Category: Traders’ Secrets

Traders’ Secrets is something that everyone would like to know, right?
How is it possible that some traders are successful all the time while others fail to make a profit all the time?
That is exactly what Traders’ Secrets will show you.
Traders-Paradise’s team reveal all trading and investing secrets to you, our visitors.

What will you find here?

How to find, buy, trade stocks, currencies, cryptos. You’ll find here what are the best strategies you can use, all with full explanation and examples.
Traders-Paradise gives you, our readers, this unique chance to uncover and fully understand everything and anything about trading and investing. The material presented here is originated from the experience of many executed trades, many mistakes made by traders and investors but written on the way that teaches you how to avoid these mistakes.

Moreover, here you’ll find some rare techniques and strategies that are successful forever, for any market condition. Also, how to trade with a little money and gain consistent returns. By following these posts you’ll e able to trade with greater success. You’ll increase your profits and your wealth, of course.

The main secret of Traders’ Secrets is that there shouldn’t be any secret for traders and investors. Rise up your trade by reading these posts, articles, and analyses!

You’ll enjoy every word written here. Moreover, after all, your trading and investing knowledge will be more extensive and effective.

Traders’ Secrets will arm you with those skills, so you’ll never have a losing trade again.

The value of investments is falling – What to do?

This can be a big issue, try not to panic, and follow these steps to protect your capital invested.

by Gorica Gligorijevic

The value of investments is falling and you are worried. Don’t be, it’s normal from time to time but also, you may profit from it. Let me explain this.

In stock investing, you have to respect a few general facts. You may face the value of investments fall, as first. What you have to do? To find the reason behind. When you determine the reason you will have a powerful weapon in your hands: you will be able to decide should you sell or hold your stocks. Moreover, you’ll be able to buy a new stock of shares. Well, you can see it isn’t the end of the world. Just think about other opportunities and try not to panic.

Put your emotions aside and turn on your brain. Your investments are not your sweetheart.

So, when (notice there is nor “IF”) the value of investments falls, don’t jump immediately to sell them. Yes, the news comes, but just stay cool because it can be temporary. Do you know how many investors lost their fortune reacting impulsively?

It is painful to watch at stocks are falling in price, that’s true. But take a closer look at historical data of stock you hold. Maybe you can notice some patterns. When and why their value has had fallen before?

When the value of investments is falling, identify the pattern

Yes, it is very important to identify the pattern.

Past performances don’t guarantee the future behave but at some point, you will figure out the causality. Most stocks respond to market movements in a logical pattern. And you’ll be ready for the next move.

Besides, just looking at the charts can make you more nervous. You must have more information. You must have a clear picture of how the whole industry is performing. Industry in which your beneficial company is working, of course. You are holding its stocks and you have to know something about the sector it is working on. What is about the overall market appearance, what is happening there? Is the market volatile maybe? Moreover, did you read at least one quarterly report from the company whose stocks you hold?

The value of investments is falling don’t get panicked

Okay, let’s talk about this a bit more. Let’s assume you have all the info. So, what would you do with this?

The key is to recognize what forces the value of your investments to fall. If you cannot identify the reason behind, you should exit your position.

Sometimes the gap in the market can cause the value of investments to fall. Or it can happen due to the market’s weakness. If you find this case, you should stay in a position. It isn’t rocket science, it is just market: supply and demand relationship. If you are on the market it is reasonable to have a diversified portfolio, right? This is very important, especially in today’s market. A diversified portfolio will produce a positive return to you. But more importantly, it will allow you to have a return higher than the inflation rate is. So, if you are a long-term investor, just stay cool when the value of investments is falling. Your investment horizon is what is really important.

Temporary drops shouldn’t concern you.

The question is, what is the main goal of any investing strategy? To gain returns bigger than the overall market for some level of risk. It is always a good concept to check how the performance of your stock is in comparison to the overall market.

But what if the value of investments is falling suddenly and it different from past performances? The company is still good as it was when you bought your stock! Think! Maybe the reason for the value of investments falling is exactly there. The company is too good and maybe many investors are willing to buy a stake of its shares. If you are not among them, leave your position and invest in some other company.

29th August 2019
Who Is The Richest Person That Ever Lived?

It is always an intriguing question. Here is what Traders-Paradise found.

By Gorica Gligorijevic

Some of you may think that Bill Gates is the richest person ever lived. Well, he is one of the richest today with $77.8 billion. Also, there was much fanfare when Amazon boss Jeff Bezos was marked as the wealthiest person ever lived with his $105.1 billion fortune. But it is a small part of what some other man held.
That title is assumed to go to Mansa Musa. Who is Mansa Musa?

He was a West African ruler with wealth valued at $400 billion. This isn’t a fairytale and you will see why.

“Contemporary accounts of Musa’s wealth are so breathless that it’s almost impossible to get a sense of just how wealthy and powerful he truly was,” Rudolph Butch Ware, associate professor of history at the University of California, said the BBC.

And Jacob Davidson wrote about the African king for Money.com in 2015 Musa was “richer than anyone could describe”.

Do you know who were the greatest stock traders of all time

Why Mansa Musa is the richest person that ever lived?

His wealth is estimated at $400bn, but historians admit that his wealth is difficult to pin down to a number. That’s how huge it was.

Mansa Musa was born in 1280 in a family of rulers. His brother, Mansa Abu-Bakr, ruled the empire until 1312 when he abdicated and went on an expedition with a fleet of 2,000 ships and never returned.

Mansa Musa inherited the kingdom of Mali. He was an impressive ruler.

The kingdom of Mali was from the Atlantic Ocean to Niger, with parts of Senegal, Ivory Coast, Mauritania, Mali, Niger, the Gambia, Guinea-Bissau, Burkina Faso, Guinea covering almost 2,000 miles. That large landmass gave great resources, for example, gold and salt.

According to the British Museum, under Mansa Musa ruling, Mali possessed almost half of the Old World’s gold. And everything belonged to the king.

“As the ruler, Mansa Musa had almost unlimited access to the most highly valued source of wealth in the medieval world,” said Kathleen Bickford Berzock, who specializes in African art at the Block Museum of Art at Northwestern University, to the BBC.

“Major trading centers that traded in gold and other goods were also in his territory, and he garnered wealth from this trade,” she figured.

The empire of Mali had so much gold that Musa was the world’s greatest gold producer and seller.

Who was Mansa Musa?

To meet one of the five pillars of Islam, Mansa Musa made a pilgrimage to Mecca. This adventure cost huge amounts of cash. This “Lord of the Mines of Wangara” had to travel stylish and luxurious. The 60,000 big caravans had 1,000 helpers, 100 camels with gold packages, countless musicians for Musa to enjoy, and more than 500 slaves.

Mansa Musa came back from Mecca bringing several Islamic teachers. Among them were direct descendants of the prophet Muhammad, for example, and an Andalusian poet and architect, Abu Es Haq es Saheli, who designed the famous Djinguereber mosque. Musa allegedly paid the poet 200 kg in gold. Counted today, it is about $8.2 million.

Besides his legacy, Musa’s property is estimated to be worth an inconceivable amount, to around $400 billion. According to Time magazine: “There’s really no way to put an accurate number on his wealth.”

Some believe that Mansa Musa’s unbelievable fortune may have been somewhat overstated. Nevermind, he is still the richest person that ever lived.

Don’t tell to the Rothschild Family.

28th August 2019
Spelling Errors Cost Investors Millions Every Year

Is really possible that spelling errors can cost investors millions? Here is the full story.

By Guy Avtalyon

You entered the stock market but still make mistakes. This time spelling errors. Okay, you are not the only one. Spelling errors cost investors millions every year. re you happy now? Of course not.

As we said billion times when you enter the stock market you have to be very aware of which company you want to invest in. What Traders-Paradise wanted was to present you with a wonderful world of investment. And you can find a lot of articles that we offered numerous examples, from how to choose the broker to how to calculate your profit. A lot of times we tried to teach you how to check the company in the market. And how important their ticker symbols are.

What we saw is that you invested in FORD!

WOW, good choice indeed. But did you really want to invest in “Forward Industries” or “Ford motor”?

Under this ticker symbol, FORD is “Forward Industries” not the car company. What, you already invested there? You should be more careful. Ford motor is under the ticker (F), just F.

Take care of it because Ford Motor will publish its Q3 earnings on October 24th.

Why investors are losing millions every year?

If you did invest in FORD, the only problem is that you invested in a manufacturer of “carrying cases for medical monitoring systems” worth $10 million, so don’t expect too much from them. Experts calculated that this error costs investors about one million in trading only for the fees.

Where is the lower or lost return? Can you calculate that?

A lot of those investors usually don’t even correct this mistake until it is too late. They still think they made a good investment until they see in the quarter or annual reports. Some of them notice the error several days after and try to sell their stocks, but is the game with poor results. Actually, it is very rare they can bring the invested money back.

So, let’s see again where you can make similar errors?

For example HP. Do you really think it is a giant company, Hewlett Packard? Nope! It is the ticker symbol for Helmerich & Payne. You are free to check their official website:

“H&P is the leading U.S. unconventional driller, and our drilling experience spans the globe. Our company currently owns and operates land rigs across North America, South America, the Middle East, and Africa, with offshore rigs in the Gulf of Mexico.”

Do you still want to invest there instead of Hewlett Packard, it trades under (HPQ)?

Also, Hewlett Packard Enterprises, you will find under (HPE).

Would you like to invest in ZOOM? Yes? That is another mistake. It is an unclear Chinese wireless business. We suppose you wanted to invest in ZM which is $25 billion worth video conferencing platform.

Spelling errors cost investors millions

For example, you want to invest in Twitter. What is their market ticker symbol? TWTR or TWTRQ? Don’t invest in TWTRQ, it bankrupted. Yes, several years ago, in only one year, during 2013, it’s stock rose1000%. What a market star! But a shooting star. There is no more this home entertainment retailer.

But TWTR is still there ready for you to invest in.

There are more.

Two professors at the Rutgers School of Business-Camden discovered that over half of listed US companies deal with a “meaningful part” of their tickers with a different company.

It can be in a different industry and, also, with huge differences in market capitalization. Those professors found almost 250 so-called, company pairs that can lead you to wrong decisions. Professors claimed, “250 company pairs where the possibility of confusion is particularly high.”

For example R1 RCM (RCM) vs RCM Technologies (RCMT) where market cap difference is 3,215%

The problem appeared due to a phenomenon known as “fat finger trades.”

So, take care, avoid spelling errors that cost you a lot of your hard-earned money.

Also, the robo advisor can make mistakes. Yes, of course. The inputs are given by the people and the people make mistakes. The algorithm will follow inputs without the question. You can be sure.

What we want from you is to “spellcheck” your investments. Proofread the tickers from your preferable company and make corrections on time.

25th August 2019
How is Beyonce as an Investor – Celebrity Investors

2 min read

Beyonce Knowles-Carter

Beyonce Knowles-Carter is a singer. But, also, she is a worldwide brand. You can find her name on fashion marks, cosmetic industries, and Pepsi commercials.

Her career began with girl-group Destiny’s Child and her destiny is incredible. Beyonce became one of the most popular singers in the world. She earned 23 Grammy awards. Also known under the nickname, Queen Bey.
She is a businesswoman too. Beyonce owns a strong portfolio of real estate in the US and all over the globe. Most of them she owns in partnership with Jay-Z, her life partner. But some investments she holds by her own.

Beyonce invested in tech.

Just like Ashton Kutcher, Queen Bey is interested in the tech world. Beyoncé started the management company Parkwood Entertainment that have invested $150,000 into Sidestep. It is an app for purchasing concert merchandise. In the beginning, Sidestep was selling t-shirts and posters for Queen Bey. After some time, when Beyonce saw its profit and potential, she invested in Sidestep. According to Sidestep’s CEO Eric Jones, the idea of “a tiny scrappy startup doing the biggest tour in the world” was great.

That was the first step as an investor

Then, 2015. Uber came with an offer of $6million to perform on the company’s event in Las Vegas. But Beyonce had an offer too. Instead of cash, she asked to be paid in Uber’s shares. After Uber went public that $6 million were turned into to profit $300 million from her shares.

Beyonce isn’t the only celebrity who invested in this company before it got in IPO.

Apart from profits in the musical industry, Beyonce surely recognizes the point of diversifying her investment portfolio. Her investments are also in Dereon Clothing, deals from General Mills, L’Oreal DirecTV, Pepsi, Samsung, Ford, American Express, etc. Queen Bey released: “I have a lot of property. I’ve invested my money and I don’t have to make any more, because I’m set. I’m now able really to be free and just do things that make me happy.”

Beyonce as an investor, not only as a singer or actress, proved that she is not just a hype.

Together with Jay-Z, she is part of Hip Hop’s first billionaire couple into several investments, revenue, and endorsements.

Beyonce as investor thinks ahead

She made about $4 million from the 2018 Coachella Valley Music and Arts Festival. She was the first African-American woman to headline the festival. Her performances were a tribute to the culture of black colleges and universities but also inspired by black feminism.

She also signed a $60 million worth deal with Netflix which brought Homecoming, a documentary about that show.

Beyonce supported to start a vegan food company 22 Day Nutrition. She’s also a stockholder in streaming service Tidal.

Queen Bey is widely recognized as a smart business icon. She has earned hundreds of millions of dollars with conservative investments. And she spends her money on extravagant gifts like Bugatti Veyron Grand, private jet, $88 million purchase of a Bel Air mansion, etc. She earns, she spends.

Musicians aspiring to get rich off royalties are fooling themselves. The real money comes from smart investing.

Beyonce Knowles-Carter is a smart investor.

23rd August 2019
Is it Possible to Predict Stock Market Movements?

How is possible to predict stock market movements. Read to the end.

By Guy Avtalyon

Different gurus and many experts try to predict the stock market movements. Actually, they try to explain the stock markets by using many different theories. Sometimes, stock market predictions are more interesting than the last season of GoT which isn’t so hard, right?

Even if you are not a trader and you never traded stocks, the possibility to predict stock market movements is exciting. Imagine that you can do so. How much it can be beneficial to your financial status?

Real estate can be failed at its lows, money can be removed from mutual funds, anything can happen.

What we have to do when the markets start to turn around?

Maybe to invest in gold, oil, some other tangible assets? To leave crypto? To sell stocks?

Yes, when things rise to go bad, relocating money into tangible assets is a benefit. But is it possible to know the danger is ahead before it happens? How to successfully predict the stock market movements consistently over time?

Do you know the maxim that “past performance cannot predict future success”? The paradox of that saying is that it will come up to you just after your broker tells you how great that investment was acting in the past.

Wink-wink, bro! At some point, the future can be similar to the past. Even the same.

Stock markets go upward, stock markets go down

Why do stock markets do that? Well, it is easy to explain. When more buyers than sellers are in the market, the prices will go up and vice versa. When more sellers than buyers are in the market the prices will go down.

What provokes people to buy and sell? More often it is connected to the emotions than to logic. And here we come. The emotions are unpredictable. The stock markets are under the emotional influence, so they are unpredictable too.

And you may think it’s useless to try to predict stock market movements. Or they are created to be unpredictable. It is a partial truth.

We found this on investmentwarrior.com:

“If today’s market is up…there is a 73% probability of tomorrow’s market is being as well, and a 27% probability that tomorrow’s market will close down.

If today’s market is down…there is a 62% probability that tomorrow’s market will also be down, and only a 38% probability that the market will close higher.

Historically the market has advanced on 58% of all market days, demonstrating its overall historic upward bias.”

The future of the stocks in the market is a complex problem. Too many variables have to be calculated. Quantitative models, historical patterns, all failed.

The best prediction tools are our brains. It is a damn good forecast tool. But a human intellect cannot solve a mathematical equation so fast as a computer can. The human brain isn’t even close to the simple calculator. But the human brain developed powerful tools, machines, and algorithms. They can calculate very fast. Some of them will solve the most complicated formula in a sec.

Why predict stock market movements

Predicting stock market movements is possible. It isn’t a waste of time.

Experienced traders being a witness of a lot of market’s ups and downs, believe that the market will be equal, one day.

Let’s go back to the predicting tools.

There is something called “algo trading”. With AI you practically can have the possibility to make a profit almost for sure. How successful will you be, depends on the inputs you add to algo.

Can you predict how the bulk of traders would respond to some events? It can indeed be completely unpredictable.

Who want to predict stock market movements

They need to be sure they are investing in safe assets. Also, they have to know they will have fast and huge returns.

Here we come to algorithms. How? The historical data are extremely important for trading and investing, for predicting the stock market movements. Are you ready to spend days, weeks, or months to gather valuable results? Why would you torture yourselves? Instead, you can use some good stock predicting tool, very fast and reliable to calculate the final result, to show you where to invest, when to enter, and when to exit the trade.

Traders-Paradise is preparing – Find the Best Exit Strategy Algorithm

Traders-Paradise chooses to develop this tool because the exit strategy is maybe more important than anything in your trade. How is that? While you have many strategies and choices to enter the trade, the exit of trade can be done in only two ways: with lost or with profit.

To know when to exit your trade you will need a lot of data. The tool like mentioned one is the easiest way to obtain them. Also, at the same time, similar tools are going to help you to predict the stock market movements. This tool will estimate how far the price will move and ensure that your profit potential exceeds your risk. Without that data, it is impossible to predict when to exit the trade.

Traders-Paradise is preparing something for you from that field. You will see it soon and you’ll be able to use it. It is very useful and impressive. But, the best news comes last. You have to wait for a while but stay tuned

22nd August 2019
Ashton Kutcher Investor – Celebrity Investors

3 min read

Ashton Kutcher is one of the most popular actors of the 21st century.

Everyone knows his role as Michael Kelso on the well-known sitcom That 70s Show. But in real life, Kutcher isn’t even like Kelso. This actor and model is at the same time, a very successful investor.

Ashton Kutcher is an investor too.

He builds a financial portfolio worth more than his acting career has yielded to him.

Ashton Kutcher’s current net worth is approximately $200 million. According to contracts available, about $25 – $30 million he was able to earn from his acting. The rest of his wealth comes from tech investments.

Ashton Kutcher’s earnings from movies & TV

Ashton Kutcher has surely earned a lot of money from his acting. But the majority of his income doesn’t come from that. Unfortunately, we have some information available, but most of it is private. Okay, we know, for instance, Kutcher had a role in the movie Valentine’s Day that earned $110.4 million.

The movie Dozen earned $136.6 million, No Strings Attached and Killers earned $70.6 million and $47.0 million earned at the box office.

There is a lot of chance that Kutcher took a big part of the earning. Also, he was paid $800.000 per episode in the sitcom Two and a Half Men. And so that and so long. The information about how much an actor earned for a film or television role is private for many reasons. Even the information is made public, it is still difficult to tell precisely how much was paid. Let’s say that from the total net worth of Ashton Kutcher, around $30 million comes from television and movie roles.

Ashton Kutcher as an investor

This guy is fairly unusual in the acting society. He has made clever investments and brought the attention of the investment community. Ashton Kutcher investor is very interested in science and technology. In the first place, the high-tech industry is very interesting to him

One of his investments had a great influence on rideshare. Yes, you are right. Kutcher with his parents invested $500.000 in Uber on its beginning. Today, that $500,000 investment is worth $50 million.

Kutcher, with Guy Oseary and Ron Burkle, founded a company named A-Grade investments. They invested $30 million and turn it into more than $250 million. According to Kutcher, he and his two other buddies like to invest in tech companies that show promise.

Just to mention a few, they already have invested in companies like Uber, Spotify, Airbnb, Muse, Soundcloud.

The interesting thing about Ashton Kutcher is that he is using Uber’s service. Practical? Marketing? Well, everything is possible but the truth is that he made a smart investment.

A-Grade investments own some other companies too. We will point several: Nest, Gyft, Katango, GroupMe, Bufferbox, Summly, Socialcam, Interaxon, SmartThings. The fact is that A-Grade, owned by Ashton Kutcher, Guy Oseary and Ron Burkle, has approximately 100 various important investments.

Kutcher is still a young investor but he has a lot of years ahead to continue his investing.

He has also co-founded the investing tool Acorns that is connected to PayPal. The main benefit is that connection enables people to transfer their money once a month into the Acorns portfolio. Acorns portfolio further provides the software which buys investments shared with other investors. Why this is a benefit? Using this tool people can build a portfolio with very little money.

The Net Worth of Ashton Kutcher

Ashton Kutcher’s net worth is about $200 million today. His portfolio is something that even more experienced and an older investor could boast. Also, with his wife, Kutcher is dedicated to charity.

We can admire him for his acting, but the true admiration comes for his sense of business. Respect!

HERE you can find his advice about investing.

20th August 2019
Who is Satoshi Nakamoto?

Who is Satoshi Nakamoto? This is the beginning of the fairytale.

What Nakamoto revealed about himself in Part 1 of “My Reveal” is disappointing.

This revelation announced with fanfares and bongos but looks like another marketing campaign. First of all, it is structured as billion call-to-trust-me campaigns or buy-this-shit-because-I-know-you-are-stupid.

This self-declared Satoshi Nakamoto overpromised. And the most interesting part of all this, no one in the crypto ecosystem isn’t surprised.

We still don’t know his/her real name nor we can see the photo. Will it come with Part 3? Or maybe never?

This “big reveal” is more a “big lie” because we are still far away from knowing who is hidden under the name of Satoshi Nakamoto.

All we know is that his nickname is Shaikho and that is Pakistani name. He kidded that he’ll reveal his real-life identity on August 20.

That should be Part 3? Right?

Who is Satoshi Nakamoto?

Let’s see what this Satoshi Nakamoto revealed about himself.

Under the title “My Reveal”, this “Satoshi” gave his alleged origin story, some fairytale about the Bitcoin’s name background. Now, we know his ideology (a very important matter for Bitcoin’s existence, indeed). Oh, yes! This person, or whoever created that blogpost, pointed the relationship to Bitcoin pioneer Hal Finney (already known fact, so nothing new).

“Satoshi” now allegedly lives in the U.K. and he is the son of a banker who had worked at a Pakistani multinational bank. And his name is unknown too.

Some of his/her claims are so similar to the declarations of Craig Wright, the other self-proclaimed Nakamoto.

For example this part from “My Reveal”:

“Today, when Bitcoin is understood by the advances of technology, but at the same time is being hijacked by greed, I feel I have a duty to work hard and make my creation better and take its vision to the next level.”

And this so romantic tale about how Bitcoin got its name. That has to touch our souls, right?

Take a look at the logic behind this reveal. Cryptocurrency analyst Ledger Status noted that as Satoshi was a master of logic, and the only way he would truly reveal himself is by signing the Bitcoin genesis block.

Also, the @BTC Twitter handle stated that “Anyone that tells you they are Satoshi Nakamoto is a scammer”.

Do you remember how a very alike “reveal” happened but was nothing more than a stupid marketing campaign?

On Friday, a lot of paid press releases were issued arising from a company named Satoshi Nakamoto Renaissance Holdings. A company’s big “reveal” happened on Sunday, August 18.

And we got it. Part 1 of “My Reveal” by still self-proclaimed Satoshi Nakamoto. We yet don’t have any reliable evidence that it is he or she, the creator of Bitcoin.

We are suspecting that part 2 will be something better and provide us a closer insight at who Satoshi Nakamoto is. First of all, we have one simple question: How he/she has lost access to the coins and cannot move them?

What if all this is another marketing campaign with the foggy goal? Maybe some money-need can be behind this. What do you think?

Okay, we will wait for the end of this fairytale. Maybe, they’ll be happily married.

19th August 2019
The Truth About Forex Trading

4 min read

(Updated November 2021)

Traders-Paradise got (and still get) a lot of emails with the questions: What is the truth about Forex trading? or Can you tell me the truth about Forex? or Tell me, please, is Forex profitable or it is a myth?

Okay, people, it’s time to tell you things that nobody will ever tell in one place.

First of all, the vast websites you visited searching for the answer to the question above, are sites with some Forex offers. Doesn’t matter if it is a brokerage, exchanges, system, signal providers, strategies, platforms. They all have one common interest: to present you only THE BEST. Their goal is to sell you their products. There is nothing bad in their goals and intentions, but you must be aware that some things will always stay covered and hidden from you. Until you build your own experiences.

We are giving you the shortcuts because all of us were struggling while we were novices in Forex trading. Actually, our struggle begins before we enter the Forex trading. Just thinking, measuring, asking, searching is struggle itself. And, still, you will find several sites or people ready to tell you the truth about Forex trading. Just because there are some characteristics to trading that the majority will never like to talk about.

And yes, those features of Forex trading are ugly. Some are evil and scary. But Traders-Paradise’s opinion is that we have to talk about everything, doesn’t matter if it is nice and affirmative or ugly and not-so-nice subjects.

We will share what we know to answer you what is the truth about Forex trading.

Just to give you a clear path to decide if Forex trading is for you or not. The benefits you already know, you can make a fortune trading Forex but we want to show you the other side of the same medal. One thing you must keep in your mind: none of us is going to tell you to give up.

Based on our personal experiences, the most common misconception is that you have to be some math geek if you want to trade Forex. Yes, it is beneficial if you can understand the math behind your trades but you don’t need to be genius for that. This has to be said, a lot of very successful traders never even started high education. Have you ever heard about some Forex trading college or university? Of course not. Because if you want to be a successful Forex trader you must have particular skills. You don’t need a diploma. Speaking about those skills, for the profitable Forex trader is more useful to be a strong personality, not to get panicked when trades go in an unexpected direction. If you are nervous and without self-confidence, then Forex trading isn’t for you.

Yes, numerous and complex trading strategies are out there.

And indicators, charts. OMG, Forex is for Nikola Tesla, not for me!

Just stay calm! The ability of self-control is more important. Forex markets are endless tension. Your nerves are what is really in a count, not your math knowledge.

Traders-Paradise will reveal you a secret. The winning traders very often practice one trading system. They learned that system, tested it on some demo account for several months, started the real Forex trades and VOILA! Their result is verified, the system is working, they have profit, so why change anything?

The other thing we would like to share with you is the fact that in Forex trading your entry and exit points are irrelevant. Sound like a blasphemy, right? Imagine us, we are laughing! Because it is the truth about Forex trading. How the mentioned points are important if you can place your trade while sitting in a restaurant with your friends or walking. All you have to do is to take your phone in your hand and start to trade, whenever you want. Sound crazy?

Wait, there are more!

We have heard so many times that humans generally are not good at trading.

The truth is that some are better.

Being a successful trader doesn’t mean that someone is naturally predisposed for that. That isn’t something the mother will give you with a birth.

What you have to do is to start thinking that you have to fight with the market. Just like in flight or fight situation. Imagine that the market wants to still all the money you placed there.

What does your brain tell you? Flight!

No, never if the Forex trading is for you. Your brain should command you – FIGHT! While you are sitting in front of your computer, you have to be the fighter. Or you will gain the loss. Whoever loses a profit, gets a loss. (That is wise, we should spread this sentence all over the world.)

When we are pushing the buttons to place our trades, actually we are pulling the triggers. On our brain’s command. And here is the trick. Our brains will send us variously commands. That’s why you must have a plan. It is a battlefield, you cannot just run around and shoot. That’s when you are afraid or you are disoriented.

To have winning trades you must have a logical plan while trading Forex. If you don’t, you are 100% losers.

One of the biggest lies about Forex trading is that some traders keep 100% successful trades.

No one can ever guarantee 100% success rate, no person and no algorithmic application

This truth about Forex trading you will find nowhere else:

Do you know how some brokers or signal providers, or strategy sellers want you to believe that they have a magic weapon for the markets? That’s a lie. They are lying to you. Trading isn’t so easy.

It may take years until you be able to gain a permanent profit from trading. Our aim is not to frighten you, but this is the truth. You will need months and years of analysis, testing and error corrections to be professional traders.

The biggest truth about Forex trading is that you don’t need superior software or multiple trading screen setups to be a prosperous trader. This is something that no one will tell you. Especially trading websites. All you need is a device with full access to some free charting app.

Remember, the most powerful tool in your trading armory is your brain, not trading software. Some very simple and cheap but user-friendly software can provide you more benefits than a robust one. Remember this.

Traders-Paradise revealed you the most hidden secrets about Forex trading and told you the whole truth and nothing but the truth.

Happy trading from Traders-Paradise Team!

Find us on Facebook
Follow us on Twitter

19th August 2019
Tom next what is it – explanation with examples

3 min read

by Gorica Gligorijevic

Tom next is a short-term transaction in foreign exchange when you buy and sell currency together over two separate days. Actually, it is a business day we are talking about. One day is tomorrow in the sense of one business day. The following day in sense of two business days from today is known as the spot date.

The main aim of this transaction is the traders and investors keep their position and are not forced to exercise real delivery.

So, suppose you already know that in the Forex market, each transaction carries an attached value date. That is the date when buying or selling activities will hit their value. The value date happens 2 business days after the transaction is executed. The profit or loss generated by the buying and selling is settled into a particular account.

To be more clear, when you take a position in a currency it is expected that you will deliver the currency in two days. But, a lot of Forex traders are gambling and don’t even think of taking delivery on the currency.

That is the point where tom next comes to the scene.

If you open and close a position in the same business day, the value dates will be identical for every transaction. Your positions will not be carried over into the next day. Your payment has already been accomplished and will complete on the same value date.

In currency trade, delivery happens two days after the date of the transaction. Tom next trade occurs because the majority of currency traders want their positions to be rolled-over daily. Their goal is not taking delivery.

The purpose of tom next is to restrict traders from having to take delivery of currency and keep their forex positions open to the next day.

Like stocks, forex trades end when the trader takes delivery of the asset. In forex, the delivery day is two days after any transaction. That is the spot date, but tom-next can be applied to prolong the trade after this date. So, the position will be extended by using tom next and you’ll be able to swap any overnight positions for an equal contract that begins the next day. The difference between these two arrangements is the tom next adjustment rate.

So, this simultaneous transaction is a Forex swap.

Depending on what currency you hold, you’ll be charged or earn a premium. If you are holding high yielding currencies you will roll it over at a more pleasant rate (minimum is the best) because of the interest rate differential. This differential is the cost of “carry”.

For example, if two currencies have the same interest rates, they will be swapped at an identical rate.

If you choose not to roll over your position you will be forced to take delivery of that currency. Well, this is unusual, so the tom next transaction is basically the prolongation of your position.

The policy of rolling a position over is more valuable in commodities trading. If it is not finished, you will be left with the delivery of the underlying assets.

How does it work?

Your broker will swap or rollover your position for a new deal that starts the next day. The final result is an adjustment, higher or under, to the opening price for your position on the next day. You will see a tiny difference in the opening price from one day to another day.

Your broker will debit or credit your trading account depending on the change in interest rate. Let’s say you are long with a currency with a higher interest rate.

What your broker will do?

Your broker may credit your account with interest payments. However, if you are long with a currency with a lower interest rate, your broker will pay interest payments from your account.

A tom next will not be applied if you close the position the same day before 17:00 EST. How? There is no overnight delivery involved.

How do you calculate tom next?

The calculation is based on the closing level of the former position, and the change in interest. Swap points plus any interest on your unrealized profit or loss will produce the change on your account.

Rollovers that appear on Wednesday will have an added two days worth of interest. You know, for the weekends the banks are not working, so the broker will automatically credit or debit your account.

Tom next example

For example, you are long USD/EUR at rollover and the average entry price is 120.00. In this case, you select to hold your position. Let’s say, just for the purpose of this example, the quote for the tom next swap points received from the bank is 0.025 – 0.012.

What will happen? Do you remember, this is a simultaneous transaction?

A rollover, your broker will sell and buy USD, and at the same time buy and sell EUR. The final result is that you get a bid rate of 0.012 in your favor. The average price of your position will diminish by the number of Tom-next swap points.

The adjusted price of your position will be

120.00-0.012 =119.988

Tom next adjustment is used to calculating the overnight funding charge on your trading position. You have to pay it if you want to keep your trade open for more than one business day.

The rates can be changed on a daily basis because they are based on the underlying market price.

If you want to buy a currency with a higher interest rate, you will get an interest payment. Hence, if you choose to buy a currency with a lower interest rate, you will pay interest. This payment is known as the cost of carry.

You might also like:

>>> Best Trading Strategy Without Indicators In Forex

>>> How to Use Technical Indicators to Analyze Stocks?

>>> MACD Indicator – Moving Average Convergence Divergence

>>> Indicator Trading And How To Use It

>>> P/E Ratio An Quick Method to Value a Stock

18th August 2019
Short Selling For Profit

What to do with stocks when the price starts to decline? Bet that a stock will fall more.

By Guy Avtalyon

Short selling for profit is a trading strategy that attempts to profit from an expected decrease in the price of a security. Basically, a short-seller wants to sell at a higher price and buy at lower.

How does short selling for profit work?

Let’s you are a trader and you have some information that some stock will decrease in value by the expiration date. Ofc, you don’t hold that stock but you can borrow it from a broker. For example, you borrow 100 stocks at $10 market price. And you open the position, meaning you want to sell them at market price by their expiration date. And you succeed. Then you close your short position and sell your borrowed stocks for $1,000. But before you give back that 100 stocks to your broker you are betting that their price will decrease in value before the expiration day. That happens. Now, you are buying these stocks at a lower price, it is called covering the short position.

Let’s say, the price of your borrowed stocks declines at $6 each.

You sold them at $1,000, bought them at $600. Return 100 stocks to the broker and you pocket $400.

(100x$10) – (100x$6) = $400

The risk in this kind of trading is literally unlimited because the price may rise and rise to infinity.

But, the profit can be huge, also. The previous example showed a short-selling for profit. Well, by using short selling you may gain loss too.

Example of making loss while using short selling.

The vice versa case is when stock price increase in value during the time while you are holding them.

Let’s say their market price rose at $14 each and you are holding 1oo stocks. The equitation will be

$1,000 – $1,400 = – $400

You borrowed those stocks at a $10 market price. But despite your expectations, the price increased which means you made a wrong bet. But you have an obligation to return those to the broker, hence you have to buy them back at that higher price. In this transaction, your loss is $400.

Short selling for profit is a method for traders to benefit from a drop in a stock’s price.

Short selling is only possible by borrowing stocks. The problem is they are not always available because when they are you may be faced with a crowd of other traders that already massively trade them.

Is short selling for profit risky?

The short-selling for profit can be risky and questionable. When a huge number of traders choose to short some stocks, their actions will make a great influence on the stock price. With such big traders’ interest, the price will decline sharply. That is not a good situation for companies. Their market value decreases. Sometimes the markets forbid short-selling, especially during the economic crisis.

As I said, short selling is risky for plenty of reasons. You can make a great loss if the stock price increases instead to decrease.

The other reason is that the sharp increase in selected stock may cause traders to cover the position all at once. Moreover, short-covering usually force the price to go up. Then you have a situation that more and more short-sellers are covering their positions and such stock is grasped in a so-called short squeeze. So, like a chain of unfortunate events, right?

The main purpose of short selling for profit is when you borrow the stocks from the broker to sell them instantly and buy them back at a lower price. And return them to the broker. When the whole process is finished you should profit from the difference in stock price.

Risks of short selling

Short selling involves a magnified risk. When you buy a stock you can lose only the money that you have invested. For example, if you bought one share at $300, the maximum you could lose is $300. Stocks can fall to $0 and that is the maximum, there is no stock that may fall below zero. The maximum in your potential loss will stop at your initial capital invested.
In short selling, you can potentially lose an infinite amount of money. Stock can increase its value for an infinite time to an inconstant price. So, you’ll have an infinite loss.
For example, let’s say you enter a short-selling at $200, and suddenly the stock price increases by 300% to $800. You’re obliged to buy the stock back and return them at $800, essentially losing 400% of your capital. actually, you are in incredible debt.

Just be careful when you bet against stock price.

16th August 2019