Author: Editor

  • Bargain Hunting – The Holy Grail of Investing

    Bargain Hunting – The Holy Grail of Investing

    Bargain Hunting - The Holy Grail of InvestingIf you understand the terms overvalued and undervalued you will find plenty of stocks that look cheap

    By Guy Avtalyon

    Stock investors are bargain hunting! From time to time, that is a title for a lot of news reports when it is a general market decline. For example, after the 2007/2008 prices have been cut by 40-60% so for sure there were some bargains out there.

    People’s intuition about what is worth to buy can have dangerous side effects when it comes to investing. However, winning instincts can be very profitable. This is what the concept of value investing is all about.

    People spend their money to buy expensive things in order to indicate status. But the other way is to get a good bargain. If you can combine both, it would be ideal. Having the status-symbol normally cost a lot, so we would like to get them at a good bargain. That sounds like a good deal.

    The dogma that expensive things are better, forms human behavior in some unusual ways.

    What is Bargain Hunting

    For example in drug testing, patients mostly find they feel better if they know that the medicine that they use is more expensive. Incredible! That means that people instinctively look for bargains. They use price itself as information to estimate if something is a good bargain. That is indirect logic.

    The defining value investing, hence, comes down to the simple concept of buying quality stocks that are undervalued. Not always the cheap is bad, and if something is expensive, then it isn’t always good. Bargain hunting means that a stock is worth less than it should be and is therefore undervalued. The ability to pick undervalued stocks or so-called value-investing is quite a talent. But is there really such a thing as an undervalued stock?

    The stock price is a mixture of investors’ estimates for later growth. So, the opinion as to whether that stock is undervalued can be very questionable.

    How the bargain hunting works

    In less than 10 minutes reading about stocks you will come across the terms overvalued and undervalued. If you do a bit more examination, you will find plenty of stocks that look cheap to one financial theorist, but expensive to others.

    How exactly can you calculate the value of a stock?

    Well, it depends. There are a number of different metrics that may answer that question under different conditions. Here are some simple methods.

    Use Price-earnings ratio (P/E)

    The price-earnings ratio is one of the simplest valuation metrics. Just divide the price per share by earnings per share.

    That’s the P/E. The lower the P/E, the less value it has.

    Many investors like to use trailing 12-month earnings because they’re tangible results. But many like using calculations for the next period. Well, investors care most about the future, not what a stock’s already done.

    EXAMPLE
    Stock price = $30/share
    Previous year’s earnings = $2/share
    P/E = 15

    Use price/earnings-growth ratio (PEG)

    The utilities, for example, trade at low P/E, indicating low expectations for future growth. HiTech companies frequently trade at high P/E because investors are counting on fantastic growth. Price/earnings growth (PEG) is transforming growth expectations into the valuation. To calculate this you have to divide P/E by annual earnings per share growth. With PEG, less than 1 is rated undervalued, and anything over 1 is rated overpriced.

    EXAMPLE
    Stock P/E = 15
    Estimated 5-year annual earnings growth: 15%
    PEG = 1

    Use price-sales ratio (P/S)

    When some company hasn’t earned, it has revenues, after all.

    A low P/S is cheap and a high P/S is expensive. For example, Twitter was flagged for having a high P/S early after its initial public offering. It was more than double of Facebook. But, that corrected thanks to disappointing results. Twitter’s P/S dropped from nearly 30 in December 2013 to about 5 as shares plunged more than 70 percent.

    EXAMPLE
    Stock price = $30/share
    Previous year’s revenues = $5/share
    P/S = 5

    Use price-dividend (P/D)

    Price-dividend is a less used metric, but it is quite good for measuring dividend stocks. To calculate, you have to divide the price by dividend. This ratio will tell you how much you have to pay to receive $1 in dividend payments. This is most useful in comparing a stock’s value against itself or against other dividend payers.

    EXAMPLE
    Stock X price = $30/share
    Previous year’s dividend = $1/share
    P/D = 30

    Enterprise value-sales is an alternative to price-sales, just like Enterprise value-EBITDA is an alternative to P/E. But you can use them, of course.

    The most important, all this is in the future, so you have no control over it.

    The only thing you can control is the price at which you can buy the stock. Moreover, whether you buy it at all at a settled price. Everything that happens in the future is in the shadow of the price. The same investment can be good or bad depending on what price you paid.

    How to find bargain hunting?

    Let’s say, it is impossible to estimate an investment without the context of its price. There are equity investments which are bad despite the price. Still, there aren’t any investments that are good despite the price. If there is no bargain to be had, the instinct of buying only at a bargain is the most important thing in investing.

  • Tilray Make More Cheerful The Manitoba Harvest

    Tilray Make More Cheerful The Manitoba Harvest

    1 min read

    Tilray Make More Cheerful The Manitoba Harvest 1

    Tilray makes the richest deal in an effort to jump into U.S. CBD market. Tilray buys hemp-food maker Manitoba Harvest for $419M.

    Tilray is acquiring the parent company of hemp-food maker Manitoba Harvest for up to $419 million in a cash-and-stock agreement. Cannabis producer from the Nanaimo quickens its entry into the North American CBD market. This deal will give Tilray ownership of a high-profile brand and one of the biggest hemp-food makers in the world. It also gives Tilray access to Manitoba Harvest’s retail network of 16,000 stores across the U.S. and Canada that includes Costco, Amazon, and Wal-Mart.

    Investors like this Tilray’s arrangement, with shares of the marijuana producer jumping close to 5% in intraday trading. But Tilray’s acquisition of Manitoba Harvest should encourage more than a temporary gain.

    Tilray Make More Cheerful The Manitoba Harvest
    With its new deal, Tilray appears to beat its biggest rivals, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC). It looks Tilray manage to stake its claim in a potentially huge market.

    Tilray Overtakes Aurora Cannabis and Canopy Growth in the U.S. Hemp Market

    The biggest Canadian marijuana producers, all three, weren’t modest about showing their tends to enter the United States’ market. The problem is, marijuana is illegal at the federal level. So, they can’t operate in the U.S. and hold their listings on major stock exchanges in such a situation.

    Hemp is a different story. By definition, hemp is cannabis that contains low levels of the psychoactive ingredient THC. The U.S. legalized hemp in December 2018. That opened the way for the major Canadian marijuana producers to jump into the U.S. hemp market.

    Tilray Make More Cheerful The Manitoba Harvest 2
    Canopy Growth was the first. The company published in January that it had ensured a license to produce and prepare hemp in New York state. Canopy also plans to spend between $100 million and $150 million to build a large-scale hemp production facility in New York.

    Meantime, Aurora Cannabis has been much more careful. CEO Terry Booth said that Aurora would “enter when it’s proper to enter, and when it’s legal to enter into the United States market.”

    Tilray’s smart move

    But Tilray’s acquisition of Manitoba Harvest sets it winning of both of the bigger rivals.

    Tilray’s acquisition of Manitoba Harvest seems to be a smart activity. The deal gives Tilray an immediate position in the North American hemp CBD market.  Tilray is financing the acquisition through both cash and stock. More than 1/5 of the buying price isn’t expected until six months after the transaction closes.

    This acquisition is just the latest exemplar of Tilray’s business courage. The company’s acquisition of Natura Naturals last month boosted its production capacity. That deal was part in cash and part in stock with much of the purchase price associated with reaching predefined quarterly production milestones over a 12-month period.

    Tilray showed an intention to win the total cannabis market. Its entrance into the potentially lucrative U.S. hemp market is the sign of that. The company’s chances of taking a leading role appear to be greater than ever.

    risk disclosure

  • Day trading stocks – How to find best trading platform

    Day trading stocks – How to find best trading platform

    4 min read

    Day trading stocks - How to find best trading platform
    Day trading stocks are powerful and exciting. Moreover, they are easy to buy and sell. With the progress of technology, the market is easily available. Speculating on prices going up or down in the short term is absolutely visible.

    Also, stocks are simple to understand and follow.

    Attempt to identify which stocks to trade intraday won’t be as challenging as it is in other markets. But if you want excitement, you can choose to trade in the complex technical world of cryptocurrencies or forex. Even if it burns your mind. Of course, you can manage with the triumphs and potential traps of Google and Facebook far easier.

    Day trading vs stock investing

    Before you start day trading stocks, you should analyze whether it surely suits your conditions.

    For example, intraday trading regularly expects a couple of hours each day. One of these hours has to be early in the morning. You have to be there when the market opens.

    Longer term stock investing, however, normally takes less time. It gives you more flexibility as to when you do your research and analysis.

    Further, intraday trading returns can beat those of long-term investing. This is the influence of leverage. This allows you to borrow money to capitalize on chances, to trade on margin, in other words. However, with grown profit potential also comes a greater risk of losses. Do you know that? Moreover, you will also invest more time into day trading for those returns.

    Somebody would say day trading is harder because you focus on day trading one stock only. This is because interpreting the stock ticker and spotting gaps over the long term are far easier. You also don’t have to hurry to make judgments when investing. Hence, this also means intraday trading can provide a more exciting and stimulating environment.

    Day trading stocks - How to find best trading platform 1

    Day trading stocks platform

    The major advantage of CFDs and spread betting over traditional assets investment is the ability to “go short“. It isn’t easy to make money in a collapsing market using traditional approaches. Day traders, however, can trade regardless of whether they think the value will rise or fall.

    Frankly, there is no precise answer in terms of day trading vs long-term stocks. Spotting trends and growth stocks in some ways may be more simple when long-term investing. On the other hand, intraday trading may yield you higher returns.

    How to day trading stocks

    The best day trading stocks can give you opportunities through price movements and opulence of shares being traded. This will provide you to enter and exit those opportunities quickly. We recognize these circumstances as volatility and volume. So, let’s break down these terms:

    Volume

    Volume is the total number of shares traded in a security or market during a specific period. Each transaction adds to the total volume. If, for example, in one day is made 32 transactions, the volume for that given day is 32.

    How a day trader can use this in order to make his stock picks?

    Volume is an indicator giving weight to a market move. If there is an unexpected spike, the strength of that movement is dependant on the volume during that time period.

    In simple words, the greater the volume, the more significant the move.

    How to use volume?

    If you have a solid capital, you need stocks with notable volume. Well, your brokerage account will possibly provide you with a list of the top 20-25 stocks. But you would like to expand your search a little wider.

    That way you can find opportunities that are below other trader’s radar. You have to find stocks with a spike in volume.

    For example, a stock mostly trades 2.5 million shares per day. But you notice that it usually trades 4 million shares by 9 AM.

    What does it mean? It means that you have made a good examination and you have a better opportunity.

    Hence, you have to choose the platform with the diligent screener for high volume stocks.

    Volatility

    Volatility refers to the amount of risk/unpredictability in the size of changes in a security’s value. If there is high volatility the value could be spread over a large range of values. This means the price of the security could change dramatically in a short frame of time. It is perfect for the fast-moving day trader.

    On the opposite situation, if it has low volatility, the security’s value will remain almost steady. But it will offer less opportunity for a quick profit.

    How to use volatility

    One way is to use the beta. The beta predicts the total volatility of a security’s returns against the returns of a relevant benchmark (normally the S&P 500).

    Day trading stocks - How to find best trading platform 2

    Day trading stocks

    A stock with a beta value of 1.4 has moved approximately 140% for every 100% in the benchmark.

    So, a stock with a beta of just .6 has moved 60% for every 100% in the comparative index.

    The way you use these parts will affect your possible profit and will depend on your strategies for day trading stocks.

    Day trading platform

    This is the general name for any software that helps you analyze, and make a trade. It may grant you access to all the technical analysis and indicator tools and resources you need. The best day trading platform may also identify trades and even automate or execute them in line with your strategy. No matter you’re after trading platform for beginners, or as an advanced trader. With more options than ever before, doing your research is more important than ever.

    Firstly, you’ll find out exactly how these platforms work. Also, you will touch upon the platform’s demo accounts, equipment, and regional differences.

    It may be difficult when you select a broker for day trading. As a trader, you want to pay several dollars per trade. That’s because you want low-cost trades. But a  platform with great tools is important to you too. Therefore, you have to pay more and you are agreed with that.

    Some day traders will tell you the platform design isn’t important so much. Day trading as a profession is risky business. So, it is very important to find the best trading platform.

    So, we feel free to recommend 2 of plenty we tested for day trading stocks.

    • Fidelity

    Fidelity Investments 1
    It is a full-service broker with over 19 million retail brokerage accounts and over $2 trillion in client assets.

    Fidelity charges $4.95 per stock trade, $4.95 plus $.65 per contract for options trades, and is highly regarded for its quality customer service, extensive retirement services, and all-around investment offering.

    The company’s tradition of putting clients’ interests “before our own is a big part of what makes Fidelity special,” the fund firm says in its mission statement.

    Streaming quotes are included as well as 48 total columns of data to choose from. Furthermore, the workflow is seamless, making it a breeze to transition into equity research or into the docked order ticket to place a trade.
    More about Fidelity you can read on our Wall of Fame.

    • TD AMERITRADE

    TD Ameritrade 1
    The company offers an electronic trading platform for the purchase and sale of financial securities. Such as stocks,  futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments.

    It also provides margin lending, and cash management services.

    Ameritrade develops and provides innovative brokerage products and services. They are tailored to meet the varying investing and portfolio management needs of individual investors and institutional distribution partners.

    Through its brokerage subsidiaries, it provides a dynamic balance of investment products and services that fit the changing needs of investors. The company’s full spectrum of services for the individual investor includes a leading active trader program.

    Such as long-term investor solutions, including a national branch system. As well as relationships with one of the largest networks of independent registered investment advisors.

  • Danske Bank Closed Branch in Estonia – Money Laundering Scandal Saga

    Danske Bank Closed Branch in Estonia – Money Laundering Scandal Saga

    1 min read

    Danske Bank Closed Branch in Estonia - Money Laundering Scandal Saga

    Danske Bank in Tallinn, Estonia

    Estonia ordered Danske Bank to close its local branch within months on Tuesday.

    Danish and Estonian regulators faced an EU investigation into their efforts to prevent one of the largest money laundering scandals ever.

    Danske Bank’s Estonian branch was found to have helped funnel some 200 billion euros ($226 billion) in suspicious payments from Russia, ex-Soviet states and elsewhere.

    According to OCCRP (Organized Crime and Corruption Reporting Project), Danske Bank Estonia is already implicated in other money-laundering schemes, involving billions of dollars from Azerbaijan flowing through the branch, some of which ended up in the pockets of European politicians who praised the Baku regime, a chronic human rights abuser.

    Another investigation, the Russian Laundromat, revealed that US $20–80 billion was moved out of Russia through a network of global banks, including Danske.

    Danske Bank Estonia is already implicated in other money-laundering schemes, involving billions of dollars from Azerbaijan flowing through the branch.

    This ultimatum was made public as Danish and Estonian regulators found on Tuesday they are being investigated by the European Union’s own banking watchdog.

    Laundry and run

    The Danish bank is being investigated in Estonia, the US, Denmark, the UK, and France for handling billions of dollars that flowed through its Estonian branch on behalf of non-residents from Russia and other former Soviet states between 2007 and 2015.

    One of the banks mentioned was the little-known Promsberbank, based near Moscow, that lost its license in 2015. Promsberbank collapsed in 2016 after it transpired that some three billion roubles had disappeared from its accounts.

    One of Promsberbank’s board members was Vladimir Putin’s cousin, Igor Putin. It looks he was involved in the Russian Laundromat scheme.

    The Danske Bank case focuses on money moved between 2007 and 2015. The questions about the supervision of the Danish bank were raised, prompting the EU’s executive European Commission to ask the European Banking Authority (EBA) to investigate.

    The EBA’s investigation will take two months, and if it finds a breach of EU law, it can make recommendations to the two regulators to address failings.

    Danske Bank is not alone

    Swedish television said it had uncovered documents connecting the bank to suspicious transactions with Danske in Estonia.
    And Swedbank defended its money laundering rules and controls.

    Swedbank spokesman Gabriel Francke Rodau said that fighting money laundering was one of Swedbank’s highest priorities.

    “We are comfortable with the systems and processes we have to prevent and avert money laundering. When we get signals, we act,” he said.

    The Swedish TV (SVT)  said that transactions by 50 of Swedbank’s clients should have raised red flags as they were companies with no visible operations, had unknown beneficial owners or were represented by suspected “goalkeepers”, people who only provide a front for an organization.

    “The investigation covers more than 1,000 of Swedbank’s clients in high-risk countries who are known from the money laundering scandal in Danske Bank,” SVT states on its website.

    The bottom line

    So, as we can see, criminals don’t need bitcoin to launder money.
    Traditional banks and fiat are good enough for that.

    risk disclosure

  • Gold Markets Break Out Above The Resistance

    Gold Markets Break Out Above The Resistance

    1 min read

    Gold Markets Break Out Above The Resistance
    Gold markets rallied significantly during the trading session on Tuesday. If the US dollar continues to fall, and it certainly shows itself likely to do so, the Gold markets will quite often rally by proxy. This market has a significant amount of resistance above. We are towards the top of the overall consolidated range, you have to keep in mind.

    At this point, there is a lot of sounds spreading to the $1350 level. So, this is a very bullish looking candle. It would not be surprising to see some sort of pullback in this marketplace but now the $1325 is support level. It was resistance before.

    If gold can break above the $1350 level, the break will become the gate opened, and the market should very promptly go towards the $1400 level.

    Hence, the idea of buying pullbacks in this precious metal sounds quite good. Well, as we can see, the strong uptrend certainly looks likely to continue.

    Commodity analysts have been turning more bullish on gold

    Take a look at this chart. You can see that the market just broke out above a bullish flag, and of course, have cleared a significant resistance. So look for value and you will be rewarded.

    But the $1300 level underneath is a massive floor in the market. It will be difficult for this market to break down through there. If so, then the $1275 level should offer support. There’s a couple of various places where the buyers will return. Look at short-term charts, but you should get the opportunity to pick up gold cheaply fairly soon.

    Maybe too many traders have rallied to buy on this level.

    It would make sense that the pullback happens.

    A precious metals bullion coin sales rebounded in January with the strongest monthly sales in two years. The U.S. Mint sold 65,500 troy ounces of the gold American Eagle and 4,017,500 troy ounces of the silver American Eagle in January 2019 – 12% and 24% increases respectively over the same month last year. In January 2018, investors purchased 58,500 troy ounces in gold bullion coins and 3,235,000 in silver bullion coins.

    Many analysts credit the Washington Gold Agreement of 1999 as the seminal document at the heart of this precious metal secular bull market. In it the top central banks agreed to gradually curtail the sale and lease of gold reserves, two activities that kept the price rangebound for much of the 1990s. At the time, it was stuck in the $270 to $300 price range.  From there, it never looked back.

    Fast forward to 2011 and we begin to see central banks moving from the net seller side of the gold fundamentals ledger to become net buyers. Some analysts applauded the simple retreat from sales and leases as a major victory for gold bulls. The move to becoming net buyers was the icing on the cake. In 2018, central bank gold purchases reached their highest level in fifty years according to World Gold Council data – a profound development the machinations of which have yet to be fully digested in the marketplace.

    The bottom line

    The gold market fresh 10-month high could be the start of a renewed uptrend in the precious metal. Because the market has broken important resistance levels, according to some economists.

    Commodity analysts have been turning more bullish on gold since last month. It came after the Federal Reserve signaled that it would pause its interest rate hike cycle for the foreseeable future.

    Analysts have noted that a “patient” U.S. central bank, will keep real interest rates low and provide less of a tailwind for the U.S. dollar. Growing economic risks and the rising fear of a global recession will also keep the pressure on equity markets, economists have also said.

    risk disclosure

  • Position Trader: Know When To Go Long or Short

    Position Trader: Know When To Go Long or Short

    Position Trader: Know When To Go Long or ShortPosition trades requires just a half of hour work per day, but profits can be great.

    By Guy Avtalyon

    Position trader has a long-term approach to trading. Rather than ready, set, go, it’s more like ready, set, stay for a while. It is a trading methodology that seeks to capture trends in the market.

    The idea is to reach the income without getting stopped out on the retracements. Hence, it is great for traders who prefer analysis but may not have as much time to dedicate to continually watching stocks.

    Here, we’ll give you some insight into the pros and cons of position trading. Including what it is, is it right for you, and how to start.

    When it comes to trading, do you go long or short?

    Many traders do not have the time to trade the most well-known styles such as Intraday, Day, or Swing Trading. All of these styles want more time, a higher capital base, and the ability to be trading early morning or afternoon while the market is open.

    Position trading is a unique type of trading that is defined by longer holds of security. It provides an alternative that is actually more profitable with less time.

     

    Typically position traders hold time anywhere from a couple of weeks to a couple of months, which is the resistance that will stall or reverse the trend.

    But, it applies the same fundamental research methods as shorter-term trading.

    Pros:

    • It requires less than 30 minutes a day
    • It’s fitting for those with a full-time job
    • Less stress compared to swing and day trading

    Cons:

    • You’ll watch your winning trades turn into losing trades, often
    • Your winning rate is too low. It is around 30 – 40%.

    Can you accept this?
    Excellent!
    Let’s go further!

    If you search online for position trading, you will find a decent amount of information about forex trading.

    But very limited information you can find about position trading stocks.

    Let’s say, the first challenge, then, is to find a definition of position trading.

    Position trader definition

    A position trader is a trader who holds a position, usually stocks, for the long-term. It can be from weeks to months and even years. Position traders usually use a combination of technical and fundamental analysis. That’s in order to make proper trading decisions and often do more to evaluate the companies behind the stocks.

    Position trader, often known as “buy and hold” trader, takes longer-term positions usually based on long-term charts and macroeconomic circumstances. These traders work in almost every market, including stocks, ETFs, forex, and futures.
    They aren’t only committed to buying. They can also hold long-term short positions making money as an asset decline in value.

    Position trading benefits

    Position trading is taking a position in an asset, expecting to participate in a major trend. Such traders aren’t concerned with minor price fluctuations or pullbacks. Instead, they want to capture the bulk of the trend, which can last for months or years.

    The main glamour of this approach is that it doesn’t require much time. Once the fundamental research is done, and the position trader has decided how they want to trade the asset, they enter a trade and there’s little left to do. They monitor their position from time to time. But since trivial price fluctuations aren’t a concern, the position requires little oversight.

    Who is a position trader

    It is the opposite of the day trader. Day traders make trades each day and spend hours trading.

    Swing trading is less time-intensive than day trading since trades last a couple days to several weeks. But this still expects time to monitor and find new positions each week.

    Position traders usually make zero or three trades a year in assets they own. Swing traders would make a few hundred trades per year, and day traders would make hundreds to thousands of trades at the same time-frame.

    Where to find trends

    Support and resistance let you buy low and sell high.

    An uptrend occurs only after breaking above the highs of a range. So, if you want to enter your trades before the price breaks out, you have to do so at the moment when the market is changing.

    And the best place to go long is at support, the point when the market is moving.

    Trends often begin with a breakout of a range or other chart pattern that had limited the price action. So, when the price breaks out of the pattern it can often trend for some time. This is especially true if the chart pattern lasted for a number of years. That indicates the price could trend for a number of years once it breaks out.

    Chart patterns range, triangles, cup and handles, head and shoulders, an inverse head and shoulders, all indicate a trend could begin or re-rise.

    As an investor, you want to pick a stock that will benefit you over time from a long-term trend.

    The timeline isn’t a fixed and unchangeable part,  you might hold a position for a week to even years.

    In an aim to ensure that your investment can pay off over time as a position trader, you need to put a lot of emphasis on fundamental analysis. You have to do plenty of research about potential companies, examining press releases, earnings reports, and analyzing charts before making decisions about which stocks to trade.

    But position trading is not the same as long-term investing.

    When position trading you must have this approach: it’s actually the last level of trading before you called it long-term investing.

    The main difference between position trading and long-term investing is that the former can be a long-term position, but depending on the trajectory of the trend, it might not be. Hence, the latter is only a long-term position.

    Why use position trading

    This is a simple but important fact: If you want to be a successful trader, it’s important to figure out what type of trading the best suits you.

    This is usually the sum of various factors:

    • The size of your account
    • The amount of attention and time you can dedicate to trading
    • How fast you want to grow your account
    • And last but not least, of course, your risk tolerance.

    Your trading experience also matters.

    We wouldn’t tell anyone to jump right in and try to take advantage of pre-market trading, for example.

    This is a more advanced method that requires experience and courage.

    How to find position trades

    There are several ways to position trading. For example, buying assets that have strong trending potential but haven’t started trending yet. Or alternatively, buying an asset that has already begun to trend.

    Buying assets that have already begun to trend is a less intensive attempt. Hence, it is favored by many position traders.

    Finding a trend is the main component of a position trade. This will usually eliminate any assets trading within a range.

    Unless the price range is very large and crosses for many years. In such a case, it could take years for the price to move from one side of the range to the other. But this suits the position trader very well.

    Is a position trader a long-term investor?

    No, it’s different. Being a trader, what might attract you to try this style?

    The main benefit, position trading is somewhat accessible to new traders. The speed isn’t as wild as day trading or swing trading. So you have a bit more time to draft your course of action and build a trading plan.

    Position trading is less demanding on a day-to-day basis. You don’t have to watch charts on an hourly basis. All that is need is to check your investment to make certain it’s operating according to the trend you identified previously.

    On a deeper level, position trading can also be more attractive in various types of markets.

    For example, if there is a bull market in a scene and there are strong rising trends, it can be a good time to engage in position trading.

  • Facebook Accused of Behaving Like ‘digital gangsters’

    Facebook Accused of Behaving Like ‘digital gangsters’

    2 min read

    Facebook Accused of Behaving Like ‘digital gangsters’
    UK parliamentary commission has accused Facebook to act as a ”digital gangsters”.

    After 18 months, 73 witnesses, 4,350 questions, and innumerable hours of testimony, British lawmakers presented a finding on Facebook’s year. Direct from hell.

    A report from this UK body has taken direct aim at Facebook CEO Mark Zuckerberg, accusing him of “contempt.”

    A UK parliamentary committee published a report on Monday, 02/18/2019, accusing Facebook of putting profit over privacy, misleading lawmakers, and being a “digital gangster” that considers itself above the law.

    British politicians also said democracy was “at risk” from foreign countries trying to influence UK elections through social media ads.

    The new report by British lawmakers is brutal to Facebook and it’s CEO Mark Zuckerberg. They said that Facebook “intentionally and knowingly” obstructed U.K. data privacy and anti-competition laws. And that’s why it urgently needs to be regulated and investigated.

    Facebook has shown the arrogant and dishonest face.

    Mark Zuckerberg refused to present himself to the committee.

    To cite the report:

    “Facebook seems willing neither to be regulated nor scrutinized


    Facebook intentionally and knowingly violated both data privacy and anti-competition laws 


    We consider that data transfer for value is Facebook’s business model and that Mark Zuckerberg’s statement that ‘we’ve never sold anyone’s data’ is simply untrue.”

    In the 108-page document, lawmakers called for the making of an independent regulator for social media sites and a mandatory code of conduct that. If someone breaches it, their suggestion is – “large fines.”

    Mark Zuckerberg continually refuses to show the leadership and personal responsibility that should be expected from someone who sits at the top of one of the world’s biggest companies, says the committee.

    Damian Collins, chair of the committee, said on the committee’s website: “Mark Zuckerberg continually fails to show the levels of leadership and personal responsibility that should be expected from someone who sits at the top of one of the world’s biggest companies.”

    This was, however, not the only reason why British politicians accused Facebook of behaving like “digital gangsters” in the online world.

    “Companies like Facebook should not be allowed to behave like ‘digital gangsters’ in the online world, considering themselves to be ahead of and beyond the law,” the report said.

    “We are open to meaningful regulation and support the committee’s recommendation for electoral law reform,” Karim Palant, Facebook UK public policy manager, was quoted as saying by The Guardian.

    But, something has to be noted, the problem is bigger than just one company. Google and YouTube, which are barely mentioned in the report, play almost as important a role in the dissemination of misinformation online. And they are happy to profit from it. As the information commissioner, Elizabeth Denham has warned, we are now being sold political ideas online with the same techniques that are used to sell shoes and holidays.

    Buying the wrong ideas is less obvious than the pain of old-fashioned shoes. The political sale is much more easily made.

    There is a paradox of the amazing effectiveness of Facebook and YouTube when it comes to the distribution of ideas.

    Some people trust what they find there.

    The online channels, seem to offer intimacy to their users. But this fake intimacy is, in reality, a place where people can be more manipulated than ever before. Well, the advertisers know much more about us than they could before we entered it.
    But, Facebook wants you to know that it is turning. Its ads tell you so. Its PR hires tell you so.

    “While we still have more to do, we are not the same company we were a year ago,” Karim Palant, U.K. public policy manager at Facebook, said.

    But the report requests for significant changes to the way the UK regulates its elections and technology, including:

    • Stricter rules that will force tech firms to take down illegal content on their site
    • A code of ethics that defines “harmful content”
    • An independent regulator to oversee enforcement of that code
    • New laws around political advertising online

    The UK Culture Secretary Jeremy Wright will head to the US this week to meet with the heads of major tech firms, including Zuckerberg. Wright wants to talk about dangerous content online.

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  • New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release

    New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release

    2 min read

    New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release
    We are all aware of the problem of fake news online, and not only online.  

    Elon Musk-backed AI Company claims it made a Text Generator that’s too dangerous to release.

    What is it all about?

    The OpenAI has developed an AI system that can create such impressive fake news content. But the group is too afraid to release it publicly. Their fears are referring to misuse.

    They’re letting researchers see a small part of their work.

    So we cannot say they are hiding it completely. But, the group’s fear here is very weird.

    The developers used 40GB of data pulled from 8 million web pages to train the GPT-2 software. That’s ten times the amount of data they used for the first of GPT.

    This time they trailed dataset together by trolling through Reddit. And they were selecting links to articles that had more than three upvotes. When the training process was complete, they found that the software needs a small amount of text to continue writing.

    The software has trouble with “highly technical or esoteric types of content”. But when it comes to a more conversational type of writing it generated “reasonable samples” 50 percent of the time.

    “Our model, called GPT-2, was trained simply to predict the next word in 40GB of Internet text,” writes a new OpenAI blog. “Due to our concerns about malicious applications of the technology, we are not releasing the trained model. As an experiment in responsible disclosure, we are instead releasing a much smaller model for researchers to experiment with, as well as a technical paper.”

    AI is good but risking

    OpenAI, a nonprofit research company backed by Elon Musk, Reid Hoffman, Sam Altman, and others, says its new AI model, called GPT2 is so good and the risk of malicious use so high. That’s why they are breaking from its normal practice of releasing full research to the public. Instead, they will allow more time to discuss the ramifications of this technological discovery.

    How does it work? Here is one example.

    The software was supplied this paragraph:

    ”In a shocking finding, scientist discovered a herd of unicorns living in a remote, previously unexplored valley, in the Andes Mountains. Even more surprising to the researchers was the fact that the unicorns spoke perfect English.”

    Based on two sentences, it was able to continue writing a news story for another nine paragraphs in a fashion that could have seemingly been written by a human being.

    Here are the next few sentences that were produced by the machine:

    ”The scientist named the population, after their distinctive horn, Ovid’s Unicorn. These four-horned, silver-white unicorns were previously unknown to science.

    Now, after almost two centuries, the mystery of what sparked this odd phenomenon is finally solved.

    Dr. Jorge PĂ©rez, an evolutionary biologist from the University of La Paz, and several companions were exploring the Andes Mountains when they found a small valley, with no other animals or humans. PĂ©rez noticed that the valley had what appeared to be a natural fountain, surrounded by two peaks of rock and silver snow.”

    The Guardian was able to take the software for a test and tried out the first line of George Orwell’s Nineteen Eighty-Four: “It was a bright cold day in April, and the clocks were striking thirteen.”

    The AI program selected among the tone of the choices and proceeded with own dystopian science fiction:

    ”I was in my car on my way to a new job in Seattle. I put the gas in, put the key in, and then I let it run. I just imagined what the day would be like. A hundred years from now. In 2045, I was a teacher in some school in a poor part of rural China. I started with Chinese history and history of science.”

    What a story!!!

    Can you imagine what such a system could do, for example, with president candidate biography?

    The assumptions of this are why OpenAI says it’s only releasing publicly a very small portion of the GPT-2 sampling code.
    It’s not releasing any of the dataset, training code, or “GPT-2 model weights.”

    The OpenAI blog announces this:

    “We are aware that some researchers have the technical capacity to reproduce and open source of our results. We believe our release strategy limits the initial set of organizations who may choose to do this, and gives the AI community more time to have a discussion about the implications of such systems.”

    Fake news is the obvious potential downsides. The AI’s is unfiltered nature. It is trained on the internet, so it is not hard to inspire it to generate biased text, conspiracy theories and so on.

    “We need to perform experimentation to find out what they can and can’t do,” said Jack Clark, the nonprofit company’s head of policy. “If you can’t anticipate all the abilities of a model, you have to prod it to see what it can do. There are many more people than us who are better at thinking what it can do maliciously.”

    Yes, keep this AI away from using a bit more time, please.

    The bottom line

    AI, Artificial intelligence can be extremely useful for everyday life to the implementation in the stock market. A lot of modern tools we are using every day have some part of AI. It is a high-tech’s geeks dream to implement AI everywhere. But it isn’t possible. Something has to be done by humans.

     risk disclosure

  • Cryptocurrency Stocks – The Best to Buy in 2019

    Cryptocurrency Stocks – The Best to Buy in 2019

    Cryptocurrency Stocks - The Best to Buy in 2019Instead of buying cryptos, you can invest in it, you just have to choose will you do it directly or indirectly. Traders-Paradise explains how to invest in cryptocurrency stocks.

    By Guy Avtalyon

    Cryptocurrency stocks are continuing to attract new investors in 2019. However, most beginners have problems finding the next cryptocurrency to invest in 2019 We understand how upsetting it is when you first begin looking for cryptocurrency investments. And that’s why we want to help.

    We can understand your wondering “Should I be investing in Bitcoin or Ethereum or some other crypto?”

    We want to explain how to invest in cryptocurrency stocks.

    This is for you, beginners.

    You’ll have to decide on the way how you want to invest in cryptocurrency: directly or through, for example, the stocks, which is indirectly way.

    Then, if you want to invest directly, you’ll need to decide if you want to be in direct control of your cryptocurrency, or if you would like to use some custodial service.

    A lot of things is already said about the future of cryptocurrencies. Some people believe that the cryptocurrency period won’t last long. On the other side, the others think they’re going to be around forever.

    It is tricky to predict the future of cryptocurrencies, but what we do know is that the demand of cryptocurrencies is only increasing. One of the reasons for that is because of blockchain technology, which is the principal technology behind all cryptocurrencies.

    But before you start, follow Warren Buffett’s advice  “Never invest in something you don’t understand”. Start to read more about cryptocurrencies to go get a sense of information before you dive into the world of cryptocurrencies.

    When you start your learning task, you will find a lot of blogs and videos online. Some of them are very ignorant, but some are too difficult.

    They are either too specific or too general. The learning path isn’t always clear.

    So, let’s make it easier.

    To start investing in cryptocurrency stocks directly you’ll need:

    1. A cryptocurrency wallet. This will provide you with direct control of your cryptocurrency.
    2. A method of obtaining cryptocurrency. Honestly, you will need a cryptocurrency exchange or broker to buy cryptocurrency or to trade cryptocurrency.
    3. A method for selling cryptocurrency. Part of investing is occurring in the ability to cash out. To cash out you’ll probably need to change your cryptocurrency back to some top coin like Bitcoin, Ethereum, or Ripple. So, you’ll need access to the platform that lets you trade those for fiat currencies.

    To start investing in cryptocurrency stocks indirectly through a stock, you’ll need

    First, you’ll need to select between a limited set of options. They include:

    1. A cryptocurrency IRA.
    2. A stock that is related to cryptocurrency.
    3. A private fund which means you’ll need to be an accredited investor and meet certain capital requirements.
    4. Each method of investing in cryptocurrency has its own pros and cons.

    If you know something about the cryptocurrency markets, you then know that 2018 wasn’t an excellent year. Bitcoin has lost 74% of its value last year. The most other major cryptocurrencies have done even worse. Last year, Ripple, Ethereum, and Litecoin are down by 80%, 81%, and 85%, each.

    But, there’s still a lot of interest in blockchain technology and cryptocurrencies. So, it’s possible that we may see a flood in bitcoin or some of the other digital assets.

    That’s why, instead of investing directly in cryptocurrencies, it could be a smart idea to put your money in a business that will do just nice no matter what happens in the cryptocurrency world. And that will do even better, of course, if the crypto world has a good year in 2019.

    What are the best cryptocurrency stocks to buy in Traders Paradise’s opinion?

    1. Bitcoin Investment Trust (GBTC) 

    Barry Silbert has been a figure behind many cryptocurrency trends over many years. He was best recognized for Second Market. It was a well-known system to trade stocks in private companies. His Digital Currency Group (DCG) was originally a part of Second Market, combining a cryptocurrency trading firm called Genesis Global Trading with an asset management firm, Grayscale Investments.

    The Bitcoin Investment Trust (OTCMKTS: GBTC) brings digital currency investment to small investors. It is currently traded through what was called the “pink sheets.” The attempt to get a listing through the NYSEARCA platform having failed in September last year.

    Some investment gurus called GBTC a joke. But they had to face it has won the race and become the first publicly traded Bitcoin fund.

    Moreover, the GBTC value is 85% greater than the value of the bitcoin it has. There are reasons for this. For one, you can buy GBTC in a tax-advantaged account like a retirement account. GBTC is publicly traded, which means you can get out any time you want, and the coins are being kept safely.

    One of the primary media for cryptocurrency news, Coindesk, is a subsidiary of Digital Currency Group (DCG).
    If you are a small investor or investing in a retirement account, GBTC may be the best bet you have for profiting on the future of Bitcoin Nvidia Corporation (NVDA).

    2. Nvidia Corporation (NVDA) cryptocurrency stocks

    Even if you’re not excited in cryptocurrencies, Nvidia Corporation (NASDAQ:NVDA) is a stock worth owning. The stocks increased by nearly 70% during 2017, revenue was growing almost 40% during the same fiscal year. This company is currently possible to reach over $8 billion in revenue and take 25% of that revenue as the net income.

    Nvidia is also a very valuable cryptocurrency stock, with a market cap of $111 billion. It is almost 14 times bigger revenue estimated for this year and a tremendous 53 times earnings. High-performance graphics processors, originally designed for video games, appeared as great for the serious work of finding decryption keys that symbolize crypto-coins. But that is not the only reason to buy it.

    The best reason to buy Nvidia stock is its cloud. Data centers are now going through their first upgrade cycle, to support Artificial Intelligence (AI) applications like voice interfaces, self-driving cars, and the Internet of Things (IoT).

    Instant response is the key here. The low-end processor clouds like those of Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), just don’t have the processing power needed for the next decade’s growth markets.

    Graphics chip leader NVIDIA has done greatly well in recent years thanks to booming sales for PC gaming and data center applications.

    3. Square (NYSE:SQ)

    Cryptocurrency stocks Square has developed quite a bit over the past few years. At first, it was a niche manufacturer of payment processing hardware for small businesses into a lender.

    Its growth isn’t only impressive. It continues to rise. The company’s revenue increased by 68% year over year in the most recent quarter. Also, the payment processing volume continues to rise, the services-based revenue is 155% higher than a year ago. Also, there is the Cash App, a great source of potential income.

    Square allowed its Cash App customers to begin buying and selling Bitcoin last year. When cryptocurrencies start to experience a recovery, it could evolve into a significant part of the market.

    This is our opinion based on personal experience, paste performances, and data analysis. You may have some other feeling about where to invest. And it is alright. That hunch you have could lead you to the incredible gains. But, our suggestion is to read and examine.

     

  • Swedish Krona set on volatile January Inflation

    Swedish Krona set on volatile January Inflation

    2 min read

    Swedish Krona set on volatile January Inflation
    February 18, 2019
    The Swedish krona is the worst-performing significant currency this year. It faced volatility on Swedish inflation data Tuesday. It looks the markets may be underestimating the risk for a surprise.

    According to SEB AB January is the month of the year with the most volatile inflation data. But a check of one-week price fluctuations in the euro-krona exchange rate implies traders are relatively satisfied.

    One-week implied volatility in the cross is trading around 50 basis points below its one-year average. The relative premium to own exposure to short-term risks stands below par. That suggests investors can hedge themselves through insignificantly under-priced option plays.

    The Swedish krona has been damaged this year by doubt that the country’s central bank can stick to a plan to hike interest rates in the second half of the year.  Karl Steiner, a strategist at SEB said that Inflation is the second-biggest driver for the krona among Swedish data and events, after Riksbank policy announcements.

    “Stars seem to be aligning for out-sized moves in the krona considering the event risks that lie ahead,’’ said Fredrik Lockne, an options specialist at SEB. “Implicit volatility looks rather cheap, in particular over the two-week tenor which captures both inflation and growth data.’’

    January data has the obvious inclination for downside surprises in headline inflation, at 71 percent of the time over the past seven years, SEB said. Swedish consumer prices are forecast to have dropped 0.7 percent in January on a monthly basis, from a 0.4 percent rise in December, as many stores cut prices after Christmas holidays. Inflation is forecast at 2.2 percent in annual terms, versus 2.0 percent in December.

    Swedish Krona set on volatile January Inflation 1

    Image source Bloomberg: Swedish krona

    Best Exchange Rate: 10.6955 on 29/08/2018
    Worst Exchange Rate: 0 on 18/02/2019
    Mid Exchange Rate: 10.3044 on 17/07/2018

    Other currencies:

    EUR/USD

    The trend is bearish in the 1-hour chart. Intraday resistance is at 1.1341 price level. This means, as long as the price stays below 1.1341 resistance level, you should look for sell trades. If bullish candlestick closes above 1.1341 critical resistance level, then down trend is going to end.

    GBP/USD

    The trend is bearish in the 1-hour chart. Intraday resistance is at 1.2995 price level. As long as the price stays below 1.2995 resistance level, you should look for sell trades. If bullish candlestick closes above 1.2995 resistance level, which stands as critical, then down trend is going to end.

    USD/JPY

    The trend is bullish in the 1-hour chart. Intraday support is at 110.08 price level. As long as the price stays above 110.08 support level, you should look for buy trades. If bearish candlestick closes below 110.08 critical support level, then up trend is going to end.

    USD/CAD

    The trend is bullish in the 1-hour chart. Intraday support is at 1.3195 price level. So, as long as the price stays above 1.3195 support level, look for buy trades. If bearish candlestick closes below 1.3195 critical support level, then up trend is going to end.

    USD/CHF

    The trend is bearish in the 1-hour chart. Intraday resistance is present at 1.0110 price level. So, as long as the price stays below 1.0110 resistance level, look for sell trades. If bullish candlestick closes above 1.0110 critical resistance level, then down trend is going to end.

    risk disclosure