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.

What is Spread in Trading?

It is important to keep in mind that spreads are changeable.

By Guy Avtalyon

What is spread in trading? Before you realize that, you should understand that in the foreign exchange market prices are represented as currency pairs or exchange rate quotations. The relative value of one currency unit is expressed in the units of another currency. BID is the exchange rate, applied to a buyer who wants to buy a quote currency. It is the highest price at which a currency pair will be bought. ASK is the price the lowest price that a currency pair will be offered for sale. BID is always lower than ASK.

The difference between ASK and BID is a spread. It represents brokerage service costs and replaces transaction fees.

When you study the financial markets, you’ll notice three different prices: the market price, buy price, and sell price. The difference between the buy and the “sell” price is spread. It’s a simple concept, but one that could have a significant impact on the profitability of your trades.
Spread is expressed in pips, to the fourth decimal place in currency quotation.

More about what is spread

In the most general sense, a spread is a difference between two similar measures. In the stock market, for example, it is the difference between the highest price – bid and the lowest price – ask.

But, for example, with bonds, the spread is the difference between the yields on bonds that have the same investment class but different dates of maturity. For example, if the yield on a long-term Treasury bond is 5%, and the yield on a Treasury bill is 2%, the spread is 3%.

The spread is also the difference in yields on securities that have the same maturity date but have a different investment quality. For example, there is a 4% spread between a high-yield bond paying 9% and a Treasury bond paying 5% that both come due on the same date.

The spread also indicates the price difference between two different derivatives of the same class.

For example, you can easily notice the spread between the price of the November corn futures contract and the February corn futures contract. The portion of the spread is the cost of “carry”. However, the spread extends and narrows, caused by changes in the market. Well, in this case, the corn market.

More answers to what is spread in trading

It is a difference between the asking price and an offer. For example, if the seller was asking $2 million but the offer was only $1,5 million, the spread would be $500,000.

Also, it is a difference between the cost of money and the earning rates.

For instance, a mortgage banker is able to borrow money at 6% interest because of its excellent credit and high net worth. It then loans that money out on moderately risky ventures at 14% interest. The spread is 8%.

What is spread trade?

A spread trade is the buying of one security and sale of related security as a unit (this is so*called legs) simultaneously. A spread trade is executed with options or futures contracts as the legs, which is most usual. But also traders can use other securities sometimes.

A spread is a difference between ASK and BID price. It represents brokerage service costs and replaces transaction fees.

These types of spreads are characteristic for Forex Trading:

Fixed spread – the difference between ASK and BID is kept constant and does not depend on market conditions. They are set by trading with firms for automatically traded accounts.

Fixed spread with an extension – a certain part of a spread is predetermined and another part may be adjusted by a dealer according to market.

What influences the Spread in Forex Trading?

There are several factors of spread influence in trading. The most important is currency liquidity. Popular currency pairs are traded with lowest spreads while rare pairs raise a dozen pips spread. The next factor is the amount of a deal. Middle size agreement is executed on quotations with standard tight spreads, while extreme agreements, no matter if too small or too big, are quoted with larger spreads due to higher risks.

On the volatile market, bid-offer spreads are wider than during quiet market conditions. Status of a customer also impacts spread as large-scale traders or premium clients enjoy personal discounts. Forex market characterizes high competition and as brokers are trying to stay closer to customers, spreads tend to be fixed on the lowest possible level.

Each trader should pay attention to spread management. Maximum performance can only be achieved when the maximum quantity of market conditions is taken into account. The successful trading strategy is based on effective evaluation of market indicators and specific financial conditions of a deal. The best tools for spread trading are a combination of forecasting, risk/return analysis, transaction cost evaluation. The spreads are changeable, so spread management strategy has also to be adaptable enough to fit market movements.

Like any other market, you’ll find spread in the Forex market. A spread is simply the price difference between where a trader may buy or sell an underlying asset. Or simpler Bid/Ask spread.

Spread’s costs and calculations

Since the spread is just a number, we need to know how to relate the spread into dollars and cents. If you can find the spread, finding this figure is very mathematically straightforward once you have identified pip cost and the number of lots you are trading.

For example, you can buy the EUR/USD at 1.3564 and close the transaction at a sell price of the 1.35474. That means as soon as our trade is open, a trader would have 1.4 pips of spread. To find the total cost, you have to multiply this value by pip cost and by the total amount of lots you trade. When trading a 10k EUR/USD lot with a $1 pip cost, you would incur a total cost of $1.40 on this transaction.

Remember, the pip cost is exponential. This means you will need to multiply this value-based off on the number of lots you are trading. As the size of your positions increase, so will the cost incurred from the spread.

What is important to know? It is important to remember that spreads are changeable. That means they will not always stay the same and will change from time to time. These changes come from liquidity, which may vary based off of-market conditions and expected financial data. To know current spread rates, always reference your trading platform.

30th October 2018
Blockchain transaction – How It Works?
What is a blockchain transaction, how it works, how is it useful for everyday life

By Guy Avtalyon

A blockchain transaction is a public record of all bitcoin transactions that have ever been executed. A block represents the current part of a blockchain. It records the recent information. When a block is completed, it becomes part of the blockchain. As a permanent database creating a new block. Blocks are connected to each other like a chain in real, consecutive order. Every following block contains a hash of the previous block. Blockchain Technology is one of the hottest and most interesting technologies in the present market.

The first blockchain transaction

The first transaction in the real-world took place on 22 May 2010. Laszlo Hanyecz made it. He bought two pizzas in Jacksonville, Florida for 10,000 BTC. In five days, the price grew 900%, rising from $0.008 to $0.08 for 1 bitcoin.

From a technical point of view, the most fundamental definition of a transaction is an atomic event that is allowed by the underlying protocol.

Speaking about bitcoin, transactions are ordinarily individual payments.

Lena sends John 10BTC.

If the word transaction conjures up a financial transaction in your mind, this is appropriate. The bitcoin blockchain is basically a list of all the bitcoin transactions since Bitcoin began. Bitcoin is only one of many blockchains. Not all blockchains limit their utility to payment transactions. Let’s say, transactions are payments when you think of the blockchain as a distributed ledger. The ledger that keeps a record of who owes who how much bitcoin.

Is the blockchain a data structure?

No, if you consider the blockchain as a data structure then a transaction would be just one of the events that update the data store. But there is a huge difference. Before invent of blockchain you had a situation that one event was able to update only one data table on one the particular machine. With blockchain, such a single event is updating a data table on every machine connected in the chain no matter where it is on the planet.

Blockchain Transactions are nothing special.

It is the same as in any other database. To keep it simple, a blockchain transaction is a transaction record in a blockchain. Just like you store a record in MySQL database. It’s exactly the same. The blockchain is a database. Transactions get stored in the form of blocks and the blocks form a chain to form the blockchain.

Is blockchain transaction safe?

Blockchain transactions are safer and more effective for most companies. And hence the demand for quality blockchain platforms which can be tapped for ensuring greater security.

Blockchain transactions are analogous to a wire transfer or cash transaction. Payment is done directly from one party to another. All without going through another financial institution. And without any third-party oversight. Payment processing is done over a private network of computers. Every single transaction is recorded in a blockchain, which is public.

Say, blockchain transactions are a feature of blockchain technology’s mainstream feature – cryptocurrencies.

Cryptocurrencies rely on the blockchain. Each block in the chain holds records. The records are the information of each and every transaction! The transaction’s information gets stored on blockchain ledgers.

What is blockchain in essence?
- A distributed ledger
- A consensus protocol
- A membership protocol
Blockchains transactions require consensus.
This means the participants must agree on who’s going to extend the blockchain, and how!

Public blockchains such as Bitcoin, Ethereum use consensus that looks like a crypto-lottery. For example, miners have proof-of-work which is crypto-puzzle and in that way get their lottery tickets. The one who wins this “game” gets the reward. The reward is permission to add one block to the blockchain and, also, such can print new money.
All miners try to approach to the longest chain.

This procedure is using to get consensus. It will take time, around 10 minutes. Transactions are not taken as fully confirmed for about one to two hours. After that point, they are adequate “deep” enough in the ledger.

Introducing an opposing account of the ledger, called as a fork, would be computationally exclusive. This stoppage is a susceptibility to the system. And also an important obstacle to the use of bitcoin-based systems. It is necessary for fast-paced transactions, such as monetary trading.

But we have to be honest, in spite of privacy-enhancing technologies such as encryption and identity management, someone can see blockchain transactions throughout network nodes. These produce metadata. So statistical analysis can reveal information even from encrypted data. As a result, it can allow for pattern recognition.

But quite frankly, away from someone cracking the cryptology. The blockchain transaction is one of the most secure digital capabilities available.

Advantages of blockchain transactions

Maintaining records of transactions is an essential function of all businesses. Hence, these records have to track the past performance of the company. And also, help with forecasting and planning for the future. And most organizations’ records take a lot of time and effort to create. That’s why the creation and storage processes are prone to errors. And these transactions have to be executed immediately. Yes, the settlement can take more time, from several hours to several days.

On the blockchain, the process of transaction verification and is recording. Let’s say, it is immediate and permanent. Because the ledger has distribution across several nodes. So, this provides the data to replicate and store instantaneously. On each node across the system.

What is recording in blockchain?

Recording in the blockchain means to note details of the transaction such as price, asset, and ownership. And also, they are verified and settled within seconds across all nodes. But, when registering the change on anyone ledger, you are registering simultaneously on all other copies of the ledger. Because each transaction is transparent. And permanently recorded across all ledgers. It is open for anyone to see. So there is no need for third-party verification.

Blockchain technology will disrupt the way we write. And enforce contracts, execute transactions, and maintain records.
28th October 2018
How To Make Money With Blockchain Technology?
The 21st century is all about technology, a new addition to the pack is Blockchain technology.
There are many ways you to make money with Blockchain

2 min read

The Blockchain is the revolutionary technology impacting different industries miraculously was introduced in the markets with its very first modern application Bitcoin. Bitcoin is nothing but a form of digital currency (cryptocurrency) which can be used instead of fiat money for trading. And the underlying technology behind the success of cryptocurrencies is termed as the Blockchain technology.

With the increasing need for modernization in our everyday lives, people need to accept new technologies. From using a remote for controlling devices to using voice notes for giving commands; modern technology has made space in our regular lives. Technology like augmented IoT that have gained tread in the past decade and now there’s a new addition to the pack i.e. Blockchain technology.

Actually, the 21st century is all about technology.

There’s a misconception that Bitcoin and Blockchain are one and the same, however, that is not the case. Creating cryptocurrencies is one of the applications of blockchain technology and other than Bitcoin, there are numerous applications that are being developed on the basis of blockchain technology. The blockchain is just a public ledger of transactions on the bitcoin network.

Before we tell you how to make money with blockchain technology, there are several things you have to know.

Though blockchain technology has evolved to many levels since inception, there are two broad categories in which blockchains can be classified majorly i.e. Public and Private blockchains.

At first, let’s keep a check on the similarities that both public and private blockchain have:
- Both Public and Private blockchain have peer-to-peer decentralized networks.
- All the participants of the network maintain the copy of the shared ledger with them.
- The network maintains copies of the ledger and synchronizes the latest update with the help of consensus.
- The rules for immutability and safety of the ledger are decided and applied on the network so as to avoid malicious attacks.
And let’s see the differences between them.

Public Blockchain – It is a permissionless ledger and can be accessed by any and everyone. Anyone who has access to the internet is eligible to download and access it, can check the overall history of the blockchain along with making any transactions through it. Public blockchains usually reward their network participants for performing the mining process and maintaining the immutability of the ledger. An example of the public blockchain is the Bitcoin Blockchain.

Public blockchains allow communities all over the world to exchange information openly and securely. However, an obvious disadvantage of this type of blockchain is that it can be compromised if the rules around it are not executed strictly. The rules decided and applied initially have very little scope of modification in the later stages.

Private Blockchain – Opposite to the public blockchain, private blockchains are shared only among the trusted participants. The overall control of the network is in the hands of the owners. The rules of a private blockchain can be changed according to different levels of permissions, exposure, number of members, authorization, etc.

Private blockchains can run alone or can be integrated with other blockchains too. These are usually used by enterprises and organizations. So we can say, the level of trust required amongst the participants is higher in private blockchains.

Ways to make money with Blockchain technology

Though Bitcoins and cryptocurrencies are the first popular application of Blockchain technology, they are not the only ones. The nature of Blockchain technology has led businesses, industries, and entrepreneurs from all around the world to explore the technology’s potential and make revolutionary changes in different sectors. The variety of blockchain technology-based businesses with paths to profitability is striking. Here are four that illustrate the width of innovation the blockchain marketplace is bringing to potentially profitable business ideas. While Millennials are certainly moving towards “alternative career paths” more often than their Generation X or Baby Boomer counterparts, there are countless ways for absolutely anyone to capitalize on the new wave of oncoming technology. Here, you’ll find an awesome starting point for making money and freelancing with blockchain technology.

Let’s see how Blockchain technology can be useful in actual implementation.

Mining

Mining cryptocurrency is considered the granddaddy of making bank on blockchain technology. Here’s a quick rundown of how the blockchain technology works in this example. Multiple transactions make up a block. Miners verify blocks through a process. They apply a mathematical formula to each block, turning it into something make money blockchain called a “hash.” Essentially, a hash is an alphanumeric sequence. The hash is then stored at the end of the blockchain. When each block’s hash is created, it uses the previous block’s hash. More or less, this is the digital version of a wax seal.

So, once a block has been “sealed off,” a flurry of activity happens. The first miner to produce the hash receives a reward. As more of the cryptocurrency is mined, the rewards are halved. The process itself is pretty straightforward. What’s not straightforward, though, is actually making it happen.

Since so many people have computers strong enough to mine, it’s far more difficult to make it a lucrative endeavor. Instead, mining pools have popped up. Mining pools are just groups of people working together to mine. If the pool wins, everyone in the pool has distributed a portion of that winning. That’s not to say, though, that mining smaller altcoins on your own isn’t a possibility.

Trading

This is definitely a lucrative way to make money with blockchain technology.

Cryptocurrencies reside on exchanges, just like fiat money. However, they have much more in common with stocks. Because cryptocurrency markets are so volatile, they can feel like more of a risk than they’re worth. But, to make money with them you just need to be aware of trends and do your research. Know the specific risks associated with trading. There are literally thousands of cryptocurrencies on the market.

On the flip side, if you choose to hold on to certain cryptocurrencies, you are considered a hodler.

Do your research. Read up on the market. Trading crypto is crazy fun, regardless of if you make money.

Freelancing

The models are different but one thing is consistent – the freelance marketplace is growing rapidly. For entrepreneurs looking to build startups on the blockchain technology, companies looking to find reliable, qualified freelancers looking for a fair and transparent platform with quick payments and low fees, the boom of cryptocurrencies and the blockchain technology is the new holy grail in freelance work exchange.

There are other ways you can make money with blockchain technology.
- Build your own blockchain
- Build something useful on top of someone else’s blockchain and sell it as a service
- Help someone who is building a blockchain or blockchain application to find a customer or sell their blockchain technology
- Invest in a business doing the above
- Learn more about blockchain technology and teach/run courses or webinars about blockchain
- Look for problems or businesses that have an urgent or important problem that could use a blockchain type solution and build a business case
- Get involved in an event – like a hackathon, conferences or workshop – in related industries like fintech, cryptocurrency, etc
- Volunteer or get experience working for various blockchain companies
- Download, install or register for a blockchain app and play around with it, see if there’s anything you could do with it
- Go online and explore blockchain forums, discussion groups or communities and see what opportunities may be available or advertised and speak with those groups/companies
Choose how big a wave you want to ride. If you are still learning, don’t go for that massive wave, it will kill you. You can have fun and make money from the smaller waves. Don’t let media hype distract you from this. Media make money talking about the megastars – such as Bezos and Zuckerberg – who are riding the mega waves. The story of somebody making a life-changing amount of money in a tiny niche market won’t sell page views, but yet there are millions of these stories and one of them can be you.

Bottom line: The blockchain technology seems to be growing with each passing day. Although, many claim this to be a bubble that will soon burst. However, the pace of improvement and increasing application in different fields shows that it is here to stay. There is no domain which in untouched with the impact of Blockchain technology. Companies in healthcare, medical, transportation, retail, etc. are eyeing towards this technology as a probable solution to the issue of safety. This has made more and more companies invest money in Blockchain companies. Hence, we have them earning more and more money.

Many companies are also investing in blockchain technology, and thus, it is garnering the attention of many. Blockchain came into existence in 2009, and since then it has never looked back. It is here to stay.

Risk Disclosure (read carefully!)
24th October 2018
What is Blockchain or Blockchain Technology?
2 min read
- The blockchain is the mathematical structure for storing data in a way that is nearly impossible to fake.
- Blockchain technology is an important element of cryptocurrencies. Without it, digital currencies like Bitcoin would not exist.
If you are new to blockchain technology or you are already a trader, this article is for you. So, what is the blockchain? The blockchain is an absolutely brilliant invention. The idea of a person or group of people known by the pseudonym, Satoshi Nakamoto. By the time, it has developed into something greater, but still, there is a question: What is Blockchain?

Every day you can hear about Blockchain technology, Bitcoin, ICO, Ethereum. But do you understand what blockchain is?

How does it work? Can blockchain be used in business? Will blockchain change the world? This article is aimed to answer all these questions.

What blockchain is, the best explanation is through the game.

Imagine you and your friends are on a vacation. Its night, you are sitting around the pit-fire and playing storytelling. One has begun the story with a sentence, you are repeating the sentence and adding up your part, then the other player, etc. The main goal is the chain of sentences which are producing a story. If someone is not able to repeat and add his own sentence, the chain will fall down, it would end. New sentences are nothing without the initiation of old sentences. That exactly what the blockchain is. You added a sentence on your friend sentence, that was a ‘block’. Everyone approved your phrase because it referred to the old sentences, that is a shared ledger.

From the beginning

Common people started mistrusting the banks. There lies the birth of blockchain. A mysterious person named Satoshi Nakamoto created a whole new currency. He built the whole system on the principle of decentralization. He created a public ledger, which is synchronizing continuously and everyone is able to witness the process.

“I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party.”

These are the words of Satoshi Nakamoto, the mysterious creator of Bitcoin, in a message sent to a cryptography-focused mailing list in October 2008. Included was a link to a nine-page white paper describing a technology that some are now convinced will disrupt the financial system.

Transform this into real life.

Let me ask you something. What happens when you send money from your bank account to someone else’s bank account? Your bank acts as a middleman, it verifies and approves the details of sender and receiver through its ledger (a book or other collection of financial accounts. In this case, you must trust your bank to have such transaction. Imagine, when banks are collapsing, will you send your money through banks? Will you be able to trust the middleman?

How does Blockchain work?

Suppose, you want to transfer some money to your friend in the other country. You will initiate a transaction, each online transaction will be a reference to ‘Block’. Because it is a public ledger, there will be broadcast to everyone in the network about the block. Constant synchronization of the ledger will be going on. If the people in the network would approve the transaction, then the ‘block’ would be added to the ‘chain’ which is a transparent record of transactions. Hence the name ‘blockchain’. This is how the money would be transferred. Satoshi Nakamoto carefully designed it to prevent the double spending of money.

What does it mean?

This problem exclusively belongs to digital currency. We can copy songs and movies from our laptops and paste them in other devices. That file will carry information. And can be copied and reproduced regarding our digital transaction. This will generate new fake currency, which is not part of our original monetary system. We can call it double spending of money.

Satoshi Nakamoto handled this problem extremely well. He introduced public ledger and an immutable chain of blocks. Every transaction is bundled into a block, every block is processed, authenticated, time-stamped and linked to the previous block.

This creates an immutable chain

When you want to send some money from your bank account, your bank will verify and confirm the transaction. Problem is that you have only one confirmation in the banking system. But, in the blockchain, at least 6 confirmations are required for a block to be added to the chain. Contrary, it is rejected. Can you see how blockchain is more secure and transparent?

Why use blockchain?

Transparency is one of the reasons why should use this technology. It is about its open source structure. It means that other users of the network can read and confirm or not confirm the information. The essential thing of being open source is that it can’t save logged data without majority blockchain network users.

Decentralization is other. Next main blockchain reason is the lack of a central data hub. Instead of running a massive data center you save your information in decentralized net, where any user can read, check and authorize any of your actions.

User controlled networks are also advantaged, a consequence of the decentralization of the network. Instead of holding a third party for data processing, stakeholders decided to control each other and decide what to do next. For instance, the inability to achieve 80% consensus on the update, tied to the bitcoin block, lies in the fact that it was necessary to develop a plug into two separate currencies, bitcoin, and bitcoin cash.

Faster transaction settlements is another advantage. Blockchain technology works 24 hours a day, seven days a week. That means the blockchain based transaction process is faster.

When you send the transaction to traditional banks, it will take days to be completely settled. This is due to protocols in bank transferring software, and working time. You also have financial institutions located in various time zones, which delays processing times, but it’s not about blockchain.

Reduced transaction costs are characteristic. Blockchain allows you to execute transactions without a third party, which is often a bank or a central server. Since the intermediary is absent, this allows you to get rid of imposing expense items.

Where to use the blockchain

There are a lot of uses of blockchain technology. Bitcoin or cryptocurrencies is just one application of blockchain. We have Ethereum, which is a platform where different applications can be built, it is more like an Operating System. And other altcoins too, are based on the blockchain. And many other fields. The blockchain is not only about cryptocurrencies.

In healthcare, the use of digital signatures based on blockchain data allows access only with the permission of several people and full compliance with keys, also allows to regulate the availability and maintain the confidentiality of medical records.

As a protection, the blockchain technology is creating an impregnable network with the impossibility to get access from the outside. The blockchain technology can improve transparency, speed up work and check corruption in governments all around the world. Probably one of the most popular uses of blockchain technology in the modern world is energy. In order to maximize the rational use of the generated energy, blockchain technology provides to see how much energy we use, at what hours, etc. There are lots of opportunities with blockchain technology and its immeasurable potential for improving the quality of service provision improving the confidentiality and integrity of data at the same time.

Bottom line:

So, what is blockchain? Maybe the best answer is this quotation: ‘The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.’ said Don & Alex Tapscott, authors Blockchain Revolution (2016).

The blockchain technology is extremely powerful and can disrupt many existing organizations. No matter what happens with Bitcoin, Blockchain technology is here to stay, in a more refined and sophisticated manner.

Risk Disclosure (read carefully!)
23rd October 2018
Who are the most successful investors in India?

2 min read

All those who enter the stock market in India has the same dreams. They all want to become absurdly wealthy like few of the known richest investors in the world. These guys made a success! It is never easy to make money by investing or trading in stock markets. The stock markets are highly volatile and your investments can be at high risks. Many people have lost all their savings in this market. Yes, the rules are the same for all, but the story is not the same for all. Many have gathered good wealth. In India too. We found some beautiful stories about successful investors in Indian stock market.

We want to introduce some of the most successful investors in India. How was their journey, what principles they follow, how long they have been investing? Who knows, maybe these examples could be an inspiration to all of us. For you too!

Rakesh Jhunjhunwala – Stock market investor

He is one of the most successful investors in India. His portfolio is worth over Rs. 20,000 crores / 3.2 billion dollars. His top holding is CRILIS but he holds stocks of Titan and Lupin too. He is known as Indian Warren Buffet.

Rakesh Jhunjhunwala entered the Indian market in 1985. His father was interested in the stock market and boy-Rakesh was very carefully listener during the long conversations among his father and his friends. He attended the Chartered Accountancy course to gain a professional degree and completed in 1985.

After that, he joined the Stock Market and started trading. His first biggest bet was 5000 shares of Tata Tea which he got for Rs 43 and sold for Rs143 in just 3 months. This gave him Rs. 5 Lakh which was a big deal at that time. His next big hit was Sesa Goa. He bought 4 lakh shares and gathered huge profits on it. After that first successes, a lot of stocks made large sums of money for him like Lupin, Crisil, etc.

Porinju Veliyath – CEO of Equity Intelligence

He is one of the most well-known investors and fund manager. Equity Intelligence stock picks like Emkay Global Financial Services and BCL Industries has raised by 200% in their share prices and IZMO and Vista Pharma raised by 100% at their share prices under his hand. But it wasn’t so easy in the beginning.

The story of his life isn’t exactly ‘Slumdog Millionaire’ but he had a lot of struggles in his early days. Porinju Veliyath was born in the lower-middle-class family in Kochi. During his student days, he had to work many different and hard jobs to support his family.

When he moved to Mumbai in 1990 in search of a job, he became a floor trader at Kotak Securities there. He was clever, learned quickly and he became an expert trader. He worked for 4 years there and got a lot of knowledge. In 1994, he joined Parag Parikh Securities as a Research Analyst and fund manager. In 1999, he returned to his hometown Kochi and decided to make money on his own from the stock market. He made his first major investment in ‘Geojit Financial Services’. The stock was trading at a very low value at that time. Proving everybody wrong, this investment gave him multiple returns. In 2002, he started his own portfolio management service firm in the name of ‘Equity Intelligence’.

Vijay Kedia – a successful investor with the origin

He describes success on the stock market: ‘knowledge to find out quality stocks which one can acquire only by reading. If one doesn’t have reading habits, he can’t be a good investor.’

Vijay Kedia was born in the family of stock-brokers. He started his career in the stock market in 1978 not by his own choice but by force after his father died.

He joined the family business of trading and stock-broking. At the start, he was not doing well. But, he did not lose hope. He realized that trading didn’t suit him well and decided to start with investing. But learned a lot about the fundamentals of companies. In the beginning, he owned Rs 35,000 and by his own study, he invested the entire amount in a stock named Punjab Tractor. In 3 years, the stock multiplied 6 times and his Rs 35,000 grew into Rs. 2.1 Lakhs. Then, he invested in ACC at the rate of Rs. 300. After a year, the stock multiplied 10 times and moved to Rs. 3,000 in the second year. He continued to make successful investments in various stocks to create a wealth of 500 crores.

Vijay Kedia is betting now on Everest Industries and Vaibhav Global as multi-bagger stocks for 2018. And still is one of the most successful investors in India.

Nemish Shah – top 10 retail investor

His net worth is Rs 1,300 crore.

Nemish Shah is the co-founder of ENAM, one of the most reputed and respectable investment houses. He keeps himself away from media and publicity. His investment ideas are most sought after. He invested in Asahi India and multiplied his funds to 3.4 times in 3 years. He does not invest in too many stocks. His focus is on limited stocks and highly sector-driven.

Ramesh Damani – well-known investor

Ramesh Dhamani is well-known as Warren Buffet follower as much as because of his investments in listed and unlisted companies. He is picking high-quality stocks and retaining them for a long time. He follows the model for investing that favors companies with strong management credentials and processes. And it is Warren Buffet’s model. That affords him millions of rupee. Also, one of the most successful investors in India.

Raamdeo Agrawal – Founder of Motilal Oswal Group

Raamdeo Agrawal is one of the founder members of Motilal Oswal Group and MD and co-founder of Motilal Oswal Financial Services. He started buying stocks in 1980 and till 1994; he made a portfolio of about Rs. 10 crores. Then, he read Warren Buffet’s tips and worked upon his portfolio to pick quality stocks instead of accumulating bad sticks. In a span of one year time, his portfolio doubled. He has amassed a net worth of over Rs. 6,500 Crore /1 Bn dollars.

Dolly Khanna – the Value investor

Women in the top 7 the most successful investors in India. Value investor Dolly Khanna has been investing in the Indian stock market since 1996. Her portfolio is managed by her husband Rajiv Khanna. She made debut through the fertilizer sector by homing in on a top-quality small-cap stock which enjoys a monopoly position. She has a knack of spotting multi-bagger stocks and knows exactly when to book profits. Emkay Global Financials, PPAP Automotives, IFB Industries, Thirumalai Chemicals are some of the picks form her portfolio.

Bottom line:

If you want to become successful in the stock market, then you should learn from the lives of these iconic stock market investors. How was their journey, what principles they follow, how long they have been investing?

Everyone who enters the stock market world knows about Warren Buffet. The greatest investor of all time and one of the richest person in this world who made his fortune by investing in stocks. But you have to know these guys and their life path.

Both you and they deserve this to know.

Risk Disclosure (read carefully!)

22nd October 2018
Ways to Earn Bitcoin

2 min read

After Bitcoin become one of the hottest new investment assets it has surprised many who once believed the blockchain-driven cryptocurrency would never have real-world value. It has also produced huge interest. This interest, as the nature of this digital currency as well, cause great opportunities for making extra money.

Traders Paradise wants to present you several ways how to make money with Bitcoin and several different ways to earn Bitcoin.

How to earn bitcoin?

There is a huge amount of money to be made in this market, and many of the ways of earning with Bitcoin may result in small amounts. It shouldn’t dishearten you. Even small amounts of Bitcoin can be useful assets.

How?

The rapid growth of the value of the cryptocurrency gives possibility. If you want to accumulate larger sums of Bitcoin, that’s also entirely possible. It requires some initial investment of course.

Let’s begin exploring the different ways in which you can start making money and earn Bitcoin.

Selling Bitcoin-related products

It is the fact that there are ways to make money from Bitcoin without actually owning any. For instance, you can sell products and services and be paid in Bitcoin.

The easiest way to get into being an affiliate marketer for Bitcoin products is to promote Bitcoin mining devices through some affiliate program. Point is that you can send visitors from your website and receive a small commission on any products they buy there. For that, you’ll need a website on which to post your affiliate links. The good news is that, since Bitcoin miners are generally priced at $100+, you don’t need to sell too many of them to start making some decent money from your marketing efforts.

The same concept can also be applied to Bitcoin services. Many services surrounding Bitcoin offer generous commissions to marketers who refer customers to them. If you’re going to create a website, integrating promotions for services can be helpful to your readers and profitable to you. This is one way to earn bitcoin.

Do freelance jobs and get paid and earn Bitcoin

A huge online marketplace for freelance services exists to connect freelance workers with customers. A new twist has come in the form sites that send payments to freelancers in Bitcoin. If you are freelancer already or have a skill that businesses would be willing to pay you for, you may be able to render services in exchange for fairly significant amounts of Bitcoin.

Freelancing in exchange for Bitcoin has two advantages: first, unlike mining or investing, there is little or no initial cost for most forms of freelance work and the second, some freelance jobs can pay amounts of Bitcoin worth dozens or even hundreds of dollars. If you want to earn Bitcoin at a reasonably fast rate without investing a large amount of money at the outset, freelancing can be your best option.

You’ll just need to sign up for a freelance marketplace that pays in Bitcoin.

Invest in Bitcoin and Bitcoin derivatives

Investing in Bitcoin, indeed still not as common as investing in stocks and bonds, but is fast moving into the financial mainstream. To be honest, investment is one of the profitable ways of making money with Bitcoin.

Basic Bitcoin investment is the simple buying and holding Bitcoin until its price goes up enough to gain a profit. Bitcoin has produced some incredible gains for investors in past years. If you had invested just $200 into Bitcoin when it was worth $1 in early 2011, your investment would be worth millions today. This is an ultra example, which demonstrates how profitable Bitcoin investment has been for some traders who have been willing to hold their investments for long periods of time.

High-risk investment

In the past Bitcoin exchange was easy to hack, like Mt. Gox exchange which was hacked 2014. But now the new generation of more secure exchanges come onto the market to supply Bitcoin services.

A less known way of investing in Bitcoin is to trade it as a CFD, or contract for difference. In core, a CFD is a derivative instrument that is based on the price of an asset, in the case of Bitcoin.

Unlike standard investment, however, CFDs don’t involve actually buying the asset they mirror. Instead, traders open positions on the movement of an asset’s price with a CFD broker. CFDs typically have high leverage rates. Meaning that both gains and losses are higher than they would be in a more traditional investment environment.

Used properly, Bitcoin CFDs can be fairly profitable. If you’re too careless with them, they can be high-risk investments. It depends on your personal level of risk tolerance.

Bitcoin mining

Mining refers to the use of computer hardware to automatically perform a set of mathematical operations. That, in turn, creates new Bitcoin. Bitcoin is set up that only 21 million can ever be produced. At this moment, more than four million are on the table for Bitcoin miners.

You have to know one important fact about Bitcoin mining before getting into the difficulty increases over time, which means, it will take more time and more computing power to generate each following Bitcoin.

At the beginning of Bitcoin, cryptocurrency enthusiasts were able to use graphics processing units on regular computers for mining. But nowadays the difficulty has gone up so much that much more specialized equipment is needed.

To start Bitcoin mining, you’ll need to invest in external devices called a Bitcoin miner. That provides the necessary computing power to produce Bitcoin. The price of a Bitcoin miner will vary based on its processing ability.

Small USB miners start at under $100, while larger, more powerful mining devices can cost thousands of dollars. Although the initial investment of buying a Bitcoin miner can be fairly large, it allows you to produce your own permanent flow of new Bitcoin until the full 21 million has been reached.

Start mining

If you decide to start mining yourself, you will have the peripheral costs too, like electricity costs, for example. If you have a large miner that produces a large amount of heat, you may have to install a cooling system.

These costs can eat up much of the profit margin in Bitcoin mining. Fortunately, if Bitcoin continues to grow in value, these costs will be compensated later.

But there is another way you can get in on the action. It is known as contract mining. In contract mining, you’ll pay a fee in exchange for a company to employ its Bitcoin mining equipment on your behalf. This contract will last for some period of time. And all Bitcoin mined during that time on the equipment you’ve contracted will be sent to your Bitcoin wallet. Contract mining is an easy and passive way for you to accumulate Bitcoin. But it will cost more over the long period than having your own Bitcoin mining equipment.

What else you can do to earn Bitcoin?

For example, you can do micro-tasks small, simple actions, such as viewing an advertisement or engaging with a post on social media. Though the pay is usually very low, micro-tasks are the simplest way to get into Bitcoin.

Bitcoin faucets are a bit like micro-tasks in the sense that they pay very small amounts of Bitcoin in exchange for a small amount of your time – often around 1 Satoshi, which is a hundredth of a millionth BTC. In the case of faucets, though, Bitcoin is usually available to be claimed by users at a set interval, such as every five minutes.

Or you can create content to be monetized with Bitcoin-based ads. Maybe you can lend out the Bitcoin you already have and generate passive income. But if you have respectable knowledge you can make a decent amount of money form helping other people learn about cryptocurrencies.

Bottom line

The easiest and fastest way to have Bitcoin is to buy instantly with a credit card or debit card. You can acquire $50 or less for Bitcoin, fast and usually within 10 minutes. However, you may be new to the entire cryptocurrency concept and for that we recommend you learn these few things above.

Bitcoin is extremely empowering but also different than the currency you know and use every day.

Risk Disclosure (read carefully!)

17th October 2018
Why now Bitcoin (end of 2018, after major drops)?

The simplest answer is why not, but here is a more complex one.

By Guy Avtalyon

Why now Bitcoin? Honestly, I did not meet statistics and exact figures on this topic. But in 2017 the number of searches in the Google search engine on the topic bitcoin – increased by 450%, compared with the previous year.

The last time such a large survey was conducted in the USA, back in 2013 by the firm On Device in preparation for a London conference. At that time bitcoin awareness by Americans was about 25%.

By 2018 bitcoin awareness has jumped by more than twice that number according to Survey Monkey and Global Blockchain Business Council. And though bitcoin acknowledgment is growing, actual participation seems somewhat low.

Nearly six in ten respondents revealed they’d at heard of bitcoin. That up some 33 points from 2013’s measure. The two surveys are not linked. More than 5,000 people participated in the current questionnaire.

More about survey

According to the same survey, only 5% hold a digital asset. But 21 percent of that number claim to be “considering adding it to their portfolios.” The majority of holders are male, under 34 years of age (58%), white.

The results basically show ten percent of millennials own bitcoin while older Americans barely break one percent. Bitcoin holders’ politics are politically independent by half. Less than 20% trust their government more than the Bitcoin network (almost a quarter).

That’s the reason why now bitcoin!

Asked about possible 2018 asset crashes, 38 percent of all Americans (and 41% of owners) see BTC as a bubble poised to pop this year. Still, the survey did note that almost 70 percent expect BTC to increase in value over the coming half of a decade.

A little more than 10 percent believe it will die out.

According to data compiled by Bitinfocharts.com, there are almost 22 million bitcoin wallets. However, most bitcoin users have several BTC wallets and use multiple wallet addresses to increase their financial privacy when transacting in bitcoin. Therefore, the number of bitcoin users is likely less than 22 million.

Anonymity

A 2017 study by the Cambridge Centre for Alternative Finance suggests that the “current number of unique active users of cryptocurrency wallets is estimated to be between 2.9 and 5.8 million.”

It is important to note that this study focuses on active users as opposed to bitcoin holders or ‘hodlers’. This gives us insight into how many individuals are actual users as opposed to buy-and-hold investors.

This surveys also show that the end of 2018 is the right time is the time to get to know BTC. So, let start!

What is Bitcoin?

For the majority, it is still an open question. The first step to understanding Bitcoin is admitting you don’t understand Bitcoin.

Let’s say, Bitcoin is a protocol. But, honestly, the protocol itself is just our best try to describe what BTC actually is. No one can be sure of the protocol’s final form.

Bitcoin is a digital currency created in 2009 by a mysterious figure using the alias Satoshi Nakamoto. You can use it to buy or sell from people and companies that accept bitcoin as payment. But it differs in several key ways from traditional currencies.

Most obviously, bitcoin doesn’t exist as a physical currency. There are no actual coins or notes. It exists only online.

Interesting explanations about what Bitcoin:

Mental construct – Because value is subjective and we feel value for Bitcoin units.
Social construct – people feel value for Bitcoin units. And they become an intermediate commodity suitable for exchange, accounting, and store of value.
Legal construct – As an intermediate commodity it serves to cancel formal agreements such as debts, purchases, and pay taxes.
Economic construct – As it may be used to cancel debts and pay taxes it may be used as money facilitating commerce between untrusting strangers in different incompatible jurisdictions.
Technical construct – It is just software that enables a network. But that network organically emerges as a useful system or technical tool for the other constructs.

More…

Protocol construct – The technical system is actually the system of rules imagined and designed to maintain a highly secure Nash Equilibrium between node operators and users.
Mechanical construct – Although many see Bitcoin as a social construct only, it is as much of an objective mechanical system as it is subjective. Although people design and run it, it is immutable, just like the laws of physics in nature.
Physical construct – Bitcoin is designed to mimic gold in nature, but in a computer system and transferable thru communication channels. This is why we call it “digital commodity”.
Natural construct – All of the above emerge from nature. They are not imaginary or magical things, they are as natural as energy, matter, or living organisms.

We can play with semantics here, you can say that it’s a protocol. And also the open-source project that implements the software needed to fit the protocol. Or you can try to call Bitcoin as a kid in the adults’ world.

Bitcoin has no central bank and isn’t linked to or regulated by any state. The supply of the cryptocurrency is decentralized. And can only be increased by a process known as “mining”. For each BTC transaction, a computer owned by a bitcoin “miner” must solve a difficult mathematical problem.

The miner then receives a fraction of a bitcoin as a reward. At present, the mining power of Bitcoin’s network is 300 times more powerful than the world’s top 5 supercomputers combined

Anonymity matters

A record of each transaction, using anonymized strings of numbers to identify it, is stored on a huge public ledger – blockchain. This is necessary to ensure the integrity of the currency.

For most people, it is strange that bitcoin doesn’t exist as a physical currency. There are no actual coins or notes. It exists only online. And it is hard for the majority to imagine such a thing.

But can you imagine the internet?

We all use the internet in every segment of our lives but we can’t point out the finger and say “Here! This is the internet!”

Or how some understand the universe is infinite and how they understand the meaning of infinite, you would be surprised by the answers.

Do you exactly know how your mobile device works? Maybe some of you, but the majority don’t.

Frankly, for me is a total mystery how my dishwasher works but it will not stop me to use it.

“Writing a description for this thing for general audiences is bloody hard. There’s nothing to relate it to.” wrote Satoshi, July 5, 2010.

Fiat money is managed by a central bank, which manages the money supply to keep prices steady. They can print more money or withdraw some from circulation. Yes, if they think it’s needed, as well as using other monetary policy controls such as adjusting interest rates.

My teachers taught me how interest was compounded. The reasons may not be so clear. If we would learn banking history and monetary theory in schools, no one would use the fiat system. It is so obvious.

On the other hand, BTC is a lot simpler than the fiat system. And people are legally compelled to adopt fiat.

The people teaching youngsters these days have grown up under Keynesian economic theory. Also called Keynesianism. So, they strongly believe that money is defined as money only if you can touch it, smell it or hear the sound of counting money.

Number of users

The most popular BTC wallet and exchange provider, Coinbase, reportedly has over 13 million users. This would suggest that the number of bitcoin users is between 13 million and 22 million.

We can assume that the number of bitcoin users outside of the 32 countries that Coinbase services, will be several million. But this data doesn’t include major bitcoin economies in Asia.

So we can conclude that around 20 million bitcoin users globally can be considered as a fair estimate.

Why use bitcoin?

With Bitcoin people get the liberty to exchange value. Without intermediaries which translate to greater control of funds and lower fees. It’s faster, cheaper, more secure, and immutable.

The banks control the cash while bitcoin has owners.

Bitcoin is very useful as a service for fast remittances for an international system of payments, for example. It can help us do online shopping. It’s like an e-wallet which makes blockchain technology to store, track, and spend digital money.

BTC has a global acceptance and is less volatile than cash / local currency.

Due to this feature, it becomes easier to conduct transactions across boundaries and online. You can use this crypto all over the world without going through a conversion process. It is par with Gold and combines the best of cash and gold.

By providing an open market and no restrictions imposed by banks or governments. Bitcoin is peer-to-peer and open, but secure.

Bitcoin is making the biggest revolution in the finance industry in the last 200 years. Leading all cryptocurrencies, Bitcoin is at the forefront of the bleeding edge of blockchain innovation. I think it is necessary to stay patient and witness history first hand.

Nothing can stop that!

16th October 2018
Carry trade and how does it work?

How to capture the difference between the rates

By Guy Avtalyon

In this post, I’m gonna explain what is carry trade, how to trade this strategy, how to use it in Forex trading.

Niels Bohr, the famous Danish physicist, once joked that “prediction is very difficult, especially about the future.” No words could better express the difficulties associated with exchange rate forecasting. As anyone involved in the business of currency forecasting can attest, it can be a humbling experience.

‘Having endeavored to forecast exchange rates for more than half a century, I have understandably developed significant humility about my ability in this area.’ said Alan Greenspan, former U.S. Federal Reserve chairman. Some may think writing about the fortunes of the stock market is tricky, but try to observe currencies. That’s the challenge.

What is a carry trade strategy

A carry trade is a trading strategy in which a trader borrows money at a low -interest rate to trade the asset that is possible to generate a higher return. This strategy is very popular in forex trading.
This strategy counts on relative stability in asset prices. You know how an unfavorable exchange rate movement can easily wipe out the returns from the difference in the underlying interest rate.

This motivates some people to describe the carry trade as similar to picking up pennies in front of a fast-moving car.

What is the goal of the carry trade

The goal of this strategy is to make a profit from the interest rate differential. Sometimes that difference can be large. So adding leverage can literally tremendously multiply profits.

In currency trading, a carry trade is a strategy in which a low-yielding currency (one with a low-interest rate) is sold. And the funds raised are using to purchase a high-yielding currency. The purpose of this type of trade is to profit on the interest rate differential of the two currencies. In this strategy, traders use leverage to dramatically increase the profits earned through the carry trades.

Up to 2007 many traders borrowed in Japanese yen or Swiss francs. They were actually taking advantage of very low-interest rates in Japan and Switzerland and used the borrowed money to take long positions in other currencies that were backed by high-interest rates. For example, the Australian and New Zealand dollars and South African Rand were that currencies.

BTW, Japan has kept low-interest rates for quite a long time now. Australia and New Zealand have one of the highest interest rates in the developed world! In 2011 interest rates in Australia were as high as 4.5 percent!

Economists theories

Economists have developed a wide range of theories to explain how exchange rates are determined. Most studies conclude that for short- and medium-term horizons, up to perhaps a few years, a random walk characterizes exchange rate movements. But still better than most fundamentals-based exchange rate models. That studies find that models that work well in one period fail in others. They also find that models that work for one set of exchange rates fail to work for others.

A strategy that has attracted a lot of interest among international investors is the so-called foreign exchange (FX) carry trade.

FX carry trades entail going long a basket of high- yielding currencies and simultaneously going short a basket of low-yielding currencies. The empirical evidence suggests that the excess returns on this strategy have been fairly attractive.

Yet, investors need to be mindful that carry trades are prone to crash when market conditions become volatile. Hence, investors need to overlay simple carry trade strategies with well- thought- out risk management systems to help protect against downside risks.

How does a carry trade work in Forex?

Let’s assume that you went long on AUDJPY and kept the position open overnight until the next day. Basically you are buying AUD and selling JPY.

What happens the next day is that your forex broker will either debit or credit you the overnight interest rate differential between the two currencies. This rolling over of your current position is the carry trade.

Say, if the interest rate earned on AUD is 4.00% and JPY is 0.10%. Your profit from the interest rate differential is 3.9% per year! This is considered a positive carry trade. But there is also s negative carry trade. It happens when you, for example, buy JPY and sell AUD. So, you could end up with a negative interest rate differential.

This example is based on 1:1 leverage and assumes exchange rates remain constant for the whole year. Try to imagine applying leverage.

In the example above, if you had the leverage of 100:1, your return would now be 100 x 3.9% = 390% on just the interest rate differential!

When are carry trades successful?

We are still on the example of AUDJPY. If the central bank in Australia were to raise interest rates, then you would make even more gains. Therefore, you have to be mindful of the economic conditions in Australia. If the Reserve Bank of Australia is optimistic about the economy, then they will likely raise rates.

But, if the economy is slow and the RBA believes it needs to lower rates to stimulate the economy, then the AUDJPY as a carry trade would not be that successful. Meanwhile, if the AUDJPY exchange rate moved higher, in addition to higher interest rates, your long position on the pair would gain even more!

What is a Law of one price in a carry trading

The principle of “uncovered interest rate parity” states that the exchange rate of any two currencies should adjust in a way to exclude any chance of making a profit from an interest rate differential.

Furthermore, the Law of One Price states that the real carry cost of an asset should be the same in each country, meaning doesn’t matter from where you’re trading forex.

Carry trades can be greatly tough. Because the FX element of a cross-currency carry trade requires selling the low-interest-rate currency. But also, buying the high-interest-rate currency. In the core of the carry is the intention to make the exchange rate of the low-interest-rate currency fall relative to the other. If carry trades are enough large in volume they can remove any trend for exchange rates to equalize. That is exactly what generates profits in the longer run.

This directs us to believe that carry trades work best when risk aversion is low and investors are willing to invest in high yielding (risk) currencies.

You might be interested to find Leading Stock Exchanges In The World

11th October 2018
Bitcoin goes high – How Much?

2 min read

Bitcoin is the future, Fiat is past!

Why not start with these words? Popular VC Tim Draper said it. And we all know how good he is in his predictions. In 2014 with bitcoin at only $413, popular VC, Tim Draper predicted bitcoin to reach $10,000 in three years. This was fulfilled a month earlier. This prediction brought him a great reputation among crypto fans and followers. He also predicts a $100k Bitcoin in 2018, not categorically but anyway.

Let assume this growth happens at the same tempo as the 3-year journey to $10k. But that’s precisely how Draper feels about Bitcoin prospects and he understands a lot about bitcoin’s foundation.

WOW, then we’re in for six digits.

Many of the investors are actually currently worried due to the high volatility in cryptocurrencies.

Is there any reason for that?

A cryptocurrency portfolio manager Jeet Singh, stated at World Economic Forum in Davos, that the current volatility is completely normal when it comes to the cryptocurrencies field. He stated that it is normal for cryptocurrencies to fluctuate by 70% to 80% and that is the main reason why the current volatility does not worry him at all.

Is there a fear of volatility?

But, according to him, long-term investors need not fear the volatility at all. Because they are here to stay for a longer period of time, they would not have a problem to hold the cryptocurrencies for a longer period of time.

Jeet Singh compared cryptocurrencies with current leading companies like Microsoft and Apple. In the beginning, their stocks were also volatile. But, as the companies develop their business model, the stocks not only rose but they become much more stable.

Prediction

He further added that Bitcoin would reach as high as $ 50,000 this year. That means, If the current price of Bitcoin being around just $ 10,000, that would be a fivefold increase once again.

What is really happening on the markets?

The world’s largest crypto brokerage Coinbase is reportedly close to finalizing a $500 million funding round at a valuation of $8 billion. And Binance has started to become more active in the investment sector, funding blockchain startups internationally.

While major cryptocurrency exchanges like Coinbase, Binance, and BitMEX are seeing their businesses flourish with lucrative business models and high-profit margins, minor exchanges are struggling in the bear market.

Bear market

This week, the UK’s oldest exchange, Coinfloor, has slashed the number of its employees. After recording a decline in its revenues as a consequence of the drop in the daily trading volume of major cryptocurrencies.

Also, the emergence of many cryptocurrency exchanges in the local market causes this.

But Coinbase entered the local cryptocurrency exchange market of the UK. This has stagnated over the years due to the lack of infrastructure and user demand. It was eliminating exchange rates and appealing to local users that have been awaiting a reliable cryptocurrency exchange in the region.

In South Korea, a cryptocurrency exchange backed by the country’s biggest commercial banks. Internet conglomerates, and technology corporations such as Upbit, Gopax, and Korbit have imposed dominance over the local market throughout the past two years.

The fact that an exchange in the size of Coinfloor cannot sustain high-cost operations demonstrates that they need strong infrastructure and backing from major investors and conglomerates.

On Monday, 8. October, practically all the top 100 cryptocurrencies are seeing reliable growth on the day.

Ups and Downs

Bitcoin (BTC) has seen a strong boost, by press time growing almost 2 percent on the day to trade solidly above the $6,600 mark at $6,664.

The breakthrough to a higher price point comes after several days of sideways trading. One crypto trader joked just a few days before, he said that bitcoin decided to be the ultimate stablecoin.

That same day, a Bloomberg pointed up the top coin’s marked price stability, proclaiming that Bitcoin had “hit an inflection point with volatility at a 17-month low.” The flipside to such steadiness, the Bloomberg noted, is lower trading volumes, due to lower “speculative involvement.”

On its weekly chart, Bitcoin is now just over one percent in the green, with monthly growth a strong 8 percent.
Ethereum is around 0.6 percent in the red; monthly growth is close to 17 percent.

Ripple had however tapered off throughout most of early October: the token remains a stark 14.5 percent in the red on its weekly chart. But on the monthly base, its gains are, an astonishing almost 70 percent.

About other

The remaining top ten coins on CoinMarketCap are all in the green, almost all-seeing between 2 and 4 percent growth: Cardano (ADA) is uprising almost 5%. Firmly in the green: EOS (EOS) is up close to 4 percent on the day at $5.92, Stellar (XLM) and Litecoin (LTC) both up just over 2 percent.

Most of the investors are keeping away from the cryptocurrency boom for now. Many of them are just holding their holdings in order to find out whether the cryptocurrencies resume their uptrend or not.

We may say it is still too doubtful for most of the investors to take a call.

But the fact is, institutions are increasing their presence in the cryptocurrencies field. That would add value and credibility to the cryptocurrencies in the future. That’s why we can’t see further falling. The main point is that regulatory hurdles have to be sorted.

After that, we all can be sure that the value of cryptocurrencies would again more.

Risk Disclosure (read carefully!)

9th October 2018
Profitable Forex Trading By Using Two Approaches

Forex is short for foreign exchange, but the actual asset class we are referring to is currencies.

By Guy Avtalyon

If you want to be a profitable forex trader and have profitable forex trading, you have to follow some rules. You have to either win more often than you lose. The must is to win more on each trade than you lose.

Or better yet; do both.

Doing both is truly the hallmark of a professional trader. It can be very tricky though. As you are a new trader, it is probably best to focus on one approach. See where you can go from there.

I want to show you the ins and outs of each approach and help you decide which method suits you the best.

What is the relationship between the win rate and reward ratio in forex trading?

Before everything, you have to understand the relationship between a trader’s win rate, their reward ratio, and profitability. Assuming a trader risks an average of 10 pips on a trade to make 10 pips of profit. They will need to get 50% of their trades right in order to breakeven. Only if they win more than 50% of their trades, then we can speak about profitable forex trading.

What happens if you risk 10 pips to make 20?

You are trader forex trading with a positive reward ratio and therefore you will not have to win as many trades to breakeven or turn a profit. The opposite is true for a trader who trades with a negative reward ratio e.g. risks 10 pips to make 5. Such a trader will have to win more than 50% of their trades to breakeven and even more to turn a profit. There is an inverse relationship between a trader’s win rate and reward ratio. The larger your reward ratio, the fewer trades you have to win, and the more trades you win, the less you need to win on each trade.

What is profitable forex trading?

Forex trading with a positive reward ratio is a good place to start as a beginner. Why?

Because chances are if you are just starting out, you don’t quite yet have a talent for accurately predicting markets. Say your goal is to make twice as much as you are risking on a winning trade. We have to do some math. If you have such a goal, then your breakeven rate drops all the way down from 50% to 33% and any wins above 33% are pure profit.

If you aim for 3 units of risk (3R) on a profitable trade, your breakeven requirement drops even further to 25%.

This advice is offered by market makers with educational background. This advice is reliable, but what they ignore to tell new traders is that it’s actually harder to make 2 x risk (2R) than it is to make 1 x risk (1R). Anyway, this approach is still a great place to start as a new trader, we just believe in an open and honest approach to forex education.

What is forex trading with a positive win rate?

Trying to score profitability via a positive win rate isn’t the best idea for new traders, because you are not yet experienced enough to get the market right more than half the time. Aiming for one unit of risk in profit has a higher chance of success than aiming for two. The other option is trading with a negative reward ratio, such as aiming for less than a single unit of risk on a profitable trade.

But there is the problem with trading forex with a negative reward ratio: the more your reward ratio drops, the more trades you need to win to turn a profit. If for example, you only aim for half a unit of risk on a winning trade, your breakeven rate rises from 50% all the way up to 66.67%. Then again, there is a higher probability of profitable forex trading and success on trades with negative reward ratios.

Automated systems and forex signals

When looking at automated systems and forex signals, you often see systems that appear great because they are forex trading with extreme negative reward ratios. These systems will risk a hundred pips or more in order to make 5-10 pips. This can work for a long time, but eventually, volatility picks up and the stop losses start getting hit. Every stop-loss that triggers wipes out a bunch of winning trades and you start seeing sharp declines in the system’s equity curve. The characteristic of these systems is win rates above 90%. If you see a system with a win rate that high, look a little deeper. You’ll like to examine how exactly this unbelievable win rate happens.

Currency is known as an “active trader” opportunity. This type of opportunity suits brokers. That means they earn more due to the agility that accompanies active trading but it is also promoted as leveraged trading. Hence it is easier for a forex trader to open an account with a little money than it is required for trading stocks.

How to use forex trading as a hedge

You can use currency trading to hedge your stock portfolio too.

For instance, if some trader builds a stock portfolio in a country where there is potential for the stock to increase in value. But there is a downside risk in terms of the currency. For example, you might own the stock portfolio and short the dollar against another currency such as the Swiss franc or euro.

This means, the portfolio value will increase, and the negative effect of the declining dollar will be neutralized. This is good for those investors outside the U.S. who will eventually repatriate profits back to their own currencies.
With this profile in mind, this suits the best day trading or swing trading.

The other strategy of trading currencies is to understand the fundamentals and long-term benefits.

It is useful to a trader when a currency is trending in a specific direction. That means it offers a positive interest differential. Hence, it provides a return on the investment plus an appreciation in currency value.

This forex trading strategy is a “carry trade.”

Good timing is the essence of profitable trading. In both cases, as in all other trading activities, the trader must know their own personal attributes. In order not to violate good trading habits with bad and impulsive behavior patterns.

7th October 2018