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.

Bitcoin dominance rate – Why some are concerned?

Why this question about the Bitcoin dominance rate now?

By Guy Avtalyon

The bitcoin dominance rate is a very important indicator of crypto market preferences. It is the measure of how Bitcoin is important in the crypto world. To know the Bitcoin dominance rate observe its market cap as a percentage of the entire market cap for all cryptos. The traders and investors pay a lot of attention to it.

Okay, it isn’t shocking news that Bitcoin is dominant. Everyone knows that. It is here for a long time, it was the first, it has attention like a rock-star.

So, why this question about the Bitcoin dominance rate now? The alarms are a turned-on because of Bitcoin’s current climbing.

In the crypto markets, it covers about 70% of the market cap as a whole. The same level was seen in April 2017.
So, there we have a concern on the scene!

Some are afraid that this is a sign that the bull run is close. That will accelerate bitcoin’s dominance to over 90%. The existence of any other crypto would be doubtful. That high dominance rate would destroy the others.

The altcoins are on the edge of return, think others. Or no-return, the opponents are kidding. As always, when it comes to data interpretation you can see and hear literally everything and anything. But to be serious, the bitcoin dominance rate may show us many things. Even the increase isn’t always good news.

Why increasing dominance rate isn’t good news?

Well, Bitcoin’s dominance rate is not an independent measure. It is related to momentum, inclination, confidence. In one word – popularity. Bitcoin is the most popular cryptocurrency without a doubt.

The price of Bitcoin is the measure of its reputation. On the other hand, dominance is related to bitcoin’s relationship to other cryptos. There is one trick: the dominance may increase when the price is going down and vice versa. To repeat, it isn’t an absolute measure.

Bitcoin’s high dominance

It could be a double sword.

Bitcoin is an extremely volatile asset and risky this attribute often led investors to less risky assets and, can we say, safer. But, on the other hand, thanks to its popularity the whole sector of crypto assets may benefit if there are more investors in Bitcoin.

This new increasing Bitcoin dominance is proof that investors’ sentiment that this crypto is relatively safe to invest in. The sentiment indicator is just a current opinion, be careful with that.

How can you be sure the trend will continue? With what energy? What sentiments do is give power, to push things to go further, to build a chain of very convinced investors and traders who are buying bitcoin.

The added importance is market trust, particularly at the initial steps of institutional engagement.

Big traditional funds are not worried about the relative value of one token related to another. Their consideration is their portfolio. They will decide what is better to invest in, crypto, or some other asset. Having that in mind, it is more likely they will invest in Bitcoin if they want to have crypto in their portfolios.

Why is that?

Bitcoin has the liquidity, active derivatives market and is registered in most jurisdictions. With the rising dominance rate, Bitcoin has the opportunity to boost investors’ trust in the overall crypto market.

But nothing would last forever.

Prior run-ups in the dominance rate were followed with a change altogether with investors’ attention to new choices. That is a calculation. When market leaders grow extremely, wise investors take profits and re-invest in other winning assets. The last bull market noticed bitcoin’s dominance decline from above 85% to under 40%. This time it is something else.

How? During the previous bull market, we had plenty of new tokens. Where are they now? They are not exciting anymore? No, they are not existing anymore.

Moreover, the interest of institutional investors with a focus on bitcoin will launch bitcoin’s dominance to jump even more.

Stay tuned and keep your eye on what is happening behind the stage. Traders-Paradise has a fantastic example of how to MONETIZE BITCOIN

15th August 2019
Don’t buy stocks on a dip

Many say the strategy is to “buy a dip”, but can it really lead to success? There are so many opposing opinions.

By Guy Avtalyon

Don’t buy stocks on the dip says UBS Group AG. It is a Swiss multinational investment bank. While analysts at Goldman Sachs Securities Division advised: “Buy bitcoin on the dip” for stocks it is a straight way to a loss.

“Buy the dip” was a good plan for the bull market, but analysts at UBS addressed to stock investors:

“A world where leading indicators are accelerating is generally one where a correction in equities is an opportunity for investors and ‘buying the dip’ gets rewarded. In contrast, today’s backdrop with PMIs (purchasing managers indexes) in the low 50s and rates arguing for further declines often results in buying the dip being a losing proposition,” addressed strategists Francois Trahan and Samuel Blackman, in a Tuesday.

This announcement is quite strange because dip buyers are still making a profit.

The Dow Jones Industrial Average DJIA, +1.44% increased more above 370 points Tuesday. This increment came after the U.S. said it would pause imposing tariffs on some imports from China.

The S&P 500 SPX, +1.48% climbed 1.5%. The Dow is depressed 2.2% for the month, and the S&P 500 is 1.8% below in comparison to the previous month.

Trahan and Blackman have a different interpretation of the current market conditions.

What is buying on a dip

It is a losing proposition.

They said the historical records covering the last nine economic cycles, reveals that buy-the-dip works the best when leading economic indicators, like PMIs (private mortgage insurance), are accelerating.

The analysts said that buying-the-dip had a virtually excellent history. They call it the “risk-on” period. However, it is followed by the “risk-off” period. When PMIs fell under 50, labeled the “risk-aversion” period, dip-buying has poor benefits, they said.

Don’t buy stocks on a dip the analysts said

They said that defining the period of the cycle is just one piece of a three-item checklist. They also explained the perfect risk-reward scenario. It happens when the “risk-on” period is followed by interest rates, that carries an increase in the price/earnings ratio, so the earnings opportunity is promising.

Today, the potential dip buyers are 0-for-3, they explained. In other words, we are witnesses of the “risk-off” period, but the companies earnings opportunity has declined.

They also estimated interest rates.

They were looking at yields with an 18-month lag.

Their conclusion is: “the path laid by interest rates 18 months prior to today shows that there is now tightening in the pipeline, and it’s more likely we experience multiple contractions than expansion in the months ahead.”

Multiple expansion points the readiness of investors to pay more for a dollar of earnings. And they pointed out that the risk/reward for buying the dip “extremely poor”.

As you can see, analysts from Investment bank Goldman Sachs has advised investors to capitalize on the new dip and buy bitcoin.

The bank stated that its short-term target for bitcoin is $13,971. It also suggested to investors to buy Bitcoin on any dips in the current situation. But, don’t buy stocks on the dip, says UBS Group AG.

There is a difference.

15th August 2019
Buy bitcoin on a dip, it is an excellent opportunity

Why buy bitcoin on a dip, experts suggest that and my analysis shows that. Here you’ll find why it is a good long-term opportunity.

By Guy Avtalyon

Analysts from Investment bank Goldman Sachs has advised investors to capitalize on the new dip and buy bitcoin. The bank stated that its short-term target for bitcoin is $13,971. It also suggested to investors to buy Bitcoin on any dips in the current situation.

This statement was provocative for Su Zhu, co-founder, and CEO at Three Arrows Capital. He tweeted:

The bank concludes based on its Elliott Wave analysis, bitcoin will have support around $11,094. Also, they founded a nice scope for a move higher to $12,916, then $13,971.

“Any such retracement from $12,916-$13,971 should be viewed as an opportunity to buy on weakness as long as it doesn’t retrace further than the $9,084 low,” the statement declared.

If Goldman Sachs’ analytics are correct, and their advice to buy bitcoin on a dip, we will see bitcoin recovered to 2019 highest level.

Goldman Sachs’ analysis is based on the CloudMiningIndex (CMI) bitcoin futures market, meaning analysis didn’t cover weekend prices. Therefore, that were the gaps in the chart over the weekend at the time when futures markets are closed. If you are an individual investor you are free to neglect this advice. It is only for institutional investors.

Applying Elliott Wave theory, Goldman predicts a short-term rise that could pop the previous highs in 2019.

Buy bitcoin on a dip for long-term investment

If you are or you plan to be a long-term investor, bitcoin shows a great buying opportunity at current prices. Goldman Sachs stated that any pullback under $13,000 is a sign to accumulate. The statement implies that if the price explodes once again it will be more valuable.

“In the bigger scheme of things, this might still be the first leg of another 5-wave count similar to the trend that lasted from Dec ‘18 through June ’19.”

We saw that in the first half of this year.

Bitcoin already had such 30% pullbacks. To be honest, you will not profit at all if you buy a bitcoin during the bull market periods. Buying dips is not profitable for a long time ago. But Goldman’s suggestion pushed other analysts who claim that buying bitcoin in dip from fast runups is a good idea. Goldman stated that the price will hopefully strengthen again after $13,971price and after that point, it will be pushed even higher. Bitcoin has confusing price action for several days until now. A break is above Wednesday’s high of $12,145 and that is needed to refresh the bullishness. On Tuesday Bitcoin hit a bid at $9,100 and grew to $12,325.

In the Asian market, the bitcoin price was $12,040 during the trading hours but felt below the $12,000 mark. On Friday it hit the fourth day in a row of bull failure over $12,000.

The intraday highs of $12,325, $12,145, and $12,061 were on Tuesday, Wednesday and Thursday.

Actually, bitcoin charts show lower highs above $12,000 and higher lows since Tuesday. That restricting price range is a sign of hesitation in the market.

The consolidation is also a sign of bullish tiredness because it comes after a 35% price growth during the past eight days.

Bitcoin could possibly proceed to consolidate to the end of August but also it can fall back to $10K. The price prediction isn’t quite possible because the market is still struggling at the resistance level. If bitcoin makes a break above the trend line that will be the sign of bigger movement, maybe higher than $15K to the end of this month.

13th August 2019
Gordon Growth Model – Mathematics of Trading

5 min read

by Gorica Gligorijevic

The Gordon Growth Model is useful to determine the intrinsic value of a stock and you will see how. It is all math.
Anyone who wants to be a profitable trader has to know math. Profitable trading is not about feelings, or prophecy and stock advice or picks. It is all about math. Yes, the main goal is to earn money more than lose.

But trading guessing is not a good idea. The math generates success and luck in your trading. Do you want to know how the math works in your attempts to profit and be a successful trader?

If you want to act like a pro you have to be able to explain and make the math behind your trading. Anyway, you might benefit from understanding the math behind the stock market.

At least, you have to know the basic calculations.

Traders-paradise wants to show you some simple to understand. It will help you to pick the right stock and keep your hopes of future returns more realistic.

Let’s first determine the intrinsic value of stocks. How to do that? Just use of the Gordon Growth Model. Oh, yes. You will need more explanation.

The Gordon Growth Model is known as the dividend discount model or DDM but without the current market stipulations, meaning the factors that influence the market, such as competitors, business challenges, etc.

The point of this Gordon Growth model is to relate the current intrinsic value of stocks to the value of a stock’s future dividends. This is a very old model but still actual and popular. The equation shows that the long-term real return from the market should be almost equal to the inflation, modified by the compound yearly growth rate in dividends and increased by the current dividend yield.

Let’s view this complex definition in a simple example.

The S&P 500 real growth rate in dividends has been around 1.3% per year over almost a hundred years. At the same period, the dividend yield was 5% annual. What you have to do is to sum these both. The sum you get is a bit less than actual 6,5% compound annual return from stocks for that period.

This is defined by an almost doubling of the PE ratio, called a speculative return. That was exactly what did add the stock returns.

Let’s see Gordon Growth Model and how to calculate it.

As we said the value of a stock is shown as

Stock’s value = D1 / (k – g)

where D1 represents the expected annual dividend per share for the next year k is the investor’s discount rate of return. You can estimate this using the Capital Asset Pricing Model, for example.

and g is the anticipated dividend growth rate. We take this as a constant.

When you have all these parameters, it is so easy to calculate the intrinsic value of the stock. For example, the S&P 500 dividend yield is about 2 %, 4.5% is how much you can expect dividends to grow due to the historical performances. So you can expect a long-run return at 6.5%.

To show you how this model is true whether or not a company pays a dividend or reinvests it let’s show you this real example.

Suppose your preferred company plans to pay a $2 dividend per share next year (D1). Also, you expect an increase of 10% per year following (g). Also, suppose you are expecting a rate of return on the stock to be 20% (k). Let’s say, the stock is trading at $20 per share now. Using the Gordon Growth formula, you can determine that the intrinsic value of one share of the stock is:

$2.00/(0.20-0.10) = $20

When you have all these parameters, it is so easy to calculate the intrinsic value of the stock.

You will very often find the Gordon Growth Model formula calculated:

P = D1/(r-g)

The stock price (P) is equal to the anticipated value of the dividend (D1) divided by the difference in the investor’s rate of return (r) minus the constant growth rate of the dividend (g).

In essence, the Dividend Growth Model utilizes the investor’s required RoR and the dividend growth rate to calculate the value of the stock.

But dividends will increase at different percentages. For example, dividends will grow quickly and then reach a steady rate. The dividend is still supposed to be $2 per share next year, but dividends will progress yearly by 14%, then 20%, then 24%, and then stable rise by 10%.

By using components of this formula, but examining every year the recent dividend growth individually, we can determine the current value of the stock.

Following the inputs for our example Gordon Growth Model formula shows:

D1 = $2.00
k = 10%
g1 (dividend growth rate, first year ) = 14%
g2 (dividend growth rate, second year) = 20%
g3 (dividend growth rate, third year) = 24%
gn (dividend growth rate every year after) = 10%

Let’s calculate the fair dividends for those years (we already find the dividend growth rate):

D1 = $2.00
D2 = $2.00 * 1,14= $2,28
D3 = $2,28 * 1,20 = $2,74
D4 = $2,74 * 1,24 = $3,40

The next step is to calculate the current value of every single dividend during the extraordinary growth period:

$2,00 / (1,20) = $1.67
$2,28 / (1,20)^2 = $1.58
$2,74 / (1,20)^3 = $1.59
$3,40 / (1,20)^4 = $1.64

Now we can calculate the dividend in the year of stable growth of 10%:

D5 = $3.40 * 1.10 = $3.74

Further, we can use the Gordon Growth Model’s formula to calculate the value of dividends in the 5th year:

$3.74/(0.2-0.1) = $37.40

This allows us to calculate the present value of the dividend’s growth in this 5th year, or how much that future growth is worth to us today:

$37.40/(1.10)^5 = $23.22

The final step is to calculate the current intrinsic value of stocks by summing up the present value of dividends in the first four years and the value of dividends in the fifth year.

1.67+1.58+1.59+1.64+23.22=$29.7

The main benefit of this formula is that it may cool down your emotions when trading. Calculating this can bring you down to the ground in growth periods, and also can support you when the market is falling.

So, can the Gordon Growth Model’s formula predict the future market returns? In short, yes.

But the weakness of the Gordon growth model is its hypothesis that there will be a constant growth in dividends which is rare. So, you can use this formula for companies with stable growth rates.

12th August 2019
Difficulty Ribbon – The right time to buy Bitcoin

When is the best time to buy Bitcoin?

By Gorica Gligorijevic

Willy Woo, who is an on-chain metrics analyst tweeted that Bitcoin’s current charts showed Difficulty Ribbon. That indicator, according to him, points the best time to buy Bitcoin. The ribbon is composed of moving averages on Bitcoin mining difficulty.

“When the ribbon compresses or flips negative, these are the best time to buy in and get exposure to Bitcoin.”

Difficulty Ribbon also gives information on the rate of change in difficulty. According to Willy Woo, this is the sign that Bitcoin will never be at $6,000 again.

The volatility of Bitcoin is really terrifying for most people. Daily movements are something that only rare and good nerves can handle. Hey, Bitcoin jumped 20% during one weekend! At the same time, it is so impressive and exciting. Bitcoin dropped for more than $1,000 but it recovered again. What a character indeed! Of course, volatility is the nature of BTC.

But Woo is providing us a deeper insight.

The difficulty Ribbon indicator shows the best time to buy Bitcoin for the long-term.

If you open your eyes you’ll be able to see it too. for a moment and you’ll see the bigger picture. The chart that Woo shared on Twitter clearly shows the ‘ribbon difficulty’ indicator. Historically it has predicted the best times to get exposure to bitcoin during the past ten years.

This is that great moment. The chart shared by Woo, shows how the difficulty ribbon packs and turns overall negative result? It is obvious in the chart where the dark line passes above the weaker lines. This trader explains. He is expecting a Bitcoin miner capitulation next year. That will halve the supply but “add more fuel to the bull market,” as he tweeted. The point here is that reduced numbers of Bitcoin will give more power to this bull market. The BTC price will go up so, this is the right time to buy and hold it.

What is the Difficulty Ribbon?

The ribbon chart moving averages on mining activity, letting us see the variation in bitcoin mining difficulty. It also illustrates how bitcoin mining changes the BTC price.

How does Difficulty Ribbon work?

When the new coins are mined, miners are selling some of them to cover the costs of mining. That results in a bearish price squeeze.
The smaller miners have to sell more to continue producing. But, after some time it grows unsustainable, and they capitulate. So, after that happen only the powerful miners are in the scene. The hashing power and network problems are lessened (that is ribbon compression) and the powerful miners will sell fewer coins to cover costs. That provides more space for bullish price movements.

When this indicator is visible?

This indicator is visible at the end of bear periods and after miners capitulation. That is the time when miners lessen their selling demands which allow Bitcoin price to resolve and then rise more.

Miners capitulate in bear periods. But it can happen when they mined only half the coins for the costs of the full mining and the Bitcoin market price didn’t achieve that level yet. The compression is visible after each halving in producing as there are fewer miners.

The first who described the Difficulty Ribbon indicator was Vinny Lingham in 2014. So, it was 5 years ago. Now, we have 10 years of historical data. Long enough to make sense to predict that this is the right time to buy and hold Bitcoin at least until next year. According to the Difficulty Ribbon indicator in the charts.

8th August 2019
Golden Cross is extremely powerful pattern

2 min read

(Updated Oct. 21)

by Gorica Gligorijevic

A golden cross is a technical indicator appears when a faster-moving average crosses a slower moving average. That is the simpler explanation. More important are the moving averages which create the cross.

To find this pattern you have to observe the 50-day and 200-day. Only these two periods are valid in forming this pattern. When you notice a golden cross happen you will something like this

This pattern is an extremely powerful sign of a strong bull market. It is an uptrend and traders like when seeing this on the daily charts.

On the chart above you can see the point where the lines of 50-day and 200-day periods touch each other and make a cross.

Traders always see the golden cross as a Sangraal pattern. Their opinion is that the golden cross pattern is one of the final signs of a bull market. That is a definite buy signal.

Traders-Paradise wrote about Bitcoin golden cross. But it occurs in stock trading too. For example, last time when this pattern was seen in the S&P 500 Index, the index has risen by more than 50%.

The opposite indicator is the death cross. The death cross happens when a 50-day moving average crosses from above to under its 200-day moving average. The death cross shows a bear market going ahead. When death cross appears you will see this pattern on your charts.

But our topic is a golden cross.

This cross pattern has three explicit stages. The first stage is the point where a downtrend is but you can see it is on its last legs. Why is that? The selling interest is defeated by a stronger buying interest. More traders are willing to buy.

The second stage includes the development of a new uptrend. The breakout of that uptrend is noted when the short-term MA crosses from below to above the long-term MA. And you can see the point of the golden cross.

The third stage is when the new uptrend is extended, and more gains verify a bull market. During the third stage, the golden cross’ two MA acts as support levels when occurring corrective downside retracements. The bull market is intact while the price and 50-day MA stay above the 200-day MA.

How to use the pattern

The golden cross is useful to discover the right time to enter or exit the market. This indicator is a good tool that can help you to know when it is reasonable to sell and when it is better to buy and hold.

When you are looking to buy an asset, it can happen to enter the market when the asset’s price increases above the 200-day moving average. Sometimes it is better than waiting for the 50-day MA to secure the crossover. How this can be better, you may ask?

The pattern is usually a lagging indicator. What does it mean? This means it may not happen until the market has already changed from bearish to bullish. It may be used as a sign that the bear market is finished. So, it is time to exit your positions.

The golden cross is used to trading individual assets as well as market indexes, for example, the Dow Jones Industrial Average. Also, you can use different MAs to notice a golden cross. For instance, you may use the 100-day MA instead of the 200-day. This pattern can also be viewed for an hourly chart, for example.

The bottom line

Some traders and market analysts don’t think the golden cross, also the death cross, are strong trading signals. The cross pattern is usually a very lagging sign, as we mentioned. The Cross pattern has short predictive importance but it is more relevant as proof of an uptrend.

5th August 2019
The Best Time to Add Crypto Asset to Your Portfolio – BTC breaks $10,000

A digital currency similar to bitcoin called crypto-asset could be a good pick to trade

By Guy Avtalyon

If you missed getting bitcoin, this is the best time to consider and add this crypto asset to your portfolio. This crypto asset has a powerful recovery in 2019: Bitcoin. We can see on the BTC charts and from the market, bitcoin is now one of the best assets since it recovered at $10,000 again in 2019. It happened last month and it looks like it will stay there or climb more.

Bitcoin grows approx 163% this year. Most importantly, this time the basics are different.

Can you see that frenetic fight among banks, technology, and financial companies? Everyone wants to develop the blockchain.

We already wrote about Facebook, but there are more. Google, Square, Goldman Sacha are also the companies that invested in projects to provide a mass adoption of blockchain.

Bitcoin’s new rally could be more powerful than ever. How is that possible? The crypto traders and investors already know what creating of own crypto may cause on the market. Twitter is on its way to include bitcoin and other cryptos into its payment, Square. It is the question of the moment. We will not wait so long to see that.

Facebook announced its plans to introduce its own cryptocurrency, Libra.

Fidelity already offers to its traders to trade BTC. Amazon is very close to offering the same possibility but at the same time, they are developing their own crypt asset.

Moreover, crypto asset-backed ETFs are preparing to enter the market. That will be a really new investment class.

What is crypto-asset?

It is a digital currency similar to bitcoin and based on blockchain technology. How things look now, it will enter a bull market. This new asset is getting strong popularity!

This hype can be compared with the time of Internet adoption.

In the beginning, it was treated as a fancy freak. Do you remember that time? Okay, someone can, but someone hadn’t been born in that time. The point is that the introduction of the Internet gave a chance to many companies to be created. For example, Google or Amazon, and many others came later. The mentioned companies are among the top market listed firms.

And now, we are witnesses of the creation of the new crypto-assets based on blockchain technology.

Maybe this is a chance for you to add crypto assets in your investment portfolio. Yes, the crypto market is volatile. But it is a chance for traders to make a profit.

Bitcoin is a volatile investment, that the truth. From $20,000 in December 2017, it dropped at a bit above $3,500 next year. It was almost a $17,000 decrease. But this year Bitcoin is doing well. It recorded (and still do) steady climbing in value. Now it is traded around $10,000. Who didn’t sell bitcoin at $3,700 can make a nice profit now.

How can you as ordinary investors get in on this the most profitable odds? How can you enter the crypto asset market?

If this is an unknown field for you, you should find some guidance, you have to find some trusted expert to guide you through the market volatility to the possibilities.

Why is this so important?

Let’s say, you don’t have a lot of knowledge about crypto assets. So, how could you profit from them without that? You can find more than 2,000 assets in the market whose total value is about $250 billion.

Which crypto asset to trade? How to pick?

Wild value fluctuations happen and you may stay confused where to invest. Don’t worry, everything will be more clear very soon.

The best part is that even the investors with most suspicious can see now that crypto is here to stay. It will not go anywhere or totally disappear. The technology behind digital assets is even more firm.

Traders-Paradise wants to give a few examples of the crypto assets which you should buy.

On the top is Bitcoin. BTC should be a central asset in your portfolio. If you still don’t hold it, it is the time to include this asset to generate really high profits because the prices will grow. So, the time to buy is NOW.

You have to pick the most future proof coin. Some will tell you it is Binance Coin, issued by Binance exchange. The price of BNB tokens will be a good test. Stay informed about it.

Some others will suggest it is NEO. It will finally expand to add other cryptos and fiat. It can be one of the most interesting and hopeful purchases. Or Stellar! The guarantee plus is a connection to IBM. Further, Ethereum. You will never go wrong with Ethereum. And also, there are Litecoin, Dash, Ripple, Monero, Bitcoin cash, etc.

Bottom line

If they sound like investments you would like to have in your portfolio, what are you waiting for?

Never mind.

You have to know that some of the biggest world companies are establishing blockchain. But the most important is that the number of companies is increasing. The power of crypto assets to make money is unquestionable.

Take your place on time.

26th July 2019
Is the Usage of Robo Advisors a Good Choice?

3 min read

For many investors, robo advisors are the future.

That’s because the robo-advisers give an investment chance that grows in reputation and popularity.

First of all, there is no need to have financial education if you want to use robo advisors. They are available online and all you have to do is to fill out a brief application regarding your investment intentions. An algorithm will take care of the rest.

Moreover, they are not expensive, and you will have an all-in-one: a diversified portfolio with assets you want and according to your risk sensitivity.

But still, you can find a lot of many robo-skeptics. The question is why? There is no reason. The robo advisors supported by advanced platforms, provide you many advantages, more than human advisors. As we said, they cost less and, moreover, you will pay fewer taxes.

Robo advisors employ high-quality portfolios

But let’s make a brief comparison between human and robotics. When you choose a human advisor, that person can advise you based on his/her experience and very individual knowledge which can be questionable sometimes. For example, you are new in the market and they can advise you a very complex portfolio by experts. And adjusted for different investor plans. But every investor is unique and you would like advice adjusted to your goals, your temperament, your personal aims.

A traditional investment manager will guide your investment to particular stocks and that could not be in your best interest. Also, you have to pay a substantial sum for that opportunity. Yes, you can find a fiduciary adviser, such will work in your best interest.

But all they can give you are portfolios backed by historical data of previous investment. Also, a human advisor has limited time for the clients and for the research.

But robo-advisor will give you a high-quality portfolio made with someone like you in mind. For example, the best robo-adviser will use low-cost ETFs with a powerful experience.

Robo advisor never trade based on emotions

Humans will follow their abilities and wish a risky investment. It may be successful but it might be a disaster. A human can not avoid emotions while investing. Are you able to recognize when the price of some asset is enough low to be worthy of buying? Or high enough to sell it and profit from it? Evry of these decisions are led by emotions. Very often they are guided by the emotion on what you like or not, what you suppose to happen.

The computer doesn’t have emotions when making decisions for you. So, be honest, which is better for your money?

Even beginners know that emotional investing can produce big losses. With robo advisors, you don’t have that problem. They will pick the best investment suitable for you.

Will robo advisor predict the market downturns? Some are able, we are preparing the advanced algorithm for you. In a few weeks, you will be able to test it.

Yes, robo advisor will predict the turbulence in the market but it will suggest you hold your investment until the market recovers. As you already know, when the market is a downturn you should not sell in panic, it is the worst thing you can do. Robo advisor will never tell you to do that. Rather it will advise you to stay in your investment and wait for the price swing back up when the recovery comes.

Robo-advisers use low-fee funds to build your portfolio and low-fees to handle it

The fund’s that robots uses have fees from 0.10% to 0.23%.

The majority of robo-advisers invest only in low-cost ETFs. That provides your portfolio with low fees and high liquidity.

When a computer manages your investments, you will pay a lot fewer fees. Also, you can find fee-free robo-advisor that charge nothing for advising assistance.

Instead of paying about 1% for a human advisor for managing your portfolio, the robot will charge you from 0,25% to 0,35%.

Moreover, robo advisors provide automated tax-loss harvesting.

A human can’t actually follow this action the way a processor can manage tax-loss harvesting. The best part is that for more extensive portfolios, robo-advisor can add up to notable tax savings.

Robo-advisers and automated trading are the future of investing

The high-quality providers grant you investments suitable to your individual requirements.

Robo advisors perform notably better than human financial advisers. The added advantage, they will cost you less and your all-in costs are more economical with this automated investment option.

Don’t diminish this difference. It can be worth thousands to your portfolio.

Think about it. Maybe this is the right time for you to get in this developing trend. We, in Traders-Paradise, truly believe that automated trading and robo advisors are the future of investing.

So, don’t be too conservative and take your place here. It is time.

21st July 2019
How well are you doing?

5 min read

by Hans Stam – Trader, Mentor, Author

Impressive

In my journey as a Forex Trader, I come across many different ways of thinking.

Some really think they are the only ones that are right, and everyone else is wrong.

Some contact me and tell me my claims are false or I do them on hindsight trading.

When I show my live accounts where they can see live trading and history, I’m usually getting a response like… Impressive.

Others I never hear from again.

It’s really our loss if we let ego dominate our thoughts.

Always keep an open mind as there might just be something to learn.

Spreadsheets

When you are trading, we like to succeed at a given goal.

One thing that happens a lot is that traders see a certain return, and start calculating.

Some make a spreadsheet and calculate their returns as being static.

Then on their spreadsheet, you can see they are 5-10 years ahead and often millionaires.

Unfortunately, it doesn’t work like that in real life.

Long term goals are good once you have reached short term goals.

What is realistic and doable for you?!

Algorithms

Now that you are all set up, you probably have developed your style of trading.

It’s normal to want an outside opinion on your trading so some sign up for a company that has algorithms running.

But be aware, you might do perfectly in one group and totally fail in another.

How is that possible?!

Algorithms are being programmed by the opinion of the Programmer/Company.

There’s a lot of difference on where their focus is and their results on your trading might be way off.

I have had discussions with some of them, and in many cases, they had to agree they did not think of other things after seeing my live trading.

So, in the end, your results are just based on their opinion and how well you agree with them.

Performances

My suggestion would be to trade for a year and keep an eye on your results Quarterly, Six Months and annual returns.

Keep an eye on the DrawDown and Risks you took by exposure to the market.

Goalsetting is a tricky thing to do when Trading.

It might be best to focus on the number of deposits you are willing to make and set it as being a goal regardless of performances.

You are the one that decides what you do and why.

It’s your money on the line so if you keep on losing ask yourself who you are following.

Is this really your plan or someone else’s plan?

Nothing wrong with that, but it has to be your decision as well.

Don’t just pick a trade because someone tells you if you don’t agree!

So… How well are you doing?

No matter what others say, you are the only one that can determine if you are doing well or not.

You have your own algorithm to perform to.

What are your intentions?

Is it you want to deposit $100 every month for a year?

Is it you are focussed on not having a bigger drawdown than 25%?

So my guess is that you are the one that determines how well you are doing.

Did you reach your goals?

What works and what doesn’t?

Probably the profit-taking results will not work as the market is depending on movement, so maybe it’s better to focus on what you can control.

Opinion

When it comes to trading, you are your own boss.

Only your opinion counts as you are the one making the trades.

Now, that does not mean you never listen to anyone.

Weigh the information, see if it makes sense, apply what is useful!

Sometimes I get good ideas presented, and it doesn’t take long before seeing the goal which supports that idea.

The idea itself may be good, but it doesn’t always apply to my goals.

When I would try different outcomes for different goals, it might become mixed up which makes both goals fail.

Some people lose money fast, and they get very frustrated because their opinions were not their own.

When you find yourself losing money because of someone else’s ideas, review and see why you are losing. And see how well are you doing.

I’m lost?!

When you are doing your thing and just came across a new idea, you might want to throw everything overboard and go for this new idea.

You might feel you are lost once that is not working out.

What you could do is demo test this new idea first, but most don’t have the patience because of their excitement.

What you might do when you find yourself in that place is to open a subaccount and usually it is easy to transfer from one account to the other.

Use your idea on the new account if you don’t choose demo first and let your initial strategy run as usual. When this new idea is producing what you want to do, it will grow on its own, but you will always have a backup from where you already are having experiences.

Easy

It’s easy to do well as long as you have a clear target in front of you which you can control.

When you can’t reach your targets, don’t try to catch up, reduce the targets to a smaller target.

If your first targets failed, then catching up is even more difficult.

Adjust to what is doable for you, and keep the goals closeby and short.

If you commit to depositing $500 a month for the next 5 years, you might want to adjust to depositing $400 for the rest of the year and review in December.

Did your circumstances change? Was it easy to do? Do you want to dedicate more?

You might have lost your job, or got a raise? Lot’s of things can happen in between the plans you make.

Keeping your goals close makes you reach them faster, if you fail the goal, reduce the goal to what fits you at that time.

You can do this!

All the best,

Hans Stam
[email protected]

3rd July 2019
The Questions You Want to Ask Your Broker about Start Trading

This is the full explanation of what you have to do in your first contact with the broker.

By Guy Avtalyon

We assume you already made your decision to start investing or trading but you don’t know how to start and what to ask a broker. That is the situation where you would need a broker’s help. You already examine and find several and it is time to contact them.

What you have to do that before you open an account.

Before you open an account, you should use the internet browser. Traders-Paradise’s advice is to visit the web pages of every brokerage company you want to analyze. That first feeling about the brokerage’ site will be maybe the most important part if you want to start trading online. You must feel comfortable while you are checking section after section and it has to be user-friendly for you and you will find if the broker has a free demo account and how long you can use it before the switch to the real.

Some websites may be slower at the first visit but try them again, maybe when you first visited them the traffic was high. A large number of visitors can make the website operate slower sometimes. This doesn’t mean the broker isn’t good.

OK, you picked several brokers. So what is the next step?

First of all, you have to make the first contact. The best way is to make some phone calls or to fill a contact form and let them call you.

Be prepared, on the first call, they will tell you precisely what you like to hear. It will be so good but also, it might not be a truth. You must be aware. So, never play on the first hint. Try them more.

Always keep in mind, you need to find the right broker for you. So, you have to talk.

What to ask the broker?

You will pay for financial advice, and you will entrust your hard-earned money to some person who will act as a genuine servant of your financial future. So, you have to ask, you have to talk.

Ask if the firm has possible conflicts of interest regarding reasons to sell particular funds or products. Just ask. If you get a precise response, then the answer will satisfy many of the next questions.

Ask the broker about trading commissions.

It might be surprising but lower commissions are not always the better.

Take care of it and examine all the information you can get.

The price per trade may explain the level of customer service. If you don’t want to trade so often it shouldn’t be the subject of your consideration. In such a case it isn’t the primary if you need 30 seconds or 3 minutes to execute your trade, so the difference in commissions isn’t important too much. Will it be $5 or $25 per trade isn’t important if you don’t plan to trade very often, for example, 15-20 trades per year. But if you plan to trade on a daily base it is important.

Training and education

Also, you would like to know what kinds of training and education do they provide.

Traders and investors, both advanced and novice need constant training and education to stay up to date with the laws and practices in the trade. This includes mentorship and copy trading. Mentorship is extremely important. The legal field is changing and you would need a good mentorship to follow the best practices in order to keep mistakes minimal. On the other hand, copy trading is good for novice traders and investors but leading traders may make mistakes too. At the beginning level, they are good. After you master the trading, you should build your own strategy and approach to the trade. That will depend on your personal goals, risk tolerance, and character.

Also, important information is about other fees.

Ask the broker about them. That is information about costs of account-maintenance and inactivity fees. So, it is good to make a list of services and transactions you might need before you start the conversation with the broker. Ask them how much all of them will be a charge.

Ask a broker about the minimum initial deposit

Minimum initial deposit is something you should know before you open the trading account. We assume you know how much you can invest but does it meet the broker’s regulation? Some brokers have account minimum and you have to know is it adequate for you. This minimum has to matches your budget.

Withdrawals

You need to know how much you can withdraw and how much time it will take. On some websites, you will find wonderful information about it but once when you talk with a live person you might find there are so many differences for almost every case. For example, on the website brokerage can write the withdrawals take a few days. That is true but sometimes it isn’t. Very often it depends on how big withdrawal is or in which circumstances you want to withdraw. Ask for every single detail about it.

Customer support

This is a huge question. Ask a broker’s about customer support and services before you sign up. Is it easy to find what you want on their website or you will need to spend the whole day and click through 100 pages? Can you access to their customer support fast? Does your broker have live chat? Is there any possibility to talk face-to-face?

Banking services

Maybe this isn’t a big deal but still, you have to know all about payment methods.

The best choice is a brokerage account that can serve your banking need. The brokers now offer Visa or Master cards, direct deposit, ATM cards, etc.

Ask a broker about investment assets selection

All brokerages offer stocks traded on the major exchanges. But if you’re interested in options, bonds, currencies, cryptos ask if certain brokerages offer them. They’re not available in all brokerage.

A good broker will set realistic expectations in front of you. They will provide some valid information from their experience. They will be based on the current market and on details about your goals.

Beating the market is hard but at the same time exciting. Since it is hard for the majority, you need to add some weights to your portfolio. Without a broker, it is even harder. Statistics show that only 5% of market participants are successful. It is smart to use the best brokerage to be one of them.

Traders-Paradise recommends you to ask these questions as far as possible. Your broker has to truly serve you well. So, they should have no problem to give you honest answers.

To get started on your broker research, use our Walls

Traders-Paradise Team wishes you successful trading and investing.

24th June 2019