Author: Editor

  • Bitcoin price – is it going to stay that low?

    Bitcoin price – is it going to stay that low?

    1 min read

    Bitcoin price

    Bitcoin price may jump or drop. I don’t know. Who knows? Anyone who knows has to get up and say the answer loud and clear. Is Bitcoin going to stay that low? Gosh!

    There are millions of predictions about this, but they’re often predicated on fake analysis, tricky intuition and genuine nonsense. Right now there are thousands of analysts investigate data asking themselves that question via many other questions that might help them.

    Bitcoin price in July 2017 was $ 2500, the expected price for July 2018 should be in the range of $6000–15000, this means it won’t go below the last year price.

    Here are some causes of why it’s difficult to predict:

    * there’s practically no information on the demographics of Bitcoin buyers. They have a different stratum of experience or they are reacting emotionally to their money fluctuations.

    * Negative news around Bitcoin can investors spiteful, primarily if journalists and financial analysts quote disinformation as their motive for drawing a conclusion.

    But there’s a handful of reasons why it might go up. Keep in your mind any of these events can happen randomly: More investors could start accepting Bitcoin as payment, another cryptocurrency could overtake Bitcoin, a sharp price decrease for almost any amount, a sharp price increase for almost any amount.

    Bitcoin price can jump or drop

    Last week, Bitcoin slipped to its lowest level since November, under $6,000. Traders attributed that to CME futures contracts expiring and generally, clouded interest from new buyers. The world’s biggest and first cryptocurrency has struggled from that lack of enthusiasm, and prices have dropped, according to CoinDesk, 52 percent since January.

    You should read THIS too: Why you should not invest in bitcoin under any circumstances

    So, what is the prediction of how Bitcoin will go?

    It is always good to look into other appropriate factors, not only history and numbers, and ask the question on what is holding Bitcoin back at the moment.

    There are increasingly positive voices coming out in favor of Bitcoin. Question is will it actually increase in value significantly until the end of this year or whether it will remain around these levels. Other cryptocurrencies have been consistently rising in the past couple of weeks. That’s why many of the enthusiasts are actually predicting higher peaks as well as newer peaks for the cryptocurrencies.

    Does it mean that  Bitcoin price can be worth more than $100k in 2018?

    Well, Tim Draper predicted Bitcoin would be $250,000 by 2022. When asked during an April Bitcoin debate how the digital currency compared to his early investments in Tesla, Hotmail, and Skype, Draper said Bitcoin will be “bigger than all of those combined” and “bigger than the internet.”

    But, it looks this year will not be a particularly good year for Bitcoin holders. It’s value having fallen for $13,400 at the beginning of January. Just two weeks before that, it was worth more than $19,200.

    Probably, yes. That is the answer to the question will Bitcoin rise in July 2018. And the contrary answer to the question ”is it going to stay that low” is NO. Though it is hard to say by how much Bitcoin is going to boost.
    What do you think? Share with us your opinion.

    Risk Disclosure (read carefully!)

  • Forex Scams and How to Avoid Them

    Forex Scams and How to Avoid Them


    There is a high level of possibility to get trapped in some Forex scams. Here is how to recognize them and avoid falling in them.

    By Guy Avtalyon

    Forex scams are the reality but you must know how to avoid them

    The Forex market is among the most active trading markets in the world. Hence, participants are ranging from multinational corporations to large banks, to speculators, to governments, and a small fraction of individual professional traders. Even more so than other markets, investing in Forex can be very profitable.  

    However, there is a risk involved in these investments but we’re not talking about normal risk in any type of investment. I’m talking about Forex scams, where the investment is simply an obvious case of fraud. We all can find on the internet how individual traders complain through forums about how their brokers screwed them.
    The forex market involves very active trading of over $1 trillion each day. Futures and currency options put the trading at closer to $5 trillion daily.

    Still, there are a lot of opportunities for many forex scams over promises of quick fortunes through “secret trading formulas” or algorithm-based “proprietary” trading methodologies.

    What are Forex scams? 

    For example, signal sellers. One of the challenges a novice forex investor faces is determining which operators to trust in the forex market and which to avoid. The signal seller is offering a system that purports to identify favorable times for buying or selling a currency pair. They all claim they want to provide information that leads to favorable trading opportunities. But signal sellers usually charge a daily, weekly, or monthly fee for their services. Otherwise, how they can earn?

    How does typical work? 

    The scammer gains the trust of his/her victims with a promise of a great and quick profit. Indeed, it’s possible to make a big profit by trading on the Forex market, but not in the way that the fraudster promise. The scammer takes money from the client (actually the victim) and claims that he/she will earn big profits by trading currencies on Forex. In the beginning, the profit is big. But this profit was not realized by scammer’s trading on Forex. The scammer uses the money of newer customers to pay promised earnings to previous clients.

    But, victims of fraud, thrilled with good earnings, often decide to invest even more money with the fraudsters. In addition, they often recommend a good opportunity to earn money for their friends so that the network of clients is rapidly increasing. The scam ends after the inflow of new customers ceases to exist or be diminished to the extent that the fraudster is no longer able to pay good earnings to older clients. Then the victims realize that they were deceived and that had lost everything they had invested.

    How to identify Forex scams?

    The easiest way to identify a fraudster is if he/she requires a client to deposit money in cash, bypassing payments through the bank. Real Forex brokers work solely payments through banks. Real Forex brokers provide customers with access to the market where the client decides which currency to buy or sell, depending on which trading result is. Additionally, every client at any time of the day or night can access to the account and can track the status of his account in real-time.

    How to avoid Forex Scams?

    Since you are into currency trading to make money, you must know how to avoid Forex scams. The information here will help you a lot on how to avoid Forex scams.

    Whenever you are dealing with some site, be cautious, and don’t trade with websites that say you that Forex trading is simple. The scammers capitalize on the human nature of wanting things quick, easy, and convenient. Method to avoid Forex scam is for you to keep away from any website that claims to have a secret trading system. Don’t ever fall victim to these incorrect offers. A lot of Forex traders believe the fact that there is a holy grail or secret trading method that will make a profit for them overnight. Reading reviews of experts will help you to find the broker that fits your Forex requirements. Reviews are a good solution anyway, they can help you to recognize those that can bankrupt soon or save you from scams. The truth is that you need a lot of hard work and patience to succeed in Forex trading.

    A lie or truth about Forex?

    If you’ve ever searched by some browser for the word “Forex”, you weren’t surprised that some sites write about Forex fraud, often placed on the first page. You will find that Forex is a big fraud and legalized robbery. The “big”, that is brokers and large financial institutions, have teamed up to take the money from the “little ones”, that is ourselves.

    We can completely calmly say that Forex is no fraud and it will never be.

    So, the Forex market is really great as the potential for earning. Forex trading is real, and Forex at itself is not a scam. People are something else. Some people will always find a way to cheat, deceive, dupe, swindle. That’s the nature of human beings.

    That still does not mean the Forex is a scam, not at all. Everyone should be on the lookout for any potential on Forex and invest their money wisely.

    If you have personal experience, share it with us and others.

  • Secrets About Trading Stocks Revealed

    Secrets About Trading Stocks Revealed

    Secrets About Trading Stocks Revealed
    Trading stocks isn’t rocket science but it is helpful when you know some secrets about it

    By Guy Avtalyon

    I’ll reveal all secrets about trading stocks. Yes, that’s exactly what I’m going to do. First of all, you must understand, trading is a younger cousin of investment. As a newcomer, you can be overwhelmed by the quantity of the data available in the stock market.

    When you simply sign up at one of these online brokerage companies and dump your life savings into the market, you are ready to start.

    The most important decisions you’re going to have to make in your road to becoming a successful trader of the financial markets is, what your trading style is going to be. Different trading strategies have their own collection of benefits and drawbacks. If you’re new to the trading scene and might not understand the differences of each trading style, you may be confused.

    Damn, what I have to do?

    You have a choice to simply buy and hold positions in any market for long periods of time, for years or even decades. Or you can complete your trades within one 24-hour period which is easy but the most challenging and fraught with the highest levels of risk, though it can bring big rewards.

    If you choose long-term trading and buy-and-hold trading, offer is a lessened risk in exchange for fewer opportunities for reward.

    ”And now, what is the next I have to do?”
    Well, you have to pick your trading days. Research has shown that the third week of the month is the best time to buy stocks.

    According to researching, the best of the best is the period between 18. and 22. of the month.

    Why is that? The prices tend to hit their lowest monthly points at that time because cash flows from dividend reinvestment and pension funds are likely to be at their lowest as well in that period.

    That means the best time to sell stocks is closer to the beginning and end of the month when cash flowing into the system is at its highest.

    Speaking about of period of the whole year, April and May are the most successful time to sell your stocks, while buying new stocks in September and October is going to get you the best price (in that time the market tends to bottom out).

    Do you want to become a day trader?

    If you want to be a day trader, there’s a right time for you as well.

    The best time of day to trade stocks, if you are from Europe, is between 9:30 to 10:30 AM. This time frame is offering the biggest moves in the shortest amount of time (a great and efficient combination). You can extend it out to 11:30 AM EST if you want another hour of trading. The best time for a US-based day trader will typically be in the late afternoon Eastern Time. Corporate earnings reports and statistical reports from the federal government usually released in the morning, waiting until around 1:30 pm to 2:00 pm.

    Secrets about trading that make you successful

    I was waiting for you here!
    There are no instant solutions. Unless you are idiot, you have to understand that you can’t find a secret formula or secrets about trading. If there is any secret or key, it is this: keep it simple, be systematic, and get educated.

    If you had enough capital to open a trading account, this doesn’t mean that you’re going to be successful right out of the gate.

    But, let’s assume are a beginner and if you’ve never spent a day in your life in trading before. So you may think you’ll be able to dive without educating yourself because trading stocks isn’t rocket science. Really?  Well, you’re likely to end up learning the hard way. You will watch how all your investment capital disappears into the ether in exchange for a handful of stocks that end up not worth much. Even worse, not worth anything at all.

    Keep in mind: trading is not gambling. But there are some tips and secrets about trading.

    One secret you should know: everyone is selling the stock or vice versa. But it’s obvious that someone has to be buying the stock also.

    The ultimate secrets about trading are this, learn to identify and trade with Smart Money!

    Secrets about trading stocks

    1.  Focusing on odds trading and risk/reward vs. hunches and feelings can lay the foundation for a very long and successful career.
    2. The stock market does not care about your feelings or wants. These major principles are the biggest contributors to the losses realized in the stock market.
    3. Know your risk tolerance, and trade the consistent strategies. If you stay focus on these 2 things you can be sure you will be trading longer than 1 year, even longer.
    4. Don’t be risk-averse, learn to evaluate risk, and learn to understand yourself.
    5. Trade up to the point you can bear the loss, don’t ever cross your limits it’s better to wait for your time.

    Final words: Always have a plan, consolidate your portfolio, stay away from all the mumbo jumbo, only invest in the coins that will turn over a profit, find others that you trust to keep you properly informed, use the tools of the pros.

    Good luck!

    If you find that this article may interest someone else, feel free to share. If you have personal experience, share it with me.

  • Banks in Korea to Use Samsung SDS Blockchain to Verify Customer IDs

    Banks in Korea to Use Samsung SDS Blockchain to Verify Customer IDs

    South Korea’s commercial banks will launch a customer ID verification powered by blockchain technology

    A national banking group representing South Korea’s commercial banks will launch a customer ID verification powered by blockchain technology this month, as per the reports on June 12.

    The Korea Federation of Banks (KFB) will launch their “BankSign” identity verification system to be made use of in both online computer-based and mobile banking, according to media reports.

    Development of the BankSign plan was started straight away after the KFB launched a consortium discovering blockchain applications opportunities at the local banking sector in November 2017.

    A KFB spokesperson added:
    ”BankSign is the first project co-developed by the local banking sector utilizing blockchain technology”

    Banks in Korea and blockchain

    Banks in Korea were forced to use a 20-year-old public banking security system that is inefficient and outdated. The government reversed it is Digital Signature Act’ policy wherein domestic institutions were mandated to use the public certification system.

    BankSign platform is built on Nexledger, a private enterprise cloud computing platform developed by Samsung’s subsidiary, Samsung SDS, the IT subsidiary of South Korea’s biggest conglomerate.

    As reported by CCN at the time, Samsung SDS was launched in April 2017. At the same time, it was launched Nexsign, a biometric authentication solution also developed by Samsung. Nexsign enables customers to gain access to a huge number of services using a single ID authentication.

    Samsung has already tested its Nexledger blockchain with Samsung Card, the conglomerate’s credit card company, as early as October 2016, but this is unrelated to KFB’s BankSign.

    In the first part of June, Samsung SDS announced the launch of its own enterprise blockchain platform Nexfinance aimed at finance-related businesses.

    Implementation of blockchain

    On June, has been revealed that the KFB established a consortium of its member to research and implement blockchain technology in the domestic banking sector in November 2017. Development of BankSign took off immediately, the KFB said, before select member banks began beta testing the system in April this year.

    The banks’ new blockchain application would offer a variety of options to confirm clients’ IDs and “not just the public certification system”, said Park Chang-ok, a manager at the department of deposit services and payment systems at KFB.

    Furthermore, the KFB said BankSign will find other applications within government and other public organizations after taking off in the banking sector with an official launch that is only weeks, maybe days away.

    In the beginning, the BankSign platform will be used only in the banking sector. However, the KFB, banks in Korea are planning to co-operate also with the Korean government and other public organizations in order to broaden the scope of the project, according to the KFB spokesperson, Korea JoongAng Daily wrote.

    You would be interested: Crypto is at Risk In Korea!

  • India’s Top Court Refused To Lift Ban On Cryptocurrency Exchanges

    India’s Top Court Refused To Lift Ban On Cryptocurrency Exchanges

    1 min read

    India’s Top Court Refused To Lift Ban On Cryptocurrency Exchanges

    India’s top court has refused to grant any interim relief to cryptocurrency exchanges against the Reserve Bank of India’s (RBI) crackdown on them.

    The RBI had directed all banks to wind up within three months any existing banking relationships with virtual currency exchanges and traders, was the decision on April 05. The ban kicks in from July 06.

    In May, India’s top court had set the next date for the hearing of the case on July 20, two weeks after the ban would come into force. But the Internet and Mobile Association of India (IAMAI), which counts bitcoin exchanges as its members, subsequently approached the court for an early hearing, which took placed on July 03.

    India’s Top Court Refused to lift

    “This a win for the RBI and a big blow to virtual currency exchanges and traders. In our earlier request to the RBI as well, we had asked it to extend the deadline by a month after the July 20 hearing,” said Rashmi Deshpande, associate partner at Khaitan & Co.

    Khaitan & Co is a law firm representing Kali Digital Eco-Systems, an Indian exchange planning to begin operations later this year.

    “However, now that the ban will continue, the banking route for the exchanges and its users will be completely choked,” Deshpande added.

    On May 17, during the previous hearing, the apex court had asked these exchanges to submit their representation against the central bank. The firms had engaged with the RBI during the last week of May and early June.

    “We had submitted a detailed presentation that could have given RBI a clearer picture of what is blockchain, how the exchanges work, etc. But we hadn’t heard back from them yet,” said Nischal Shetty, founder, and CEO of WazirX, another Indian cryptocurrency exchange that has challenged the ban. “Today, the (India’s) supreme court has also directed the RBI to respond to those representations made by the firms in the next seven days.”

    Focus on Bitcoin and Blockchain

    India’s Top Court Refused To Lift Ban On Cryptocurrency Exchanges

    The Narendra Modi government is in the final stages of finalizing the draft regulation on bitcoin and other currencies, according to a senior government official. That’s why despite India’s top court upholding the ban, the exchanges are hopeful.

    “We have prepared a draft (on virtual currencies) that entails what parts of these businesses should be banned and what should be preserved. This should be discussed by the first week of July and we should wrap this up within in the first fortnight of July,”  said Subhash Chandra Garg, secretary in the department of economic affairs, who is heading a committee on cryptocurrency regulation, told television news channel ET last month.

    What to say?

    All eyes are on the government and the next supreme court hearing on July 20. We will see. The truth is only one: crypto is spreading and nothing can stop that!

    Share it further!

    Risk Disclosure (read carefully!)

  • Cryptocurrency Addiction Is A Real Thing? No, s**t!

    Cryptocurrency Addiction Is A Real Thing? No, s**t!

    The experts recognize seven of the most common signs you might be a crypto-addict.
    If you recognize these symptoms, be careful but enjoy the trading.

    1 min read


    Cryptocurrency addiction exists in reality. Do you feel sometimes that you are holding your life all with one bobby pin? Till the moment you check Bitcoin’s price when you wake up in the morning?

    Yeah? I know that feeling.

    And the price of Bitcoin is the last thing you look up before you doze off at night?

    And it is difficult to pay attention to conversations unless the topic is blockchain?

    And you always keep a CoinMarketCap tab open in your browser?

    Well if you are such case, I don’t have good news for you: you might be suffering from a cryptocurrency addiction.
    You don’t believe? I was shocked!!!

     

    Bizarre new addiction!!!

    A group of Scotland-based behavioral therapists claims that you can take measures to curb your unhealthy habit of cryptocurrency trading. Good luck with that!

    Experts from rehab clinic Castle Craig Hospital (Scotland), recently expanded 

    their gambling addiction program to help people battle against obsession with trading digital currencies

    .

    The experts recognize seven of the most common signs you might be a crypto-addict.

    * You are spending a great deal of time on the trading in cryptocurrencies, checking prices so that other occupations such as work, exercise or socializing are on second or third place or not get done

    * You have debts and financial problems due to the losses incurred when gambling.

    * You are lying to friends and family about activities or problems ( for instance you are hiding the amount of time spent online trading).

    * Your mood swings, feelings of hopelessness and depression.

    * You feel anxiety and you have physical symptoms such as sweating and tremors.

    * You have unrealistic views such as being “lucky,” pursuing losses, in belief, it is your turn to win next time.

    * You are attempting to control the activity without any success.

    In a statement for thenextweb.com, the therapist, Chris Burn said: “The person trading may be unaware of these negative effects, especially if they are trading successfully and making profits. Major consequences such as bankruptcy, loss of reputation and self-respect can happen, sometimes with devastating speed.” 

    Everyone is prone to developing a crypto addiction

    This means that remarking the symptoms might not always be enough to get you on the right track. Usually, addicts have trouble acknowledging such signs in their own behavioral patterns. That’s true!

    According to this therapist, everyone is prone to developing a cryptocurrency addiction, even those trading for leisure. The problem is further exacerbated by liberal regulations and a low barrier of entry for traders.

    You know, it takes few minutes to open an account on exchange desks.

    “From our observations, people may begin trading in cryptocurrencies as a leisure activity, very part-time, but become hooked on the activity because of its addictive nature,” Burns explained “Unlike regular stock trading, cryptocurrency trading is poorly regulated, often poorly understood but exciting because of the big fluctuations in price that occur.”

    So, what I suggest you do? If you recognize these symptoms, be careful and enjoy the trading.
    What do you think? Is this possible? C’mon, tell us!

    Risk Disclosure (read carefully!)



  • The Dangers of Emotional Trading And How to Avoid That

    The Dangers of Emotional Trading And How to Avoid That

    2 min read


    Trading is less a business and more psychology from which your success or vice versa on Forex market depends. Even if you have decided to switch to systematic trading, this does not diminish completely the dangers of emotional trading and emotional pressure when you are deciding a trade.

    Often, Forex traders have the belief that only a complete absence of emotions can help during trading. Still, fear, uncertainty, greed, hope, faith, regret, and happiness inevitably follow the process of trade and may cause the dangers of emotional trading.

    Combating emotions at the moment when your feelings overwhelm, means ignoring the sixth sense, intuition, and finally insight. And what happens? You have brain fog!

    Why? It is known that emotions also transmit the flow of information to us. We are guided by this information, we behave under their influence. But this is given to us to control our emotions and to replace one’s feelings with others.

    There are many ways to control emotions and avoid the dangers of emotional trading:

    First, it is possible to change your emotions by concentrating on another object. As a rule, this method is very effective. The thing that attracts our attention becomes real for us. You can consider the suffering of losses, or vice versa, examine the possibility of making a profit.

    Second, by changing your views and beliefs you can change your emotions. Every belief we gain over our lives is, in a way, a filter for us, which is affecting the knowledge of all information. All points of view accumulated throughout life have an impact on the interpretations we receive in our mind.

    Finally, the third way to change your emotions is by modifying physiology. Change in breathing, mimics, body position, color and speed of our voice, all this has a direct impact on the emotional part of not only Forex traders, but any person.

    Concentrate attention to avoid the dangers of emotional trading

    The concentration of attention is one of the most important components of our emotional state. The fact that you are focused on the Forex trading process becomes not only the subject of reality but also the acceptance of the facts. All activities influence the interpretation of events and therefore affect our emotions. All this guides our behavior, and decisions get an emotional connotation. In this case, it is necessary to define the priorities: what are you waiting for? Do you think about the possibility of losing? Or expect a profit?

    Those who see only losses are likely to hesitate to invest in the market for too long and may even miss the transaction. But once they decide to enter the market, they quickly earn profits. Trading is an attempt to balance the contradictions. The trader should focus on profit and loss and try to balance them. The trader should focus on the likelihood of his/her methods and information provided by the market because they are the only ones that are correct and reliable.

    Physiology and the dangers of emotional trading

    It has been proven that our body manages our emotions and that emotions influence our thoughts. The easiest and most effective way to change your emotional state is to change your physiology – speed, and depth of breathing, voice or even your pose.

    Pay attention to your attitude, how you sit, breathe, and whether the muscles of your face, shoulder, or whole-body tense. If you feel sick, you should sit more comfortable. Fully simple physiological manipulation can be an effective way of controlling your feelings.

    Control your emotions, this will definitely make you a more successful trader!

    Understanding Fear

    When a trader gets bad news about a certain stock or the general market, it’s normal for the trader to get apprehensive. But at the same time, you must be clever, you must avoid the dangers of emotional trading.
    The dangers of emotional trading
    You need to understand what fear is: a natural reaction to what they perceive as a threat. In the case of traders, to their profit or money-making potential. Quantifying the fear might help. But you as a trader should consider pondering what you are afraid of, and why you are afraid of it.

    Yeah, I know! This is not easy, and you need practice, but it’s necessary for the health of an investor’s portfolio.

    Greed Is Worst Enemy

    “Pigs get slaughtered.” is an old saying on Wall Street.

    This means that greedy investors are hanging on to winning positions too long, trying to get every last tick. Greed can be devastating to returns. A trader with greed always runs the risk of getting whipsawed or blown out of a position.

    Greed is often based on an instinct to try to do better, to try to get just a little more.

    The first instruction is: A trader should develop a trading plan based upon rational business decisions, not emotional caprice or potentially dangerous instincts. A good trader should have trading rules and plans.

    Why are trading rules and plans so important?

    Before traders feel the emotional or psychological crunch, they need to create trading rules. That will keep your heads in the right place. You should lay out guidelines based on your risk-reward tolerance for when you will enter a trade and exit it, whether through a profit target or stop loss. The emotion is not part of the equation. It would be also wise to consider setting limits on the amount you are willing to win or lose in a day. If the profit target is hit, you can take the money and run. But if losing trades hit a predetermined limit, you can roll your tent and go home, preventing further losses.

    Every single trader should be able to read a balance sheet or a chart. But there is a psychological component to trading that shouldn’t be overlooked. You have to know how fear and greed can impact trading. That’s why you should exercise discipline, and develop trading rules and plans. Never forget that part of trading.

    If you have any experience with this, let us know. Share it all.

    Risk Disclosure (read carefully!)

  • Is Your Money At Risk When Trading

    Is Your Money At Risk When Trading

    You must already know that the financial markets are full of risks.

    But still, some people do make good earnings in trades. So the question is: How?

    The answer: They pay attention to risk management just like they pay attention to where to invest, sometimes – A LOT MORE!

    So, how to avoid risk?

    Remember: You can NOT!!! There is no guaranteed earnings in cryptocurrencies, forex, stocks, bonds, options nor anywhere else! If someone was earning before you it is not a guarantee that you will earn too!

    But you can be smart and smarter.

    When someone suggests you invest in a particular asset, here’s what to pay attention to:

    – If you are guaranteed a profit, it’s definitely a scam.
    If it is not guaranteed by the company, but the individual who represents that investment, then that individual is either a fraudster or uninformed. In that case, I suggest you find someone else.

    – If the currency\asset can not be bought or sold on the free market, you should be very cautious. In this case, you should assume that they can manipulate the price and keep it at an unrealistically high level in order to make the investment cost-effective.

    – Cryptocurrencies are generally open-source if not, it is doubtful. When a currency is hidden by code, it is most often because they want to hide the fact that they are not actually cryptos.

    WHERE THE TRUE RISK IS?

    First of all, you have to know that long-term trading inevitably involves losses and no trader can have 100% winning trades all the time.

    And the answer: IN YOUR KNOWLEDGE!!! And your attitude too!

    To succeed as a trader, the size of your potential losses needs to make sense compared to the original profit potential on each new position. If you are not disciplined and your attitude to risk and reward is not balanced, it is easy to fall into the trap of holding losing positions for too long. Having a hope that things will turn around before eventually closing out for a large loss, makes little sense if your objective was to make a small profit over a few hours.

    The long-term trading profit comes from this combination:

    – the number of profitable trades compared with the number of losing trades

    – the average value of profits on each trade compared with the average value of losses.

    The most important is to combine the relationship between reward and risk.

    Many successful traders actually have more losing than winning trades, but they make money because the average size of each loss is much smaller than their average profit. Some have a moderately average profit value compared to losses but a relatively high percentage of winning positions

    RISK MANAGEMENT IS IMPORTANT

    Managing risk means that you have identified the dangers and have taken the trades that have a high probability of success.

    If you don’t have a consistent risk management strategy, you will lose money. It’s as simple as that!

    You should ask yourself:
    1. What position size per trade should I take?
    2. How much of my funds should I risk?

    You can use two great techniques, taken from the world of game theory, which is used by professional traders.

    a) RISK OF RUIN (ROR)

    Use the Risk of Ruin formula: (1-(W-L))/(1+(W-L))^U W/L = win/loss percentage U = Capital units

    Let me explain to you this on 2 examples (both have 30% drawdown). We have two traders.

    Trader A: $50k pot, 10% risked per trade, 60%/40% win/ loss ratio, 3 capital units: = 30% RoR

    Trader B: $50k pot, 1% risk per trade, 60%/40% win / loss ratio, 30 capital units: = 0.000005214% RoR

    It’s obvious what you have to do! Increase your W/L ratio or reduce your trade size. You donĂ­t want to lose 100%, so you have to set yourself a maximum limit of 30% of your portfolio value.

    b) KELLY’S CRITERION:

    This is a money management technique that was developed by John Kelly, a physicist and computer scientist, who worked for AT&T in the 1950s.

    This theory can give you answer to questions: How many trades should I have on at once and How much of my portfolio do I want to put at risk, per trade?

    That means that you must have a strategy.

    Example: 60%/40% Win / Loss ratio average risk-return = 2 : 1 = 33.3%This shows that you could use 33.3% of your capital on a particular strategy.

    USING STOPS

    You should have rules that you will act upon while you are in a live trade or investment. These rules should include how you will move a stop or adjust to a trailing stop.

    You should always be taught to trade with Stops. Stops are a trade management tool that let you stop a loss or stop a profit (they are known as a LIMIT order, too). The golden rule when using stops is, don’t ever adjust your stop, pushing it wider, just because the trade is going wrong this is fatal!

    By using orders such as the limit stop order, the market stop order, or the trailing stop order, you can easily control at what point you exit a position.

    In this way you can limit the risk you are exposed to on each and every trade you make.

    POSITION SIZING

    Position sizing is basically deciding how much of your capital you want to use to enter any particular position, it is a form of diversification.

    If you use a small percentage of your capital in any one trade, you will never be too reliant on one specific outcome. Even the most successful traders will make trades that turn out badly from time to time. The key is to ensure that the bad ones don’t affect you too badly. And avoid money risk.

    INSTEAD OF CONCLUSION

    It is important to have a detailed trading plan that lays out guidelines and parameters for your trading activities.

    Risk and trade management may not be the most exciting part of trading, but they are absolutely essential if you don’t want to lose all your money.

    And the best advice you will ever get: Trading and use of information presented here are at your own risk. And your money risk, also.

    Feel free to share this with someone you know to be interested in trading.

    Are you a beginner?

    Click here to see what we’ve got for you on the How to Start Trading – Beginners

    Are you an advanced trader?

    No problem, you’ll get all the information you need in our How to Master in Trading – Advanced

    Good luck!

  • The Best Broker and How To Choose?

    The Best Broker and How To Choose?

    forex broker
    Choosing the best broker seems like a simple process. But in reality, it can be a nightmare.

    By Guy Avtalyon

    Finding the best broker is not easy. Not at all!!! I’ll give you seven tips on how to do that.

    In the very beginning, you want to be sure that the broker has the right credentials, understands the market, has similar wealth-building beliefs as you do. Trust me.

    What is the main point  when you have to choose the best broker

    a) make sure a broker offers the services and features you most need,
    b) don’t pay extra for services and features you don’t need or want.

    The best approach is to make a list of facilities you want from your broker. 

    Tips and tricks for choosing the best broker

    1. Minimum Trades  – Check if there is a clause about minimum trades that you will have to do as well as the penalty for not complying with the requirement. There are actually brokers who have no minimum requirement or require only a few hundred dollars.
    2. Costs – Consider the commissions and other fees that broking companies charge.  Brokers typically have a wide assortment of fees for cost per trade. That’s the holy grail of the online brokerage universe.
    3. Customer service – Look for customer reviews online or on specialized forums, please. Make sure that the broker offers such support and it’s available during more than just “regular business hours”. Check if it’s available in various forms: email support and live chat can be more convenient contact methods than a direct phone.
    4. Investment options – Some ‘’full-service’’ brokers may not offer products of all asset management companies or AMCs. A good broker is one that offers you the ability to invest in a large number of assets: stocks, bonds, mutual funds, exchange-traded funds (ETFs), real estate investment trusts.  You will need a broker who can provide you with all of the possibilities if you want to spread your investment wings.
    5. Investment Advice – The problem may arise if you are not DIY (do it yourself) type. Some brokers will offer limited investment advice, while others will provide a full investment advisory service, usually for a small fee, some will charge a higher fee if you need broker assistance. You have to explore what suits you best.
    6.  Asset Allocation Guidance – Especially for new investors Asset allocation is one of the more challenging investment functions. It can be complicated enough to decide on initial asset allocation, but even more, involved to maintain that allocation going forward. Periodic rebalancing is not the easiest of tasks if it must be done manually and will be necessary to do from time to time. Most robo advisor services will handle asset allocation and automatic rebalancing as part of their account management fee. If you’re looking for “hands-off” investing, robo advisors could be the best option for you. You have to find out if the broker offers this service and if there is an additional charge.
    7. Types of Retirement Accounts  – It’s best to confirm this at the very beginning that the broker offers multiple types of retirement accounts to invest in. And even if you want only a regular investment account right now, you may decide to open a custodial account for one of your children in the future. If you have confirmed that these options are existing before you first sign-on, you can be relaxed. I know that most investors like to have all of their various accounts with a single broker, particularly if they are happy with the service.

    What type of trader do you want to be?

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

    You have to determine if you’re an investor which means long term investing, or active trader, short term trading. If you are still learning how to trade stocks online, you shouldn’t rush into choosing a broker. Everyone eventually develops their own trading style.

    Online stock brokers offer a wide array of features and fees. Choosing a broker with a good reputation is worth it. Someone with the features you really need and a reasonable fee structure. Don’t let yourself be attracted by a platform with the bells and whistles. Especially when you are at the beginning.

    Readers, what do you look for in the right investment broker? Let me know and share it with others.

     



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