Author: Editor

Options – What Are Options and How To Use Them

2 min read

Contracts that grant the right but not the obligation, to buy or sale of the underlying asset to which they relate at the price indicated in the option contract until a certain date.

They can be issued on the basis of other financial instruments, financial non-material or real property. But behind each option must stand the asset to which the option is related.

The historical findings

There are historical findings that confirm their use during the Antiquity period. (The first options were used in ancient Greece to speculate on the olive harvest.)

But the fact is, trade options made great prosper in the last 50 years.

The most significant event that enabled their popularization was the establishment of the first arranged stock exchange option in Chicago in the year 1973. And under the name of the Chicago Board of Options.

Since then, a number of stock options have been established in the US and around the world.

Options are a very useful financial instrument because of their characteristics.

They offer investors a range of options. Traders and investors can use options as an instrument for speculation, Also for the protection and management of market risks (hedging) or for arbitration.

In this way to any investor in accordance with its goal of trading, current market position, expectations, and preferences.

According to the risk and personal preferences, options can create the desired position.

The right to buy is a call option and the right to sell is a put option.

Once again, options are the type of derivative. People a bit familiar with derivatives may not see an evident difference between this definition and what a future or forward contract does.

To clarify this thing. Futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for corn and has an obligation to deliver real corn to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”

Once again, options are a great way to add flexibility to your portfolio since they can be used for both hedging risk and speculation.

Learn more to understand the World of Options

The benefits of options

The benefits that options offer are high profitability, risk limitation, financial leverage, flexibility. And, which is important too, the ability to stay on the market without the need to own a marketable asset.

Unfortunately, the general public knows little about these instruments. So, part of the investors is not able to trade options because of ignorance about their use.

The options, like all derivative instruments, are complex in nature. And we have to know their capabilities and limitations. So that we can effectively use them for the stated purposes.

Trading with options is also specific and differs from trading with conventional financial instruments. That’s why the investor needs to be well aware of trading rules with options.

The brief review of options basics:

1) An option is a contract which brings to its holder the right, but not the obligation, to buy (in the case of a call) or sell (in the case of a put) shares of the underlying security at a specified price (the strike price) on or before a given date (expiration day).

After this given date, the option ceases to exist.

The seller of an option is, in turn, obligated to sell (in the case a call) or buy (in the case of a put) the shares to (or from) the buyer of the option at the specified price upon the buyer’s request.

Option contracts usually represent 100 shares of the underlying stock.

2) Strike prices or exercise prices. These are the stated price per share for which the underlying security may be purchased in the case of a call or sold in the case of a put. By the option holder upon exercise of the option contract. The strike price, a fixed specification of an option contract, should not be confused with the premium. That is the price at which the contract trades, which fluctuates daily.

Equity option strike prices are listed in increments of 21/2, 5, or 10 points, depending on their price level.

3) Regulation to an option contract size or strike price may be created to account for stock splits, mergers or other corporate actions. Overall, at any given time a particular option can be bought with one of four expiration dates.

4) Option holders do not enjoy the rights due to stockholders.

They don’t have voting rights, regular cash or special dividends, etc. A call holder must exercise the option and take ownership of underlying shares to be eligible for these rights.

5) Sellers and buyers in the exchange markets, where all trading is conducted in the competitive manner of an auction market, set option prices.

Risk Disclosure (read carefully!)

12th August 2018
Opera wants to win some fans in the blockchain world

1 min read

Opera wants blockchain and a cryptocurrency wallet. Well, this great news! Opera is to become the first desktop browser to include a cryptocurrency wallet. Users will not need third-party extensions or applications. That is an interesting approach to security. But handling cryptocurrencies is about to get easier.

Opera wants blockchain

The cryptocurrency wallet integrated into the Android version of Opera since June of this year since desktop wallet is synchronized with it. If you want to send some payment, you should sign the transaction using your phone’s built-in fingerprint reader, rather than typing out a long passphrase.

And that is the most important question about security. Passwords can be forgotten. They can be stolen. The biometric access, not perfect but it is, in theory, more secure and less liable to result in irretrievable coins. Funds and assets and the secure cryptographic keys associated with them are stored locally on the user’s phone, not on a remote server somewhere. To connect the mobile wallet to the desktop browser, the user only has to scan a QR code.

Opera wants blockchain and to become the first desktop browser to include a cryptocurrency wallet.

“After making crypto payments smooth and easy on mobile, we wanted the find the perfect solution for PCs”, said Opera EVP of Browsers, Krystian Kolondra, in a statement. “We realized the best way is to utilize our new mobile crypto wallet technology and to give our PC users access to it.”

Opera is making a big bet that blockchain and distributed apps (called Web 3.0) will become mainstream in a significant way. By adding this attribute, it places its browser at the essence of it.

“Our next aim is to make crypto-integration mainstream,” said Kolondra. “We believe blockchain technology has the power to transform the web of tomorrow and expect it to make a big difference in the years to come.”
Opera promises its browser cryptocurrency integration will roll out to users “soon.” Who wants to get a sneak peek can subscribe on https://www.opera.com/crypto.

You might be interested in Project Libra: Facebook’s new currency based on a blockchain
Risk Disclosure (read carefully!)

10th August 2018
Successful Forex traders – What are the characteristics of them?

2 min read

As we know almost 95% of Forex traders fails. But 5% have success.

So what is it that puts these traders in the top 5 percent?

Typical reasons such as experience, discipline, and fortitude?

We’ve all heard about that. But what is it that really makes them spot?

In this article, I’m going to analyze lesser-known characteristics that successful Forex traders have in common.

When I say successful Forex traders I mean consistently profitable.

Let me be crystal clear.

So many people talk about whether anyone can consistently profit from trading Forex.

I know because I made big research for finding proof on the internet. I found articles, testimonials, videos… And what I found is that is the truth.

Anyone can make consistent profit trading Forex and don’t ever let anyone tell you something different.

And what did I find?

What’s the secret to success?

I have to say, the only secret is that there is no secret.

But there is a piece of advice that will fully determine whether or not you are profitable. It’s a kind of habit.

Every single successful Forex trader has it in common, and it’s not something you can negotiate.

Successful traders never give up!

I know because I found the stories.

The ones about how some man tried for 3 years to make this Forex thing work, but with poor result. And he thought he just wasn’t for it. He failed because he didn’t recognize that his breakthrough moment was waiting for him just around the corner.

That is the problem.

There are so many traders who were fighting for years and suddenly took a break just before they made progress.

I know, they were exhausted by a large number of failures. But if they had a couple of trades more, they would have succeeded.

Never give up! This applies to all important things in life, but it’s never been truer than it is when it comes to becoming a successful Forex trader.

They don’t “lose”

Ok, every Forex trader has losses. That’s true.

But, there is some difference between how the novice trader loses and how the successful Forex trader loses. What makes this difference?

In one word – mindset.

Most novices in the Forex market view a loss as a bad thing.

Oh, no! It’s only one step on your way to winning.

The successful trader doesn’t view it as bad or wrong. It’s not a penalty because the Forex market isn’t able to do such things.

Forex market doesn’t know where you entered the market or where your stop loss was.

So, where you find a possibility to be punished? Nowhere, it is completely impossible.

Yes, I know! Making money is much more enjoyable than losing money.

If your trade doesn’t go your way doesn’t mean you should take it personally or emotionally. Stop to think like this and prevent this hole to be deeper! The successful Forex trader has the mindset that a loss is simply feedback.

Losses are useful, they are very good teachers, they can be a powerful way to learn. Even a trade that ends up as a loss can be the right decision. How is that possible? If you’ve defined your edge, and the setup met all of your criteria to enter the market, then you did all you can do. The rest is up to the market. But some days the market just doesn’t play along. It isn’t your fault.

Instead of giving up, you should ask yourself “would I take this same setup again next week if it presented itself?”

If your answer is YES you are on the right path. But every time your answer is NO, you need to take a step back, figure out where something went wrong and correct it for the next trade.

Each loss is an investment in your trading education. This is a constructive way of spending your own money. It is an investment with the best Forex trainer in the world – the market.

They use price action

Actually, they are using some form of price action as part of their trading strategy. Because price action plays a major role in any strategy.

It can develop and make stronger any trading strategy by providing areas to watch for potential entries as well as profit targets.

A successful Forex trader has defined edge.

Why the edge is so important?

An edge is everything about the way you trade. An edge can help you to put the odds in your favor.

Edge is a combination of the time frame you trade, your risk to reward ratio, the key levels you’ve identified, the price action strategies you use, etc.

It is also important for your pre and post-trade routine. How do you handle losses or what do you do when you win? All of this, make up your trading edge.

You don’t have to master all of these factors that make up your edge at once or to start putting the odds in your favor.

It is better to master one set of factors and then leisurely expand to others to further clarify your edge.

This should be the favorite way to learn. Become a master of two or three factors. You’ll find much less stressful than trying to become good at twenty factors. When you’ve mastered three or four things, expand the others to put together the odds in your favor.

Successful Forex trader never tries too hard.

Because the successful forex traders know, trying hard is a sign that something isn’t right. Trying to force a trading strategy to work will only lead to destructive behavior, such as emotional trading.

I remember the story of my friend when he first started trading Forex. He was spending countless hours studying setups. He spent hours and days and weeks doing so, ending up taking a completely different trade setup only to watch the original setup move in the intended direction without him.

He was trying too hard to make it work. As soon as he stopped over-analyzing trade setups and trying to make them work, his profit curve started to rise.

Now he is spending 20 minutes per day looking at his charts.

They think in terms of money risked.

You’ve never met a successful Forex trader who didn’t know how much money they were risking on any given trade.

Surprising, the small number of traders don’t think about how much money is at risk before opening a trade. This is because they’re using an arbitrary percentage to calculate risk, such as one or two percent of their trading account balance.

The trader’s only interested in how much money is at risk – they could care less about the percentage. They always define their risk in terms of money.

They may use a percentage as an entrance of how much they’re allowed to risk, but when it comes to fully accept the risk before putting on the trade, they think only about money.

And successful Forex traders know when to walk away.

Walking away can be especially difficult after a trade. Our emotions are running wild and often take the best of us. Taking a break after a win will allow your emotions to settle. After the win, you may feel excited and proud of yourself.

Yeah, you have every right to be. But pride and excitement are inadmissible in the Forex market.

After a loss, you can go straight to the trap if try to go through the charts again looking for a new setup. Remember, your loss in some trade is just feedback. Take it as a signal to look at what you could have done differently. Successful Forex traders never do that.

The key to becoming successful isn’t about eliminating emotions after a loss, it’s about channeling them in a way that will make you a better trader.

And let’s go to the top of this article.

The only way you can fail at becoming a successful Forex trader\ is if you give up. The next time you lose a trade just remember that not giving up is the #1 key to becoming a successful Forex trader.

And you know what?

Becoming a successful Forex trader is a marathon, not a sprint. So, keep it in your mind!

Risk Disclosure (read carefully!)

8th August 2018
Can you become a millionaire by trading forex?

(Updated October 2021)

3 min read

Can you become a millionaire through forex trading? Do you know someone who has never dreamed of being a millionaire?

Everyone can see the lives of celebrities and millionaires every single day. Who wouldn’t like the same lifestyle, expensive cars, luxurious houses, swimming pools, parties…

All that desires, all that false matters, false emotions, come from media advertising and TV.

OK, not everything is false. But that causes the other question: can I be a millionaire trading forex?

Yes, you can become a millionaire trading forex.

>> Check out this Become A Millionaire Calculator

But you have to know it is not easy like you see on the internet advertising and TV.

It depends on how much money you start trading.

If you start with $5,000 and make 10% of your capital each month, yes, you will be a millionaire after 5 or 6 years. Just 10% of your capital each month can make you a millionaire.

And if you start with $100K you will be in 2 years. You can’t do that in any other industry.

Tell me, where you can start at $5K and become a millionaire in a few years.

But remember, if your dream is to become indecent rich in a week or a month, forget about the forex. Go far away from forex.

Because you will lose all your money, your car, your house and in the end, your family.

This reality is hidden from you.

Yeah, I know, every broker will tell you tales about doubling your money overnight.

Hm!

True is that they prefer you to lose your money. As soon as possible!

Contrary, if you follow the correct way for a few years they will not see any considerable profit from you. Over the route of several years, you will be the one taking the true profits!

And they don’t like that. This is not in their best interest because 90% of brokers are just market makers and have no relation with the market and banks.

They create a virtual market for you and from time to time let you trade and they make money when you lose.

And they lose when you have winning trades.

Their interest is to make you lose as soon as possible, then they try to motivate you to add more funds to your account and lose your funds more and more.

If you really want to be a millionaire in the forex market forget about making money on the easy and fast way. Such thing like cold cash in the forex market does not exist. You will need time to learn how to trade forex. To learn how to develop a strategy with more than 60% probability to win. You will have to learn about money management. Actually, you should start trading on a demo account.

Trading is art.

People trade to make money in forex but forex trading is not like making money.

You must understand the way of making money with the positions you are opening and the reasons behind it.

That’s why you have to be patient!

Trade for 2 or 3 months on a demo account. If you make success on a demo account, you can open a real account and start real trading.

But, if you don’t have success on a demo account then something is not right. Perhaps your strategy doesn’t respect money management rules. Or something else you are doing wrong.

After you see the mistake you can correct it and after that restart trading on a demo account until you get recurring success.

It is right to say that the Forex market is only for risk takers. It can’t be a permanent source of income but it can be a decent source of income. But only if you get the right guidance through the right adviser or build up your own knowledge to start trading with high precision.

If you are new to trading you can start with the small investment. And you have to keep revising your risk on the higher side to earn more.

This can be the right approach. But the most important is that you should have the right guidance from the best signal provider.

For everyone who asks: Can I become a millionaire through forex trading, there are two answers:

Yes, you can

and

No, you can’t.

Anything is possible in this world.

However, you will be faced with some challenges like finding a good broker that doesn’t cheat on you. Maybe this is the biggest one.

Forex brokers don’t let you grow your account systematically, because your profit is their loss.

And we spoke about this:

Forex is not a get-rich-quick scheme.

Currency trading is not an easy way of making money. It is the same with the stock trading and all the other kinds of trading and investments.

You have to pass some important stages before you become a millionaire.

There are two things that you have to do to become a millionaire forex trader.

First, you have to learn and master the trading skills. And you have to have a suitable amount of capital to invest in the forex market.

No one has never seen one single retail forex trader who has become able to become a millionaire through growing a small account.

There is no profitable currency trader who trades through the retail forex brokers.

You have to have enough capital to trade currencies through a bank account. And your capital has to be suitable enough.

You have to know that.

Of course, if you don’t believe this you can spend time and money on retail forex trading.

Unfortunately, it is not possible to start making money right after learning the forex trading basics and a trading strategy.

To become a pro: PRACTICE to master your trading skills & risk management analytical skills using a free demo account for traders

You have to consider something at first.

It is smart to have a source of income that supports your currency investment. You must have some revenue, that covers your expenses and gives you free time to sit at the computer and learn how to trade.

The lie is that you can make any money through forex trading and any other kinds of trading when you have financial problems.

If you think that you can learn to make money through forex trading within a short time, and become a forex trader who makes millions of dollars, I have to tell you it is not possible at all.

You can find so many false forex millionaires stories over the internet.

Don’t let them deceive you.

If you want to become a millionaire, first you need a good source of income that makes a decent amount of money that not only covers your expenses. But also leaves some money for your trading and investments.

Only then you can start learning how to trade.

You have to learn and practice until you become a profitable trader.

There are two ways to do that.

One way is harder. You have to follow too many trading strategies, robots, and time-frames, and sit at the computer for several hours per day.

This way will hardly take you to your destination.

The simpler and easier way is learning the Forex trading basics.

And then a simple and strong trading strategy.

You have to learn your trading strategy through demo trading. When you achieve success and make profit consistently for 6 consecutive months at least, you are ready to open a small live account and start practicing with it.

If you make a profit for 6 consecutive months with your live account, all you have to do is that you keep on trading with your live account to grow it.

3 of the most common patterns in Forex trading – Head & Shoulders pattern, Pin bar and Double Top / Bottom

How to use Head & Shoulders pattern:

Head & Shoulders pattern is an easy way to develop trading skills.
The first thing you must know is that Head and Shoulders is a reversal pattern. Meaning, when it’s uptrend, the price goes up, doing its shoulders and head patterns and then reverse for a downtrend.

Those are somehow easy to locate when using this image to see what we should look for in an actual chart.

In the image below, you can how it looks on a real EUR/USD chart:

How to use Pin bar pattern:

One of the most important candlestick patterns you should pay close attention to.
If a pin bar appears it means that there is a very high probability that trend may reverse or pullback. The pin bar is often called “Pinocchio” bar, and it looks like this:

How to use Double Top / Bottom pattern:

Often, if you see a double top like in the following image, it can mean there’s a downtrend on the way.

Forex trading is an investment opportunity.

It isn’t a full-time job. You should already have an income to become able to invest in the currency market.

Turning a small $5,000 account into a million dollar account is possible theoretically.

It is theoretically possible to turn $5,000 account into a million dollars. But if you want to become a millionaire forex trader you have to have a good backup.

When you become a profitable forex trader, you’ll have enough money to open a professional live forex trading account to trade professionally and earn real wealth.

For example, 1000pip Builder’s automatic trading system aims to target 350pips per month. Usually that should be enough, especially for the new Forex traders.

As you can see, it requires both time and money, commitment and persistence, but ultimately it pays off.

Or you know a different story?

6th August 2018
How Much Money You Can Make In Forex Trading?

3 min read

Are you tired of being scammed, fake script?

Do you wanna earn?

But you want secret strategy 100% working, real and very legit.
Yeah!

How much money you can make?

Can you become a millionaire through Forex trading?

Well, the answer is YES and NO.

I am not saying that it is impossible to make millions with Forex. It is.

But if you want to turn a $500 or even a $5000 account into millions, then I have to tell you that you will have a hard task.

Yes, I know. You’ve heard of traders making millions in the financial markets.

But it is not good to compare yourself with them.

Why is that?

Because you’ve got different account size, risk affinity, risk management, trading strategy, and etc.

So is it possible to get rich trading forex? Absolutely!

But you need to keep some things in mind before you try it. Many people want to get rich trading forex and there is no doubt it offers the potential to do so but most fail. Forex trading is risky we know that already but with risk goes reward. If I want to explain how much money can you make from forex trading I have to do it with objective measures.

Just statistics, numbers, and the cold hard truth.

Are you ready?

In your trading the most important thing is metric. If you only win 20% of the time and you can have a 1 to 2 risk to reward on your trades, you will be a consistent loser.

It is obviously your risk to reward isn’t the answer. What else can be? Your win rate maybe?

Let’s see.

You have a 90% win rate but if you lose $0.95 for every dollar you risk, you will also be a constant loser.

So, where is the catch?

Your risk to reward and win rate is meaningless on its own. You must combine both your win rate and risk to reward to establish your profitability in the long run.

This is known as your expectancy. That will give you an expected return on every dollar you risk.

Mathematically it can be expressed as:

E= [1+ (W/L)] x P – 1
NOTE:
W means the size of your average wins
L means the size of your average loss
P means winning rate

You have made 10 trades, 6 were winning and 4 were losing trades. That leads you to your percentage win ratio is 6/10 or 60%.

If your six trades brought you a profit of $6,000, then your average win is $6,000/6 = $1,000. If your losses were $3,200, then your average loss is $3,200/4 = $600.

Apply these to the expectancy formula:

E= [1+ (1 000/800)] x 0.6 – 1 = 0.35 or 35%.

This means, the expectancy of your trading strategy is 35% and your trading strategy will return 35 cents for every dollar traded over the long term.

On the other hand, most of the casinos work 24 hours a day, 365 days a year.

The reason is the more they play, the more they make. And it’s the same for trading. You must PLAY more to WIN more.

The frequency of your trades matter.

However, the more trades you put on, the more money you will make (while having a positive expectancy).

Let’s see how important this is.

You have a forex trading strategy that wins 70% of the time, with an average of 1 to 3 risk to reward.

But it only has 2 trading signals a year.

How much money can you make from this forex trading strategy?

Not a lot, am I right?

Well, you might even lose in that year since there’s a 9% chance of losing two trades in a row.

As you can see the frequency of your trades is important but it’s not enough to determine how much money you can make in forex trading.

There are a few more factors that play a crucial role.

I’m sure you heard a lot of stories where a trader took a small account and trade it into millions within a short time. But you have to know that for every trader that attempts it, thousands of other traders blast their account.

Let’s not treat trading as get – a – rich – quick – scheme. Treat it as a business you’re looking to grow it constantly over time.

Let’s say that can result in 20% a year (on average).

If your account is a $1000 you’re looking at an average of $200 per year.

Your account is a $1m, you’re looking at an average of $200,000 per year.

Or your account is a $10m, you’re looking at an average of $2,000,000 per year.

Let’s say it is the same strategy, same risk management, and same the trader. The capital of your trading account is the only difference.

No matter what strategy or system you’re using, the bottom line is you need money to make money in this business. Period!

Because your bet size determines how much you can make.

How?

The bigger you risk, the higher your returns.

Let’s say your trading strategy has a positive expectancy and trigger a return of 20R per year. And you have a $100,000 trading account.

How much can you make from your trading?

This depends on how much you’re risking per trade.

If you risk $1000, you can make an average of $20,000 per year.
Or if you risk $3000, you can make an average of $60,000 per year.
And if you risk $5000, you can make an average of $100,000 per year.

This is the same strategy, same account size, and same the trader.

The only difference is your bet size (or risk per trade).

But…

If your bet size is too large, the risk of screw up becomes a real possibility. That is to say, you have a higher risk of detonating your trading account and it will reduce your expected value.

So, how much money can you make from Forex Trading?

However, it depends do you withdraw or compound your returns.

If you make an average of 20% a year with a $10,000 account, after 20 years you will have $383,376.00.

But if you withdraw 50% of your profits each year you will make an average of 10% a year and after 20 years you will have $67,275.00 on your account.

So, It is clear enough that compounding your returns will generate the highest return.

But is it workable or not depends on how you manage your trading business.

OK, you’ve learned the main factors that define how much money can you make from forex trading.

Now, let’s see how to use this knowledge and figure your potential earnings.

Example:

Trading expectancy – 0.2 (or 20%)
Trading frequency – 200 trades per year
Account size – $10,000
Bet size – $100
Withdrawal – None

Now implement this formula: Trading expectancy * Trade frequency * Bet size.

And you will get:

0.2 * $100 * $200 = $4000

You see?

To sum up, you can expect to make an average of 40% a year.

And the answer is, there’s no one factor that determines how much money you can make in forex trading.

You must look at these 5 and monitor and assess the success or failure of various processes
1. Trading expectancy
2. Trading frequency
3. Account size
4. Bet size
5. Withdrawals

Then implement formula: Trading expectancy * Trade frequency * Bet size.

In this way, you will have an objective measure of how much money you can make in forex trading.

Read this too: Best Forex Brokers UK FCA Regulated

Risk Disclosure (read carefully!)

31st July 2018
Investment Opportunities – How To Identify

It isn’t easy to find investment opportunities and anyone can fall into many traps while seeking that. Here is how to avoid them.

By Guy Avtalyon

Someone would say: We all know the basic words to successful investing: Buy low and sell high. But it isn’t so easy to find good investment opportunities.

What else or different you can tell us?

First of all, I have to tell you that investors need to have rules.

Otherwise, the common saying can be difficult to perform, especially when many of your friends and colleagues are doing the opposite. If you don’t have a solid structure and order you are predestined to fail.

Investing or trading is like a robotic work, without emotion and always strong adherent to your rules.

You can find more and more investment opportunities opening themselves up to the investors. But not all of them are good investment opportunities. In fact, so many opportunities have drawbacks. First, you can be confused and may not pick the right one. Second, you might want to pick too many. That is dangerous per se. You can end up running like a headless fly, monitoring too many stocks, with investing more than it is reasonable. Hence, you may neglect something very important for your investment goals and financial security. The consequence easily could be your empty bank account or you’ll end up in debts.
The following are things to look for when finding an investment opportunity. If some investment opportunity has most of these things or all of them, you are looking at one that is likely to bring you wealth.

For example, if you don’t see yourself owning stock in a company you are looking for in the next ten years, then you should stay away from investing in that company. Most of the money made in business investments come from owning stock in the company. Investors are leaving it alone until the value rises and reinvesting your dividends versus rapidly buying and selling your stock in a business. That is the so-called long-term viability.

You have to measure the risk involved in a market investment against the potential reward. A good ratio is one to three. After that, you should set up a maximum acceptable loss.

What is the first rule of investing?

BUY LOW!

Determine the baseline value for an investment or trade, and wait to buy it until the price is below what is reasonable. When the stock market declines and other investors panicked and start short selling, that is the best time to look for buying opportunities. Ideally, you want to purchase an asset after the price falls significantly, with the expectation that it will rise again in the future and produce a good return.

All rules of investing

The second rule of all investment is to SELL HIGH!

After the price rises dramatically it is time to consider selling an asset. This is often a time of stock market growth when many people are impatient to buy into a rising market. When some investment shows significant gains, this is the ideal time to cash out and lock in your return. You could gather the income into a secure investment or look for a new underperforming asset and try to repeat your success.

How to find investment opportunities?

The golden rule is to LEARN FROM YOUR LOSSES! Yes!

In trying to buy low and sell high, you are forced to make some mistakes. If it is easy to buy low and sell high, everyone would do it. Try not to lose sleep over it or give up investing altogether when you lose money on some investment. Maybe you just have to take a break for a while and later capture market returns with an index fund. Or you will learn to more carefully research investment before putting more than you can luxuriously afford to lose on the line. Your fears can’t be the limiting factor that mutes your potential. Let that storm be the fuel that moves you to success.

Where to find investment opportunities?

Use your fear to produce better outcomes!

You should have a list of the investments you have made in the past. Think about what you could do to produce better outcomes in the future. You can get colossal insight from physically writing down outcomes you would like to avoid. That can prevent you from making emotional investment decisions. If you have a financial planner or adviser or someone else who will look over your investment ideas, that adds gravely deeper layers of reliability and responsibility.

You have to have a plan to avoid later regrets!

Of course, that large loss can cause you to regret because of bad investment decision. There’s also the regret that comes from watching other investments got wings. When you have a good plan of inventorying and you analyze your investment options often, that can help avoid a negative result. Writing it down makes it easier to stick to a plan.

Ultimately, investing is about finding the lifestyle that you want to live. So, you can’t do that if never find good Investment opportunities.

Choosing wisely may produce enough wealth to allow you to retire sooner or walk away from an annoying job. All you need is to use logic and stick to a financial plan to successfully build wealth.

31st July 2018
Entry Trading Strategies That Make It Easier – Forex Trading

2 min read

Entry trading strategies can be very complex but simple too. Forex traders have many activities working against them, and among them, the biggest enemy is – traders themselves. Basic mistakes, lack of planning and weak or ineffective strategies, are the major cause of high forex failure rates.

One of the trader’s mistakes is entry trading strategies complexity.

The best entry strategies are those that are simply designed and simple to perform. The biggest enemy of effective trading is complexity. You should never identify complexity with quality. If you think the more moving parts in a strategy can give you the greater chances of profit, you are totally wrong.

For example, you have an entry signal that has a 10 point checklist to trigger. And you want to apply that in live trading on a minute chart.

What are the chances that you can keep track of all 10 checklist criteria?

If you can’t identify that trade in real time, you will gonna miss it.

And it will cost you money.

What this means is, complex strategies lead you to missed trades.

Your forex entries will be more effective if you keep them simple. Stay stick to this wisdom and you will be able to create a durable forex strategy.

The second enemy in your entry trading strategies can be the timeframe.

Jumping from timeframe to timeframe in order to find the perfect one is not the most effective way. Also, many traders choose the first one that grabs their attention – wrong too. Forex time intervals are a personal choice connected with trader’s character, personality, and nature.

If you are impatient you would like to see your trade spread rather soon than later. And you wouldn’t wait for trades that take a long time. That means that faster timeframes suit you better.

But faster timeframes also means you have to stay more engaged so you don’t miss key setups. And be careful, every extra second is a chance to do something emotional, like move a stop or take profits too early.

The faster the timeframe, the less chance for mischief.

But maybe the slower timeframe better suits you.

Maybe you enjoy to plan and manage the trade with less furious tempo. Slower timeframes give you time to think.

That can be a great advantage if you like having time to analyze.

Especially if you want to put on more than one trade at the same time.

Slower timeframes may give you more time to manage trades and perform them well. With longer time frames, you have more spare time.

No timeframe will ever be perfect.

If you choose well, it can be a good match for your trading style. And most importantly, you’ll have taken a step towards your own Forex strategy.

One of the most important aspects of any trade is its size.

This represents the amount of money in initial size and in total risk.

General truth in trading is to keep your risk small and constant.

Where is the point if you win on 3 trades making $400 each and if the fourth one loses $5000.

Forex is the market with the greatest ability to sizing money risk. But only if you plan ahead. If you want to risk $1000, make sure you size your position to risk $1000. Don’t try to sensate your way into a trade.

Decide up front the maximum it will cost if it goes against you.

Sizing control is a fantastic attribute of the Forex market.

But this attribute can be a benefit if used in the right way. You have to plan ahead to cap your risk at the right level. If you do this right, your Forex entries will be more in good shape.

And start with fixed outcomes. A fixed outcome is a pre-set plan for how you will exit a trade and usually it comes in as stop limit or profit taking the order. A fixed outcome is a pre-set plan for how you will exit a trade and usually it comes in as stop limit or profit taking the order.

The fixed outcome will reduce the risk of changing your mind and moving the stop to take on more risk, your profit aim will be set and you can relax without wondering when to take profits. It’s a good habit in case something drags you away from your screens. Your trade can function without you right from the start. Fix your outcomes in order to cut down impulsiveness in your trading.

Forex strategies can be a great deal simpler and more effective than many traders make them.

If you have not yet mastered a trading method, you will not be able to get good entries into the market. Thus, the first step is taking some time to get proper training in an effective trading strategy. Find some good one!

And good luck!

Risk Disclosure (read carefully!)

26th July 2018
Avoid Bad Investment Moves – Strategies that work
2 min read

It is possible to avoid many bad investments.

If you know what “catches” to look out for and which clarifying questions to ask.

Most bad investment scenarios can be avoided by following simple rules.

First of all, you have to avoid emotional and personal investing mistakes, wisely avoid.

Many investors, even the well learned, can confirm they made a rushed and impulsive decision and didn’t avoid a bad investment.

Also, many have made decisions while high on emotions so as to score instant satisfaction.

The danger of making bad investment choices cannot be overemphasized. You can use an extensive set of control strategies that people use to limit bad decisions.

What are some of the bad investment choices you can make?

* Failures of rationality – This represents the lack of possibility to see the bigger picture. The investor considers decisions in isolation and doesn’t include their impact on an entire portfolio.

The consequence is that you can invest too much in a single asset class, industry, Or geographic market. Yes, because you know a lot about it and are comfortable with such decisions.

* Using a short-term decision horizon – when an investor is ignoring the appropriate goal of long-term wealth accumulation.

The favor is short-term returns.

But you are here to stay. Right?

The consequence is that losses are more likely in the short run. Much more than over longer time periods.

People are twice as sensitive to losses as to gains. This behavioral phenomenon is known as “myopic loss aversion”. And their inclination to take short-term risks is too low. So they often make the wrong investment decisions.

* Buying high and selling low – means doing what’s comfortable amidst either bullish or bearish market conditions. The consequence is that when you are buying while markets are high or selling when markets are low is a risky strategy that fails to take advantage of market opportunities. A buy-and-hold strategy turns out to be superior.

* Trading too frequently – this is the result of multiple emotional and personality-driven characteristic. That produces an irrational tendency toward action.

The consequence is that investment costs are higher. As the frequency of making the other types of poor decisions is increased.

The experts recommend these seven self-control strategies. They can help counter your tendencies to make bad decisions and avoid a bad investment. The use of these strategies was not limited to investments and often included other behaviors and other important lifestyle decisions.

Here are the seven strategies and their application to financial decisions:
1. Limiting options – Purchase illiquid investments to avoid the urge to sell investments when the market is falling.
3. Avoidance – Avoid information about how the market or portfolio is performing to stick to a long-term investment strategy.
4. Rules – Use the rules to help make better financial decisions, such as only spending out of income and never out of capital.
5. Deadlines – Set your own financial deadlines aiming to save a certain amount of money by the end of the year.
6. Cooling off – Wait a few days after making a big financial decision, before executing it.
7. Delegation – Delegate your financial decisions with others, allow your investment advisor to manage your portfolio.
8. Other people – Use the help of other people to reach their financial goals. Make some appointment with your financial advisor to make and execute a financial plan. Certainly, you don’t want all your money in just one kind of investment. So you can safely choose a single advisor or firm to handle a range of investments.
The stock market’s tendency to produce large gains and losses. So there is no shortage of faulty advice and irrational decisions.

As an investor, the best thing you can do to pad your portfolio for the long term is to implement a rational investment strategy. The one you are comfortable with and willing to stick to.

If you are looking to make a big win by betting with your money, try the casino.

You should be proud of your investment decisions in the long run. In that way, your portfolio will reflect the solidity of your actions.

You would this: Bargain Hunting – The Holy Grail of Investing

Risk Disclosure (read carefully!)
26th July 2018
Forex Trading is Profitable. Right or wrong?

2 min read

Forex trading is profitable but the market isn’t endless, you have to know that.

The size of your trade has an important impact on how you can bring a trade out.

Don’t look at the percentage of what a so-called pro-trader does. People like to think in percentages way too much.

Percentage of what?

When you start, you can have someone who would be your ideal or paragon. But you always have to keep in mind that such trader is already experienced in trading.

She or he does some things spontaneously, and you are the one who just stepped in on this scene. But if you’ve mastered some trading skills and have tested them well on some free demo account, you may have even one advantage.

The experienced traders have more money, it is a blessing and a burden at the same time. But you can be more flexible to trade with high precision very close to how the market moves.

What I want to say is, you should never underestimate a “small” position. Forex trading is profitable even in that situation.

For the FX market, you can be small fish.

But that “small fish” can make a couple of hundred USD per pip. Is it good enough for you? Well, that’s why comparing percentages without comparing the actual pot is an unnecessary exercise.

But it isn’t easy. Hard and smart work lies behind it. Of course, you have to involve a bit of luck to find the right stocks, right things while your motivation is still on the top. But when you make any success, you will see it is worth it.

But you have to be dedicated to trading in order to be able to trade when markets move the most. If you live in a European time zone it is from the early morning to the afternoon. But if you live in some other part of this lovely planet I would recommend to your attention, one of my older posts.

Some traders said: I’m trading short term on the 1-minute candlestick chart.

Take this as a recommendation:

Average holding time depends on what the markets offer you but it is rarely under 6 minutes and rarely over 20 minutes.

Stay focused on reversal signals and have pay attention to good ones and fake-signals apart. Support/resistance areas play a role but you need to practice to be good at it.

You have to treat trading as a profession or a business.

Only in that way success will come.

Why I’m saying this to you?

I have a friend. Forex trading has been an expensive venture for him, indeed. In his first 2 years of trading, he lost $30k. He almost went bankrupt because he was naive and greedy. His main problem was, he entered at the wrong time and exit at the wrong time. No matter what he did he was always on the wrong end. At that moment we couldn’t talk about how forex trading is profitable, right? This improved drastically when he found his own method. (And maybe this is the secret of any successful trader.) Now he has been profitable for over 15 months.

Forex trading is profitable but not for everyone

But I’ve seen a numerous amount of people lose everything in trading.
Hundred and thousand times you should ask yourself:

Why do I trade? To become rich? Is it a hobby?

Do I love it or I hate it? Is forex trading harmful to me?

Why I am forcing myself to all of this? Just for a chance to be a member of the profitable 5% club?

Did you ever hear the saying: “If you don’t know who you are, the market is an expensive place to find out.”

And the most important question is: Is trading really worth the effort invested?

Trading attracts mostly because of the freedom it provides.

Trading Forex isn’t a “get rich quick” method.

With constant profits in order to make enough money not only to live but to build up a constant surplus.

So, you can move on with your plans and plan your life. Maybe your focus on how much money you can make per year isn’t the best.

You may think you can see better, you know better and you can believe in that. But that is a great paradox and tiny line.

If you cross it, it can be the biggest tragedy. In every single moment, you have to take care of risk control.

It doesn’t matter what you see or you think you know.

Risk control! Double-check! Opened eyes! Use the excel.

Sometimes, even the things you wrote before can be very helpful. Having some downloaded system is useful but money management is KEY to success.

To gain knowledge of how to make a profit is much much more than what you can learn from a job in the corporate world.

The knowledge has to be the goal.

Yeah, I know. Time is money.

Forex trading is profitable for me.

Is it worth it? Yes!

Should you continue trading? Yes!

Should you continue with your studying? Yes!

Should you continue looking for a job? Yes!

Can you manage to do all of these things at the same time? It is up to You.

The main factor for success is your permanent education and training. You have to believe in yourself and find what works for you.

The only thing that brings you to your failures may be your ego.

And if you aren’t ready to keep going after a series of losses, Forex probably isn’t for you.

Risk Disclosure (read carefully!)

24th July 2018
Investing in Cryptocurrency – The Pros and Cons

2 min read

Investing in cryptocurrencies is generally a risky investment. Investing in cryptocurrency could be a good investment, or it could not. It depends on you and your attitude. In crypto’s early days there is no yes or no answer about the wisdom of investing in cryptocurrency. With this in mind, we will cover some pros and cons and give friendly advice. Remember, this isn’t professional advice, we don’t offer professional legal, investment, or tax advice.

If you don’t just want to buy, sell, or invest in cryptocurrency. If you want to invest in cryptocurrency, you have several options.

First comes first: You need to start investing in cryptocurrency with some flexibility. You have to be prepared to lose everything you invest in cryptocurrency. It probably won’t happen, but be careful. The least risky coins are the coins that are present the longest time and have the highest market cap and highest volume. Anything other than Bitcoin, Litecoin, or Ethereum is riskier. Bitcoin is the current top coin for resilience, market cap, and volume. Also the most expensive.

There are several pros and cons to review before investing in cryptocurrency.

CONS:

The cryptocurrency market has been very volatile since its beginning. The price of Bitcoin can swing up or down hundreds of dollars in one day. We have already seen a few bubbles and busts in the past. There is a risk of the venture on a given coin even if cryptocurrency is prosperous. Even if cryptocurrency is a good long-term bet, we don’t know if any coin will be the one that sticks around. Even more true for the countless less popular coins with smaller market caps.

Those with low-risk tolerance have a difficulty; they are inclined to getting weakness and pulling out at a loss while the market is fixing up or going down. An investor needs to be prepared to take a loss or sit on a loss for a while if the market goes down. That requires a certain type of mindset and expendable funds. There are some psychological factors to consider along with economic ones.

The only way to trade cryptocurrency on the stock market is to buy GBTC (Grayscale Bitcoin Investment Trust), which trades at a premium. The simplest way to buy a cryptocurrency for a novice aside the stock market is via some company. They charge some fees for that, but the lowest fees are on the open exchanges of the internet. Between premiums and fees and finding a broker, all options for trading have costs and it isn’t easy to calculate.

Spirit level of crypto investors is changeable. Like the Moon. Bad news in term of regulations can send crypto value to drown in one day. But the same news another day may have no effect. If you join some cryptocurrency group on social media, and you’ll note it goes from hot-to-cold with the weather. The market is a bit fussy, I think.

PROS

The cryptocurrency market is still young, and the most optimistic investors are predicting future prices, some of them claim that it can be for e.g. Bitcoin, $220,000 by 2020. Cryptocurrency is a very risky but potentially rewarding bet. More, if cryptocurrency is in a bubble, the trend could very well be toward cryptocurrency being an important medium of exchange and store of value in the future if the current price is lower than the highest price we will ever see. That makes it a good long-term bet. You can often buy high low and sell high. There is money to be made.

Despite all its risks, crypto is possible the most exciting asset 21st century. It is decentralized, works on blockchain technology which is here-to-stay. You can find billions of motives about why everyone has to be excited about crypto. As much as reasons to be conservative in your investment.

Don’t dump your whole saving into crypto, but don’t hesitate to put a small investment you are ready to lose, just to learn and have fun on your beginning. Later you will have the know-how.

TIP

If it is the bubble, then pop it!

One of the reasons for taking extreme caution is the current potentially high price. If the price goes back down to 2015 levels, then the number of PROS will increase. The unknowns and high price and volatile market make it risky, but there are plenty of reasons to be excited despite all that especially long-term.

Investing in cryptocurrencies is very risky, markets are volatile and the technologies are still quite young.

But, they are still a great opportunity for anyone interested in investing.

Treat them as you would any investment and do your own research.

Step into this new world while is time.

Risk Disclosure (read carefully!)

24th July 2018