Author: TP

Golden rules for fast money and easy earnings

Golden rules for fast money and easy earnings are mostly what young people want to succeed in the business world. They are attracted with exchanges, money are 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?

Create a trading 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 (click here for free demo 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. This is one of the golden rules.

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 a 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 in yourself than other people’s estimation.

Stock exchange is NOT a money making machine

Most of those who want to participate 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.
Although, there are some artificial intelligence computer software that might not predict per-se, but behave and act faster and more accurate way than a human being.

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 be wiser in making decisions in the future.

That’s how it works!

11th April 2021
How to find and use the best online stocks trading platforms?

update: 2/1/22

Choosing an online broker platform is one of the most important decision you will make as an investor. And the most powerful tool in your hands..
Every trader has it’s own investment style of trading, and abundance of brokers’ offers allow individuals to choose what best fits their needs.
If you’re an active trader looking to try your hand at beating the markets, you probably have a good idea of what you want from a brokerage: low costs, premium research, innovative strategy tools and a rich with features trading platform.

The era of online stock brokers makes the world as high-risk/high-reward investing available to the wide public.

Profitable investing takes time and a lot of hard work.

It also requires you to use a brokerage service that fits your investing goals, educational needs, and learning style.

If you are new investors, selecting the right online brokerage can mean the difference between a breathtaking new income stream and a short-lived struggle against disappointment, followed by inevitable frustrating handover.

You have to know one thing, there’s no sure-fire way to guarantee investment returns, but there is a way to set yourself up for success by selecting the online brokerage that best suits you.
We’ll try to show you all the important things you should be looking for in your ideal brokerage on your path to find the best online broker.

For a starter, take a moment to focus in on what is most important to you in a trading platform, before you start clicking on brokerage ads.

You’ll be surprised!

The most important is to recognize your own needs.

You must know them.

If you are the novice, you may prioritize things such as basic educational resources, large glossaries, easy access to support service or the ability to have practice trades before you start playing with real money.

A really experienced investor, possibly someone who executed hundreds of trades already but is looking for a new broker, is going to prioritize advanced charting capabilities, conditional order options or the ability to trade derivatives, mutual funds, commodities, and fixed-income securities, as well as stocks.

And you have to be honest with yourself about where you are right now in your investing tour and where you want to go. Do you want to try your hand at day-trading but don’t know where and how to start? Do you like the idea of tailoring your own portfolio, or you want to pay a professional to provide it done right?

For now, we suggest you start with these crucial deliberations as a way to determine which of the brokerage features would be the most important to you.

To help yourself to find and use the best online stocks trading platforms be honest when you are answering these questions.
a) How much do you already know?
Obviously, no one knows everything. But the question is how comfortable you feel when risking your own funds. Again, we encourage you to start with a demo account (you can find at the end of this book a link to a demo account).
b) What kind of trades will you want to execute?
Stocks? Forex? Crypto? Daily?
c) Are you an active or passive investor?
Are you the type of person who can start a trade, let it go with its strategy and leave it aside, or you’re the type of person who checks his portfolio daily, read about it, sign up to newsletters, etc.
d) What kind of help do you need?
Do you need help on learning how to trade? On what to trade? Recommendations? Or maybe you want to do it all by yourself?
e) What are your goals?
This is an important question. Your goal is to make a profit, of course. But, how much you’re willing to lose? How “hard and dangerous” your trades look? How much profit you want to gain and monetize and how much you want to leave at your broker account to use for more money? These questions will act as your guidelines.
Be brutally honest with yourself about how much time, energy, and effort you are willing to put into your investments. Your answers may change over time, no one can anticipate all their needs and goals for the rest of the life. Just start with where you are right now and go with the flow.

Pay attention to several more things such as:

* Does the brokerage website offer two-factor authentication
* Do they clearly explain how they use encryption or “cookies” to protect your account information and how they work?
* Try searching the web for reviews of the brokerage, using keywords like “insurance claim”, “fraud protection”, “customer support”, “chargebacks”, “easy withdrawal”
* Will the company reimburse you for losses resulting from fraud? etc.

And then test the broker’s platform.

We recommend you trying out our preferred trading platform, for free. In this link can open a free demo account with virtual $100,000.
Your capital is at risk.

Every brokerage should have a decent description of what kinds of tools and resources its trading platform offers.
But sometimes the best way to evaluate platform quality is to give it a test drive.

For brokers that allow you to open an free or demo account, it might be worth the effort to go through the signup process just to access and test the trading platform.

7th April 2021
How Much MONEY Do I Need To Start Day Trading?
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By: Guy Avtalyon
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(Updated October 2021)

How much money I need to invest in order to start day-trading? This is one the most frequently asked questions I get from people who want to start day trading stocks, forex or futures markets.

Well, the amount of money you need depends on where you want to trade, your style of trading, do you want to trade forex, stocks, or futures.

I’m going to walk you though it all, so stay focused.

And of course, how much money you need to start trading depends on which country you are coming from.

This is how much money you need to trade stocks:

The general rule is if you want to be a day trader in the USA and to trade US stocks, you need to maintain an account balance of $25,000 or more.

You have to start with at least $30,000 if you plan to make more than 4-day trades per trading week.

Four-day trades or more per week gives you “day trader status” and you’re subject to the $25,000 minimum account balance. It is recommended you start with more than $25,000, to give yourself a buffer over and above the minimum requirement.
If your account drops below $25,000 you won’t be able to day trade until you replenish your account to more than $25,000.

But in case, if the country you are in or want to trade, doesn’t require the $25,000 minimum account balance, it is recommended you still deposit at least $10,000 into your day trading account.

With smaller accounts than this, commissions and fees will significantly erase profits you made.
Usually, online trading platforms let you trade CFD and forex, and with them you can start with only $250 minimum deposit.

One of the common mistakes that traders make is being under-capitalized. Losing trades happen, even to the best traders. But after taking losses you still need to have enough money to keep trading.

It’s recommended risking 1% or less of your capital on a trade.

The risk is the difference between your entry price and your stop loss price, multiplied by the number of shares of have.

This is how much money you required for forex trading:

To open an account in the forex market you will need smaller amounts of money as it is not subject to the same regulations as stocks.
Forex provides leverage up to 50:1 (it can be higher in some countries). Increased leverage means increased risk and reward.

Leverage is essentially using borrowed money to trade.

In the forex market, most brokers provide leverage with few strings attached but you have to be aware of a few things.

For example, you may have $2,000 in your account, but you can buy $10,000 worth of the EUR/USD. Your leverage is 5: 1 on this trade.

The broker doesn’t charge a fee for leveraging, but they are still making money in different ways. You have to realize that leverage is a double-edged sword, increasing profits as well as losses.
In the forex market, the larger your position size the more the broker makes/charges on commissions.

While the broker doesn’t charge interest, the market does.

Currency traders are subject to the interest rates prevailing in the currency they trade.
Every transaction is buying one currency and the selling of another done at the same time.
You may make a few dollars a day which will grow your account over time. But you can also earn much money if you open the account with a bigger amount.

Professionals suggest, if you want an income from forex day trading, start with at least $1000, and preferably $3,000 to $5,000. This amount allows you to potentially start building a monthly income.

It is what the most day traders are looking for.

This is how much money you need to trade futures

Futures contracts are traded on all sorts of products, such as oil, gold, natural gas, and stock indexes.

In order to day trade futures most brokers only require a minimum deposit of $1,000. Most brokers require you have at least $400 or $500 of available capital in your account to take a one contract trade.

This is called day trading margin.

Opening an account with only $1,000 isn’t recommended, the word of pros. Open the futures account with at least $8,000. Or more if day trading ES futures. Because your broker may require additional margin.

You may wish to start day trading with at least $10,000 to give you some flexibility in what you can trade.

Risk virtual money before investing funds

Before risking real capital and making a deposit with a broker, create a trading plan and test it out in a demo account.

You have to be profitable for at least a couple months in a row before opening a real day trading account.
This gives you time to see where you need revisions.
6th April 2021
What needs to happen for Crypto market to crash
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By Guy Avtalyon
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Many economist say there’s nothing with value in Bitcoin and other crypto’s.

They also suggest the fact that once there will be a tax on carbon, the crypto value will turn into negative and the price will drop.

But how can you apply a tax for a decentralized system? A system that lets any person who wants, no matter who he is and where he’s from, to mine crypto on his own computer?

And people aren’t doing this for free. No, it’s not free. Since they behave as a 3rd party, there’s a complex yet flawless commission system, that takes a small commission out of any transaction and passes it to the miner, and to prevent an inflation in crypto value, the system also halves the commissions the miner gets every 4 years. So if just a few years back you would get several Bitcoins commission for every verifying transaction, now it’s only a small portion of a bitcoin for same commission, and it will keep splitting every 4 years for more than 100 years from now.

Click here to learn more

Governments and treasure departments all over the world are worried with Crypto’s market.

But why?

Mainly fear. You fear what you don’t understand. They also worry about all the unregulated, dirty money, coming into the system, making criminals and terrorists thrive.

They are not wrong. Crypto does let you send anonymously funds around the world without any 3rd party (such as bank a involved). In crypto the people are the 3rd party and that’s why it’s not likely anyone can hack its system. It’s simply a decentralized system, with copies spread all over the world.

What it means is if I send some $100 worth of bitcoin, this action will always be inside the system log (the chainblocks), and in all the copies out there in the world. If, say this person would like to try and scam me and manipulate the logs to send himself other amount than I sent him – he will not be able to do so, because they’re too many copies out there that state the truth (that I sent exactly $100 to this person).

It’s similar to the fact that we have 8 billion people in the world. If one person will have his DNA manipulated by any reason or way – the rest of the world population’s DNA will remain the same. So that’s why crypto cannot be hacked.

Another incredible feature is the anonymity.

Sure, it can cause a lot of headache to governments, but the fact is the anyone in the world can have their funds managed, without any tyranny or corrupt government that can decide who has access to bank account and who isn’t.

In that matter – I think we’re not yet understanding the potential of crypto’s anonymity on many non-democratic countries.

Creates the option to easily send funds across the globe.

If you’ve ever wanted to send money to someone in another country you found it’s expensive and frustrating if you get lucky and simply impossible in many other times.
For example, if you want to send money to someone in China, you most likely will not succeed as most of them don’t have access to western banking systems and they all use WeChat app to send money inside China. Hard to transfer money = bad for business = bad for the little people.

Crypto does just that! You can send funds to anyone in the world, no matter where he is, what’s his government rules, what his bank decides, and simply in one word: EASY.

And probably the best advantage is that this fund cannot be inflated.

In general, there isn’t anything in the world that cannot be inflated. Regular everyday money can be printed by governments, that’s obvious.
But also Gold can be inflated too. If a new technology to locate and extract gold from the ground will be invented, or chemists will find a hypothetically way to generate gold in a lab – Gold’s value will be inflated.

Yes, I know it’s not something to happen anytime soon, but just for the sake of argument.

Crypto cannot be inflated. Once it’s generated in the first place, it has an unchangeable number of total crypto to be in the system. It can never be more and no one can add more into the system.

So the 3 main reasons that if any of them happens – the crypto market will crash are:
1. If it will turn out to be hackable. If you can hack it – it doesn’t worth anything anymore.
2. If somehow it will not be anonymous anymore
3. If a way to generate more crypto than should will come up
15th February 2021
How to buy Cryptocurrency

Buying Cryptos has never been easier. All you need is a Wallet and a credit card. That’s it.

By Guy Avtalyon

The first thing you want to do is create a wallet.

This wallet acts as it’s your bank, since all your funds will be in there. When you hear about people who lost bitcoin worth of million $ it’s because they lost access to their wallet, so be sure to remember all your passwords.

I use Coinbase as my wallet service, and after you create an account it should look like this:

With $0 of course.

Once we have our “bank account” set up, all we need to do now is buying funds.

For that you can find many websites that give you this opportunity to buy crypto with them, I use lobstr. I don’t know why them in particular but I did test them and they do send me the funds and they’re not a scam, so I keep using their service.

Click on “Buy other crypto”

Choose from the list your desired crypto and the amount of money you want to buy. I buy Bitcoin Cash in this example.

After clicking “buy”, you get this page that asks you for your wallet information. Remember our wallet from above?

We go back to our wallet (my is Coinbase) and search for the exact asset you want to buy. You cannot send different asset id’s (like sending Bitcoin to Ripple address.

Now we click on the Wallet tab, and Receive to get our wallet address

This is the address, all this letters together. Click on Copy

Go back to Lobstr’s purchase menu and Paste your address

Now simply Click on the Buy Now

At this point they might ask you to provide them with some personal ID documentations.
After ending all your docs, you wait until a check mark appears on Crypto Delivered.

Go to your wallet and you’ll see the funds in there. Please note this process can take up to few hours, so be patient. It should look like this:

You might get different amount than you intended (like in this example, I bought $3000 worth crypto and got only about $2900 worth.). It is because the price volatility and the time it took to approve my request. It doesn’t matter because I’m in this for years to come.

That is it!

Buying cryptos has never been easier!

Please feel free to add a comment below or send me a personal message on Facebook.

14th February 2021
Are we in an overpriced market?

By Guy Avtalyon

As part of my research work, I come across numerus websites that show (in a very convincing way) that the market is overvalued and over-priced.

I’m not going to argue if it’s true or not, because every noob trader knows that a price isn’t high or low, but it’s simply what all other traders agree on.

So when it’s an over-priced situation, just like we can see in this image for example:
(Image from currentmarketvaluation.com)

Then everyone worry that we’re in a bubble.

You can also see in this image of fear and greed (found here)

The general feeling at the moment is more Greed than fear.

I do not know if we’re in a bubble or not, but to my impression we’re not there yet.

First, if we look at past crashes, we can see that each of them happened from a reason (Dot Com bubble in the 00′ and fin crash in 08′), in most cases the regulators closed any option for it to happen again.

Yes, we should except a crash in the future, and yes it will be because of a reason that yet been closed or discovered – but I don’t think it’s the case now.

Secondly, if we take into consideration the global pandemic (Corona virus) and the market’s reactions (starting in panic in March 20′ that resulted in drops, but just in few months got back to previous price and even exceeded it) – we can definitely see that there’s major confidence in the markets from traders’ and investors’ point of view.

What we should expect in the near future?

First we’re in all time’s high (or close to it) in many verticals and index prices.

I, personally, don’t like to trade on all time highs (or even a current time [weeks, months] high). It doesn’t mean it’s wrong, but due to regression towards the mean principle – statistically there’s more chance for price to drop than there’s to rise.

So the most likely event to happen in the next few months are price corrections.

Is student loans going to be the next market crash reason?

An example to a possible reason for market crash can be found in student loans.

As you can see in this image:

“In 2020, the amount of student loan debt that is delinquent or in default is almost equal to the size of the entire student loan market from only 17 years ago. How much longer can this chart increase? Federal student loans are not even cleared in bankruptcy, and so this escalating mountain of debt – including the delinquent/default debt – will carry on as a burden for much of the adult life of the borrower. This debt burden is already becoming a national crisis, and combined with economic downturn and high unemployment, we are setting up for generations of Americans to be trapped under a nearly inescapable mountain of debt, unable to build wealth.” (From currentmarketvaluation.com)

(Image from currentmarketvaluation.com)

What the image and the quote are trying to show us is that many students (more than ever) are taking loans without being able to return it resulting in a struggling to keep his head above the water borrower.

My agenda is just the other way around:

The best thing that can happen in any economy is education, research, learning and sharing information, and more. This can only happen if someone isn’t worried about how he will feed himself or where will he sleep tonight. The economy in general and the individuals in particular need to be open for creativity, inspirations, and mainly – make mistakes and learn from them. For that reason I choose to look at the blue line (and not the red) and look at them as the future of the economy. Some of them are working, as you read these lines, on the next Facebook, next TikTok and the next Netflix and Tesla, and it’s good for the economy.

What is overvalued market anyways?

Overvalued and overpriced market appears when the full potential of the market is exceeded. This is not a real formula you can calculate as it’s mainly the average opinion of ALL players in the market.

But, since the global economy isn’t close to its full potential and more than 40% of the world’s population doesn’t have access to internet yet(!!). That’s billions of people with buying power that still isn’t in action.Yes, it will take many years for the vast majority of the population to have internet, but that’s also what’s exciting about it.

Another thing is, usually, you can spot overvaluation in hindsight.

Bottom line

Market might crash soon, and indicators all over the place are screaming overvalue, but the fact is no one can predict the future.

The only thing that has 99.99% to happen is if the market do crashes, it will eventually return to its pre-crash value and even exceed it. Might take months or years, but this is the only thing that is almost certain to happen.

My personal predication is unless there’s a loophole we can’t still that is risking major parts of the market, we should expect to see mainly market corrections due the overpriced stocks and traders monetizing their gains.

13th February 2021