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  • Avoid Bad Investment Moves – Strategies that work

    Avoid Bad Investment Moves – Strategies that work

    2 min read

    Strategies to Avoid Bad Investment Moves

    It is possible to avoid many bad investments.

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

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

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

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

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

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

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

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

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

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

    The favor is short-term returns. 

    But you are here to stay. Right?

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

    People are twice as sensitive to losses as to gains. This behavioral phenomenon is known as “myopic loss aversion”. And their inclination to take short-term risks is too low.  So they often make the wrong investment decisions.
    Strategies to Avoid Bad Investment Moves 3
    * Buying high and selling low – means doing what’s comfortable amidst either bullish or bearish market conditions. The consequence is that when you are buying while markets are high or selling when markets are low is a risky strategy that fails to take advantage of market opportunities. A buy-and-hold strategy turns out to be superior.

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

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

    Strategies to Avoid Bad Investment Moves 4
    The experts recommend these seven self-control strategies. They can help counter your tendencies to make bad decisions and avoid a bad investment. The use of these strategies was not limited to investments and often included other behaviors and other important lifestyle decisions.

    Here are the seven strategies and their application to financial decisions:

    1. Limiting options – Purchase illiquid investments to avoid the urge to sell investments when the market is falling.
    3. Avoidance – Avoid information about how the market or portfolio is performing to stick to a long-term investment strategy.
    4. Rules – Use the rules to help make better financial decisions, such as only spending out of income and never out of capital.
    5. Deadlines – Set your own financial deadlines aiming to save a certain amount of money by the end of the year.
    6. Cooling off – Wait a few days after making a big financial decision, before executing it.
    7. Delegation – Delegate your financial decisions with others, allow your investment advisor to manage your portfolio.
    8. Other people – Use the help of other people to reach their financial goals. Make some appointment with your financial advisor to make and execute a financial plan. Certainly, you don’t want all your money in just one kind of investment. So you can safely choose a single advisor or firm to handle a range of investments.

    The stock market’s tendency to produce large gains and losses. So there is no shortage of faulty advice and irrational decisions. 

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

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

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

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

    Risk Disclosure (read carefully!)

  • Forex Trading is Profitable. Right or wrong?

    Forex Trading is Profitable. Right or wrong?

    2 min read

    Is Forex Trading Profitable?

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

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

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

    Percentage of what?

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

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

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

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

    For the FX market, you can be small fish.  

    But that “small fish” can make a couple of hundred USD per pip. Is it good enough for you? Well, that’s why comparing percentages without comparing the actual pot is an unnecessary exercise. 
    Is Forex Trading Profitable? 1
    But it isn’t easy. Hard and smart work lies behind it. Of course, you have to involve a bit of luck to find the right stocks, right things while your motivation is still on the top. But when you make any success, you will see it is worth it.

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

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

    Take this as a recommendation:

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

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

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

    Only in that way success will come.

    Why I’m saying this to you?

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

    Forex trading is profitable but not for everyone

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

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

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

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

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

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

    Trading attracts mostly because of the freedom it provides.


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

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

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

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

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

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

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

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

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

    The knowledge has to be the goal.

    Yeah, I know. Time is money.

    Forex trading is profitable for me.

    Is it worth it? Yes!

    Should you continue trading? Yes!

    Should you continue with your studying? Yes!

    Should you continue looking for a job? Yes!

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

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

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

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

    Risk Disclosure (read carefully!)

  • Investing in Cryptocurrency – The Pros and Cons

    Investing in Cryptocurrency – The Pros and Cons

    2 min read

    The Pros and Cons of Investing in Cryptocurrencies 2

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

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

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

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

    CONS:

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

    The Pros and Cons of Investing in Cryptocurrencies 1Those with low-risk tolerance have a difficulty; they are inclined to getting weakness and pulling out at a loss while the market is fixing up or going down. An investor needs to be prepared to take a loss or sit on a loss for a while if the market goes down. That requires a certain type of mindset and expendable funds. There are some psychological factors to consider along with economic ones.

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

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

    PROS

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

    The Pros and Cons of Investing in Cryptocurrencies 4
    Despite all its risks, crypto is possible the most exciting asset 21st century. It is decentralized, works on blockchain technology which is here-to-stay. You can find billions of motives about why everyone has to be excited about crypto. As much as reasons to be conservative in your investment.

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

    TIP

    If it is the bubble, then pop it!

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

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

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

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

    Step into this new world while is time.

    Risk Disclosure (read carefully!)

  • Why Should You Use Bitcoin?

    Why Should You Use Bitcoin?

    2 min read

    There are several reasons why you want to decide to use Bitcoin instead of traditional currencies.

    One of the most reason is the Bitcoin’s capability to be used anywhere, anytime, and in any amount.

    When you are using Bitcoin, there are no borders, no bank holidays, no bureaucracy.

    All aspects of Bitcoin are controlled by users.

    Another reason can be the lower fees.

    That’s why many people are starting to choose Bitcoin as a currency. When receiving Bitcoins you do not pay any fees.

    Before sending Bitcoins from your wallet, you will have an option to choose how high your fees.  This is depending on how fast you want to verify and complete your transaction.

    That luxury you don’t have with bankers transactions. You have to pay as much as they decided it to be.

    But it isn’t the best part on why to use Bitcoin. 

    All transactions, no matter how many Bitcoins you are sending, will cost the same amount in fees.

    That is the most wonderful part.

    You can send 400,000 BTC or only 1 BTC and the fee for the transaction will be the same.

    That’s wonderful, don’t you think so?

    Even more, merchants are offered special merchant processors who assist them with processing transactions. In exchanging BTC into the merchants’ preferred form of fiat currency, and depositing the money directly into their bank account.

    And all of these transactions are Bitcoin network based. This means the fees are much lower than if you use your credit card.

    Or some else card or payment method.

    But the most important 

    All Bitcoin transactions are secure, contain no personal information about the buyer and irreversible.

    That makes Bitcoin the perfect currency for merchants who are seeking security and stability.
    Why Should You Use Bitcoin?
    This opens up a world of opportunities for any merchant. It gives them the ability to expand into locations that have high fraudulence risks. Or where Credit Cards aren’t accepted as a method of payment, all while keeping their services or products safe from fraud.

    Well, there is a very high fraudulence risk with credit cards.
    But with Bitcoin, it is absolutely excluded.

    It’s impossible with Bitcoin.  

    Paying with BTC give the opportunity to both side, merchants and buyers, to expand into locations that have high fraudulence risks and to avoid insecurity.

    No matter how you spin it, this is a win situation for merchants.

    On the buyer’s side is an advantage because each user has full control of their wallet. It is completely impossible for a merchant to charge a user without their knowledge, as often is seen done by many unethical trades.

    Payments are made without giving any personal information, so the merchant doesn’t even have to know your name to complete a transaction.

    Besides, if you as a user or buyer and still feel unsafe or vulnerable, you can protect your BTC via a backup or encryption.

    And the best feature of the Bitcoin system – all transactions are transparent and clear on the public blockchain.

    This means if there are any complications with any transactions. They can be instantly looked up, on the public ledger and verified.

    Bitcoin’s core code cannot be manipulated in any way to give an edge to either the seller or the buyer, because everything is cryptographically secure.

    But like in everything, there are some reasons why shouldn’t you use Bitcoin.

    Why Should You Use Bitcoin? 1
    First of all, relatively there is still a small amount of businesses and people using it. The main reason for this is the low knowledge of the benefits that BTC offers. Many businesses are on-board and they want to integrate BTC into their payment system, the list is still small.

    High volatility is something else that you should consider.

    The amount of businesses that use Bitcoin is low and any event, trade, or activity can have a high effect on the price of Bitcoin.

    Over time this volatility will decrease and stabilize as more and more companies start using Bitcoin.

    Actually, Bitcoin is still maturing and this presents a certain degree of risk. It is only 11 years old and what we can expect from it except hormonal party as well as every entry into puberty. That was the joke.

    Bitcoin is the first, oldest and largest cryptocurrency and we have to support it with mandatory respect. 

    Bitcoin showed the world a new sense of freedom and was the cause of the development of other cryptos.
    Respect!

    Read this too: Why you should not invest in bitcoin under any circumstances

    Risk Disclosure (read carefully!)



  • Trading Forex – How I made $10,000 on a trading platform?

    Trading Forex – How I made $10,000 on a trading platform?

    trading forex

    Trading forex can be very profitable and you can earn money quickly. Here is how.

    By Guy Avtalyon

    My trading forex story begins like this: I was so tired of “opportunities” that end up taking nothing but a lot of time and money out of my pocket while gaining nothing except lost time and money. Don’t get me wrong, I was willing to put my free time into something that is real.

    The forex market offers more opportunities for quick financial success and financial ruin too than almost any other market. The crowds have always been attracted to it. They include speculators, trading novices, retirees, and professionals looking for a way to get out of debt, increase the excitement in their lives, or simply get rich real quick. I’m one of them.

    If you have a computer and an internet connection, you can trade forex from anywhere in the world, it is the best home-based business of the 21st century. But the problem is that most people don’t know how to trade forex.

    Learning forex trading is not easy

    It requires time, patience, and sustained effort. Most people lack the time to learn forex trading. I wanted to become rich. And the first lesson I got was: I have to fail and learn from my failures. I know that most people fail but do not learn. The skills of the trade aren’t like taking a diploma and slowly walking on the path of your career. In trading, when you “advance”, you don’t even know if you’re making progress in the right direction.

    When the results show otherwise, it’s so hard to admit that the past months or years of “progress” wasn’t that at all. And after admitting that to yourself, you need to learn from it. You have to put your ego aside. Trading without emotions is a MUST.

    Have you ever heard of someone turning a $100 starting capital into $100,000? Maybe you have. Well, such stories were and still are very rare. You really must have the full picture.

    I have to tell you some big truths.

    Trading forex is not a shortcut to instant wealth.

    The old saying “It takes money to make money” is a precise one, Forex trading including. What would you have to do to start at  $100 and have a trading account worth $10,000 a year later?

    Almost any pattern of gain or loss is theoretically possible on the forex. But return on investment (ROI) calculator shows you that to accomplish this, your annual rate of return on investment needs to be 9,900%! If you enter and close out one trade every day of the year, the average profit on each trade would have to be at least 464 percent on those 100 bucks! You’d have to more than quadruple your money every day to come even close to $10,000 at the end of a year.

    Does this sound like something that’s happening in the real world?

    There’s something so deceptively rational. The idea to start with $100 and turn it into $10,000 needs to be shown into return rates to show how absurd this really is. It may be theoretically possible, in reality, it’s no more likely that your cat is starting to fly.

    No matter what you were told, you have to know that your starting capital is the place to start. Having a good starting capital can help you to set your trading goals, define your risk management, and adapt your trading system and position management around your starting capital.

    For many traders, a starting capital of $10,000 should be a good starting point. Depending on other factors such as leverage you can start making profits for as little as $10,000.

    The math for trading forex

    Assume you start trading with $30,000 and you can risk on each trade is $300 (1% of $30,000). You use 4:1 leverage, which gives you $120,000 in buying power (4 x $30,000) and utilizes a strategy that makes you $0.21 on winning trades and you lose $0.12 on losing trades.

    A good trading system will win 60% of the time. Your average is 5 trades per day, so if you have 20 trading days in a month, you make 100 trades per month.

    60 of them were profitable: 60 x $0.20 x 2300 shares = $27,600

    40 of them were unprofitable: 40 x $0.13 x 2300 shares = ($11,960)

    Let’s say your cost per trade is $20 (to get in and out). Your commission costs are:
    100 trades x $20 =$2000.

    If you pay for your trading platform or exchange entitlements then those fees are added in as well.

    That means, you can make approximately: $15,640 – $2000 = $13,640 or about a 45% return per month.

    Return on a single trade

    As your account grows, your position size and your income will become larger.

    Thanks to the availability of leverage, forex traders can make a return on a single trade. When multiples of the margin they used to open the trade. But, leverage is a double-edged sword. It can also mean big losses. Reliance on excessive leverage as a strategy typically leads to the destruction of your account capital in the long run. This is because it only takes one adverse market move to drive the market far enough and trigger losses. You need to view forex like you would any other market and expect normal returns by using conservative amounts of no leverage.

    Websites that propose big and fast returns, to start with $100 and turn it into $10,000 in a short time, or imply that you can somehow get rich quick on the forex starting with very little are openly speaking frauds.

    What you can do?

    In the last few years, many pro traders have started their own forex signals services that provide trading signals to their subscribers via email and SMS.

    Copy the trade of these pro traders onto your own account the instant they are made.

    Now, what this means is that the pro trader is going to do all the market analysis, decide which currency pairs to trade and when to enter and exit the market. You don’t need to do any of the stuff above.

    Follow elite traders when trading forex

    At the same moment when pro-trader makes the trading software will instantly copy that trade onto your trading account.

    So, if the pro trader makes a winning trade, you also make a winning trade and if the pro trader makes a losing trade, you also make a losing trade.

    Try the best forex signals service in your opinion on your demo account. Install the trade copier software and start copying the trades made by the pro trader.

    At the end of the month, evaluate the performance of the forex signals. If not satisfied, go for a refund. After several tries, you will be able to find a good forex signals service.

    Most pro traders make around 1000 pips per month. 1 pip on a standard account is equal to $10. 1000 pips per month mean making $10,000 per month.

    Voila! You earned your $10.000!

    But before all, make sure you test the signals for at least two months on your demo account before you start trading live.

    And you should know some basics of forex trading. You can learn that online for FREE. Most of that information is available for FREE.

    Good luck!

  • What is the best day trading strategy?

    What is the best day trading strategy?

    What is the best day trading strategy?
    Day trading is connected to great risk but also with great potential to profit.

    By Guy Avtalyon

    So, let’s see what is day trading.

    Day trading points to the rapid purchase and sale of stocks throughout the day. With the goal that purchased stocks will climb or fall in value for the short frame of time, seconds, or minutes.

    Day traders believe that through certain day-trading strategies, they can add up small daily wins into long-term profits.

    Day traders have their own jargon and terminologies, online communities for day-trading tips, support, and strategies.

    But you have to know – day trading is risky and only for speculative investors.

    The day trading strategies

    Scalping Strategy This is the philosophy of how small wins can add up to a lot of money at the end of the day. The scalper sets a buy and sells target and sticks to these levels.

    The scalping strategy is fast and traders make buys and sell within a few seconds. This is one of the best day-trading strategies for traders who can make quick decisions and act on them without regret or doubt.

    These traders have enough discipline to sell immediately if they see a price decline. In that way, they are minimizing losses. This strategy isn’t for people with short nerves. But still, it is very popular.

    Momentum Trading Investor jumps on a stock whose price is moving up. When to use the momentum day trading strategy?
    This strategy is very popular for beginners because it focuses on news and recognizing strong trends.
    Stock movement of 30 to 40%, smaller stocks, which trade faster due to the reduced number of outstanding shares, a unique and major move in price, driven by a catalyst like a surprise earnings growth, a drug company’s huge, new treatment launch or news that a small company will be acquired by a larger firm. Option stop – loss is required as insurance.
    Just hold your position and wait to see indicators of reversal and simply get out. Also, you can decrease the price drop and round your price target at the moment the volume starts to decline.

    The most important part of this kind of day trading strategy is to be extremely aware of the expected news and earnings reports. If you execute it correctly, you’ll be able to profit from each trade. And you trade just short as few seconds per trade. Wonderful!.

    Breakout Trading – When the stock price rises above the former top resistance price you can use this strategy. You should monitor the level of stock trading volume or how many shares are changing hands. Breakout trades on high volume are more likely to be sustainable at the new higher price than those breakouts with less volume. It’s not as easy as looking at a chart, recognizing the resistance, and then buying after a breakout.

    Breakout trading focuses the point when the price clears a particular level on the chart. Also, you have to notice that the volume is increased. So, you have to enter into a long position after the stock breaks above the resistance level. The other possibility is to enter a short position when the stock breaks below the support level.

    To explain this more detail, after the stock trades beyond these levels, the volatility will increase and the stock price will usually follow the trend, meaning it will move in the direction of the breakout. Always keep in mind these two levels: resistance and support. You have to see how frequently the stock price hits them. More hits, more volatility, more important the levels become.
    Plan your entry point according to which level the price hits. If the price is set close or higher than the resistance level is, you’ll need to take a bearish position. The contrary is when the price hits the support level or move below. In that case, you’ll need to take a bullish position.

    Your exits should be set reasonably. Calculate the average recent changes in price to set your price target. For example, if the average price is 3 points more than the last few swings, your price target will be rational. When the stock price hits your target price, just exit the position and take your profit. You had a winning trade.

    Day trading on news

    News Trading – You must be keeping an eye on the business news, day traders can capitalize on the popular daily stories.

    If the news is bad, you might short the stock during the day by “borrowing” shares of the stock from the investment firm. And then selling those borrowed shares.

    Similarly, if the stock price declines as expected, you should buy the shares back at the lower price and profit from the difference less a commission payment. If the news is good, you go long or buy the stock outright and sell the shares after the price rises. 

    Pullback Trading – The first step is to look for a stock with an established trend. Then, monitor the trend until there’s a price decline from the trend. If the established trend is upward, then the pullback is an entry point for the day trader to buy.

    If the trend completely reverses after you buy-in, there’s no need to panic. The trend usually continues in the trending direction for a long time.

    You may find pullback ”candidates” from the stocks making the biggest gains.

    Is there any risk involved

    But be aware!  ”Day trading is extremely risky and can result in substantial financial losses in a very short period of time,” according to the SEC website.

    And one advice: If you’re afraid to try your hand at day trading, only invest money that you can afford to lose.
    Or don’t try this!

    Read more about Strategies to Avoid Bad Investment Moves

     

  • Call for Ban on Crypto Buying and Mining In USA

    Call for Ban on Crypto Buying and Mining In USA

    1 min read

    Ban on crypto buying and mining

    U.S. Congressman Brad Sherman has called for a blanket ban on cryptocurrency buying. During the Wednesday hearing of a subcommittee for the House of Representatives Financial Services Committee, he went so far as to advocate keeping Americans out of the crypto market entirely and earlier in March this year, he called cryptocurrencies “a crock”

    “We should prohibit U.S. persons from buying or mining cryptocurrencies,” stated this California Democrat. And their largest donor is credit card processor Allied Wallet.

    Beyond cryptocurrencies being potentially used as a form of money in the future, it can currently be used by tax evaders and rogue states seeking to bypass U.S. sanctions, he added.

    Ban on crypto buying and mining in the USA?

    Norbert Michel, director for the Center for Data Analysis at the Heritage Foundation, pushed back against the idea that criminal use should define cryptocurrencies as a whole.

    “Yes it is true that criminals have used bitcoin, but it’s also true that criminals have used airplanes, computers and automobiles. We shouldn’t criminalize any of those instruments simply because criminals used them.” he said and added “Those components I believe are the main barriers to widespread adoption in the U.S.”

    The tale behind of ban on crypto buying and mining

    During the hearing, the topic was general monetary policy and history,  but the crypto-specific parts revealed a general opposition to the idea of a central bank digital currency (CBDC).

    Recap: central banks around the world have been explored the idea of using the technology concepts behind bitcoin and other cryptocurrencies as part of new, completely digital money systems. The idea is that the tech boost transparency and efficiency.

    But some have warned that it could expand the risk of bank main points, and several institutions guaranteed that entirely following their research.

    Alex Pollock, a senior fellow at the R Street Institute, refused the concept and declared it as “a terrible idea – one of the worst financial ideas of recent times.”

    Congressman Bill Foster asked about blockchain immutability, saying “the promise of blockchain is a non-falsifiable ledger remains an unsolved problem in the digital world is how do you authenticate yourself?”

    If you don’t understand, ban the crypto buying and mining

    Other committee members agreed that the idea raised more fundamental questions about how blockchain and cryptocurrencies work.

    Dr. Eswar Prasad, senior professor of Trade Policy at Cornell University, argued that the existence of cryptocurrencies had the power to impact the financial services system, primarily the payments system, in positive ways.

    Just prior to the hearing, chairman Andy Barr noted that cryptocurrencies will “continue to have a greater and greater impact on our financial system,” which means that the committee would probably have to “revisit” once again.

    Risk Disclosure (read carefully!)

  • How To Avoid Bad Investment?

    How To Avoid Bad Investment?

     

    2 min read

    To avoid bad investment can be very tricky.

    ‘Human beings have certain innate tendencies that don’t always lead to the best investment choices,’ says Mark Riepe, senior vice president at the Schwab Center for Financial Research.

    What is a good investment? Or How to avoid bad investment?

    Both are very tricky questions. At the same time, they are quite simple if you follow a few steps. Why?
    You can see, there are always several important events happening at the same time in the global economy and the capital markets.

    Earnings reports, inflation readings, central bank decisions, trade deals, geopolitics with weighty implications.

    Altogether, these factors hold some influence over the direction of stocks and bonds. It makes sense that investors would want to consider each one closely when making an investment forecast. 

    Being analytic and detail oriented makes sense and is very positive in my opinion. If you want to avoid bad investment

    Where is the catch?

    Investors too often overemphasize the negative, more fearful or worrisome factors, while giving less consideration to the pricing power of the positive factors.

    But it’s kinda human nature to be stressed and captivated by uncertainties.

    The cryptocurrency market, for example, attracts investors into the possibility of making huge sums of money quickly, without any clear mechanism for understanding or measuring the risk of the investment.

    And other examples, 2008 financial crisis, the front page of the Wall St. Journal featured an article stating that economic decline, the collapse of the dollar, and moral degradation would lead to civil war in the United States by 2010.

    WHAT?

    That madness and hysteria surrounding the financial crisis gave many investors no choice than to take these forecasts seriously.

    When the world becomes chaotic, any prediction can make sense. But many of those predictions are bad ones.

    You can count on knowledge and experience to help you make smart decisions in most areas of life.

    Investing doesn’t always work that way.

    Even professionals in financial and market fields, often fall prey to the same unhelpful reflexes that are present among investors.

    Fortunately, you can put controls in place to help you set aside harmful impulses. In order to avoid a bad investment.

    We live in a society where many seek to keep up with the Joneses.

    Only a few individuals are resistant to the urge to make a fast dollar.

    It is highly recommended to overcome emotional and personality-driven faults.

    Yeah?

    Honestly, it’s hard to achieve, almost impossible.

    But, one of the keys to success is recognizing that a problem exists, and then devising mechanisms to control or limit bad decisions or risk.

    Investing is all about risk, but the calculated risk is important.

    The first key: avoid bad investment by avoiding confusing investments

    You are more likely to make a bad decision when you lack understanding or knowledge.

    If you just don’t understand the investment or the opportunity sounds tricky then you have to do two things: Ask more questions about it and consult with someone who has more experience than you in the field or product.
    Frankly, when you don’t understand it, don’t invest your money in it.

    Do your own independent research on any potential investment. If you someone offers you an ownership stake in a business, don’t feel pressured to make a decision right away. Demand two to three weeks to make a decision after you’ve received all the details that they can provide. Meantime, you will be able to research similar companies and be assured in your answer as to why or why not you select to invest in this business idea.

    You should diversify your investments.

    Never put all your resources into one investment.

    Don’t put all of your eggs in one basket, is an old saying.

    This rule is valid for investments. If someone recommends you put all of your money in one specific investment is giving you bad investment advice! You must spread your resources through financial products and probably some real estate.

    You have to find a competent investment advisor.

    Make sure that you seek professional help from someone who is educated in the field you’re looking to invest in.

    Don’t take financial advice from someone who isn’t a financial professional.

    The advisor is skilled to analyze a business idea and financial instruments.  An advisor can review fund and stock history. And can give you guidance on the possible projection of the investment, based on market indicators. They can properly explain to you how to avoid a bad investment.

    Bad investment decisions can devastate all your investment, all your capital.

    Don’t be rush or make a quick decision. Investing is a smart and methodical process that cannot be made in a hurry.

    You must take your time and evaluate before making any investment decision to avoid a bad investment.

    A wise man once told, “Measure twice and cut once.”

    Risk Disclosure (read carefully!)

  • How I Lost 10.000 dollars On A Trading Platform

    How I Lost 10.000 dollars On A Trading Platform

    How I Lost 10.000 dollars On A Trading Platform
    Lost money in trading isn’t a big deal. But lost self-confidence is the disaster.

    How I lost 10.000 dollars on a trading platform? It was a painful experience and I want to share that with you. When you hear that somebody lost $10,000 on a trading platform, what is your first thought? How stupid he/she must be!

    Thank you. I’m that one. I lost! So, what?

    My entire savings were gone. Don’t even think that I traded without knowledge. I went through all the forex courses available to the time and I’ve spent a lot of money to pay for them.

    Let’s go back to that moment in my trading history.

    Only a few hours ago everything was fine. But what happened? Let’s take a look. I lost! OMG, I lost all my savings!

    First of all, I was so-called, “day trader”. There was no reason I couldn’t have made a billion dollars day trading. Actually, I was the exception. I made a nice sum of money before stopping. The secret was that I treated the thing with respect. I did not plan to get rich overnight, but in a reasonable time, yes. My plan was to become indecently rich in 2-3 years. And I was on my way to becoming so. In fact, I was like many others. Becoming filthy rich for 2-3 years?

    How stupid I was!

    Fun fact: I was trading without proper preparation and education.

    Ha? What do you think about me now?

    I never listened to what my father told me:

    “Don’t gamble, it is not worth it. Build up your assets with honest work and time. There is a time and a place for everything. With gambling, enough is never enough.”

    I thought I knew everything and I have the holy grail in my hands. Just because I bought a trading robot. Yeah, that was very smart of me. Well, after 6 months, my trading account was gone. 

    Kaboom! It exploded and disappeared in its own smoke! That’s how I lost 10.000 dollars on a trading platform.

    I lost everything! How it was possible? I believed marketers and some guys with their “track records”, and hundreds, thousands of testimonials. It is hard to resist when you read or hear some of them.

    Would you really like to know how I lost 10.000 dollars on a trading platform?

    How I Lost 10.000 dollars On A Trading Platform

    Take a look at the image above. What can you see? Stop-loss levels. My trading strategy didn’t have stop-losses. I didn’t see the point of using it! The truth is, with a stop loss, you’d get sold out at a loss, and then the market would move back and you would have ended up making money if not sold. But I didn’t see that opportunity, I just wanted to earn a big sum of money.

    I had no strategy except to make money

    And I really believed that the robot knows what it is doing. I started investing slowly. It was fun. I checked the price of my investment, followed the news on Twitter, and talk about the company’s products. Then the stock price plummeted and I didn’t have a stop loss and that ruined me. Can you understand how I lost 10.000 on ta trading platform now?

    Only then I realized that I had chosen the wrong stock, the wrong company.

    My skipping of stop-losses and liquidating my position at a very low price. That triggered a chain reaction with all my positions being liquidated in a few minutes. The market was having one of its ‘corrections’. I’d received multiple margin calls overnight that had gone unanswered, so my CFD provider sold my positions out.

    The people I was playing against were in many instances the big financial institutions. These institutions’ employees aren’t so many traders as risk managers.

    I didn’t realize that trading is like a game of tennis.

    You need to know who your opponent is

    Today I know what was obvious, that this would never have worked. Do you really think that some rich guy believes in some trading robot account to make his buying decisions?

    Of course NOT! But  I have seen a number of miracles happen.

    And the truth is only ONE! Trading without the right knowledge leads to a deep disaster.

    When I see people who are day traders and they are following some crap newsletter or some coach with a fudged up track record, I am going crazy.  I can’t even see someone watching FOREX algorithm sales pitch or sniveling over some poor stock report.

    I have that one desire, I just want to say to them: you are guaranteed to lose money in any period of time unless you learn to trade well. If you trade without the proper education you should go to some casino or play the lottery. You would have better chances to win. Not to lost.

    Yes, how I lost 10.000 dollars on a trading platform? I faced that beast.

    The nature of the beast is that even if you are financially educated and you think you know everything about trading, investing or markets at all, you still haven’t guaranteed to win.

    For you to know, I’m not selling anything. It didn’t even cross my mind to teach you how to trade. Hm, maybe I could sell my ideas, I could run some newsletter and give you trading ideas? That kind of person makes a lot of money, indeed. And they are generous when they have some secret ideas to share with you for free.

    How I lost 10.000 dollars is true BS! 

    I am not saying all that information is bad, you just have to be careful and try not to follow anyone uncritically.

    The Forex systems and robots stirred by internet marketers are a joke. Especially if you think that’s how they make money on Wall Street. And believe me, they DO make tons of money. The markets are full of sharks and they will eat you quickly if you don’t stick to simple and reasonable rules instead of their predatory advice.

    Forget about making 20% per month. That’s how poor people like to think.

    I learned a few key points when I lost on a trading platform exactly $10,000. My risk tolerance was pretty high. I never felt the need to sell. I regret losing the money, but I never regret making the investment.

    The lesson to myself was: you have to know whether it will move up or down and markets must agree with your judgment and you also need to know when the stock will move.

    To be successful with individual stock investing, you must predict its future movement AND when that movement will come. You’ve got to be fluid as a trader and there are no guarantees.

    The Forex market is the most volatile market in the world and therefore it cannot be manipulated.

    KISS, live long and prosper, and trade smartly!