Year: 2019

Forex trading commissions – how to pay less

Forex trading commissions can eat up a big part of your Forex profit.

By Guy Avtalyon

What are Forex trading commissions? We want to share with you some little-known ways to save on commissions. Also, we will show you how to cover back your costs.

Well, in any business that you go into, you’ve got specific costs: rental cost, marketing cost, etc.

In the trading, commissions are the transaction costs. That means, we pay it to broker and that’s how the broker makes money.

How do brokers charge their Forex trading commissions?

There are 3 kinds of brokers, but let’s separate them into 2 main groups:

1 – market maker

These brokers charge a commission on the market bid/ask spread. Whatever the bid/ask spread is, they’ll quote you one or 2 pips higher.

For example: if the market is quoting at 1.2456 they will quote you at 1.2457. This extra pip goes to the broker so they can make money.

2 – ECN brokers

An ECN broker is a forex financial expert that uses electronic communications networks (ECNs) to give clients direct access to other participants in the currency market. They charge a fixed commission. The lowest commission we saw is $3,50 per lot.

That means, for every lot you trade, they will charge you $3,50 to buy and $3.50 to sell.

So, when you open and close a position, known as a round of the trip, the total commission you will pay is $7.
Let’s see what the bid/ask spread looks like for two sorts of brokers.

Assume you want to go long on one lot of EUR/USD. And you buy at 1.2456 and exit at 1.2476 making you 20 pips in profit:
20 pips x1 lot = $200

But there are commissions.

Let’s see how the different kind of brokers will charge you Forex trading commissions:

Market maker: They quote you 1.2457, which is 1 pip more, that will cost you $10 per lot. When you sell, they quote you 1.2475, which is 1 pip less, and that will cost you $10 per lot.

So we can see that the total cost of your round trip is $20 per lot. Out of your $200 profit, $20 goes to the transaction costs. That is 10% of your profit.

Your cost can be higher if they were marked up by more than one pip.

ECN broker: When you buy at 1.2456. They charge you a fixed commission of say, $3.50. When you sell, you sell at 1.2476 and again, you will pay $3.50. The total cost per lot is $7 off your round trip. It is also out of your $200 profit.

And, can you see the difference?

It’s in all the math.

What else you need to know about Forex trading commissions?

First of all, how much commission you pay when you place a trade depends on the number of lots you trade or your position size.

Meaning, the bigger your position size, the bigger the number of lots you trade, and the higher the commission you pay for your trade.

So, let’s see, what defines the number of lots you trade or your position size?

Of course, it depends on how close your stop-loss is.

Do you know the formula?

Your stop-loss distance is the only point you can really manage on a trade-by-trade basis. The smaller your stop-loss distance, the bigger the number of lots you trade, and the more commission you pay. You can check this plays out using a Forex position sizing calculator, it’s easy to find online.

So, you’ll see, your account size is $5,000 and your risk is 3% per trade, and your stop-loss is 8 pips away. With the help of this calculator you know you’ll be trading 1.875 lots. and you know that you have to pay the commission of $7 per round trip.

The math shows:

$7×1.875 lots + $13,13 commission.

But what will happen if your stop-loss is 20 pips away?

The calculator shows that the number of lots you’ll trade is 0.75. Let’s calculate the commission:
$7×0.75 lots = $5.25 commission.

Should you go for a wide stop-loss?

That can be okay if you are a position or swing trader.

But if you have experience of a few weeks or a few months your stop-loss is further, for example, 30, 100, or 200 pips away.
When you got a wide stop-loss, the number of lots you trade will be less. On the other hand, the transaction cost takes up a smaller percentage of your profit.

The one thing is certain: As a trader, you have to pay the spread and your broker always earns it. To get the best contract possible, you have to choose a reputable broker. The one who has substantial relationships with the large foreign-exchange banks.

You will find in the end, the cheapest way to trade is with a very reputable market maker who can provide the liquidity you need to trade well.

27th March 2019
The pattern day trader rule

3 min read

The pattern day trader rule is among the most misunderstood stock market terms. The rule says you must support a brokerage account balance with at least $25,000.

FINRA rules define a “pattern day trader” as any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than six percent of the customer’s total trades in the margin account for that same five business day period.

This rule represents a minimum requirement, and some broker-dealers use a slightly broader definition in determining whether a customer qualifies as a “pattern day trader.” Customers should contact their brokerage firms to determine whether their trading activities will cause them to be designated as pattern day traders.

Just leave this confusing definition. Forget it!

Point is that you need a minimum $25,000 to start the day trading!

Are they crazy? That’s a tonne of money, don’t you think? Who can start the stock market run with that much money? So, what a day trader has to do?

Yes, we have to leave hypotheses. There’s so-called pattern day trader rule. And it is considerably more complicated than most people think.

You probably hear about the term “day trader”, but you don’t hear “pattern day trader.”

Honestly, they’re actually the same.

However, if you want to get into day trading you have to know the rules.

The Financial Industry Regulatory Authority (FINRA) rules, provides a clear definition of who a “pattern day trader” is.

Once again, you’ll need $25K to day trade.

Well, if you don’t know the complexities of these rules, you could possibly find yourself broken one day.

Hence, here’s what you have to know to be a pattern day trader.

Day trading isn’t for everyone.

It depends on your risk tolerance. Or how much time you need to allot to learn about day trading. However, there are a few key postulates. You have to keep them on mind before you become a successful day trader.

Do you want to be a pattern day trader?

Essentially, a day trade is when you buy and sell or sell short then cover the same security during the same trading day.

If you do this more than 4 times in five business days, and if the number of day trades is more than 6% of your entire trading executions in that five business days, you’re a pattern day trader.

Nevertheless, if you trade, for example, three-day in five business days, you’re not a pattern day trader. So, you don’t need $25,000.

But if you want to trade every day, then you have to follow some rules.

Even if you’re not a pattern day trader, you can still make money.

There are so many traders able to add money to their accounts using some individual strategies. And they would never call themselves a pattern day trader.

From a pattern day trader, is demanded to maintain minimum equity of $25K on any day when executing day trades.

This minimum money must be in your account before you perform any day trades.

So what happens if you get a few losses and your capital falls below $25,000?

Breakdown the pattern day trader rule

The rule is simple. You are not ready to “day trade” until you recharge your account with the $25,000 minimum capital.

You can do this by a combination of cash and available securities, of course. The cash isn’t the only way.

Pattern day traders who exceed the day-trading buying limits will get a day-trading margin call.

After that, they have five business days to collect funds to meet the margin call.

If the margin call is not served, the account will be restricted to only two times the maintenance margin excess.

Moreover, if it’s not filled by the fifth business day, such pattern day traders will be restricted to trading only on cash. That will be the available basis for 90 days or until they meet the margin call.

Listen, it is just nonsense.

Who did tell you are not successful in the market just because you have a small account?

You just might not meet the margin requirements to be recognized a day trader.

For example, you can build your wealth on low-dollar investments.

Examples of the pattern day trader rule

Say, if you buy 200 shares of Apple. And, you sell 200 shares the same trading day.

Voila! You are a day trader!

So, according to FINRA, if you do this extra 3 times inside five business days, you are a pattern day trader.

But, for example, you bought 200 shares of Apple and did not sell until the next trading day.

This is not a day trade.

So, what if you have a small account or simply you don’t want to open an account with over $25,000?

Well, you could look to other effective trading styles.

The bottom line

The pattern day trader rule does not limit you from making more than three trades per week. You can hold stock or even two or three stocks overnight, every single night, but you are limited on your intraday trading to just three intraday trades per week.

Those who are looking to day trade need to understand how the pattern day trader rules.

You should know is a pattern day trader is for you. Anyway, there are some other ways to become a profitable trader.

And, more important, without an enormous trading account.

Don’t waste your money!
risk disclosure

26th March 2019
The Bear Market Rally How to Recognize?

What is a Bear market rally, how to recognize it, what to do?

By Guy Avtalyon

Some analysts claim that the bear market rally will come later this year or next. If it will, it is time to get out of stocks. The returns tend to be the strongest 12 months or so before the start of a collapse.

Historically, profit has been smaller for investors who got out two or three years prior to a recession.

But, past performance is no guarantee of future results.

So, are we in a bear market rally or a new bull market?

We’ve been in a bear market since the market’s peak in early October.

The current stock bull market becomes 10 years old this month.

It was a useful time to participate. Especially if you’ve held to an investment strategy that prefers dividend-paying stocks.
The bull market will end with a whimper. There will not be a bang!

We’re definitely in a bear market. It started on September 21 of last year, actually. On that day the S&P 500 last hit a record high.

A standard bull market pattern looks like an elevator. It is described as a gradually rising market with an absence of volatility.

For example, the bull market of November 2016 to January 2018 was a typical bull market.

There wasn’t one 3% pullback during the entire period. That was a new record on the market.

There is always the risk that this time is different due to changes in market structure.

We are at the beginning of a “new bull market” at least in a headline-oriented technical sense.

Will it last, or are we fated for a double top?

This month is likely going to be a crucial point in helping to find the answer.

Three big news events were set to reveal what markets the world over have been expecting for years already.

The first was the March 1 trade deal deadline that President Donald Trump had set with China.

The second is the March 29 Brexit deadline. The third materialized in February with the Federal Open Market Committee releasing its Jan. 30 meeting minutes. In those minutes, “almost all” FOMC members agreed that an announcement to end balance sheet normalization should be made “before too long.”

What is the bear market rally?

The stock market is volatile and in continuous changes. Investing in stocks is relatively risky. It can be difficult for even the most experienced analysts to predict where the market is headed at any given time.

Even throughout times where the market seems to be acting well, stock prices can apparently begin to fall.
On the other hand, there is a possibility for stock prices to rise in a poor market.

That is known as a bear market rally.

A bear market rally is a period during which stock prices increase despite the fact that the market on a whole has been on a downward swing. This is the definition.

So, once again!

The bear markets are characterized by falling stock prices. When markets upswing that can be a pleasant turn for investors. Also, it has some disadvantages.

Bear market vs bull market

The terms “bear market” and “bull market” are adopted to define the quality of the stock market over a given period of time. They are originated from the behavior of how these animals strike their victim.

When they’re on the offensive, bulls tend to attack with their horns thrust upward, but bears tend to swipe their paws down.
When is the bull market, we are talking about high investor confidence and widespread optimism. Through a bull market, stock prices frequently go up within other positive economic factors.

A bear market, as contrast, is a period of low investor trust and depression. Stock prices normally fall during bear markets. They usually project overall economic downfalls.

Dangers of bear market rallies

Through a bear market rally, stock prices regularly rise between 10% and 20%. Bear market rallies can last from a few days to several months. Anyway, they are short-lived.

The confusing thing, a bear market rally with an approaching bull market, are both periods where stock prices rise.
Where is the difference?

The difference is that bear market rallies are temporary, and they’re almost always come before periods of more drops. Just before the stock market crash of 1929, for example, there was a brief bear market rally. Unfortunately, that really was replaced by a deeper crash that in the end resulted in the Great Depression.

At first sight, a bear market rally sway appears like a good thing. The investors have a break from the descending direction of the market.

True is, bear market rallies can be terrible for investors who start buying stocks because they hope that things are turning around on a long-term cornerstone.

And, what happens then?

They lose money when those rallies end and the market proceeds its continuing drop.

The reality is that it is hard to separate the bear market rallies and new bull markets.

It makes buying stocks a gamble.

Especially if you are for short-term investors looking to get in and get out quickly.

Long-term investors are not burned when bear market rallies give way to plunging stock prices.

They can wait for the crisis to go away.

Don’t waste your money!

25th March 2019
Choosing the Right Forex Broker

How to choose the right Forex broker? What are the best of the best in the market?

By Traders-Paradise Team

Choosing the right Forex broker is not an easy job. When we are evaluating any Forex trading broker, we examine their reputation in essence. Sometimes we can find a reputable broker but sometimes we face scammers.

You wouldn’t believe how many scammers are out there! Even among customer’s feedbacks from forums discussions. You can find the opinions of other customers.

But can you believe them?

We recently heard about services that provide so-called ”black-marketing” for customers.

Choosing the right Forex broker can be disappointing.

Here, in this Traders Paradise site, you’ll be provided with all the information you need. And, moreover, we are giving our honest opinions based on our research

So, why would you need us for that? Choosing the right Forex broker is a remarkable decision. We tested the most popular brokers and what we found is in the article below. We did it for you because choosing the right Forex broker is a hard-working job these days.

Let’s begin.

ZuluTrade

Zulutrade provides multiple automation and the copy trading options across forex, indices, stocks, cryptocurrency, and commodities markets It is a market leader in automated trading. From scripts to auto execution, APIs, or copy trading. The exchange is a global social trading and copy trading platform for the forex market and cryptocurrency market. It is extremely popular. They have over 1 million users and $1.1 trillion in daily volume executed between all its active member accounts.

WOW, impressive statistics!

That’s why ZuluTrade become an epicenter of the social impetus for market members. You can use its platform to copy the best ZuluTrade traders. It is an easy way, you don’t have to pay attention to charts or analysis. The charts are so boring, yeah? Hmmm!

OK, but it is their advantage, not yours.

Moreover, they have more than 100,000 different signal providers. What do you say? Great? Yes, it is great.

ZuluTrade is a next-generation signal service. When you subscribe to some of these traders, the signals that they provide will then be automatically applied in your own trading account. In real-time. This is a completely free service and it really is a win-win. Signal providers earn plentiful commissions if they are permanently profitable.

And you, as signal subscribers, you want to earn decent profits. Right? It will cost you nothing. Zero! We hope this helps you in choosing the right Forex broker. Unlike many other forex signal services that charge a monthly fee, ZuluTrade is a perfectly free trading service.
Of course, they have earned. ZuluTrade has a relationship with many of the forex brokers and takes a small commission from the spread of each trade. Part of them goes to the signal providers if they are profitable. But only IF.

One of the main benefits of joining ZuluTrade is that you can make money from forex trading without having to trade the markets yourself. Therefore it is ideal if you are lucky and have a full-time job, so can be lucky twice.

Lucky you, you don’t need any previous knowledge of forex trading. Because you won’t be the one making the trading decisions. Isn’t it good? But think once again to educate yourself about the various different aspects of currency trading. This will help you to estimate all of the signal providers and understand how they trade the markets.

You don’t want to be just a follower, you want to KNOW what are you doing. So, learn!

Tradeo

Tradeo operates as an independent broker, focusing more on Social Trading features than on Copy Trading ones. Its Social Webtrader is cutting edge, and among the most “social” platforms in the field.

The Signals section is certainly interesting, it’s a sort of Feed that collects the trades made by other community traders. It is offering users the chance to see click on any operation to see its details, and to copy it, still with just one click. Tradeo really stands out is in the trader compensation system.

Basically, Tradeo has no compensation system for Signal Providers, meaning no one is rewarded when someone copies their trades. With the platform that fully integrates both social and trade execution within the same visual interface.

Tradeo offers its clients access to the MetaTrader 4 (MT4).

This is the trading platform which is one of the world’s most popular Forex trading platforms. MT4 allows traders to access advanced technical analysis and to use automated trading systems. The broker’s own platform has tools that are best used for social trading. It is also stable. And we must say, we think they have tighter spreads compared with other brokers since they follow an STP system. With this, we could say that you can profit well. However, their withdrawal process becomes a downside.

You could receive it after a week. That’s a pretty long wait and we hope they work on that. Also, it has the Live stream of trading signals that allows you to view what other traders are buying and selling in real-time and also Live market notification that keeps up-to-date with market movements and improves your trading decisions.

It highlights their reliability is the quality of their customer support service. To provide their clients with unfettered access to the support services, Tradeo has made their support services available on a 24 hours basis through email, live chat, or the telephone. This means that regardless of the time of day, a trader can always request assistance from the support staff at this broker.
Remember, choosing the right Forex broker is not an easygoing job.

TD Ameritrade

Despite higher trading fees, TD Ameritrade got top marks for its $0 minimum, free tools, and research and multiple trading platforms. The company offers an electronic trading platform for the purchase and sale of financial securities. Such as stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed-income investments.

It also provides margin lending, and cash management services. Ameritrade develops and affords innovative brokerage products and services. They are tailored to meet the varying investing and portfolio management needs of individual investors and institutional distribution partners.

Through its brokerage subsidiaries, it provides a dynamic balance of investment products and services that fit the changing needs of investors. The company’s full spectrum of services for the individual investor includes a leading active trader program.
Such as long-term investor solutions, including a national branch system. As well as relationships with one of the largest

networks of independent registered investment advisors.

TD Ameritrade is a well-known and popular stock trading platform. It provides powerful software for traders of all levels, includes some of the best trading tools, and has recently lowered its pricing. It is a good option for experts and beginners.

Its think-or-swim platform is expansive but also well organized. Thinkorswim is a desktop software product by TD Ameritrade that offers tools and educational services for online investing. It is geared for self-directed stock, options and futures traders. It is easy for use, you can find securities and add them to a watchlist or buy them very quickly.

TD Ameritrade’s platform comes with a variety of premade watch-lists. You can make trades directly from these watches-lists. Also, it has a powerful search function that allows you to search for stocks by industry. Also, you can create alerts for multiple scenarios and price ranges, a useful tool that can help you quickly move on price movements.

Thinkorswim includes a customizable dock, which is always visible and provides the tools and information to spot market opportunities and implement stock trading strategies.

Our favorite is the Portfolio Planner tool. It is helpful for creating a suitably balanced portfolio of stocks, ETFs, mutual funds, and bonds. Investors have two opportunities. They can either build a customized model or pick a prebuilt one. Moreover, it is also a helpful monitoring tool to control allocation direction. Hence, it provides you to properly rebalance over time.

The command center screen brings all your important information together in one place. If you want something marvelous when choosing the right Forex broker, try them. Traders can use with no minimum or specific trade criteria for access.

Wallstreet-forex robot

If you want something different when choosing the right Forex broker and full algo experience, try WallStreet Forex Robot 2.0 Evolution. Its performance is very good for your real money accounts. Everyone who is interested in WallStreet Forex Robot 2.0 Evolution can visit their official website and check the robot’s latest performance on real money accounts.

One more thing WallStreet 2.0 Evolution comes with +2 bonus robots WallStreet ASIA and WallStreet Recovery PRO. Their performances are good. If you follow all their instructions your success is guaranteed.
It is worth checking their website.

You can see the live results of the robots on our real money accounts. If you tried the older version of the Wall Street Forex Robot, then you’ll notice a major difference. Now, the site has a very pro expression. You will find an intuitive user interface. Navigating the site is so simple. The entire system is smooth-running.

Traders Paradise can assure you that you’ll enjoy the latest version of the program. This high-grade program has a lot to offer advanced and new traders. The program involves a Broker Spy Module. This module is created to protect the trader from scams and unethical brokers. The main advantage is the program works by automatically scanning for new updates and settings.

Hey, you won’t have to worry about restarting the robot. This is a great feature. The software is designed to ensure brokers cannot steal your money. This new program doesn’t allow the scam broker to fool the software using methods such as delayed order executions and spreads. The software will monitor for broker movements and investments all time and can easily recognize a scammer, 24/7.

We hope this helps you in choosing the right Forex broker.

81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether
you can afford to take the high risk of losing your money.

24th March 2019
Bear Market Definition And How to Profit From It

When the investors don’t have hope in stocks and start to sell, the stock price will drop more and more

By Guy Avtalyon

The bear market is a period of consistently falling stock prices. Usually, a bear market is defined by a 20% or bigger drop in stock prices lengthening over a time frame of two months or longer.

The variation in prices is measured using the movements of a major stock index. For example, the Dow Jones Industrial Average or Standard & Poor 500 Index.

A bear market is distinct from a correction. Correction occurs when stock prices drop by 10 percent over a shorter time frame, usually less than two months. The average bear market lasts 1.4 years. The average cumulative loss is 41% during that period.

A bear market is when the prices of stocks or bonds are falling. In fact, a bear market could describe any market if the prices are decreasing.

The term is typically used in relating to the stock market, but it can also describe specific sectors such as real estate, bond or foreign exchange.

A bull market, on the other hand, is the opposite. In a bull market, the price trend is upwards.
Bear markets are cruel when they ran. The experience of any stock investor who was invested in stocks during 1973–1975, 2000–2002, or 2008, shows that.

Luckily, bear markets tend to be much shorter than bull markets. Also, if you’re well-diversified, you can get through without much loss.

For clever investors, bear markets can provide opportunities to boost the portfolio. Also, it is a good time to lay the groundwork for more long-term wealth-building. We will talk about this later.

Examples of a Bear market

A famous example of a bearish market is the recession that followed the great Wall Street stock market crash of 1929.
The investors were massively fighting to get out of the market. They tried to avoid extreme losses and kept on selling their stocks. Hence, they caused a further drop in the market.

The market collapsed on October 29, 1929. Then came depression in the economy, known as the Great Depression.

In fact, the Dow Jones Industrial Average declined by 89% through 1932. Then came the housing bubble of 2006. Real estate prices skyrocketed by more than 100% due to speculative borrowing. The consumers could get a mortgage to buy a new house. Moreover, more and more people were into the real estate investment spiral. Their plan was to make a profit from purchasing rental properties and selling them later.

These two circumstances boosted housing demand, but real estate prices too.

What happens in a Bear market

Bear markets mean low investor’s trust and huge pessimism.

The investors continue to lose hope in stocks. They begin to sell securities in order to protect their investments from potential losses. This movement can trigger further declines in stock prices.

Then you have speculators on the scene.

They come back into the market to capitalize on lower prices, which is good. Because, if stocks begin to gain impulse through reinvestment, a bear market can turn into a bull market.

What triggers a Bear market

Well, it can be triggered by plenty of factors. For example, the main economic transformations, such as fluctuations in oil prices, can influence the evolution of a bear market. Volatility in foreign markets or political disagreements on a global level may also cause the movements in the market.

For investors, the primary attention in a bear market is how to minimize losses. To achieve this, many investors may try to turn the market when buying and selling.

But that’s a wrong dance at best.

The end of the bear market is generally when stock prices move upward again by 20% or more.

How to profit in the Bear market

In a bear market, the stocks of both great and poor companies go down. But poor stocks tend to stay down, while great stocks recover and grow again.

The strategy for investors is easy. If the stock of a valuable company goes down, that is buying opportunity.

Good material is on sale!

Thanks to the bear market you can reveal a great stock at a bargain price.

Also, if during the bear market, stock price drops, but the company is powerful, still has a profit and still pays the dividend, you might be sure such a company is a good buying opportunity.

If you see a stock whose company has a bond rating of AAA, that may be a good buy in the time of the bear market!
Bear markets may be hard for good stocks. But to be honest, they’re brutal to bad stocks.

When a bad stock goes down, it often goes into a more drastic decline as more and more investors look into it. Many investors would short the stock and profit when it continues falling.

Going short is a risky way to bet. Why?

If you’re wrong and the stock goes up, you may have unlimited losses. A better way is to consider buying long-dated put options.

That may give you the profit if you’re right and the stock falls. But, at the same time, it limits your losses if you’re wrong.

Is margin trading useful?

Use margin wisely, and you will have a powerful tool in the bear market.

Using margin to gain dividend-paying stocks after they’ve corrected is an excellent tactic.

But, keep in mind that when you employ margin, you do add an element of speculation to the mix.

For example, if you buy 100 shares of a dividend-paying stock with 100% of your own money means you made a great investment. But if you buy the same stock with margin the risk is added.

You wouldn’t like to use margin before the stock corrected or declined. Remember, the brokerage firm wants you to have enough “stock collateral”.

Say, you use margin when the stock is high and it later falls!

Well, it can be dangerous, indeed.

But if you use margin to buy the stock after a notable fall is much less risky.

The best tips

You can profit in the bear market also if you buy a call option, for example.

But it is about speculating, not investing. The call option is a derivative, and it has a finite shelf life. If you’re not careful it can expire worthlessly.

The good side of a call option, it is cheap to buy and it is a very cheap vehicle in a bear market. This means if the stock price dropped but the company is in good health, betting on a rebound for the company’s stock can be profitable.

Also, you can write a covered call option.

That means you accept an obligation to sell your stock to the buyer of the call that you wrote at a specified price if the stock rises and meets or exceeds the strike price. As a return, you receive income.

Where is the benefit?

If the stock doesn’t increase to the option’s specified price during the life of the option, you can keep both your stock and the income from writing the call option.

Writing covered call options is an almost safe way to boost the yield on your stock position by up to 5%, or even more.

The catch here is that you may sacrifice the opportunity to make gains above that specified price.

But if you did right, a covered call option can be a practically risk-free strategy.

Bear market cost investors money because security prices generally fall. It doesn’t always give advance notice of its arrival. But bear markets don’t last forever.

You must know when to buy and when to sell to maximize your profits. Many investors try to “time the market,” or estimate when a bear market has begun and when it is possible to end up.

The technical analysis is specially engaged in this work. You have to be patient. Just keep watching the company’s vital statistics. If the company looks good, then keep collecting your dividend.

Don’t waste your money!

22nd March 2019
Simple Forex strategy but Profitable

(Updated Oct. 21)

2 min read

A simple Forex strategy but profitable is the key to constant long-term profitability.

Why is that?

Because it allows traders to benefit on their advantage without emotions day in and day out. We want to present you a simple but profitable forex trading strategy.

Traders Paradise found it is a swing trading system, and we will trade on a daily chart.

So it is vital to follow along carefully and make sure that you understand all the steps.

Why swing is a simple and profitable trading strategy?

The more simple your trading strategy is, meaning less moving parts, the better it performs.

Do you remember from our previous posts: KISS rule!

Simple means a robust trading system which can manage through many market conditions.

Yes, you may find that many traders use so many different trading indicators.

And they are still looking to be consistent?

You have to find what your indicators do. That’s your first task.

Now, get rid of the indicators that really are not benefiting you.

This simple profitable forex strategy has a few moving parts.

If you still don’t know them, they are simple to learn.

So, what you have to learn?

How to use Fibonacci? Find here>>>.

Do you know how to enter a trade? Find here>>>

And you will need to know how to use Stochastics indicator.

We suppose that you already know what is it.

The Stochastic Oscillator is a technical indicator that helps traders determine where a trend might be ending.

The oscillator works on the following hypothesis:

During an uptrend, prices will remain equal to or above the previous period closing price.

But, during a downtrend, prices will likely remain equal to or below the previous closing price.

The Stochastic help you determine if it’s still good for you to enter a trade after a moving average crossover. Also, it helps you to avoid oversold and overbought zones.

More about Swing traders

Swing traders hold their positions for a few days, but rarely more than a week.

Identifying and driving on trends early is the central objective of this trading style. The profit goal tends to be set higher than that of day trading. Hence, the swing trader is expecting that by holding out for a few days, there is a better chance of capturing a larger price movement.

Unlike the day trader, the swing trader has to deal with overnight risk.

Swing trading requires less monitoring of the market. This type of trading is generally favored by people who hold their day jobs.

Honestly, if swing trader wants to be successful, such must still keep up-to-date with the latest fundamental and technical changes in the market. Even if they are not monitoring the market all the time.

Back to our simple and profitable forex trading strategy

This is the daily chart of the USDJPY Forex pair.

What can you see?

Point 1 is the beginning of the Fib pull

Mark 2 is where the pull of the Fib tool was ended

With 3 we marked the zone of the 61.8% retracement level and below that, in the red rectangular area, you can see overbought Stochastic.

4 is point shows the price put in an inside bar/spinning top candlestick. The trade is shorting the lows.

Mark 5 is a profit target

You have to manage your trade while it is in progress. Hence, you may be stopped out depending on how tight your stop placement is. Many Forex traders make a common mistake. They use too tight a stop because they want a larger position size. Don’t do that!

The bottom line

Simple, profitable Forex trading system depends on your skills an affinity.

This is a simple trading system but it’s not easy yet. Every trade will not be a winner. The key is whether you can leap back after a loss. Anyway, you should test it out to see if it suits you.

If you have tested your forex system thoroughly through backtesting and by trading it on a DEMO account for at least 2 months you should feel confident enough to know that as long as you follow your rules, you will end up profitable in the long run.

Trust your system and trust yourself!

Don’t waste your money!

risk disclosure

21st March 2019
Forex Broker – What is it?

When you decide to trade the forex market, so you’ll need a Forex broker.

By Guy Avtalyon

But what is a Forex broker?

Let us explain this. That is a company that monitors and advises investors on current conditions in the forex market including conversion rates. Forex brokers may also provide a trading platform and other brokerage services for traders.

A forex broker is a company that buys and sells currencies on behalf of retail traders. It usually does through a forex trading platform. Like stockbrokers, they charge a fee in order to execute orders placed by their clients. It is regularly in the form of a spread instead of commission.

But, unlike stockbrokers, forex brokers place trades in the OTC market instead of on an exchange.

What is the forex broker’s role

A forex broker is a mediator that executes the transaction orders on behalf of his client as we said.

They are called intermediaries. Their job is to intercede between the market, on one side, and investors and traders on the other.

What is the forex broker’s tasks?

– to provide customers the market prices of the various financial instruments, through trading platforms or in some cases, by phone.
– The broker has to find a counterparty in order to satisfy the transaction request received from the client.
– Also, the forex broker has to send to the market the trading orders executed by his clients.
– Such a forex broker has to return information about the order outcome if it has been executed or rejected.
– Some forex brokers also act as governing agents. They calculate and pay taxes for the trader on the realized capital gains.

The forex broker operates as a middleman between the trader and the market.

In simple words, in order to find a buyer or a seller of currencies, the trader can go to a broker and find either a respective seller or a respective buyer.

Here you can find respective broker>>>>

Forex broker is not just the middleman between traders and another buyer or seller. Forex broker is also the middleman between traders. That is called a “liquidity provider”.

How to interact with a forex broker?

In its original sense, a forex broker is someone that you phoned in order to buy or sell currencies. But, the development of the Internet allows you to communicate with a broker through a trading platform or trading software.

If you are looking for a trustworthy, regulated broker, please check out this>>>

Retail Forex

A key concept for modern individual traders is retail forex. Traditionally, foreign exchange has been traded on the interbank market by larger clients such as banks and multinational corporations. They need to trade currencies for business purposes and hedging against international currency risks.

But, retail forex is the forex that is traded through dealers, often by smaller or individual investors. These firms are also known by the term “retail aggregators.” This became popular in the late 1990s with the development of internet-based financial trading. That allows smaller traders to get into markets that were before confined to businesses and financial institutions.

A retail forex broker allows traders to set up an account with a limited amount of assets and let them trade online through trading platforms.

If you are looking for a trustworthy platform, check out this >>>

Most trading is done through the spot currency market.

Forex trading is popular among individual traders because brokers have offered them the chance to trade with margin accounts.

These allow traders to borrow capital to make a trade and multiply the principal. They use it to trade by large amounts, up to 50 times their initial funds.

The brokerage industry means extreme competitiveness.

Even among those companies, the competition is extremely high. Picking the right type of brokerage house is a difficult choice.

How about the things retail traders need to know before deciding the broker to use? What are the conditions that make a good broker and what would be a perfect Forex broker?

Find HERE>>>

Honestly, choosing a Forex broker should be a simple process. Traders should not end up spending a lot of time looking for the right broker. Forex brokers offer an essential service for markets, especially for retail forex traders.

With an internet connection and a computer or mobile phone, traders can now open an account and trade in a market. Brokers also offer services that can be valuable in assisting traders to understand price movements and potentially make profits.

Don’t waste your money!

20th March 2019
Initiative Q – Is It a Scam

3 min read

Initiative Q invitations for the new currency have been circling since October last year. According to its own data, this cryptocurrency (?) wants to turn around international payments entirely. Makers of Initiative Q are not revealing how this is supposed to work.

So, why we need a currency like Q?

Does anyone know the answer?

There is no direct registration.

Moreover, there is no product!

Did anyone see a demo of Q?

Everything thus far is based on a vision, and even this is extremely problematic.

What we have for now?

Total garbage!

An email database and list of friendship groups! C’mon!

Initiative Q will sell 50,000,000 emails for $1,000,000 or more.

Easy money for them, indeed! But for them, not for you!

Initiative Q’s only announced great plan is to replace the central banking system with their own.

So, why we would be interested in that? What’s the difference?

Initiative Q offers a centralized, mysterious, barely known firm to be your prime banker. Innovative. Bravo, artists!

Compare it with the independent, incorruptible and trust-based products such as Bitcoin.

The Initiative Q homepage promotes in bold letters that signing up today is worth an estimated future value of over $17,500. Remember this bold statement.

The first invites for Initiative Q went out to a select group of people six months ago. But in recent months, the invites have reached the masses. Their goal is that as many people join the network that the currency, known as Qs, will someday have financial value.

Really?

So, how do they do that? How do they, geather people?

Over social networks! You don’t believe? Take a look!

According to their plan, real progress is not set to start before the middle of 2019. The start of the payment network is planned for late 2021 or later. Yes, that’s right, guys! It’s ridiculous.

What makes it laughable is that everyone apparently knows that this is a scam.

Why?

All you have to do is give them your email. And it isn’t a game.

Do you remember what happened with the customers of Facebook and sale of their personal data to Cambridge Analytica?

Or what happened when Google’s loophole, that made G-plus customers data public, was revealed?

It asks for your personal information

The legit airdrops don’t ask for your information, because they don’t care. They aren’t requiring security because it doesn’t matter who’s receiving the tokens. Therefore presenting personal information is unnecessary.

Initiative Q, on the other hand, asks for your name and verified email address. We must ask WHY?

That data is important. Advertising companies will cheerfully pay lots of money for access to good lists.

The data required is something incredible.

When you sign up you give your name and your verified email address.

These emails could easily be used to get-rich-quick schemes. Or, as we can safely presume, for other scams.

Yes, they say in their privacy policy that they don’t sell your data.

Absolutely, so does Facebook. That didn’t stop Cambridge Analytica from using data to advertise during the 2016 US election.

A privacy policy will never stop other company from using your data.

For example, what will happen if owners of Initiative Q decide to sell their company to some other? That company will have every right to change the privacy policy. In front of your eyes.

You have no guarantee that your data is private.

So that raises the first red flag for us.

Is this an MLM?

One common accusation leveled at the Initiative Q is of being an MLM scheme. But while they do appear to have some multi-level characteristics, their denial of this accusation has merits. They currently do not appear as being and MLM as they lack the requirement for that second letter M. They are not “marketing”. At the moment they are still not marketing any product.

They are not selling it, nor collecting investments. They do not offer any type of product on the market, because they still do not have one. This in its own right is an issue.

So what they do?

They are trying to participate in the market without doing what that participation actually is, offering a product.

Obviously, none of this is going to work. Initiative Q will simply disappear if it attacks national currencies in any way.

But, Initiative Q must be praised for its marketing department.

As viral operations, it has been effective. You can see people you would expect to have zero interest in obstructing national money sharing the links.

We can’t conclude yet whether this is a marketing joke or even a fraud. But it certainly already constitutes a prime example of a mass hack.

Initiative Q is offering a Free Money

If a stranger asks you to give him your name, email address, and a password and he will give you free money, would you do it? You would be rather suspicious. Right?

So why are people doing contrary on the internet?

The main rule in the crypto world is: If it sounds too good to be true, it usually is.

But, Initiative Q doesn’t even have a white paper about its technology will work. We think it is better to stay on the side of caution.

Collecting personal data is the perfect way to build a mailing list for marketing projects. The list of a user interested in crypto means the database is full of users that can all be verified through social media.

Who will stop Initiative Q to sell this database for a very nice sum of money?

Be careful!

Moreover, so many people use the same email and password combination on many sites, so that could be a dangerous game.

To be more specific, Initiative Q is offering free money to you today, but tomorrow they could gain a lot of coins using your personal data without your permission.

Initiative Q and Cryptocurrency

Initiative Q claims that it’s Qs is better than cryptocurrency.

They claim that cryptocurrency is just “digital money that is hard to counterfeit.”

Other lies that Initiative Q presents include that Bitcoin supports just two transactions per second. Truth is that Bitcoin averages seven transactions per second.

They claim that cryptocurrencies have either no monetary policy.

This is completely lying.

Truth is that many cryptocurrencies have complex monetary systems. Their fiscal policies are set through programming.

Without human mistakes.

One lie more comes from the side of Initiative Q: Cryptocurrency users are expected to undertake complicated security procedures such as:
– generating cryptographic keys using dice,
– entering them into an unused laptop that is later destroyed,
– storing the keys using special hardware from multiple manufacturers,
– and keeping paper backups in bank safes.

We just have to say this is an unnecessary stupidity and generalization.

In one thing they have right.

That one leads them to the status of keeper the environment.

For mining cryptocurrency, it is the energy needed.

The Initiative Q tries to distance their currency far from cryptocurrency. So we cannot find where the value-add is over conventional currencies.

This brings us to our final point.

Initiative Q isn’t different from the traditional monetary systems.

They have this on their site:

Big IF!

The bottom line

Based on our research, we don’t believe Initiative Q is a scheme or serious project at all.

Yes, you do get Qs when you sign up or invite friends.

But Qs are currently worthless, it’s not really worth any money yet. Hence, there’s a lot of possibilities that Qs will be worth nothing in the future.

Yes, it’s possible that Initiative Q is not a scam.

Our problem with Initiative Q is that it shows how stupid they are.

They are wasting time and energy.

Instead of promoting this possible scam, they could be focused to do something really profitable for themselves.

This isn’t the way to get rich.

True money is produced by building businesses.

And in the end, one day they will be caught.

Don’t waste your money!

risk disclosure

Images Initiative Q source: screenshots from the official website

19th March 2019
Boeing shares fall faster than their jets

3 min read

The Boeing shares marked significant down since the March 10 crash.

One of its most profitable lines, the 737 Max 8 recorded the second crash of a 737 in less than five months.

Boeing (NYSE:BA) Co shares dropped by more than 2,2% early on Monday. It happened after a pair of newspaper reports asked more questions about the certification process for its 737 MAX jets before two recent fatal crashes.

A Wall Street Journal report on Sunday said that the U.S. Transportation Department was examining the Federal Aviation Administration’s (FAA) approval of the 737 MAX. In particular its anti-stall (MCAS) system.

According to “Refinitiv” data, Boeing shares have declined by about 10% since March 10. Accidents of its aircraft drained nearly $25 billion off its market capitalization.

Investors started selling Boeing shares Monday morning after the deadly crash of Ethiopian Airlines flight.

The stock dropped nearly 13% in trading since the crash.

It is obvious that Boeing is in crisis.

Is Boeing still a good investment?

Boeing has been one of the champions of the 10-year-old bull market. Boeing shares were higher more than 1,000% compared with a 315 percent increase of the Standard & Poor’s 500-stock index.

If you invested in Boeing 10 years ago, that arrangement has paid off.

For example, your $1,000 investment in 2009 is worth more than $14,000 as of March 15, 2019. That is a total return of over 1,000 percent. In the same period, the S&P 500 was up 270 percent. Say, your $1,000 would be worth just over $3,700, by contrast.

If you read our posts, you already know.

Any individual stock can over-perform or under-perform. Also, past returns can not foretell future results.

Boeing paused the delivery of 737 Max planes after the Ethiopian crash. It came less than five months after the previous deadly crash in Indonesia. Moreover, it was the same model.

The several major airlines said they would give up ticket-change fees and fare differences for those affected by the FAA’s grounding order.

Moreover, the flight-booking site Kayak also introduced a new search feature that allows users to exclude specific plane models.

We feel safer now, indeed.

The Boeing declared plans to roll out a software fix in the next several weeks.

The Boeing will take about 3-6 months to confirm the fix

However, Bank of America analyst Ronald Epstein said Thursday that the fix could take a longer: “Once Boeing identifies the issue … the most likely scenario is the company will take about 3-6 months to come up with and certify the fix,” he said in a note.

The truth is, airlines are still planning on flying these planes.

Boeing said in some comment it will “continue to build 737 Max airplanes while assessing how the situation, including potential capacity constraints, will impact our production system. ”

Last Monday, Boeing said it would expand a software upgrade to the 737 MAX 8, hours after the FAA said it would mandate “design changes” in the aircraft by April.

So, how to protect your investment?

The expert investor as Warren Buffett suggests you start with index funds. Index funds hold every stock in an index, they have low turnover rates, fees, and tax bills. They also shift with the market to reduce the risk of picking individual stocks.

Some people invest in individual stocks for excitement.

It can be a game, with emotions as volatile as prices of underlying stocks.

But are you sure you want to waste your time picking individual stocks?

Okay, maybe you really want to spend the time necessary to follow the market. How we can know what kind of character you are?

Maybe don’t mind the brokerage fees at all.

Oops, yes!

You have allocated the rest of your portfolio wisely to pad against possible losses.

The wide majority of investors invest in equities through funds, not individual stocks.

And you may be asking why.

Individual stocks are not easy.

Investing in individual stocks without the knowledge to perform fundamental analysis can cause you to jump in when at or near the zenith of the stock’s performance. If you found a stock in a list of “hot” stock tips, it is possible that its growth phase is at or near decline.

You should be careful.

Every time you make a decision to buy or sell, it will cost you commission fees. These fees can range from $4 to $30 or more.

And you should decide whether to make a transaction or not.

It is possible that you hold onto a stock far longer than you should in order to avoid the transaction costs. Right?

But you’re still settled to invest in individual stocks for profit, not for fun.

Then, try a stock screener.

A stock screener neither selects winning stocks nor keeps you focused on long-term goals. It does not make any real predictions or absolute judgments. It merely links to a data source based on the statistics you select.

If you really want a clever way to choose which stocks are performing well and which companies are currently robust and which ones are failing, stock screeners are a great place to start.

Don’t waste your money!

risk disclosure

18th March 2019
Support and resistance – Understanding Critical Rules

You can recognize support and resistance as horizontal trendlines which cause a stock’s direction to reverse.

By Guy Avtalyon

Support and resistance are two of the essential technical patterns. Also, they are very effective.

When the price is falling, support signifies the moment when buying overwhelms selling and prices reverse. Opposite, when stocks are moving upward, resistance is the point where selling is much bigger than buying, and the price rises stop.

In other words, support and resistance levels are important points in time where the forces of supply and demand meet.

The support and resistance levels are essential when technical analysts have to discover market sentiment and supply and demand.

Let’s take a look basic first.

Take a look at any trading chart. You’ll notice a zigzag form that is making its way up. So you can normally conclude it is a bull market. Every time when the market moves up and then pulls back, the highest point reached before it pulled back is now resistance. Remember this!

As the market remains up again, the lowest point reached before it started back is one that traders support now. So you can see, resistance and support are constantly created as the market changes over time.

When the support or resistance levels are broken, the supply and demand relationships that form these levels will change. If that happens, new levels of support and resistance will probably be established.

Support

Support is the level at which demand is powerful enough to keep the stock from falling any further. In the image above you can see that each time the price reaches the support level, it has difficulty penetrating that level. The rationale is that as the price drops and approaches support, buyers (demand) become more inclined to buy and sellers (supply) become less willing to sell.

Support is the price level at which demand is considered to be powerful enough to stop the price from decreasing further. As the price declines towards support and gets cheaper, buyers become more willing to buy. Hence, the sellers become less willing to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.

Resistance

Resistance is the level at which supply is powerful enough to prevent the stock from going higher. Each time the price reaches the resistance level, it has hard to move higher. The rationale is that as the price rises and approaches resistance, sellers (supply) become more inclined to sell and buyers (demand) become less willing to buy.

Resistance is the price level at which selling is considered to be strong enough to stop the price to rise further. As the price advances towards resistance, sellers become more willing to sell, but buyers become less willing to buy. When the price hits the resistance level, it is signal that supply will overcome demand and stop the price to rise above resistance.

Precisely recognizing these trend changes allows you to establish initial price targets and to develop your own sell discipline. Understanding the details of support and resistance levels will improve your chances of success.

Support and resistance understand the critical rules

Trends challenges

Support and resistance usually work as crucial trend changes. When a current trendline reaches resistance, you should be ready for a vital shift.

If support displays the flags of the violation, that same level will become a future resistance. As the chart illustrates, the same horizontal trendline continues after support is violated, but with differing effect.

Retests reinforce

Also, when retests reinforce, you have to follow one rule. The more often you test a trendline, the more valid it becomes. For example, if the chart shows solid resistance at some price and, let’s say during the three or four months you notice separate challenges of this level, you should expect future rallies to halt at this price.

Volume reinforces

If a resistance or support level is in association with the increasing volume, the trend becomes more valid. Consider the trading history in the chart.
Do you see the dates?
Every time when the price level is tested, the volume increases. When pattern adds weight to some level it indicates that overcoming that price point will take significant time.

Timepoints

The new set level is more useful. A difficulty with this bear market is that many traders recognize quick losses from the past while they were looking for support levels. Unfortunately, following a distant history, isn’t helpful.

This is a real-life example, by examining a three-year graph of Google (GOOG), we see solid support at $520. The support level hadn’t be tested for more than a year, and what happened? Stocks dropped in the fall of 2008.
This made support less important.
When GOOG quickly traded through $520 and continued dropping, traders were surprised and had losses.

The importance of support and resistance

The technical analysis serves to determine the future price of a security or market. Some investors will use both, fundamental analysis and technical analysis. Hence, they’ll use fundamental analysis to decide what stock to buy and technical analysis to decide when to buy.

Don’t forget that technical analysis is not an exact science and it is subject to interpretation. As with any discipline, it takes work and dedication to become adept at it.

Support and resistance are primary and essential technical analysis tools. On every time frame, intra-day, daily, weekly, and monthly, support and resistance levels are focused on by traders. Knowledge of these levels could hold a trader on the right side of the market.

18th March 2019