Category: How to Start Trading – Beginners

  • The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock marketWhat rules every investor should follow if want to be successful? Read to the end.

    By Guy Avtalyon

    Every field has golden rules, so this one has too.

    Fast money and easy earnings are mostly what young people want to succeed in the business world.
    They are attracted by exchanges, money is invested in shares.

    WOW!

    However, there are many curves, curvatures, spirals, and twists that, and if you don’t know how to avoid them, your trip to the stock market can be very short-lived.

    What are the golden rules for investing in the stock market, which should be known primarily to beginners in this business, but also to more experienced stock traders?

    Create a portfolio one of the golden rules

    You can do this in a simple way. There are many free portfolio managers on the Internet, so use some of them to make a free account.

    Create a fictitious portfolio in which you would potentially invest and monitor the situation for a while, a minimum of one month. This will give you the best insight into market volatility.

    Before you take the first step, the goal is to create a profitable fictitious portfolio as an investor on the stock market. This is really the golden rule.

    Among other Golden rules: Read business magazines 

    In order to successfully start investing in the stock market, you need to be aware of the world’s stock market. Also, what are the social events that affect the rise or fall of the price of shares?

    There are many respectable business magazines dealing with this topic (Forbes, The Economist, Kiplinger’s are some of the most famous ones).

    Follow the events in the global economy and finance and you will be able to swim more easily in the very turbulent waters of the stock market.

    Buy stock from a field you know well 

    Before investing money into something, you should understand the business the company is dealing with.

    The first stock you will buy on the stock market should be from the sector you understand and it is familiar to you.

    For example, if you know the banking sector, try to explore the market and find a bank whose stocks are good and worth investing.

    Never invest in the action itself, but in the company. This is one of the best golden rules I ever got. 

    Have realistic expectations

    There may be a problem if your financial goals are based on unrealistic presumption. Try to be realistic in your ambitions and goals. This will the most important golden rule for novices. 

    In this way, there are fewer chances to lose money or be disappointed in your stock market business.

    Do your own research one of the most important golden rules

    You will hear from people who are dealing with the stock exchange that they have bought some stocks. Just because the same was done by their friend or family member who understands this business.

    Accept everything with reserve. Before buying a stock, do research. If some stocks brought in earnings in the past doesn’t necessarily mean that this trend will continue.

    Always believe more to yourself than other people’s estimation.

    The stock exchange is NOT a money-making machine 

    This is one of the Golden rules. Most of those who want to participate stock market, have an unrealistic desire to double or triple investment in the short time frame.

    If you are one of them, then that’s not a job for you. For those who want to invest, 10 to 12% of the earnings for a long period is quite a good investment.

    You need to realize that you are just a small fish in a big lake and that your success depends on many factors. Some traders became really successful when they realized this golden rule. 

    Follow the clues and make conclusions.

    3 or 4 good stocks are enough 

    Don’t overplay is truly a golden rule. Especially because you are a beginner in this business. More than 10 stocks are a good portfolio, but for investment funds.

    It is true that they make more profit. But if you make a smart and wise decision you will earn enough money. Golden rules should be known to beginners in this business.

    Don’t try to predict the stock price

     Not even the biggest billionaires and owners of the largest multinational companies in the world are doing this.  No one is able to predict, at least for a longer period, several stock market cycles.

    Ability to guess the moment when the stock will have the highest value is still a myth. Even for those who have an insight into the business of some companies. Therefore, for successful business and investing in the stock market, you need to acquire certain knowledge and skills.

    According to many kinds of research, the risk of investing in the stock exchange is most often taken over by young people who have just finished college.

    But, like in every other business, the experience you get, will help you to be wiser in making decisions in the future. 

    That’s how it works!

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

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

    2 min read

    Let us explain the differences between traders and investors, at first.

    Stock traders are individuals (or entities) engaged in the trading of equity securities, or the transfer of other financial assets.

    They work either for themselves or on behalf of someone else.

    They may operate as agents, hedgers, arbitrageurs, speculators, or investors.

    Stock investors are individuals (or entities) who use their own money to buy equity securities. The goal of the stock investor is to gain returns, which come in the form of income, interest, or appreciation in value also known as capital gains.

    DIFFERENCES BETWEEN TRADING AND INVESTING

    Investing and trading may often be classified together.

    But, they are both different ways of attempting to profit from the financial markets.

    The goal of making investments is to progressively increase wealth over a long period of time by using the buying and holding of a portfolio of stocks, mutual funds, bonds and other methods of investment.

    Trading involves short-term buying and selling of stock and commodities such as currency pairs and other instruments. The goal is earning profitable returns which outperform a traditional buy and hold investing.

    For example, while most investors may be satisfied with a 10% annual return, traders may seek to achieve this per month.

    Period of acting

    Return on investment and payback period seem to be the two most commonly used financial metrics for making sustainability investment.

    Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! The trader holds stocks until the short term high performance.

    On the other hand, investing is an approach that works on buy and holds a principle.

    Investors invest their money for some years, decades or for the even longer period. Short-term market fluctuations are irrelevant in the long-running investing.

    Growth of capital

    Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks.
    So we can say, trading is the skill of timing the market but investing is an art. 

    The real art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the market.

    Risk of both fields

    Both, trading and investing, include risk on your capital.

    But trading involves higher risk and higher potential returns. The price might go high or low in a short while.

    Investing takes a while to develop. It involves comparatively lower risk and lower returns in the short run. But might deliver higher returns by putting together interests and dividends if held for a longer period of time.

    Daily market cycles do not affect much on quality stock investments for a longer time.

    Essentially differences

    Trading is a one day match while investing is a championship.  

    Similarly, traders are skilled, technical individuals, they learn market trends to hit higher profits in the stipulated time. It is related to the psychology of the market.

    Investors, on the other hand, analyze the stocks they want to invest in. Investing also includes learning business fundamentals and commitment to stay invested for a longer-term.

    It is related to the philosophy that runs the business.

    Traders put money in a stock for a short-term,  buy and sell fast to hit the higher profits in the market. Missing the right time may lead to the loss.

    They look at the present performance to hit the higher price and book profits in the very short term.

    Investors keep themselves away from the trends and invest in value.

    They invest for a longer period of time keeping the attention of the stocks they hold. They wait till the stock reaches its potential.

    You are the one to decide is your goal  trading at a higher price making a smaller profit in a short time. Or holding/investing on and sell at much higher price in the long run is what you aim for.

    A key rule of trading is to only do so when you are certain that there is an upcoming future event which is predicted to drive the stock value of an organization or entity higher.

    When trading, there are certain strategies which must be put in place.

    Traders should take note of the news and use it to make an educated decision which will hopefully enable them to make a profit afterward. This shows the difference between trading as a short-term investment and investing as a long-term method of gaining wealth.

    When investing, the goal is to bank profits over the long term.

    With dips in value simply providing the opportunity to buy more of the commodity in question. Investing means sitting it out when the commodity rises in value as there will likely be more good news ahead for the company and more profits to be made.

    If you are new to the world of investing and trading, it’s important to know which you are going to choose.

    The imperative to increase your financial gain is what defines it.

    Knowledge of the subject is important. 

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

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

  • Trading Stocks Platform – How To Find The Best

    Trading Stocks Platform – How To Find The Best

    2 min read

    (Updated October 2021)


    The best trading stocks platform must be available from the beginning of the signup process.

    Trading stocks platform is simply software for trading, it’s a kind of online broker. It is very important for any investor. And the most powerful tool in your hands. Every trader has it’s own investment style of trading. An abundance of brokers’ offers allows individuals to choose what best fits their needs.

    If you’re an active trader looking to try your hand at beating the markets, you probably have a good idea of what you want from a brokerage: low costs, premium research, innovative strategy tools, and a rich with features trading platform.

    trading stocks platform

    This era of trading stocks platform makes the world as high-risk/high-reward investing accessible to the wide public. Profitable investing takes time and hard work. It also requires you to use the best trading stocks platform that fits your investing goals, educational needs, and learning style.
    If you are new investors, selecting the best trading stocks platform can make the difference between a great new income stream and an inevitable frustrating handover.

    You have to know one thing, there’s no sure-fire way to guarantee investment returns. But there is a way to set yourself up for success by selecting the right trading stocks platform that best suits you. I’ll try to show you all the important things you should be looking for in your ideal brokerage on your path to find the best online broker.

    For a starter, take a moment to focus on what is most important to you in a trading platform, before you start clicking on brokerage ads. You’ll be surprised!

    Recognize your needs when choosing a trading stocks platform.

    You must know them.

    If you are a novice, you may prioritize things such as basic educational resources, large glossaries. Also, you might prefer easy access to support services. Maybe the ability to have practice trades before you start playing with real money is more important to you.

    For example, an experienced investor, possibly someone who executed hundreds of trades already but is looking for a new trading stocks platform. Such will prioritize advanced charting capabilities, conditional order options, or the ability to trade derivatives, mutual funds, commodities, and fixed-income securities, as well as stocks.
    Trading Stocks Platform - How To Find
    And you have to be honest with yourself about where you are right now in your investing tour and where you want to go. Do you want to try your hand at day-trading but don’t know where and how to start? Maybe you like the idea of tailoring your portfolio, or you want to pay a professional to provide it done right?

    For now, I suggest you start with this crucial deliberation as a way to determine which of the brokerage features would be the most important to you.

    To help yourself to find and use the best trading stocks platform be honest when you are answering these questions.

    a) How much do you already know?
    b) What kind of trades will you want to execute?
    c) Are you an active or passive investor?
    d) What kind of help do you need?
    e) Define your goals

    Be brutally honest with yourself about how much time, energy, and effort you are willing to put into your investments. Your answers may change over time, no one can anticipate all their needs and goals for the rest of their life. Just start with where you are right now.

    Pay attention to several things while finding the best trading stocks platform



    * Does the brokerage website offers two-factor authentication
    * Do they clearly explain how they use encryption or “cookies” to protect your account information and how they work?
    * Try searching the web for reviews of the brokerage, using keywords like “insurance claim”, “fraud protection”, “customer support”, “chargebacks”, “easy withdrawal”
    * Will the company reimburse you for losses resulting from fraud? etc.

    And then test it!

    Every brokerage should have a decent description of what kinds of tools and resources it is trading stocks platform offers. But sometimes the best way to evaluate platform quality is to give it a test drive. For brokers that allow you to open an free or demo account. It might be worth the effort to go through the signup process just to access and test the trading platform.

  • Secrets About Trading Stocks Revealed

    Secrets About Trading Stocks Revealed

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

    By Guy Avtalyon

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

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

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

    Damn, what I have to do?

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

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

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

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

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

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

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

    Do you want to become a day trader?

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

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

    Secrets about trading that make you successful

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

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

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

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

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

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

    Secrets about trading stocks

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

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

    Good luck!

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

  • Following the Lead Traders – Good Or Bad For You?

    Following the Lead Traders – Good Or Bad For You?


    Following the lead-traders is good but also can be very risky.

    By Guy Avtalyon

    Following the lead traders is good but also can be very risky. So, what to do?

    I would be happy if the answer is so easy. Unfortunately, that’s a very difficult question and the answer is complex.

    The first thing you have to make clear is, are you ready to take risks? How much and how long? Why do you trade?

    Because on the basis of the answer you will choose the traders you will be following. There are very “playful” traders, people who are ready for enormous risk, and you are not ready to accept it. Their profit is sometimes very high, but the risk is huge.

    Following the lead-traders is connected with some risks

    Then, what you have to do?

    First of all, you need good information.

    You can use the information provided by other traders and you don’t have to learn all the required skills, yourself.
    But how to recognize if the information is any good? Of course, you can’t believe everything you read. That means you have to test all the provided data or you decipher the charts. Even when you get all the information there is no guarantee that you will get it right. Why? Well, you know, even the best traders lie sometimes.

    How can you be sure that a trader is good?

    One of the most popular tools to evaluate a trader’s performance is community feedback. Successful traders usually have many followers and there will be a lot of helpful feedback you can use when you make the decision to take his advice or copy him or her. But be careful, a trader can be good but unpopular. Maybe someone doesn’t like his/her attitude, or simply because he didn’t get that 400% profit the users who copied him were counting on.

    Is community feedback a good indicator that a trader is worth following 

    Community feedback can serve as an indicator, but not the only one.

    You can find some platform that allows you to have a look at a trader’s investment history and current portfolio. There you can see how much they’ve gained (usually in %) so you can infer how good they are. That can be a good way to choose which trader to follow. But, in order to boost their ratings, they have to leave losing trades open. And if you see that a trader has many losing trades open, this is usually a bad sign.

    One trader said he never takes a loss or a win.  He just observes the result of his trading edge and moves onto the next. I would follow this trader because he has a great way to think!

    Because we will never know with 100% certainty whether our next trade will win or lose.  All we can do is implement our edge when the time is right. That means, let the random combination of wins and losses play out for some time. Simple as that.

    Who is a successful trader?

    In short, a successful trader takes the losing trades are a part of doing business.

    The second thing is the portfolio. The portfolio can tell you a lot about a trader. Take a look and if you find he doesn’t have many opened losing trades, it’s quite possible that he knows what he’s doing.

    You would like to know how A Trading Portfolio Should Look Like

    You have to know whether or not a trader is trustworthy and competent enough for you to follow and copy him. If traders profile is not completed, this might indicate that the trader is relatively new, or that he doesn’t take too much interest in his own profile.  And good trader who wants to be followed will take the time to complete his profile. It is important to know if a trader is using real money or virtual money before you start following the lead-traders. Anyone take huge risks with virtual money. So, don’t take any action before you have confirmed that real money is traded.

    And a few words about risk management. You will be surprised at how sometimes people will risk much more than you would like. If you don’t like such surprises, make sure that you find someone with your level of risk management.

    When you find the right people, there is still no guarantee that they will make you money.

    When you start following the lead-traders, you must have in your mind one thing: if you choose the wrong people you will lose money. You have to find exactly what you’re looking for in order to get the best chance.

    What you need to know before following the lead traders

    You must know that success is never a straight line. Keep in mind that hard times are a time for growth. The times of struggle are an opportunity for you to find the discipline to stick to your proven edge.

    The truth about lead traders, as in billionaire rich is:
    1) Some of them grew up in middle-class families and some of them did not.
    2) Most of them did not start trading with a lot of money.
    3) They even had some funny jobs to start with

    “The key is consistency and discipline. I don’t think anybody winds up making money in this business because they started out lucky.” stated legendary Richard Dennis.

    “Always use stops,” said Michael Marcus who turned $30,000 into $80,000,000.

    Following lead-traders should be helpful but you have to pay attention, really pay attention, who to follow.

     

  • Trading Or Investing – What’s Better Strategy?

    Trading Or Investing – What’s Better Strategy?


    Understand the differences between trading and investing to be able to choose your strategy for approaching the stock market

    By Guy Avtalyon

    Trading or investing? Actually they are two very different strategies of trying to profit in the financial markets. The goal of investing is to continuously build wealth over a long time through the buying and holding of a portfolio of stocks, mutual funds, bonds, and other investment products.
    Investors usually increase their profits through compounding or reinvesting any profits and dividends into new stocks

    Trading versus Investing

    Investments are usually kept for years, sometimes even decades. There are many advantages to investing for a long time, for example, interest, dividends, can give profits also. Investors are more concerned with market fundamentals, such as price/earnings ratios and management predictions.

    On the other hand, trading involves the more frequent buying and selling of stock, commodities, currency pairs, or other, with the goal of generating returns that outperform buy-and-hold investing. Trading profits are generated by buying at a lower price and selling at a higher price within a short period of time. But, trading profits are made also by selling at a higher price and buying to cover at a lower price (known as “selling short”) to profit in falling markets.

    For traders, the stock price action is more important. If the selling price goes up, they will usually want to sell the stocks they hold. Trading is more the art of right timing while investing is the ability to create wealth by increasing interest, plus dividends over the years. Investors’goal is to keep excellent stocks in the market. Trading will give you a chance to profit on short-term market movements.

    Investing means to hold stocks for a longer time, longer than 5 years, for example. But some investors hold their excellent stocks for decades and sometimes they are the part of the inheritance.

    Stock investor versus stock trader

    Stock traders and stock investors approach the stock market with the same objective but use different modus operandi. But stock investor tries to achieve this through a single transaction, whereas the stock trader chooses multiple transactions but in quick succession. The stock investor just buys and holds while the stock trader buys and sells stocks on a continuous basis.

    Select stocks for investment

    Stock investors are very patient and have the tendency to hold stocks until the market realizes their actual worth.

    Stock traders are simply concerned about the price movement and they are ready to buy an overvalued stock if the price movement suggests so. They are least worried about the valuation of the stock.

    Trading tools for trading and investing

    Stock investors rely on fundamental analysis for identifying investment avenues. They utilize top-down and bottoms-up approach together with ratio analysis for stock selection.

    Stock traders employ technical analysis to maximize their returns. They are concerned about past and current price movements.

    Different market niche

    Stock investors pay more attention to taking dividends payments while traders never or rarely pay attention to dividends. This limitation makes the derivative market more suitable for traders and the cash market for investors.

    Why you have to know all of this?

    You have to know, to recognize, your own psychology before entering the market. To find which of this technique suits you better. Identifying your personality will enable you to employ the right tools and techniques to be a winner.

    If you are comfy with speculation, be a trader, and if you are a hunker, choose to be an investor.

  • A Trading Portfolio Should Look Like…

    A Trading Portfolio Should Look Like…

    Take a big breath and a pencil.

    2 min read

    Everyone has dreams about how the good life should look like. But it, besides earning enough money, it is necessary to build an investment or trading portfolio. Especially if you want to invest or trade cryptos.

    Before you begin building your complete financial portfolio you have to be calm and reasonable.

    Take a big breath and a pencil.

    The whole process of building a trading portfolio should be done in SEVERAL STEPS:

    STEP 1: Define why do you want to invest or trade. Your purpose is very personal.  If you thought saving and investing meant the same thing, you were wrong. Savings are the unutilized part of your income. Only when you put your savings partially or entirely into an investment instrument, it qualifies as an investment.

    STEP 2: Be realistic about your appetite for risk. Most of us know how much we have saved to date but very few of us have a realistic understanding of how much risk we’re willing to take on to achieve our financial goals. Your risk appetite will depend on your age and financial responsibilities.

    Young investors are under enormous stress! READ MORE

    STEP 3: Understand the relationship between risk and return. Risk and return are directly proportional to each other. Higher the risk involved, higher is the return and vice versa. For example, you have promises higher returns compared to fixed deposits, but it also comes with a relatively higher risk.

    Step by step to the trading portfolio

    STEP 4: Create a contingency fund. Honestly speaking, this has to be the first. Before you invest or trade anywhere, you must create a contingency fund for those rainy days. A contingency fund worth six months of your current income is good enough to keep you from dipping into your investment funds.

    STEP 5: “If you don’t know where you’re going, you’ll miss it every time.” – baseball philosopher, Yogi Berra. That means, you know your purpose for investing, but do you know what it will cost to achieve that purpose.

    STEP 6: Invest with a plan. The most successful portfolios are assembled based on a solid understanding of the fundamentals of the individual securities that comprise the portfolio. The trading portfolio should also factor risk tolerance into the balancing discussion.

    STEP 7: Give it time. While there may be some investment choices that you hold for shorter periods of time than others, overall, maintaining the long view should deliver consistently positive returns.

    And general advice while building a trading portfolio: TRY NOT TO BE OBSESSED!

    Markets can be volatile from day to day, even month-to-month, never mind hour-to-hour especially the market of cryptocurrencies. But over longer periods of time, volatility subsides. Build your portfolio and let it run.


    Checking the market every 15 minutes or so won’t affect your portfolio, but it will affect your sanity.

    When a lot of people think of investing or trading, they imagine painstakingly picking individual stocks, tracking their daily performance and constantly buying and selling. This may be good and interesting for TV shows or movies. But in real life it is agony.

    All you need to do is pick a couple of funds that attempt to mimic the total market’s behavior, and, for the most part, leave them alone for 5 or 10 years. It’s very simple, and it’s something everyone can and should do. In fact, it’s one of the best ways to effortlessly build wealth in the long term.

    There are more cryptos to the market and a good portfolio will usually include a few different types of investments.

    Are there any differences among trading portfolios for different assets?

    But when we are speaking about the trading portfolio, the principle is the same for cryptos and stocks: suitability, balancing different sectors and fund/crypto types.

    You can build a cryptocurrency portfolio using a risk-reward formula if that is acceptable to you. You are that one who has to decide how much risk you want to take on and that should influence which coins you invest in.

    Recommendation is keeping at least 50% of your portfolio in safe-ish coins like Bitcoin, Ethereum, Litecoin, Icoin.

    When building your own cryptocurrency portfolio you should not simply copy mine, always do your own research and decide which coins you can be excited about. Crucially, the entry point is very important and I entered many of these coins months ago when they were cheaper, there may be better buys out there right now. Buying more coins to expand your cryptocurrency portfolio is a smart idea.

    Diversify trading portfolio


    The more you diversify, the better your chance of hitting a coin that flies to the moon.

    To properly expand your portfolio, you will need to join a trading platform, some of the largest and most trusted trading platforms which list a wide selection of decent coins.

    Once you have your BTC in place on a cryptocurrency exchange, you can then expand your portfolio and buy other coins.

    How to structure your stock portfolio? HERE IS THE ANSWER

  • How To Trade Crypto And Stocks / Forex

    How To Trade Crypto And Stocks / Forex

    How To Trade Crypto And Stocks / Forex
    Basically, it is the same but with some differences. In this post, you’ll find all about them.

    By Guy Avtalyon

    How to trade crypto, stocks, or forex? It is similar but at the same time different from other trades, for example, stocks or forex. At first, we have to define the difference between crypto and Forex or stock trading because you have to have theoretical knowledge.

    What is crypto trading

    Crypto trading is simply the exchange of cryptocurrencies. Just like in Forex. In crypto trading, you are buying and selling a cryptocurrency for another. It’s the same as you buy Bitcoin or altcoin for USD and Euro.

    What is the Forex market

    Forex, also known as FX, or currency market is where you can trade currencies. The forex market isn’t centralized. It is, also, OTC or over-the-counter market. Here you can buy, sell, or exchange currencies at determined or current prices. So, it operates like any other market.

    What is stocks trading

    In short, it is the buying and selling of company stock – or derivative products based on company stock – in the hope of making a profit.
    Let’s go further!

    How to trade crypto

    Honestly, all of these types of investments are risky. Crypto gives greater growth than stocks or forex.

    You all know all about the Bitcoin. Well, Bitcoin isn’t the only digital currency that you can trade on the market. It is really the first and most popular one and is the real digital gold in the industry. The most important part behind cryptocurrencies is the technology that holds a large part of their value. The technology is what provides a safe way to identify a transaction and, also, the way to transfer currency or fiat money in exchange.

    If you want to trade crypto you need as first:

    1) A cryptocurrency wallet (or two).
    2) An exchange or platform to trade on.
    3) By using a bank account (find more HERE)

    There are only a few things, but important, you have to know about trading cryptocurrency.

    Trading cryptocurrency is simple to start, but there are some essential aspects to understand before you start trading and this is basic friendly advice to mull over, not professional investment advice.

    I’ll explain an example of Bitcoin.

    How to trade crypto

    Firstly, you’ll have to buy the underlying asset from an exchange or online broker.

    If you want to protect your Bitcoin, you must have underlying. That’s the best way. However, you’ll have to take some reasonable steps to reduce the risk of Bitcoin stealing and loss of private keys. The steps are simply a diversification of holdings across different wallets/storage types. Keep in mind that you’ll need two-factor authentication and strong passwords.

    Further, you can trade a CFDs derivative and hold a cash margin.
    If you want to trade on Bitcoin for a short or medium period find, use an online forex broker that will provide you 24-hour trading. Also, ask for the potentially lower margins, and also, the ability to go long or short. Choosing the right broker is very important. Your broker has to provide you the best trading tools and favorable commission rates.

    It is always smarter to buy a publicly listed security linked to Bitcoin and hold that shares with an online broker.

    Stock investors, investing in Bitcoin through listed security, for example, ETF or ETP, could be suitable. Especially for investors that prefer taking a passive position. More active traders might notice that the limited trading hours and possible lack of volume are limiting factors. That could limit their trading indeed.

    Overall, using listed securities that invest, track, or hold Bitcoin can be a viable alternative to diversify away from the risks of margin trading or safeguarding private keys when buying the underlying.

    How to trade forex

    You can trade currency based on what you think its value is, if you think a currency will increase in value, you can buy it. If you think it will decline, just sell it.
    In forex trading, you’re betting on the value of one currency against another.
    For example, EUR/USD, which is the most-traded currency pair in the world.
    EUR as the first in the pair is the base currency, while USD, as the second, is the counter. Read more HERE

    When you see a quoted price, that shows how’s much one euro worth in US dollars. Also, you’ll always see two prices. That is because one is the buy price and the other is the sale price. The difference between these two prices is the spread.
    When you choose to buy or sell, you are actually buying or selling the first currency in the pair.
    If you think the Euro will rise in value against the dollar, you buy EUR / USD. And vice versa, if you believe the Euro will drop, you sell EUR/USD.

    If prices are quoted to the hundredths of cents, how can you see any return on your investment when you trade forex?
    Leverage!
    When you trade forex you’re borrowing the first currency in the pair to buy or sell the second currency.
    To trade with leverage, you just set aside the necessary margin for your trade size. If you’re trading 200:1 leverage, for example, you can trade $2,000 in the market while only setting aside $10 in the margin in your trading account. Still, leverage will not just increase your profit potential. It can also increase your losses. If you are new to forex, you should always start trading with lower leverage ratios, until you feel comfortable in the market.

    How to trade stocks

    Stock markets are places where buyers and sellers of shares meet and decide on a price to trade.

    It is important to know that the corporations listed on stock markets do not buy and sell their own shares on a regular basis. You have to know that you\re not buying shares from the company, you are buying it from some other shareholder.

    There are many stock exchanges, many of which are linked together electronically which means markets are more efficient.

    The prices of shares on a stock are established through an auction process

    The prices of shares on a stock market can be set in a number of ways, but most of the most common way is through an auction process where buyers and sellers place bids and offer to buy or sell. A bid is a price at which somebody wishes to buy, and an offer (or ask) is the price at which somebody wishes to sell.

    When the bid and ask coincide, a trade is made. If there are many buyers and sellers at higher and lower prices, we say the market has good depth. Stocks are quoted by their ticker symbol, represented by between one and four capital letters, which are often loosely representative of the company name.

    Market orders are simply orders that direct your broker to buy or sell shares at the best possible price. A  market order doesn’t guarantee the price, but it does ensure that you’ll get the number of shares you require. When an order is completed, it is said to be filled.

    Stop orders are contingent on a certain price level being attained to activate the trade and your trade will be executed only when what you want to buy or sell reaches a particular price.

    If you understand how the financial markets are structured you can use the same skill and experience to profit in all three.

    It’s the same, you buy low and sell high against the crowd. There is no difference.

  • How To Follow Trading Portfolio?

    How To Follow Trading Portfolio?

    How To Follow Trading Portfolio?
    There you are! You are a proud owner of crypto or stock and have a trading portfolio! So, what is the next step? 

    By Guy Avtalyon

    How to follow your trading portfolio? Let me remind you! Without clear goals, there won’t be any way to really measure your success.

    A great, one-time win can look good, but this is not necessarily a barometer for your overall trading success. This can lead you to delusion very easily.

    The most important is to have a set of rules to manage any possible scenario. Even more important, you must also have the discipline to follow these rules.

    This means you MUST follow the trading portfolio.

    How to follow a trading portfolio

    Never, but remember NEVER  in the heat of battle throw out your own rules and not play by ear. That usually finishes with disastrous results.

    Did you ever ask yourself how professional traders see the market differently?

    So, what exactly you have to do?

    1. Do not create excuses to break the rules.
    2. Separate your planning from your execution.
    3. Lower your losses according to the plan.
    4. Always make your profits run according to plan.
    5. Skip your emotions.
    6. Focus on trading well.
    7. Be patient. Do not rush with trade.
    8. Predict the future, but trade in the present.

    These are just general rules for each trading.

    But truth is that you bought a billion altcoins and got yourself into a thousand ICO’s and now you’re not even sure how much money you have. 

    Is that correct?

    So, you need a system to follow a trading portfolio in real-time, on many platforms. There are plenty of free trading platforms you can use easily. You need one reliable with auto sync with exchanges and wallets and with the ability to add tax.

    And fast too.

    And you are on the non-technical side and know nothing about trading but you are a bitcoin and cryptocurrency enthusiast.

    Most of all, you are the owner, for God’s sake! 🙂

    Now, when the money on crypto started getting real you definitely have to treat it as an investment and keep track of its performance.

    You need software!

    What is the simplest way to follow a trading portfolio?

    The simplest way is to choose one of the platforms to follow the portfolio. But even if you are using some software you MUST have something on your mind when trading questions.

    You are not a kid and you know that you can expect losses.
    Losses are part of trading you have to accept them. If you have this on your mind, you will reduce emotional resistance when the time comes to do so.

    Do not take a trade unless you are willing to accept the risk that accompanies the trade, and it is the possibility of loss.

    Accept that you will lose money on some trades and try to take your losses easily when they come.

    That is the rule. But remember, don’t bend your rules! Stay stick to your portfolio!

    Of course only if your goals are realistic.

    Goals demands to be specific and they need to be achievable. Not just once, but consistently. When you think of goals, think long-term. That requires a certain level of patience that only comes with strong discipline. Once you have a long-term goal, you need a timeframe for its achievement.

    Avoid emotional trading

    You have to manage your emotions. When you have some doubts or you are unsure, get out! Never act based on greed or fear. But never give up!

    Do not expect to become an expert overnight! Trading takes time to build experience! I repeat! The best way to follow your trading portfolio is to use some of the advanced software and platforms.

    And it is smart to use Google Sheets.

    This online spreadsheet application is on a list of cryptocurrency portfolio trackers because it is one of the most versatile and customizable tools for cryptocurrency analytics. You can do what you want with it, to whichever extent you want.

    If you’re only tracking Bitcoin, simply set up a sheet with the GOOGLE FINANCE ticker. That’s how you will update BTC prices in a number of currencies instantly. Also, you can download one of the many available Google Sheets plugins which give you access to a plethora of cryptocurrency prices in real-time. The most popular one is Cryptofinance.

    Keep records of your trades and thought process, analyze your mistakes, then move on. But be a good student, don’t make the same mistake again.

    Improve yourself continuously. “Success consists of going from failure to failure without loss of enthusiasm,” said Winston Churchill.