with knowledge of what you can do, how to get started, and how much money you could earn with a long-term investment.

There are some tips.

You need to pay off what you owe. Contrary, the interest you’re paying out will eat greedily the interest you make on your investments.

Pay the minimum on your lowest-interest cards and sink your money into the card with the highest interest and get it paid off, that is always a good plan. After that work down the line until they’re all cleared.

It’s a good idea to keep an emergency fund, but a savings account isn’t doing much for you. The profits you earn by keeping your money in a savings account is minimal, generally speaking.

The advantage of being a millennial is that you’re young and you can make a risky investment because if it all comes crashing down, you’ll have enough time to aim your financial goals.

Those big risks in stocks can also eventually make you a lot of money in dividends. And you can continue to invest and make more money. A beautiful thing indeed. When you get older, it will become harder to explain to yourselves a big risk, because you will need that money for your retirements.

One-third of millennials surveyed say that $1,000 is needed to start investing, which isn’t true.

You can start with only $5.

Of course, you won’t make a fortune with micro-investing! You have to choose the companies you invest in, I won’t suggest which one. It’s up to you!

Anyone who wants to start investing must learn everything possible about investment.

You can start with some websites that are chock-full of investment information. You will feel more comfortable with the ins and outs of trading, and you can download an app with stock news and read news related to your own investments. Or you can easily and free of charge open some demo account.

You have many options for investment and maybe it’s time to start investing in your future.

Don’t let your money sit in the bank while inflation rates rise. You have to make your money work for you. If you take the risks now, you’ll get the most return on your investment, so you can retire later.

With peace in your mind.

Risk Disclosure (read carefully!)

19th July 2018
Easy Ways To Start Investing With Little Money

1 min read

Despite the title, I tell you that there is no big and small money.

Money is money and it’s yours. A different question is whether you have enough to invest. For investing with little money, I mean.

If you want to invest you can’t do it without money.

Is there any way to reach decent money for investment?

Well, my friend was putting away just $15 per week. In order to avoid tempted to take the money for saving, he put the box reserved for saving money in his girlfriend house.

Uh, how she was strict and strong. But he stashed the savings away in a safe place. You may think it isn’t a lot, but at the end of the year, he had $780.

It was still not enough but it was a great beginning.

To make money in the stock market, you have to start with big money, right? Oh, no! Totally wrong!

My friend started investing with little money.

You can try with day trading, why not. It is investing with little money.

But it takes bravery and strength of character. You have to understand the different market forces at play. This isn’t for dilettantes or dabblers.

But it is a way where you can very quickly make a major amount of money with a relatively small investment. Real investing with little money.

Day trading is not for you if you don’t have any guts.

Don’t worry, there are ways to hedge your bets when you are playing the stock market. But you have to learn and learn and learn. I suggest you ensure set stop-loss limits to cut any potential for accelerated depreciation.

If you’re an advanced trader, you probably understand that market makers move stocks to play into our greed or fear of failure. It isn’t rare they push a stock down to a certain price to enhance our fear and play right into their pockets. And pay attention to averages. When stocks break moving averages, there’s potential for large upside or big downside.

You can be investing with little money in commodities.

Gold, silver, metals, energy. Silver looks like the solid hedge on inflation. That kind of commodities is the tangible property that people can hold onto. Investing in commodities means investing in futures contracts, prearranged agreement to buy a particular quantity at a particular price in the future. These are leveraged contracts, providing a big upside and a large downside. I suggest you be extremely careful.

And of course, you can trade cryptocurrencies. Trading them might seem risky, if you hedge your investment, you could limit some fallouts. There are plenty of platforms for trading cryptocurrencies. But before you step into this, educate yourself. Use some free demo account for several months and learn, test your skills, get more knowledge.

For novice traders, it is difficult to distinguish valuable and useless trading. You need to avoid any new coins until they show up well on the market.

No matter how much you want to invest with little money.

Markets are very volatile in the altcoin scene.

There is also such a thing as “compulsive trading”. It’s hard to learn the trading style from the first day. Errors will have to occur until you find a rhythm that suits your needs. The best advice is to start with investing with little money of one or two coins that look legitimate and potentially profitable.

More about The 5 Most Common Mistakes Made By Beginners In Trading Cryptos.

Everyone who wants to invest on the market should first evaluate his own preference for risk. Also, it is necessary to have at least minimum economic and financial knowledge and ability of common sense reasoning.

The economic revolution is afoot and you can either be a part of it or get left on the side of the highway feeling dumb.

Everything is up to you. Even your investments. So, start investing with little money and follow the rules.

Be smart and good luck!

Risk Disclosure (read carefully!)

19th July 2018
I made some profit on a demo account. Should I start trading for real?

Trading forex or any other market with a demo account isn’t the same as real trading.

by Guy Avtalyon

This is a great chance to explain why trading with a demo account seems fake in comparison to real trading. Let me start from the beginning.

I got a message:

”I’m very new to forex, been trading on a demo account from various brokers for 3 weeks and I’m consistently making the profit. Now I’d like to start doing real trades. I intend to register a real account once ready. My trades go over a period of 10-15 minutes usually. The problem I’m having is that it just doesn’t make sense that you make such easy profit with so little experience, there has to be something I’m overlooking. The question I’d like to ask is: what is going to be the difference between a demo account and real trading? Any tips are welcome.”

Yes, that’s the right question and many people with demo account experience only, have the same question. This article is for all of you who had experience with DEMO ACCOUNT and now you want to start with REAL.

To be clear in the beginning.

Trading Forex getting started

Several weeks is too short frame time to have experience on a demo account.

My opinion is that you need to test your skills at least several months and after that period you may be ready to trade with the REAL account.

Well, you are maybe a gifted, talented financial expert, I don’t know. But even then you need time to find all that would make you a good trader who knows how to react, what to do. I know there are some people who would say: Just don’t demo! Never use demo just because it’s too easy to follow your personal trading rules. It is better to trade with a mini account, so-called ”trading live” for over 18 months. But I would never share such an opinion.

Many users of demo accounts claim that they are using “fake” accounts and they haven’t the real possibility to explore everything they need before opening a real account. That is true and not true, at the same time. Demo platform sometimes uses a prototype and test on the user before having some of their features go live. Some brokerages or platforms use programs based on the experiences of other traders and this is not bad.

This gives you the ability to see how you should behave in a particular situation.

Differences between a demo account and real forex trading

So, let’s go to the point.

There are many differences. When you’re paper trading you don’t really pay attention to:

* Money management, and because it’s not real money, its ignored.
* Margins required to take positions which differ from position to position. This can affect money management.
* Risk management is also different. Risk management is not punctilious, not precise.
* Mark to market losses can make your portfolio looks bumpy, lopsided, and generally bad. In real-world trading, this is the first thing that is observed and it affects the total NAV of the portfolio. When you are trading with a demo account as the simulator, it doesn’t matter because you’re looking at the end result only.
* Stop losses are based on the past. Usually, stop losses are triggered because the order book is exposed to institutions and large traders and they get full access.

And you can see that simulators on a demo account can make you delusional.

Not only one brokerage encourage their clients to start small and trade in real markets.

But you have to know that not every brokerage is on your side. So, you have to be very careful if you decide to practice on a real account. Losses are possible because what you lack is knowledge.

When to trade, size of money allocated to the trade, fundamental analysis of the stock, what tech indicators will you use, what is the broad market, what is the sector market, what is the stock chart doing, can you read candlestick trading, can you read overall chart trading, which way is it trending up or down or sideways?

Trading forex how to do that?

So many unanswered questions and you still have guts to trade on real?

C’mon!

You should avoid to pay a “tax on stupidity” and lost money into bad trades. You should choose to educate yourself first, then trade with extreme caution. First education, then trading plan, then and only then you can go to trade with a real account.

Adore the trade, the process, your path, the ideas that are working, not money! The money will come, soon or later if you are good and know what to do. Put some passion in your tradings, a lot of caution, pay attention in every single moment of your trading, and be watchfulness.

Is demo account useful?

When you make the profit, should think about the real account.

Even it is just a demo account. It will be good practice for real trading. And never be a gambler. That can be the worst habit when you step into a real account. Gambling in RL will get you killed; you will lose your family, friends, money, your life.

Look to educate yourself as the first step.

Make a trading plan, plan your trade, and trade your plan. Knowledge,

Volition, Action are the 3 components of trading.

Some fresh forex traders in their first few months of real trading end up shocked that they are having difficulties. The majority of problems come from the failures to replicate the gained success in demo trading to a real account. Don’t be one of them. And remember, I’m not going to give you advice, I just want to share my and my friends’ experiences.

Trading is at your own risk.

Good luck!

18th July 2018