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.

Where to Invest – Know How to Find

3 min read

by Gorica Gligorijevic

OK, you think it is time to start investing! But before you dive into that world you have to know several things. Very important things.

This article is not about where or how to invest. It is all about how to find what is necessary to do before you decide to invest and where to invest.

We need to know more about how should we invest our money.

Most of the time we do so without any research. That is completely wrong!

Who even try to find some information about investing was overwhelmed by the tens of thousands of stocks, bonds, mutual funds, etc out there.

You must be so scared of all the options. And you may give up.

But keeping all your money in a savings account can take you on the wrong side.

Nobody starts out as a specialist. Even the best investors were in your shoes.

For the start, you must consider two questions.

The first one is, where should you begin.

And second, how to begin.

First comes first.

Where to begin.

You may read different financial websites.

As a financial site, Traders Paradise, research all the time, collecting information from different sources. We have our tops, it is so natural.

But we would like to share with you some free websites.

The best-of-the-best that can provide you the education and news.

We can tell you to read us, but you already do that, indeed.

The best information about where to start investing we found on Cabot Wealth Network that includes a lot of free information. Their education section has valuable data about Stock Market Analysis, Market Timing, Selling Stocks, Technical Analysis and plenty of others.

The site Investopedia is a very good source too.

It is an invaluable source for definitions of financial terms. This site has tutorials and articles broken down for beginners. And all is free. Investopedia is a great site even for professional traders.

Don’t give up when you see their long long sentences, they are hiding very valuable data inside.

Among free websites, Traders Paradise highly recommends the Motley Fool. Don’t be foolish! Their name is just a good cover. These fellows are all market.

They are excellent no matter if you are seeking to make your own analysis, or like the help of an experienced specialist. The Motley Fool is ready for you.

Yes, you have to pay some of their services, but that could be a genuine opportunity for you, a beginner.
Traders Paradise wants to recommend one site more. It is AAII Investor Classroom: www.aaii.com/classroom. But it isn’t free.

It bears many lessons. They are treating everything from the risk management to the dividend stocks evaluation. The cost to join is $29 per year.

If you want to start investing, you should analyze the characteristics of a company in order to evaluate its value.

That is security analysis. You have to check a company’s financial documents and financial circumstance, its management, and rival advantage. Of course, you would like to identify its rivals and markets.
Why is this important?

The technical analysis finds that all the major parts of a business are reflected in the price of the stock. Technical analysis examines the market supply and demand. It is an effort to recognize where a stock’s price will go in the future.

Amongst sites needing paid subscriptions, we recommend Investor’s Business Daily eTables, Zacks, and

American Association of Individual Investors (AAII). They are really helpful.

For example, Zack’s does expect membership. If you want to get to the spicy material.

Well, surprise, surprise!

The membership is free. You can devote three minutes to sign up. You will have an in-depth review of both stocks and funds. Moreover, you will have access to many free reports that will help you.

And you have to read books.

There are thousands of various books about investing. One of them is everlasting and evergreen “The Intelligent Investor” by Benjamin Graham.

You can find a lot of respective books out there. You can adopt the main ideas from these books because they touch any market over the globe. Well you know, many questions are the same to all worldwide investment. The macroeconomic indicators, asset allocations, and currency risks are the same all over the world.

Investors are overwhelmed with information. Everything is trying to catch your attention. From press releases to SEC filings, for example. Yes, it’s always helpful to be informed. But how to isolate the good information from the uproar.

Press releases usually neglect bad information. They are adjusted on the good news. Analysts have spectacularly prejudices. At the same time, the official statements are tricky to be used, actually, they are not useful because of their vocabulary.

So, where to look for information before you start investing?

Corporate websites include information about a company. From financial statements to annual reports and surveys.

When you are seeking the financial information they can be easier to navigate.

What you have to look for?

First of all, financial statements.

Of course, you would like to take a look company’s presentation. Remember, never neglect this.
Company presentations can give you an important summary of the past result. Also, the predictions for the following years.

Company press releases can hold a treasure of information about progress and financial fulfillment.
Find their investor contacts. They can be an important source for investors. But always keep in your mind who is paying them.

Securities analysts can be an excellent reservoir of information for investors. Buy-side analysts are a better reservoir because they are not so biased. Analyst reports can be found in places including:

You can find analysts reports among stockbrokers.

Also, among companies.

Some companies offer analyst research to potential investors.

Find some broker with the fiduciary obligation.

A fiduciary relationship is where one person (fiduciary) undertakes to act for another, placing his or her interests ahead of their own.

We will give you a quote from the legislative site:

“Fiduciary obligations refer to the duty to avoid conflict, the duty to not make a profit, and the duty not to gain a personal benefit or a benefit for a third party, without the consent of the principal.”

But most of the necessary things you have to do by yourself.

You have to examine your needs and goals.

It’s worth to think about what you actually desire from your investments. Take your time. If you know your goals, your risk tolerance, you are on a good path.

Estimate how long you can invest.

Consider about how quickly you need to get your money back.

Or just let a robo-advisor invest your money for you.

Don’t waste your money!
risk disclosure

19th April 2019
Trading Forex at the Weekend Gaps

3 min read

Trading Forex at the weekend gaps is a growing field of investment. Forex weekend trading hours have extended away the traditional trading week.

Forex trading the weekend gaps are becoming popular because of trader’s expecting Sunday’s opening price to return to Friday’s closing price.

There is a mistake that you can’t trade over the weekends.

So, you surely can trade online at the weekend. To be honest, weekend trading in currency, stocks, CFDs, and futures is increasing fast.

Actually, the forex market is opened during the weekend.

How Trading Forex at the weekend gaps is possible if we know that the forex market is working 24/5?

Well, it is decentralized. And technically the forex market is open 24/7. It is true that the majority of dealers close transactions on the weekend. For retail traders close at around 5 p.m. EST on Friday and open around 5 p.m. EST on Sunday.

And we can see a gap during the forex open time only when the price movement is great because of some news.

But gaps are quite obvious in the forex market when the market is closed over weekends.

How does it come?

The market prices are moving over the weekend. You can not stop the currency transaction. For retail traders, the price isn’t the same on Friday when the market closes trades and on a Sunday afternoon when it opens.

If the price is higher on Sunday, we have a gap up. But we will have a gap down if it opens lower than the Friday afternoon price.

Trading Forex at the weekend gaps is very familiar to forex traders. It is a very often use strategy. Why is that?

Well, the Forex market is, in fact, open 24/7. Yes, trading ends on Friday and can be opened on Sunday evening.

But so many things can influence the currency price movement over the weekend. So, when traders are trading at weekend gaps, they are expecting the opening price will hit the closing price.

The gap traders believe that the price will continually fulfill the gap. Really? In fact, it constantly does. But it isn’t feasible always.

That’s why some traders make losses. Some gaps are tradable some are not.

For example, we recognize four varieties of gaps.

Breakaway gap

The breakaway gap regularly rises a new trend.

The price frequently develops out of the consolidation phase. Moves up or down with powerful momentum. What leave behind is the gap.

Some crucial, breaking events may cause movement. That new trend isn’t always tradable. Breakaway gaps happen at the end of the price pattern. They indicate that the new trend is starting.

The breakaway gap

Exhaustion gap

Exhaustion gap occurs close to the end of a price pattern. It indicates a definitive try to reach new highs or lows. Usually, it comes after a sudden move. It has an unnatural rise in volume and then turns strongly. Also, you have to know that it comes after some news or reports. For example, after the earnings announcement. That is the period when trading activity increase. Traders are closing their big positions. That causes an obvious reversal. You can find the exhaustion gaps no matter if it is an up or down trend.

The exhaustion gap

Common gap

It simply represents a space where the price shows a gap.

They are gaps seen on a price chart and they are very common and the most generally traded.

Also, they regularly arrive late Sunday and early Monday market openings.

They are suitable for short-term intra-day trading. You should look for a common gap around Sunday midnight and trade those Forex gaps at that time.

The Common gap

Runaway gap

Runaway gaps mark trend continuing. A runaway gap is fairly one of the most secure ways to trade. Particularly if you combine them with other price tools.

A runaway gap happens when the price is gapping into the course of the trend. When the trend is strong you may see them.
Runaway gaps regularly work inside a trend.

Traders need to recognize the gap before they find the potential increase in price. This means that runaway gaps are traded after the action.

The bottom line

The gaps can give a lot of news about market moving.

Trading at the weekend gaps is risky.

But you can use the information produced by a price gap to develop a complex trading plan. It can be helpful with other trading ideas.

risk disclosure

18th April 2019
High-frequency Trading Algorithms Characteristics

High-frequency trading algorithms or algos are rigidly secured by their owners.

By Guy Avtalyon

High-frequency trading algorithms can be amazingly easy to use. And beneficial too. Where is the catch?

By their nature, because they are so fast, those algos know the future price, they don’t even have an attempt to predict them. The slower shareholders need to predict prices, algos don’t. High-frequency trading algorithms use arbitrage, traditional technical analysis, and everything that works. Their purpose is to implement and modify well-known strategies while running with their extraordinary speedy setup.

The High-frequency trading algorithms main advantage is getting price quotes earlier and placing orders faster than the bulk of other traders.

Of course, the profit may depend on the software’s latency. Or it can be some lag between the price quote and following order execution. Latency is the most important part of an HFT algorithm.

High-frequency traders can optimize latency in two ways: if you minimize the time to reach the exchange or if you maximize the speed of your trading system.

Traders use algorithms for trading to reach higher performance to markets.

Algorithmic trading is like traditional trading.

You want to buy or sell the security. The whole process is based on the predefined collection of rules examined on past data.

That means every HFT algorithm use indicators, charts, technical analysis, etc.

HFT firms decrease latency by fastening direct market access.

As an HFT trader, you can get data from the market nonstop, and without third-party. The direct market access gives you the capability to enter market orders straight into the market’s order book. This is an important feature of a low latency trading platform.

That guarantees that you will receive data before then other traders that are not using direct market access. So, you will be able to participate in the marketplace before the competitors.

HFT methods gain an advantage via ultra-low latency

It is possible through the establishment of two important inputs:

Automated trading algorithms

It is known as “black box” trading systems. Actually, it employs multiple algorithms based on various market variables. It provides a trader to get trading signals and identify a possible trading chance. That signal is traded automatically by installed trading software.

Collocated servers

These servers are given to the trader and connected to the market or exchange. They are actually placed at the exchange or market. The advantage of collocated servers is that they give you direct market access with hugely decreased latency. That’s why they are better than remote servers.

The main task of a good HFT algorithm is to reduce the time of traders’ access to the market.

The use of the HF trading algorithm altogether with collocated servers guarantees an exact and up-to-date synergy with the market. Complex algorithms identify and execute trades build on strategies. These strategies are known as order anticipation, arbitrage opportunities, momentum.

So, is it possible to compete with algorithmic trading?

Well, we have to say it isn’t. Don’t try to beat a High-Frequency trader! You will lose that match. The HFT has plentiful supplies and is be able to keep the algo running 24/7. Can you keep alert all that time? Can you be functional and reliably?

HFT includes multiple sub-disciplines.

They are quantitative techniques with short time holdings.

It is established on technical and fundamental analysis. Yes, they use traditional patterns to make trades. They are a very fast variant of what traders have done for a long time before. Also, HFT includes algorithms to prognosticate hudge buying or selling patterns. They use high-speed connections and co-located servers or in-house exchanges. And in a millisecond places trades based on those forecasts. They know what the next will happen!

The simplest algorithm is based on technological and geographic recognition.

Remember, the length of the optical connections is very important. The HFT algorithms can evaluate the order attributes, and discover if it is an indicator that related orders will go to other markets.

And what will happen? The High-frequency trading algorithms will place the order to buy at the offer price at the other exchanges.

High-frequency trading algorithms will always take advantage of the speed of execution.

HFT knows how to force the price to a higher level. It will buy all the stocks first and push the price to grow. And?

So, if some trader places the order with the limit order on that or higher price the algo will be the winner. It will use the spread.
Because of its dominance in the rapidity of execution.on technical and fundamental analysis. Yes, they use traditional patterns to make trades. They are a very fast variant of what traders have done for a long time before. Also, HFT includes algorithms to prognosticate hudge buying or selling patterns. They use high-speed connections and co-located servers or in-house exchanges. And in a millisecond places trades based on those forecasts. They know what the next will happen!

The simplest algorithm is based on technological and geographic recognition.

Remember, the length of the optical connections is very important. The HFT algorithms can evaluate the order attributes, and discover if it is an indicator that related orders will go to other markets.

And what will happen? The High-frequency trading algorithms will place the order to buy at the offer price at the other exchanges.

HFT algorithm will always take advantage of the speed of execution.

HFT knows how to force the price to a higher level. It will buy all the stocks first and push the price to grow. And?

So, if some trader places the order with the limit order on that or higher price the algo will be the winner. It will use the spread.
Because of its dominance in the rapidity of execution.

17th April 2019
Order Flow Trading

3 min read

Order flow or transaction flow

Order flow trading is more of a mindset. We cannot say it is a trading system or trading method. It is all about how some traders are viewing and imagining the market place.

Say in this way, the orders are moving price.

So, the intent of an order flow trader is to identify patterns on which they are getting triggered.

It is also called a transaction flow.

Order flow happens when a trader believes the price of an asset will move and then the trader chooses to execute the order.

Also, order flow trading is an expression that generates a lot of mess.

Some traders believe that such trade is based on very secret information from the banks. That just a small group of people have knowledge about it.

But you can see that some of them believe that it is another kind of price performance.

To determine order flow trading you have to clarify what kind of trading you want to execute.

Many of the retail forex traders are trying to place directional bets.

That is when the trader is going long or short, speculating that prices will go up or falling.

For example, if a trader believes a currency pair will move up, he/she will set a buy order. But if such a trader prediction is a currency pair will go down, he/she will go short, meaning the trader will sell. This is directional trading.

It is one of the most traditional styles of trading.

If you choose directional trading, you may decide to be a dynamic trader. You want, for example, to execute a market order and pay the spread. That is one possible choice.

The other alternative is to set a limit order or stop order marking the order flow to be executed at a specific price or executed after the market hits a specific price.

This is different sorts of order flow.

Order flow trading is alike to price action trading

The trader who executes a market order is achieving a more dynamic order. Such doesn’t like to wait for a limit order.

It is questionable if that order will or will not be filled.

But the trader who set a limit order or stop-loss order is creating a more inactive kind of order flow. Even if the orders are not executed, they are helpful in building the order flow.

Order flow trading is alike to price action trading.

They both intend analyzing the market in a specific style.

Price action traders try to conclude which direction the market going to move in. Order flow traders think they can foretell the same thing but based on capturing the actions the other traders done in the market.

Order flow trading, so how does it work?

The basic idea lays behind that if you are able to recognize when and where traders are going to make decisions, you can presume what is the future course of the market. The main purpose is to determine when the prices are moving up or down.

To be more clear, one trade will never cause such movement.

But thousands of orders appearing at the same time can generate the price’s turn.

And we can say that the main intent of order flow traders is to find how other traders trade. On that way, such a trader can recognize when numerous orders will appear to the market, large enough to generate a price movement, either up or down.
All the trader needs to know is what is the basic goal of their trading method. Based on that knowledge, he/she can predict on which position they will make a decision which will place orders into the market.

The basics of order flow trading

Two types of order flow trading

There are two main types of orders that traders can execute in the market.

Each of them is executed for different reasons. Hence, have different influences on the market price after execution.

The traders can place market orders or limit orders.

One group will place a market order because they want to earn money as quickly as it is possible.

They place a market order to open their trade because they don’t want to miss such a great chance. This is so-called reactive strategies. Meaning, the traders are reacting on what is happening in the market at this moment.

When a trader places a limit order, that means that trader wants to have a trade at a price which he expects will be reached in the market.

Stop losses are also limit orders because they provide trader to buy or sell at a price which has to be reached in the future.
Both affect the market price but in different ways.

A market order spends some of the liquidity in the market. On the other side, the limit order is placed to add liquidity to the market.

And, here we are!

The keyword for order flow trading is liquidity.

Liquidity explains how accessible is it to buy or sell in the market.

When it is easy to sell or buy, the market is liquid.

For example, the forex market is one of the most liquid financial markets in the world.

Buying or selling on the forex market is so easy because you will always find who is going to sell to you or to buy from you.
Why is this so important for order flow trading?

When low liquidity occurs that means that most of the orders on the market are buy orders. The traders can’t achieve buy trades placed because there are not enough people in the market ready to sell.

There have to be a big amount of sell orders placing the market in order for the market to be liquid.

It is really important to learn that when low liquidity is approaching the end, it means the traders have made the decision in the market.

But which decision?

That depends on which course the low liquidity movement happened. If it was a drop-down then the traders have placed buy trades or carried profits off sell trades which have previously been placed.

If it was an up-move, traders placed sell trades or took profits off buy trades.

Price does not move because of some mysterious technical indicator. Nor moving average will move the price.

For the price to move, traders need to execute enough orders to utilize the liquidity at the best bid/offer.

If there are no orders to be executed, the price will not move.

This is the cruel truth in trading.

The market will never move to your direction if there is no order flow.

The outcome of the trade is managed by the performance of other traders. The real transaction and order flow are produced by other traders.

The bottom line

Order flow trading is not a technical analysis or fundamental analysis. They are not able to move the market.

Order flow and liquidity is the base of the market.

That’s why many traders have gained the losing tradings. Their losses happen because the technical or fundamental analysis cannot produce enough order flow to move price in your favor.

Order flow trading tries to improve the lacks in technical and fundamental analysis.

When you learn and practice enough, you will find this is the most successful approach to trade.

Don’t waste your money!

risk disclosure

16th April 2019
Forex Trading in the Indian Market is Not Fully Legal

Indian Forex market is not fully legal

By Guy Avtalyon

Forex trading in the Indian market is legal. RBI puts a lot of restrictions on trading, but still, there are possibilities for Indian residents to participate in the Forex market.

So, we can say, it is allowed to trade Forex inside Indian Exchanges. All resident Indian or companies, banks, and other financial organizations can trade in the currency market.

But Foreign Institutional Investors and Non-Resident Indians are not allowed to trade in the currency market. So, once again if you are resident Indian, you can trade currency over Indian exchanges like NSE, BSE, or MCX-SX. The main currency pairs are USDINR, EURINR, GBPINR, and JPYINR.

The point is that you can trade with respect to those two conditions: being resident Indian and the broker you choose is in the club of the exchanges mentioned above.

In those cases, Forex trading in India is unquestionably legal.

Forex trading in India is legal and safe.

There is remarkably strong regulation established by the RBI concerning Forex trading.

The problem is that RBIs regulation allows you to trade only 4 currency pairs, USD/INR, EUR/INR, GBP/INR, and JPY/INR.
But, it is possible to trade.

Yes, you cannot open an account out of the country, you have to trade with registered Indian brokers and listed currency pairs.
So, take this suggestion! If you are resident Indian and want to neglect the laws, you can also open an account using offshore exchanges. But you are doing that at your own risk.

Converting the INR to other currencies for the purpose of trading the FX markets with abroad Forex brokers is an illegitimate project. Such action in India is strictly against the law and can bring draconian penalties and also the prison.

How to do a Forex trading as an Indian trader

This is where things are a bit tricky. If you live in the rest of the globe, trading forex is the normal and regular thing.

For example, if you are a resident of some EU country or you live in the US, you can trade any currency pair in the world. You can trade even over unregulated brokers, at your risk of course. But when you trade on Forex market that is pretty unregulated you are trading at your risk anyway.

When it occurs in India, it is quite complex.

Is Forex trading fully legal in India

The problem is that trading currencies in Forex trading in the Indian market is not fully legal.

You have only one possibility, and it is the same for the resident Indian, you can trade only the currency pairs that have INR (Indian Rupee). And you may choose among 4 currency pairs USD/INR, EUR/INR, GBP/INR, and JPY/INR.

What is the story behind this? We assume one possible scenario. The US dollar is the most popular and the most traded currency.

And INRs value in comparison with the US dollar is too low. So, if many traders would like to buy dollars, the Central Bank of India could be short. The next what the Central Bank of India could do is to buy dollars. But the price would not be the same. It could be much much higher. It is possible at worse rates and INR will continue going down.

That sounds logical.

In the same way, online trading and using online platforms are not allowed for Indian citizens. Foreign brokers can offer their services in Forex trading in the Indian market. Though, Indian traders can trade only with brokers certified by SEBI. And again, they can trade only currency pairs denominated in INR.

This the moment when we have to say that it would be smart to reconsider those limits. In such a case, Indian Forex traders could enjoy full currency trading.

As we heard and read several times, the Indian government is contemplating eliminating the restrictions in order to provide the other popular pairs to be traded. That will be nice.

Until then, if you want to trade with abroad brokers, you should be sure that they have the required licenses.

Our recommendation is to choose the approved Forex broker that has an extraordinary credit. It isn’t hard to find some, for example, TradeO.

Trading Platforms for Forex trading in the Indian market

For Indian traders, it is impossible to use online Forex platforms or software. Simply, it is illegal.

But still, not all Indian traders are citizens of India, so they can use them.

For those who can trade online from India, there are few things to consider.

Choose the broker with a user-friendly interface.

Also, it has to easy to manipulate.

The button that can close all of your positions when you want that has to be included and visible.

Further, your broker must offer you several platforms. One, for example, Metatrader 4 or Metatrader 5, that you can download and at least one to trade from your browser.

The most convenient is if you choose the broker that provides you to download the app. You can easily install it on your phone.

So, you don’t have to be stick to one place when you want to trade.

When it comes to account types, the majority of brokers will allow you to open the account with a small deposit. It can be, for example, $50-$100.

But maybe you want to trade with a much bigger amount of money. Anyway, you should contact your chosen broker and discuss the rules, and find out which type of account suits you best.

Also, you should check if your broker has a free demo account. Either you are an advanced or beginner trader. Trading on a free demo account will give you the view of how the platform works, or you can learn more before you give them your money.
Happy trading, India!

9th April 2019
Currency Trading Guide For Beginners

3 min read

Currency trading, also foreign exchange or Forex trading, is the buying and selling of currencies. That is happening in foreign exchanges or in the foreign marketplace. The main goal is to make a profit.

Often you can find it is called ‘speculative Forex trading.’

The main difference between currency trading and other trading is the liquidity of the Forex market.

When you participate in the forex market, in essence, you have to buy one currency and sell for another at the same time.
This is called a currency pair.

Each one is interpreted by three letters. The first two letters describe the name of the country. So, the third letter interprets the name of the currency.

How can you make a currency trade?

Currency trading: Currency pair

Currency trading is regularly executed completely over brokers and market makers.

If you want to trade in the Forex market you will depend on the brokers in order to execute a trade.

The first thing you have to do is to pick a currency pair.

If you make a mistake, it could lead to a losing trade.

So, we recommend you to choose between seven major currencies. Honestly, you have to pick one of existing seven. It isn’t a big deal!

But there some problem may arise.

There are some traders who have difficulties pairing up currencies. Sorry, but we have to say that.

Some others cannot recognize which pair will perform the best.

As we said, there are 7 major currencies. And, they are most traded.

You have no other choice than to trade them in pairs.

Currency trading: 7 major currencies

The first mistake you may make is to pick your pair based on some country’s economy. Don’t do that because your profit will depend on your position while trading on particular currency pair.

That means if you are willing to be a day trader or very active trader you will probably pick 4 or even all 7 pairs.

On the other hand, if you prefer to be a long-term trader you would like to wait and see which pair perform the best. Such traders always want to catch the best opportunity and they rather wait than to hurry.

Say, you are a conservative trader.

What you have to know?

Number one, the forex market is open for currency pairs’ trading 24 hours a day. From 6 PM on Sunday in New York, to 4 PM on Friday.

Each day starts at the Sydney market open. It is 5 PM to 2 AM Eastern Standard Time. Then switches into the Asian market. Tokyo’s market is opened from 7 PM to 4 AM.

That’s not the end. When the Asian market is near to be closed, the European markets are starting their session. It starts with London’s market opening from 3 am to the midday.

The last session belongs to New York. It begins at 8 am to 5 pm.

That represents one week of forex trading session.

So, you can place your trade when and where you want. The Forex markets are opened 24/7.

What you have to take care of when trade currencies?

Currency trading: make a profit

Well, the first is its value. Currency price is changing fast and frequently. The reasons for that can be various. For example, Brexit is one of them. But sometimes, the market by its own nature will cause changes in currency prices.

The fluctuation isn’t a bad thing, but when it comes with high frequency, you might not be able to determine the changes which could cause the loss.

For example, the euro is strong. And countries from the EU would buy, let’s see, U.S. products. In order to meet payments, they have to change euros for US dollars.

So, we have the following situation.

If large amounts of euros are traded for U.S. dollars in a short time frame, it forces interest for the U.S. dollars. As a consequence, the U.S. dollars value increases. On the other side, the value of the euro related to the U.S. dollars decreases.

The risk involved in currency trading

Currency trading implies high leverage.

It is very possible with small investments to gain a big amount of cash.

Forex is not highly regulated. There are several sorts of trades not regulated at all. That can boost the risk of currency trading.
If you are the beginner in currency trading you should start on some free demo platform. There is no risk involved.

If you have a certain good result, and only IF, you should start with live currency trading.

Don’t waste your money!

risk disclosure

8th April 2019
Indian stock market is worthy to invest
India: Taj Mahal

By Guy Avtalyon

Are you one of the rare investors who know what magnificent opportunities you can find in investing in the Indian stock market?

Or you are not?

It is a promising market. But, before investing in the Indian stock market, here’s what you should know. It is essential to focus on the stock market if you want to invest in it.

First of all, you should know that India is globally the quickest expanding economy. Measuring GDP, India takes seventh place in the world. Also, the third-largest buying power parity in the world. The growth is coming from the service industry. After the economic liberalization policies 1990s, Indians considerably improved life.

Investing is a confirmed way to produce long-term wealth. And besides, anyone can start investing.

Is the Indian stock market worthy to invest in?

In India, you have two stock markets where you can make your trades, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). You have to find the company has good nitty-gritty, an basically a strong company.

The BSE has more than 5,000 listed companies and NSE has about 1,600. Both stock markets match the same trading principles, trading hours, settlement rules.

Determining a sustainable company is easier said, than done. Anyway, we will give you short reviews of a few Indian companies with big economic moats around them.

What is MOAT?

Let’s go back to the past for a moment.

In the Middle Age, all around the castles were digging channels. Then, they would charge the channels with soil and water. That is the moat. And it was very helpful if the enemy tried to provoke or attack. Thanks to moats the castles were prepared to persist for a long time period.

The same idea of ‘MOAT’ is appropriate in the stocks.

Many companies have an unseen shield around themselves. That gives them an influence on the market. They have a brand. For example, Gillette or Colgate or Suzuki or Coca Cola. MOAT companies in India are, for example, Asian Paints or HDFC Bank. Also, MOAT companies may have a business monopoly. Such a case is with Coal India.

Indian Companies with big MOAT
- ITC: Cigarettes – ITC Ltd covers 81 % of the cigarettes selling in India
- Castrol India: Giant among automotive and industrial lubricants in India. Holds around 48% market share in the global Indian lubricant market.
- Asian Paints: It owns over 54% of the market share in the Indian paint industry.
- Jockey India: Actually, it is Page Industries, one of the biggest producers of underwear in India.
- Hindustan Unilever or HUL: Hindustan Unilever or HUL: They offer some of the popular brands, that are used by 2 billion people on a daily base. That, among others, include Cif, Dove, Lipton, Vaseline, Pepsodent, Wheel, etc.
- Pidilite Industries: It is adhesives producing company. Their brands are Fevicol, Fevikwik, Fevistick, M-Seal, etc.
- Britannia Industries: It is an Indian food corporation with Britannia and Tiger brands. Its headquarters in Kolkata, West Bengal. Among their offered brand names are biscuits VitaMarieGold, Tiger, Nutrichoice Junior, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Nice, Little Hearts between others. Nestle: It is a famous producer of “Maggi”, chocolates, etc
- United Spirits or USL: is an Indian alcoholic beverage company and the world’s second-largest spirits company by volume. USL exports its products to over 37 countries. It has more than 140 liquor brands such as McDowell’s, Royal Challenge, Antiquity, Vladivar, Romanov, etc.
IT and business services outsourcing is a very important part of India’s economy.

Indians are very well educated, skilled and English-speaking. Moreover, they are not expensive workers. That’s why the IT sector provided about 8% of the country’s GDP.

Business services outsourcing is a less important but more popular business in India. BPO is the express increasing part of the industry in India. So, it is valuable to consider investing in those companies.

How to invest in the Indian stock market if you are not its resident

If you are not an Indian resident the Indian stock market is a foreign market for you. But you can still invest. For example, you can buy stocks directly. Honestly, it is a bit tricky. Much more than investing in domestic stocks. But if you want to invest in some company listed on a foreign exchange you can do it over your brokerage.

If your brokerage provides that kind of service, it has to contact the market maker in India. Sincerely, you have to be prepared that the stocks you want are not accessible. That is the bad side. The simplest way is to set up an account directly in some of India’s brokerage. Almost all the notable companies in India are listed on both the markets.

Even if you are investing in the long-term, always look for a ‘moat’ in the company. It improves the profitability of the company. And it is very important in India’s markets. Having a business ‘moat’ gives these companies plenty of support.
5th April 2019
How to Get Started Real Estate Investing?

Real estate investing is easiest to understand but getting started can appear scary

By Guy Avtalyon

Real estate investing can be key to your financial status in the future.

Yeah, investing has to be done on time. This means you should start at an early age. Because you must have the chance to take benefit of compounding interest.

Have you ever think about real estate investing? Well, how to tell you and not to ruin the fairytale?

You may have a really good salary but you can work limited time in your life. For example, 40 years. The truth is that the majority will never get rich working regular jobs. Every day from 9 to 17.

Okay, some will get rich but you are speaking about people who become CEOs in their 30s. And had lucky to start in some big and respectable corporation.

To be honest, I’m not jealous. I don’t envy anyone. What I want is to find a way how to provide our older days and years with a decent sum for a comfortable life. An for this present life, of course.

We are speaking about financial freedom. And one of the ways to reach it is something called passive income.

How to generate reservoirs of passive income?

Stock investing is a good idea.

But, as far as we know, real estate investing can produce big returns and increase your net worth. And it is with less risk than stock market investing. The markets are volatile, don’t you know that?

Real estate investing is also easiest to understand as a way to invest. On the other hand, getting started in real estate investing can appear like a scary thing. But, frankly, you can screw it up.

So, I want to give you some tips on how to start real estate investing.

Do you know the meaning of wholesaling and prehabbing?

What are property types?

Have you ever heard about single-family, multifamily? It can seem strange and scary to new investors. But it is one of the smartest investment actions you can make.

Yet, investing in real estate can give quite nice capital if you make clever investments. If you are thinking about investing in real estate, there are some investment tips for beginners.

Real estate investing is a business

Believe us, it isn’t enough to provide hot water or electricity or heat supply. Yes, the rent will come anyway. But real estate investing is more difficult and demands you to be involved.

First of all, there are various different types of real estate investments. There are residential, commercial, and industrial. But also, a real estate that can be traded on stock markets. Have you heard about REITs? That’s it! So, you must understand that real estate investment is a business.

The main advantage is that it isn’t necessary to understand all about real estate.

Real estate investing strategy

You must have a plan in place to achieve your goals. That’s alpha and omega for everything.

When investing in real estate as beginners you must have a business plan and a real estate marketing strategy.

These two parts will point up the goals you want to achieve. They will give you a roadmap to realizing them. Also, they will show you how new deals continue to run.

Yeah, there are risks and rewards.

But there are some investment choices excellent for novices. Let’s break down some investment opportunities that are correct for new investors in the real estate market.

Are all real estate investing strategies equal?

Nope. Choose a simpler strategy as a starting point. For example, wholesaling.

Your job as an investor is to be a middle man. You will have to recognize and ensure a property that is being sold for under market value. Your main goal is to set the contract to a final buyer.

Or you are talented for prehabbing.

What is prehabing?

It is an entrance to investment rehabbing.

Or more specific, it is when you buy and place a property, building or land, for resale. You can improve that property’s condition through trivial changes.

Why should you do that?

Because buyers can’t see the latent value or recognize more work and costs and they may not be there for real. Many houses can look in notable bad conditions. A few cosmetics improvements can have a significant influence on the end buyer.

You may choose REIT investing.

Don’t pretend you don’t what is it. We asked you before.

Okay, once again. It is a tremendous opportunity for beginners in the real estate investing world.

Real Estate Investment Trusts (REITs) are ideal for all of you who are looking to earn passive income. How?

REITs have the ability to provide revenue comings. It is known as dividends.

In the same way that investors invest in stocks, you can invest in REITs. Primarily a company owns or supports profit yielding real estate. REITs provide investors to collect all types of benefits. For example, long-term capital appreciation, or profitable opportunity in diversified real estate portfolio.

How to get started real estate investing?

Getting started investing in real estate as a beginner often depends on the investment capabilities, read capital, available. Investing in real estate is an honestly nice idea. After all, who would refuse to make extra money? Making money is so sexy. To be honest, it is not for everyone. Some people are suited for real estate investing but others are not. Remember! Don’t waste your money!

But I have one question for you.

Which real estate investing for beginners strategy suits you the best and why?

Share it with us and other readers.

2nd April 2019
Swing Trading and Day Trading – Make A Difference

4 min read

Swing trading or day trading? Where is the difference?

For some new trader, day trading and swing trading are like two different movie roles.

Day traders open and close many positions in a frame of one day. On the other side, as a totally different character, is a swing trader. Such a trader takes trades that last many days or months.

The different styles satisfy different types of traders. It depends on some factors such as the type of market, how much time they want to spend on trading, or what characteristics they have as traders.

Normally, both methods have the same goal: to make a profit grown on price changes in the market.

First of all, you should know all the features of your trading system. You have to feel comfortable when trade and you must profit from it.

Never ever pick your trading system randomly. Or because it works for someone.

Why is that?

Because the trading system is like a pair of gloves. The only one will suits you the best.

Your trading system must meet your temperament.

It isn’t about that swing trading is better than the day trading. It is all about which method satisfies a trader’s individual goals.

Some traders will adopt swing trading, but others will use day trading.

Day trading is good for traders who want quick returns. For example, a day trader risks 1% of funds on each trade. If there are loses, the trader loses 1%.

What does happen if a trader win?

A trader will make 2%. Do you know why?

Reward to risk ratio is 2:1.

Let’s go deeper!

Assume the day trader wins 50% of trades. And the trader makes, for example, 6 trades in one day. That will be in the final score 3% on the account balance. Yes, minus trading fees.

Well, with making 1% per day the trader will increase trading account by more than 200% per year.

Wait, nothing is so easy!

On the other side of the medal is that you can very fast drain your trading account if you opt day trading.

How?

Let’s see!

You must have winning trades twice more than lost trades. At the same time, you have to win 50% of all the trades you take.

Tell now is it easy!

Swing trading collects gains and losses increased gradually.

The purpose of swing trading is to take larger price moves than it can be found as intraday price performance.

In other words, swing trading has based on the fact that the price does not run in a continuous course.

For you to have a clear picture.

Have you ever see the waves on the ocean?

That’s how the price moves in swings, depending on the short-term price trend and momentum.

The essential concept of swing trading is to enter at or near one swing top and exit at or near the next.

Just like riding the waves. Swing trading is a trading methodology that seeks to capture a swing.

Just like a surfer trying to catch the wave. Swing trading, in essence, is to catch one move in the market.

In an average month, the swing trader could profit 3%, minus fees.

For a one year, a swing trader may gain 36%, which sounds good. Some proponents of day trading will tell but offer less potential than a day trader’s possible earnings.

But swing trading fans will tell that has a much larger profit potential than day trading.

On their benefit, the time frame for trading is larger so the profit targets are also greater.

The truth is if you modify the numbers of trades won, the wins compared to losses will have an influence on earning potential.

Sound logical indeed!

The universal rule, day trading has more profit potential. Especially if you trade with a small account.

Well, everyone would like to trade with a large account.

But there is the catch with day trading.

When the volume of the account increases it is harder to employ all the resources on short-term day trading.

Or think about this!

For example, the percentage of returns decline the more capital the day trader has.

The money returns are increasing, of course! But 3% of returns on $2 million account is still more than 50% on $100,000.

The capital demands

Day trading and swing traders can begin with different sums. It depends on which market they want to trade. There are some differences if they trade the stock, forex or futures market.

If you want to day trade stocks in the US it is recommended to start with $25,000.

A swing trader will start with $10,000 and rather with $20,000 if want to pick a profit from trading.

A lot of money indeed.

But if you want to start day trading on the forex there is no minimum needed for that.

Well, it is advised that traders should start at $500. To swing trade forex, the minimum recommended is about $1,500. But you would like to start with more. You will need the capital that allows you to enter a few trades at one time.

To trade futures as a day trader, you will need about $6,000 more or less.

For example, trading micro contracts may require less.

For swing trader to trade a futures contracts, it is recommended at least $10,000. Even more! About $20,000 or more is better.

This amount depends on the margin demands of the contract you want to trade.

Time frames differences

Frankly, day trading takes up much more time. Day traders ordinarily trade for at insignificant two hours per day.

Are you sure you have 2 hours every day to dedicate to trading?

There is preparation time, too. That means spending three to four hours at the computer.

Swing trading will demand a much shorter time. For instance, a trader is swing trading off a daily chart. Such a trader may find new trades and update orders on current positions in less than one hour.

Even less!

Some swing traders will finish all about trade once a week. That means a one-hour per week, and moreover, not over the night.

They can go to sleep earlier! Or do whatever they want! Go to the cinema! Or have a romantic dinner!

If you prefer to be an unfortunate day trader, you must do day trading while a market is open and hot.

On the other side are swing traders. They can place orders at any time of day. Even when the market is closed.

They are such lucky guys!

The bottom line

We cannot say the one trading style is better. They are just different. Both can be suitable for different needs.

Day trading has more profit possibilities.

Swing trading has a bigger chance of percentage returns.

There is one big difference.

Money demands to start trading are considerably different.

Day trading requires more time than swing trading.

But swing trading demands less stress.

Anyway, your decision will be the last one. But remember, you have to find the one which will suites you the best.

For your profit.

Don’t waste your money!

risk disclosure

29th March 2019
Swing Trading Forex Explained

2 min read

Swing trading Forex is a type of short-term market speculation where positions are held for longer than a single day.

It has relationships to long-term trend following. But you instead are looking for much shorter market moves.

Also, swing trading is a longer term trading style. It requires patience to hold your trades for several days at a time.

It is excellent for those who can’t monitor their charts throughout the day. For those who can dedicate several hours examining the market every night.

The swing trader is actually looking for multi-day chart patterns.

Why?

To achieve bigger price moves or swings than you would typically get from a day trade.

It is possible to start forex swing trading with $1,000 or less. Moreover, with the right plan, it is possible to start making a small income or to grow the account.

The point is that the forex market gives precise control over positions size and risk.

So, even a small account can be traded in the same way a experts trade a large account.

But you have to know some steps that guide you through the process of growing any size forex account.

Yes, you can start with less, but if you want a decent income, you should start with at least $500.

The problem with start with less than $500 is that you’ll be limited on the trades you can take.

On the other hand, $1,000 gives you a bit more space. So you should be equipped to take most of the swing trades.

This is apparently best suited for those who have enough free time to stay up-to-date with what is going on in the global economies.

Swing trading tries to recognize “swings” inside a medium-term trend and enter only when there are big chances of winning.
In general, swing trading is taking trades which last for a day to a couple of weeks.

When you swing trade the point is to spend about 20 minutes each night finding trade set-ups. This happens after the US market close but before the London market open.

You can set your entries, stop losses and targets and go to sleep.

The advantage of swing trading Forex

The advantage is, the risk is managed and the targets and stop losses are set. So there’s no need to continually monitor the trades.

When you set targets longer than stop losses, the math will be done and increase your account.

Even if you gain only 40% of your trades you will be profitable using this method.

The trades last much longer than one day. So larger stop losses are needed to overcome volatility. A forex trader must adjust that to their own money management plan.

There can be many changes in the price during the shorter time frames.

Hence, you will experience trades go against you during the holding time.

It is essential that you are able to stay cool during these times and trust in your analysis.

Forex Swing Trading and Brokers

Before getting into swing trading, it is recommended to have the right type of forex account.

Your account must allow you to trade micro lots.

Why is this necessary?

A micro account allows you to trade in 0.01 lots. That means each pip is worth $0.10 for example in pair EUR/USD.
So, each pip is worth $1.

A standard account expects trading full lots, where each pip is worth $10.

The good thing with a broker that lets you trade micro lots is that you can really adjust your position. Assume you increase your account to $10,000. You’ll still want to be able to trade micro lots. With micro lots, you can adjust your position so you’re risking 1% of your account.

On a $10,000 account, with risk at 1%, you can lose up to$100 per trade. With a 70 pip stop loss, you can take 14 micro lots which give you a risk of $98.

Can you see the difference? Nice!

Trade micro lots and trade with a broker that lets you trade in micro lot profits regardless of account size.

Try to find a broker with small commissions. The spreads could be less than a pip in most pairs. This is perfect for swing trading Forex.

The bottom line

Swing trading is more of a style, not a strategy. The time frame defines this style. There are countless strategies you can use to swing trade. Swing trading is a style that moves over short to medium time frames. It occupies the very short time frames of day trading and the longer time frames of position trading.

The support and resistance are the key concepts behind this style.

Swing trading Forex strategy gives you the choice of following the trend. Also to trade counter to the trend.

If you don’t mind holding your trades for several days or you don’t mind having large stop losses.

You are stable and swing trading Forex is for you.

Don’t waste your money!

risk disclosure

28th March 2019