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.

  • A Diversified Stock Portfolio – How to create?

    A Diversified Stock Portfolio – How to create?

    How to create a diversified stock portfolio 1Building a diversified stock portfolio is just the beginning but an important part of investing. Here is how to do that.

    By Guy Avtalyon

    We already mentioned a diversified stock portfolio.

    ‘Don’t put all your eggs in the same basket’ is probably the most popular saying telling investors about the importance of portfolio diversification. Otherwise, how to spread and reduce risk? 

    The major advantage of the diversified stock portfolio is its ability to protect your entire portfolio from the volatility associated with different asset classes.

    In this article, we look at ways to protect your portfolio by spreading your risk across several different asset classes. Also, some of the many different assets in which you can invest, each with different risk characteristics.

    Where is the advantage of the diversified stock portfolio?

    The risks attributable to assets cannot be avoided. But when they are managed as part of a diversified portfolio, they can be reduced. Individual assets have a bearing on the overall level of risk you are exposed to.

    And the association between the assets has even greater importance. This article considers how a well-constructed investment portfolio should be diversified in a variety of ways. Including overall investment style, a number of individual asset classes, the spread of geographical allocation, and the approach of the fund manager.
    The key is to build a  diversified stock portfolio with a mix of different investments that make sense for your attitude to risk.

    A balanced investment portfolio should hold a mix of equities: stocks, bonds, property, and cash.

    Yes, we know. For some of you, the world of investing is complicated. There are mutual funds, exchange-traded funds, target-date funds, a variety of bonds and fixed-income products and then, of course, individual stocks.

    These days more and more investors are turning to low-cost ETFs. And necessary, there is the question: is it worth taking the time to build an individual stock portfolio? Yes, it is.

    But you have to put in some time and research.

    There are various advantages to individual stock ownership.

    We believe an individual investor has an advantage over professional investors. But only if you are willing to do the homework necessary to understand the company, management, and the industry underlying each individual stock.

    How can you start picking the companies that go into their stock portfolio? Building a solid stock portfolio requires some time, research, and homework.

    What is a well-diversified stock portfolio

    The diversified stock portfolio should have 10 to 30 individual stocks.

    There are 10 stock sectors classified by S&P Dow Jones Indices. These include energy, materials, industrials, consumer discretionary, consumer staples. Also, health care, financials, information technology, telecommunication services, and utilities.

    A general rule is to own two to three of the top companies in each main sector.

    Stock rankings, screeners, and lists can help individual investors in their quest to find the best stocks for their needs. The rankings can slice and dice stock market members up by returns, market capitalization, dividend yield, price-to-earnings ratio, and other criteria.

    Investing in research doesn’t have to be for professional portfolio managers. It is for individual investors too.

    How to diversify a portfolio between growth and value stocks?

    Or between dividend stocks and those focused on plowing their profits back into their operations.

    Diversification is a beautiful thing because it can lower risk without lowering the expected return of a portfolio. This is more or less related to magic by Wall Street standards. Use your research and logic to weed out the stocks that you do not like. Or the companies that have historically lost money due to the competitive pressures.

    It will be good for you to understand the behavioral psychology and economics at play behind the companies you hold in your portfolio.

    For example, knowing the demand elasticity, or how much a change in price will impact the quantity demanded, can be useful in understanding a company or industry’s prospects.

    If the price of gas went up 15% tomorrow, it’s very unlikely there would be a corresponding drop in demand. People need to drive, of course.

    How to establish an investment time frame in your diversified stock portfolio?

    Since you are going to own individual stocks you need at least three to five years. The longer the better. In order to reduce certain volatility.

     

    Hence, to be successful in individual stock investing, you must do your homework. But more importantly, you need to have a steady temperament and be confident in your own convictions and analyses.

    Building your diversified stock portfolio may be just the beginning. But, for the interested and dedicated investor, the payoffs could be well worth the work.

    Picking good stocks requires research, time, and the ability to evaluate many parameters for the stock, industry, and overall economy.

    And while buying a few dividend stocks should earn you some healthy interest income. Your real dividends will be the long-term gains you rack up as you watch your picks grow.

  • How to structure your stock portfolio?

    How to structure your stock portfolio?

    How to structure your stock portfolio? 1The structure of the investment portfolio depends on many factors but risk appetite is maybe the most influential one.

    By Guy Avtalyon

    How to structure your stock portfolio? The answer to that question depends on your attitude to risk. Here are three sample portfolios.

    What is the best structure of a portfolio?

    Laith Khalaf, a senior analyst at UK wealth adviser Hargreaves Lansdown suggests this model of your stock portfolio structure:

    Adventurous investor
    20%: JPM Emerging Markets
    20%: Legal & General International Index
    20%: Man GLG Japan CoreAlpha
    20%: Threadneedle European Select
    20%: Standard Life Global Smaller Companies

    Balanced investor:
    20%: Invesco Perpetual Tactical Bond
    25%: Newton Global Income
    10%: Stewart Investors Asia Pacific Leaders
    25%: Legal & General UK Index
    20%: Baillie Gifford Managed

    Conservative investor:
    25%: Newton Real Return
    20%: Investor Perpetual Tactical Bond
    10%: Legal & General Global Inflation-Linked Bond
    20%: Threadneedle Equity Income
    25%: Troy Trojan

    How you will structure your portfolio depends on are you a defensive, middle-of-the-road, or aggressive investor. This will partly determine where you invest.

    What is a portfolio structure? 

    The portfolio construction is the process of organizing your investments as a whole, rather than piecemeal.

    How can you have the best chance of constructing a portfolio that meets your investment goals?

    At a broader level, portfolio construction should be about structuring your portfolio in a way that stands the best chance of meeting you have stated investment aims within your acceptable level of risk.

    But be careful, well thought out structuring of your assets will have an enormous impact on your long-term wealth creation. Conversely, the wrong structure could cost you in both ongoing charges or unexpected tax liability.

    What factors do you have to consider in deciding on the combination of stocks, bonds, and perhaps commodities to use in building up your retirement portfolio?

    Let’s say that the further one is from retirement, the more risk one can take. Thus at 30, you might have a portfolio of 70% stocks, and 30% bonds. At 50, the ratio might be half stocks and half bonds and at 70, 70% bonds and 30% stocks.

    This model of stock portfolio structure allows for a more predictable and more stable income from bonds. But it does not take into account the characteristics of the individual or the nature of the stocks and bonds. Moreover, not all stocks are equal.

    Structure of the stock portfolio based on risk tolerance

    Find how the structure of the stock portfolio matches your risk tolerance.

    If your stock portfolio at 30 or 50 is loaded with, for example, half small caps with no dividends, mining stocks with low dividends then the need for bonds is higher. Or if the bond portion of a portfolio is loaded with high-yield bonds subordinated debt, the fixed-income portfolio needs to be rebuilt for security.

    As we move from working years during which it is possible to raise savings and make up for investment losses into retirement, the need to cut volatility grows. A mixture of short and long government bonds and corporate bonds can’t compete with the potential of small companies’ stocks to rise. But it does have fundamental security.

    But you can implement some other model of structuring your portfolio. For example, you can buy stocks from developed and emerging markets around the world. And you can own real estate through a low-fee fund as a part of your portfolio.

    If you live in the USA, Treasury inflation-protected securities, or TIPS are a very good choice. Some of these parts will possibly increase and drop and increase again. It will happen at different times and at different rates. So you can rebalance at least once a year to maintain your target allocation in your portfolio.

    David Swensen, chief investment officer, Yale University suggests this, take a look at the image below.

    How to structure your stock portfolio? 2

    How do the fees influence the structure of the stock portfolio

    Fees can make terrible damage to your investment returns.

    Even if you hold the higher-risk, but also, higher-return asset classes. In case of, for example, stocks, you can expect high but one-digit or low double-digit returns over a long time. In fact, Swensen said you can end up losing more than half of your returns. The math is simple, you’ll have to pay 1% for your financial advisor, the additional costs are mutual funds fees which are approximately 1-2%. Finally, you’ll have to adjust your returns for the percentage of inflation.

    The odds, he said, are in favor of index funds. In his opinion, very-low-fee index funds make the most sense for individual investors.

    When it comes to investing there is no such thing as one size fits all.

    Speaking about how to structure your stock portfolio, your portfolio has to be well-diversified, equity-oriented for long-term investors, and efficient in the sense that it is as good or better than other alternatives.

    Portfolio structure depends on how long you want to stay invested 

    When you’re investing for the long run, for example, 20 or 30 years, you are expected to make more money holding a fairly large part of your portfolio in stocks or some other assets that have a high rate of return. That’s because historically, stocks offer greater returns than safer alternatives over the long term.

    But in the short term, stocks tend to be much more volatile. So as you approach retirement age, investment advisers suggest moving more assets to the “safer than stocks” class.

    Let’s say the stock market crashes and you need to spend money out of your portfolio as income in retirement. So, you don’t want to lose 20 – 30% of your savings and to sell your stocks at a lower price. If you’re younger and market crash, you can just stay invested and wait for the market to recover.

    But it isn’t all about age

    How to structure your stock portfolio is also about the appetite for risk. Risk tolerance is different for each investor. Risk-averse investors will prefer to hold a mixture of the stock portfolio and cash. Cash could reduce overall risk. When wealth increases, it could happen a tolerance for risk to increase also. But when you grow older, tolerance for risk could decrease. Each investor needs to find his/her own stock portfolio structure that suits their risk tolerance. That’s the main point.

     

  • The best stocks to invest during the inflation

    The best stocks to invest during the inflation

    Investing in stocks can be the best move during inflation. What are the best stocks for such an environment?
    By Guy Avtalyon

    So, stock markets aren’t going away anytime soon. But let see how stocks act in the period of inflation. They remain a driving economic force in every country in the world. Analysts aren’t quite sure what the future holds for the stock market.

    We will likely see stock markets continue to merge over the coming years. Some have even thought that we’ll see a single global stock market. This appears to be unlikely. Frankly, stocks are not good short-term protection against rapidly increasing inflation, but bonds are worse. But for long-term investors, stocks can be an excellent hedge against rising prices.

    Inflation has been creeping up on the world economy. It isn’t the first time. During the history, we had so many inflations.

    Inflation tracks the rise in the price of goods and services, which in turn shrinks the money’s purchasing power. When inflation rises, people can buy fewer goods, input prices go up, and revenues and profits go down. The result is, the economy slows down.

    But the good news is that you can make money on the market by investing in stocks. Earnings come even in times of inflation.

    How?

    Well, the truth is that too much money chasing too few goods is one classic definition of inflation. Many studies have looked at the impact of inflation on stock returns. Most studies conclude that inflation can positively or negatively impact stocks. That depends on the investor’s ability to hedge. Also, it depends on the government’s monetary policy.

    Stock Options 1

     

    The most important is knowing how to invest in that environment.

    Should you be concerned about inflation and your investments? If you have a substantial portion of your portfolio in fixed income securities, the answer is a definite yes.

    Inflation erodes your purchasing power, and retirees on fixed incomes suffer when they can buy less each passing year. This is why financial advisers caution even retirees to keep some percentage of their assets in the stock market as a hedge against inflation.

    The consumers will not hold cash because their value over time decreases with inflation. For investors, this can cause confusion.

    High inflation can be good, as it can stimulate some job growth.

    What can you do in periods of inflation? You can stay invested and not pay attention to the short-term fluctuations. Sometimes this can be hard.

    One common misconception about a buy-and-hold strategy is that holding a stock for 20 years is what will make you money. Long-term investing still requires homework because markets are driven by corporate fundamentals. If you find a company with a strong balance sheet and consistent earnings, the short-term fluctuations won’t affect the long-term value of the company.

     

    In fact, periods of volatility could be a great time to buy if you believe a company is good for the long-term.

    Companies that raise their prices in line with inflation tend to fare better than others when the cost of living is increasing.

    Energy companies, for example, may perform well in an inflationary environment as they can raise their prices in line with inflation. Infrastructure companies such as those responsible for toll roads, or hospitals, may also do well. They often have long-term government contracts in place with payments linked to inflation, which encourages private-sector investment.

    Generally speaking, cash would be the worst asset class to hold in a high inflationary environment. However, stocks would be a better choice. This is because a company’s revenue and earnings should grow at the same time as inflation. Companies usually pass rising costs to the consumer to maintain their profit margin.

    The concern of rising inflation has recently surfaced as strong employment numbers have caused fears of wage growth. In January, the average hourly pay, for example, in the US jumped 2.9 percent in a year. This is the largest jump in 8 years.

    Companies may increase the prices for goods and services in order to pay for these increased salaries. This element is causing concern for investors. Higher salaries for some can bring a higher cost of living.

    So, what can you do, where to invest, which stock to buy in the period of inflations?

    Oil Stocks

    There is a positive connection between the price of oil and inflation. The consumer price index helps measure inflation in the economy by tracking a basket of goods and services by households. Energy costs in households are part of the consumer price index. When the oil prices increase, it directly affects the energy costs spent by consumers. This leads to an increase in the CPI index and then inflation. Oil stocks always do well in high inflation environments.

    Utilities

    Utilities are defensive stocks. People will need utilities even in a high inflation environment. When operating costs rise for energy companies, in the final instance the consumers will pay them.

    So, the companies will maintain their profit margin. Consumers will have no choice. They have to pay for the newly inflated cost if they want to receive electricity, for example. Demand in utility companies will still be strong even in high inflation periods.

    Healthcare as best stocks

    Healthcare is also a defensive stock. They are considered safer investments as people will always need healthcare. Even when consumer budgets are poor. During the inflationary period, investors will sell out high-risk stocks. They will prefer to buy into low-risk stocks because these are considered safer. People will always need medicine and medical treatment. They will give priority in spending on healthcare as opposed to less crucial goods and services.

    Gold Stocks

    When investors notice high inflation in the economy they want to turn to safe-haven investments such as gold stocks.

    Gold traditionally is an investment held during the economic instability. High inflation causes investors to want to safeguard their investments by buying gold stocks.

    Of course, holding cash in bank accounts is a bad idea in a high inflation environment. Because the purchasing power of cash is eroded by inflation.

    Basic goods/consumer staples

    For instance, companies with higher energy costs from increased transportation costs or higher operating costs will pass these costs to the consumer. Good and services will become more expensive. Consumers will become more selectable when purchasing goods and services because they have less buying power. But, basic goods or consumer staples will still be in demand in a high inflation environment. Even if the costs increase, people will still buy bread and milk. Even if such companies increase the price of their goods, consumers will need to buy it. Consumers will not buy non-essential goods and services such as a new car or furniture. They will only spend what is necessary. That kind of company is a good opportunity.

    During the period of inflation never invest in discretionary stocks.

    Material Stocks

    Basic materials companies are involved in the exploration, development, and processing of raw materials. Hence, many times target specific resources, such as gold, silver, and crude oil. This sector also includes companies that run refineries and plants to develop refined materials. The dividend yields within this sector are above average in comparison to the wider market.

    If you’re looking to invest in dividend-paying basic materials stocks, you may also be interested in dividend-paying basic materials exchange-traded funds (ETFs). These funds offer a diversified dividend payment based on a basket of basic materials stock holdings.

    What we want to show is that there is no solution to inflation, but there’s the reason for hope. And for profits and returns of course.

    You might find these interesting too:

    >>> Cryptocurrencies a Powerful Tool Against Hyperinflation?

    >>> Are we in an overpriced market?

    >>> How to improve risk management in trading?

    >>> How to trade stocks during recession 

    >>> How to Find a Stock Worth Trading?

  • Leading Stock Exchanges In The World

    Leading Stock Exchanges In The World

    3 min read

    Leading Stock Exchanges In The World
    There are two basic types of stock markets:

    1. physical location exchanges, which include the New York Stock Exchange (NYSE), and
    2. electronic dealer-based markets that include the Nasdaq stock market, the less formal over-the-counter market, and the recently developed electronic communications networks (ECNs)

    They are the world’s two leading stock exchanges.

    A Stock market or exchange is a facility where people can buy or sell stocks, bonds, and securities through brokers and traders. Most often the traditional Exchange floor is where the selling and buying take place.

    However, modern trading is now also done through electronic networks for its speed and lesser cost.

    But there is the place where we can be faced with some problems.

    The dark pools, electronic communication networks, and alternative trading systems are also using as trading locales.
    Buyers and sellers are stock investors who may profit or lose capital depending on whether there is a bull or bear market, respectively. The stock market is usually preferred by investors for transparency.

    As of April 2018, the New York Stock Exchange ranked as the largest by market capitalization with a value of tradable shares amounting to 23.14 trillion U.S. dollars.

    Let’s say several words about each type of markets.

    The physical location exchanges are formal organizations. They have tangible, physical locations and trading in designated securities.

    There are exchanges for stocks, bonds, commodities, futures, and options.

    The physical location exchanges are auction markets with securities going to the highest bidder. Buyers and sellers place orders with their brokers who then execute those orders by matching buyers and sellers.

    Although specialists assist in providing continuity to the markets.

    The electronic dealer-based market is consists of hundreds of brokers and dealers who are connected electronically by telephones and computers.

    The dealer-based market facilitates the trading of securities that are not listed on a physical location exchange.

    A dealer market includes all facilities to conduct security transactions not made on the physical location exchanges.

    These facilities include:

    1. the relatively few dealers who hold inventories of these securities and who are said to make a market in these securities;
    2. the thousands of brokers who act as agents in bringing the dealers together with investors; 
    3. The computers, and networks that provide a communication link between dealers and brokers. Dealers continuously post a price at which they are willing to buy the stock (the bid price. Also, a price at which they are willing to sell the stock (the ask price).  The ask price is always higher than the bid price. The difference (or “bid-ask spread”) represents the dealer’s markup or profit. 

    More about the leading stock exchanges

    At the end of April 2018, the NYSE is the largest stock exchange operator by market capitalization. The total value of tradable shares amounting to 23.14 trillion U.S. dollars.
    Leading Stock Exchanges In The World 1
    That is three times larger than the second largest operator, NASDAQ.

    NASDAQ was the first stock market to start trading online. But NYSE is the first global equities exchange.

    NYSE exchange has successfully grown into the powerhouse that it is today, due to a series of international mergers. The

    NYSE merged with Euronext. That was the first integrated cross-border exchange. Now, NYSE trades almost twice as many foreign companies than NASDAQ. 

    The interesting fact is that the world’s two largest stock exchanges lie only a few minutes apart in New York City, United States.
    The New York Stock Exchange founded on May 17, 1792, is the world’s biggest stock exchange in trade value and has a capitalization of $19.223 Trillion USD. Notable market events have included the 1929 Wall Street Crash, the 1987 Black Tuesday, and the 1997 mini-crash.

    YOU WOULD LIKE TO READ The minimum amount of money you need to start investing in the stock market

    The second one on this the list is the tech-heavy NASDAQ. It is founded on February 4, 1971, also in New York, with a market capitalization of $6.831 Trillion. It is owned by NASDAQ, Inc, as the first exchange to use the electronic system in trading.

    The other leading stock exchanges are the following:

    Third on the list is the London Stock Exchange Group in the United Kingdom and Italy founded in 1801 and has a capitalization of $6.187 Trillion.

    Leading Stock Exchanges In The World 2

    Notable market events have included the 2007 acquisition of Borsa Italiana, the 2009 acquisition of Millennium Information Technologies, Ltd., and the 2011 merger with TMX Group.

    Asian leading stock exchanges

    There is also the Japan Exchange Group in Japan founded on January 1, 2013, with a market capitalization of $4.485 Trillion.

    It was formed with the merger of the Osaka Securities Stock Exchange and the Tokyo Stock Exchange. Notable market events have included the 2013 JPX was launched.

    Fifth on the list can be the Shanghai Stock Exchange in China re-established on November 26, 1990, after a 41-year hiatus. With a market capitalization of $3.986 Trillion.

    Memorable market events have included the 1891 founding of the first Chinese stock exchange. At the year 1904 registering of it as Shanghai Stock Exchange. In 1941 it stopped operations due to Japanese occupation and the 1949 closing during the Chinese Revolution.

    Also, there is the Hong Kong Stock Exchange in Hong Kong (SAR China founded in 1891 with a market capitalization of $3.325 Trillion. It is owned by Hong Kong Exchanges and Clearing. 

    In 1914 renaming of it as the Hong Kong Stock Exchange, and the 2000 HK Exchanges and Clearing acquisition of the HK Stock Exchange.

    And the Shenzhen Stock Exchange in China founded on December 1, 1990, with a market capitalization of $2.285 Trillion. It also owns a tech exchange, ChiNext, founded on October 23rd, 2009. 

    Canadian leading stock exchanges

    Also, TMX Group in Canada founded on May 1, 2008, with a market capitalization of $1.939 Trillion.

    It also owns the Montreal Exchange, NGX, TSX Alpha Exchange, and several other exchanges. The TMX Group is founded after the acquisition of Montreal Exchange by TSX Group.

    European leading stock exchanges

    Of course, the first is the London Stock Exchange Group. But, there are also the Euronext, United Kingdom, Belgium, Portugal, France, and the Netherlands with a market capitalization of $3.321 Trillion.


    Notable market events have included the 2007 merger with NYSE, the 2013 International Exchange acquisition of NYSE Euronext, and the 2014 Euronext IPO.

    The Tenth is the Deutsche Borse AG in Germany came in 1992 with a market capitalization of $1.762 Trillion. It runs the Frankfurt Stock Exchange and the Scoach. It is located in Frankfurt.

    You would also like to know more about the Australian Stock Market

    The bottom line

    The stock exchanges in developed countries, as well as those exchanges in developing countries, serve as measurements of where the national economy is headed.

    YOU WOULD LIKE TO READ How to research and choose stock?

    Moreover, the largest stock exchanges play an important part in the world economy. The stock exchanges are A dealer market includes all facilities to conduct security transactions not made on the physical location exchanges. for the economic development of many developing countries.

    In developing countries, there are also stock exchanges.

    And the stock exchanges in the developed countries are mature and are the major backbones of that country’s economy.

    Financial market growth equals higher standards of living as well as create more jobs. Mature financial markets support funding international projects. This funding mitigates poverty.

    Risk Disclosure (read carefully!)

  • Why you should not invest in bitcoin under any circumstances

    Why you should not invest in bitcoin under any circumstances

    2 min read

    Bitcoin mining, is it profitable
    Since, yet un-identified, Satoshi Nakamoto published the bitcoin white paper, back in 2008 his brain-child has traveled the road of both successes and tribulations. From the all-time high price of $19,666 to being singled out as a vehicle for the expansion of criminal empires. 

    But why is that? Why Bitcoin’s price so volatile?

    Through all that time it has attracted both adulations of proponents and critique of detractors.

    The ups of bitcoin have been high and fuelled the growth of wealth of the number of investors. But its lows and flaws have been such that they seem like a deal-breaker for many.

    Before you commit your money to an investment, you must as a rule of thumb first investigate what is the thing they are pouring their money in.

    One bitcoin is in simplest terms an encrypted part of the list of all ownership changes of all bitcoins in circulation.

    Bitcoin has no intrinsic value

    The proponents of it claim that it is nothing similar to fiat currencies.

    But it has no intrinsic value to draw. It functions as a store of value from the consensus of its user. That is one of three defining characteristics of fiat currencies.

     In other words, the bitcoin is currency only because miners accept it as payment for encrypting the transactions. Same as the US dollar is the currency of the USA because the US Treasury and IRS will accept only dollars as payment of taxes.

    This point of contention is the obvious example of myopic attitudes of its proponents.

    They often make outlandish claims that it could cure all ills and ailments of modern civilization. From hunger in Southeast Asia to predatory practices of large financial institutions in North America.

    The reality of bitcoin is much less rosy. In truth, it just exacerbates some of the worst economic inequalities which are plaguing human civilizations for ages.

    In other words – Bitcoin doesn’t have real value, but we do know that it’s worth more than $0. That’s why you shouldn’t invest in bitcoin.

    The first obvious problem with bitcoin 

    As time passes the difficulty rate of mining is going evermore up. It becomes more and more expensive to enter the mining game for your average Joe.

    Because the availability of bitcoin supply is finite, this also spells ever-growing price of bitcoins. That is certain to price-out your same average Joe from investing in trade of it.

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    Thus, as a source of income and wealth, bitcoin has become inaccessible to anyone but the rich and powerful.

    Because of the underlying technology of bitcoin, the only way to invest in it is to invest in trading.

    Many critics, such as Paul Krugman, compare it with the reimplementation of the gold standard because of finite supply.

    Compared to bitcoin gold has two saving graces.

    First, gold is also used in many industries and medicine. Thus, in case of a market crash, it can still be sold for a certain price as raw material.

    Why you shouldn't trade or invest bitcoin under any circumstances

    While contrary, bitcoins cannot.

    Second, if investing in gold mining, i.e. mining equipment, such investment, in the case of depletion of gold deposits, could be repurposed for other activities.

    On the other hand bitcoin mining equipment, due to technological advancements, becomes obsolete in two-year cycles. Hence, it can become thousands of dollars paid for a paperweight.

    Bitcoin is also very susceptible to speculative bubbles.

    Do you remember the incidents since 2013, when a single person managed to manipulate the price to rise from $150 to almost $1,000? And many subsequent price manipulation?

    That showed that the price can be easily inflated leading to financial losses to many and gains for few.

    After the bitcoin crash from its peak, many economists have spoken loudly about the speculative nature of it.

    Some even went as far as saying that scammers and charlatans had exploited retail investors’ fear of missing out. That combined with a relative lack of knowledge about cryptocurrencies to fuel the bubble and scam the investors.

    Proponents of Bitcoin point out that it is anonymous and not controlled by any central body.

    But these are not features, but built in bugs. Because there is no central authority which governs the authentication of ownership, bitcoin is not only susceptible to theft and fraud, such as the infamous Mt Gox case.

    But also to hacking attacks, such as the recent 51-percent attack on Ethereum Cash which resulted in many exchanges blocking it for trade and theft of around $450,000 from legitimate owners.

    If one individual or group of miners has control of more than half the mining capacity, they can rewrite the whole ledger of historical transactions of bitcoins, the blockchain. And hence, very quickly become owners of any bitcoin currently in circulation.

    Does it mean that actually, we are investing in their wealth instead of in our own? This can be a very strong reason why you shouldn’t invest in bitcoin.

    Though this scenario is very unlikely in the case of bitcoin, it is not impossible.

    Only the willingness of people to pay for it defines both the highest and lowest price of bitcoin. Also, there are the aggressive efforts of its proponents to advertise it as the cure for all the ills. That’s why many notable economists have gone as far to call it affinity fraud and that is for some people the reason why you shouldn’t invest in bitcoin.

    Why you shouldn't trade or invest bitcoin under any circumstances 1
    And any potential investor needs to be wary of how much growth of bitcoin price is fuelled by news of its growth.

    And the fact that cryptocurrency related exchange traded funds has the highest industry-wide premiums and expenses ratios.

    In some cases going as high as 50% and 2%, respectively.

    For the end, it must be noted that many proponents falsely proclaim that bitcoin is the solution for the alleged problem of evil central banks steals money from people by debt creation and similar ways.

    In reality, because of the non-existent central regulatory body, bitcoins are by design unsafe and almost fraudulent in nature.

    Because they are assets similar to currency, it is almost impossible to distinguish them from reimplementation of the gold standard. 

    And the fact is that techniques of financial and cryptographic attacks do not get less, but more effective with time.

    The bottom line

    In essence, Bitcoin is taking the financial system some hundred and fifty years back in time while removing all regulatory protections that were evolved in that time.

    It was a division of such regulatory protections in a Red Queen’s race of a sort, with equal overall gains but very small relative ones.

    Some say that only automatic trading software (like this) can trade successfully in the Bitcoin industry, and it’s only for a limited time.

    So without them, any investor is absolutely at mercy of very wealthy and unscrupulous actors, who historically had a tendency to both manipulate bitcoin price and even outright steal them. Do you need a stronger reason why you shouldn’t invest in bitcoin?

    Risk Disclosure (read carefully!)

  • Forex Trading – Simple Tricks to Master it

    Forex Trading – Simple Tricks to Master it

    4 min read

    Forex Trading - Simple Tricks to Master it

    Forex trading could lead to high returns of investment. This article will explain how

    Forex trading – the CONCEPT:

    Forex represents the foreign exchange/currency market. The word forex itself is made of two English words: foreign and exchange and signifies the purchase of currencies from different countries.

    Forex Trading - Simple Tricks to Master it

    Unlike other stock exchanges, Forex does not have its physical seat in a city. It exists in an electronic network consisting of large financial institutions.

    Also unlike other financial assets – Currency needs to be at a balance point!

     

    Why Forex industry has to be at a balance point (UNLIKE STOCKS for example)?

    Because let’s think about a country, like the USA. Its currency is USD and you can invest your money on USD comparing, say, Euro. So if the USD is increased (or Euro is decreased) you gain a profit.

    But inside the USA – the interests are different.

    Forex trading is an industry of importers and industry of exporters.

    Let’s say I’m an importer that lives in the USA, and I import apples from Mexico. And just for the explanation, we say that 1USD (US Dollar) = 2 MXN (Mexico’s currency).

    Now I make a deal with my fellow Mexican that I buy apples for the worth of 2 million MXN (and it costs me 1 million USD).

    Now, if the USD will get stronger, and now we say that 1 USD = 3 MXN.

    See? I’m losing money because I could have bought my goods for a lot more money at the same price I spend (1 million Dollars).

    But let’s say it’s the opposite – I’m the exporter. My fellow Mexican buy from me apples at the same original deal. This means he buys from me at 2 million MXN and I get 1 million Dollar. But then, the Dollar is rising and now it’s worth 1 USD = 3 MXN. He still buys at 2 million, right? So now those 2 million worth approx. 0.67 million USD. Now I’m LOSING money because of MY OWN currency worth more. That’s Forex. It has to have a balance point because if not we’ll have our own people losing.

    Today, Forex is the largest financial market, which has a daily turnover of around $ 5.5 trillion a day. You can complete this whole process online.

    The term currency market means the sale of one currency with the simultaneous purchase of the other.

    As currency pairs are traded, in order to profit from the shift in the exchange rate, you need to buy the currency that you think will strengthen and sell the other.

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    There is no need to wait for a growing market to profit. At any moment, one currency will strengthen in relation to the other.

    The Forex market is constantly creating opportunities for investment.

    Since nothing concrete and tangible anything is bought and sold, this type of trade can be a little confusing. You should think that you are buying a part of the value of a country.

    If you buy a Japanese yen, you are buying a part of the Japanese economy that is in direct correlation with what the market thinks about the current and future health of the Japanese economy.

    Generally, the established exchange rate of the two currencies is a ratio that reflects the state of one economy in relation to the state of another economy (the state, the currency).

    What Do You Know About Forex Trading? 5
    Forex is opened 24 hours a day, except on weekends, so that Sunday trading starts on Sunday from 21:15 CET and runs until Friday at 23:00 CET. During the day there are several time intervals that coincide with the working hours of the world’s largest stock markets.

    Who trades on the FX market?

    Forex traders can be classified into two groups, hedgers and speculators.

    Hedgers: governments, companies (importers and exporters) and some investors who are exposed to exchange rate changes.

    Speculators: This group, which includes banks, funds, corporations, and individuals, creates artificial pressure on the course in order to profit from variations or price movements.

    YOU WOULD LIKE TO READ about Algo/Algorithm trading in financial markets

    Basic terms of Forex trading

    Pip – Represents a change in the ratio of the currency by one decimal. It is the smallest unit change course. Pip is the last decimal in a currency relationship

    Stop and Limit – Orders –  Often the trader wants to limit the loss in the position he has opened (in that case he sets the “stop” order). Or the trader wants to take profit at a certain level, which is acceptable to him/she (in this case he sets a “limit” order).

    Long – Used for the purchase order

    Short – Tension used for a sales order

    Bid – Bid price

    Ask – The price that is claimed

    Buy – Shopping

    Sell – Sale

    Spread – The difference between the sale and purchase price

    Chart – Graph

    Timeframe – Time period

    Leverage – Multiplies the amount of money you invest

    Candlestick –  Candlesticks show that emotion by visually representing the size of price moves with different colors. Red means the starting price was higher than the closing price at a certain time. Green means it ended higher than the starting point.


    How to read candlestick graph: To every time period

    Open – The price of an asset at the start of a time period
    Close – The price of the same asset at the END of the same time period
    High –  The highest price the asset reached during that time period
    Low –  The lowest price the asset reached at the same time
    Time period – Can be from 1 minute to one year

    What is needed to trade on Forex?

    Before you start trading the currency, you need to open an account with a Forex broker. Our recommendation is that before you decide on trading on Forex, open a demo account with one of the brokers.

    You can use a trustworthy Forex broker. 


    So that through the use of the platform, you will be able to monitor market activities and learn more.

    YOU WOULD LIKE TO READ about the best Forex trading styles

    Conditions for Success Forex trading

    You must have a good knowledge of technical and fundamental analysis, as well as managing your account. You should also know the psychological aspect of the trade and that you are disciplined. Also, in Forex trading, you should learn about the country you’re betting on or against.

    To be able to trade Forex successfully, there is a whole world of education, really extensive analysis. Also, the countless hours of tracking a very large number of relevant and potentially relevant information.

    YOU WOULD LIKE TO READ How To Choose The Best Forex Program

    All without any guarantee that the right decision will be made.

    So once again, the investment rule has been confirmed: high risk must be taken to achieve high income.

    Risk Disclosure (read carefully!)

    67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether
    you can afford to take the high risk of losing your money.

  • Forex Trading Program – How To Choose The Best

    Forex Trading Program – How To Choose The Best

    2 min read

    Forex Trading Program - How To Choose The Best
    Forex trading program must help you to raise your trading results to a higher level. How to choose the most useful Forex trading program can be very tricky.

    Hence, we will talk about tools with which you can raise your trading results to a higher level. You will find out how to make the information more efficient, how not to forget anything, how to quickly learn and how to not spend too much time solving the simplest tasks that the trader faces daily.

    Forex trading program – Forex Expert Advisor (FEA)

    Forex Trading Program - How To Choose The Most Useful 1

    It is the Forex trading program for analyzing testing advisor results.

    First, we will talk about programs that make it possible to better understand the results of testing advisor, Expert Advisor.

    The Forex Expert Advisors program for the MetaTrader 4 platform, for example, is written in the MQL4 programming language. This programming language is specially developed for writing an “expert advisor” program.

    Expert Advisors are very flexible pieces of software that can take any information into account that is available on the MetaTrader platform. They are written in their proprietary programming language called MetaQuotes Language Version 4.

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    So, a trader can easily and simply use the program in his trading system, in online mode 24 hours a day.

    If you are a beginner, you can think that trading with software programs is a sophisticated thing. However, it is not. Try to use FEA for a month, and for the trading system you’ve previously developed. It will be quite enough to get expert consultants experience.

    Where do I get the FEA?

    Well, there is more than enough choice on the Internet, but it’s best to seek advice from your consultants because they will have the best solution for you.

    Forex trading program – SQ EA Analyzer


    First of all, let’s emphasize that this Forex trading program is not free, it costs and is called QuantAnalyzer. However, there is a demo version that does not, of course, have some of the “most sophisticated” features. But allows a detailed analysis of the results of the adviser you received through the terminal, as well as the creation of portfolios from them. Also, the program enables various tests of stability and reliability.

    They do have a visual interface. With StrategyQuant you run a generator for strategies, and it comes with some entry rules such as RSI7*MACD/MA13, or any other combination that it found.

    StrategyQuant is one of many algorithmic trading software.

    Algo trading is the only programmatic version of your strategy of trading. If you have a strategy, you can create your own EA or hire somebody to develop a strategy for you.

    However, High-Frequency trading is the strategies which human could not perform or computer program perform better.

    Forex trading program – Report Manager

    Forex Trading Program - How To Choose The Most Useful 2
    This is a completely free trading program, with extremely simple features. In fact, this program can only combine several test files EA into one resulting file.

    No additional parameters, no tests!

    It is suitable for those who want to see the ultimate balance of adversarial work on all couples together or can serve as a quick test adviser for all tools!

    Good, isn’t it?

    Report Manager is the web-based application included with Reporting Services that handles all aspects of managing reports.
    Why bother with using Report Manager?

    The best answer is that those who develop reports may not have the necessary permissions to deploy all reports to the production server. When a report is ready for deployment, you may need to hand it off to a person who has the permissions to deploy to the production server and that person doesn’t want to use BIDS. Most admins are not developers and what they want is the ability to script out deployments or at least use a tool that isn’t developer-centric.

    Report Manager provides the capability to deploy data sources and reports by using a simple browser-based interface.

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    Information technology and management science staff members often are key partners with financial managers and financial analysts in the development and maintenance of management reporting systems.

    In many cases, however, management reporting systems are constructed and maintained strictly using desktop computing.

    They have built-in Excel spreadsheets and running on personal computers. Rather than programming in mainframe environments.

    The development of management reporting systems often faces hurdles related to key analytical issues, such as:

    • Internal transfer pricing methodologies
    • The attribution of corporate overheads to individual products or clients
    • Disaggregating changes in client assets into the separate impacts of changes in market prices (i.e., investment performance) and of net deposits and withdrawals

    In most cases, these analytical challenges are amenable to multiple methods, each of which has drawbacks of its own, and is not demonstrably superior in all situations.

    Forex trading program for manual testing strategies

    Forex Trading Program - How To Choose The Most Useful 3
    We can say that it is generally accepted that traders in financial markets can be divided into two groups: supporters of good old-fashioned manual testing and amateurs – fans of automatic trading. However, although when traders know their trade strategies, they must first test by hand.

    Luckily, for manual testing supporters, there is the Forex trading program that allows testing their systems on historical data.
    Also, programs of this type work perfectly as simulators for the rapid development of trading skills.

    Manual testing has to be exploratory. A lot of teams prefer to script manual testing so testers follow a set of steps and work their way through a set of tasks that are predefined for software testing. This misses the point of manual testing. If something could be written down or scripted in exact terms, it could be automated and belongs in the automated test suite.

    Real-world use of the software will not be scripted, thus testers must be free to probe and break things without a script.
    Software testers are always learning but we cannot always quantify it.

    There are many aspects to software testing. It does not always involve using the product. It is not just about finding bugs. Testing can start around the requirements stage.

    Thinking about what the product should do, where risks could be is all part of testing.

    Forex Tester


    This brilliant program is very similar to the MT4 terminal. It allows the manual test system to run. If you are just trading online – in that case, press a couple of buttons, place the commands and proceed further. In that case, you can stop, accelerate or slow down the timeline. At the end of the test, you will get the result of your store.

    The only disadvantage of this program is the complexity of using copyright indicators.

    The fact is, there are classic indicators, different graphical setting tools. But if you use an external indicator, you need to overwrite it in the programming language.

    Another disadvantage is that this Forex trading program is not free – it costs about $ 100. But it isn’t too much.

    How does it work?

    Forex Tester simulates the Forex market with unequaled realism. You can test strategies and train your trading skills on years of data in just a few hours. This strategy tester works with the recorded price movement of the real Forex market. Like a recording of music, you can jump forward, pause or jump right to the interesting moments. You can go back to any point in time.

    Also, you can restore all your open trades, trade history, and account balance in this simulation.

    You can keep a trade journal and export your trade log for analysis on Excel or other programs.

    There’s no need to rely on estimations.

    One important note,  amateurs have to rely on assumptions and believe what others tell them. Professionals, however, make their decisions based on facts. Forex Tester delivers the hard facts about your strategies. If a strategy is not profitable, you will find that out quickly with Forex Tester.

    Remote Management Software

    Forex Trading Program - How To Choose The Most Useful 5
    Nowadays, watching market movements over a tablet or phone is not at all difficult. These devices have enough memory and processing power to install special applications or use web accounts that are used by virtually all brokers.

    Remote desktop software is really useful for lots of situations.

    Generally, remotely accessing a computer requires that a piece of software be installed on the computer you want to connect to, called the host. Once that’s done, another computer or device with the right credentials, called the client, can connect to the host and control it.

    Don’t let the technical aspects of remote desktop software scare you away. The better free remote access programs require nothing more than a few clicks to get started. No special computer knowledge required.

    However, this is not always the most appropriate.

    For example, sometimes you must have instant access to your home computer to disconnect automatic trading due to instability on the stock market. In this case, salvation lies in a program called TeamViewer.

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    This Forex trading program is available both on PCs and on smartphones. You need to install the program on all your preferred devices and get something like a network of work machines with the ability to access each of them via your smartphone.

    The bottom line

    If you want to succeed in a tough business such as trade in financial markets, you will have to spend a lot of time, among other things. It increases the chances that you will finish the race successfully. For this very reason, we suggest you pay attention to the presented Forex trading program and consider them in order to choose the one that suits you best and with which you feel the most comfortable. 

    Risk Disclosure (read carefully!)

  • Forex trading styles

    Forex trading styles

    4 min read

    Forex trading styles 6

    the image is taken from www.babypips.com/

    Trading in the Forex market recognizes and classifies different trading styles.

    What typically separates the Forex trading styles is the length of time you intend to be in a trade, the timing of your entry. Also, in some cases, the frequency of the trades. When you trade it is very important to recognize different Forex trading styles.

    Precisely because of the fact that there is a wide field of choice of tactics and strategies for trading and analysis of the currency market.

    Long-term development and improvement of basic and complex trading methods, certainly,  resulted in the creation of many highly productive trading strategies. That further created styles and trader tactics.

    However, any attempt to find a unique trading style or a universal technical indicator for establishing a winning form is a completely wrong approach to the trading methodology itself.

    Building own Forex trading styles

    Building your own style of an individual finds its structural elements in the fundamental study of economic and technical factors. As well as the skills of recognizing patterns, by understanding the methodology of each of the styles that are widely known and recognized in the Forex market.

    Talking about the success of trading on the Forex market, for the special reason, this time we use the opportunity to point out the important fact of each of the styles. It’s basic setting, actually aims to define the way in which to better manage the investment in the Forex market.

    Every evident difference between the styles, which we, at first sight, perceive, is essentially a model for the tactic and trading method that is fundamentally used, which better adapts to the personal type of trader.

    In concrete terms, fundamental and technical analysis, with many of their indicators, multiple affect psychologically different types of personality.

    The essence of the psychological analysis of the currency market, shapes and naturally establishes certain types of behavior and Forex trading styles. Together with the mutual agreement with other analytical factors.

    Therefore it is quite clear that before adopting any of the Forex trading styles, very detailed knowledge of all of its methods is important.

    As well as ways to apply the principles in practice. It is very important.

    Given that the market is “live” and especially mobile in periods of high volatility, the demand for the creative and research mentality of the trader is especially evident.

    Good knowledge of the methodology of the adopted Forex trading style allows to trade “by clichĂ©”, in terms of using technical tools and applying familiar tactics. But there is certainly a situation in which our personality dominates. It is where to choose the decision to enter/exit the position!

    All individuality and arbitrariness of the moment of entry/exit from the position are just one of the factors of the complexity of the style of trading choices.

    Also, the selection of one or more indicators, when making the analysis and the process of tracking changes in the market. And the specific way of perceiving their application begins to define the trader to leave creativity out of the framework of strict templates.

    In this sense, any upgrade of the tactics brings new results and favorable trades, and thus forms a trader’s style.

    One note, each tactic has its advantages and disadvantages. Before we adopt some of the styles, we need to know that there are many paths to success. So it is important for each of the styles to see the basic settings that have proven successful over many years of usage. In the case of the “News” style of the trader, we will use all of his positive aspects to show the most frequently used tactics, along with the graphic illustration.

    Trading with this Forex style as a basic advantage has the fact that it is known, in advance, that the market will start at a previously given time.

    „News“ trader as one of Forex trading styles


    news Forex trading style

    The graph shows an example of “news” trading. That means trading in the publication of economic news. The most characteristic of this style is that the strategy offers trading performance in a short time interval.

    This is the most affordable style is exactly for those traders who do not have time to do this job for a full-time job.

    Following the chart, we notice the first phase, where the bounce form appears, due to uncertainty about the outcome before the news release itself. In the second phase, there is a breakthrough in the level of resistance/support, which leads to a sharp price movement and opportunity for profit. After the initial impulse, just when he reaches the maximum of his movement, there is an attempt to return the price back.

    These stages are part of every market reaction in the publication of economic news, and trading strategies at these stages are known as trading on “breakthrough”, “riding” by bull or bear, playing on both sides at the same time – “hedge”.

    Hedge tactic as one of Forex trading styles  


    Forex trading styles 2    hedge Forex style

    Before announcing the news, entry into the position is done in both directions, sell and buy, at the same time.

    Once the news is published, the trader leaves the “losing” position, while retaining a profit-making position.

    Primarily, this strategy offers avoiding the risk of making a failure in the decision to predict the price trend.

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    Another advantage is that there is no limited choice of the currency pair because all currencies are subject to news releases. The aggravating circumstance of this tactic is reflected in the skill and ability of the trader to quickly make a decision to retain the “winning” position. The past performance does not guarantee future results, you have to remember this.

    Depending on the planned trade, it can be considered a good result of a loss of up to 20 pips. But the trend in the opposite/positive direction is not bad, that is, a favorable trade achieves more than the lost 20 pips.

    You have to decide is hedging for you.

    It’s like driving a Ferrari! It is not for everyone.

    If you are considering using Forex hedging strategy then you need to understand what you are getting into.

    Regardless of what you have read before, there is no such thing as a surefire way to profit with hedging.

    Every benefit of a Forex trading style has a corresponding drawback.

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    When done correctly, you will have consistent returns and it is the biggest benefit of hedging.

    Low returns per month are the biggest downside of hedging. So you will need a fairly big account or trade for investors if you want to trade it full-time.

    So, once again. What is hedging?

    Hedging is when you hold a long and short position in the same currency pair, at the same time. It is also one of the Forex trading styles.

    This may not make sense at first. You will not make any money if you do this.

    But hedging is a great way to limit your risk, while the market figures out which direction to go. When the market shows its true face and starts trending you can start to profit from your winning trades. The most important, you will minimize the losses from your losing trades. Also, you can use the partial hedging to reduce your loss if you are wrong about a directional trade.

    Nobody knows, with 100% precision, what the market will do next. Therefore, holding long and short positions at the same time can allow you to profit from price movements in both directions.

    Trading on the breakthrough is one of Forex trading styles


    Forex trading styles 3    breakthrough trading style

    This Forex trading style is a tactic that follows the price trend on the news release and the return after the news. It is an entering the position, after the announcement of the news, and in the direction of the line break, in order to keep the position until the end of the movement.

    The return after the news is part of the strategy, which after reaching the end of the first movement, with the help of Fibonacci retracement, performs the trade in the direction after a return.

    A breakout can be an extremely profitable trading opportunity.

    This strategy is used by adventurous traders. They study to identify patterns in resistance levels. Hence, they will often try to buy security when it breaks above a level of resistance or below a level of support.

    A breakout is a situation in which the price of an asset breaks through a level of resistance. And at the same time, increasing to an unprecedented price. When the resistance level breaks through, that new peak price becomes the next level of support when the asset experiences a pullback in price.

    Riding on a bull or a bear as one of Forex trading styles


    Riding on a bull or a bear

    This is one of Forex trading styles  (the expectation of the results – bull / buy or bear/sell) is treated as one of the most aggressive. So it is mandatory to set up a stop-loss (SL) order. Also, it is advisable to limit the profits of the take-profit orders (TP).

    That’s because of complexity prediction of the main trend and level of its movement.

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    The great help, of course, is good information and governance by fundamental analysis. It is crucial to determine the trend of price trends before announcing the news.

    How to profit in Bear markets

    A bear market is defined as a drop of 20% or more in a market average. Generally, bear markets occur during economic recessions or depressions, when pessimism prevails. But amid the rubble lie opportunities to make money for those who know how to use the right tools. 

    And to choose the best Forex trading styles.

    So, how to profit in bear markets:

    Put Options.

    A put option is the right to sell a stock at a strike price until a certain date in the future. It is the expiration date. The price you pay for the option is a premium.

    The value of the put option rises when the underlying stock falls.

    When the stock falls below the put’s strike price, you can exercise the right to sell the stock at the higher strike price. Also, you can sell the put option for a profit.

    Short positions.

    Taking a short position, or short selling is the situation when you borrow shares. You are selling them because you expect that the stock will fall in the future. You buy shares at a lower price to cover the short position and make a profit on the difference.

    For example, you want to short some stock at $40 per share. The stock falls to $15, and you can buy the shares back at $15 to close out the short position. Your overall profit, therefore, is $25 per share.

    Short ETFs.

    A short exchange-traded fund (ETF), gives returns that are the inverse of a particular index. For example, an ETF that is inverse to the Nasdaq 100 will drop about 30% if that index rises by 30%. But if the index falls 30%, the ETF will rise proportionally. This inverse relationship is appropriate for investors who want to profit from a downturn in the markets. Also for investors who wish to hedge long positions against such a downturn.

    How to profit in Bull markets

    Bull markets are periods of economic growth and financial optimism. How may you profit in such periods:

    Call options.

    A call option is the right to buy a stock at the strike price until the expiration date. Calls go up in value as the underlying stock’s price rises. Say, the stock price rises past the option’s strike price. Then the option buyer can buy the stock at the lower strike price and sell it for a higher price. They are generating a profit in that way.

    Long Positions.

    A long position is the purchase of a stock or any other security. With the expectation that its price will rise. The goal is to buy the stock at a low price and sell it for more than you paid. The difference is your profit.

    Long ETFs.

    Most ETFs follow a particular market average, and trade like stocks. The transaction costs and operating expenses are low, and they require no investment minimum. ETFs, seek to replicate the movement of the indexes they follow, fewer expenses.

    The bottom line

    Point is to choose the best among different Forex trading styles. The one that best suits you and your goals.

    There are many ways to profit in both bear and bull markets. The key to success is using the tools for each market to their full advantage. Short selling, put options, and short or inverse It is important to use indicators to spot when bull and bear markets are beginning or ending.

    Every trader should understand these terms since they’re used frequently in financial news, trading articles and in the papers. Long, short, bullish and bearish are terms used in all markets and on all time frames, regardless of whether you’re day trading or investing, or trading soybeans or currencies.

    Risk Disclosure (read carefully!)

  • Investing In The Forex Market

    Investing In The Forex Market

    Investing In The Forex MarketHow to Forex investing? It isn’t a get-rich-quick scheme but it is full of potential to become wealthy

    By Guy Avtalyon

    Investing in the Forex market is growing and people from all around the world, especially from, India, are choosing to invest in Foreign Exchange markets, after the regulation of brokers’ work and their massive presence on the market.

    In this regard, investing in the Forex market can be a good alternative for all those who want to make a high return on invested money.

    Nevertheless, regardless of the many advantages of Forex, many investors are quite skeptical when it comes to investing large amounts of money. The reason lies in numerous myths, rumors, and misinformation that can often be found on the Internet, and they are referring to the Forex market.

    In the shortest, it can often be heard or read that the Forex market is a dead end, an ideal place for losing money, a fata morgana in the desert, and so on.

    For this reason, investors instead of developing the right trading strategies, are often subject to rumors. Hence, they do not make the right decisions or completely abandon or omit to invest in the Forex market.

    On the other hand, there are completely different myths.

    There are people who believe or have heard the myth that they can get rich overnight without one day of financial education. So they believe that Forex is the right place for that.

    What is investing in the Forex market?

    Someone would say, instant win with minimal or almost no investment. But this couldn’t be more wrong. It is true that behind any desire for quick rich is the lack of experience, the uncertainty, and the lack of a properly defined strategy. Success on the Forex market comes slowly, step by step, through education, practice, and only if it is based on realistic expectations.

    Often another myth can be heard. The is investing in stock markets is nothing more than a pure game of happiness. This is certainly far from the truth and such myths are the result of a lack of financial education. Forex is not gambling. Anyone who has read something about the Forex market, if they really wanted, could easily understand the mechanisms of price formation on the market.

    Here’s one myth more about investing in the Forex market. Money can be earned on Forex, but that means a lot of nights without sleep with a computer in front. And many hours of night trading on a trading platform.

    That’s another untruth about investing in the Forex.

    Any standardized financial education or course in this area will teach you to invest in a minimum amount of time. Practically, from the computer, you will only read the latest news. Making a strategy and making decisions is not something that is done every hour. It has a longer-term character. Not to mention mid-term and long-term investments, where you can almost neglect any day-to-day operations.

    In the case of unforeseen news, whether good or bad, you certainly can make a change in the investment portfolio. But this is not something that happens every hour or every day.

    Is Forex worth investing in?

    Discipline is the basis of every success and it comes in combination with solid knowledge. It comes with a great role in patience and significant experience.

    Successful investing in the Forex market is only a consequence of well-planned and executed trading operations.

    That involves taking into account all important economic events, permanent informing, and essential understanding of price graphs.

    Finally, for all those who do not have adequate education in this field and recognize Forex as a good place to invest, the first thing they need to do is find the right provider of financial education. They have to choose mentors and plan personal development goals. The mentor is one who will propose to you the appropriate type of training, course, etc. And that one will be your guide through the first practical operations.

    The Forex market is a very complex mechanism. The undeniable fact is that it generates various controversies.

    However, the main cause of these controversies is ignorance. If you want to take advantage of the opportunities for earning in this field, you must break all the prejudices, myths, and misconceptions surrounding it.

    If you are dealing with a trader’s job, you will probably be interested in the so-called “Robo-forex” ie robotic/automated business on the forex market.

    How to Forex investing?

    In other words, can you actively trade without moving a small finger?
    It’s possible but you’ll have to do something. You’re the one who has to give instruction, you’ll have to specify inputs. Then, how is it automated, you may ask?
    It’s about a program called “The Forex Expert Advisor” (Forex Expert Advisor) and can be used within the Trading Platform.
    This program works independently, although based on the instructions you specify. But it does not require your direct participation in the execution of trade orders or any other market activity.

    So, robo-forex executes all tasks independently, meaning automatic.

    All you have to do is set the target through an online trading platform that is linked to a broker server. Then the Forex Expert Advisor will start trading according to the given instructions. It is important to note that forex market experts are necessary as advisors especially if you’re a beginner. In this way, you don’t have any responsibility for decision making and, practically, you’ll trade without stress.

    What’s more, in that case, you don’t have to be an expert or have a deep knowledge of technical and fundamental analysis. These jobs are contained in the Forex Expert Advisor Add-on – Trading Program.

    So, this means that you can practically be away from the computer because your “advisor” will monitor and process all trade signals in case of your absence.
    So, it’s possible to invest in Forex and trade this market with a little effort and engagement.

    Forex as investment

    You have often had the opportunity to hear that investing is not a sprint but a marathon.

    This means that if you want to succeed in a tough business such as trade in financial markets, you will have to, among other things, spend a lot of time on it.

    To run in the long run, you do not need the 500-euro sneakers. You can run in the old one. The point is that you can start investing in Forex even with a little money but you’ll have to do so in a way that is suitable for you.

    The price is not the most important issue when you investing in the Forex market. The most important is to feel comfortable as much as you can. Because it increases the chances that your race will end successfully. So, take advantage of this growing market. And stay tuned, follow Traders-Paradise. You’ll find plenty of valuable suggestions and examples from real investing and trading.

  • Bitcoin Price Prediction for 2019

    Bitcoin Price Prediction for 2019

    Bitcoin Price Prediction for 2019
    Bitcoin price prediction can be a very tricky job. The market is volatile and Bitcoin itself is a real roller coaster.

    By Guy Avtalyon

    What is the Bitcoin price prediction for 2019? What can we expect? Can we expect a new bull run? Will the BTC price stabilize? Are we in for another bear year? Will Bitcoin crash or rise?

    So many questions. Many experts and influencers have shared their price predictions for Bitcoin in 2019.

    Most of you know of the famous Bitcoin price prediction of John McAfee. He said he will eat his dick on national television if BTC not hits $1 million by the end of 2020.

    Now, McAfee didn’t give a price target for 2019, but based on his 2020 prediction Bitcoin needs to be worth just over $170,000 on December 31, 2019, to be on track to hit the $1 million mark a year later.

    Well, it’s time to be serious.

    Seriously, how far can Bitcoin price actually go? No one knows where the price is going to go. These sorts of price movements are common in the volatile world of cryptocurrencies.

    But, 2019 is what the crypto fans are looking forward to. The NASDAQ has also vowed to launch Bitcoin futures in the first half of 2019.

    One of Bloomberg’s column stated that there is a probability that FUD(Fear, Uncertainty, and Doubt) might loom over crypto space in 2019.

    Also, analysts and enthusiasts kept their hopes high. Mike Novogratz said explicitly that he believes there is going to be big adaption in 2019, 2020 as he thinks there will be more contributions from people in the blockchain world.

    After the state government of Ohio has announced that it is going to accept tax payments in BTC it sounds possible. The government has partnered with Bitpay to make this happen conveniently.  So it is possible now the bitcoins can be converted into dollars on behalf of the tax office. The adoption rate going higher and higher.

    Market Prediction For Bitcoin Price

    The market is experiencing volatile conditions. Let’s take a look at the prediction with the market experts. They have been the mind of the cryptocurrency market. Let’s take a look at the famous Bitcoin predictions:

    John McAfee, the founder of the popular McAfee software and a bright Bitcoin follower predicted that Bitcoin will hit $1 million by 2020.

    Sam Doctor and Tom Lee Bitcoin Price Prediction

    Tom Lee, ex-Chief Equity Strategist JP Morgan, and Co-founder and head of research of Fundstrat, believes BTC would grow.

    He is counting on more institutional investors taking on Bitcoin and a steady increase in the Bitcoin user base. Lee explained the current fall in the price of bitcoin by referring to the recent plunge in the price of tech stocks, like Amazon, Apple, and Facebook. He thinks that increased institutional fortunes would help turn BTC’s future around very soon.

    Tom Lee said that the BTC fair value is much higher than the current price. The current fair value is somewhere between $13,800 and $14,800 which he believes might increase and reach $150,000 per coin. As soon as bitcoin wallets account for seven percent of 4.5 billion Visa holders.

    Sam Doctor, an analyst from Fundstrat along with Lee predicted that by 2019, BTC might reach nothing less than $36,000, with the probability of $64,000 at the maximum and $20,000 at its lowest.

    Sonny Singh Bitcoin price prediction

    In a recent interview for Bloomberg, Sonny Singh, the chief commercial officer at Bitpay commented on why it is okay not to panic looking at the current market condition.

    Singh, who is a Bitcoin maximalist, called Bitcoin an “800-pound gorilla, as it has access to the most notable “network effect” of all decentralized networks. He is assertive of the fact that there is a high possibility that BTC might reach $15,000- $20,000 by Thanksgiving, 2019. He was explaining that the probability of a crypto ETF and an influx of funding for startups is high on the cards.

    Ronnie Moas Bitcoin price prediction

    Ronnie Moas is a cryptocurrency analyst. He predicted that BTC might reach $28,000 by 2019. Also, he believes the demand for BTC would increase with its decreasing supply. And he claims that by 2019, the adoption rate would increase. Hence, people would demand more of it. But remember, BTC is not unlimited in supply.

    Anthony Pompliano Bitcoin price prediction

    Anthony Pompliano, founder of Morgan Creek said that “Bitcoin isn’t going anywhere:”

    Pomp tweeted that BTC might go as low as $3000, after which it will continue being bullish starting from 2019. He declared that there is no reason to freak out on the declining price as Bitcoin’s fundamentals are becoming stronger.

    Traders Paradise Bitcoin price prediction

    Bitcoin has been experiencing fluctuations over time. But Traders Paradise strongly believes that Bitcoin will soar up. We have to remind you that Bitcoin’s price falls when Bitcoins being used for illegal purposes. And Bitcoin experienced so many troubles like hacking and stealings. Also, you have to know that Bitcoin is still the market leader.

    NASDAQ is launching BTC’s future, that too at the very beginning of 2019. So, Bitcoin’s price might reach greatly increase by the end of 2019. Hence, this year could have a good prospect and development for Bitcoin.

    This year will be bullish for Bitcoin. More people will start believing in the technology behind Bitcoin. It is very possible for Bitcoin to tripled price by the middle of 2019.

    There is some logical explanation, the more the trading, the more the price.

    We all know there can be only 21 million Bitcoins mined, out of which 17 million has been mined already. That means only 4 million to be mine. That will make its value more. Besides that, more and more countries have shown willingness to integrate Bitcoin and other cryptocurrencies into their financial systems. The governments and the central banks will embrace the digital currencies. Hence, the demand should be more.

    Truth is that regulated markets can function freely and securely.

    Bitcoin prices in 2019 will be marked by volatility which has made bitcoin price prediction in short-term a bit of a challenge, even for experienced analysts. So far, 2018 has presented its own surprises though not a dramatic as the rollercoaster it was in 2017.

    By the end of the year 2019, the Bitcoin price could reach five-digits value. That means that the 2018 bearish trend ends and shifts to the bullish trend.

    Traders Paradise’s prediction is that the cryptocurrency market will experience a certain optimism in 2020. Not only Bitcoin, but all the major cryptocurrencies will also experience an upward shift.

    By 2023, Bitcoin will be used more often by more people. The real-time use case will be increased. That will make it even more powerful.