Category:  Personal Finance

Personal finance covers managing your money. That can be saving and investing. Personal finance includes budgeting, investments, insurance, mortgages, retirement planning, banking, etc. In other words, it is an entire industry that provides financial services to people and advises them about financial and investment possibilities.

Traders-Paradise gives you comprehensive articles on all these matters. We’re covering all mentioned above but our team stepped forward. Here you can find very useful articles about loans, personal loans, pay-day loans, and why some are better than others.

Traders-Paradise provides you, our reader, full and detailed guides on how to apply for loans, how to improve your bad credit score, how to get out a loan even with a bad credit score.

Here you’ll find all about the process of applying, what documents are required, both for online lenders and traditional banks. So, you can be prepared in advance.

Tredares-Paradise team that has experts in different fields, will guide you, with their articles, trough the personal finance issues and help you to solve them.

We are giving you a key to keep your personal finances on the right track. You’ll learn how to obtain skills that can help you in your personal success or your business success. These articles are all about that but with a concrete explanation of personal money management. How to do that, why to do that, how beneficial it is.

  • Earn a million! How and what you can do?

    Earn a million! How and what you can do?

    2 min read

    How to earn $1 million? 1

    If you earn a million dollars that will change your life for sure. But how to earn a million? Is that amount enough for some changes?

    On some point in life, everyone asks themselves how much money would dramatically change their life.

    It can be a tricky question but also a subject of serious consideration.

    We all know some story about lottery winners and how much money they got and how fast they spent all. Easy come, easy go, some may say.

    Million would change someone’s life.  Several million everyone’s. Remember, everyone’s.

    Most people won’t see a small part of that money in their lifetimes. Some of us play the lottery and have a hope that one day the luck will hit us. That a dream and there is nothing bad in having dreams.

    But what can we do in reality? How much money would you consider “life-changing”? This question is worthy of economic consideration. 

    If you suddenly earn $1 million more economists say not as much as you might think.

    You have to pay taxes on it and for sure you have some loans and outstanding debts to pay off. Speaking about me, if I were to win $1 million tomorrow, I’d definitely still keep working at my current job. One million bucks are not enough to change my entire life. Or anyone else’s. Maybe I’d spend a little bit of a vacation, and then I’d put the large amount of it in savings.

    Actually, it isn’t so hard to earn millions

    But let’s take a look at how much money is needed for a month of decent living.

    Most of us are spending as little as possible and saving as much as possible. But this isn’t the point. Point is to set realistic goals and understand your own financial position.

    How to earn $1 million?Start with this number. Do you know what your life costs right now? Do you have a mortgage or you pay rent? How much do you spend on essentials, from food to clothes to insurance to annual fees, every month? And don’t forget to account for inflation over the long term.

    Then you have to figure out how much it will cost you to get out of debts, from balances carried on personal credit cards to car payments to student loans. The first number figure that would change your life is the amount it would cost you to pay off all debt on depreciating assets. That’s your first number.

    But your debt on depreciating assets isn’t an investment. Your car for sure will not get more worthy over time. It will not increase its value. That why this kind of debt is classified as bad debt.

    Let’s go further to earn a million

    Now, you have to figure what is the amount of money that you would need to pay off all debts on appreciating assets. It’s classified as good debt, because underlying assets like house or land, tend to increase in value over time.

    But you’d still probably have to work to maintain your lifestyle. The third number is the amount it will take to produce little more than you need every year without touching the principal of your investment. That’s the third number.

    Anyway, you need at least $50,000 a year to maintain your lifestyle. You go out to eat, take a vacation, buy new shoes, and pay your property taxes.

    How much capital do you need to invest to generate $50,000 every year after taxes and inflation?

    How to earn $1 million? 2Let’s say you don’t want a risky investment, so you rather stay away from stocks. If you put your money in bonds, you might get a more stable return. If you looked for municipal bonds, you probably wouldn’t have to pay federal or state taxes. Suppose you can find a good portfolio of municipal bonds paying a 4% annual return. That’s an acceptable rate and a safe investment and probably even avoids taxes. For that $50,000 you need a principal amount of $1.25 million dollars. 

    Let’s say you can save an extra $15,000 per year if you pay off debt on depreciating assets in one leap and $18,000 per year on appreciating assets. And you have no debt for the next 40 years. WOW, you would have $1,320,000.

    A million is a lot of money, but it’s also not an unreasonable amount of money.

    It’s not lottery jackpot money. If you work hard, save well, and invest well, that amount is within your reach during your lifetime.

    To make things clear, it is so fun to have dreams. But this doesn’t have to stay as a dream. 

    Creating a million dollars in one shot to do everything may never happen. But what you can do? You can make progress onto all three goals. You are the one that has the power to change your life and your financial future.

    But where is dramatic life change? Stop watching movies.

    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!

     

  • Easy Ways To Start Investing With Little Money

    Easy Ways To Start Investing With Little Money

    1 min read

    Easy Ways To Start Investing With Little Money

    Despite the title, I tell you that there is no big and small money.

    Money is money and it’s yours. A different question is whether you have enough to invest. For investing with little money, I mean.

    If you want to invest you can’t do it without money.

    Is there any way to reach decent money for investment?

    Well, my friend was putting away just $15 per week. In order to avoid tempted to take the money for saving, he put the box reserved for saving money in his girlfriend house.

    Uh, how she was strict and strong. But he stashed the savings away in a safe place. You may think it isn’t a lot, but at the end of the year, he had $780.

    It was still not enough but it was a great beginning.

    To make money in the stock market, you have to start with big money, right? Oh, no! Totally wrong!

    My friend started investing with little money.

    You can try with day trading, why not. It is investing with little money.

    But it takes bravery and strength of character. You have to understand the different market forces at play. This isn’t for dilettantes or dabblers.

    But it is a way where you can very quickly make a major amount of money with a relatively small investment. Real investing with little money.

    Day trading is not for you if you don’t have any guts.

    Don’t worry, there are ways to hedge your bets when you are playing the stock market. But you have to learn and learn and learn. I suggest you ensure set stop-loss limits to cut any potential for accelerated depreciation.

    If you’re an advanced trader, you probably understand that market makers move stocks to play into our greed or fear of failure. It isn’t rare they push a stock down to a certain price to enhance our fear and play right into their pockets. And pay attention to averages. When stocks break moving averages, there’s potential for large upside or big downside.

    You can be investing with little money in commodities.

    Gold, silver, metals, energy. Silver looks like the solid hedge on inflation. That kind of commodities is the tangible property that people can hold onto. Investing in commodities means investing in futures contracts,  prearranged agreement to buy a particular quantity at a particular price in the future. These are leveraged contracts, providing a big upside and a large downside.  I suggest you be extremely careful.

    Easy Ways To Start Investing With Little Money

     

     

     

     

     

     

    And of course, you can trade cryptocurrencies. Trading them might seem risky, if you hedge your investment, you could limit some fallouts. There are plenty of platforms for trading cryptocurrencies. But before you step into this, educate yourself. Use some free demo account for several months and learn, test your skills, get more knowledge.

    For novice traders, it is difficult to distinguish valuable and useless trading. You need to avoid any new coins until they show up well on the market.

    No matter how much you want to invest with little money.

    Markets are very volatile in the altcoin scene.

    There is also such a thing as “compulsive trading”. It’s hard to learn the trading style from the first day. Errors will have to occur until you find a rhythm that suits your needs. The best advice is to start with investing with little money of one or two coins that look legitimate and potentially profitable. 

    More about The 5 Most Common Mistakes Made By Beginners In Trading Cryptos.

    Everyone who wants to invest on the market should first evaluate his own preference for risk. Also, it is necessary to have at least minimum economic and financial knowledge and ability of common sense reasoning.

    The economic revolution is afoot and you can either be a part of it or get left on the side of the highway feeling dumb.

    Everything is up to you. Even your investments. So, start investing with little money and follow the rules. 

    Be smart and good luck!

    Risk Disclosure (read carefully!)

  • Millennials Have Nothing Saved For Retirement

    Millennials Have Nothing Saved For Retirement

    1 min read

    Hey, millennials! What are you trying to do? Are you saving for retirement?

    You have really upped your game when it comes to saving for retirement: only 1 in 6 millennials reportedly have $100,000 socked away.

    In fact, most millennials are not on track when it comes to saving for retirement. Statistics show that 66% of people between the ages of 21 and 32 have absolutely nothing saved for retirement.

    I know, you are not surprised. I’m not either. Young people do not have leftovers for savings. Many have started to work at a time of stagnant salaries and high unemployment. 

    Pensions are disappearing, the future of social security is uncertain.

    It’s likely we’ll live forever.

    Millions of millennials have little or no savings.

    In the first place, they believe they’d be better off by putting their money elsewhere. Some have to pay off student loans.

    Some are trying to build up their own business.

    Many started to work at low-wage jobs for a few years and then went back to school to improve their employment chances. And some have more immediate costs like childcare and rent.

    We can recognize the ruthless pressure to save more for a distant future.

    And it is completely disconnected from your reality.



    We each face different circumstances and desire different things in life.

    But supposed experts continue to implore this entire generation to save in retirement accounts.

    Do they know that only focusing on saving for the future means the possibility to neglect more pressing financial issues?

    Such common sense rule about savings disregards life cycle priorities that differ from those of the generations past.

    Instead of cashing out after working at the same job for 40 years, many of millennials would rather enjoy a more entrepreneurial career while earning well beyond typical retirement age.

    Let me be clear!

    There’s nothing wrong with saving for the future and using the tax advantages of retirement plans. It’s mathematically true that starting to save early in the life improves our odds of having enough later.

    But, it’s necessary to recognize the cost of missed opportunities. Saving reflects the safest choice, that’s true.

    But doing as experts try to advise, might hold back millennials from taking any financial risk to pursue more entrepreneurial efforts now.

    Many young people have finance-related fears of an uncertain future and how to make their career choices.

    This is not to say everyone should avoid stable jobs or great retirement plans.

    No, that means that millennials avoid sacrificing but they are taking risks.

    And that makes sense.

    Taking a risk by investing in yourself to build a business could not only lead to greater wealth but could provide a far more fulfilled life along the way.

    Their different needs and preferences should define their financial plans, not any of the many generalized “rules” we often hear. But they shouldn’t completely abandon long-term savings, they should think about how best to use their extra dollars, both to establish their financial security and to find more fulfilling careers and happier lives.

    About 25% of millennials said they were not eligible to participate in an employer-sponsored retirement plan because of their part-time employment status.

    In terms of preparing for retirement, millennials have three strikes against them from the get-go.

    First, because of limited access to retirement plans at work, millennials will struggle to build retirement savings.

    Second, they are less likely to have bought a home, and home equity is a valuable retirement asset.

    And third, they are more likely to be burdened by student loans.

    That’s why a lot of millennials take chance in trading and investing with low fees.

    As a generation which is forced to plan from day to day, it is not a problem for them to trade on a daily basis.  Or to put their extra incomes in some stock investment.

    That’s good work, guys!

    Your job in this world is not to solve the problems that baby-boomers left to you, but to take care of yourselves and make your life better and easier.

    In that way, the whole world will be better placed.

    But before you start your adventure try some free demo account and learn and test your skills. 

    And you have to be very cautious when you have to decide which brokerage to choose.

    You have a plenty of them to choose from, and for the good start.

    We recommend you to read some of our recommendations and predictions.

    Good luck to all of you, millennials!

    Risk Disclosure (read carefully!)

  • Work from Home – Only Some Can Make Money From Home, What Are They Doing?

    Work from Home – Only Some Can Make Money From Home, What Are They Doing?

    Work from home requires discipline, focus, and commitment, but the flexibility to define that yourself.

    2 min read


    C’mon, are you sure you want to go to the office every single day to the rest of your lives?

    Well, I don’t.

    I’m working from home. No matter what you call it.

    Remote working. Telecommuting. Work from home.

    It’s extremely popular.

    And it gives me the opportunity to sit on my porch or in bed and work. Don’t try to visualize me. I’m not what you see on job boards or in stock art pictures. When people think about how to work from home. 

    Many imagine sleeping in late, lounging around in their pajamas and have long slowly lunches.
    Contrary! 

    You need to realize that even though work from home offers a great amount of flexibility, it is still a professional job and it needs to be treated as such. 

    I wake up, get dressed, sit in front my computer, and start to work from home.

    What is one of the important advantages of work from home? 

    Setting office hours is one of them, having a dedicated office space, avoiding homebound distractions, and actually dressing as if you were going to an office.

    That help keep your mindset sharp and focused.

    I can witness for that.

    But it’s not for everyone, and some do it more successfully than others.

    If you are disciplined with your time, and you don’t need a relay with co-workers throughout the day, and you are independent in making decisions, and good organized, this is the right work for you.

    To be effective in work from home, you have to have the excellent critical thinking, organizational and communication skills. Along with being able to block out distractions. 

    It requires discipline, focus, and commitment, but the flexibility to define that yourself. If you want to work from home, of course. 

    The biggest benefits of working from home are its flexibility,  saving money on transportation, dry cleaning costs, lunches were eaten out, child care costs, no boss looming over your shoulder, no co-workers to interrupt you, and no dress code.

    Sound pretty good, don’t you think? You must know that working from home is more productive.

    But, it’s important to let friends and family know that although you’re working from home, you’re still working.

    How To Successfully Work From Home

    1. Get organized – Don’t work too much or too little, get organized systems, schedules, and to-do lists.
    2. Have workspace – You should ensure that your office space imitates that of a true work environment.
    3. Plan your day – This will help you minimize your distractions and maximize your true productive times.
    4. Be computer savvy – This can make your work easier but also can give you the opportunity to have more profitable jobs. One of those kind of jobs is online trading and investing. Stocks, currencies, whatever you want.

    HOW TO TRADE OR INVEST FROM HOME

    Once upon a time, people relied on the services of a stockbroker, who would make buy and sell orders on the customer’s behalf.

    Today, individuals are able to execute buy and sell orders themselves in a fraction of a second using computerized trading services.

    But, reading online articles doesn’t make you qualified to trade.

    Reading the classics of investment literature could be helpful.

    However, the best way is to set aside six months to practice trading with real-world data before investing your money.

    You can use some demo account and practice. After that create a trading fund and open a separate bank account for it. Do what you can to establish a fund that is separate from savings.

    Write down a trading strategy.

    You have many trading strategies available on the market. You can choose your own investment strategies, but you should include the parameters on how you choose stocks or currencies, when to purchase them and when to sell.

    Create a spreadsheet that tracks your investments, establishing parameters for the dates of purchase and sale and the costs involved.

    Buy and sell according to your strategies, and be disciplined with your budget. There will be ups and downs, but don’t deviate from your parameters.

    A lack of discipline leads to bigger losses and failure.

    When you’re looking for an online broker, consider the costs of each service the brokerage provides and the level of support you will need from qualified brokers.

    Choose your brokerage partner with open eyes!

    Before deciding to buy or sell any stock, you should carefully research the company, its leadership, and its competition.

    You don’t need a large sum of money to start.

    If you prefer to be a do-it-yourself trader, you can make use of discount online broker services. One that allows you to buy and sell not only stocks but also options, mutual funds, exchange-traded funds, fixed income funds, bonds, certificates of deposit, retirement accounts and more.

    You will make the final decision on each investment and whether or not to buy or sell. Make intelligent decisions about what you can afford to invest. Consider investing a portion of your money in an electronically traded index fund, which holds many stocks.

    There are no magical advantages, secrets that can make you more successful.

    It is a misconception of beginners in trading or investing.

    Remember several things:

    The professional trader doesn’t make money or have a job unless they are profitable. They realize that trading is NOT a fast and easy way to riches.

    You must have a strategic trading plan, proper risk management, and simple strategies to protect your investment and reduce risk whenever possible.

    Make a solid 2% gain than risk thousands of dollars for a possible 5% gain with considerably higher risk unless you are the gambler.

    Long term thinking on every trade and realizing that keeping money is sometimes more important than making huge gains.

    Some traders at home don’t want to take the time to learn the skill of technical analysis indicators.

    If you commit time to these indicators and understanding how they work (and don’t work) I can promise you will start to trade more consistently.

    And know what, those of us who have worked from home for years wouldn’t dream of going back to a corporate office.
    Ever. At any point!

    Risk Disclosure (read carefully!)

  • Can I get Rich by Trading Forex?

    Can I get Rich by Trading Forex?


    Some people really got rich by trading forex but they spent a lot of time and money to reach that level. Forex trading is a seductive but rocky path.

    By Guy Avtalyon

    Can I get rich by trading Forex? Yes, you can. Honestly, it’s possible but you have to learn a lot. When you first start learning something, you acquire information. As you acquire more and more information, your mind will sift through it and will organize it, and will only leave the most important information that pertains to you. And that becomes your knowledge. Then as you start acting on your knowledge, and start gaining experience on a subject, that knowledge turns into wisdom.

    I would like to emphasize this. In order to become successful,  it isn’t that you need to only be knowledgeable, but you also need to be wise, and wisdom is only acquired through action and experience.

    Listen to the wise people if you want to get rich by trading Forex

    But there is also a second point in this story. You can’t become a successful trader, no matter how much information you were gathering, and no matter how many books you read from “knowledgeable” experts if you are not ready to carefully listen to what wise people have to tell to you.

    So please, before you open up space in your mind to someone or something, make sure they are a wise person who is actually trading and making money in forex, instead of just giving you a bunch of useless theories. When you find such a person you will know that. You will feel like the guy who discovered the king’s tomb.

    Oh, yes, you will have one of those moments where you are staring at one of those optical illusions, staring at it for hours until KABOOM! It hits you “it’s a f***ing ship out to sea!”

    Until you get rich by trading Forex here are some tricks!

    Choose a Broker With Appropriate Trading Platform 

    You must know each broker’s policies and how it goes about making a market. Spending time researching the differences between brokers will be very helpful but choosing a reputable broker is of paramount importance.

    Define Your Goals, Methodology, and Style 

    It is vitally important, to have some idea of your goal and how you will get there. Hence, it is imperative to have clear goals in mind. After that ensure your trading method to be capable of achieving these goals. Each trading style has a different risk profile and each of them requires a certain attitude and approach to trade successfully. Whichever methodology you choose, be consistent, and be sure it is adaptive. Your system should follow the changing dynamics of a market.

    Choose Entry and Exit Time Frame 

    Some traders are disoriented by conflicting information that happens when looking at charts in different time frames. If you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize those two. If the weekly chart is sending you a buy signal, just be patient and wait for the confirmation from your daily chart. It should also give you buy signal In Forex trading timing is everything.

    Learn to Love Small Losses

    Think of your trading money like holiday money. Have the same attitude toward trading, once the holiday is over, your money is spent. This will mentally prepare you to take small losses. This is key to managing your risk. You will be much more successful by accepting small losses rather than constantly checking your balance.

    How to use Forex trading system  

    When knowing what to expect from your Forex trading system you must have the patience to wait for the price. It needs time to reach the levels that your system indicates for either the point of entry or exit. If your system point to entry at some level but the market never reaches it, then move on to the next opportunity. There will always be another trade. Sit on your hands until your system triggers an entry or exit point.

    Forex can change your life

    This is pretty much true but you must have realistic expectations. You can’t expect to invest $300 in your trading account and make $15,000 in each trade. That means being not – realistic. However, the Forex market sometimes can make a much bigger move than you expect. But it is not the rule, keep this in mind. It is better for you to be positively surprised than to lose everything. This is particularly true for Forex trading beginners.

    Build Positive Feedback Loops

    When you plan a trade with due diligence and execute it well, you create a positive feedback pattern. Success produces success, which grows confidence and you have a profitable trade. A positive feedback loop is formed as a result of a well-executed trade. But when you know that it comes in accordance with your trading plan the effect is more intense. Even if you get a small loss, you will be building a positive feedback loop. Think about the feedback loop as a tool and you’ll understand how important is to create this tool. That is the secret of how to get rich by trading Forex.

    Test Your Skills

    Open some free demo account and test. Submit trades in a virtual ambiance with virtual money before you start risking your own money. You should never ever trade a setup just because candles are moving. The aim is to be prepared and anticipate movements. You have to understand one rule: when a currency pair is moving fast, the reward to risk ratios are decreasing very fast. That means, there are more chances of the currency pair moving more pips before it makes a retracement. By jumping in a trade that is moving, the likelihood of a lower reward to risk ratio is high and the chances of a continued move without retracement are smaller.

    The best trading occurs when traders have both the mindset and trading mentality of a hunter when approaching the Forex market. If you coolly view and analyze what the conditions of the market are and then comparing that setup to the desired market environment, you are on the right path. If the market is offering sufficient odds of success and reward to risk ratios, then the trade plan is executed without any emotional disturbances.

    Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses.
    What are your experiences? Share them with us or share this post with others.

    Last update: 10/07/20
  • Making Money From Home – How Is It Possible?

    Making Money From Home – How Is It Possible?


    An ideal job for most of the young people is remote work and here are some possible jobs for making money from your home.

    By Guy Avtalyon

    Making money from home is possible and maybe the most popular these days.

    But, what do your fellows or cousins say when you express your desire to make a lot of money from home?

    Most of them say: “Okay, then go to school. Be a good student. Find a good job and work hard. ” You already know that, and it’s great to have an education. But this is not a guarantee that you will make big money.  On the other hand, you know that there are many people who make a lot of money in a relatively easy and effortless way.

    And whenever you mention to your crowd that you know some guy or girl who are making money from home, what answers you have as feedback?

    “He’s/she’s a thief.” “He/she has connections everywhere.” “It’s not an honest business.” “He/she was lucky.” “He’s/she’s one in a million.” And a bunch of similar stories.

    Yeah! Tell me something about that!

    However, these are just excuses.

    OK, the truth is that you have to work for money. But it is not enough just to do something. It’s important to do it SMART.

    There is a saying: Do it smart, not hard.

    And that’s true. If hard work is the only important thing to gain wealth, all the people in the world would be at least millionaires.

    What does SMART work mean and how can you make money without HARD work?

    It’s very simple.

    Smart work means doing the work once, then for months (sometimes for years) to enjoy the fruits of your work.

    Passive income is making money from home

    When you heard someone say, “I started looking for ways to get a passive income.”
    Probably never.

    But you’ve heard a thousand times: “I started looking for a job.” (Or worse: “I’m waiting for a job.”)

    And when you try to explain passive income to someone, they immediately say that you are lazy.

    I’ve heard of innumerable ways of passive earning. You can write a song, record a home video, patent an idea, write a book. You can sell handmade on Etsy, you can be freelancer, virtual assistant, or you can sell cookies. Or even simpler, you may begin to earn money from home, by trading.

    With the rapid development of computers, mobile devices, and faster Internet, there are more and more opportunities for automating some jobs and generating passive income.

    I’ll give you the ultimate beginner’s guide to trading online. First of all, you have to recognize different kinds of trading.

    What to trade while making money from home

    STOCK TRADING: That is the art of buying, holding, and selling stocks (also called shares) of securities listed on public stock exchanges.

    FOREX TRADING: That is the art of buying and selling currencies in the hopes of making profits on the difference in the value of such currencies in global economics.

    OPTIONS TRADING: That is the form of derivative trading in which people trade contracts that give them the rights (but not obligation) to buy or sell an underlying asset at a predetermined price.

    BINARY OPTIONS TRADING: Form of trading in which traders expect to earn a predetermined payout or nothing at all (they are also called all-or-nothing options) based on the success of their ‘prophecy’ of the outcome of a specific market event. Little complicated and not secure.

    YOUR FIRST TRADE

    You’ll need to decide on the kind of assets or securities you want to trade. After that, you’ll need to make is choosing the right broker or brokerage firm through which you’ll access the markets. That’s very important because the broker you choose will have a direct influence on securities you’ll be able to trade, on tools you’ll have at your disposal, how much you’ll pay in fees, and what final returns you can expect on your trades.

    You have to find a broker that would charge relatively low fees and provide you with a full package of resources to make your trading experience easier.

    TRADING STRATEGIES

    The main difference between trading and investments is that a trader seeks out market movements for profit, on the other hand, an investor waits to profit from long-term price movements in the assets in their portfolio. A trader will make tens or hundreds of trades within a week while an investor will buy and hold an asset for months or years. The first action in creating your trading strategy is to create a trading plan.

    A trading plan is like writing a business plan for some entrepreneurs. It will help you to make a realistic decision in periods of rapid market movement when your emotions might lead you to make impulsive decisions.

    A trading strategy should include specific goals such as: getting out of debt, retiring early, making your first million. Also, your trading strategy should include your asset allocation and diversification moves.  As a beginner, you shouldn’t put more than 5% of your trading capital per trade. Make sure your trading strategy contains a mix of fundamental analysis of global events, like wars that impact oil prices, but also technical analysis like trading rules based on price and volume transformations.

    It is important because you can use this information to determine your entry into trades, your exit when the trade goes your way, and your escape when the trade goes against your plans. In you, your best interest is to develop the disciple to incorporate stop/limit loss orders into every trade you place.

    New traders can use technology to lower the entry barriers to trading by automating many of the activities.

    THERE ARE SOME OF THEM:

    * Trading bots – This is simply computer programs with instructions based on a predetermined set of market indicators and parameters. You can use automated trading systems to trade stocks, options, futures, and foreign exchange products. It is based on a predefined set of rules, which determine when to enter an order, when to exit a position and how much money to invest in each trading product. Trading bots are especially helpful to beginner traders and sometimes, a bot can be an important market ally for reducing your losses.

    * Stock screeners – That can help you filter the stocks in the market to narrow down potential winners before their big breaks. Screeners are helpful to identify top winners and losers, stocks on momentum, and stocks that are possible to break out above resistance levels or break down below support levels.

    * Social trading – This is a type of trading in which traders rely on users’ financial content, gathered from different networks. This type of trading provides you the platform, so you can be part of a society of successful traders. That may help you to make your own trading decisions.

    WHAT YOU HAVE TO REMEMBER

    Always use a trading plan, don’t underestimating the importance of a trading journal, change trading strategy after every trade.

    Test your trading skills on some FREE DEMO ACCOUNT in a virtual environment before you start risking your own money. Practice trading strategies so that when you’re ready to enter the real market, you’ve had the practice you need.

    Do you have any experience in trading? Share with others.

     

  • The Best Broker and How To Choose?

    The Best Broker and How To Choose?

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

    By Guy Avtalyon

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

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

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

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

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

    Tips and tricks for choosing the best broker

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

    What type of trader do you want to be?

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

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

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

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

     



  • 10 Things You Need To Know Before Choosing A Broker

    10 Things You Need To Know Before Choosing A Broker

    10 Things You Need To Know Before Choosing A Broker
    One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with.

    By Guy Avtalyon

    What do you need to know before choosing a broker? A decision to choose the broker may be a nightmare for traders. If you read about them on various forums or read paid bad reviews, you can really find yourself stuck in that. One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with.

    If you’re looking to buy a cryptocurrency in an ICO, the advice is to read the company’s prospectus for this information:

    a) Who owns the company? A recognizable and popular owner could be a positive sign.

    b) Are there other major investors who are investing in it? It’s a good indication if other famous investors want to invest in the currency.

    c) Will you own a stake in the company or just currency or tokens? This distinction is important. Holding a stake means you’ll get to share in its earnings, while buying tokens simply means you’re allowed to use them, for example, like chips in a casino.

    d) Is the currency already developed, or is the company looking to raise money to develop it? The further along with the product, the less risky it is.

    What things you need to know before choosing a broker

    Before you jump in all of this you have to check:

    1) Demo Account: Before risking your own money, it is absolutely crucial you trade with a demo account. You need to know before choosing a broker if it offers a demo account Demo accounts are the best option a trader has to test a trading strategy and evaluate how they are as a trader. It might not be perfect, but it is better than the alternative of jumping straight into the deep water.

    2) Accessibility: Before you sign a contract with a  broker, test out their customer service and support. Are they accessible? If you have a problem whether it is technical or general, is there someone there whose only job is to provide you better service?

    3) Legitimacy: It is important to check on the broker’s website for any additional financial information and statistics about the brokerage. If it is not there, check on the parent company’s site, and if you cannot locate this information, this should raise a red flag. This is information you need to know before choosing a broker. 

    Also, you can CHECK HERE

    4) Resources: It is important to ensure that the platform competes with the market standard of including real-time charts, integrated technical analysis tools, live news, and updated market data, and sometimes support for trading systems.

    5) Foundation: The number of online brokers is expanding fast, so you’ll need to check and double-check before signing anything. Particularly if it involves very large amounts of money. It is therefore important to investigate who and what is behind the brokerage and how strong its foundations are.

    6) Competitive Spreads: After determining the integrity of the online broker, now you need to evaluate the quality of their offering.  It is of absolute importance to find a broker with the smallest spreads. That will warrant maximum profit for you.

    What else is important when picking a broker?

    7) Leverage Flexibility: is one of the most important advantages of the market. But large leverage is not always the top option for all traders. The larger the leverage involves the higher risk. So if you have limited money, higher leverage will increase your opportunities, that’s sure. On the other hand, if money isn’t a problem, lower leverage is better to pick.

    8) Account Types: Alike with the leverage, the type of account you choose will depend on your needs in trading. When choosing a broker, it is important it offers several types of trading accounts.

    9) Lenient Margin Rules: If a brokerage has strict margin rules, you might encounter a sharp decline in one of your positions. So, before it gets a chance to recover and make you some profits,  your broker can make a margin call. That can liquidate your account. This will result in great losses for you. It is important to know that broker’s margin rules are not too severe.

    10) Emotionless Trading Features: You need to trade in a cold and calculated way so as not to let your emotion get the best of you. One of the guiding principles in successful trading is “Leave emotion out”. This is done by setting a broker’s trading platform and under no circumstances deviating from them. The main advice is don’t rush into it, check your broker against the above criteria, establish a trading strategy, examine the market using technical and fundamental analysis.

    And experience of other traders too.

Traders-Paradise