Year: 2019

  • Trading With Success – A FULL guide for beginners

    Trading With Success – A FULL guide for beginners

    Trading With Success - a guide for beginners 40

    By Guy Avtalyon

    You’re never too young to invest.

    This post Trading With Success – a guide for beginners published by Traders Paradise is for those who want to invest in the stock market but don’t know how to go about it.

    Are you scared of investing? Disturbed that you will lose money if you take part in the stock market? Do you think investing in the stock market is like gambling?

    What?

    Who thinks something like that, is totally wrong. Investing in the stock market it isn’t gambling.

    Stock market investing is all about investing in your own wealth and trading with success.

    How?

    Owning stock is like having a part of some company. By buying a company’s stock, you are actually funding the company’s development. If the company expands, the economy expands. And your share will become more worth. It is a kind of chain of wealth. What do you think now? Is the stock market good for you?

    Here, I want to clarify investing and I want to show you how profitable it can be in the long term.

    If the company performs well, it provides income to shareholders through dividends. And if the company performs really great, it’s share price rises. This is named as Capital Gains.

    The best part of trading with success?

    If you own a share for more than a year and you sell it for a profit, you don’t have to pay any tax on that profit! Interested already?

    Who doesn’t wish they could have invested in the early days of Facebook, Amazon or Apple?

    If you don’t have any experience investing on your own, getting started can be rather terrifying. It can be difficult to define how much of your money should be in stocks, what type of stocks you should look for, how to manage a portfolio and risks, or what common “rookie mistakes” you should avoid. With that in mind, I wrote this article.

    For you who come in the stock market for the first time, have a desire, have some fears, have no knowledge but you want to step to this wonderful world of stocks, shares, commodities, currencies or cryptocurrencies.

    DESCRIPTION of Trading with success

    No one likes to lose money. That’s why I wrote this Trading with success guide.

    Also, the pain threshold of some is greater than it is with others. If you’re bearing in your mind investment in the stock market but the thought of a loss upsets you, you likely shouldn’t invest.

    However, when you invest there are several things you should know to increase your chances of winning.

    That’s the subject of this article Trading With Success – a guide for beginners.

    Although there are numerous details and cautions, this article will help you understand the basics of how the stock market works and why stocks react as they do. I’ll also discuss a few things that every investor should know. Let’s omit the mystery, take a look behind the cover, and this terrifying name: trading markets.

    What I want to say is, historically, the opacity and transaction costs involved in this asset class meant that venture capitalists often had to spend thousands of dollars and hours to execute one single investment. Because of this, investing was liable to be open only to the big players on the scene. Thanks to equity crowdfunding platforms this is no longer the case.

    The biggest reason traders fail is because they cannot handle the psychological pressures of trading.

    Pressures often lead to stupid mistakes or terrible judgment and this naturally leads to unnecessarily losing money.

    What is important in Trading with success?

    The most important thing when trading is that you have a good and clear reason for every trade you take.

    At first, you will find instructions on how to become a trader. What your first step should be, how to register on a trading platform, what you have to have for that, I want to show you steps for investing or trading.

    And you will see how easy it is.

    First of all, you have to know that all successful traders were once beginners who studied trading from the very basics while they gained experience over time. We are not going to explain the background of the cryptocurrency or stocks and how it works, because it is not relevant to trading for the average user. 

    The trading principle is the same – buy low, sell high.

    Investing in market securities can be discouraging for the beginner. But with instruction, anyone can trade on the market. Trading with success on the market can be an exciting way to earn income on your savings or prepare for the future by investing for retirement.

     

    KNOWLEDGE IS IMPORTANT

    If you want to trade, the first thing is understanding the financial markets and how they work.

    I always like the example given by economist Andre Kostolany. He was famous for his investing skills and gave us wonderful quotations about markets and finance, like this one:

    “Never run after a bus or a stock. Just be patient – the next one will come along for sure.”

    In his books, he often suggested to the reciprocity between the cool, relaxed and concentrated investors, and the tense, panicky, scared rookies.

    “Always be fearful, never panic!” – André Kostolany

    The trader with the solid hands buys when the asset is cheap. Such a trader has both experience and capital, which have a  positive influence on nerves too. The solid hands stick around. The trader is not confused by the ups and downs of the market and knows exactly what to do. He or she makes his/her move at exactly the best time, purchasing at the bottom and trading at the peak, or at least pretty close. That is trading with success.


    Don't panic

     

    Some traders sell in panic, desperation or simply they buy.  So, how trading with success? The solid hands will sell again at a big profit when the market turns around again.

    And to whom do they sell to? To the nervous small newbies with their borrowed money and the nasty mixture made of both loss and regret. Such traders are uncertain, unsafe, insecure with weak hands. This isn’t trading with success.

    The weak hands jump off the runaway train in the middle of a crash.

    So, you have to know what kind of hands do you have.

    How will you find out?

    Trading is really not for everyone, that’s true. But also the truth is that everybody should have a fair amount of money in investments to build own wealth.

    If you have the right psychological structure and adequate funds you are able to speculate and take risks. In that case, you will run with patience, calm and with all those other things that make investing successfully.  And this absolutely involves genuine knowledge of the stocks and markets themselves.

    Well, introspection is very important in the field of investment.  It is essential to know what you can handle in cold blood, to understand your own psychic boundaries, to be conscious of your biases.

    It is absolutely important to know what you could actually lose on your investments and figure out can you live with it. If you are trembling, it is better to miss all of this.

    To avoid the majority of problems, new investors taking their first steps towards learning the basics of stock trading should have access to multiple sources of quality education.

    So that’s why they usually open a free demo account 

    Practicing and errors united with the capacity to keep pushing forward will eventually lead to success.

    The excellent benefit of stock trading lolls in the fact that this tournament can last the whole life, so you will have years to improve and sharpen your skills.

    Strategies practiced decades ago are still valuable today for trading with success.

    But you have to know, you have to play this game constantly in full force.

    THE VERY FIRST STEP – Open a stockbroker account.

    You have to find a trustworthy online stock broker and open an account. Become familiarized with the design and to take benefits of the free trading tools and research given to clients. Many brokers offer paper-money trading, demo account, which is helpful because you can trade with virtual money and have practice and learn.

    You should find the best online broker, the one that suits you the best. Some online stock brokers will provide you access to their award-winning client services. The others are known for cheap stock trades or robust trading tools. 

    Since 2000, the stock markets are trading managed online. All you need are demat (See below) and trading account to invest in the stock market.

    Open account

    What is the demat account?

    A Demat account is an account that enables you to hold your shares in an electronic form. Stocks in Demat account live in dematerialized format. That’s why this kind of account is called DEMAT.

    Dematerialization (DEMAT) is the converting material certificates to electronic accounting. Real stock warrants are removed and withdrawn from distribution in exchange for electronic recording.

    So, your physical shares are converted into electronic format.

    Dematerialization is the way of converting physical shares into electronic format.

    Opening a demat account it is the very first step.

    The benefits of demat:

    – Provides an easy and comfortable way to handle securities
    – Prompt transfer of securities
    – There is no stamp tax on the transfer of securities
    – Safer than paper-shares
    – Lessened paperwork for transfer of securities
    – Decreased transaction cost
    – There are no “odd lot” difficulties: you can sell even one share
    – Address change is registered with a Depository Participant (DP) and, at the almost same time, registered with all companies in which you hold securities. There is no need to communicate with each of them individually.
    – Transmission of securities is done by DP
    – Automated credit into demat account for all shares
    – One demat account can cover all investments
    – You have access to your demat account from anywhere on the planet

    HOW TO OPEN DEMAT ACCOUNT

    Demat account

    – Choose the stockbroker or company. You must be sure that the broker is solid and will take your orders right on time. Time is very important in the stock market. Even a few minutes can switch the price of the stock. So, you have to choose a trustworthy broker.

    – Examine brokerage’s prices. Every broker will charge you a specific fee to handle your orders. But, some will charge more, some less. Some will provide discounts based on the number of trades handled. You must take all into account before you open the account. One friendly advice. Try not to choose a broker who is cheapest. Sometimes a brokerage service with higher fees will give you more benefits. You have to estimate.

    – Next step, contact the brokerage company and ask about the procedure. It is regular for the firm to send an agent to your home, or where you want, with an account opening application. It is the Know Your Client (KYC) application. Usually, the agent will bring two forms. You will be able to read them and fill them. As I mentioned before, you will also need two documents to prove your identity and address.

    – Your application will be confirmed through an in-person check or through the phone-call. They will ask you to tell your personal details.

    After processing, you will receive your trading accounts details and that’s all. You are ready to place the trades in the stock market.

    HOW TO OPEN A TRADING ACCOUNT

    Trading account
    Select the stockbroker or company. Ensure that the broker is good and will take your orders in a timely manner. Time is the most important in the stock market. Even a few minutes can change the market price of the stock. Ensure that you select a good broker.

    – Compare brokerage rates. Every broker charges you a certain fee for processing your orders. But, some may charge more, some less. Some give discounts on the basis of the number of trades conducted. Take all this into account before opening an account. It is not necessary to choose a broker who charges the lowest fees. Good quality brokerage services provided often may need higher than average charges

    – Next step, get in touch with the brokerage company or broker and inquire knowledge about the account opening procedure. Very often, the firm would send a representative to your house with the account opening form and the Know Your Client (KYC) form. Fill these two forms up. Submit along with two documents to prove your identity and address.

    – Your application will be verified either through an in-person check or on the phone. You will be asked to reveal your personal details.

    After processing, you will get your trading accounts details and, you are ready to conduct trades in the stock market.

    Documents required

    It’s like the procedure for opening a demat account. You need to submit proofs of identity and address along with a passport size photograph and the account opening form for opening a trading account.

    PROOF OF  IDENTITY: PAN card, voter’s ID, passport, driver’s license, bank attestation, IT returns, electricity bill, telephone bill, ID cards with applicant’s photo issued by the central or state government and its departments, statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions, colleges affiliated to universities.

    PROOF OF ADDRESS: Ration card, passport, voter ID card, driving license, bank passbook or bank statement, verified copies of electricity bills, residence telephone bills, leave and license agreement or agreement for sale, self-declaration by High Court or Supreme Court judges, identity card or a document with address issued by the central or state government and its departments, statutory or regulatory authorities, public sector undertakings (PSUs), scheduled commercial banks, public financial institutions.

    And now you are really ready to start your first trade. 

    Wait! There are more. Read the next chapter. 🙂

    How to learn about trading

    First of all, don’t worry, you are not alone. There are a lot of people who are trying to make money. You can find a very good way to make money and for free. I am not a fan of pay-to-be-rich-quick scams online.

    For new investors wanting to take their first steps, I offer great answers to the simple question:

    “How do I get started? How can I learn about trading?”

    Your first step toward learning the basics of trading should have multiple sources of a good education. Trials and errors combined with the ability to continue will finally lead to success.

    Read books, read articles, find a mentor or advisor, study the greats, read and follow the market, consider paid subscriptions and be careful.

    For some starting level investor, the stock market can be a lot difficult to understand. Without a good knowledge, no one is capable to dive into it.

    There are two main methods of how to choose stocks while trading with success. 

    The first is called fundamental analysis and the second is technical analysis.

    The first refers to the use of a company’s financial reports and public statements. Use them to examine the health of the business. Balance sheets, income statements, yearly and quarterly earnings, and news releases are great tools for fundamental analysis. You can find almost all the reports online. The good news is that you may find the tutorials on how to read them. They are not so simple, to be fair.

    The second, technical analysis, suggests that fluctuations in stock prices come following a certain pattern. You have to learn to identify them and profit. Technical analysis is not as broadly taken or followed as fundamental analysis. Usually, traders use a mixture of the two techniques to pick stocks.

    Trading with success means to choose a healthy company

    Choosing a company with healthy fundamentals and then from time to time trading on a technical indicator is a safer strategy than relying only on technical indicators.

    Before you decide to buy or sell any stock, you should completely research the company, its leadership, and its competition. Various sites offer excellent compilations of news stories, financial statements, and stock price charts. Stock sites also show professional analysts’ ratings of a given stock, with indicate whether that analyst advises a trader to buy, hold or sell a stock.

    Before you begin buying and selling stocks, you have to decide which online trading service you want to use. ou have to choose your brokerage partner carefully because he or she has an influence on your trading and, moreover, on your bottom line.

    The best advice I got as an online trader is to choose my brokerage partner with open eyes.

    What you have to do:

    Practice with an online stock simulator: This will allow you to exercise your skills with zero risks. Some of you will start with advice from tutorials and forums. Still, keep in mind that simulators don’t display real emotions while trading. Hence, it is best to use them to examine your theory about your trading systems. Many advanced traders use the simulator to test some new system before they execute the trade.

    online simulator

    But you would like something more realistic. So, trade penny stocks. You can find companies that provide inexpensive stocks to trade. This is an excellent chance to exercise leveraging the market and doesn’t have a lot of risks. Well, you can trade penny stocks outside the main stock exchanges. It is usual. 

    Penny stocks are regularly traded on the over-the-counter-bulletin-board (OTCBB) or through daily publications called pink sheets.

    Trading With Success - a guide for beginners 4

    Educate yourself about financial performance indicators: It is not a good idea to simply hop in the market and start trading. You must have some knowledge and practice. If you do such a thing, despite the advice, you will lose money, get depressed and leave.

    And you didn’t even give yourself a chance to win.

    So, read the news reports and financial websites, you can find plenty all over the internet. Watch podcasts or investment courses. Learn from more qualified investors. Books will give you a wealth of data and they are cheap compared to the costs of seminars and tutorials on DVDs which you can buy on the web.

    The Barriers to Learning About Stocks

    When you step into the world of investments, you may think it is full off many puzzles.

    The truth is, while there is a lot of literature out there, like books, websites, reviews, etc, investing still looks like a tricky business. You may think it is packed with hazards and risks of any types. It is not simple to earn a regularly good return at a reasonable level of risk without something going wrong at various times.

    This raises a basic question — what and how much can you really learn about the stock market?

    At any point in time, there are some people who claim that the markets will go up and others who claim that it will drop, while others rather like to say it will move sideways.

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    And you can use the same source of information to draft similar contradictory conclusions.

    What does this mean? This means that you have to be very careful about “knowledge” of any kind about the stock market, or other investment markets.

    I have no doubt that it is hard to learn anything reliable and consistent about the daily (or short-term) ups and downs of the markets. You can really consciously learn about something that is stable enough, like a foreign language, the principles of mathematics or economics. This can be used only to a limited range for the stock market.

    Stocks theoretical are not much different than they were decades or centuries ago.

    There are trusty structured principles of asset allocation and arbitrage, short selling, and many other basics, intermediate and advanced concepts and methods.

    The problem is that there is a terrible amount that is not stable. Especially, the identical starting position for investments can, at different points in time, lead to completely different factors and results. With each situation, different characteristics dominate, and what worked or failed before, may do the opposite in some other time.

    Trading with success means: experience is crucial, and skill and plain luck too.

    Learning the “theory” is necessary as a starting point, but from there you need to develop a feel for real situations and learn to recognize the model of activity and behavior, as well as how they interface with one another.

    But in the investment scene, experience and expertise like this are not always reliable.

    That explains why even the best pros fail from time to time. You can find examples of failure among people who are really well-educated and informed, but they were simply in the wrong market at the wrong time.

    Knowledge is absolute, but the experience is relative to other people and to a particular situation. We can not know where our knowledge begins and ends or what we do not know, which is more important.

    The economy has always been characterized by unresolved issues and opposing views.

    For example, neo-classicists are keen on markets and leaving them free.

    Keynesians, as direct contrast, like to get involved in markets.

    There is no clear right and wrong on this field. There is no approach to economic and financial issues that works perfectly at all times. That’s why economists are always manipulating trying to get things right, and often making it wrong. This means you can surely learn about the controversy, but not the one right way, which just does not exist.

    The other thing, you can be sure that something that is truly illogical can be excluded. Yes, people take stupid risks sometimes. But illogical is something else.

    For instance, if someone asks for a low-risk investment, they will not deliberately agree to a high-risk one. That is illogical for them and it won’t happen. In the same sense, people make mistakes, but they don’t on purpose do things that cannot realistically pay off and that is blasted from the beginning.

    There are a lot of things that are never a good idea. Investment portfolios should always be well-diversified, rebalanced, not unreasonably costly and so on. There are many pros and cons that can save you from disaster.

    You must know your personal limitations

    Trading With Success - a guide for beginners 6

    And you have to count on people who are unethical and dishonest. The problem is that new technology and ideas invariably lead to new rackets, scams, and miss-tradings. You have to know the limitations of theoretical knowledge in investing.

    We can figure out what to keep away and what should work. But there is nothing and no one out there who can tell us what will work for sure.

    How To Remove The Barriers

    First of all, never base your judgments on passions, rumors or hurry to the next hot spot.

    You will lose all your money in the end. Some investors despite their miss-judging, continue with the same activities and have the same bad results. You have to remove the barriers to success. It is crucial to change behavior and enable you to become successful. You must try for permanently removing new barriers as they appear.

    What kind of barriers to success you may have?

    Emotions

    The fear and greed! Many investors experienced the absence of the rationally think during investing. This ends in bad investment choices and usually with wasting of money.

    For instance, it is in your best interest to sell high and buy low. However, some investors avoid to sell winners and don’t like to buy out-of-favor stocks. Hence, they hold the winning investments too long. When they drop, they continue to hold. Because the have some cloudy hope they will return to their former highs. They even lie, claiming that they would sell if the price turns to the level at which they got it.

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    Then there are the traders who hold the losing investments for too long. They have some crazy hope that if they wait until their shares recover, they can sell to at least break even. It is usual that such traders gain loses. Why? Because their money is stacked in a losing investment. The investment like that is unable to give a return. This decreases account balances and increases stress degree. Most traders agree that holding investments too long is the mistake that was most damaging their success.

    Less knowledge

    You may think if you just buy and sell the top stock, you will always earn money. That’s wrong! Totally mistake! Sometimes, traders don’t have enough knowledge about how markets work. For them, it is still unknown what drives stock prices to make successful investing. Further, many investors usually overrate their experience. As a result, they take on additional risks. People are frequently attracted to magnificent performance, even when they are not skilled enough to handle them. Many traders follow the hottest sector without enough understanding of the risks involved.

    For instance, traders understand they should not overload their portfolios with too much capital in one investment, but they continue with the same attitude. It isn’t rare that people purchase too much stock in the company where they are working. The reason is the company’s retirement funds. The possible consequence is a portfolio without proper diversification.

    Some other investors avoid bonds because don’t understand how they work. Do you understand that bonds provide you a favored position if a company declare bankruptcy? Yes, I know that some of you will answer yes but do you really understand that and where that benefit comes from?

    Do you understand that when interest rates increase, bond prices go down? Do you know how a central bank sets interest rates and the yield curve? Only a few investors have enough knowledge to make wise decisions. Remember this

    Investors without knowledge

    To add more pain in their lives, most investors do not know when to sell a stock that has substantially valued. They continue to hold the stock instead of selling part of them. That way, they could take some of the profit and make capital convenient and available for other investments. They don’t realize that as the price of the stock goes up their portfolio becomes even more unbalanced.

    The market has the ability to balance portfolios for investors, sometimes to their astonishment. Many investors are confused by the idea that rebalancing entails selling some of the investments that have performed best and buying more quality stocks that have lagged.

    Losing the Bigger Picture

    Despite the fact that many investors like to say they invest with a long-term perspective, they continue to make decisions based on short-term movements and ideas. Most investors believe that setting long-term goals for such things as buying a home or providing for retirement are important. But still, they fail to establish viable financial plans to do so.

    Without these plans, their decisions are decaying. Basing decisions on unpredictable market fluctuations can be very dangerous because there is a good chance that these investors will make the wrong decision. That can obstruct their ability to achieve their long-term goals. When the investors realize that the market has risen, they pour cash into stocks and mutual funds, trying to grab part of the profit the professionals have realized. When the market declines, some investors panic and sell close the bottom. And very often, this pattern continues, causing such investors to lose much of their capital.

    Trading With Success - a guide for beginners 8

    How to remove barriers

    No matter what your barriers are, it is important to put together a plan to remove them. Here are some steps you can take to eliminate these barriers to your investing success. Experts advise doing this.

    * Learn to monitor your performance:

    Measuring your performance forms a history of what worked and what did not. This can help you to recognize problems that you copy over and over again. You should, at least, record the general market trend, the sector trend, the reason for executing the trade, the exit target, and the trailing stop. 

    It is a MUST for any buy and sell. This document is very useful to evaluate your investing actions. Later, you will use it to identify what barriers block your success.

    * After you have measured your actions

    You can identify what you have to change: Inspect your past tradings and find patterns that show to barriers to success. Maybe you impulsively buy the next stock without thinking? Does your explanation prove to be wrong most of the time? The key is to identify the investing behavior that inhibits your performance.

    * Stay focused on what you need to change.

    Like any effort to change behavior, you must remain focused on the actions you take to reinforce the investing behavior you wish to have. If you think you are not focused on how to change your behavior, then take a break from your investing until you recover your focus

    * Determine how you will understand your losses.

    Keep in your mind that losses are part of investing. Learning how to handle them is one of the most important pieces of successful investing behavior. You have to define what your loss looks like through your stop loss and reasons for the trade. You must accept the loss as part of the trading. Accepting a loss is a trading skill that is a crucial behavior. If you accept a losing trade as a natural process in your trading strategy, you will eliminate the emotion that comes from a loss. This will provide you the next opportunity but without fear.

    * Become an expert at one investing strategy:

    There are many ways to evaluate the market and select stocks which offer good investment opportunities. Don’t try to understand every perspective on a stock. It is best to get to know one reliable investing strategy. In that way, you will gain confidence in your investing access. This knowledge will form a valid base for your investing. And when you become an expert you can expand your knowledge base by adding a new approach.

    * Think in probabilities:

    The market is in permanent movement. It forces the investor to continually evaluate the risk-reward ratio of each opportunity. You can’t change the market, that’s why you need to figure out where and what is the highest possibility that will move the market, key sectors and the stocks you are watching. Evaluating what is most likely to happen, in the sense of expectations, could help you to make a valid investing estimation.

    * Learn how to be objective:

    Many traders like to think that the market will give what they believe it should perform, rather than what it really makes. If you place limits on the market you will see very soon and painful, that you are wrong. The market performs what the market performs. You will use it the best if you have an objective view and attitude. 

    If you are objective, then you will not feel urged to act promptly. You will not feel anxious about making an investment decision.  You will do it based on facts, not on your emotions. And the most important, you will not force your ideas on the market. You have to understand what the market wants to tell you. Your purpose is to listen and act according to that. The market itself is the best advisor. Just learn how to listen. Put aside all the rumors, try to be focused on market performances without biases. And you will see. 

    Do not expect this to happen overnight. Removing the barriers is a long-term process. But if you have a clearly defined plan, you will be able to eliminate the barriers that keep you from your success.

    How to research and choose stock?

    Investors have a name for all types of research, one of them is fundamental analysis.

    Fundamental analysis

    Involves looking at numbers and other measures in a company’s financials as well as assessing the less tangible aspects of a business. This approach can help you decide whether a stock deserves a spot in your portfolio. Pick a company you’re interested in. Read current and past annual reports and letters to shareholders. Gather the numbers and financial ratios and put them all into context by comparing the company’s performance history to the industry and its peers. Then work through the list of qualitative questions.

    Trading With Success - a guide for beginners 9

    So, what you have to do after fundamental analysis, step by step:

    Perform a technical analysis

    Technical analysis is a way to understand market psychology or what are investors feelings about a company, which are manifested in the stock prices. Technical analysts are mostly short-term holders. Their objective is to find the proper timing of their buys and sells. 

    The point here is to identify a pattern of how some strategy or stocks were performed.

    If you can identify a pattern, you might be able to predict when stock prices will fall and drop. This can inform you about when to buy or sell certain stocks.

    The technical analysis makes use of moving averages to track security prices. Moving average is a measure of the average price of the security over a certain period. This assists traders to quickly recognize trends.

    Identify patterns:

    Patterns include known price boundaries in the market price of a stock. The high boundary is known as the “resistance.” The low boundary is called “support.”

    Trading With Success - a guide for beginners 10

    Recognizing these levels provide a trader to know when to buy (at resistance) and when to sell (at support). And there are some specific patterns are also noticeable in stock charts. The most usual is “head and shoulders.” This is a peak price then drop, followed by a taller peak then drop, and finally followed by a peak similar in height to the first. This pattern signals that an upward price trend will end. There are also inverse head and shoulders patterns, that marks the end to a downward price trend.

    Register the difference between a trader and an investor:

    An investor search for a company with a competitive advantage in the marketplace that will provide sales and earnings growth over a long period. A trader wants to find companies with a price trend easy to identify and that can be utilized in the short-term. Traders use technical analysis to recognize price trends. Investors use fundamental analysis because they are focused on long term investment.

    Learn about different orders traders make:

    Orders are what traders use to describe the trades that they want their brokers to make for them. There are a lot of different types of orders.

    The simplest type of order is a market order, which buys or sells a set number of shares of a security at the prevalent market price. 

    For example, the shares of some company are priced at $20 as ask price and $22 as the bid price. Of course, 100 shares are accessible at the ask. And let’s say, you want to buy 400 shares and you place a market order to buy them. The first 100 you will buy at $22. The rest, you will buy at $24 or higher if this stock is rarely traded and you just showed the interest and the price is growing thanks to you. The price of this kind of security is managed by the market and occasionally this will lead you to more cost.

    That’s why is important to use the limit order. 

    A limit order buys or sells security when its price reaches a decision point.

    For instance, placing a buy limit order on security will order the broker to only purchase the security if the price fell to a some defined level. This allows a trader to specify the maximum amount willing to pay, a limit order guarantees the price the trader will pay or be paid, but not that the trade will happen. 

    For example, you want to buy some stock and it has a limit of $20. You can buy that stock at a price of $20 or below. If you want to sell shares of stock with a $20 limit, you will not sell it until the price is $20 or bigger. 

    Stop order tell the broker to buy or sell a security if the price rises above or falls below a certain point. But, the price that the stop order will be filled at is not guaranteed because it is the current market price.

    Trading With Success - a guide for beginners 11

     

    Also, there is a combination of stop and limit orders called a stop-limit order.

    When the price of the security passes a certain level, this order specifies that the order becomes a limit order rather than a market order as it does in a regular stop order.

    Understand short selling: Short selling is when you sell shares of a security that you don’t hold or you borrowed. Short selling shows the hope that the market price of the stock or some other security will drop, and you will be able to buy cheaper than you sold in the short sale. Yes, you can use a short-selling to make a profit, but remember, it is very risky. You will need more experience and knowledge about the market before you start to practice this.

    Let’s see how short selling works in real trade.

    You believe that some stock will drop in the near future. And you ask your broker to find 100 shares of that stock for you to borrow for a short sale. Let’s say the current price is $30 per share. Your broker found the shares for you to borrow and you sell them for $3,000 in total. After a few weeks, your expectations are confirmed and the price of that stock drops so can trade them for, let’s say at $25. What you have to do is to buy back the same shares at the current price. This is so-called covering the short position. You will spend $2,500 in total to buy the shares back and return them to the owner.

    And the calculation is:

    – you sold borrowed shares for $3,000

    – later you bought them for $2,500 and give them back to the owner

    – your profit is $500.

    ($30×100) – ($25×100) = $500

    How to pick a broker

    Trading With Success - a guide for beginners 12

    Choosing an online broker seems like a simple process. But in reality, it can be a nightmare because finding the right broker is not easy. Not at all!!!

    On the very beginning, you want to be sure that the broker has the right credentials, understands the market, has similar wealth-building beliefs as you do. Trust me. You can also find our list of highly respected brokerages on our wall of fame.

    The main point in choosing a broker 

    a) make sure a broker offers the services and features you most need,

    b) don’t pay extra for services and features you don’t need or want.

    The best way is to make a list of tools you want from your broker. There are some tips and tricks you have to take attention:

    Minimum Trades – Check if there is a requirement about minimum trades that you will have to do or maybe the penalty for not complying with the condition. You can easily find brokers who have no minimum requirement or require only a small amount. 

    Costs – Examine the commissions and other fees that brokerage charges.  Brokers typically have a broad variety of fees for cost per trade. That’s the holy grail of the online brokerage universe.

    Customer service – Read customer reviews online or on forums, please. Make sure that the broker offers such support and it is available during more than just “regular business hours”. You have to know if it is available in various forms: email support and live chat can be more available contact methods than the direct phone, for example.

    Investment options – Some ‘’full service’’ brokers may not give products of all asset management. A good broker is one that offers you the ability to invest in a broad number of assets: stocks, bonds, mutual funds, ETFs, real estate.

    You will want a broker who can afford you all of the possibilities if you want to develop your investment potential.

    Investment Advice – There can be some problems if you are not a do-it-yourself type. Some brokers will offer poor investment advice, but others will give you a full investment service. It can be for a small fee, but some will charge a higher fee. You have to decide what suits you best.

    Asset Allocation Guidance – Especially for new investors Asset allocation is one of the more difficult investment parts. Even to decide about initial asset allocation is a tricky part, and it can become more complicated when you maintain it in the future

    And periodic rebalancing – It is not the simplest of tasks if it must be done manually. But you have to do that from time to time. Here is, for that purpose a robo advisor. A robo advisor will manage your asset allocation and automatic rebalancing. If you want to stay a bit more uninvolved investor, robo advisors can be the best for you. You have to find out if the broker offers this service and if there is an additional charge.

    Types of Retirement Accounts – It’s best to confirm this at the very beginning that the broker offers multiple types of retirement accounts to invest in. And even if you want only a regular investment account right now, you may decide to open a custodial account for one of your children in the future. If you have confirmation that options exist before you first sign-on, you can be relaxed. I know that most investors like to have all of their various accounts with a single broker, particularly if they are happy with the service. You have to find out if the broker offers this service and if there is an additional charge.

    The most important question is about what type of trader you want to be.

    Are you an active trader or buy-and-hold investor? Whatever you are, it will affect your choice of broker. If you are a buy-and-hold investor and invest in index funds, making a few trades per year, fund selection may be more important to you than low transaction fees.

    You have to determine if you’re an investor which means long term investing, or an active trader, short term trading.

    If you are still learning how to trade stocks online, you shouldn’t rush into choosing a broker.

    Everyone eventually develops their own trading style.

    Online stock brokers offer a wide array of features and fees. Choosing a broker with a good reputation is worth. Someone with the features you really need and a reasonable fee structure.

    Don’t let yourself be attracted by a platform with the bells and whistles. Especially when you are in the beginning.

    How to Start Trading

    Investing in the stock market is simple if you know how to begin.

    Don’t begin to invest or trade on your own. You will need advising by some expert. It is always best to access a financial advisor who will tell you how you to invest or trade based on your financial condition and risk tolerance.

    Talk to other investors. Read books, journals, and newspapers for recommendations. You can ask your advisor for advice but don’t listen to everything he suggests. Ask a second opinion because some brokers might have conflicting interests. In the beginning, it is best to go for well-known names and big companies that have a good professional status. Never start trading without previous knowledge, because you may find yourself off track.

    Let’s make clear the basic because you’ve decided to join the crazy world of trading stocks and shares.

    You have to know that shareholders usually have a right to vote at company conferences. But, if you possess just one of the three billion Facebook shares don’t expect Mark Zuckerberg to listen to your opinion!

    Another thing you need to know is that a company’s shares are indivisible. You cannot buy fewer than one. Shares were pieces of paper that shareholders kept in a safe but since the ‘90s, this all changed to virtual shares.

    Before you start trading stocks, you have to buy them!

    You can buy your stocks in many ways. 

    Some companies will allow you to buy their shares directly. If there is no such possibility or you have some difficulties to choose which company to invest in, you should ask your bank. It will be much easier if your bank offers a trading service connected to your accounts.

    If your bank doesn’t offer a trading service, you can buy shares through a brokerage company.

    Brokers buy and sell securities in exchange for a commission. You can set up a simple brokerage account online or hire a so-called ‘full-service broker’ who will trade stocks on your behalf. They can be a consultant or advisor for you. This will cost a little more but it is worth because you know nothing about shares or stocks or trading or investing.

    So, you want to start investing in stocks or CFDs, but you must always remember three things:

    1. Don’t invest the money you can’t afford yourself to lose. There is always a risk to lose all the money you have invested.
    2. Follow your head, not your heart. Your heart will always draw you towards some stocks. Your head will tell you: Stop and think. Only invest in companies that seem able to grow their profits, despite your emotions.
    3. Never invest your savings in just one company. ‘Never put all your eggs in one basket,’ as the saying goes. Place your investments across many different companies.

    If you follow the suggestions above, you will be able to reduce the risk Your first trade should be made with 1, 10, or 20 shares. That’s quite enough to enter the game.

    To repeat one of my suggestions: start practicing with a demo account. Almost every single broker will allow you that opportunity. Yes, there are some that don’t have free demo account but you should find the one that has.

    It’s too easy to lose money on a stock market.  

    Yes, the account is virtual and the money is virtual, but the stock prices are almost real. You can virtually “purchase” them, start your trade and test how they will perform. Try to find the right time to sell them.

    Before you start placing your real money, you will learn the tricks of the trade with virtual money.

    Take it slow.

    Fast money and easy earnings are mostly what young people want to succeed in the business world. They are attracted by exchanges, money is invested in shares.

    However, there are many curves, curvatures, spirals and twists that, and if you don’t know how to avoid them, your trip to the stock market can be very short-lived.

    What are the golden rules for investing in the stock market, which should be known primarily to beginners in this business, but also to more experienced stock traders?

    Let’s see them.

    * Create portfolio 

    You can do this in a simple way. There are many free portfolio managers on the Internet, so use some of them to make a free account. Create a fictitious portfolio in which you would potentially invest and monitor the situation for a while, a minimum of one month. This will give you the best insight into market volatility. Before you take the first step, the goal is to create a profitable fictitious portfolio as an investor on the stock market.

    * Read business magazines 

    In order to successfully start investing in the stock market, you need to be aware of the world’s stock market and what are the social events that affect the rise or fall the price of shares. There are many respectable business magazines dealing with this topic (Forbes, The Economist, Kiplinger’s are some of the most famous ones). Follow the events in the global economy and finance and you will be able to swim more easily in the very turbulent waters of the stock market.

    * Buy stock from a field you know well

    Before investing money into something, you should understand the business the company is dealing with. The first stock you will buy on the stock market should be from the sector you understand and it is familiar to you. For example, if you know the banking sector, try to explore the market and find a bank whose stocks are good and worth investing. Never invest in the action itself, but in the company.

    * Have realistic expectations

    There may be a problem if your financial goals are based on unrealistic presumption. Try to be realistic in your ambitions and goals – in this way, there are fewer chances to lose money or be disappointed in your stock market business.

    * Do your own research

    You will hear from people who are dealing with the stock exchange that they have bought some stocks because the same was done by their friend or family member who understands this business. Accept everything with reserve. Before buying a stock, do research. If some stocks brought in earnings in the past doesn’t necessarily mean that this trend will continue. Always believe more to yourself than other people’s estimation.

    * Stock exchange is NOT a money-making machine 

    Most of those who want to participate in the stock market, have an unrealistic desire to double or triple investment in a short time frame. If you are one of them, then that’s not a job for you. For those who want to invest, 10 to 12% of the earnings for a long period is quite a good investment. You need to realize that you are just a small fish in a big lake and that your success depends on many factors. Follow the clues and make conclusions.

    * 3 or 4 good stocks are enough 

    Don’t overplay, especially because you are a beginner in this business. More than 10 stocks are a good portfolio, but for investment funds. It is true that they make more profit, but if you make a smart and wise decision you will earn enough money.

    * Don’t try to predict the stock price 

    Not even the biggest billionaires and owners of the largest multinational companies in the world are doing this. No one is able to predict, at least for a longer period, several stock market cycles. Ability to guess the moment when the stock will have the highest value is still a myth. Even for those who have an insight into the business of some companies.

    Therefore, for successful business and investing in the stock market, you need to acquire certain knowledge and skills. According to the research, the risk of investing in the stock exchange is most often taken over by young people who have just finished college. But, like in every other business, the experience you get, will help you to be wiser in making decisions in the future.

    That’s how it works!

    Five Tips For Beginners In Cryptocurrencies Investment

    If you are reading our post Trading with success, I am sure you are one of those who has been tracking what’s happening on the crypto’s market, but you don’t dare to start investing.

    Therefore I want to tell you several things about trading cryptos.

    Many people believe that the cryptocurrency is the most popular investment option currently available. There are many stories about how people become millionaires.

    Bitcoin and Ethereum are definitely by far the hottest investment product currently available among cryptocurrencies. The proponents of cryptocurrencies claim that they will replace all national coins. On that way, the world currency will be created

    But slowly, we’ll soon get to that point. The first things come first.

    What should you know at the beginning, before any move?

    First of all, READ THE WHITEPAPER AND EVALUATE THE USE CASES.

    It is best to thoroughly understand their concept and try to ask as many questions as you can.

    You can join their various social media channels to interact with other people or the concerned teams and make more clear your findings.

    Educate yourself further and frame a self-made case study including all positive and negative aspects.

    SECOND, thoroughly investigate the chosen trader website to find out about the team members. You have to do so to find out whether or not the members or founders have a questionable history. Finally, after you evaluate some of them and find out about the founders or suspicious about their business or working history, you can decide not to participate.

    THIRD, keep your eyes on what is their announcement on various forums. Try to get into the feelings and attitudes of people on forums.

    You have to be very careful here because a good number of ICO teams have their own bots, but competition also does not regret money to downplay them.

    Do they give the answers? Are they interested? Are they avoid your questions? Have they banned you from asking questions?

    Well, it’s good if they banish you, then you know you’re dealing with fraudsters.

    FOURTH, you should find an expert who has some knowledge!

    You should follow such people who can enable you to have reasonable judgment. Follow expert people in the same field.

    FIFTH, you should understand the coin distribution matrix and total supply and understand the project’s token economics.

    It’s highly recommended that you should not invest until you are sure. Also, you should not invest more than what you are ready to lose. That’s the rule.

    Let’s get back to shares and stocks.

    How To Read A Stock Charts

    Traders without experience act led by their emotions and this is a misunderstanding. Misunderstanding with the market, because all is not as it looks in the market.

    But first comes first.

    When you enter the stock market, which means that you have done everything from previous chapters and you bought your first stock, you will find that you have to follow the movement on the stock market through stock charts.

    Chart-reading is the single most important investing skill you’ll ever learn.

    First of all, you have to understand that the fund managers and big investors account for 80% of all trading activity in the market. Their buying and selling will either push your stock up or down. But you are an individual investor and your primary intent is to buy stocks big investors are buying and of course, you want to stay away from stocks they’re aggressively selling. 

    That’s where charts enter. 

    Once you know what to look for, you’ll see that charts literally show you what these big investors are doing. You’ll be able to quickly realize when a stock is being ponderously bought or sold. You’ll be able to use that information to identify the best time to buy, sell or hold your stock positions.

    There are many different types of stock charts: line, bar, OHLC (open-high-low-close), candlestick, mountain, point-and-figure, and others, which are viewable in different time frames: most commonly, daily, weekly, monthly, and intraday charts.

    Trading with success- Different types of stock charts

    Trading With Success - a guide for beginners 13

    Line chart

    Line chart

    Bar charts

    Trading With Success - a guide for beginners 15

    Trading With Success - a guide for beginners 16

     

    Each style and time frame has its advantages and disadvantages, but they all provide you information that you can use to make investment decisions and trading with success.

    Also, there are many different types of stock charts that display various types of information. But all stock charts display price and volume. On each stock chart, you can find the price history. The amount of trading history each bar represents is based on the period of a chart. For instance, on a daily stock chart, each price bar represents the prices the stock traded during that day. On a weekly stock chart, each price bar represents the prices the stock traded during that week.

    The length of each vertical bar illustrates a stock’s high-low price range.

    What you can see in the part of the chart which is called the top of the bar?

    The top bar shows the highest price paid for the stock over some period. On the other side is the bottom of the bar, it shows the lowest price paid. The small horizontal slash tells the current price. Also, it provides you information about where a stock closed at the end of some period. 

    Can you see the price bar?

    It is blue if the price of the recent trade is equal to or higher than it was in the previous period. But when the price is less than it was in the previous period you will see magenta (the color similar to pink).

    Pay attention to the vertical lines at the bottom of the chart. They will show you the number of shares traded during the period of the chart.

    It can be day, week, month, year or many years.

    The length of the volume bar shows a value that matches the scale at its right. The color of a volume bar is determined by its price bar.

    Trading With Success - a guide for beginners 17

    Well, you are beginners so it is important to show you, step by step how to read charts.

    You can use different websites but I think that Google Finance has a smooth user interface.

    Now let’s take a look at a typical stock chart.

    We’ll use Dow Jones Industrial for this article Trading With Success – a guide for beginners.

    You can see, the series of letters after the name of the company is the ticker symbol. It identifies the company on the stock exchange.

    We’ll search for AAPL, which is Apple’s ticker symbol. This is what we get:

     

    Trading With Success - a guide for beginners 18
    You can expand the chart by one click on the right side.

     

    Trading With Success - a guide for beginners 19

    Now let’s jump into the different pieces and parts of the stock chart so you can begin to read like a pro.

    For Trading with success –  you have to identify the trend line.

     

    Trading With Success - a guide for beginners 20

    The blue line exists for every stock and you will see it no matter if the price is going up or down. The trend line seems understandable, but there are a few things I want to show so you can understand it in more details.

    You heard that stocks may deep fall. Yeah, but also can make huge rises. If you’ve read previous chapters you’ll know that you have to hold your emotions in control to be a successful investor.

    You should never react to big drops or large gains positively or negatively.

    You have to use this stock chart only to see what’s going on.

    The trend line should guide you to investigate further. 

    For instance, Apple was really good from 2009 to 2012. But in the next 12 months, the stock went down more than 40%!  

    This is where the trend line is very helpful. Notice, something is happening and you have to pay attention to. You have to find out what’s going on with this company. Most strong companies can recover from hits like this, but you have to be careful.

    We have to recall some history here.

    Apple felt a few important changes at that time. First, it’s CEO, Steve Jobs, resigned. Also, around 2012, Apple informed that their profit margins were significantly reduced, despite increasing smartphone market. They were trying to expand the smartphone into developing countries, but they were too expensive to enter there.

    And the stock price was falling.

    But new CEO Tim Cook made strategic moves with the company and the rest of the trend line shows that.

    The lesson here is how to use your trend line as a first peek, an indicator of something worth to look into. So, we can say the Apple had some problems, but they successfully handled them.

    The next thing you have to look at are the lines of resistance and support.

    These are the levels at which the stock stays within, over a certain period. A level of support is a price that a stock is unlikely to drop below, while a level of resistance is one that it’s unlikely to go above. It will stay the same until some major change occurs, such as a reduced profit margin.

    A stock’s price is moving within the lines of support and resistance.

    The point here is to know when to buy and when to sell.

    Take a look at Apple’s stock chart again:

    The point here is to know when to buy and when to sell.

    Take a look at Apple’s stock chart again:

    Trading With Success - a guide for beginners 21

    I want to show you how the process is important. You have to know that everyone will draw lines of resistance and support differently, depending on how long they plan to hold the stock. If you’re a short-term investor, you may draw more lines to examine trends over a shorter period. For example, you may draw for every day or week the lines of support and resistance.

    So, what we can see in this image?

    Line A represents the very first line of support shown. Based on trends earlier to this, Everyone feels comfy that the stock price won’t go below this point and probably consider buying at this price or higher.

    Line B is the first line of resistance. It is obvious that the stock has peaked at that point for now and it is expected to go higher. Maybe it’s time to consider selling at this price or slightly lower.

    Line C shows, the stock has bottomed out again, thus creating a new line of support.

    Line D shows the stock price has increased significantly and it’s comfortable to establish this as a new line of resistance.

    The trend continues with Lines E, F, G, and H, bringing new lines of support and resistance as time goes on.

    If it seems complicated, don’t worry. because it is. And a lot of this is speculations.

    Knowing the lines of resistance can help you decide when to buy or sell a stock.

    But remember, it’s subjective and it won’t give you a clear opinion about what to do. You have to use some of your analysis and evaluation.

    On the next chart, you can see if and when the company issued a dividend, as well as if there was ever a stock split:

     

    Trading With Success - a guide for beginners 22

    A dividend is when the board of directors decides to give a portion of its earnings back to its shareholders. If you own their stock, you get a small piece of the profit.

    Some companies distribute dividends, but some don’t. Just because the company doesn’t issue a dividend you should never think it’s not worth invest in. 

    Some companies are focused on growth. This means they will reinvest their earnings. That is opposed to giving it back to the shareholders. But, if you want to be a long-term investor you will have your dividends later, when the company you invested in, achieves its goals. Also, you may get more. Apple, in this case, could pay dividends quarterly without influence on growth.

    Also, you can see that there was a stock split in 2014. That is a strategic move made by the company’s board of directors to issue more shares of stock to the public.

    In this case, Apple did a seven to one stock split, noted as 7:1, which means that for every share of AAPL shareholders owned before the split, they now have seven.

    The value of the company doesn’t change, but the share price might.

    Companies will often do this to attract smaller investors when the share price decreases.

    Many times when a stock split happens, more people invest because the share price is often lower. That increases demand and the overall share price.

    On the bottom of the chart, you can see many small, vertical lines. This shows a trend of the volumes at which the stock is traded. Volumes shouldn’t be the only determining factor when buying a stock. Usually, trading volumes increase when the company is in public focus, in a positive or negative sense.

    When volumes are growing, it can also change the price of the stock instantly. Take a look.

     

    Trading With Success - a guide for beginners 23

    Line A, shows a high volume of trading activity that corresponded with a drop in the stock price. Maybe some bad news that day caused people to panic and pushed them to sell the stocks.

    Line B, you can see a small uptick in trading volume that corresponds with an upward trend in the stock price.

    You shouldn’t necessarily have to assume that there will be a connection between stock price and trading volume. But it’s good to know what the volumes have been in the past and what they are currently.

    If the volumes are high, a lot of people are trading the stock that day and it is a good idea to buy or sell it quickly.

    This is the fundamentals of how to interpret a stock chart. Once you’ve mastered most of these techniques, you should be able to analyze a stock’s historical activity with high success.

    How To Know Which Asset To Invest

    The main asset classes are:

    a) Shares/stocks also known as equities.

    b) Bonds, known as fixed-interest stocks or debt

    c) Property

    d) Commodities

    e) Cash and cash equivalents

    What are the best assets to invest in?

    (the return criteria is based off trying to generate $10,000 a year in passive income)

    1) Certificates of Deposit (CDs).

    2) Fixed Income / Bonds.

    3) Physical Real Estate.

    4) Peer-to-Peer Lending (P2P)

    5) Dividend Investing.

    6) Private Equity Investing.

    7) Creating Your Own Products.

    8) Real Estate Crowdsourcing.

    And you have to decide which asset to invest. Among those?

    Let’s say like this, investing is about laying out money today expecting to get more money back in the future. This is best done by getting productive assets. 

    What is that?

    Productive assets are investments that provide you money from some sort of activity and do it in the long run. To be clear, if you buy a piece of art, it will never bee a productive asset. After 200 years you’ll still own piece of art. It can be worth more or less money. But, if you buy an extra house you’ll not only have the house. You will have all of the money it delivered from rent for over 200 years.

    So, how to pick the asset suitable for you?

    First of all, never invest all your money into one asset. You should mix them. The right asset mix should help balance risk with your expected rate of return on your investments, fit your tolerance for risk, let you get your money when you need it, help provide the growth you need to reach your goals, and change as your needs and goals change over time.

    But first it is smart to know each of the assets classes individually and below you will find the answers.

    Shares (also known as equities)

    You can buy shares through a stockbroker.

    If you want the cheapest and fastest way to buy and sell shares you should do it online and choose ‘execution-only’ broker.

    This means your broker will take your order and execute it without giving you some advice. The broker will provide you everything about the stocks, for example, information, researches but this service doesn’t include advice.

    But, if you need advice you will need a stockbroker that offers an advisory or discretionary service. Discretionary service means that you allow the broker to buy and sell shares on your behalf. All you have to do is to set limits. Of course, the broker will ask you for permission before executing the trade.

    Bonds (also known as fixed-interest stocks).

    These represent a form of IOU issued by governments and companies when they want to borrow money from investors. They will pay a fixed level of interest for that. The higher-risk borrowers are paying more interest than lower-risk borrowers.

    Property

    The property has a good history in providing a financial return that beats inflation. Property can be residential or commercial, it doesn’t matter. It will provide you a nice return. You can buy ‘bricks and mortar’ or you can buy shares in property or real estate investment companies. If you choose to invest in some real estate fund, you should know that funds are generally focused on commercial property, but some invest in the residential property also.

    Commodities

    You can find a huge assortment of commodities traded on global markets: oil and gas; gold and silver;  copper and iron. Also, you can trade ‘soft’ agricultural commodities, for example, wheat, rice, corn or soya. It is exactly like shares or bonds. The prices of those commodities will 

    Just like shares and bonds, commodity prices increase and decrease as an answer to supply and demand.

    Cash

    It may be a bit strange that cash is considered to be an asset class. Isn’t the whole reason for investing in the first place is to grow your money faster than if it was left in the bank? Yes. But you must have in your mind that cash provides a useful reference for all investments. Finally, investments that don’t beat cash have failed. Cash also provides a safe shelter for funds when markets are bumpy or overvalued. Do you know that funds also trade in currencies to increase their returns from cash when interest rates are low?

    Being an expert asset picker isn’t actually necessary to grow your wealth.

    The majority get in trouble, especially when they think of investing as a way to get rich quickly.

    “People will overpay for the prayer and dream of getting richer. So if you stay away from glamour stocks, you’re going to avoid being the wrong side of those transactions,” said Bruce Greenwald, a professor of finance and asset management at the Columbia Business School.

    Your path to success as an investor or trader shouldn’t hinge on whatever hot stock your friend thinks you should buy ASAP.  Your path depends more on how smart a portfolio you put together, as well as how you progressively modify or rebalance it over time.

    Well, how to invest intelligently, if slowly? You have to respect some basic principles

    First of all, why do you want to start investing?

    The main argument for putting your money in anything is to avoid losing your wealth during inflation. In your checking account, cash will still be there in 40 years, if you don’t touch any of it. But you won’t be able to buy anything.

    Other crucial reasons might include growing a substantial enough saving for retirement and earn enough cash for buying a home. For those kinds of goals, you might want assets with higher returns and therefore you’ll have to take on higher risk.

    The riskier assets might include stocks and bonds as well as mutual funds, or balanced funds that mix equities and fixed income.

    Also, a very important question is when should you begin investing?

    You might already know, but you need to be investing for old age. If you start investing in your early ages you will have many advantages as an investor. Just to name two: you have more time for your money to grow and more time for market downturns to correct themselves.

    And how to choose the right asset?

    Each type of asset has its own features and pros and cons. Here is a quick summary of some of the potential investments you might make as you start your journey:

    Business Equity

    If you own investment in a company, you will share the profit or losses caused by the company’s activity.  It doesn’t matter whether you are investing in a small company fully or buying shares through the buying of stock on the market. Business investment has historically been the most pleasant asset class for investors.  It is wise to note that a good business is a best-spent money, without dilemma.

    That provides you a super-nice income for a long time.

    Fixed Income Securities

    When you buy fixed-income securities, you are really lending money to the bond issuer in exchange for interest income. There are billions of ways you can do it, from buying certificates of deposit and money markets to corporate bonds, tax-free municipal bonds, etc.

    Real Estate – This is maybe the oldest and most easily understood asset class which you as investors may think about. There are several ways to make money investing in real estate but it typically comes with developing the property and selling it for a profit or owning something and letting others use it in exchange for rent.

    Intangible Property and Rights

    When it is done properly you can create things out of the air that will print money for you. Adorable! Intangible property includes everything from trademarks and patents to music royalties and copyrights.

    Farmland

    It often involves real estate. Investments in farming projects are basically different in that you are either producing or obtaining something from the soil or from nature. Anyway, you hope to make a profit. For instance, if the oil is found on your property. So, you can exploit it and earn money when sell.  If you grow wheat, you can sell it and earn money. But the risks are remarkable: hail, flood, drought can and have caused fails.

    Many people went bankrupt by buying this asset class. But also it can make big rewards. Do you remember? High risk may provide a high return.

    How to create your first trading strategy

    Okay, I understand your dilemma. You would like to be successful and you want to know, what strategy should you choose to score it.

    Listen there!

    First, let’s make clear what the Trading Strategy is.

    A trading strategy is a set of trading settings that serve the currency trader or stock to determine whether to buy or sell currency or stock, where to enter and exit the position, and how much capital they invest in trade, and in doing so, earn a difference in price. The trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets.

    A broker can offer you the opportunity to enter into trades that are multiple times of the value of the margin that you place. The market is fluid and you can open trade or exit from one very quickly, so there is potential to make considerable returns.

    And what the Investing Strategy is?

    The investment strategy is a set of rules, behaviors or procedures, designed to guide an investor’s selection of an investment portfolio. People have different profit objectives, and their skills make different tactics and strategies appropriate.

    To complicated? Wait!!! There are more!

    Trading strategies can be – automated (various robots for trading, etc.) – manual (the vast majority of traders use their trading system.)

    I would like to show you some of them which are successful. I will give you a brief description of 5 simple strategies that can help you maximize your profits:

    Swing trading

    Trading With Success - a guide for beginners 25

     

    Swing trading is a method that you will run in the short-term. You can trade stocks, currencies or options. Swing trading position ends after two to six days. But sometimes you can hold this position a bit longer, even two weeks.

    The purpose of swing trading is to recognize the general trend and then catch gains within that trend.

    If you choose to be a swing trader, you have to pay attention to the main trend in the chart. If the security is in an uptrend, you will “go long” by buying shares. But, if the trend is declining, you will short shares.

     

    Trading With Success - a guide for beginners 26

     

    There are various strategies you can apply to swing trade stocks. 

    But always you must have three key points: entry point, exit level, and stop loss.

    Swing trading tries to recognize “swings” inside a medium-term trend. The point is to enter only when there is a great chance to win.

    For example, in an uptrend, your point is to buy which means to go long at “swing lows.” And vice versa, you have to sell, meaning to go short at “swing highs”. That will provide you to profit.

    Rangebound trading

     

    Trading With Success - a guide for beginners 27

    In range-bound trading, you will use a completely technical method of predicting short-term highs and lows of some stock. This type of trades is more powerful in range-bound markets because you have to trade stocks inside a defined channel.

    If you choose this type you have to look for stocks with precise support and resistance level.

    Then buy at the support and sell at the resistance. 

    To create a channel you have to connect high chart points and low chart points. The range inside is the area (channel) where you will perform your trade. 

    In Forex,  you will need to identify a currency pair that trades within a certain range. Then, you have to identify the support and resistance levels and then time your trade by taking these movements into account.

    Likely, there will not be a big difference between the upper and lower prices of the range. Because of this reason, you could trade in one of two ways.

    The first option is to trade within the range which will limit your profits as the price difference is bound to be minimal.

    The second way is to look for a breakout from the range. If this happens, you will have to react quickly. You can make a quick profit, but you can lose out. A “false breakout” may result in the market moving in the opposite direction and lead to losses.

    Position trading

    Trading With Success - a guide for beginners 28

     

    A position trade is not a short-term trade. 

    This trading style means holding positions in stocks for a long time, even years.

    For example, you want to profit off of stocks earning large gains, sometimes more than100%. To achieve this, you have to look for long runs. That’s why you have to look at longer-term charts like monthly or weekly.

    It is the truth that position trading seems very alike investing. Yes on the first sight, but there are a few important differences.

    The investor usually is buying an asset to hold it for a long time. So, the investor has to find a trustworthy company with good future potential. So, the investor will hold that stock for years and collect the dividend yield.

    On the other side, if you want to be a position trader, you will be more focused on the overall price move. Because you have to catch the major trend of the stock but to get out when the trend turns. 

    Also, you have to use stop-loss similar to swing traders. 

    In Forex, it is based on macroeconomic trends. You must understand how inflation or the rate at which an economy is growing, will affect the price of a currency. If you want to adopt this strategy, you have to stay stick to two rules. 

    First, do not use much leverage. A maximum of 10:1 is recommended. Second, the size should be small. This is because you expect that there will be a reasonably large movement in the price of the currency pair.

    Carry trade

    Trading With Success - a guide for beginners 29

    This is a trade where you borrow bonds because you want to buy something else with higher interest. For example, when short rates are lower than long rates, you can borrow at low rates and buy long-term bonds. The carry income is the coupon on the bonds lessen for the interest costs of borrowing. Of course, if long-term interest rates suddenly grow, the carry trade will be profitless. Why? Because a lot of investors would like to sell long-term bonds. That could cause the rates to go higher. 

    In Forex, a carry trade involves entering into a trade in a currency pair that will take advantage of the interest rate differential of the two currencies. That means you will be selling a currency with a low-interest rate and buying one that provides a greater rate of interest.

    Normally, you would choose a currency pair where the higher interest rate currency will appreciate to the lower interest rate currency.

    Carry trades can be high-risk. They are based on a combination of technical and fundamental analysis.

    Momentum trading

    Trading With Success - a guide for beginners 30

    Momentum trading is a method when you buy and sell according to the strength of current price trends.

    So, the momentum is defined by trading volume and the rate of price changes. To explain this. In momentum trading, you have to guess that the price will continue to move in some direction until the trend loses strength.

    It is like momentum in physics: mass multiplied by speed grows the probability that some object will stay on its route.

    Fact: “Price frequently lies, but momentum generally speaks the truth.”

    In Forex, you can use momentum trading when rates are growing and buy. When the rates are falling, you should sell and take your profits. If you want to implement this strategy, you have to identify the currency pairs that have the biggest momentum and have moved most strongly. So, you have to track price changes over several weeks or so. Then trade those pairs with the greatest momentum.

    Factors for trading with success

    Let’s go back to the beginning and say a few words about how for every trader is important to use a reliable and robust trading platform. You will need ‘Expert Advisor’ (EA). It allows you to conduct backtesting of your trading strategy before you commit your funds. You will need one that functions effectively on your smartphone and your tablet as well, a versatile platform that works well under Windows, MacOS, and Linux.

    A system with 100% success does not exist so that you must not expect any of these systems to get your earnings each and every time. But, while following all the rules you can only end up in the plus!

    How to create your own strategy and trading with success

    As a new trader, you can begin by learning the trading strategies of other traders. But, how and when can you start with your trading strategy?

    Fun fact 1: Create your first trading strategy. It is easy.

    Fun fact 2: Create a profitable trading strategy. It is hard.

    You have to follow some basic steps while creating your first trading strategy. Building your own can be fun, easy and surprisingly quick.

    But, don’t expect your first trading strategy will make you rich.

    So, what you have to do?

    Recognize the real reason why you want to enter the market and have principles. Before you start creating your own trading strategy, you must have an idea of how the market works. Most importantly, you need to answer this question.

    Do you think you can make money from it?

    To answer this question you have to read about both technical and fundamental analysis. Avoid get-rich-quick offers. Take care of demand and supply. Never have trust in theories that claim that people are perfectly rational.

    Your principles will define your every step in the market, so it is very important to stick with it. It will need your full attention.

    It is an urge to follow one principle in your first trading strategy.

    Never choose complicated solutions. The simpler, the better. Trade by the KISS rule (Keep It Simple Stupid).

    In the beginning, you don’t want to be astounded by a complex strategy. Besides, a trading strategy with more moving parts is harder to manage and improve.

    You have to choose a market for your strategy.

    What do you want to trade: forex, options, futures, equities? If you want to trade forex, you have to understand what you are buying and selling with a currency quote. You have to learn about the different models of forex brokers. You have to know how the margin is calculated. If you want to trade equities, you must know what a share means or the difference between a blue-chip and penny stock. There’s a lot to learn about each market but you can not start to learn until you choose your trading market.

    The rule of thumb is that you must understand the market you choose to trade in.

    What is your trading frame? Yeah, I know. It isn’t easy to decide on a trading time frame. At first, you will not know if you like more scalping or swing trading. Maybe the idea to try intraday trading isn’t bad. There you can observe the market for long-term periods. But you have to know, when you trade fast time frames, you will have fast feedback. That shortens your education time. If you don’t have time to watch the market for the long-term duration, begin with end-of-day charts, they are updated at the end of the day. Therefore it is not an active chart. 

    You will be able to change security and exchanges. You can add indicators to the charts and examine the main trend of security or draw trend lines, display other trader’s emotions, choose from candlestick charts or bar charts. This charts will provide you a lot of possibilities to learn.

     

    Trading With Success - a guide for beginners 31

     

    You have to define your entry trigger. – It will support you to enter the market out of hesitation or delay. The patterns are helpful triggers. 

    You have to plan your exit trigger. – The market can go against you, causing you limitless losses. Having a stop-loss option is crucial. You need to plan when to exit if things go wrong and also you need to plan when to exit if things do go your way. The market will not go in your favor always. That’s why you have to know when is the moment to take profits.

    Set your risk limit. – Once you have your entry and exit rules sorted out, you can work on limiting risk. The basic way to do so is by position sizing. Which means that for a certain trading setup, your position size determines how much money you are putting on the line. If you double your position size, and you will double your risk.

    You should be very careful about your position size.

    And it’s time to choose a tool to determine the trend. – You don’t trade when you see a Pin Bar (shortener for ‘Pinocchio Bar,’ a single candlestick set up that marks price action traders into potential reversals in the market).

     

    Trading With Success - a guide for beginners 32

    You trade when the market is growing,  not when you see a Pin Bar. Don’t trade when you see a Gimmee Bar (price action reversal candle formation). It is proper to trade when you conclude that the market is going sideways. Then you can use a Gimmee Bar to enter the market.

     

    Trading With Success - a guide for beginners 33

    You have to decide on a tool to help you judge the market context, trending or not, up or down. Hence, you can choose price action tools like swing pivots and trend lines. Also, you can use technical indicators like moving averages and MACD (Moving Average Convergence Divergence).

    Write down your trading rules. – It is always good advice. Your trading strategy is still simple and you might be able to memorize the trading rules. But you must write down your trading rules. If you write down a trading plan you will get a robust and trustworthy method. Just in order to ensure discipline and consistency. It also gives you a record of your trading strategy. You will find it useful when you have to improve it.

    When you have written rules, you can backtest the strategy. – When you have a discretionary trading strategy, backtesting can be a difficult process. Discretionary trading is decision-based trading where the trader decides which trades to make based on current market conditions, and system trading is rule-based trading where the trading system decides which trades to make, regardless of current conditions. So, if you have a discretionary trading strategy you need to replay the market price action and record your trades manually. But if you have a mechanical trading strategy and a coding background, you can speed up this stage. Looking through the trades one by one is a fantastic way to develop your market instincts. This can also help you think of ways to improve your trading strategy.

    Don’t worry if your first trading strategy is not profitable.

    It’s okay. Your trading strategy is not fixed, it is a living thing. As your experience and knowledge grow, your trading strategy will improve. Avoid drastic changes to your trading strategy. That will provide you trading with success.

    Your goal is to achieve positive expectancy with every trade. Not positive profits for each trade. Statistics have to work for you.

    One thing is the most important when you create your first strategy and enter the market for the first time. Don’t be stubborn on the market.

    Should you trade Forex or stocks

    You have access to an increasing number of trading instruments, from blue-chip stocks to the Forex markets. In order to make the best choice, you have to recognize which of these markets can be confused. Many factors need to be considered

    The most important factor may be the trader’s or investor’s risk tolerance and trading style.

    As an example, buy-and-hold investors would prefer participating in the stock market, while short-term traders, including swing, day and scalp traders, may prefer markets where price volatility is more involved.

     

    Trading With Success - a guide for beginners 34

    For traditional buy-and-hold, “long-only” investors, stocks remain an obvious option for a lot of reasons. Stocks have a long-term history of positive returns and investors receive income from dividends. But when it comes to trading, forex trading has many advantages to offer. And you should think about when deciding whether to trade forex or stocks.

    Forex VS Blue Chips

    Forex market is the global largest financial market. You may be attracted to the forex market because of its high liquidity, around-the-clock trading and the leverage that is provided to participants.

    Blue chips are stocks from well-established companies. These stocks can operate profitably during challenging economic conditions and have a history of paying dividends. Blue chips are less volatile than many other investments and are often used to provide steady growth potential to investors’ portfolios.

    Let’s take a look at some of the differences and similarities.

    Volatility 

    Some traders, especially short-term and day traders, prefer volatility to profit from quick price swings in the market. The other traders are more comfy with less volatile and less risky investments. That’s why short-term traders are attracted to the forex markets, while buy-and-hold investors prefer the security provided by blue chips.

    Leverage

    The forex market offers notably higher leverage of up to 50:1. To be honest, in some parts of the world even higher. But it isn’t all good as it looks. While higher leverage provides the opportunity to build equity with a very small investment (you can open a forex account with $100), leverage can easily destroy a trading account

    Trading Hours

    You have to choose a trading time. Trading sessions for stocks are from 9:30 A.M. to 4 pm Eastern Standard Time (EST). Monday through Friday except for market holidays. 

    The Forex market is active round-the-clock from 5 P.M. EST Sunday, through 5 P.M. EST Friday, opening in Sydney, then traveling around the world. You have the opportunity to trade on U.S., Asian and European markets, virtually any time of day. It is a bonus plus to traders.

    Tax time

    Short-term gains on futures contracts, for example, can be eligible for lower tax rates than short-term gains on stocks. Furthermore, active traders can choose the mark-to-market (MTM) status, which allows deductions for trading-related expenses, such as platform fees or education. It is strongly recommended that traders and investors ask the advice of a qualified accountant or tax specialist, especially since trading forex can make for a confusing time organizing your taxes.

    The internet and automated trading provide to active traders and investors all over the world to compete in different markets.

    How To Trade Crypto And Stocks / Forex

    At first, we have to define the difference between crypto and Forex/Stock trading because you have to have theoretical knowledge.

    – Cryptocurrency trading is the exchange of cryptocurrencies. You are simply buying and selling a cryptocurrency for another. For example, Bitcoin for USD and Euro.

    – The foreign exchange market or Forex is a worldwide decentralized or over-the-counter market for the trading of currencies. This covers all the features of buying, selling and exchanging currencies at current or determined prices.

    – Stocks trading is the buying and selling of company stock or derivative products based on company stock in the hope of making a profit.

    Let’s go further!

    HOW TO TRADE CRYPTO with success

    Crypto shows bigger growth than stocks or forex. Honestly, all of these types of investment are risky.

    Bitcoin is not the only digital currency but it is surely the first and most popular one. The technology behind cryptocurrency provides a secure process to identify a transaction and the system to transfer funds.

    If you want to trade cryptocurrency you will need a cryptocurrency wallet and exchange.

    But you have to know a few things about trading cryptocurrency.

    Trading cryptocurrency is simple to begin, but there are some basic features to know before you start. This is friendly advice to think about, not professional investment advice.

    I’ll explain on the example of Bitcoin.

     

    Trading With Success - a guide for beginners 35

    There are three ways you can trade Bitcoin with success:

    Buy the underlying from an exchange or online cryptocurrency broker

    For those who are willing to actively protect their Bitcoin, owning the underlying is clearly the way to go. But you have to decrease the risk of Bitcoin stealing and loss of private keys. You have to diversify holdings through wallet types, using two-factor authentication and strong passwords.

    Trade a CFD derivative and hold cash margin with an online forex broker or multi-asset broker.

    Active traders looking to speculate on Bitcoin over the short or medium term may find that trading CFD/derivatives on Bitcoin using an online forex broker will provide them with 24-hour trading, potentially lower margin, and the ability to go either long or short. Because of counterparty risk, choosing a broker is just as important as finding one with the best trading tools or commission rates.

    Buy a publicly listed security related to Bitcoin and hold shares with an online stockbroker.

    Investing in Bitcoin indirectly through listed security can be proper if you want to take a passive position. The restricted trading hours and possible lack of volume are factors that could limit your trading. Anyway, using listed securities that hold Bitcoin can be a practical option to diversify. There is no risk of margin trading or needs to protect private keys when you buy the underlying.

    HOW TO TRADE FOREX  with success

    Forex is known as foreign exchange, FX or currency trading. It is a decentralized global market where you can trade all the world’s currencies. Currency trading is based on what you think some currency’s value is. For example, if you believe a currency value will increase, you just buy it. If you think it will drop then you sell it.

    Forex trades require two currencies. Actually, you’re speculating on the price of a currency against another. The most-traded currency pair in the world is EUR/USD pair.

     

     

     

    EUR, the first currency in the pair, is the base, and USD, the second is called the counter.

    A price quoted on your trading platform shows how much one euro is worth in US dollars. You will regularly see two prices. Why is that? One represents the buy price and the other the selling price.

    The difference is called – spread. 

    Let’s say you want to sell or buy.

    When you click ‘buy’ or ‘sell’, you are buying or selling the first currency in the pair. Since the euro is first, and you believe it will increase, you buy EUR/USD.

    If you believe the euro will decrease against the US dollar, you sell EUR/USD.

    The prices are quoted to the hundredth of cents, what will provide you huge returns on your investment? Leverage!

    The main point in Forex trading is that you are actually borrowing the first currency in the pair to buy or sell the second currency. To trade with leverage, you simply set aside the required margin for your trade size. 

    The leverage is usually 50:1, 100:1 or 200:1. That depends on the broker or the size of the position of trading. 

    What does this mean? 

    If you’re trading 200:1 leverage, for example, you can trade $2,000 in the market by putting $10 in the margin in your trading account. This is ordinarily practiced for positions of $50,000 or less.

    Or the other example,  a 50:1 leverage indicates that the minimum margin call for the trader is 1/50 = 2%. 

    If your trading is on 100,000 units of currency, the leverage is usually 50:1 or 100:1. 

    However, leverage can increase your profit potential, but also it can boost your losses. Start trading with lower leverage. Later, when you feel comfy your trading may have bigger leverage ratio.

    HOW TO TRADE STOCKS with success

    Stock markets are places where buyers and sellers of shares meet and decide on a price to trade.

    Trading With Success - a guide for beginners 37

    When you want to buy a stock, you cannot buy it from the company. You have to buy it from some other shareholder.

    The prices of shares can be established in many ways. The most usual way is through an auction where buyers and sellers place bids and offers. A bid is a price at which someone wants to buy, and an ask is a price at which someone wants to sell. When the bid and ask match, trade is done. If there are many buyers and sellers at higher and lower prices, we can say that the market has good depth.

    Stocks are quoted by their ticker symbol.

     

    A market order is just an order that tells the broker to buy or sell shares at the best possible price. A market order does not guarantee the price of the stock, but it does guarantee that you will get the number of shares you want.

    When an order is executed, it is usual to say it is filled.

    Stop orders guarantee that your trade will be executed only when what you want to buy or sell reaches a demanding price.

    If you understand how the financial markets are structured you can use the same skill and experience to profit in all three.

    Buy low and sell high is the main principle for all three.

    There is no difference.

    The closing words

    So, what Traders Paradise wants with this article Trading With Success – a guide for beginners?

    The world you are going to step in is wonderful.

    Trading is similar to riding a roller coaster. It is pleasant and exciting. Sometimes you may feel afraid, worried or even weak. 

    Don’t panic or give up.

    And you will see what real freedom is. You can live and work anywhere in the world. You can be independent and free.

    A great trader is committed to being the best and doing whatever it takes to be the best.

    Trading is acceptance of probability, not a fight. So, the biggest enemy to your success is in your mind, in your attitude, in your lack of knowledge.

    The secret to being successful in trading is to have a constant and an eternal desire for information and knowledge

    The market success doesn’t have to come fast. Trade small, stay in the game, and you’ll reach a good level of knowledge.

    “Money is simply something you need in case you don’t want to die tomorrow,” said Martin Sheen.

    This is a reminder for you.

    Try not to be obsessed with profits and losses. Trading with success guide will help you.

    In whatever you do, try to find pleasure, courage, dignity, openness. And your trading performance will improve significantly.

    We expect that this article has provided some answers to get you to start trading.

     

    Wish you luck!

     

    Trading with success! Good luck from Traders Paradise Team!

    Read our blog http://traders-paradise.com/ and visit our Facebook page Traders Paradise, join our Traders-Paradise Facebook group and find us on Twitter 

    About the author

    Trading With Success - a guide for beginners 39

    Guy Avtalyon is a data researcher that uses statistic models and unsupervised machine learning algorithms to determine trends in the market.
    ”The truth lies within the data.”

  • The types of stocks and stock trading

    The types of stocks and stock trading

    The types of stocks and stock tradingWhat are the main types of stocks, what are the main types of stock trading? Here is all about them you ever wanted to know.

    By Gorica Gligorijevic

    The types of stocks can be different. There are 3 stocks major groups divvy up the stock market into smaller pieces.

    Here are the 3 main types of stocks:

    Traders-Paradise will point these three types that are most interesting to investors and traders. We want to explain all benefits and disadvantages if any for each of them

    Common stocks

    The term originates from the availability. These stocks are the most common among others. They make up the bulk of the buzz on Wall Street. Common stock is a part of ownership in the company. Common stockholders have a right to a company’s profits and value, as well as a vote in major decisions and board elections. You can see their prices quoted online, in newspapers, financial publications, etc. Common stocks may pay a dividend but not necessarily. They are riskier than preferred stock.

    Over the long run, these stocks, from the point of capital growth, will yield higher returns than almost any other investment. But it isn’t without costs. Common stocks involve the most risk.

    When people talk about types of stocks, in general, they are most likely referring to this type. Common shares represent ownership in a company and a part (dividends) on a portion of profits. Investors have one vote per share to choose the board members. They monitor the major decisions made by directors.

    But this is the place where privileges stop. For example, if a company goes bankrupt, the common stockholders will not get the money before the creditors, bondholders. Only when they all are paid it’s time for stockholders to be paid.

    When you buy common stocks, you become a partial owner of the business in the way. Stocks are bought in shares. The more shares you have, the bigger your share of the profits. It commonly refers to dividends. Investors usually get one vote per share. Voting is a privilege given to a shareholder and is used in situations such as as-as the election of the board members who oversee the major decisions made by management.

    Preferred stocks

    This is another one among the types of stocks. Preferred stock represents some level of ownership in a company but regularly doesn’t come with the same voting rights. They are issued with known dividends much higher than the common stock. An added advantage is that in the case of liquidation preferred stockholders are paid off before the common stockholder. These stocks are safer than common stocks.

    Preferred stocks can be callable, which means that the issuing company can buy back issued preferred stocks at a premium on its own accord.

    Stocks are also convertible, that allow a preferred stockholder to change their preferred stocks into common stock.

    The owners of the preferred stock take on most of the risk. For example, if the company misses one of the dividend payments, it doesn’t result in a failure.

    In most cases, a missed dividend payment accrues and the company will eventually pay it back to the investors. The dividend on the preferred stock must be paid before any dividend is paid to the common stockholder. Preferred stock is however junior to debt.

    Share classes

    This is considered to be one of the types of stocks for many reasons.  Common and preferred are the main kinds of stock. However, it’s also possible for companies to modify different classes of stock in any way they want. The most frequent reason for this is the company wants the voting power to remain with a certain group. Hence, different classes of shares give different voting rights.

    For example, one class of shares would be held by a select group who are given 10 votes per share while a second class would be issued to the majority of investors who are given 1 vote per share.

    If there is more than one class of stock, the classes are traditionally characterized as Class A and Class B.

    In many instances though, the company may choose to decouple the voting rights from the shareholding by creating multiple classes of stock. The most common way this is done is via the issuance of A and B classes of shares. Shares are normally sold to the public but they may carry very little voting right. Most of the voting rights may be concentrated in the B shares, which may primarily be held by the management or the founders/founding families of the company.

    This is one way of enabling the public to finance and participate in the growth of the business. But, at the same time, not giving up the ability to control the direction of the company. This may be useful for the management or the founders of the company to continue to run the business in line with their original vision.

    However, this also creates various conflicts or issues such as:

    1) The A-shares are less desirable and will trade at a discount to the B shares due to the limited voting rights,
    2) This discourages the shareholders or an activist investor to come in and make changes to the management or the business direction that may be sorely needed, and,
    3) This encourages the management or the B shareholders to run the company for their own benefit and not for the benefit of the public shareholders.

    Some of the well-known companies that have their shareholding organized this way are Ford Motor Company, Google Inc, and Alibaba.

    For example, Berkshire Hathaway (ticker: BRK), Warren Buffett’s company, has two classes of stock.
    You can notice the difference in the ticker symbol. For example, BRKa or BRKb, also, BRK.A, or BRK.B.

    What are the 3 main types of stock trading?

    Based on the duration of stock holding, the different types of stock trading can be classified as:

    Day Trading

    It is a type of stock trading where both buying and selling of a financial instrument are done on the same day. This means, all the tradings are closed before the market closes for the day. Traders who participate in day trading are described as active traders or day traders. Day trading requires a fast decision and quick action.

    We don’t advise this type of stock trading to a beginner.

    Short Term Trading

    A trade period of more than one day to a few weeks is viewed as a short term trade. Traders buy and hold in position from one day to a few weeks. They enter the short trade when creating a sell position.
    It is closed by buying after one day or in a few weeks.

    For example, swing trading and pattern trading are varieties of short trading.

    Long Term Trading

    In this type of stock trading, the stock is held for many months to many years. The investment decision is made by a fundamental analysis of a stock. Why traders like this type of trading? Well, it is due to the profit that comes from the company’s growth, the other reason is dividends.
    For example, value Investing and the buy-and-hold strategy.

    All about types of stocks and stock trading

    So we can say, stocks are claims of ownership in the business that is publicly distributed.

    However, this ownership can come in many different ways. We presented you with different types of stocks that you may find in your investment business. Not all of these are exactly an alternative of stock ownership, but we have included these here.

    A stock trader job can be very profitable.

    You realize that there is plenty of benefits to stock trading. You have legitimate reasons to enter the field of stock trading. It is now time to decide what type of trader type you want to be.

    All you have to do is to adopt the correct strategy in your future investment profit making!

     

  • Lot size in forex – What is it and How to calculate it?

    Lot size in forex – What is it and How to calculate it?

    (Updated October 2021)

    2 min read

    Trade Crypto And Stocks / Forex - How To Do That 2
    What is a lot? A lot is the smallest available trade size that you can place when trading the Forex market. The brokers will point to lots by parts of 1000 or a micro lot. You have to know that lot size directly influences the risk you are taking.

    Hence, finding the best lot size with a tool like a risk management calculator can help you determine the desired lot size. It has to be based on the size of your accounts. No matter if you exercise or trade for real. You must understand the amount you would able to risk.

    In the stock market, lot size refers to the number of shares you buy in one transaction.

    In options trading, lot size signifies the total number of contracts contained in one derivative security. The theory of lot size allows financial markets to regulate price quotes.

    It basically refers to the size of the trade that you make in the financial market. With the regulation of prices, investors are always aware of exactly how many units they are buying an individual contract. Hence, they can quickly evaluate what is the price they are paying for each unit.

    What is a lot size in forex? How to calculate it?
    As it is already written in our previous post, currency movements are measured in pips and depending on your lot size a pip movement will have a different monetary value.

    How much is 1 Lot?

    In Forex, 1 standard lot refers to the volume of 100.000 units. So when you buy 1 lot of a forex pair, that means you purchased 100.000 units from the base currency.

    Assume that you want to buy EUR/USD and let’s say that the EUR/USD exchange rate is 1.10.

    When you buy 1 lot of EURUSD you will be making $110.000 worth of purchase.

    If you are using leverage on your broker you don’t need to have $110.000. With 1:100 leverage, you will only need $1.100 (110.000 / 100 = $1.100) in order to be able to execute the order.

    When the leverage goes higher, the margin you need to open the trade goes lower.

    For example, if you are using 1:500 leverage, you need only $220 (110.000 / 500 = $220) to buy 1 standard lot of EUR/USD.

    For 1 lot or standard lot, worth of one pip is equal to $10 if USD is on the counter currency in that pair. Therefore, if EUR/USD goes upwards for 100 pips after you buy, you will make $1000 of profit.

    Every trader must define the volume of the trades based on own risk perception. The bigger lot means bigger the profit/loss from the trades.

    Of course, it is reasonable sometime to open trades under 1 lot using the mini lot, micro lot and nano lot.

    Mini Lot size

    Suppose you are new in forex trading, it is strongly recommended to use mini, micro or nano lots to avoid big losses.

    Mini lot is equal to 10% of standard lot (100.000 x 0.10 = 10.000 units). Thus, when you open 0.10 lot, you will trade 1 mini lot. With every mini lot, the worth of 1 pip for EUR/USD equals to $1.

    If you are a novice and you want to start trading using mini lots, be well capitalized.

    $1 per pip seems like a small amount but in forex trading, the market can move 100 pips in a day, occasionally even in an hour. If the market moves against you, that is a $100 loss. To trade a mini account, you should start with at least $2000.

    Micro Lot size

    Micro lot is equal to %1 of standard lot (100.000 x 0.01 = 1.000 units).

    When you trade 0.01 lot of EUR/USD, you buy or sell 1.000 units of EURUSD.

    The worth of every 1 pip for EUR/USD is $0.10 if you use a micro lot (0.01).

    Micro lots are the smallest tradable lot.

    A micro lot is a portion of 1000 units of your accounting funding currency.

    If your account is financed in US dollars a micro lot is $1000 worth of the base currency you want to trade. If you are trading a dollar-based pair, 1 pip would be equal to 10 cents.

    Micro lots are very good for beginners.

    Nano Lot size

    Nano lot, named cent lot by some forex brokers, is equal to either 100 or 10 units. In some forex brokers, nano lot refers to 10 units while in some other brokers, it may refer to 100 units.

    Nano lot is not offered by many forex brokers.

    Truly, only a few brokers offer this option as an account type such as FXTM and XM.

    Nano lot is the safest way to trade if you are a novice trader or if you want to test a new trading strategy.

    You can go through the training process with much less risk and loss.

    Also, if you bought a new expert advisor or are trying a new trading strategy, it is smart to use nano lot for the first few weeks. Just in order to avoid big losses.

    The bottom line

    It is smart to likening the lot size that you trade and how a market move would affect you to the amount of support you have when something suddenly happens.

    When you place an extremely large trade size relative to your accounts, you can be faced with many troubles.

    Even small movement in the market could send a trader the point of no return.

  • Monetizing Bitcoin – Full “How to” tutorial

    Monetizing Bitcoin – Full “How to” tutorial

    earn profit by trading in bitcoin
       

     Guy Avtalyon, data analyst

     

        * What is bitcoin and why does it keep rising
    * The technology behind bitcoin and its uses
    *  What is the difference between “trading” in bitcoin and “investing” in bitcoin time and strategies

    In this article I’m going to teach you how to trade in bitcoin and ethereum.

    • How to make REAL profits

    Real profit is money in your pocket, not on some address on some internet page

    • How to avoid massive drops in prices which will end up with losing your money?

    And how to build your own trading budget Using a unique method I invented and improved over the years (The BBB Method).

    You will also see how I almost DOUBLED my virtual money during the recordings for this tutorial.

    I want to start this tutorial with some warnings and risk disclosure:

    IT’S NOT EASY MONEY. THERE IS NO SUCH THING AS EASY MONEY!

    But as you are about to see…

    There’s a current opportunity and we can take advantage of it on time?

    This is how trading in Bitcoin with a good strategy and risk management should look like:

    bitcoin trading strategy

    This tutorial is about to show you how to:

    • Trade in Bitcoin successfully
    • Withdraw and save your profits for a better night’s sleep
    • Come up with a smart Trading Strategy that can both profit & save us from massive drops and strong changes in the price

    Sounds imaginary, right? Like I’m making it up. It’s not.

    AND YOU WILL SEE EVERYTHING RIGHT NOW!

    This is an example of a position where I buy bitcoin through my broker. I don’t own real bitcoin, I trade on its price while other people hold it:

    The position of buying Bitcoin

    After 2 hours = 1700 richer. I can live with that.

    I entered a ‘long position’ (means I think the price will rise) and just two hours later I’m 1,700 EUR richer, but it’s only paper money for now, NOT realized… Not in our pocket yet. Nice to look at but don’t be fooled – Our money has to be realized (changed back from BTC to Euro or Dollar) so we can make REAL profits.

    ENTERING POSITION

    Take a look at the entering position screen:
    (explanation below)

    trading position bitcoin
    Here’s a full explanation of the image above:

    pending order
    Market execution means the position will start immediately at any given market price (the price it’s being traded for at this moment). We use this option most of the time. A pending order is when we want the system to automatically execute a position once it reaches a specific price we entered earlier. We use it only to control massive price drops.

    For example, we’ll see later how this strategy took care of a 45% drop in Bitcoin’s price (!) that happened in the span of just two hours. (Date – 22.12.2017).

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 6
    Amount – you can use as much as you want from 0.01 to 10, depending on your margin money, which is the amount of funds the broker lets you trade on. I chose the maximum at this point.
    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 9

    Take profit and stop loss – Always turn them on by clicking on the “switch on” button (yellow/orange arrow)

    How to use those extremely important features will be explained further on.

    Monetizing Bitcoin – Now the math:

    There is, for now, and at this moment, a more than 85% chance for the price to rise at any given point (Classic bubble behavior, if you ask me).

    Although the price will rise before it falls, we’ll see later that drops WILL happen, and we need to know that for a FACT!
    For that reason, our strategy is based on three layers, and our positions on every layer will be calculated based on how much our ‘Risk Management Budget’ allows us. (How to calculate the RMB – later on).

    First layer:

    Description: Fast, surer, and smaller profits.

    Typically characterized by brief periods of time. Our goal is to realize as much money as we can, and this layer is designed especially for that.

    Second layer:

    Description: Higher profits with a bit more risk. As the chances of Bitcoin to rise stay this high, we need this layer to give us higher profit margins for the drop that will surely happen.

    We use this strategy only when we have indications that Bitcoin’s price is bottomed and there’s an opportunity to “buy low”.

    Those indications can be viewed in these two ways:

    1. Finding resistance lines using Bitcoin charts and technical analysis. A post specially designed to explore how to interpret these charts will be available on my blog (want to know when it comes out?+link). 
    2. Following BTC news, testing theories and see what works and what doesn’t.

    I use them both. I use them to make an educated guess whether or not it’s time to buy or to sell. And as you can easily see – IT WORKS!
    (I send my analysis to my readers every once in a while. If you want to get it too – click here)

    Third layer:

    Description: The anti-drop mechanism
    Last, but not least, the third layer. The important one. This layer is designed to CATCH the rise after big drops.

    Because of the simple principle that says we can’t anticipate nor can we predict future prices, we have to be ready for every situation.

    In case study #3 I will further explain how I used this layer to maximize my profit after the big drop that took place two weeks later!

    Monetizing Bitcoin – CASE STUDY #1

    Small profits – First layer

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 10

    1: Write BTC in search on the left side of the screen
    2: Symbol: BTCEUR = Bitcoin to Euro / BRCUSD = Bitcoin to US Dollar

    The main reason this is important is that some people trade only with Euros (from Europe for example) and vice versa.

    Since the price is always determined by people, and people are guided and motivated by psychology and the “Joy” (or satisfaction or whatever) for nice, round and even numbers it must also be treated in our calculated opinion.

    3: Sell and buy

    Let’s look at the USD:

    We can see the sell 11,257 and buy 11,517. This means if I buy now, at market price, the price I will pay will be 11,517 USD for 1 BTC.

    If for any reason, I decide to sell it immediately, the price I will get back will be 11,257, or in other words, I will be losing $260.

    This is called a Spread.

    So, when I buy at 11,517 and use this strategy of:

    Take Profit – 12,000 Stop Loss – 10,000
    (This means that if and when the price reaches 12K the system will automatically exit the position for us at a profit. If price first drops to the 10K line – the system will close our position, but with a loss).

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 11
    I am currently where the yellow marker is, and I put the take profit and stop loss lines as explained in the image. See the yellow marker is closer to the take profit line? This means it has better chances of reaching the take profit line before it reaches the stop loss line. This is the game – what happens first!!!

    For price 11,517 = Take profit needs about $500 more to exit in profit or $1500 drop to lose. Or in math way to describe them – 1 to 3 (25%).

    Take a closer look at this image again: The RED line is exactly in the middle between those two yellow lines. And the odds are mentioned:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 12
    But, since 85% chance isn’t enough, I wait for the price to rise a bit, and enter the red triangle in the next image:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 13
    I immediately gain a statistical advantage that brings my success opportunity to more than 90% chance of winning.

    AND AS YOU CAN SEE, THIS 90% CHANCE DOES NOT LET ME DOWN.

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 14
    This is how it looked when I entered that position. At first, I’m in RED (in the circle) and that means I’m currently in “losing”. But that’s because we have to wait for the spread to close and then we’ll start being in the green (profit).

    We can see in this chart what happened in the few hours leading up to my entry point and following it:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 15
    You see it stayed a while around 11,500 lines (in the yellow area?)

    So, when it dropped a bit I bought (Yellow Arrow). But what happened next, I had no way to predict…

    It continued dropping!

    BUT…

    Luckily my strategy lines had a tolerance to this small drop and from that point, it kept rising. After less than a day: (still negative, but less…)

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 16
    I also measure the time the position takes. If it takes longer than regular then it means that we are currently around the resisting lines.

    It’s very important to know that and this will help us out with further layers.

    A few more hours in and it goes green for the first time! One step more to monetizing Bitcoin.

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 17
    And it only took a few more hours for this position to finally automatically close with 4K profit:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 18
    You can see in the history tab all recently closed positions.

    This position took about two days and was a bit longer than the average of 1.5 days position, and this is how it finished:

    Open price 11,472 (on previous images you could see it was a bit different number. That’s because by the time it took me to capture the screen and save it), TP (take profit) exited for me at 04:23 am in the morning! If it wasn’t automatic I would have never had the chance to do it on time.

    And a profit of €4,459. Not bad for 2 days of not working and with a budget of only 19,000 EUR. 

    Monetizing Bitcoin – CASE STUDY #2

    Further steps to monetizing Bitcoin. This strategy was easy. I showed in Case Study #1 that 12K is a strong line, so I put it for the stop-loss parameter. The TP line is very near, and this doesn’t need to take long…

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 19
    BUT….

    IT TOOK A WEEK!

    I entered here:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 20
    And exited here:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 21
    You can see I entered at a peak!

    This is also very good because that shows me the lines are around 17,000 and 12,000. That’s very interesting for us.

    The exact middle point (14,500) is a strong point and that means every time it drops beneath it – we know it will reach and bounce back again most of the times.

    And we can see it here:

    You can see this chart that was 2 weeks later than the position you just saw!

    This chart that was 2 weeks later than the position
    You can see that I knew what would happen in the near future!!!

    (Yellow line is about 14,500 and the arrows show that it keeps getting back there)

    Those are things we must KNOW and this what this tutorial is all about.

    NOW,

    Let’s go back to our position:

    It took us a week as you can see in the following image:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 23

    Here you see the Order number (yellow circle)

    Even though I entered and exited a few more positions during that time, I decided to manually close this position and not wait until it reaches TP point.

    In the end, as you can see (yellow circle and arrow)

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 24
    Close price was at 16,830 which gave me smaller profit, but since I know now that 17,000 is a hard line to pass, I got out and I will wait for it to drop a bit before I enter again.

    You can also see profits from the same week, and note that the average time is 1-2 days. If it takes longer – we must understand where we are.

    Monetizing Bitcoin – CASE STUDY #3

    After we saw how to make what we can call “easy money” we look at the other side. The losing money side.

    Drops will happen and most of the time, if your strategies are good, you won’t even notice them.

    BUT…

    Every once in a while, there’s a massive drop, in a short period of time. Those are our enemies.

    On Friday, December 22, 2017, there was a massive price drop. In two hours, the price lost 45% of its value(!!)

    That day I lost 40K of profits. And many lost all their money. Searching Google shows 10,700 results from that DREADFUL day. (Following image)
    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 25
    BUT,

    The anti-price-drop strategy proves to be very efficient. Because I got all of it back with more!!!!!

    HOW DID I DO IT? 

    Remember I told you about the 12,000 as a limit line? And I told you about the option to give the system buying order only when it reaches a certain point?

    So that’s what I did:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 26

    I simply created a pending order for a few months ahead.

    This means that if price drops beneath 11500 (which is minus 500 from the 12K line we saw earlier) I automatically buy at this price.

    I did it with the BTCEUR symbol so I wouldn’t get confused.

    This means I used layers 1+2 with the BTC to USD position and BTC to EUR on layer 3, the anti-drop layers.

    What happened that dreadful day: The price dropped from $13000 to $9000 (yellow circle)

    The price dropped from $13000 to $9000
    So I put the pending order at approx. price 11900 (blue arrow) and when it dropped to 9,500 (black circle) the system automatically filled my request and bought BTCEUR

    And just a few hours later

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 28

    20K PROFIT!

    SWEET!
    IT WASN’T OVER!
    Few more hours passed, and I was back at the point I was before the massive drop:

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 29

    Pretty nice, isn’t it?

    Monetizing Bitcoin – CASE STUDY #4

    Before I show you the results of this position, I want to show you what I measured and analyzed and how it affected my decision.
    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 30

    This chart (A) is what I saw before entering the position, and Chart B is the position itself.

    You see that almost half of the time the price is around the $8000 line, right? (Big blue line…) Then, it skips $9000, straight to $10000 (Yellow line)

    Now, if you were at this point of time and saw it going over $11000 and then $11500 you could have believed it’s now about to reach $12000…

    BUT…

    As I keep teaching my students, at this time there are people who bought at $8000, and we saw it spent A LOT of time on that line (blue line), so they will realize their Bitcoin! Remember?

    That’s what WE ARE DOING!

    Trying to realize funds… And as this is the best strategy out there, we have every reason to believe many more people do the same.

    So that’s why we see it moving around the $10000 line (Red line) for few more days and then when it popped the $11500 line again, I entered at $11750.

    My strategy was:

    TP (Take Profit): 13,000 SL (Stop Loss): 10,000

    There was a chance it will get back to 10K. I know. But I wanted it to end as soon as possible…
    This is the position (Marked in yellow fill):

    The use of stop loss

    See the nice 10K profit!

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 32
    It did end up higher later on, and if I were to put TP at 15,000 it would probably end up in approx. 30K profit right into my pocket, but this was a layer one – easy and small profits for short periods of time.

    WE CAN NEVER REGRET OUR STRATEGIES.

    Monetizing Bitcoin – CASE STUDY #5

    One of the best trades I did! (Marked in yellow fill)

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 33

    And that’s the profit I ended up with (€4,137.14).

    MONETIZING BITCOIN - THE TECHNOLOGY BEHIND BITCOIN AND ITS USES 34

    But how did I know when to enter??

    I saw it staying on 16,500 lines and bounce back, never reaching 17,000 nor 16,000 (yellow lines) So when it reached 16,500 after few hours…

    I entered this position:

    TP: 17,000
    SL: 16,000

    Where it’s an 85% chance of winning, but I also measured time so…

    When it ended after just a few hours, I knew 17,000 is a good line and in the near future, the price would touch this line a few more times.

    NOTICE: I didn’t know if it would rise above that line.

    BUT (!!)

    I know some people are willing to pay $17,000 for 1 Bitcoin – and that tells me a LOT.

    This chart shows 4 days after the position and my conclusion:

    The chart shows the position after 4 days

    The yellow line shows the 17,000 lines, and how the price kept “touching” it.

    A good strategy was: Pending order

    Enter at 16,000
    TP: 17,000
    SL: 15,000

    But a better strategy was:

    Enter at 16,500
    TP: 17,000
    SL: 15,000

    Why was that a better strategy? Three reasons:

    1. The price moved around 16,500 a lot more than 16000. This raised our chances of catching something at all…
    2. Since the distance the price has to go in order to reach TP point is way lower than the SL point, the chances of it reaching our stopping point before reaching profit point drop exponentially.
    3. It happened a few times, so potentially we could have profited from the same rise in price a few times!

    Monetizing Bitcoin – CASE STUDY #6

    Buying Ethereum

    This is a way to show you that you can also trade Ethereum using the same principles and profit:

    Ethereum as an example

    1. Under Cryptocurrencies see ETHUSD
    2. In the amount window, we can buy only 10 units (like Bitcoin). I don’t know why it is but that’s a fact. That’s why I prefer trading Bitcoin for higher profits…
    3. The strategy I created: See the following image:

    This is a chart from two weeks before my position:

    bitcoin chart progress

    That was easy. See it reached over $ 800?

    So it means there are people who believe it’s worth that much…

    So when it was down at about $650 I bought with this strategy (Also in the previous image where I got lucky and the price kept dropping so I ended up buying in about $625)

    Strategy:

    TP: 700

    SL: 450

    Why 700 – because that’s a price it already spent time on (Green circle) so it will probably reach there again.

    Why 450 – Because it’s also where it spent time, and if it drops beneath I wouldn’t want to be around there… (Red circle)
    All in all, after 4 days – a nice profit of 636 EUR…

    The profit after 4 days
    You can copy this method to other cryptocurrencies.

    HOW TO CREATE A GOOD STRATEGY BUDGET FOR Monetizing Bitcoin

    OKAY, THIS IS THE MOST IMPORTANT STEP. AND… IT’S REALLY EASY!

    The formula I’m about to show you will save you a lot of time:

    How to invest your money wisely on strategies:

    You’re probably looking for a simple solution like:

    30 % Layer one 40 % Layer two 30 % Layer three

    And you are not all that mistaken,

    BUT…

    It’s a bit more complicated than that because it HAS to be dynamic.

    So I developed a method for Trading in Bitcoin. I call it Bubble Bubble Boom (the BBB Method) and it’s so simple it’s almost a crime not to share it with others…

    HERE IT IS:

    For every position, we risk no more than 50% of our Balance.

    If there’s a loss (it will happen 15% of the time) – We stop all trades and start building our Layer three strategy.

    Since strategy in layer three is Pending Order we again risk only 50% of the balance. If it’s a win – we continue normally
    If it’s a lose – We stop all Bitcoin trades and wait 2-3 weeks to see developments over the media Overall, we allow only 2 stops before we take this down for a few weeks for reorganization.

    And start all over again, until the bubble pops…

    FINAL WORDS ABOUT MONETIZING BITCOIN

    I’M SO GLAD TO SEE YOU HERE!

    This means you found my tutorial interesting and you probably want to learn more.

    First of all, visit my blog to see what is new (I write daily), and if you become a subscriber you’ll have a 90% chance to make more money by the end of the year!

    I’m kidding, I can’t promise that…

    BUT…

    I can promise my subscribers already got strategies that made all around over 3.5 million USD in net positions, so for sure it will be fun!

    And of course you can reach me there if you have any questions about this tutorial, or you want to share your ideas or anything you want – I’m here for everyone!

    PLEASE ALWAYS REMEMBER: NEVER TRADE / INVEST / PLAY ON MORE THAN 0.5%-2% OF YOUR NET WORTH. NEVER EVER.

    How to choose a broker?

    I keep getting asked questions on how to trade, and where, and who is reliable… So I decided to finally share my portfolio!
    In order to trade and also get paid for it, you have to have a broker. There are several brokerages and you won’t find it hard to find a broker. Google can help you with that.

    I work with two different in this analysis of Monetizing Bitcoin. Each one for my different needs.

    In this tutorial, I showed you Tradeo platform and that’s what I use to trade BTC because it’s easier.

    Although this tutorial was made on a different platform. Anyway, you should try on some demo account to test out our Case Studies of monetizing Bitcoin above.

    I recommend that wholeheartedly, a demo account is extremely important for trial and error free of charge.

    HOPE YOU ENJOYED IN OUR JOURNEY OF MONETIZING BITCOIN!

    risk disclosure

    About the author

    Guy Avtalyon, the data analyst and author of the tutorial

    Guy Avtalyon is a data researcher that uses statistic models and unsupervised machine learning algorithms to determine trends in the market.
    ”The truth lies within the data.’



  • What Are Pips in Forex Trading?

    What Are Pips in Forex Trading?

    (Updated October 2021)

    3 min read

    Two Different Approaches to Profitable Forex Trading 3
    The pips, short for ”percentage in point” or ”price interest point”, is the smallest fractional price move in the exchange market. When a price change on the exchange it is referred to as a Pip or Pipette change.

    Pip is a standard unit for measuring how much an exchange rate has changed in value.

    As most currency pairs are priced to 4 decimals places ($0.0001) the smallest change would be to the last number after the decimal point.

    The most notable exceptions are those FX pairs involving the Japanese Yen. For pairs involving the JPY, 1 pip is a movement in the second decimal place.

    Originally, a pip was effectively the smallest increment in which an FX price would move. Though, with the advent of more explicit systems of pricing, this original definition is no longer valid.

    Traditionally, FX prices were quoted to a set number of decimal places. Most commonly, it was four decimal places. And, basically, a pip was a one-point movement in the final decimal place quoted.

    Traders frequently use pips to footnote gains or losses. A pip estimates the amount of change in the exchange rate for a currency pair. You can calculate it by using the last decimal point.

    Since most major currency pairs are priced to 4 decimal places, the smallest change is that of the last decimal point which is equivalent to 1/100 of 1%, or one basis point.

    When a trader to says that made 30 pips on the trade, for instance, that means the trader profited by 30 pips. The actual cash amount this represents depends on the pip value.

    For example, if the price of EUR/USD moves from 1.1371 to 1.1372 this would be a one pip or ‘point’ movement.
    A pip is equivalent to a change of 1 point in fourth decimal in the exchange rate of the currency pair.

    How to calculate the pips value?

    1. Start with 10,000.  Multiply 10,000 by .0001 since 1/10,000th is a pip for all pairs (except JPY pairs).
    10,000 x .0001 = 1

    2. You now know each pip is worth 1 USD. That will be valued in the “counter currency” or second currency of the pair.

    3.  In this example, we are using the EUR/USD, so USD is the counter currency of the pair. Here, 1 pip is worth 1 USD dollar for 1 – 10k lot of EUR/USD.

    A short note about what is a lot in Forex?
    In the past, spot forex was only traded in specific amounts called lots, or basically the number of currency units you will buy or sell.
    The standard size for a lot is 100,000 units of currency, and now, there are also mini micro, and nano lot sizes that are 10,000, 1,000, and 100 units.

    Here is how to calculate Pip value when your base currency is not the same as the second currency in the pair.

    The example below shows how you can calculate the value of 1 Pip for 1 – 10K lot of EUR/GBP where the base currency of the account is USD.

    1. Start with 10,000. Multiple 10,000 by .0001 since 1/10,000th is a pip for all pairs (except JPY pairs). 10,000* .0001 = “1”.
    2. You now know each pip is worth “1”. That will be valued in the “counter currency” (second currency) of the pair.  In this example, we are using the EUR/GBP, so GBP is the counter currency of the pair.
    3. Take the current exchange rate of the GBP/USD and multiply it by “1” to calculate the value of 1 pip in your base currency.
    4. For example, GBP/USD is trading at $1.32 and 1 Pip for EUR/GBP would be equal to $1.32 USD.

    Value of pips

    The value of the pips for your trade can differ depending on your trading lot size.

    The difference in pips between the bid and ask is called the spread. The spread is essentially how your broker makes money because most Forex brokers don’t take the official commission.

    When your trade is positive in pips, you are making a profit. But, when it’s negative, you are losing money.

    Some Forex brokers also provide trades to grow in fractional pips. Fractional pips accept for even tighter control on profits and losses and offer adaptability on spreads.

    Major currencies pips

    Pip values vary per currency as they are dependent on how the currency is traded. On some trading platforms even though rare, it is possible to record a price move in half-pip increments. Therefore the value of one pip is generally a standard on most interfaces. However, it depends on the trading platform.

    There are systems that show 4 digits (pips) and those that show 5 (pipettes).

    The major currencies are the Japanese Yen (JPY), Great British Pound (GBP), US Dollar (USD), Euro (EUR) and the Canadian Dollar (CAD). These major currencies can be paired with each other or some exotic currencies.

    It is important to keep up-to-date of forex daily average ranges when trading, in order to estimate volatility in the Forex Market. Should the pairs not meet estimated ranges then you will not be hitting your profits. So you have to set up lower targets.

    Do pips value have relevance when hedging

    Many traders believe that there is no risk position because they are hedged. Hedging is a risk-taking position because a widening spread picks into both positions. When a dynamic event happens, the difference between the bid and ask can widen by more than 100 pips in usually liquid pairs. If a trader is hedging a pair that’s not liquid, the spread can be even more aggressive. And can result in a large loss to a hedged trader.

    What about currencies that are not quoted to 4 decimal places?

    The most well-known currency is the Japanese Yen. Currency pairs involving the yen were traditionally quoted to two decimal places. FX pips for such pairs are therefore governed by the second decimal place. So how to calculate pips with the USD/JPY currency pair: If you sell one lot of the USD/JPY, a downward movement of one FX pip in the price will enable you to earn 1,000 yen.

    The bottom line

    We hope you have the answer to the question of ‘what a pip is in Forex trading’. Being familiar with the unit of measurement for changes in FX valuations is a crucial first step.

    Before you finish this post, try to answer these 3 simple questions and check your new knowledge. But be honest and try not to look for the answers below.

    1. A $350,000 trade involving the EUR/GDP pair is closed at 0.8714 after gaining 29 pips.
    2. A $175,000 trade involving the AUD/NZD pair is closed at 1.2703 after losing 17 pips.
    3. Currency Pair: CHF/JPY, Exchange Rate at Close: 83.84, Pip Change: +18, Trade Amount: 500,000 CHF
    4. Currency Pair: USD/JPY, Exchange Rate at Close: 91.16, Pip Change: -27, Trade Amount: 200,000 USD

    The answers:

    1Number of GBP per pip: 350,000 × 0.0001 = 35
    Per Pip Value: 35 ÷ 0.8714 = 40.17 EUR per pip
    Trade Profit / (Loss): 29 pips × 40.17 = 1, 164.93 Euros

    2. Number of NZD per pip: 175,000 × 0.0001 = 17.5
    Per Pip Value: 17.5 ÷ 1.2703 = 13.78 AUD per pip
    Trade Profit / (Loss): (17) pips × 13.78 = (-234.26) Australian Dollars

    3. Number of JPY per pip: 500,000 × 0.01 = 5,000 (Remember, Yen-based currency pairs are an exception and are displayed to only two decimal places)
    Per Pip Value: 5,000 ÷ 83.84 = 59.64 CHF per pip
    Trade Profit / (Loss): 18 pips × 59.64 = 1,073.52 Swiss Francs

    4. Number of JPY per pip: 200,000 × 0.01 = 2,000
    Per Pip Value: 2,000 ÷ 91.16 = 21.94 USD per pip
    Trade Profit / (Loss): (27) pips × 21.94 = (-592.38) U.S. Dollars

  • Forex Traders – Why Some Lose Money?

    Forex Traders – Why Some Lose Money?

    4 min read

    Forex Traders - Why Some Lose Money? 2by Gorica Gligorijevic

    Forex traders are those who use price movement in the Foreign exchange currency market to make the profit. Generally, the fact is that most forex traders lose. About 95% of forex traders lose money and giving up at the end.  

    But you would like to be among 5% of successful traders.

    First of all, Forex trading like any trading is a bunch of psychology.

    Do you know the most common traps among failing forex traders?

    Do you have what it is necessary to be a winning forex trader?

    The purpose of forex trading is to exchange one currency for another in the expectation that the price will change. Like any other trading.

    For example, you purchase 10,000 euros at the EUR/USD exchange rate of 1.2000. And one week later you exchange your 10,000 euros back into U.S. dollar at the exchange rate of 1.2500. So, the math says, you earn a profit of $500.

    The currency you bought increased in value compared to the one you sold.

    The aim of forex trading is simple:

    You want to buy a currency at one price and sell it at a higher price in order to make a profit. Or, to sell a currency at one price and buy it at a lower price.

    But, at the Forex market, the price of one currency pair can change the value several times in a few minutes.

    In periods of intense trading, within one minute, the price may change the value tens or even hundreds times.

    But you have to know something, the market is not your rival. You don’t have to conquer it. If you want to be a successful trader, you should define the trend and enjoy the trade.

    The market can disturb you.

    Especially, if you try to get too much with too small capital.

    Having the wrong mindset frequently makes the trade too aggressively. Or if you try to go against trends, you are on your way to disaster.

    There are so many reasons for the losses, including bad money management, bad timing, or an unproductive strategy. But there is a deeper reason why most forex traders lose.

    Majority of forex traders will lose despite what techniques they apply. Every forex trader knows how to trade famously, but in theory. Because knowing and doing are two very different things.

    So, why is that?

    We are not going to tell you a story about psychological reasons or fears, greed, and hope. Traders Paradise has a different approach. So, let’s see what we have here.

    As first, we have to look at how prices move. We also have to know that there is a considerable number of people who will be there, right when the price is about to change.

    This is the moment where mass losses happen.

    At the moment when buying insanity grips a market, something that will pass!

    Of course, everything passes.

    But at this very moment, when you see the other people buying! That makes you think that it is the right time to buy and the other people will buy after you.

    Every time you execute a speculative investment, you are doing so because you suppose other people will purchase after you. That push the price up. And you can sell for a profit.

    Prices only rise if more people are willing to buy, more than are willing to sell.

    Yes, we can do some fancy analysis and make forecasts about the price. But all we are really doing is making a bet that people will buy or sell. It is people that buy and sell and cause prices to move. Those people create repeating patterns, that we can trade-off of, in the markets.

    The uptrend is generated by more and more people continuing to move the price up.

    There is no other way that price can go up. Behind that, always stand forex traders’ will to pay above first established price.

    And what happens then?

    There are no more traders who are willing to buy at higher prices.

    Moreover, there are more traders willing to sell than to buy. The traders who bought near the peak are left getting the losses.

    The main problem is that a considerable number of traders are involved near the top.

    For instance, some stock has been rising for 3 years. So, as more traders find out about it they start gathering in. But there is a limited number of traders who are willing to buy it. Once the crowds have accumulated, there is no one else to buy. And the forex traders who bought earlier in the trend start to sell. That can scare the traders who bought late in the trend. So, what we have now? The domino effect starts carrying prices back down.

    The best example is Bitcoin.

    Bitcoin had been rising regularly between 2016 and 2017. But there was not a lot of interest from the traders. In the middle of 2017, traders became motivated. There was an explosion in interest, bringing a whole new batch of buyers into Bitcoin.

    Forex Traders - Why Some Lose Money?People searching “Bitcoin”. Source: Google

    This number ‘100’ on the chart above represents the peak popularity.

    So many people Googled “bitcoin”. They were searching for information. They wanted to know more about it. And what happened?

    The number of people searching for “bitcoin” matched with the price of bitcoin peaking.

    Forex Traders - Why Some Lose Money? 1image source Yahoo Finance

    A whole batch of people who had never heard of bitcoin became interested in it. They helped fuel the rally. When popularity hit its critical mass, there was no one left to buy.

    So, participation was the highest near the top.

    The smart investors made money off this buying rage, but the masses who created the buying frenzy lost a lot of money.

    You have all on the chart.

    The point is, most people get involved close to turning points. That means most people lose. They catalyze for turning the market the other way.

    The mass insanity causes that limit to be hit.

    There will always be plenty of people who don’t want to get included. Such believe that the price is already too costly. But the market keeps going higher and so a few joins in and buy.

    The market won’t hit a highest or reverse by itself.

    Forex traders have to make the extreme situation and market will explode. The growth and failure cycles will never end. Great uptrends and downtrends are systemic. You will never find one without the other.

    Prosperous Forex traders always find something that works and stick to it. They never let others drag them away from their strategy. Unsuccessful traders here go wrong and that’s why the most of them lose money. For example, traders hear that some asset is doing very good. But after a few days, the same traders can hear that asset is doing very bad. And that news is spread by media, forums, experts.

    So, what to do?

    To bet against everyone and be wrong?

    We believe what we hear most often.

    It will cost you if you are not part of the masses. You can’t trade with others. You have to walk carefully and alone. Most people will not accept your view. If you trade contrary to the crowd, and you are right, people will hate you.
    Why?

    Because you made money while they lost everything. Sound absurd, we know that.

    But if you want to be a winning trader, you must stay strong through major market turns when the majority lose.
    People prefer submissive company and they will not love you.

    When the outlook is most suspicious, because everyone is losing money in the market and you see how bad the markets are, there is a strong motive to sell and follow the crowd.

    Once again, the crowd makes a poor decision, which can’t help doing, and the market turns the other way.

    Forex traders lose by acting in mass at the same time.

    The masses can’t avoid it. It is an energy that exhausts the trend and reverses it.

    Even if a long-term chart of the stock market shows the price of stocks rising, you have to know that most of the people are with empty wallets because they were buying near peaks and selling near bottoms.

    Social influence

    Behind the reason for losing money while taking part in the market, lays social influence too.

    Victorious traders find something that works.

    So, they stick to it, and not let others remove them away from their adopted strategy. On the other side, we have unsuccessful traders. They go wrong, they stay in the crowd, and the crowd loses money.

    Such traders can’t jerk themselves away from the crowd when it is time to do so.

    When you hear from the media is how good this asset is doing, or how bad that asset is doing, it’s really hard to take an opposite view. We want to believe what we hear most often.

    If you make a bet against everyone else and you are wrong, you will experience regret missing out while others profit.

    Do you think this social price for not being among others, sounds funny?

    You need to walk carefully because most people will not support your view. Assume you have a contrarian view to the masses, and you are right, ha?

    Your friends, not only the opponents, may dislike you because you made money while they lost a lot. Is it still funny?

    Gaining traders are often “tortured” during major market turns when the bulk lose.

    Just recall one name: Warren Buffett. Who like him? But there are a lot of people admiring him.

    We will share some of his genius thoughts:

    * Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
    * The best thing I did was to choose the right heroes.
    * Price is what you pay. Value is what you get.
    * We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
    * A public-opinion poll is no substitute for thought.

    Why all these matters?

    Everyone wants to trade their own way. But don’t end up being with the crowd that loses money. Your social mood, whether it be optimism, greed, fear, is fueled by the same aspect accepted in society.

    There is nothing wrong to be part of the crowd.

    But…

    Yes, it is quite easy to say “I will follow the crowd and get out before them.” But it is pretty difficult because everyone in the crowd believes the same.

    Assume you understand bid and ask prices. Right?

    When people start to sell there are only so many shares are each price level.

    And if you want to get out you need to sell to a lower bid price, then a lower, and a lower, and lower. Not everyone can get out at a good price.

    There is only a few quickest who get out before the real loss is done.
    Be one of them.

    risk disclosure

  • Stock Market Corrections – All You Need to Know

    Stock Market Corrections – All You Need to Know

    Stock Market Corrections - All You Need to Know 2What is a stock market correction and how to deal with it?

    By Guy Avtalyon

    A stock market corrections are regularly interpreted as a drop in stock prices of 10% or higher from their most recent peak. If prices drop by 20% or more, we call it a bear market.

    Prices bounce, excitement hides logic, signals arrive and disappear. The reasons for treating equities as a poor barometer for the economy are many. Right now, that might be for the best. Stock market corrections occur, normal, about every 8 to 12 months, and last about 54 days.

    A 5% to 10% correction is vital for this stock market, warns Jefferies strategist.

    What happens when the market declines, why it does so, and how long a drop may last?

    For example, news that the S&P 500 has fallen more than 3% in one day can cause uncertainty even for the most experienced investor. Such falls can be scary because it’s impossible to predict how difficult or long-lasting losses will be. And even if you believe the market will finally rebound, it’s hard to follow the value of your investments shorten in front of your eyes.

    But, a stock market drop doesn’t mean it’s time to panic.

    Since 1926, there have been 20 stock market corrections during bull markets, meaning 20 times the market declined 10% but did not subsequently fall into the bear market territory.

    You have to know, the stock market’s condition is always rising and falling. Occasionally, the market will experience short-term gains, but after will come drops. And again, and again, the same scenario. The gains in value are usually due to mass psychology because investors are driven by the expectation of recognized gains. When more investors buy into the trend, the price increases. Once the price is high enough, buying slows, and some investors begin to sell to lock in their gains. This decrease in price, following a short-term increase, is a market correction.

    Stock market corrections are followed by…

    Market corrections are usually followed once an increase in market prices has come and gone. A correction in a stock’s price following an upswing is characteristic of a stock’s true market value. It may not indicate a loss in value because it shows a market’s return to balance.

    Market corrections are a significant part of technical analysis. Many investors will use indicators to try to determine when the correction will begin and end in order to buy when prices are lower.

    Why the stock market crashes?

    The market drives for many reasons. It can be because the economy is weakening or because of investors’ perceptions and emotions. The fear of loss, for example, is one of those reasons.

    The market dips because investors are more motivated to sell than to buy. That’s a simple law of supply and demand. However, it doesn’t explain why investors are selling.

    Investors are looking in the future. They try to determine if their investments will increase in value. Investors watch for signs, news, rumors, and all about how the market will move.

    While the reasons for a one-day drop may change, a longer-term decline is usually caused by one or several of the other reasons:

    A slowing or reducing economy

    This is a “fundamental” reason for the market to sink. If the economy is slowing or entering a recession, or investors are expecting it to slow, companies will earn less. Hence, investors bid down their stocks.

    Fear

    In the stock market, the opposite of greed is fear. If investors think the market is going to drop, they’ll stop buying stocks, and sellers will going lower with their prices to find buyers.

    The absence of “animal spirits”

    This an old maxim. It refers to the waves of investor emotion and risk-taking through a bull market. As they see the chance for profits, people enter the market, pushing stock prices up. When this animal spirit dries up? When the fear is on the scene.

    Outside and big events

    This mixed category includes everything that might frighten the market: wars, attacks, oil-supply shocks and other events that are not completely economic.

    And what happens today? Are we approaching a point where we will see how much gravy is left in this stock market?

    Are the stock market corrections really vital for today’s stock market?

    There are several signs of a stock market correction. Last year was the most volatile year in the stock market since the recession. The volatility can increase stock market crises. But, volatility is just one reason the biggest hedge fund managers and respected economists are predicting a 2019 crash.

    Another reason is the rising interest rates.

    Increasing interest rates is a strategy to control the rise of inflation. How does it work? Increasing the cost of credit and making saving more attractive hits a balance between spending and saving.

    Though, this approach can be dangerous. Lower buyer spending has a negative influence on the revenue of the businesses.

    Decreasing revenue causes slips spending across both the consumer and business aspects. At the same time, higher interest rates make it harder for financially weak companies to meet their debt obligations.

     

    A wild flow can lead to economic depreciation, dropping stock prices, and stock market crashes. It’s not surprising that interest rate hikes have preceded over 10 economic recessions in the past 40 years.

    Experts predictions

    Rising volatility and interest rates are affecting investors and economists to warn of an approaching stock market crash.

    According to hedge fund manager Paul Tudor Jones, “We have the strongest economy in 40 years, at full employment. The mood is euphoric. But it is unsustainable and comes with costs such as bubbles in stocks and credit.”

    Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners has forecast a 40% retracement, while economist Ted Bauman believes the market could fall by 70%. Finally, the CIA’s Financial Threat and Asymmetric Warfare Advisor Jim Rickards has claimed that a 70% drop is the best-case scenario.

    How traders can take advantage of stock market corrections

    Honestly, along with great volatility can come great rewards. The right financial tools give traders the chance to profit no matter if markets are rising or falling.

    Advanced traders can switch any potential market crash into a profit. They know how to hedge their existing investments until the market turns. In such periods they implement short trades. Despite, the volatile markets can produce higher trading risks. So proper risk management and volatility protection are essential.

    How to deal with a stock market corrections

    Most traders lose money when trying to move their money around to join the ups and avoid the downs.

    Most people lack the discipline to stick to a winning investing playbook in correcting markets. Also, they tend to transact at the wrong times causing even bigger losses

    In the past 5 years, the Dow Jones Industrial Average has almost doubled without any important pullback. For each of those years, a notable number of analysts have called for a correction or even a recession. These forecasts pushed investors to pull out of the market too early and lose the important gains.

    If you are going to invest in the market, it is best to understand that stock market corrections are going to occur. Often, it is best to ride out your mix of investments that have more potential for less risk.

    Resist the urge to trade and profit from them. Remember, never catch a falling knife.

  • Working from Home – 35 Ways to make money online

    Working from Home – 35 Ways to make money online

     

     

    35 Ways to make money online

    by Guy Avtalyon 

    If you prefer working from home, this article is for you.

    Making money from home? Make money online! Why not?
    It is one of the work-from-home jobs.

    Are you sure you want to go to the office every single day to the rest of your lives?

    Well, we don’t think so.

    We know that working from home and make money online, can be the best for some people.

    No matter what you call it.

    Remote working. Telecommuting. Working from home.

    It’s extremely popular. And it gives you the opportunity to sit on your porch or in bed and work.

    The people working from home are not what you see on job boards or in-stock art pictures.

    When people think about working from home, many imagine sleeping in late, lounging around in their pajamas and have long slowly lunches.
    Contrary! You need to realize that even though working from home offers a great amount of flexibility, it is still a professional job and it needs to be treated as such.
    Some wake up, get dressed, sit in front of their computers, and start to work.

    What is one of the important advantages of working from home?

    Setting office hours is one of them, having dedicated office space, avoiding homebound distractions, and actually dressing as if you were going to an office.
    That help keep your mindset sharp and focused.

    We can vouch for that.

    But it’s not for everyone, and some do it more successfully than others.
    If you are disciplined with your time, and you don’t need a relay with co-workers throughout the day, and you are independent in making decisions, and good organized, this is the right work for you.
    However, to be effective in work at home, you have to have excellent critical thinking, organizational and communication skills, along with being able to block out distractions. Only in this way, you will make money online
    The biggest benefits of working from home are its flexibility, saving money on transportation, dry cleaning costs, lunches were eaten out, childcare costs, no boss looming over your shoulder, no co-workers to interrupt you, and no dress code.
    Sound pretty good, don’t you think?

    You must know that working from home is more productive.

    But, it’s important to let friends and family know that although you’re working from home, you’re still working.
    Traders Paradise has prepared 35 suggestions, 35 ways on how you can make money online and working from home.
    We are sure you will find something that suits you.
    How to successfully work from home:

    1. Get organized – Don’t work too much or too little, get organization systems or apps, make schedules and to-do lists.
    2. Have a comfortable workspace – You should ensure that your home office space will imitate a true work environment
    3. Plan your day – This will help you minimize your distractions and maximize your productivity.
    4. Be computer savvy – This can definitely make your work easier but also can give you the opportunity to gain more profitable jobs. (You can learn more about almost anything at lynda.com)

    The ways to make money online are numerous. Our goal is to present you as many profitable deals as possible for working from home.
    You may not become rich, but certainly, this way of working will provide you additional and not a small income.
    But you know what? Those of us who have worked from home for years wouldn’t dream of going back to a corporate office. Ever. At any point!

    So, let’s start. How can you start working from home and earn decent money?

    We are giving you 35 genius ways on how to make money online legitimately and from home.
    It won’t always be easy, and you have to work very hard, you will make mistakes and failures along all that path.
    But keep in mind you have this opportunity only because the internet has opened up so many possibilities to people regardless of age, location, or background to build a sustainable, online business or side project that can make extra money online every single month.

    And as we said, we have experienced this in first-hand. For the last 6 or 7 years, we launched several online businesses. It was so easy to launch, but the other things were pretty tricky.

    We mean, how to make money online and start working from home.

    1. Build a niche blog (or website)

    Working from Home - 35 Ways to make money online

    Working from home? Build a blog!

    This is very popular today.
    Actually, there are so many bloggers on the internet. But not all are successful. It’s processing. You have to find a niche you’re interested in and you have to build a decent audience around it.
    Starting a blog and using affiliate marketing to generate income is an incredible way to make money online. Some made 6-digits per year with their first blog.
    So, it’s possible. And we know from first-hand that launching a blog can be a large scale project.

    Before starting your blog you have several things to consider:

    • Find what to blog about.
    • Pick a blogging platform.
    • Pick a host.
    • Pick a domain name.
    • Design your blog
    • Start writing your blog

    Why starting a blog is a good idea for working from home?

    • You can get more showing for your business. A blog gives anyone the ability to reach a large number of people at very little cost.
    • Because you can become a published author. Nowadays publishers rather work with authors who have an online presence. They have a simple reason: it’s a lot easier to sell books if people already know the author. A blog is one of the most effective places to start.
    • Because you can make money while working from home. That is hard work, but it’s low risk, low overhead and low barrier to entry.

    If you want and know how to write, tell your story, dare others and build a community. A blog is a great place to do that.

    And you can start blog practically for free.

    However, some free services limit monetization unless you upgrade to a higher level and it costs. The companies that offer the services want to make money as you want.
    If you’re only using their free service, they’re not making money from you. They don’t have a lot of impulses to keep you happy therefore you’ll have little to no support sometimes.
    But also, it means you’ll be harassed with offers for their paid products.
    Most free services have just basic features. Free blogging services give your blog’s limitations to expanding. If you want to transfer to better service it can cost you.
    If you do it yourself it takes a lot of time and know-how.
    To hire someone may cost you hundreds of dollars. But don’t worry. That happens to bloggers all the time.

    Start a blog for free.

    As time goes, you will find cool features that will cost you money. To keep yourself accountable it is necessary to pay just a little bit for it.

    But let’s see our several steps for a successful blog:

    Find what to blog about
    If you are part of the business your blog should be related to the products you promote.
    If you are an individual, you have more flexibility:
    Blog about something you enjoy. But take care, you have to be excited about your topic. Also, you have to identify who wants to read that and why would readers be interested? The goal of any blog is to become the go-to resource for its niche.
    A blog requires a lot of content to get going and remain interesting that’s why you have to provide a good topic if you want discussion.
    And trust us, you will want that.

    Pick a niche in which you can establish yourself as an authority.

    Yes, you won’t be the first person to blog about the topic you choose. It’s guaranteed someone else has thought of it before you.
    Come up with your unique angle!
    And you will have a chance to make your blog better than others.
    A common beginner mistake is thinking you have to be sure of a topic to start.
    Switch topics or settle into something as you go!
    Start anyway!

    Pick a blogging platform

    There are many blogging platforms to choose from. WordPress, Blogger, Squarespace, Wix, and Weebly are a few.
    All have pros and cons.
    WordPress is the most popular, and for good reason. It’s flexible, functional and has a large community of users who share tools and ideas.
    If you pick WordPress, you have two options: hosted or self – hosted.
    Hosted WordPress blogs, also called WordPress.com blogs, are free but limit your income opportunity.
    Self – hosted WordPress blogs, also called WordPress.org blogs, cost a little money but do not limit your income opportunity.
    WordPress is simply software. But WordPress by itself, won’t make your blog live on the internet.

    Pick a host

    In order for your blog to be online, and accessible to anyone, you need server space provided from a hosting company or host.
    Click to some button GET STARTED NOW or similar (it depends from host to host) and select your plan.
    Choose the plan you’d like to start with by clicking one of the certain buttons.
    We suggest going with Plus or Prime because you get more unlimited features.
    Domain privacy comes included with Prime. If you choose Plus, you’ll have the option to add it later for a small sum per month.

    Pick a domain name

    A domain is a web address. For example, https://traders-paradise.com/ is ours.
    If you don’t have ideas, use your or someone’s other name, or something short, but catchy and interesting.
    Your host will guide you through the process, don’t worry.
    And you can start working on your WordPress site right away.

    Design and start use your blog! Your blog is ready to go!

    After launching your blog or website, you have to figure out which products and companies you can partner with as an affiliate to help you in related, helpful product for your future readers.
    Affiliate marketing is selling someone else’s product by referring customers to their online store.
    Your task is to create content on your blog so worthy to the people looking for a specified product. And then send them to where they can actually buy it. So, you’ll receive a prearranged percentage of each sale.

    2. Start an e-commerce business

    working from home

    Start an e-commerce business

    Starting an e-commerce business is not easy work. It demands many steps and decisions that need to come together at the right time.
    To help, we’ve put together a comprehensive representation for getting started.
    The first step is to know what products you want to sell (often the most challenging part of the online business). How you can find product opportunities, explore the best product ideas, and where to look at trending products to consider.
    E-commerce is a booming business. Running an online store can get complicated. Thus, we are going to show you the easiest way.

    The three things you need to start an online store are:

    • A domain name idea (this will be the name of your online store)
    • A web hosting account (this is where your website lives on the internet)
    • Your attention for 30 minutes.

    Yeah, it is really that simple.
    To set up your store, you need to have a domain name, web hosting, and an SSL certificate.
    And you have to choose the right platform for your online store. The biggest mistake most users make is not choosing the right platform.

    There are two popular eCommerce platforms that we recommend: Shopify or WordPress + WooCommerce.

    Shopify is a fully hosted eCommerce solution. It’s a without-problem solution, you just log in and start selling. The catch to Shopify is that it gets quite expensive. Your payment options are limited unless you pay additional fees.
    That’s why most users choose WordPress + WooCommerce. It is more flexible in offers. It does require some setup, but it’s worth doing it for the long run. WooCommerce is the world’s largest eCommerce platform.
    But building an e-commerce business is more than choosing a brand name, writing product listings, and starting to sell products online. If you are not driving enough traffic to your site even the best business ideas can flop.
    We put together information here to set up your e-commerce store, protect yourself legally, start building your store and get your finances.

    Choose your niche

    Choosing your niche is the most important step. As first you have to identify successful companies working in this space.
    Make sure that the area is competitive. If there is no competition, there is no market.
    But never pick a too overfull niche.
    If you don’t like competition, go further on what you want to do. The more specific you are, the less competition to face. Niche-ing down may give you a lot of “shoulder” niches, related to what you do, but not identical. You can work together with business owners in those niches to promote, become an affiliate, and grow your customer base.

    Research business models

    Before you decide on what to sell online, you need to understand the different business models.
    Maybe the best business model is a single product category that you supplement with affiliate marketing. You can control the marketing and branding on a focused product and focus the rest of your energy on driving sales by monetizing traffic.

    How will you source products and inventory management?

    Dropshipping may be a smart choice if you want to turn a profit without touching your product. If you like to have your own warehouse full of goodies, you have to work with a wholesaling or warehousing model. There are subscriptions too, where you have to curate a set of products or a single product to be delivered at regular intervals to your customers.
    These decisions are not rocket science, but they are very important for your business structure.

    Establish your brand

    A successful business means that your brand is connected with your persona. Identifying your persona makes building an e-commerce brand easier.
    Branding is business mixed with emotion and engagement and expectation. This is mission and customer participation mixed into one.
    It encompasses your web presence, communications, and products. It’s incorporated into your product details, customer emails, and shopping cart checkout page.
    Branding isn’t a logo. It’s not your name. It isn’t some meaningless press release out to the world. It’s more than a strategy.
    Branding is the most powerful currency a company can have, your greatest competitive advantage. People purchase products because of a story, an emotional connection they feel with a brand.
    As e-commerce owners, building a powerful and engaging online brand is your most important work.

    Marketing your products online

    The first step is to create an email list.
    Building an email list gives you leads to work with, making the sales process much easier.
    Add an opt-in free of charge on your website, get subscribers over social networks.
    Giveaway is a good marketing tactic to get traffic and subscribers quickly. Giveaways may bring you the benefit of increasing your brand presence and product visibility.

    3. Sell your services instead of products

    Working from Home - 35 Ways to make money online

    Sell your service if you like working from home

    We have to make one thing clear.
    The world’s oldest profession is not prostitution. The oldest profession is selling. ”Ladies of the evening” made a deal before services were divided.
    Nothing happens in business until someone sells something.
    We can recognize two types of products most often sold: tangible and intangible. When we are speaking about selling services we are speaking about intangible products.
    This kind of products your customer can’t see, touch or taste.
    For example, insurance and cleaning services. Health, auto, life or homeowners insurance demand payment for something you hope will never happen.
    The tangible item you can hold in your hand and have as material proof is the policy itself. That represents the unseen service.
    For example, the cleaning service: there is from time to time paper that represents the service provided by the cleaning service. But, after the completion of the cleaning service, there is no tangible product left behind.
    Skills like writing, designing, web development, marketing, project management are intangible products and reservoir or base to start freelancing.
    There’s plenty of work and clients to be found if you know where to look. On the very beginning, you must know if there is enough demand for your skills.

    Start by searching freelancer job boards on UpWork, Freelancer, Guru, AirTasker or some other freelance job boards.

    There you can find well-paid, best freelance jobs, or to just to get freelance work on the side that can help pay the bills.
    When you are selling your skills you are selling your own confidence in your abilities.
    If you find that is impossible to pick right clients, that every decent job is already occupied, think about this:
    ”The human being is a wanting animal and rarely reaches a state of complete satisfaction except for a short time. As one desire is satisfied, another pops up to take its place. When this is satisfied, still another comes into the foreground and so on. It is a characteristic of human beings throughout their whole lives that they are practically always desiring something.” said Abraham H. Maslow in his book Motivation and Personality.
    This means that if you are patient enough and if you are persistently seeking, you would find the right buyer of your services.

    Also, you need to know what customers, buyers or clients expect if you want to sell your services.

    Security – Monetary gain, freedom from financial worry.
    Self-Preservation – Safety and health-for-self and family.
    Convenience – Comfort, more desirable use of time.
    Avoidance of Worry – Ease of mind, confidence.
    Recognition From Others – Social status, respectability, the wish to be admired.
    Self-Improvement – Spiritual development, hunger for knowledge, intellectual stimulation.
    If your product or service can provide one or more of the above for a customer, there are chances you will make a sale.

    Here’s a short list to get you started selling your service:

    What your goal is: Do you want extra income or are you looking to go full-time freelance? It’s important to know your goals from the start.
    Find your niche: What niche do your skills, values, and interests intersect? Do you have 10 years of experience or long-standing business relationships? Moreover, find out what makes your unique value.
    Target customers: Whom you want as your client? Search companies and make your list. You have to align your portfolio and cold emails with the companies you found.
    Set your prices, create a brief presentation, cold email.
    Remember to always have a solid contract in place, this can save you big time down the road.
    Service businesses must convince the customer that they can perform the service to the customer’s satisfaction better than other similar services.
    Assume you have a yard decorating as a business. If someone has a one-time need for your service he or she may only be interested in the lowest cost. Or might do it on their own. However, some people are very serious about their yard and how it looks and they may be more particular in who they hire to take care of it.
    You are going to have to be prepared to convince your customers, not only that you can do the job, but you are going to do it to their expectations or better for the same or less money than the competition.

    Your service has a certain value in the minds of your customers.

    If your price is higher than the competition then you need to be able to show the customer that the additional money is justified. Hence, if you are charging for services that are not seen as a benefit by the customer then drop those services from your bid or explain to the customer the benefits of the extra service because they may not have realized they need the extra services.
    But first, the customer must call or contact you.
    How does that happen?
    Why should they call you instead of your competition?
    The customers want to feel that are dealing with a reputable company. How do they know you are reputable?
    Moreover, one of the simplest ways is they heard of you from others.

    A referral from a satisfied customer is the most powerful advertising you can get.

    One important note, always carries business cards with you, put it in all the bills you pay, everyone within walking distance of your house or apartment should have your business card.
    Everyone likes to support their neighbors.
    Go door to door, introduce yourself and give out your business card.
    Customers want to deal with a reputable business. Just because you walk the neighborhood with your business card doesn’t’ make you any less reputable than Apple.

    4. Trade or invest from home

    working from home for earning

    Working from home as a trader

    Trade from home is a totally online job.
    And it can provide you a quite nice income.
    Once upon a time, people relied on the services of a stockbroker, who would make buy and sell orders on the customer’s behalf.
    Today, individuals are able to execute buy and sell orders themselves in a fraction of a second using computerized trading services.
    But, reading online articles doesn’t make you qualified to trade from home.
    Reading the classics of investment literature could be helpful. But the best way is to set aside six months to practice trading with real-world data before investing your money.
    You can use some demo account and practice. Means you cannot withdraw any profit.
    After making profits on a paper account, create a trading fund and open a separate bank account for it.
    Do what you can to establish a fund that is separate from savings.

    Write down a trading strategy.

    You have many trading strategies available on the market. Just choose your own investment strategies. But you should include the parameters on how you choose stocks or currencies, when to purchase them and when to sell.
    Create a spreadsheet that tracks your investments, establishing parameters for the dates of purchase and sale and the costs involved.
    Buy and sell according to your strategies, and be disciplined with your budget. There will be ups and downs, but don’t deviate from your parameters.
    A lack of discipline leads to bigger losses and failure.

    If you chose to trade from home you will need the broker.

    When you’re looking for an online broker, consider the costs of each service the brokerage provides and the level of support you will need from qualified brokers.

    Choose your brokerage partner with open eyes!

    Before deciding to buy or sell any stock, you should carefully research the company, its leadership, and its competition.
    You don’t need a large sum of money to start.
    If you prefer to be a do-it-yourself trader, you can make use of discount online broker services that allow you to buy and sell not only stocks but also options, mutual funds, exchange-traded funds, fixed-income funds, bonds, certificates of deposit, retirement accounts and more.
    You will make the final decision on each investment and whether or not to buy or sell.
    Make intelligent decisions about what you can afford to invest. Consider investing a portion of your money in an electronically traded index fund, which holds many stocks (like S&P500).

    There are no magical advantages, secrets that can make you more successful.

    It is a misconception of beginners in trading or investing.
    Remember several things: Professional trader don’t make money or have a job unless they are profitable.
    They realize that trading is NOT a fast and easy way to get rich.
    You must have a strategic trading plan, proper risk management, and simple strategies. Just to protect your investment and reduce risk whenever possible.
    Make a solid 2% gain than risk thousands of dollars for a possible 5% gain with considerably higher risk unless you are the gambler.
    Long-term thinking on every trade and realizing that keeping money is sometimes more important than making huge gains.
    Some traders don’t want to take the time to learn the skill of technical analysis indicators.
    If you commit time to these indicators and understanding how they work (and don’t work) we can promise you will start to trade more consistently.
    Here you can find more about how to TRADE

    5. Launch and grow a startup

    Working from Home - 35 Ways to make money online

    Launch startup

    This startup can be a very exciting experience. But you know what, there’s a big difference between launching a startup and being able to grow it into a long-term success.

    If anyone can build a company on velvet, everyone would do it, don’t you think?

    The first mistake is that founders tend to over zeal their efforts to monetize their products and services. Instead of building a strong base from which the startup can turn into a realistic company.
    Your main focus should be on building a customer or user base or an audience of potential customers. If the service or product that the startup offers is also good, success will easily follow come.
    Running a startup have a lot of challenges, this is one of them.
    So how exactly you launch and grow a startup?

    Find your “sweet spot”!

    It’s easy to say but what exactly it is?
    Align your wishes with your opportunities.
    To avoid mistakes make your list of knowledge areas/special skills on the one side and passions on the other. Then try to connect each of them.
    Your knowledge and skills should hybridize with your genuine passion. It means that you have a passion for some job to work and, at the same time, you have the knowledge or skills which job requires.
    The truth is that you need to love what you do and be damn good at it as well.

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

    Discover your content

    That makes your unique approach to the specific niche that you’re going to business in different from everyone else’s. Find a specific area where you recognize opportunity and kind of gap in products or services.
    You don’t want to enter an oversaturated market. You want to try and strike directly where there’s minimal competition.
    In this way, you can gain an initiator advantage and take your position on the market and make some impact from the very start.
    The best ways to discover your content is to create a mission plan, research customer needs, analyze trends, ask feedback from customers, and to always use analytics.

    Take your time and don’t force the process.

    Build your base. define what your target audience is. Then you will have some ideas on what’s the best way to market to them.
    In online marketing, it’s important to build up a large subscriber base or to be present on as many social media followers as possible.
    The audience is the key ingredient to growth in both the short-term and long-term. When you build your base to a given level, you’ll have the opportunity to grow your income.

    You need to keep pushing to grow your subscriber/follower rate all the time.

    Visitors should become subscribers because they’ll give you high conversion rates. Email subscribers are more valuable than social media followers since you can reach out to them whenever you like.
    Remember, your message on your business Facebook page might only reach 5% of your “fans”, while an email will be delivered directly to the email inbox of your newsletter subscriber.

    The best way to grow your audience and newsletter list is to leverage social media and to focus on SEO.

    But remember: Even if you attract a high amount of web traffic, it’ll all be for nothing if you can’t get the visitors to opt-in to your content.
    When you build up your audience on your main social media channel or blogging platform, it’s time to expand to other channels.

    You can do this by expanding into different media channels.

    This means not only having a successful landing page.
    You have to expand into every one of the main social media platforms, such as Facebook, Instagram, LinkedIn, and Twitter. In this way, you will put your brand in front of more eyes, and your audience will have multiple options through which they can engage with you.

    The final step is monetization of your audience.

    If you’ve followed previous 5 steps, you found what your sweet spot is, found your content, built your base and subscribers, and are on multiple platforms.
    Now, it’s time to harvest the prize.
    The key way to monetize your audience is to see what works and what doesn’t work.
    You already have a decent subscriber count, so begin to analyze the quantitative and qualitative data. And make adjustments when needed and see where there are opportunities to begin converting your audience into being paid customers.
    Be willing to adapt and to follow the path of interest that the audience analytics dictates.

    It’s important to make many smaller bets and tests in the beginning.

    This could be different products or testing the appetite for your products with different target groups. It will take a few repetitions before you find what the best is.
    Testing your business expectations should be done without investing too much time and money. When you found a winning product, double the original bid on it and focus on the winner.
    That’s the whole truth and wisdom!
    This world is content obsessed and the best way to make a success is to follow these 7 steps.
    Even then, there are no guarantees.
    Maybe you can find your own way. Try here!

     

     

     

    6. Take part in surveys

    Working from Home - 35 Ways to make money online

    Great opportunity for working from home

    If you find an article anywhere online about making money from home, you will find at least one link to a survey site.
    With only a couple of hours of work per day, you can earn at least $80 a week.
    We have explored whether this is possible.
    It is possible to make $80 per week with all-day answering of surveys without getting kicked out or rejected once.
    Anyone who has ever spent any time taking surveys knows, you always get rejected at least twice a day.
    The whole purpose of this challenge is to provide a replicable plan for anyone to follow that wants to make some extra money on the side.
    But how easy is it really to make money this way?
    Most firms outsource their surveys to a professional survey company. These survey companies compile a database of people and then contact suitable respondents for each survey, offering cash as an incentive.

    Therefore, some companies rather hire individuals for this job. Just type “make money from surveys” into Google and almost 30 million results are returned.

    If you want to help shape products in their early stages, joining an online focus group or answering survey questions is a great way to make extra money online.
    Some people made a few hundred from various survey sites, so we are in no way saying that they are scams.
    But it’s just not as easy as people would have you believe, it’s also not very fun either. You spend most of your time answering demographic questions to rule you in or out of the survey.
    And sometimes you will be accepted, other times you won’t.

    How much can you actually make?

    That depends on how many surveys you are willing to take but you can make enough to pay one of your monthly bills. Very possible and doable. You just need to think about a couple of things.
    Every survey will not equate to a lot of money, volume, as in doing a lot to see a lot, patience.
    Now after this small case study, you found the ability to pay off one of your monthly bills from doing surveys.
    This method is only recommended to people who actually do/like surveys.
    Now think of your current monthly bills. Insurance, home, groceries, phone, subscriptions.

    All you have to do is

    Register/Confirm email
    Do one survey a day
    Refer one person a day
    Refer a friend, someone who actually believes what you tell them.

    Other methods to choose from:

    Invite a Facebook Friend
    Share to a Facebook Group
    Invite Twitter Friends
    DM Twitter Lists
    Share to IG
    Share via Pinterest
    The survey can be done at work, at home, even at the gym but it is recommended doing it when you can set aside free time to complete.
    After a month look at your total earnings.
    If you have done at least 1 survey and 1 referral a day successful, you may like your results when adding each website up.
    To make it even better, a lot of the websites randomly put you into sweepstakes and free product samples. Imagine making a couple hundred a month from only doing 1 hour worth of work with free samples sent to your door.
    A lot of people have been saving money on laundry detergent for a while now.
    You’ll make money and save money at the same time.

    7. Start Online Coaching

    Ways to make money online 9

    Be a coach if you prefer working from home. 

    If you can present yourself as an expert, start selling your knowledge and advice in an area you specialize in as a coach or consultant.  
    It is a great way to make money online.
    Instead of giving your client ongoing deliverables (like when you’re a freelancer), you’re teaching them to be better, faster, wiser than the competition.

    In this way, your skills become the product you’re selling.

    If you know how to package your experience and coaching skills into an easily learning program, you have the potential to rise this business model.
    The main task is to find people who might want your coaching services.
    You can use online tools and communities that make it easy to find clients and teach, on just about any topic area you can think of.
    Community-driven platforms provide you with a network of potential clients to interact with, as well as an integrated payment solution.
    Many online coaches make hundreds or even thousands for their packages.

    Coaching is one of the quickest ways you can get set up and start generating income.

    All you really need is an account with one of the online coaching communities and expertise.

    8. Create online courses

    Working from Home - 35 Ways to make money online

    Sell your course

    If you’re already an expert in some field, either through your current job, freelance business, or coaching, you can package that knowledge into a course and sell it. Income will come for many years. The building, launching, and marketing an online course does take a considerable amount of effort. But their earning potential is tremendous.

    Courses and other knowledge products like e-books are what’s called passive income.

    That means that with just a bit of regular maintenance and marketing you’ll be able to make money from them for months and years.
    Do you know the story about Bryan Harris of Videofruit, who built and launched an online course in just 10 days that made him $220,750? That’s an example of how big this job can be.
    He followed a four-step process for his course:
    Step 1: Explore and discover the best topic for his course based on the most popular posts from his blog.
    Step 2: Validate that people would actually pay for his course by surveying readers and securing pre-orders.
    Step 3: Quickly write, record, and edit the course content. Because he already knew there was demand, it made sense to create the content as fast as possible.
    Step 4: Launch the course to his email list. Your own audience, no matter how small, is the best place to start.
    Start by taking other courses, it can give you an idea of how a course should look.

    How should you place your course? Via email, video, in-person chats?

    The golden course combination is when you find the desired niche that aligns with your skills and experiences. Use Google Trends and Google’s Keyword Planner to search volume for keywords related to your course content.
    If you’re already creating content for a blog, coaching service you can test demand this way for free.
    Look for respected experts who are creating similar content. Find how their businesses operate and you can implement that. Find influencers and make them affiliates for your own course. They’ll be motivated to share your content with their own audiences.

    You need to figure out how people will take it.

    That’s why it is better to choose to host your courses from your own websites.
    This way, you will bring customers back to your site on a daily basis. Or you can choose to host and sell your online course on some site.
    The best fact about using a course to make money online is that you can sell it as long as you like.
    Become the member of communities on Facebook, LinkedIn, or Reddit that might benefit from your content.
    Add your content as the guest on other blogs and sites.

    9. Test websites

    Ways to make money online 11

    If you like working from home, test websites

    Ever visit a website and you thought about how bad or how great it was? You can get paid to share your thoughts.

    Just open a website, click around, and get paid.

    New or updated website owners will pay you to test their sites.
    As we could see, with User Testing you can earn almost $30 for an hour. How does it work?
    You get paid $10 via PayPal for every 20-minute video you complete.
    UserTesting pays you to visit websites or apps, complete a set of tasks, and record your thoughts.
    While you’re visiting a website your screen will be recorded as well as your voice.
    Their clients include Apple, Microsoft, Adobe, and other Fortune 500 companies.  
    Would you like a few bucks to share your thoughts? This is the opportunity.

    10. Launch a YouTube channel

    Ways to make money online 12

    make extra money working from home

    If you’re able to hit their new minimum bar of 1,000 subscribers and 4,000 hours of view time in the past 12 months, it’s an incredible place to make extra money online. Instead of making money through subscriptions,
    YouTube channels are based on a traditional advertising system. The more viewers you get, the more money you make. After you’re approved for the YouTube Partner Program you can start including ads on your videos.
    For every 1,000 views, you will make approx $2-$4.

    Building a YouTube channel is a lot like starting a blog or website.

    The first step is to choose what kind of videos you’re going to create.
    Successful YouTube channels are separated into two categories:
    Educational content: People like the quickest way to learn something new. That’s why YouTube searches including the phrase “How to” are growing 70% year over year.
    Entertainment content: Web series, product reviews, vlogs, comedy sketches, you can entertain people through your YouTube channel in so many ways.
    As first, you need to set up and build your YouTube channel. If you already have a Google account for Gmail or Google Drive, then you can use that to log-in to YouTube and start setting up your channel.
    Choose your username. If you’re using an existing Google account you’ll have to edit your username in Google+.
    And start regularly putting out content.

    But to start seeing real money from YouTube you need to market your videos elsewhere.

    Use social networks, Twitter or/and Facebook for that. Distribute videos anywhere. Interact with comments and build a community so people will share it.
    When you hit the 1,000 subscriber/4,000 hour threshold, It’s time to start monetizing your videos by selecting “Monetize with ads” under the Monetization tab of your channel.
    It can take a while to build up a decent following for your YouTube channel but don’t give up.

    11. Download and install apps

    Ways to make money online 13

    Install apps if you like working from home

    A lot of companies, including Google, pay you for installing their apps.
    Moreover, you get paid for each month the apps are installed on your phone.
    Some of these sites offer you to answer a few questions then launch the app on your device, and you’ll earn several dollars instantly.
    Keep the app on your phone to earn money each month and help companies understand what people are buying online.

    Some mobile app rewards you for using your mobile device. You can earn up to $50 a year.

    If you install some app you’ll be eligible to win prizes each week. You get to play an instant rewards game by participating in market research.
    This is a very interesting opportunity to increase your income.

    12. Share your views

    Ways to make money online 14

    Working from home: write reviews and share your views

    Share your honest opinions for everyday services and products you use with focus group companies.
    These organizations can improve their products on your feedback, and you get to make $50, $100, or more.
    Companies need your opinion to develop better products, which is why they are willing to pay you for that. You can choose as many companies as you want, the more you choose the more money you can make!
    Also, you can write posts on Facebook or Twitter or share some views for companies.

    13. Record a podcast

    Ways to make money online 15

    Podcasts are super-hot for working from home

    Share inspiring stories! Podcasts are super-hot right now. Our lives are getting busy.
    More and more people are looking for passive ways to take in content. That fact makes them both a great opportunity to build an audience and to make money online.

    The podcast market is constantly looking for quality content and fortunately for anyone trying to get started that job, it’s now easier than ever.

    Come up with a list of topics you’d like to talk about and then search iTunes charts, Google Trends and other podcast research sites like cast.market to see what’s currently popular.
    Yes, you’ll need the right tools, at the minimum you’ll need a microphone and software for recording your voice. Then, you have to plan out your show.
    Did you choose the form of an interview, monologue, short story from personal life, does not matter.
    Again, it’s important to build an audience and share content on social networks. By random search on Youtube is rarely anyone to find you.
    Congrats!
    You now have a podcast that’s ready to be uploaded to iTunes, SoundCloud, or anywhere else and promoted with the rest of your content!
    The last issue is how you’ll market and monetize your podcast. Create a basic website, start sharing episodes to your network. To monetize there are a few options:
    Sponsors (meaning traditional advertising)
    Donations and crowdfunding
    Selling your own products
    Live streams
    Selling “subscriber-only” content
    Use as many streams as possible. Combine selling ads, crowdfunding, T-shirts, mix it all.
    Find the right mix. That’s the key.
    If you are millennial here you can find MORE TIPS

    14. Write and Sell an eBook

    Ways to make money online 16

    Working from home: write some book

    We know, there are so many people dream of writing a book. But something impedes them to go through with it.
    If you have experience and know-how you are the right person to write a book. By packaging your experience, skills, and knowledge into an eBook you can help people learn a skill, advance their careers, or start businesses, you can change their lives.
    And make good money online from downloading your eBook. You can upload your own book to Amazon. With Amazon self-publishing, you set the price, retain the rights to your book, and get access to Amazon’s audience.
    For every sale, you keep 70% with Amazon taking the rest as a fee. If you don’t know how to start to check out some guide to selling eBooks online.
    If you do not try, you will never find out if you are one of the uncut diamond that is waiting to shine.

    In the case you’re not a writer, there’s a simple solution by hiring a cheap freelancer to do all the hard job.

    For example, you can use a freelancer to write a children story. Another freelancer to draw and paint the story into the book and sell it on Amazon. We know someone who made over $30,000 in just 5 months, for the cost of less than $1200.
    Be creative!

    15. Data entry

    Ways to make money online 17

    A great opportunity for working from home

    Data entry is the act of entering information into electronic formats by using word processing or data processing software hosted on a computer and it’s data entry operators who perform these tasks.
    In truth, though “data entry” sounds technical, you can get many of these jobs with no previous experience. In fact, beginner-level jobs in the data entry field are available even for those with no previous experience, though adequate keyboarding speed is a must.

    The minimum educational requirement for data entry operator employment is a high school diploma.

    Also, you have to be very detail-oriented.
    Though keyboarding or typing speed requirements vary, all data entry operators should be able to enter data at employer-mandated keystrokes-per-hour speeds. If you have no experience in data entry and you’d like employment in that field, become a reasonably proficient keyboardist or typist first.
    Or just work longer and never admit that.

    Frankly, data entry operators without experience can enter the field but with entry-level jobs.

    Employers hire entry-level operators too. Such employers train beginners on the data software they use.
    Of course, for this online job you have to familiarize yourself with computers and keyboards. That will help you in your data entry jobs quest.
    You can attend some course, there are many low-cost or free online computer courses and keyboarding.
    Some data entry jobs require knowledge of software programs such as Microsoft Office, while others require none at all.
    If you have no prior data entry experience, except for your job online interview.
    But emphasize your work ethic, education, and team-player sensibilities, and say you are a fast learner.
    And start to work.

    16. Online travel agent

    Ways to make money online 18

    If you like working from home, become a travel agent

    Do you love to travel? Do you have wanderlust? Are you a master at finding great travel deals?
    Then you should become a work-at-home travel agent. It might be your ideal online work-at-home career path! Online travel agents are effectively the online version of a traditional travel agent – without a shop, readily accessible and on the surface.
    One of the most common uses of an online travel agent is for the booking of a hotel. In this piece, the focus will be on the various types of agencies, how they operate and point out some of the advantages and disadvantages.
    Millions of travelers use online travel agents, for hotel or holiday bookings. Working as a travel agent might seem an ‘old school’ in today’s world of Kayak and Airbnb, but in reality, many people still prefer to work with travel agents.
    Why?
    Experienced travel coordinators help travelers save money, time, and all kinds of travel-related headaches.

    Do you need to be a certified travel agent?

    Frankly, the answer is NO. But, online travel agent training is readily available in the form of certificate programs; diploma programs are generally not offered in this field.
    Being an online travel agent is incredibly helpful for people who are planning their vacations. There are tons of decisions to make and plans to consider, and being able to help people make the right choices for their families, and discover options they would never have found before, is an incredibly satisfying way to make a living.
    It’s a proven industry that just gets more and better suited to remote work as time goes on, internet tools get developed, and even the most remote parts of the world begin to get online.
    The overall industry of at-home travel agent work has a lot of options. You can choose to work for a company in a more traditional employment arrangement, or pick something that’s much more entrepreneurial in nature and take on a lot of the benefits and responsibilities of freelancing.

    If you want to work from home as an online travel agent, you’ve got all kind of options.

    Quite a few companies and industries are hiring work-at-home travel agents, so with a bit of patience, you can find something absolutely perfect for you.
    You can also try a few different types of remote travel agent positions over time, once you know the lay of the land a little better.
    The flexibility you have comes down to which company you join and what type of role you’re taking on.

    There are two basic approaches to working from home as an online travel agent.

    One is to take a role with a set payment of some sort, like a salary or an hourly rate. These will be a traditional employment model, except you’d be working from home instead of at the office.
    The other way to be an online travel agent is to look for an agency that hires agents on commission. As a commissioned travel agent, you’ll be able to take charge of your work to a much larger extent. You’ll be set up as a contractor and given access to the company’s resources, including things like software and leads.
    You’ll need to have some sort of home office set up.
    Some positions will require specific technology (like a certain Internet speed or even a separate phone line), while others will let you conduct your working hours whenever and however you want.

    17. Travel writer

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    Do you like working from home and to travel? Become a travel writer.

    Do you love to explore and research?
    Travel Writers are generally freelance writers or independent contractors, who write articles and reviews for magazines, newspapers, websites, and travel guides. Topics can range from food and nightlife to specific travel niches like eco-tourism, adventure travel or family-friendly travel.

    The average travel writer makes only $6,000 a year.

    According to PayScale.com, the average Freelance Writer earns $38,000 a year.
    Some factors that you will need to factor in are things like experience, skills, background education, and training and whether you’ll be freelancing or working as a salaried employee.
    While it might not pay a lot, one perk is the free travel and accommodations that you’ll receive.
    Many bloggers will choose a specific travel niche, such as traveling for singles, couples, families or by interest island, mountain or luxury travel.
    To make money, bloggers will use various techniques such as direct ad sales, ad networks, affiliate marketing, or by creating their own informational travel products.
    According to PayScale.com the median salary for a blogger with one year of experience is $30,000.

    18. Social media manager

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    You can be social media rockstar working from home.

    You are not sure what exactly that entails?
    Most social media marketers help businesses grow their online communities.
    This usually includes:
    writing and scheduling posts
    running ads
    replying to fans
    creating graphics
    Your duties as a community manager or social media manager would most likely depend on your job description, time, budget and expertise.

    There are many places to learn about how to become a community manager or social media manager.

    Before you can sign up clients you’ll probably need to have a thriving social media presence of your own. Create accounts on all the major social media websites and familiarize yourself with blogging, email marketing, search engine optimization, and graphic design.
    If you can’t market yourself, you’ll never be able to market for others!
    Finding clients is difficult for even the most seasoned social media marketing agencies. Learn where your ideal potential clients hang out online then distribute great content and start conversations that will drive traffic to your website. You should also attend networking functions, conferences, and other industry events.
    Managing accounts on Facebook, Twitter, Google+, YouTube, Pinterest, and other social media websites takes lots of time — time you can’t afford to waste!
    We suggest having systems in place that help you organize tasks and complete work on time for your clients. The key is finding a system that works for you.
    One of the helpful things is creating a social media calendar. Not only will a calendar save you lots of time, but it will help you stay organized and always a step ahead.

    One of the first questions an aspiring social media manager asks is: How much should I charge?

    And this is a difficult question to answer since markets vary from place to place and discipline to discipline. Start by finding out what your competitors charge to determine whether you should charge more or less than they do.
    Most prospective clients will know the difference between good and bad social media.
    You’ll need some advanced skills if you expect to stand out!
    Advanced techniques include:
    Optimizing YouTube videos with descriptions, tags, titles, annotations, etc.
    Custom Facebook apps
    Custom Twitter and YouTube headers
    Knowledge of hashtag marketing
    Knowledge of webcasts, Google+ Hangouts, email capture forms, etc.
    A strong mobile friendly is a must!
    If customers can’t find and interact with you on their mobile devices, you might as well not even exist.
    Make sure your website is fully functional on mobile.
    Mobilize, baby!

    19. Associate marketing

    Ways to make money online 21

    Digital marketing: working from home

    Digital marketing is a booming industry, it is growing and getting bigger and maybe this is the right time to join.
    It is a tough field but not for those who are passionate about it.
    Marketing assistants work in an entry-level position, their activities are essential to the marketing organization as a whole. While they may have a variety of duties, their primary purpose is to support the marketing manager or director (or assistant marketing manager) in researching, creating, and implementing marketing plans.

    Marketing assistants have a key part to play in helping their more senior colleagues navigate the ever-more-crucial digital world.

    Marketing assistants may have a variety of backgrounds, but employers often prefer to hire an assistant with at least an associate’s or bachelor’s degree in marketing, communications, or business. Courses in economics, accounting, management, finance, business law, mathematics, and statistics are also beneficial. Completing an internship is also recommended.
    Prospective marketing assistants would be wise to become familiar with these platforms and tools:
    Social media/social networking: 80% (predicted this would be an area of focus)
    Mobile media: 64%
    Blogs: 59%
    Email campaigns: 58%
    Search Engine Marketing (organic): 55%
    Webcasts: 51%
    Public Relations: 50%
    Grassroots promotions: 50%
    Search Engine Marketing (paid): 48%
    Newspapers, magazines, and radio are all expected to be an area of declining focus.
    According to PayScale.com, marketing assistants generally earned between $25,000 and $45,000 each year.
    Salaries were slightly higher for those working in the marketing departments of information technology and legal firms compared to other industries.

    20. Virtual assistant

    Working from Home - 35 Ways to make money online

    like an assistant, only virtual and working from home

    A virtual assistant is a contact made over the internet that assists in day-to-day tasks. Yes, like an assistant, only virtual!
    These assistants don’t just help someone’s business run smoothly, they help their life run smoothly.
    Whether it’s sending a thank you card to a friend or researching potential investors, a virtual assistant can do just about anything.
    They take charge of not only the day-to-day business tasks but can even take hold of day-to-day personal tasks so you can keep focused on what’s at hand.
    They can send flowers, thank you cards, or even just schedule an Uber or Lyft so you can go from one venture to the next without a single hiccup.

    However, it is just about anything.

    Setting up your own Virtual Assistant business may seem like hard work, but we have to tell you that it’s actually the easy part.
    Being a successful VA isn’t simply helping someone with their admin or supporting their business, it’s knowing how to manage and communicate with them.

    Required skills are reliability, good communication skills, and time management.

    There are certain limitations to what they are allowed to do legally, and what the internet allows them to do. Certain tasks are perfect, but others can be deemed rude or could be legally wrong to ask. Much like a physician assistant, there are certain limitations to tasks that can be performed and often a virtual assistant cannot take the place of an employee. They can, however, take some tasks that other employees would be doing in order to spread the workload and make sure those employees are focused on growing the business instead of focusing on upkeep.
    A virtual assistant covers the whole spectrum in terms of different tasks they can accomplish from travel to personal life to scheduling to social media. However, there are a few key areas that they focus on in particular.

    Virtual assistants can do the groundwork of researching for a brand, or start-up to save countless hours of time and energy.

    Whether it’s identifying potential investors, finding events or office space, or gathering market data, a virtual assistant can do it.
    Virtual assistants can research and plot competition, goals, market share, etc. and compile the information in a presentation that can be shared in with potential investors and clients, our team.
    For any modern business, start-up, or brand, social media is one of the most vital aspects of growth and a virtual assistant can not only manage accounts, but help grows them.
    Virtual assistants can deal with writing content for a website, blog, and more. They can ghostwrite and edit to maintain a constant stream of content on a particular website. They can help manage inboxes of emails in a company and handle all scheduling tasks. Booking flights, reserving cars, arranging pickup, and booking hotels can take huge chunks of time to get done. A virtual assistant can cover all of these tasks.
    If you want to be a VA because you think it’ll be an easy life and easy money then you’re in for a shock because the reality is very different. It’s a brilliant life once you’ve nailed it but there can be a steep learning curve at first.
    Virtual assistants charge anywhere from $1 to $100 per hour. Sometimes even more.
    But the sweet spot is generally between $15 and $30 per hour for executive assistant services and $40-$75 per hour for higher-level marketing or financial tasks.

    21. Work for Amazon MTurk

    Ways to make money online 23

    Work for Amazon while working from home

    When you think of Amazon, you think of their many different ways to find some of the best online deals to save money shopping.
    They also have their own “get paid to” site called MTurk (Mechanical Turk) that will pay you anywhere from a few pennies to several dollars per task. The quicker you work, the more HITs (tasks) you can complete each hour.
    You can get paid to complete a variety of tasks like entering the purchase amounts for scanned grocery receipts, taking surveys (mostly academic research), transcribing audio, and performing data research.
    There are over 421,000 different tasks to choose from, so there is never a shortage of earning opportunities.
    MTurk gives you the option to be paid by direct deposit or Amazon gift cards.
    You can also request payment weekly as the minimum payment amount is $1. You can easily hit this threshold by completing one task.

    22. Email marketing

    Ways to make money online 24

    Email marketing – if you like working from home

    In getting an email marketing job, you should first satisfy the qualifications and requirements of the position. The role depends on the need of the company or business. In your case, I would assume that you are seeking an email marketing specialist position. Here are important areas you need to consider in pursuing a career in this profession.
    If you want to get involved in email marketing you’d want to get some valuable knowledge on the subject. It all starts with an opt-in page. This is a single web page that you use to give away a product or service to people to help solve a specific problem that they have. Now, the point of this opt-in page to collect email addresses.

    You should have an automated email system in place.

    That way the emails are sent for you by the system, instead of you manually sending them yourself, one by one.
    The first email will be a welcome email. Followed by an email that contains the value to help solve their problem.
    This should be again followed by another value email, which will then lead them to an email where you provide a product.
    You don’t want to sell them a product right off the bat, because most people won’t trust you, know who you are, and most people won’t buy from someone they don’t know or trust. Sounds simple but it’s not easy. This is the very basic outline of how an email campaign runs.

    What you need to know about email marketing, is how to write effective subject lines, how to write the content, story, and how to analyze the results.

    Email marketing is the single most powerful channel to reach the audience, and it can be used to achieve a number of different objectives, so it’s worth thinking about it.
    You can find a lot of this kind of jobs on freelance platforms, such as UpWork.

    23. Writing jobs

    Working from Home - 35 Ways to make money online

    The best job for working from home

    While video-based jobs are gaining a larger foothold in the online world as internet bandwidth speeds increase and our gadgets become more high-tech, writing is still one of the most common work at home jobs.

    There are deadlines to be met.

    But writing is popular because you can do it from anywhere with an internet connection, even a slow one, which means you can get paid from home, the coffee shop, waiting for another flight, or after the children go to bed.
    The vast majority of writers are self-employed or freelance. Permanent paid work is more common in the technical author, academic or journalist roles. A determined writer can carve themselves a niche.

    Typical tasks include:

    writing, editing and proofreading text
    liaison with other professionals such as printers, photographers and artists
    marketing and distributing work
    researching and developing contacts
    seeking publishing contracts
    negotiating terms and conditions of contracts
    general administration
    High salaries are not common among writers, and most people choose the role because of the joint benefits of being their own boss and doing something they enjoy. Some writers have gone on to earn respectable sums, but that’s another story.

    Key skills for writers are:

    Perseverance
    Excellent written communication
    A good grasp of narrative
    Awareness of audiences
    There are no formal academic qualifications needed. Previous experience from published articles, freelance work or writing competitions can be useful, but not essential.
    A wide variety of institutions offer short creative writing courses that can be helpful.
    Freelance writers are paid from $50 up to $500 per article or book, mostly eBooks.

    24. Become an influencer on Instagram

    Ways to make money online 26

    Become influencer working from home

    Build up a following on your account and you could quickly be making extra money online. Major brands, gear companies, and even startups are willing to pay $500-$5,000+ per post to get in front of your audience.
    While it’s getting harder and harder to build a massive Instagram audience, if you already have a solid niche and are posting quality content regularly, with a few small tweaks you can make yourself an influencer.
    Popular Instagram influencer, Rachel Brathen, is known to charge upwards of $25,000 for a single Instagram post.
    Of course, Rachel isn’t alone.

    There are numerous others like her who are making a successful living out of being an Instagram influencer.

    Where is the catch?
    Instagram is a powerful platform that has massive value for brands. It has over 800 million active monthly users. This indicates that all of the people that brands try to target are mainly available on Instagram.

    The first thing you need to do to become an Instagram influencer is to find a niche that suits your character.

    This must be something you are passionate about, to what you are devoted. Something in which you have a good deal of knowledge and interest. But because someone else is doing something and is successful, doesn’t mean you should the same.
    Let’s say you’ve seen that people who post about cooking on Instagram have more followers. Should you too start doing the same, and you don’t have the interest or experience in it? Definitely not.

    There is one rule on social media and you have to follow it:

    You can’t make it if you fake it.
    So you must pick a niche that you’re genuinely passionate about.
    Your Instagram posts should reflect whatever truly interests you and not some random stuff. Whether it is literature, music, horses, dogs, sport, cooking, fashion styles or trends. Of course, your niche might be a combination of different things, as long as they’re not random.
    Create a noteworthy bio, share your stories, make your Instafeed appealing (this is one of the pre-requisites if you’re trying to become an Instagram influencer), post content consistently (this is crucial to become an Instagram influencer), choose the right hashtags and switch to a business account.

    With a business account, you get access to insights.

    You’ll be able to see your follower demographics, which posts are getting better engagement, the days and times which give you the best engagement.

    Use Instagram stories.

    They are probably the biggest thing right now on Instagram. More and more users are joining this bandwagon. The Bandwagon is a persuasive technique and a type of propaganda through which a writer persuades his readers so that the majority could agree with the argument of the writer.
    Social media is all about people and how you engage with them. Engagement is one of the most important factors to help you become an Instagram influencer.
    When someone comments on your photos, make sure that you reply to them. Also, return the favor by liking and commenting on their content.
    Once you have been able to grow your followers above a thousand and have decent engagement, start your outreach.

    The easiest way is to tag relevant brands on your photos to put yourself on their radar.

    Sometimes brands feature such photos on their Instagram account providing you greater visibility.

    And one friendly advice –  never buy followers.

    You will not become an Instagram influencer overnight.
    You have to be patient. It might take a few months, but you will definitely start seeing results.

    25. Become call center representative

    Ways to make money online 27

    Working from home as call center representative

    It is expecting that field to increase very rapidly over the next eight years. If you like to talk and know how you are probably good for call center representative.

    Call center representatives are the people you speak with when you call your bank, order a new dress from a catalog or make travel reservations.

    They do everything from assisting people with customer service complaints to making telemarketing calls.
    The most popular is customer service: for instance, the people you speak with when you have a problem with your internet provider.
    You might also work in inbound sales, where you take calls from people who want to buy something.

    Another popular call center job is in outbound sales.

    They are the people who call you trying to sell you something like a new blanket or vacuum cleaner or some service.
    Call center jobs require workers to use a telephone with a headset and a computer. Some of these jobs are located in office buildings, but most companies let employees work from home. Many call centers are open around the clock.

    It’s easy to find a job that fits your schedule.

    But truth is that you’ve got to have a pretty long fuse in order to excel this kind of job. People will scream at you, hang up on you and call you names, so if you get angry easily, find a different career.
    Call center workers who work in sales can earn $10 an hour.
    But the good news is that many of these jobs are commission-based, so you have the opportunity to make as much money as you want, as long as you’re a good salesperson.

    If you’re bilingual, which is an advantage, you can usually earn more.

    After you become an expert in customer service or sales, you can move up to a better-paying position with more desirable hours. Most call center representatives become managers or move on to corporate positions in the company.
    This is a pretty good field to get into.
    If you’re looking to enter this field, then focus on getting a call center position in customer service.

    26. Consulting

    Ways to make money online 28

    Everyone can do consulting working from home

    If you’re an expert in any field, you could potentially find people willing to pay you to counsel them on their personal or business goals. You might think you’re not important enough to consult for big companies, but you could be surprised at the types of expertise people will pay for.
    Some of the bloggers after a few years may get an offer from a couple of brands to help them with social media and online marketing, for example.
    In this way, you can gain 4-6 of these gigs per year, depending on your schedule and the work involved.

    The best part is that you can work out to around $100 per hour.

    Yeah, that’s right!  
    This money you may earn to advise people about the best ways to use social media tools like Facebook and Pinterest to grow their brands. If you want to start consulting but aren’t sure what steps to take next, you can also set up a free account through specialized websites. Those websites let anyone who wants to offer consulting set up a free profile. Once your profile is set up, people will find you and book a session you’ll get paid for.

    Online consulting is a very huge term.

    It covers a considerable amount of jobs.
    Jobs usually appear due to market demand.
    Honestly, everyone with decent knowledge on a particular topic can become a consultant on it.
    In today’s world, it is very hard to keep up with the development of technology and becoming an expert in a certain field requires constantly updating information.
    With this rapid development of technology, it is easy. Everyone can become an expert now. It requires a lot of studying, patience, and self-confidence.
    You will most likely have to take risks and sometimes count on your luck. But with enough tenacity, you will succeed and then you will quickly realize that the struggle was worth it.

    Fields that consulting are being sought: accounting, advertising, auditing, business, business writing, communications, editorial services, headhunter.

    This is a profitable business and the best thing about it is that it does not require years of education. You can be self-educated and do just fine and provides you working from home.
    Even better, with enough hard work and confidence in yourself, you can achieve huge success. The online consultation market provides amazing possibilities.

    More about working from home you can find HERE

    27. Lead Sales

    Working from Home - 35 Ways to make money online

    Selling leads working from home

    Another way to make money online is by collecting leads. A sales lead is a potential sales contact, an individual or organization that expresses an interest in your goods or services.
    Leads are typically obtained through the referral of an existing customer, or through a direct response to advertising or publicity. The main steps you need to complete to make lead sales work include setting up a website, getting traffic to that website, and making sure you’re collecting leads that someone will actually pay for.
    If you have or plan to create the website you have to provide very good traffic from people who are searching the web to find answers. It is a lot of work to process all the different requests and clients.

    So, you may start selling the leads you gathered.

    Lead buyers are willing to pay for the personal information you gather from people who visit your website. This is a win-win for everyone since you will get paid for the leads and your website visitors are connected with someone who can help them.
    You can sell leads to many different industries. You just need to figure out a niche, build a website and traffic, and see how much you can get for the leads you collect.
    Whatever sales industry you work in, the first step is always going to be the same: qualify your sales leads to determine how good of a fit they are.
    This process requires taking the time to learn enough about them to figure out:

    How much of your time are they worth?

    Not everyone is going to be a good fit, and figuring this out early on in the process will save you the valuable time you could be spending with other clients.

    What elements of your offers would be the best fit for them?

    Do a quick scan of your available offers to see how you can best serve your prospective client’s needs.

    What does their budget look like?

    While it sometimes makes sense to work with prospective clients on a trial basis, making sure they can ultimately afford your services is a big consideration when qualifying a lead.

    Do they have a good reputation?

    Clients with a good history of payments who are easy to work with will save you time and stress down the road and make for a much better business relationship.

    The amount of information captured in a sales lead varies.

    It could consist of a person’s name and email address, or it could provide a broader view of the potential buyer, including information on the potential buyer’s role in his or her company and an anticipated purchasing time frame.
    After reviewing these questions and deciding they are indeed a qualified lead, customize your response note based on the answers to these questions.
    You will not only be informed, but you will be able to serve your clients more efficiently by delivering up offers that are truly right for them.
    The internet provides plenty of opportunities to obtain sales leads while working from home.

    28. Become a web developer

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    Become developer working from home

    Do you want to become a web developer? It is a fantastic job of working from home.
    Contrary to a popular belief, you don’t need a fancy bachelor’s degree in computer science to become a web developer and create a functional website.
    In fact, it will still take some hard work but it is worth.
    Why should you become a web developer? Web development is an industry that won’t die out anytime soon. Statistics has predicted a 27% growth in available web development jobs through 2024.

    Who is a web developer?

    They literally create how you experience the web. The websites which want users to enjoy their experience need great web developers. And they’re usually willing to work for some serious cash.
    What you have to know to become a web developer?
    You have to learn the basics of HTML, CSS, and Javascript.
    These are the nuts and bolts of all website development that you’ll work with daily if you decide to become the developer.
    HTML dictates the structure, it provides the basic skeleton of a website, mainly through a series of tags.
    CSS will make it look pretty. It puts the style behind the HTML structure. Basically, without CSS, HTML and consequently the whole web page would look boring.
    Javascript will make it function. It is a programming language that allows you to implement elements on web pages. It powers features like interactive maps, 2D/3D graphics, and more.

    To become a web developer, you’ll have to get familiar with WordPress. You can find plenty of WordPress guides.

    Further, you have to learn the basics of UI and UX.
    Most developers aren’t design experts, these are two different fields. You don’t need to be a design rockstar.
    If you decide to become a web developer you have to learn the basics of SEO. You may be thinking, “I’m a developer! Isn’t that the job of the bloggers and content creators?”

    Do you need to be an SEO expert? Absolutely not.

    But you should learn the basics of SEO, and keep SEO in mind while you’re creating each website. In doing so, you’ll give the website a much greater chance of success, and make your web development client that much happier.
    SEO refers to the process of improving a website’s rankings within a search engine like Google. It’s one of the most important skills in online business.
    You have to be sure your site is responsive. In 2018, responsive design is crucial, your site must be both mobile and desktop/laptop friendly. All of your clients will expect it – lead by example and make sure that your website is responsive.
    The job market is getting tougher. The more traditional jobs are phased out every day.  So, why not learn a skill that will keep you employed in the future?

    That’s the big advantage of web development.

    You don’t need a fancy expensive degree to get into the field.
    Just several steps, a bit of your time and willingness to learn.

    29. Become web designer

    Ways to make money online 31

    Become web designer working from home

    Web designers and web developers are two of the most sought-after professions these days. And it’s not as far away as it may seem to become one. With some free time, with proper interest, and a lot of practice and patience, you could make world-class websites and earning a nice income.
    What you have to do?

    Learn from other great web designers and programmers.

    Take a look at other well-designed websites, and note how a menu or content area is laid out and then use that knowledge in your designs.

    Get the right tools.

    Start by getting a good vector graphics editor such as Adobe Illustrator. Making images using vector graphics is the easiest way to grasp graphics design, so spending some money on something like Illustrator or Fireworks will be a great help. Inkscape is a nice free and open-source alternative for beginners.

    Learn the skills you’ll need:

    HTML for the main content of the webpage,
    CSS for the page style,
    JavaScript for dynamic content,
    jQuery for easy JavaScript scripting,
    PHP for server-side scripting,
    SQL for database management,
    Bootstrap for rapid development for websites that is mobile-ready first.

    Now it’s time to create dynamic websites using PHP and MySQL.
    These technologies will enable you to create a website that does not require you to make individual HTML pages but allows you to use templates to display multiple pages within the same design.

    Consider using a dynamic web service to improve the user experience (UX).

    Create a website that uses AJAX so you can utilize the server-side power of PHP without having to refresh the page thus saving bandwidth and enabling you to create ‘interactive’ web applications. Install a web server on your computer so that you can work on scripts locally without an Internet connection.

    Practice using coding examples.

    Get yourself some script examples to “tinker” with: Finding a script to dissect is the best way to learn. Try CMS’s like Drupal and Joomla.
    Be bold by starting a project when you have an idea and some time.
    The best time to start making websites is as soon as possible: they can take a lot of time to complete, and you learn a lot just by making them.
    Don’t worry too much about making it perfect the first time.
    One of the best things about websites is that they can always be improved at any time!

    30. Sell stock photos online

    Working from Home - 35 Ways to make money online

    You like working from home and have a camera

    OK, you like working from home.
    Do you bring your camera everywhere you go, snapping perfect shot after perfect shot? If you have an affinity and talent for taking pictures you can make extra money online.
    Become a stock photographer and sell your images to a stock photo company like ShutterStock or iStockPhoto.
    You’ll get a fee every time someone licenses an image you’ve submitted. If you want to be really successful, build your own photography website. This will make you able to showcase your portfolio and start getting higher-paid private corporate work.

    Sell your photos on your own website or upload them to sites like ImageKind.

    Bring framed copies of your photos to sell at art and craft fairs.
    Get your photos displayed at coffee shops, restaurants, and other outlets.
    Photography is big business these days.
    Webmasters and businesses use images for their websites and marketing materials. People purchase artwork for their homes. All of these photos need to come from somewhere.
    As a freelance photographer, you have numerous options to sell your photos online.
    And this can be a great way to create passive income that earns while you’re working on other things.

    31. Start an online T-Shirt business

    Ways to make money online 33

    T-shirts – great for working from home

    It’s sometimes hard to understand just how much people love t-shirts. And with the right niche, marketing, and tools, you can create an online t-shirt business that makes you extra money online while you sleep.
    Services like TeeSpring make it easier to create a t-shirt drop-shipping business where they handle the sales, printing, and shipping, and you’re only responsible for design and marketing.
    But you have to keep in your mind, clothing is a crowded market, so you need to be unique to stand out. You might find it helpful to look at styles that are popular right now.

    Consider looking for inspiration in areas outside of fashion.

    Remember, it’s your brave vision that is going to sell. Your definition of popular is whatever you aspire to make it. Take what fascinates and inspires you most about clothing and apply it as you start an online business.
    It’s OK if your styles don’t have the degree of flair you envision when you’re just getting started.
    The most important thing is getting started. Sketch your ideas and you’ll be astonished by results you can obtain from random sketches.
    What could potentially happen to cause an upheaval in your business, and how can you prepare ahead of time?

    Key tip: style is always changing.

    Be prepared for that. When starting an online clothing store, your product inventory will need creativity and innovation, as well as initiative, focus, and professionalism. Choose whether you want to focus on one specific item or an assortment.
    Generally, you’ll have better luck with more items.
    But if you are dedicated to a particular item and see a niche for it, then consider starting there and expanding your inventory in the long run.
    Spread the word!
    If you want to start an online store, this step is extremely vital to your success.
    In literature, there is a term known as a hook, referring to the opening sentence of a publication that immediately draws the reader into the story.
    So what is the hook that will grab the attention of your customers?
    Social media has become a huge part of any advertising plan. Use them. And email marketing can be helpful too if you want to start working from home.

    32. Transcribe audio and interviews

    Ways to make money online 34

    Working from home as a transcriber

    A transcriber is someone who writes down what someone else is saying.
    Further, transcription service is a business which converts speech (either live or recorded) into a written or electronic text document.
    So, if you’re comfortable with listening to the same audio over and over while writing it down you can make good money online doing transcriptions.

    Journalists, doctors, lawyers, academics, and researchers record interviews every single day and need someone to transcribe what’s been said.

    Most services pay anywhere from $15 to $25 per hour of transcribed audio.
    But if you specialize and have training in legal or medical transcription you can make even more.

    The professional industry standard allows one hour to transcribe 15 minutes of clearly recorded speech.

    It, therefore, takes a minimum of 4 hours to transcribe a one-hour recording depending on a number of factors.
    We speak much faster than we can write or type; otherwise, there would be no need for shorthand or stenographers. It’s generally accepted that we speak four times faster than we can type and seven times faster than we can write. It’s in the interests of both the transcriber and the client to deal with recordings of the highest possible quality.  
    If you’re a beginner transcriptionist you can find jobs at Transcribe Anywhere, TranscribeMe, Quicktate, Rev, Tigerfish, and Crowdsurf.

    33. Online dating consultant

    Ways to make money online 35

    the most interesting job of working from home

    This is maybe the most interesting job of working from home.
    Believe it or not, some people have such a difficult time with dating, they don’t even want to participate in the online component of it.

    If you’re a smooth talker, you can leverage that skill in making money online as a matchmaker.

    This business is excellent for someone who genuinely cares about what it means to interact with another person both online and in-person. Those who are most successful took a long, hard look at how they handled their own relationships before moving forward with their actual business.
    Once they felt they had a good handle on their approach, they could go out and help others develop their own style.
    An online dating consultant helps people navigate the complicated online dating world.
    Well, a dating consultant doesn’t have to be strictly used for finding a spouse. They may fill a variety of needs from serious to casual.
    Consultants create unions that strengthen neighborhoods with positive relationships.

    A dating consultant may have the following to-do list:

    Writing/editing dating profiles
    Crafting written responses
    Taking profile pictures
    Advertising/social media strategies
    Growth potential is excellent for those who have a knack for matching people.
    Online dating is one of the top ways people meet others, as bars and other anonymous social scenes become less and less appealing.
    There are plenty of people who don’t know or don’t have time to write a profile, and who are looking for someone to make it a bit easier.

    34. Buy and sell domain names

    buy sell domains for earning

    Selling domains while working from home

    This is an exciting adventure that for some seems to conjure up images of finding hidden pirate treasure.
    Stories abound of domains that were purchased for $8 dollars 15 years ago being sold today for millions.

    That leads the more adventurous to wonder, “How can I do that?”

    This ocean is really big.
    Your chances of cashing are low, and you’re not liable to waste a lot of time and money. You need something to guide you toward that prey. Here are some tips to get you pointed in the right direction when trying to buy or sell a domain name for profit.

    There are millions of domains already registered by someone and endless combinations of available domains to register. If you plan on buying a domain to resell it, you should start by diminishing your focus.
    Do you know about pets, are you in the car or home sales?
    What do you know about education or healthcare?
    Think about the spaces you are most familiar with and start there and try to picture someone who would benefit from buying such domain.

    Would it be beneficial for you to own?

    Be honest. Use those answers to refine your search for names. If the names are taken, head over to the aftermarket to buy from people who already own the names or who let them expire because they no longer plan on using them.

    Price your domains with confidence.

    Once you have a name in mind, how do you know if the price is fair?  
    You can use many resources to help you price your domains correctly.
    There are many venues to get your domains out in front of the buying public.
    But you have to know is the venue trusted and well known? It’s important to feel confident that you will get paid and that the buyer will get the domain name they paid for.

    Pick a place that has good ratings with recognized bodies.

    Domain name trading has been around for the last couple decades, and while most popular names have long been sold off, there’s still plenty of others that you can get your hands on for relatively cheap and broker as a way to make money online.
    Before you dive in, beware that some experts doubt the long-term viability of this idea for making money online.
    However, there’s always the change you might just land on a lucrative domain name for a future billion-dollar company.

    35. Earn from Facebook while working from

    earn from facebook

    Work on Facebook while working from home

    For all of you who like working from home, all you need is a Facebook account and some creativity to cash on the world’s favorite social media platform.
    Facebook is the world’s third most popular website, surpassed by search engine Google and its YouTube.
    This means, whatever you do on Facebook may have the impact. Facebook has launched several tools that allow people to earn. The website has a global reach and allows posting text, pictures, video and audio content for registered users.
    Facebook Marketplace is a free facility which allows you to list various items, services, and deals and promote them directly within the Facebook community.
    This service allows you to reach thousands of people through your own social network while allowing Facebook friends to notify others about what you are selling.

    You can sell any item or service that meets Facebook Community Guidelines.

    The buyer can contact you, inspect the goods and finalize the price, shipping, and other details.

    Affiliate marketing is a second way to earn on Facebook.

    It is a system by which you promote a product, brand, service or company through a Facebook page or groups to your contacts. Thousands of merchants including Amazon, Flipkart, and many others can pay you to promote their products.
    You can use affiliate marketing programs offered by these organizations and post their content on your Facebook page. Every time an interested party looks up the advertisement or content you have posted and becomes its customer, you make some money.

    Facebook is the single largest common platform on which every business.

    You can interact with customers through the instant messenger service available on Facebook.
    Facebook encourages people who have unique skills or knowledge to take time and create digital content that can be sold through an app.

    Content that can be sold includes PDF files, audios, and videos.

    Facebook Ads allows you to create and pot advertisements of various sorts that target a specific group of people based on age, location, and other demographic parameters.
    If you have a small home-based business, you can make money by advertising through Facebook Ads.
    This social network allows linking with various apps that allow you to open an online store or get memberships.

    It is very easy to earn money from Facebook.

    All you need is the affinity and time to cash-in on the social media platform.

    CONCLUSION

    Here are some of the most popular ways to make money working from home online.

    Here are 35 jobs tips we chose for you to give you an idea of how to make money online.

    So let us say, it won’t always be easy. You’ll, of course, have to work hard, push through mistakes and failures along the way.
    But the truth is, the internet has opened up so many possibilities. To all people regardless of age, location, or background to build a sustainable, online business or side project. And provides the possibility to make extra money online every single month.

    Some more suggestions:

    To apply for a job online and to complete online job applications, you’ll need Internet access, an email address to use for job searching, an up-to-date resume, a cover letter for some jobs, your employment history, and your availability to work if you’re applying for a part-time job.

    Also, as part of the job application process, you may need to take an online employment test and be prepared to provide employment references.

    Before you start looking for jobs and completing online job applications, you’ll need an updated version of your resume ready to upload.

    You may also need a cover letter to apply for some jobs. Make sure your resume includes your current contact information and work history.
    Have a basic cover letter ready that you can customize for each job you apply to. You should always include a cover letter when applying for a job unless the job listing specifically says not to.
    Some sites let you upload an existing resume from Microsoft Word on your computer with the click of a button.
    Well, sometimes you will be asked to convert the document to a PDF or other kind of file. On other sites, you may need to copy and paste your resume into an online profile or use a resume builder that is incorporated into the job application system.

    Some job boards and company websites require users to create an account when they apply for jobs.

    It’s a good idea to start your online job search by creating an account on at least one of the major job boards.

    When you look for jobs online, the most effective way to search is to use job keywords.

    Wish you Good luck from our Team!

     

     

  • Euro – Is it Going to Die?

    Euro – Is it Going to Die?

    4 min read

    Euro - Is it Going to Die?
    From 27 January 2019, 17 of the 19 national central banks in the euro area is no longer issue €500 banknotes. In order to ensure a smooth transition and for logistical reasons, the Deutsche Bundesbank and the Oesterreichische Nationalbank will continue issuing the notes until 26 April 2019.

    Existing €500 banknotes will continue to be legal tender, so you can still use them as a means of payment and store of value (i.e. spend and save them). Similarly, banks, bureaux de change and other commercial parties can keep recirculating the existing €500 notes.

    Like all denominations of euro banknotes, the €500 note will always retain its value and can be exchanged at a national central bank of the euro area at any time.

    To be charitable, you could say the euro has proved itself merely by surviving until its 20th birthday this January.
    That is a low bar.

    Some politicians and economists would say that the European monetary union has failed as an economic and political endeavor.

    The evidence of Europe’s ‘Lost Decade’ is that it can only ever be made to work under a regime of technocrats.
    That is to say, nation-state elected parliaments, was cleared out of their control over taxation, spending, and the core economic policies.

    “One day, the house of cards will collapse,” says Professor Otmar Issing, the founding chief economist of the European Central Bank.

    The EMU adventure has led to the “most serious economic crisis in the history of the European Union, said the others. It has done “more lasting damage” to Europe than the Great Depression of the 1930s and put eurozone states against each other. All of them are fighting for control over the policy.

    With 2019 beginning, the leading EU economists analyze the bloc’s single currency the EU. Which they argue has caused more harm than good.

    The political dynamics have become poisonous. Years of rolling crisis “entrenched and amplified the power and influence of creditor countries such as Germany”, working through the ECB and the European Council.

    EU bodies enforcers of a German-imposed strategy of debt deflation and fiscal contraction. The responsibility of adjustment fell on the weaker states. That was leading to a bias for the whole system.

    Yet nothing is actually changing.

    There is no attempting to probe the disaster

    Those in power of the EU still think they were right. Everything is about ideology.

    One of the aspects of the present situation is disappointment with the “European Dream”. The belief that policies preferring concepts like community relationships, sustainable development, and international cooperation would give Europeans an advantageous lifestyle and influence in the world, collapsed. Europe, particularly as the idea of the European Union, is no longer the object of dreams. It becomes a cause of concern and even fear. And the euro carries part of the guilt for this shift of perspective.

    Euro - Is it Going to Die? 1
    The common currency was put into place in 2002, by 19 of the 28 EU member states. But the growth in eurozone countries has been inferior compared with countries that did not join the monetary union.  Notably, the United Kingdom, Norway, and Sweden showed more progress. This aspect is important to understand the public disappointment with the EU. People couldn’t see the realization of the promise declared at the time of the euro’s launch.

    Today, most Europeans are assured that the common currency has negative impacts on their economy.

    Most of the countries have low growth but rising unemployment

    So it looks that the eurozone is in the middle of the crisis. The basic problems first posed isn’t resolved.

    For example, the unitary currency system locks the relative exchange rates between countries.

    For a stable economy, it is necessary to have the possibility to adjust exchange rates. Moreover, there is no such thing as a true European budget. Without exchange rate adjustments or budget transfers, it is left to the labor market. Therefore salaries have a negative effect on the hunt for budget balance.

    What is clear is that the status quo cannot persist indefinitely if the Euro is to survive in the long term.

    The Brexit devastated EU economic capability

    Truth is, youth jobless rates reached 57% in Greece, 56% in Spain, and much the same across Italy.  These levels are illogical in a modern developed democracy.

    Hundred thousand economic refugees came to work in Britain. From Eastern Europe came to the UK instead of going to the eurozone as they did before. The wave had a great impact before the Referendum UK.

    EU budget talks for 2019 collapsed

    The last year’s negotiations between the Council of the EU and the European Parliament for the 2019 budget failed to reach a compromise by the legal deadline. Later in December, they made the deal.

    But Europe’s economy is weakening. It would not have said the recession was imminent but the article by economist Victor Hill connects some events in directions many haven’t considered.

    Hill begins the article this way.

    ”Across Europe, and particularly in the 18-member Eurozone, the economic news is sobering. It’s now clear that the credit crunch in emerging markets which has played out over most of this year, plus the slowdown in China, are having negative consequences in Europe. Yet, despite the ongoing trauma of Brexit, the UK is cruising along relatively smoothly—for now.”

    The first such event is the coming end of the European Central Bank’s quantitative easing “Asset Purchasing Programme.”

    The ECB has been buying bonds, stocks, and anything else that isn’t nailed down wholesale.

    Asset prices have gone up

    Mario Draghi and his team borrowed the US Federal Reserve’s plan and made it more insane. Since 2017, they have been stepping down purchases. The step should reach zero in early this year.

    The EU needs a growing core to stimulate growth for the whole continent.

    Where the EU has made practically zero progress is crisis prevention. In some areas, they are even growing back.

    The politics have gotten worse. The price to pay for those bailouts, reform packages, rescue funds, and European Central Bank bond-buying schemes has been political fragmentation, at first. But by now, this becomes outright polarization. And this is happening in both “core” and “periphery countries”.

    The eurozone still relies on the European Central Bank to hold everything together. And instead of a treasury, they have a politically unstable consensus on the need for the ECB to act as a lender of last resort for governments.

    Policymakers need to support the ECB. But the eurozone will not be able to avoid a discussion on better fiscal alternatives forever.

    The eurozone is still dangerously imbalanced

    The size of the northern countries’ account surplus is an obvious symptom of the basic differences. It will need to rebalance to solve the problem.

    And moreover, there is the weak governance of some parts of Southern Europe. This will be very difficult to support politically.

    The current state of the global economy is like to be the crash. There are unsolved problems everywhere. There’s the Brexit issue, Italy’s populists, the US-China trade conflict and a lot more. The bad news everywhere.

    Euro - Is it Going to Die? 2
    The defenders of the euro at the European Central Bank (ECB) sit in Mario Draghi’s trap of a zero-interest policy. The bank president’s inaction could prepare the territory for the next big crisis.

    The world’s largest asset management firm, BlackRock, is warning its clients against investing in European stocks. They are saying the risks of doing so are too high and that the bullish period is most likely over on the Continent. There’s the concern, seeing investors increasingly putting resources into US sovereign bonds in pursuit of safe yield.

    And it’s a warning signal when yields on longer-term bonds are lower than those on bonds with a shorter maturity.

    Such an inverse yield curve could be an indication of a downturn

    Today’s debt is higher than before the global financial crisis, amounting to 225% of global GDP (according to the IMF) or 245% (according to the Bank for International Settlements). The eurozone stipulates its members must not let their debt exceed 60% of GDP. But, global debt is rising faster than growth.

    The bottom line

    What does this mean?

    This means that the economic growth we’ve seen in the past years has been achieved on credit.

    When the bubble explodes all will have to tighten their belts. Some nations will no longer be able to take the multibillion-dollar rescue packages. And the ECB’s Mario Draghi cannot lower the lender’s interest rates to lever up the economy.

    The ineluctable conclusion is that a monetary union of budgetary sovereign states cannot be made to work.

    The euro is essentially unsustainable. And, therefore, it is going to die.

    risk disclosure

  • Euro to Decrease in Days Ahead – Forecast

    Euro to Decrease in Days Ahead – Forecast

    2 min read

    Euro to Decrease in Days Ahead - Forecast
    The downward trend, resistance, and price action combine indicate EUR/USD will be lower in the week ahead. If we are right, first up will be the new low at 1.1234. The last low was in November at 1.1216.

    If we see how the rate things have been going recently, it could be a extend. We see an extended slide too far beyond either of those levels without another bounce.

    Euro to Decrease in Days Ahead - Forecast 3

    EUR/USD

    In the week ahead EUR to USD :

    Forecast euro on Monday, March, 4: exchange rate 1.1346 Dollars, maximum 1.1516, minimum 1.1176.

    EUR/USD forecast on Tuesday, March, 5: exchange rate 1.1383 Dollars, maximum 1.1554, minimum 1.1212.

    EUR to USD forecast on Wednesday, March, 6: exchange rate 1.1309 Dollars, maximum 1.1479, minimum 1.1139.

    EUR/USD forecast on Thursday, March, 7: exchange rate 1.1365 Dollars, maximum 1.1535, minimum 1.1195.

    EUR to USD forecast on Friday, March, 8: exchange rate 1.1324 Dollars, maximum 1.1494, minimum 1.1154.

    The Euro rallied a bit during the last week, breaking above the top of the hammer from the previous week. This is a very positive sign as the hammer set itself up right at the 1.1250 level, an area that has been very important, and it reliably supportive over the last several months. Beyond that, it was an area that was previous resistance that seems to be holding as well.

    Euro to Decrease in Days Ahead - Forecast 4

    EUR/USD

    When you look at the longer-term chart, we are also trading just above the 61.8% Fibonacci retracement level, and therefore there are plenty of reasons to think that the pair is going to rally. However, the 1.15 level above has been very resistive so this will simply be a continuation of the overall consolidation area. Honestly, this is a bit of a basing pattern but it’s going to take some time to play itself out. With the Federal Reserve looking to be very dovish, it makes sense that the greenback would lose some strength.

    The European Union releasing shocking economic numbers, giving the US dollar a bit of a break.

    If there will be breaking down below the 1.1250 level, then it will continue to drive. That’s a very supportive level though, it is very unlikely to happen. This is going to be more of a struggle than anything else.

    Euro and the US dollar are the most traded currency pair

    The most traded currency pairs in the world are called “the Majors” and the EUR/USD leads this group as the most traded pair in the world. This pair represents the world two largest economies and has faced the most volatility since the inception of the euro in 1999.

    The common European currency was introduced in 1999. Euro currency in cash entered into circulation 3 years later – in 2002. Before that, the non-cash Euro and German marks, French francs, and other European currencies in cash were in circulation simultaneously.

    The bottom line

    When introducing the Euro in January 1999, the European Central Bank fixed its exchange rate against the US Dollar as 1.1743 dollars for 1 Euro. Such relation to Dollar was formed by the Euro predecessor – European currency ECU. The name Euro seemed more harmonious to Europeans than ECU.

    The exchange rate of the Euro against Dollar mainly depends on the rate of return (interest rates) in these currencies.

    risk disclosure