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  • Full in-depth analysis report on stocks: BMY, MRK, LLY, ABBV, PFE

    Table of Contents

    Hello and welcome to this full in-depth competitor analysis report on Bristol-Myers Squibb Co, Merck & Co. Inc., Eli Lilly And Co, AbbVie Inc, Pfizer Inc.

    I am Traders-Paradise.com’s analyst bot.

    Yes, that’s right. Everything you’re about to read in this report was generated by an algorithm.

    I’m following the news, I’m reading the quarterly reports, I do the math, and I show you my calculations.

    All the data shown is real and recent (to the date of this post. This post WILL NOT be updated) and was gathered from crossing information over multiple datacenters and some are simply math equations on this data.

    This data is supposed to help you, the trader, in making smarter trades. That is how my developer uses me.

    At the end of this post you can see my, the analyst bot, assumptions.

    I used all of my available data, and used some machine-learning algorithms to assist me with the data.

    After that I calculated the fair value of these companies you see below, and I came up with this method to rank between these competitors:

    Green = Good business/underpriced. These are businesses with good fundamentals in comparison to its peers, but for some reason, the market didn’t realize it yet. Or there are other problems.

    Orange = Currently valued. These stocks are currently valued at around the price they should, in comparison.

    Note: None of the written below or above isn’t a guarantee for success. Use at your own risk.

    Full in-depth report on competitor companies (peer analysis)

    Ever wanted to analyze Eli Lilly And Co and didn’t know how? Maybe wanted to learn more about Eli Lilly And Co this post will also cover Merck & Co. Inc. and their peers.

    This report will walk you through the hard work of analyzing data. In fact, even retrieve data isn’t a simple task. That’s why this analyst is made. To help you, the trader, in gaining access to top-notch accurate and recent data. You cannot find this kind of tables anywhere else. All of the following companies has been recognized as players in the same area field that the other companies in the list play in.

    This data is free. Use on your own discretion.

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      This report will use the public and known data for the companies stated in the following list:

        Bristol-Myers Squibb Co
    • Symbol: BMY
    • Sector: Health
    • Market Cap: 156.67 BN
        • Merck & Co. Inc.
    • Symbol: MRK
    • Sector: Health
    • Market Cap: 208.29 BN
        • Eli Lilly And Co
    • Symbol: LLY
    • Sector: Health
    • Market Cap: 276.08 BN
        • AbbVie Inc
    • Symbol: ABBV
    • Sector: Health
    • Market Cap: 289.23 BN
        • Pfizer Inc.
    • Symbol: PFE
    • Sector: Health
    • Market Cap: 296.17 BN

      • Symbol = The company’s stock symbol.

      Sector = The sector of which the company work in. Most of the time we compare between same sector, but sometime we take for comparison a company from a different sector but close enough bossiness to be able to add for comparison.

      Market Cap = The total value of the company. All the shares available multiplied by the most recent price of its stock.

      Most recent and current stats for each company

      Note that current stats does not update.

      Data Collected = All of the data in this report was collected to this date, and is valid to this date only. Data does not update.

      Price of Last Trade = The last price in $USD this company’s stock has traded.

      Daily Change = The first in $USD change from previous day and the second in actual percentage of the price.

      Short Interest Ratio = The short interest ratio represent the number of shares shorted divided by the stock’s average trading volume. Rule of thumb indicates the the lower the short interest ratio meaning that not many are willing to bet against the stock. But, in some cases, you might see a ‘short-sqeeze’ meaning people are buying the stock hence driving it up while the shorts see their trades lose, forcing them to buy back the stock at a lose and continue the buying circle driving the price much higher.

      Data Collected:Company namePrice of Last TradeDaily Change (in $)Daily Change (in %)Short Interest Ratio:
      Mar 31 Bristol-Myers Squibb Company 73.375+0.195(0.27%) 3.41%
      Mar 31 Merck & Company, Inc. 82.85+0.45(0.55%) 1.5%
      Mar 31 Eli Lilly and Company 289.82-0.07(-0.02%) 2.26%
      Mar 31 AbbVie Inc. 163.96+0.21(0.13%) 1.89%
      Mar 31 Pfizer, Inc. 52.31-0.13(-0.25%) 1.95%

      Important fundamentals stats about the companies

      Bottom line: How these companies’ sales and profit preform in comparison to their competitors

      Company nameRevenueNet incomeEPS
      Bristol-Myers Squibb Co 46.39 bn 6.99 bn 3.12
      Merck & Co. Inc. 48.7 bn 12.35 bn 5.14
      Eli Lilly And Co 28.32 bn 5.58 bn 6.12
      AbbVie Inc 56.2 bn 11.47 bn 6.45
      Pfizer Inc. 81.29 bn 22.41 bn 3.85

      Revenues = How much money did the company gain in the previous 12 months, according to official statement the company itself gave on its reports.

      Net income = How much they are left with, after all the expenses.

      EPS = Earning per share (EPS) is is calculated as a company’s profit divided by the total outstanding shares. A high EPS indicates that the company is more profitable and has more profits to distribute to shareholders.

      Employees stats

      Employees are both the most expensive part of the total expenses of a company, and at the same time – its most valuable asset.

      Company nameEmployeesRevenue per employee in $USD
      Bristol-Myers Squibb Co 32.20k 1,440,528.0
      Merck & Co. Inc. 68.00k 716,235.3
      Eli Lilly And Co 35.00k 809,097.1
      AbbVie Inc 50.00k 1,123,940.0
      Pfizer Inc. 79.00k 1,028,962.0

      Employees = Number of total employees as found on several public resources.

      Revenue per employee = In general, how much money every employee is generating to the company. The higher is better.

      Advanced stats

      A more in-depth perspective on the companies

      Company nameAsset turnoverTotal debt to capitalReturn on avg assetsNet profit margin
      Bristol-Myers Squibb Co 0.4073 % 0.553 % 6.16 15.12 %
      Merck & Co. Inc. 0.4938 % 0.4639 % 12.53 25.37 %
      Eli Lilly And Co 0.5934 % 0.6484 % 11.7 19.71 %
      AbbVie Inc 0.3783 % 0.8324 % 7.77 20.55 %
      Pfizer Inc. 0.4843 % 0.3316 % 13.38 27.63 %

      Asset turnover = This ratio of total sales to average assets can offer an understanding to how effectively companies are using their assets to generate sales and make more money. Usually, higher is better.

      Total debt to capital = the D/E Ratio shows the weight of total debt and liabilities against total shareholders’ equity. usually, lowers is better.

      Return on avg assets = The return on average assets is useful in measuring profits against the assets used by a company for generating profits. Usually, higher is better.

      Net profit margin = measures how much net income or profit is generated as a percentage of revenue. Usually, higher is better.

      According to the data above, our analyst bot has ranked these companies

      Ranking companies isn’t an easy task. Much can vary, much can change, no one can predict the future.

      That’s why I, the analyst bot, try to take as many variables as I can (in the algorithmic limitations) and try to use it to value and rank the companies in this report.

      With that being said, I urge you to look at this results in an educational way as this is not meant to be a trading recommendation of any sort.

      In the score metric, it considered lower to be of better performance.

      Company nameScore:Results:

      Bristol-Myers Squibb Co

      90

      Under Valued

      Merck & Co. Inc.

      93

      Under Valued

      Eli Lilly And Co

      155

      Valued

      AbbVie Inc

      106

      Under Valued

      Pfizer Inc.

      85

      Under Valued

  • What is Alpha in Trading?

    What is Alpha in Trading?

    What Exactly Is Alpha?

    The ability of an investment strategy to beat the market, or its “edge,” is referred to as alpha (Îą). As a result, alpha is also known as “excess return” or “abnormal rate of return,” which alludes to the assumption that markets are efficient and that there is no way to systematically achieve returns that are higher than the overall market. Alpha is frequently used in conjunction with beta (the Greek letter), which quantifies the overall volatility or risk of the market as a whole, also known as systematic market risk.

    • Excess returns earned on an investment over the benchmark return are referred to as alpha.
    • Diversification is meant to eliminate unsystematic risk, and active portfolio managers strive to produce alpha in diverse portfolios.
    • Because alpha measures a portfolio’s performance against a benchmark, it’s commonly thought of as the value that a portfolio manager adds to or subtracts from a fund’s return.

    To put it another way, alpha is the return on an investment that is not influenced by broader market movements. As a result, an alpha of zero means that the portfolio or fund is perfectly mirroring the benchmark index and that the manager has contributed or lost no additional value over the general market.

    Advantages of Alpha

    Fund managers can use alpha to get a sense of how their portfolios are doing in comparison to the rest of the market. Alpha can be a useful tool in trading and investing for determining market entry and exit opportunities.

    The disadvantages of alpha

    The drawbacks of using alpha as a way to measure returns include that it can’t be used to compare different investment portfolios or asset kinds because it’s limited to stock market investments.

    Beta vs. Alpha

    To compare and analyze portfolio results, alpha and beta are utilized together. While alpha is a measure of a portfolio’s performance, beta is a measure of its historical volatility – or risk – in comparison to the overall market. For example, a beta of 1.2 indicates that the stock is 20% more volatile than the market.

    Conclusion

     Alpha is a technical analysis ratio that shows how a stock has performed or given outcomes when compared to a benchmark or market index. The alpha percentage, which is commonly expressed in simple numbers like alpha 4 or 5, or alpha -1, is the amount by which a stock or portfolio has excelled or underperformed its benchmark. A high alpha indicates a strong stock, while a low alpha indicates a bad stock.

  • What Is a 529 College Savings Plan?

    What Is a 529 College Savings Plan?

    What is 529 plan?

    A 529 plan is a tax-advantaged savings account that can be used to help pay for college. It was initially confined to post-secondary education fees, but in 2017 and 2019, it was expanded to include K-12 education and apprenticeship programs. Savings programs and prepaid tuition plans are the two main forms of 529 plans.

    Savings plans grow tax-deferred, and withdrawals for eligible school costs are tax-free. Prepaid tuition plans allow account holders to pay for tuition at specific colleges and universities in advance, locking in today’s rates. Qualified tuition programs and Section 529 plans are other names for 529 plans.

    529 Plans: What You Should Know

    Despite the fact that 529 plans are named after Section 529 of the federal tax law, the plans are managed by the 50 states and the District of Columbia. A 529 account can be opened by anybody, however it is most commonly done by parents or grandparents on behalf of a kid or grandchild who would be the account’s beneficiary. In some places, the person who finances the account may be able to deduct their contributions from their state taxes.

    Until it is removed, the money in the account grows tax-deferred. Withdrawals aren’t subject to state or federal taxes as long as they’re spent for eligible school costs, as defined by the IRS.

    529 Plans Have Tax Benefits

    If the money is utilized for approved school costs, the earnings in a 529 plan are tax-free on both the federal and state levels. With the exception of specific conditions, such as death or disability, all other withdrawals are subject to taxes and a 10% penalty.

    For federal income tax reasons, the money you put into a 529 plan isn’t deductible. Contributions to a 529 plan, on the other hand, are eligible for tax deductions or credits in more than 30 states.

    If you desire a state tax deduction or credit, you should generally invest in your home state’s plan. Some states will enable you to invest in the stock market if you are ready to forego a tax incentive.

    What happens if the recipient does not attend college is one of the most difficult things to answer. In other cases, such as if the child attends a military academy, taxes or penalties are waived. However, if the child just changes his or her mind, the 529 funds may be subject to tax and penalty if withdrawn.

    Last but not least

    529 plans will be the obvious choice for college savings for many families. Most plans have age-based investing options that will automatically rebalance, taking greater risk when your child is younger and less risk as he or she gets closer to college age. You can open a 529 plan immediately on the website of your state’s plan.

  • What is the Pareto Principle in investing

    What is the Pareto Principle in investing

    The Pareto Principle is one of the world’s most popular theories for management. In particular, it’s pointed out that 20 percent of the actions are the impact of a circumstance in most cases.
    In some companies, for example, a majority of sales are generated by a few customers. The Pareto principle is currently used in stock and financial markets, also known as the 80/20 or 80-20 rule.

    • According to the 80-20 rule, 80% of outcomes (outputs) are the result of 20% of causes (inputs).
    • The 80-20 rule states that you should focus on the 20% of things that will create the best results.
    • The 80-20 rule states that an entity’s best assets should be identified and used efficiently to maximize value.
    • This “rule” is more of a guiding principle than a hard-and-fast mathematical rule.

    In the trading industry, the 80-20 rule is often used. You might find that trading a particular currency pair or stock yields the maximum returns for you as a trader. Trading firms may discover that 20% of their traders generate the majority of their income.
    Similarly, businesses may find that trading a certain asset type, such as stocks or cryptocurrencies, generates the majority of their revenue.
    The 80-20 guideline can be used to trading days or seasons. For example, you might find that the morning sessions or the first part of the year provide 80% of your income.

    It’s important to note that 80-20 is only a starting point. It’s possible to modify the ratio to 70-30 or 60-40.

    In company management, the 80-20 rule has proven to be useful. 20% of a company’s clients account for 80% of sales. In addition, 20% of the workforce is responsible for 80% of the outcomes. Many managers have observed that the first 20% of a project’s effort delivers 80% of the project’s results. As a result, the 80-20 rule can assist managers and business owners in focusing 80% of their time on the 20% of their firm that produces the best outcomes.

    The 80-20 rule in investing states that 20% of a portfolio’s holdings account for 80% of its growth. On the other hand, 20% of a portfolio’s assets may be responsible for 20% of the portfolio’s losses.

    In finance, when does the 80/20 rule come into play?

    In the corporate world, this idea has been used to assess and improve management (when 20% of workers create 80% of outcomes), sales tactics (20% of clients generate 80% of revenues), and operations (80 percent of product defects come from 20 percent of production problems).
    The 80/20 rule is frequently used to assist budgeting in personal finance. It instructs people to deposit 20% of their monthly income into savings, whether in a typical savings account, a brokerage or retirement account, to ensure that they have adequate money set aside in case of financial trouble, and to spend the remaining 80%. In investing, it’s been discovered that 20% of a portfolio’s assets account for 80% of its growth. On the other hand, 80 percent of investment losses may be traced back to 20 percent of assets. However, due of the volatile nature of the stock market, this rule is frequently used to assess past purchases rather than to direct future ones.

    Pareto rule is not an actual math law

    The 80/20 rule is neither a rigid or precise mathematical formula, and it is based on anecdotal data rather than scientific research. The fact that the two figures sum up to 100 percent is just coincidental, and the inputs (80%) and outputs (20%) are simply designed to symbolize distinct units rather than be used to guide exact computations.

    Examples to Pareto Principal:

    80 percent of traffic comes from 20% of posts.
    The Pareto 80/20 rule may be used by content marketers to assess the most productive postings. Find out what they have in common and try to incorporate them into your future content efforts.

    Additionally, with the remaining 80%, strive to optimize them by adapting them to the 20% that are successful.

    80 percent of the program’s functionality is accounted for by 20% of software development efforts.
    Programming hours are costly, and understanding the Pareto 80/20 rule may be a deciding factor in the development of new software, allowing the production of a best-practices handbook and a database of successful projects to reference.

    How to apply 80 / 20 principal to my portfolio

    Despite the fact that the 80/20 rule has a wide range of applications, investing professionals advise against using it to create a portfolio.

    When people put 80 percent of their money into safer assets like savings bonds and the remaining 20% into riskier growth equities, the 80/20 rule may be utilized to successfully manage risk. The 80/20 rule, on the other hand, should not be used to try to hand-pick stocks that can possibly generate 80% of your profits.

    The monetary takeaway

    The 80/20 rule states that the majority (80% ) of a situation’s or process’s outcomes arise from only a few (20%) of its causes. Although this rule may be used in a variety of situations, financial professionals warn against utilizing it to make portfolio decisions.

    Rather of trying to design a portfolio where a few assets shine, it’s better to set clear, quantifiable investing goals and protect yourself with a diverse portfolio.

  • Today’s 3 trading opportunities ( July 15, 2021 ) + Results!

    Today’s 3 trading opportunities ( July 15, 2021 ) + Results!

    Our trading algorithm found many opportunities today. Here are 3 of them + the best trading strategies our algo-trader found.

    Please note: These strategies might take up to few weeks to end. Be patient.

    Invesco Ltd (NYSE:IVZ) – Current price: $26.02

    Strategy
 Take Profit = $145.03
 Stop Loss = $133.96

    Click “Play” to see what actually happened:

    KLA Corporation (NASDAQ:KLAC) – Current price: $309.12

    Strategy
Take Profit = $327.71
Stop Loss = $282.15

    Click “Play” to see what actually happened:

    Sun Communities, Inc (NYSE:SUI) – Current price: $181.37

    Strategy
Alert: $171.69
Take Profit = $174.97
Stop Loss = $165.41

    Click “Play” to see what actually happened:

     

     

     

  • Today’s 3 trading opportunities ( July 13, 2021 )

    Today’s 3 trading opportunities ( July 13, 2021 )

    Our trading algorithm found many opportunities today. Here are 3 of them + the best trading strategies our algo-trader found.

    Please note: These strategies might take up to few weeks to end. Be patient.

    Dollar Tree Inc. (Symbol: DLTR) – Current price: $98.95

    Strategy
 Take Profit = $106.56 
 Stop Loss = $87.44

    Click “Play” to see what actually happened:

    Ball Corporation(Symbol: BLL)- Current price: $84.76

    Strategy
 Take Profit = $87.43 
 Stop Loss = $80.31

    Click “Play” to see what actually happened:

    IBM (Symbol: IBM)- Current price: $140.92

    Strategy
 Take Profit = $145.03 
 Stop Loss = $133.96

    Click “Play” to see what actually happened:

     

  • What Is better: Investing or Trading and what are the differences?

    What Is better: Investing or Trading and what are the differences?

    Investing or trading is the right question.
    Let us explain the differences between traders and investors, at first.
    Stock traders are individuals (or entities) engaged in the trading of equity securities, or the transfer of other financial assets.
    They work either for themselves or on behalf of someone else.  Hence, they may operate as agents, hedgers, arbitrageurs, speculators, or investors.
    Stock investors are individuals (or entities) who use their own money to buy equity securities. The goal of the stock investor is to gain returns, which come in the form of income, interest, or appreciation in value also known as capital gains.

    Differences between trading and investing:

    Investing and trading may often be classified together.
    But, they are both different ways of attempting to profit from the financial markets.
    The goal of making investments is to progressively increase wealth over a long period of time by using the buying and holding of a portfolio of stocks, mutual funds, bonds and other methods of investment.
    Trading involves short-term buying and selling of stock and commodities such as currency pairs and other instruments with the goal of earning profitable returns which outperform traditional buy and hold investing.
    For example, while most investors may be satisfied with a 10% annual return, traders may seek to achieve this per month.

    Differences between trading and investing 1

    Period of acting

    Return on investment and payback period seem to be the two most commonly used financial metrics for making sustainability investment.
    Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! The trader holds stocks till the short term high performance.
    On the other hand, investing is an approach that works on buy and hold principle.
    Investors invest their money for some years, decades or for the even longer period.
    Short-term market fluctuations are irrelevant in the long-running investing.
    Growth of capital
    Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks.
    So we can say, trading is the skill of timing the market.
    But investing is an art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the market.

    Risk of both fields

    Both, trading and investing, include risk to your capital.
    But trading involves higher risk and higher potential returns. The price might go high or low in a short while.
    Investing takes a while to develop (and there’s a whole course we created to explain how to do it). It involves comparatively lower risk and lower returns in a short run but might deliver higher returns by putting together interests and dividends if held for a longer period of time.
    Daily market cycles do not affect much on quality stock investments for a longer time.

    Essential Differences

    Trading is a one day match while investing is a championship.
    Similarly, traders are skilled, technical individuals, they learn market trends to hit higher profits in the stipulated time.
    It is related to the psychology of the market.
    Investors, on the other hand, analyze the stocks they want to invest in. Investing also includes learning business fundamentals and commitment to stay invested for a longer term.
    It is related to the philosophy that runs the business.
    For example: If in the company’s balance sheet you see the inventory cell is too high, that might indicate problems with selling and marketing. This also may suggest higher and unnecessary payments for containing the inventory. This usually leads to some drops in stock price.
    Traders put money in stock for a short-term, buy and sell fast to hit higher profits in the market. They seek a smaller and shorter opportunity.

    Missing the right time may lead to a loss.

    They look at the present performance to hit the higher price and book profits in very short term.
    Investors keep themselves away from trends and invest in value.
    They invest for a longer period of time keeping the attention of the stocks they hold. They wait till the stock reaches its potential.
    You are the one to decide if your goal trading at a higher price making a smaller profit in a short time. Or holding on and sell at the much higher price, in the long run, is what you aim for.

    Differences-between-trading-and-investing-table

    A key rule of trading is to only do so when you are certain that there is an upcoming future event which is predicted to drive the stock value of an organization or entity higher, yet it is obviously not an easy task. If you think an asset’s price will go up – it’s clear that many other traders also know what you know. So it’s important to be one of the first who starts their position. If an asset has already made its rise – it’s not the best time to buy!
    When trading, there are certain strategies which must be put in place.
    Traders should take note of the news and use it to make an educated decision which will hopefully enable them to make a profit afterward.
    This shows the difference between trading as a short-term investment and investing as a long-term method of gaining wealth.
    When investing, the goal is to bank profits over the long term, with dips in value simply providing the opportunity to buy more of the commodity in question.
    Investing means sitting it out when the commodity rises in value as there will likely be more good news ahead for the company and more profits to be made.

    If you are new to the world of investing and trading, it’s important to know which you are going to choose.
    The imperative to increase your financial gain is what defines it.

    Knowledge is the key.

    If you are knowledgeable about the stock market but have little idea about how to trade Forex, for example, you will naturally head over to the stock market for your first investment.

    General advice: Don’t get investing and trading confused – it could seriously hurt your portfolio!

  • When Is The Right Time To Invest In Crypto?

    When Is The Right Time To Invest In Crypto?

    When’s the right time? Let us be clear. For those without experience, it’s never the right time. That means you MUST have knowledge, information, and experience with a free trial demo account.

    After you test everything you may say it is a right time for further step: investing and trading cryptocurrencies.

    You can make really serious money on cryptocurrencies, that is true.

    But you have to take care of several things.
    We would be very careful when investing in any crypto because all prices of cryptocurrencies have dramatical ups and downs.
    Generally speaking, we would not advise anyone to invest if there is a misunderstanding about what they are investing in.  And when the only expectation of further growth based on previous growth is present.
    In addition to the famous and biggest Bitcoin, you can find many other interesting cryptocurrencies on the market.
    When we say ”interesting” it means that we think their concept is interesting, not the potential for price growth. For example, we don’t know when you’re reading this – but now, Facebook is working on its own crypto coin. What will it use to exactly, is still a mystery.

    Before you decide to trade cryptos, keep in mind that you feel well informed.
    And if you are not ready to lose what you have invested, you should not even try because there is no easy earning!
    Is this the right time for trading or investing cryptos?
    There is an obvious difference between those two terms – trading and investing.
    Investing refers to the purchase and storage of cryptos.
    Trading involves the active participation in the stock market and frequent purchases and sales in an attempt to profit from price changes.
    If you are asking us about trading, it is always a good time for professional traders, for those inexperienced and untrained it’s never the right time.
    Our opinion is that no one should engage in trade cryptos, without basic knowledge about it.
    First of all, everyone should bear in mind that it is possible to lose everything, whether due to bad decisions or because of security failures of the user or the stock market.
    Who is not ready to lose everything that has invested –  such a person should not invest.

    When referring to crypto trading and investing – since there no REAL value, the prices may vary and go as high as 1 million dollars per coin or 0.00001 dollars per coin. There’s no real value, but it does worth something because it solves a problem.

    And may I say – a big one. It allows people to transfer anonymous money!
    This means you can buy illegal services/merchandise with it – this will always have demand. But not only that, you can hide your activities and make genuine and “white” money without anyone knows it’s you or the government know. We, for example, have a supplier that we know who he is, is not doing anything illegal, but he wants to get pay in crypto.
    The ONLY way the crypto industry can totally fall (and in this case – worth exactly zero) it if the technology behind it, the blockchain, will be found as useless.

    It hasn’t happened and it might never happen (or until a quant computer will arrive to the world, but that for another story…)
    Also, you should be careful in choosing a stock exchange.
    Always use strong codes and “2-factor authentication” and you should be able to think on your feet.
    Most popular exchanges like Binance, Bitrex, Coin Exchange, Kraken, Kucoin, HitBTC, Gate.io, and Cryptopia recommends Google Authenticator.

    Few exchanges accept Authy and few exchanges have their own 2FA service.
    This is very significant for online security hence whichever exchange or trading sites you are on make sure to enable 2-factor authenticator.
    Do not fall into euphoria when prices rise and do not panic when they fall.
    How big is the initial capital?  Also, how much money you need to start trading crypto?
    It depends on how much you are ready to lose, how much you expect to earn and how much you are inclined to risk.
    We have to emphasize that the right answer is your individual assessment.

    How to track the value of cryptocurrencies?

    You have to be registered on one of the stock exchanges where the cryptos are traded, to verify the order and deposits money.
    That’s all – when the money is deposited in the stock market, it can be traded.

    It is highly recommended for beginners to try their skills on some free demo account and after that, they are pretty ready to play with real money.

     

     

  • Do Forex signals work 

    Do Forex signals work 

    By Gorica Gligorijevic
    • If you want to turn $200 into $15,000 in a few months?  No, Forex signals will not work for you.
    • If you want to win every trade, every week and every month?  No, Forex signals will not work for you.
    • It will work if you want to systematically participate in the Forex market over the long term and slowly grow your wealth.

    Yes, Forex signals can work for you if you choose the right service.

    It is unbelievable how many signals services are impossible to follow in the real world and how many signal followers have unrealistic goals when joining a signals service.

    Let’s put this in some realistic frame.

    Real signals providers have to go through a test period. Providing signals for other traders take some responsibilities. They must provide personal data, for example, personal and last name, passport copy, address, contact info, etc. It is needed in case of any conflicts between a subscriber and a provider. This data are known only between those two parties, subscriber and provider.

    You will recognize the valuable signal provider if you can see that the signal name is fully specified. Your provider has to specify the type of terminal, is it MetaTrader4 or MetaTrader5, also, he or she has to add a broker’s server name. The information also must contain the number of the account that will transfer the signals and traders password for ‘read-only’ mode. If a signal providers service isn’t free, the provider must have been registered as a provider with qualification, meaning passed some tests and examinations, so he/she can be a signal seller giving original practices.

    And say we have this situation, to show you how exactly your deposit will play via trading signals service with maximum protection for each participant. 

    Let’s examine a specific example.

    Provider’s balance is $20,000 , leverage 1:100
    Your balance is $50,000, leverage 1:200, deposit load percentage is 50%
    And assume you are betting on EURUSD currency pair where the exchange rate is 1.1047.

    Your balances ratio regarding the defined part of the deposit in percentage terms is

    (50 000 * 0,5) / 20 000 = 1,25 (125%)

    Let’s examine the leverage. Your leverage of 1:200 is greater than provider’s which is 1:100, hence it isn’t necessary to perform the correction on leverages.

    Currency rate of the deposits at the moment of calculation:

    1,25 * 1,1047 = 1,3808 (138.08%)

    After rounding, the total percentage value is 140% or 1.4 ratios.

    Therefore under the settled conditions, provider’s deal with a volume of 1 lot will be copied to your account in the amount of 140% which is the volume of 1.4 lots.

    That’s how Forex trading signals work.

    If you want to have a good experience with a Forex signals service there must follow these two things:

    • You need to use a Forex signals service that is designed so the signal follower can get similar results to the service with relative ease.
    • You need to align your expectations with reality and understand what can and what cannot be accomplished by following a Forex signals service.

    We all know how this can be difficult. The point is that if you don’t have any previous training experience you will not be able to know what reasonable expectations really are.
    We are surrounded by all the hype of quick and large profits and it is really hard not to be misled.

     

    Trading With Signals 19

    An example of a Forex trading signal

     

    But, the simple answer is: Yes, copying forex signals are feasible with one condition: Forex signals can work if you find the trusty service. You need to find the trusty service that you can trade and that realize your expectations. If not, you will constantly be disappointed and keep searching for something better. The best way to figure out if Forex signals work and the service is suits you is to take a trial.

    Types of Forex signals

    Signals are basically electronically transferred bits of information that you can opt to receive via your email on your PC or your laptop, as well as your mobile phone. It is no matter where you are, you can receive this critical need-to-know information.

    Signals inform you of the best times to purchase or sell the asset you are actively trading in. It also lets you know when you should place profit limit orders or protective stop-loss orders that are critical to your financial good.

    Forex trading signals are normally referred to as entry and exit signals. They have to be a result of detailed analysis, research, and tracking. When the signals are transmitted to you, keep in mind that they are only considered as accurate and active for a brief period of time. So, you have to react quickly.

    The type of signal is determined by the specific function it may have and how it generally operates.

    Technically there are two types of FX signals which are permanently available in the Forex market, and they are:

    • Manual Forex signals
    • Automated Forex signals

    When the first type of signal is used, a trader has to sit in front of the computer for a large amount of time, looking for signals to make a final decision on whether to buy or sell a certain currency.

     

    An example of Forex daily signals

    But the most popular type of Forex signal is copy-trading signals.

    The clue is in the name, as to how they work. It involves following the trades of other real traders and copying the trades that they make. There are many different copy-trading signal providers. Traders are allowed to enter the service to become signal providers, but there are usually several specific requirements, such as set trading volumes.

    Other traders can choose to use the platform and follow these signal providers. Copying another person’s trade can happen automatically, or the signal service will send a notification and then it’s up to the individual trader to execute the trade manually, should they want to. It is usual for this type of signal service to charge a subscription fee or take a commission from a trader’s profit. The signal providers who are being followed charge commission on the profits of the traders that are following them.

    This type of signal service has become very popular because all the participants in the business only make money if the traders using the service makes money. The significant about automated Forex signals is that the trader only commands the software to seek what signals to look for. The human psychological pressure is completely removed. There is the software which will automatically interpret what action to choose: buy or sell a concrete currency. Trading in this way can be quite perfect as long as it is done in a proper way and by a genuine expert.

    The software can process much more data compared to a human Forex trader.

    So, you are able to manage several currency pairs at one time. And you are also able to monitor all the charts you desire 24/7 and without missing any significant signals. But the most successful appliance of signals is utilization a hybrid of both types.

    And that is what the most Forex gurus do.

    Trading With Signals 16

    An example of Forex automated signals 1

    This type of signals service doesn’t use real people to generate the signals. Instead, these are automated or algorithm-based signals, which scrutinize various charts and make predictions and can be relatively accurate Forex signals. This type of Forex signal uses the same tactics and strategies a manual trader would use, but there is no human emotion involved, just a set of clear-cut rules to follow.

    Fundamental and technical analysis, along with a variety of indicators are used to uncover any developing trends.

    Trends are predefined and often predictable movements of currency pairs, and once the software has uncovered them it sends a signal to the subscriber and advises them to make the appropriate investment.

    Automated Forex signals can be quite accurate, but historically, not all have proven to offer the same level of accuracy. So much so that a large number of traders still prefer signals generated by a real live human being.

    .

    Trading With Signals 20

    An example of Automated Forex trading signals 2

    But not all automated signals are made from the same material, and some do make relatively accurate predictions.  Many traders, even some of the most advanced, choose to use signals generated by algorithms daily. However, they will tend to evaluate the signal themselves before acting on the prediction.

    Both manual and automatic Forex trading signals can be received online.

    You can receive forex signals from specialized companies and top forex brokers, generally at a low cost somewhere between $5 to $10 a day and more for monthly rates. Trade signals can also be coupled with fundamental analysis. That will give you another protection in your stock trading. Using trade signals can be precious for you. They will point you out good opportunities but also will alert when they may pass. When you want to buy, check first that the signal offers you a free trial. That will allow you to test the information, and make sure it is good quality before buying it.

    To ensure that a trader is obtaining the information that will benefit in the end, they should only cooperate with companies who are willing to provide previous, evaluated results. Moreover, those firms who validate their information are much easier to trust rather than companies who refuse to grant traders a free trial and access to audited results.

    That is without the doubt the policy of top Forex signals.

    But we have to say, fraud can be a problem when dealing with trading signals. As the forex market attracts a wide and diverse audience, the reliance on information for making financial decisions can be a crucial asset to investors. The possibility exists that some trading signal providers will provide insufficient or inferior information at a premium cost to investors, which can impede or damage an investor’s ability to make the best decision they can in the market.

    The best way is to do your own research the trading signals organizations and considering the advantages/disadvantages for each one before making any kind of financial commitment to one of them.

  • How to know if Forex Trading Signals is a scam

    How to know if Forex Trading Signals is a scam

    By Gorica Gligorijevic

    Most of the scams were interrupted thanks to the enforcement of rules by bodies such as the FCA. But today we are faced with the more advanced scammers.

    Of course, not every forex signal is the scam.

    There are still very reliable services but it can take time to recognize them. First of all, there are so many speeches about scams all around the forex. Don’t believe every word you hear. Just because someone offers poor quality, doesn’t necessarily make it a scam with the intention of cheating you. Think about the intent of the sellers. If all they want is your money without making an effort to deliver, it’s a scam.

    The opportunity of scamming still exists for many forex scams.

    Scammers tempt new investors with a promise of quick fortunes through “secret trading formulas” or algorithm-based “proprietary” trading methodologies. Before choosing a broker or platform, go through your own search.

    Forex signal providers may be an individual or retail firm that promises to trade your account or give you signals to enable you to make a killing out of the market. Some of them will promote their experience and back it up with a few testimonies.

    Some promise very high returns and guaranteed profits, either through a managed account where the firm makes trades on the investor’s behalf or by trading using the firm’s trading platform. Most traders will receive some initially returns from the firm to give the impression that their trading has been a success.

    Scammers will encourage traders or investors to invest more money. But at this stage or soon after the returns stop, their account is suspended and there’s no further contact with the firm.

    Important to know is the fact that many scam firms claim to be FCA authorized.

    How can they do it?

    Many fake trading and brokerage firms will use the title, ‘firm registration number’ (FRN) and address of regular companies and signal providers who are FCA authorized. This is the so-called ‘clone firm’. The fake providers will give you their phone number, address and website details. Sometimes they will claim that a brokerage’s contact info on the Register is out of date. Or scammers might claim to be abroad firm, and that’s the reason they don’t have updated contact and website.

     

    scamm

    An example of scam trading signals

    Some scammers may copy the website of an approved company, and change, for example only the phone number.

    When you want to pick your signal provider you have to check several things.

    Trustworthy Forex signal service should be verified in websites like the Forex Peace Army. Further, you shouldn’t pay more than a few hundred dollars for a good signal system.

    Be especially careful of system sellers who offer programs at excessive prices and claim they can guarantee remarkable results. Choose one of the many legitimate sellers who are decent and whose systems have been properly tested to potentially earn a substantial income.

    Another problem is the mixed funds.

    Without a record of separated accounts, the trader cannot follow the precise executions of their investments. If you don’t check this issue, you are opening the door to scams. Scammers can use a trader or investor’s money to buy houses, cars, and planes or just vanish with your money. They can offer an investor the false opportunity to have his forex trades managed by highly-skilled forex traders who can offer outstanding market returns in return for a share of the profits.

    The catch is, this “management” offer requires the investor to give up control over his money and hand it to someone he knows little about other than the hyped-up and often the completely false record of success available on the scammer’s website and booklet. And the trader or investor often ends up without money, while the scammer uses investors’ funds to buy yachts.

    Still, the forex market is not entirely unregulated.

    Some forex brokers do not deal fairly with their customers and defraud them.

    How does it work?

    They start as an unregulated broker. And they publish the offer of large incentives to recruit affiliates who then bring the clients. Once the broker has a few million dollars in funds, empty the accounts, transfer the money to an anonymous tax haven and shut the doors.

    Hard to believe?

    If some signal seller claims that everything he or she touches turns into gold, don’t trust.

    Trust me, I am rich! C’mon!

    Their model is a fairytale of sales tactics where clients are suckered into a free seminar, then persuaded to buy several thousand dollars courses, then upsold again to a more expensive course. The tactics are so good the clients don’t even know they’re being cheated. The education they provide is nothing you can’t find for free elsewhere on the internet. Pay them to teach you, start trading, and allow them to buy a Lamborghini. Huh!

    Million Dollar Pips was one of the most popular strategies ever sold, but the developer never traded it on a real account.

    How does it work?

    Develop a simple automated strategy that trades a lot with a high percentage win rate. Run it on a dozen accounts using a variety of settings. After several months, pick the best track record and publish to Myfxbook or some other traders community site.

    Develop a sales page detailing how “sophisticated” and “professional” the strategy is. Buy an email list, contact affiliates offering a 50% commission on all sales, then launch!

    A few years ago it wasn’t uncommon for someone to sell thousands of copies of such strategy.

    This kind of scams will fail, there is no doubt. Like any other did.

    Where the warning signs can be found?

    If brokers won’t allow the withdrawal of monies from investor or trader accounts. Or, if it is impossible to withdraw money.

    Also, if enter or exit a trade during an economic announcement is not in line with expectations. And, if the trading station doesn’t operate to your liquidity expectations.

    The best way to determine if a signal seller can benefit you is to open paper money or practice trading account with one of the better-known forex brokers.

    Be patient, and eventually, you’ll determine whether predictive signaling works for you or doesn’t.

     

    The list of the biggest scammers you can FIND HERE on Traders Paradise’s Wall of Shame

    How to avoid signal provider scams

    I think everyone should learn at least the basics of how to spot Forex scams.

    First, ensure you deal with signal service providers originating from locations you have heard of before.

    Second, if they are authentic, their payment method should be one of the common online payment methods such as PayPal or credit card payments.

    Listed here are some of the attributes to look into before following a signal service:

    The signal should have verified records of myfxbook, FPA, and other credible verification sites.

    The rule is, if the results are not verified, just move on do not waste time or money on unverified results.

    In most cases, you will not know on what basis their decisions are made on, so this makes the verification part very important. Focus on signals with over 6 months record of profit and with over 100 trades. If whatever is being shown as results are for less than 100 trades that means the statistics are not sufficient to make any judgment.

    The result should be sufficient to offer statistical significance to inform your decisions. Again if the results are for less than 6 months, then the strategy could just be lucky and with time it may be proved wrong.

    Make sure the signal operates with drawdown levels you are comfortable with.

    This will vary from one trader to the other. Some traders have a bigger desire for risk some have low. If for instance, you take a strategy with 30% drawdown, that means $3,000 could be in drawdown with an account of $10,000 and you remain comfortable. So work with a drawdown that does not give you sleepless nights.

    Don’t just focus on how much a strategy earns, take a look at its drawdown too.

    Get a signal with reasonable performance or subscription fees. When you are paying to a signal service, also check the fee charged is fair. Unless you are doing this to test the strategy, this strategy will only make sense if you have a huge account.

    As we said before, any forex signal service should offer a certain trial period or money-back guarantee. They should allow traders to test before buying. If that is not the case, move on and don’t do not waste your money. If they don’t trust their strategy, why should you?