Tag: investing

All investing related articles are found here. Educative, informative and written clearly.

  • Investing in Cryptocurrency – The Pros and Cons

    Investing in Cryptocurrency – The Pros and Cons

    2 min read

    The Pros and Cons of Investing in Cryptocurrencies 2

    Investing in cryptocurrencies is generally a risky investment. Investing in cryptocurrency could be a good investment, or it could not. It depends on you and your attitude. In crypto’s early days there is no yes or no answer about the wisdom of investing in cryptocurrency. With this in mind, we will cover some pros and cons and give friendly advice. Remember, this isn’t professional advice, we don’t offer professional legal, investment, or tax advice.

    If you don’t just want to buy, sell, or invest in cryptocurrency. If you want to invest in cryptocurrency, you have several options.

    First comes first: You need to start investing in cryptocurrency with some flexibility. You have to be prepared to lose everything you invest in cryptocurrency. It probably won’t happen, but be careful. The least risky coins are the coins that are present the longest time and have the highest market cap and highest volume. Anything other than Bitcoin, Litecoin, or Ethereum is riskier. Bitcoin is the current top coin for resilience, market cap, and volume. Also the most expensive.

    There are several pros and cons to review before investing in cryptocurrency.

    CONS:

    The cryptocurrency market has been very volatile since its beginning. The price of Bitcoin can swing up or down hundreds of dollars in one day. We have already seen a few bubbles and busts in the past. There is a risk of the venture on a given coin even if cryptocurrency is prosperous. Even if cryptocurrency is a good long-term bet, we don’t know if any coin will be the one that sticks around. Even more true for the countless less popular coins with smaller market caps.

    The Pros and Cons of Investing in Cryptocurrencies 1Those with low-risk tolerance have a difficulty; they are inclined to getting weakness and pulling out at a loss while the market is fixing up or going down. An investor needs to be prepared to take a loss or sit on a loss for a while if the market goes down. That requires a certain type of mindset and expendable funds. There are some psychological factors to consider along with economic ones.

    The only way to trade cryptocurrency on the stock market is to buy GBTC (Grayscale Bitcoin Investment Trust), which trades at a premium. The simplest way to buy a cryptocurrency for a novice aside the stock market is via some company. They charge some fees for that, but the lowest fees are on the open exchanges of the internet. Between premiums and fees and finding a broker, all options for trading have costs and it isn’t easy to calculate.

    Spirit level of crypto investors is changeable. Like the Moon. Bad news in term of regulations can send crypto value to drown in one day. But the same news another day may have no effect. If you join some cryptocurrency group on social media, and you’ll note it goes from hot-to-cold with the weather. The market is a bit fussy, I think.

    PROS

    The cryptocurrency market is still young, and the most optimistic investors are predicting future prices, some of them claim that it can be for e.g. Bitcoin, $220,000 by 2020. Cryptocurrency is a very risky but potentially rewarding bet. More, if cryptocurrency is in a bubble, the trend could very well be toward cryptocurrency being an important medium of exchange and store of value in the future if the current price is lower than the highest price we will ever see. That makes it a good long-term bet. You can often buy high low and sell high. There is money to be made.

    The Pros and Cons of Investing in Cryptocurrencies 4
    Despite all its risks, crypto is possible the most exciting asset 21st century. It is decentralized, works on blockchain technology which is here-to-stay. You can find billions of motives about why everyone has to be excited about crypto. As much as reasons to be conservative in your investment.

    Don’t dump your whole saving into crypto, but don’t hesitate to put a small investment you are ready to lose, just to learn and have fun on your beginning. Later you will have the know-how.

    TIP

    If it is the bubble, then pop it!

    One of the reasons for taking extreme caution is the current potentially high price. If the price goes back down to 2015 levels, then the number of PROS will increase. The unknowns and high price and volatile market make it risky, but there are plenty of reasons to be excited despite all that especially long-term.

    Investing in cryptocurrencies is very risky, markets are volatile and the technologies are still quite young.

    But, they are still a great opportunity for anyone interested in investing.

    Treat them as you would any investment and do your own research.

    Step into this new world while is time.

    Risk Disclosure (read carefully!)

  • The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock marketWhat rules every investor should follow if want to be successful? Read to the end.

    By Guy Avtalyon

    Every field has golden rules, so this one has too.

    Fast money and easy earnings are mostly what young people want to succeed in the business world.
    They are attracted by exchanges, money is invested in shares.

    WOW!

    However, there are many curves, curvatures, spirals, and twists that, and if you don’t know how to avoid them, your trip to the stock market can be very short-lived.

    What are the golden rules for investing in the stock market, which should be known primarily to beginners in this business, but also to more experienced stock traders?

    Create a portfolio one of the golden rules

    You can do this in a simple way. There are many free portfolio managers on the Internet, so use some of them to make a free account.

    Create a fictitious portfolio in which you would potentially invest and monitor the situation for a while, a minimum of one month. This will give you the best insight into market volatility.

    Before you take the first step, the goal is to create a profitable fictitious portfolio as an investor on the stock market. This is really the golden rule.

    Among other Golden rules: Read business magazines 

    In order to successfully start investing in the stock market, you need to be aware of the world’s stock market. Also, what are the social events that affect the rise or fall of the price of shares?

    There are many respectable business magazines dealing with this topic (Forbes, The Economist, Kiplinger’s are some of the most famous ones).

    Follow the events in the global economy and finance and you will be able to swim more easily in the very turbulent waters of the stock market.

    Buy stock from a field you know well 

    Before investing money into something, you should understand the business the company is dealing with.

    The first stock you will buy on the stock market should be from the sector you understand and it is familiar to you.

    For example, if you know the banking sector, try to explore the market and find a bank whose stocks are good and worth investing.

    Never invest in the action itself, but in the company. This is one of the best golden rules I ever got. 

    Have realistic expectations

    There may be a problem if your financial goals are based on unrealistic presumption. Try to be realistic in your ambitions and goals. This will the most important golden rule for novices. 

    In this way, there are fewer chances to lose money or be disappointed in your stock market business.

    Do your own research one of the most important golden rules

    You will hear from people who are dealing with the stock exchange that they have bought some stocks. Just because the same was done by their friend or family member who understands this business.

    Accept everything with reserve. Before buying a stock, do research. If some stocks brought in earnings in the past doesn’t necessarily mean that this trend will continue.

    Always believe more to yourself than other people’s estimation.

    The stock exchange is NOT a money-making machine 

    This is one of the Golden rules. Most of those who want to participate stock market, have an unrealistic desire to double or triple investment in the short time frame.

    If you are one of them, then that’s not a job for you. For those who want to invest, 10 to 12% of the earnings for a long period is quite a good investment.

    You need to realize that you are just a small fish in a big lake and that your success depends on many factors. Some traders became really successful when they realized this golden rule. 

    Follow the clues and make conclusions.

    3 or 4 good stocks are enough 

    Don’t overplay is truly a golden rule. Especially because you are a beginner in this business. More than 10 stocks are a good portfolio, but for investment funds.

    It is true that they make more profit. But if you make a smart and wise decision you will earn enough money. Golden rules should be known to beginners in this business.

    Don’t try to predict the stock price

     Not even the biggest billionaires and owners of the largest multinational companies in the world are doing this.  No one is able to predict, at least for a longer period, several stock market cycles.

    Ability to guess the moment when the stock will have the highest value is still a myth. Even for those who have an insight into the business of some companies. Therefore, for successful business and investing in the stock market, you need to acquire certain knowledge and skills.

    According to many kinds of research, the risk of investing in the stock exchange is most often taken over by young people who have just finished college.

    But, like in every other business, the experience you get, will help you to be wiser in making decisions in the future. 

    That’s how it works!

  • What Is better: Trading or Investing and what are the differences?

    What Is better: Trading or Investing and what are the differences?

    2 min read

    Let us explain the differences between traders and investors, at first.

    Stock traders are individuals (or entities) engaged in the trading of equity securities, or the transfer of other financial assets.

    They work either for themselves or on behalf of someone else.

    They may operate as agents, hedgers, arbitrageurs, speculators, or investors.

    Stock investors are individuals (or entities) who use their own money to buy equity securities. The goal of the stock investor is to gain returns, which come in the form of income, interest, or appreciation in value also known as capital gains.

    DIFFERENCES BETWEEN TRADING AND INVESTING

    Investing and trading may often be classified together.

    But, they are both different ways of attempting to profit from the financial markets.

    The goal of making investments is to progressively increase wealth over a long period of time by using the buying and holding of a portfolio of stocks, mutual funds, bonds and other methods of investment.

    Trading involves short-term buying and selling of stock and commodities such as currency pairs and other instruments. The goal is earning profitable returns which outperform a traditional buy and hold investing.

    For example, while most investors may be satisfied with a 10% annual return, traders may seek to achieve this per month.

    Period of acting

    Return on investment and payback period seem to be the two most commonly used financial metrics for making sustainability investment.

    Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! The trader holds stocks until the short term high performance.

    On the other hand, investing is an approach that works on buy and holds a principle.

    Investors invest their money for some years, decades or for the even longer period. Short-term market fluctuations are irrelevant in the long-running investing.

    Growth of capital

    Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks.
    So we can say, trading is the skill of timing the market but investing is an art. 

    The real art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the market.

    Risk of both fields

    Both, trading and investing, include risk on your capital.

    But trading involves higher risk and higher potential returns. The price might go high or low in a short while.

    Investing takes a while to develop. It involves comparatively lower risk and lower returns in the short run. But might deliver higher returns by putting together interests and dividends if held for a longer period of time.

    Daily market cycles do not affect much on quality stock investments for a longer time.

    Essentially differences

    Trading is a one day match while investing is a championship.  

    Similarly, traders are skilled, technical individuals, they learn market trends to hit higher profits in the stipulated time. It is related to the psychology of the market.

    Investors, on the other hand, analyze the stocks they want to invest in. Investing also includes learning business fundamentals and commitment to stay invested for a longer-term.

    It is related to the philosophy that runs the business.

    Traders put money in a stock for a short-term,  buy and sell fast to hit the higher profits in the market. Missing the right time may lead to the loss.

    They look at the present performance to hit the higher price and book profits in the very short term.

    Investors keep themselves away from the trends and invest in value.

    They invest for a longer period of time keeping the attention of the stocks they hold. They wait till the stock reaches its potential.

    You are the one to decide is your goal  trading at a higher price making a smaller profit in a short time. Or holding/investing on and sell at much higher price in the long run is what you aim for.

    A key rule of trading is to only do so when you are certain that there is an upcoming future event which is predicted to drive the stock value of an organization or entity higher.

    When trading, there are certain strategies which must be put in place.

    Traders should take note of the news and use it to make an educated decision which will hopefully enable them to make a profit afterward. This shows the difference between trading as a short-term investment and investing as a long-term method of gaining wealth.

    When investing, the goal is to bank profits over the long term.

    With dips in value simply providing the opportunity to buy more of the commodity in question. Investing means sitting it out when the commodity rises in value as there will likely be more good news ahead for the company and more profits to be made.

    If you are new to the world of investing and trading, it’s important to know which you are going to choose.

    The imperative to increase your financial gain is what defines it.

    Knowledge of the subject is important. 

    If you are knowledgeable about the stock market but have little idea about how to trade Forex, for example, you will naturally head over to the stock market for your first investment.

    General advice: Don’t get investing and trading confused – it could seriously hurt your portfolio!

  • Millennials Have Nothing Saved For Retirement

    Millennials Have Nothing Saved For Retirement

    1 min read

    Hey, millennials! What are you trying to do? Are you saving for retirement?

    You have really upped your game when it comes to saving for retirement: only 1 in 6 millennials reportedly have $100,000 socked away.

    In fact, most millennials are not on track when it comes to saving for retirement. Statistics show that 66% of people between the ages of 21 and 32 have absolutely nothing saved for retirement.

    I know, you are not surprised. I’m not either. Young people do not have leftovers for savings. Many have started to work at a time of stagnant salaries and high unemployment. 

    Pensions are disappearing, the future of social security is uncertain.

    It’s likely we’ll live forever.

    Millions of millennials have little or no savings.

    In the first place, they believe they’d be better off by putting their money elsewhere. Some have to pay off student loans.

    Some are trying to build up their own business.

    Many started to work at low-wage jobs for a few years and then went back to school to improve their employment chances. And some have more immediate costs like childcare and rent.

    We can recognize the ruthless pressure to save more for a distant future.

    And it is completely disconnected from your reality.



    We each face different circumstances and desire different things in life.

    But supposed experts continue to implore this entire generation to save in retirement accounts.

    Do they know that only focusing on saving for the future means the possibility to neglect more pressing financial issues?

    Such common sense rule about savings disregards life cycle priorities that differ from those of the generations past.

    Instead of cashing out after working at the same job for 40 years, many of millennials would rather enjoy a more entrepreneurial career while earning well beyond typical retirement age.

    Let me be clear!

    There’s nothing wrong with saving for the future and using the tax advantages of retirement plans. It’s mathematically true that starting to save early in the life improves our odds of having enough later.

    But, it’s necessary to recognize the cost of missed opportunities. Saving reflects the safest choice, that’s true.

    But doing as experts try to advise, might hold back millennials from taking any financial risk to pursue more entrepreneurial efforts now.

    Many young people have finance-related fears of an uncertain future and how to make their career choices.

    This is not to say everyone should avoid stable jobs or great retirement plans.

    No, that means that millennials avoid sacrificing but they are taking risks.

    And that makes sense.

    Taking a risk by investing in yourself to build a business could not only lead to greater wealth but could provide a far more fulfilled life along the way.

    Their different needs and preferences should define their financial plans, not any of the many generalized “rules” we often hear. But they shouldn’t completely abandon long-term savings, they should think about how best to use their extra dollars, both to establish their financial security and to find more fulfilling careers and happier lives.

    About 25% of millennials said they were not eligible to participate in an employer-sponsored retirement plan because of their part-time employment status.

    In terms of preparing for retirement, millennials have three strikes against them from the get-go.

    First, because of limited access to retirement plans at work, millennials will struggle to build retirement savings.

    Second, they are less likely to have bought a home, and home equity is a valuable retirement asset.

    And third, they are more likely to be burdened by student loans.

    That’s why a lot of millennials take chance in trading and investing with low fees.

    As a generation which is forced to plan from day to day, it is not a problem for them to trade on a daily basis.  Or to put their extra incomes in some stock investment.

    That’s good work, guys!

    Your job in this world is not to solve the problems that baby-boomers left to you, but to take care of yourselves and make your life better and easier.

    In that way, the whole world will be better placed.

    But before you start your adventure try some free demo account and learn and test your skills. 

    And you have to be very cautious when you have to decide which brokerage to choose.

    You have a plenty of them to choose from, and for the good start.

    We recommend you to read some of our recommendations and predictions.

    Good luck to all of you, millennials!

    Risk Disclosure (read carefully!)

  • Trading Stocks Platform – How To Find The Best

    Trading Stocks Platform – How To Find The Best

    2 min read

    (Updated October 2021)


    The best trading stocks platform must be available from the beginning of the signup process.

    Trading stocks platform is simply software for trading, it’s a kind of online broker. It is very important for any investor. And the most powerful tool in your hands. Every trader has it’s own investment style of trading. An abundance of brokers’ offers allows individuals to choose what best fits their needs.

    If you’re an active trader looking to try your hand at beating the markets, you probably have a good idea of what you want from a brokerage: low costs, premium research, innovative strategy tools, and a rich with features trading platform.

    trading stocks platform

    This era of trading stocks platform makes the world as high-risk/high-reward investing accessible to the wide public. Profitable investing takes time and hard work. It also requires you to use the best trading stocks platform that fits your investing goals, educational needs, and learning style.
    If you are new investors, selecting the best trading stocks platform can make the difference between a great new income stream and an inevitable frustrating handover.

    You have to know one thing, there’s no sure-fire way to guarantee investment returns. But there is a way to set yourself up for success by selecting the right trading stocks platform that best suits you. I’ll try to show you all the important things you should be looking for in your ideal brokerage on your path to find the best online broker.

    For a starter, take a moment to focus on what is most important to you in a trading platform, before you start clicking on brokerage ads. You’ll be surprised!

    Recognize your needs when choosing a trading stocks platform.

    You must know them.

    If you are a novice, you may prioritize things such as basic educational resources, large glossaries. Also, you might prefer easy access to support services. Maybe the ability to have practice trades before you start playing with real money is more important to you.

    For example, an experienced investor, possibly someone who executed hundreds of trades already but is looking for a new trading stocks platform. Such will prioritize advanced charting capabilities, conditional order options, or the ability to trade derivatives, mutual funds, commodities, and fixed-income securities, as well as stocks.
    Trading Stocks Platform - How To Find
    And you have to be honest with yourself about where you are right now in your investing tour and where you want to go. Do you want to try your hand at day-trading but don’t know where and how to start? Maybe you like the idea of tailoring your portfolio, or you want to pay a professional to provide it done right?

    For now, I suggest you start with this crucial deliberation as a way to determine which of the brokerage features would be the most important to you.

    To help yourself to find and use the best trading stocks platform be honest when you are answering these questions.

    a) How much do you already know?
    b) What kind of trades will you want to execute?
    c) Are you an active or passive investor?
    d) What kind of help do you need?
    e) Define your goals

    Be brutally honest with yourself about how much time, energy, and effort you are willing to put into your investments. Your answers may change over time, no one can anticipate all their needs and goals for the rest of their life. Just start with where you are right now.

    Pay attention to several things while finding the best trading stocks platform



    * Does the brokerage website offers two-factor authentication
    * Do they clearly explain how they use encryption or “cookies” to protect your account information and how they work?
    * Try searching the web for reviews of the brokerage, using keywords like “insurance claim”, “fraud protection”, “customer support”, “chargebacks”, “easy withdrawal”
    * Will the company reimburse you for losses resulting from fraud? etc.

    And then test it!

    Every brokerage should have a decent description of what kinds of tools and resources it is trading stocks platform offers. But sometimes the best way to evaluate platform quality is to give it a test drive. For brokers that allow you to open an free or demo account. It might be worth the effort to go through the signup process just to access and test the trading platform.

  • EToro or Tradeo, That Is The Question?

    EToro or Tradeo, That Is The Question?

    We made a comparison

    4 min read

    ***eToro USA LCC does not offer CFDs, only real Crypto assets available

    eToro and Tradeo? It is very hard to make a decision about which broker suits you when you want to start trading or investing in cryptocurrencies. You can find a lot of offers but whom to trust? And that is the most powerful weapon in your hands. Freedom to check all of them. I suggest testing everyone who has a demo account.

    OK, not exactly all, but let’s say the first 5 on the radar. In intention to help you, we will try to make a comparison between the brokers, eToro and Tradeo.

    When you are reading reviews about both, you will find that both are reliable. But there are some PROS and CONS on both sides.

    ABOUT Etoro and Tradeo

    EToro is one of the largest currency trading companies operating currently in global financial markets. Forex eToro was established in 2007, its headquarters are located in Limassol (Cyprus) and this broker is a Cyprus Licensed and registered investment company.

    Tradeo (registered in Cyprus)  is not, strictly speaking, a broker in its own right, but a partner of FXGlobe Ltd, who are the actual providers of the brokerage services obtained through the Tradeo platform. They’re an STP brokerage (not a market maker), which means they don’t trade against you.

    EToro is a leading social trading platform and takes advantage of the most advanced tools, advice, and support by top professionals.

    Tradeo is not the first social trading platform, but they are one of the newest and most heavily invested in the social trading concept as the new wave of Forex’s future.

    The fact that eToro has over 5 million users shows that their idea of social trading found it, enthusiasts, globally.
    But Tradeo is one of the first trading platforms around that have fully integrated both trade execution and social trading functionality into the same interface.

    After we were testing eToro and Tradeo with a smaller real account, we have some experience to share with you. So, let’s start!
    eToro and Tradeo  eToro and Tradeo

    Features

    our preferred trading platform system is designed to be as user-friendly and transparent as possible. Terms are carefully explained, tutorials are readily available, and policies are straightforward.

    Tradeo combines social trading with an advanced, synergistic trading platform, a platform that fully integrates both social and trade execution within the same visual interface.

    eToro and Tradeo have enjoyable web and mobile trading platforms and good social trading experience.
    To open a real account on eToro, the amount you need to deposit vary across countries and with Tradeo it is €100 but both have free accounts. Tradeo wins this round.

    On Tradeo signing up is easier since only one sign up is required.

    We have to say that social trading as a form of trading has been largely confined to platforms like eToro or ZuluTrade. That was the case until the introduction of Tradeo’s social trading network, which gave social traders an alternative social platform to trade on.

    The eToro ‘Copy Portfolio’ platform allows traders to copy what they refer to as Popular Investors. By following the trends and decisions of experienced traders, newcomers can make a profit without having to learn all the complexities involved. (Also, through the eToro trade copier venue, popular investors are rewarded for sharing their expertise, making this market an effortless second income for veteran traders.)

    But Tradeo went a step further. You can follow experienced traders on Tradeo too. One of the unique features of the Tradeo social trading platform is that additional commentary is provided that explains the strategic moves of one’s choice of partner. In other words, a trader may learn as he/she goes along with each mirrored trade. They can chat directly, just like Facebook, with traders that have a wall where they can see what your “friends” are doing. Automatic stop-losses may also be set for added protection.

    EToro and Tradeo both have a fast and seamless account opening process, as we already said a bit simpler on Tradeo.

    SUPPORT SERVICE

    our preferred trading platform support service is not available 24/7 and traders have many difficulties to contact acc officers especially if they don’t live in the same time zone. EToro doesn’t provide live chat (you have to fill the ticket and wait for an answer but not too long) and it is a problem for some traders.

    Tradeo highlights its reliability is the quality of their customer support service. To provide their clients with unfettered access to the support services, Tradeo has made their support services available on a 24 hours basis. This means regardless of the time of day, a trader can always request assistance from the support staff at Tradeo. Access to their support services is enhanced by the fact that traders can communicate with the support team through email, live chat, or the telephone.

    Both offer multilingual communication.

    Free demo account

    Both have unlimited FREE DEMO ACCOUNTS. EToro with $100,000 paper money and Tradeo with $50,000 paper money.

    eToro and Tradeo

    76% 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.

    eToro and Tradeo platforms are easy to use and the withdrawal process is fast (account opening is completely hassle-free and super fast).

    Both brokers have acc managers who are a real asset and always available, along with great info, but eToro doesn’t provide live chat.

    But something has to be NOT GOOD 🙂

    our preferred trading platform CONS:

    1. Their spreads are slightly more than with most other brokers and their trading platform isn’t as advanced as offered by other brokers.
    2. The data eToro provides is not completely transparent.
    3. You cannot download or view the full trading history of the traders you may want to copy and the performance statistics only go back for 1 year.
    4.  The disclosed deadlines are long and you should expect them to be even longer than it is disclosed (instead 5 you can wait up to 10 days)
    5. Does not accept Bitcoin deposits/withdrawals
    6. Limited cryptocurrency listings
    7. No live chat with customers according to testimonials
    8. The financial offices are  not located in different time zones, which makes communication difficult for the  customers

    Tradeo’s CONS:   

    1. Only One Account
    2. Limited Payment Options
    3. Currently not so developed community
    4. High spreads    
    5. There is a slim column at the bottom of the page for opening an account somewhat slightly annoying. It pops up on almost every page and often interferes with the rest of the information posted there.
    6. Salespeople can be pushy
    7. The company refrains from publishing exemplary spreads – customers with an interest in this matter must ask support for a current listing.

    We recommend you to read this too: How to find and use the best online stocks trading platforms?

    IMPORTANT  BENEFITS of eToro and Tradeo

    Tradeo has a Live stream of trading signals that allows you to view what other traders are buying and selling in real-time and also Live market notification that keeps up-to-date with market movements and improves your trading decisions.

    Tradeo has  Social WebTrader, an advanced trading platform, layered with social data such as technical indicators and analysis, social charts, one-click trading, free trading signals. And there is one feature that makes the Tradeo’s social chart a little special: Real sentiment and volume indicators which may be switched on or off at any time. This is true data showing where the majority of Tradeo’s clients have their positions on any given currency pair, and how much is being traded through the brokerage. These can be powerful tools for traders who know how to use them.

    our preferred trading platform Social Trading features are by large the most evolved in the field.

    All traders have a public profile, which can be freely viewed, where several data of past performances can be found. Everyone can follow everyone else, just like all trades can be replicated. Even someone who has never manually opened a trade, by simply replicating other’s trades, can be copied (maybe even you, one day).
    Even though it has been improved since the users’ performance view is still not at the same level as the other companies in the field.

    But let the traders speak for themselves. Here are some testimonies.

    They said about eToro:

    * EToro is simply the best and easy to use for newcomers. There is a difference between losing because you made the wrong decisions and a poor site. Most of the comments on this site tell me more about a poor loser than eToro.
    *  It is the worst platform I came across, freezes 2-6 hours every week during peak times.
    * Poor execution (always 8-10 pip delay for execution on top of spreads). You cannot do market orders and have to wait to manually open trades and when you open you lose out 8-10 pips due to poor execution. There is no trailing stops either.
    * It seems pretty impossible to reach a customer service representative.

    They said about Tradeo:

    * I was heavily scammed by Banc de Binary. I won them finally but without help of Tradeo I would not have done it. Guys from Tradeo told me one thing that no regular trader knows. Regulated brokers are not allowed to give signals. That is strictly prohibited in terms of licence but however they do it. That was the main reason I got a positive decision from the Ombudsman of Cyprus and even after that it took about half a year of fight to get my money back. I highly recommend Tradeo as a reliable broker.
    * I started with Tradeo 2 months ago. Since then I had really good support. I like the social features and that you can copy other traders. Of course it is not always 100 % profits, but it far better results than if I was trading on my own. I made withdraw 1 week ago and 3 days after I received it without fees. So based on my experience till now I recommend Tradeo both hands.
    * I am very satisfied with the attention. Complete users expectation. I received good bases to use the platform, good explanations and customer support. Fast transactions every time I wanted to withdraw money. Highly recommended!
    * I got insulted by their sales people after repeating call because I was not interested after testing the demo.

    FINAL WORDS

    eToro would have scored higher if it was listed on a stock exchange or provided more transparency about its financials. Based on our research and testing we think eToro is not a scam, it is an honest business with regular operation problems. And we hope they will solve them.

    Tradeo is one of the better ‘trading platforms’ in terms of social interaction features offered.  Wonderful for beginners. Hence Tradeo is more suited to active traders who enjoy engaging with others than passive investors who just want to copy other traders without monitoring their positions.

    We hope that this article was helpful to you. If it is that case, feel free to share it with others.

    You might like to know Why Are There People Who Profit In Trading?

    ETORO DISCLAIMER:

    eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

    Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

    Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

    Copy Trading does not amount to investment advice. The value of your investments may go up or down.
    Your capital is at risk.

    Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and
    you should not expect to be protected if something goes wrong. Take 2 mins to learn more

    eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

     

  • Trading Or Investing – What’s Better Strategy?

    Trading Or Investing – What’s Better Strategy?


    Understand the differences between trading and investing to be able to choose your strategy for approaching the stock market

    By Guy Avtalyon

    Trading or investing? Actually they are two very different strategies of trying to profit in the financial markets. The goal of investing is to continuously build wealth over a long time through the buying and holding of a portfolio of stocks, mutual funds, bonds, and other investment products.
    Investors usually increase their profits through compounding or reinvesting any profits and dividends into new stocks

    Trading versus Investing

    Investments are usually kept for years, sometimes even decades. There are many advantages to investing for a long time, for example, interest, dividends, can give profits also. Investors are more concerned with market fundamentals, such as price/earnings ratios and management predictions.

    On the other hand, trading involves the more frequent buying and selling of stock, commodities, currency pairs, or other, with the goal of generating returns that outperform buy-and-hold investing. Trading profits are generated by buying at a lower price and selling at a higher price within a short period of time. But, trading profits are made also by selling at a higher price and buying to cover at a lower price (known as “selling short”) to profit in falling markets.

    For traders, the stock price action is more important. If the selling price goes up, they will usually want to sell the stocks they hold. Trading is more the art of right timing while investing is the ability to create wealth by increasing interest, plus dividends over the years. Investors’goal is to keep excellent stocks in the market. Trading will give you a chance to profit on short-term market movements.

    Investing means to hold stocks for a longer time, longer than 5 years, for example. But some investors hold their excellent stocks for decades and sometimes they are the part of the inheritance.

    Stock investor versus stock trader

    Stock traders and stock investors approach the stock market with the same objective but use different modus operandi. But stock investor tries to achieve this through a single transaction, whereas the stock trader chooses multiple transactions but in quick succession. The stock investor just buys and holds while the stock trader buys and sells stocks on a continuous basis.

    Select stocks for investment

    Stock investors are very patient and have the tendency to hold stocks until the market realizes their actual worth.

    Stock traders are simply concerned about the price movement and they are ready to buy an overvalued stock if the price movement suggests so. They are least worried about the valuation of the stock.

    Trading tools for trading and investing

    Stock investors rely on fundamental analysis for identifying investment avenues. They utilize top-down and bottoms-up approach together with ratio analysis for stock selection.

    Stock traders employ technical analysis to maximize their returns. They are concerned about past and current price movements.

    Different market niche

    Stock investors pay more attention to taking dividends payments while traders never or rarely pay attention to dividends. This limitation makes the derivative market more suitable for traders and the cash market for investors.

    Why you have to know all of this?

    You have to know, to recognize, your own psychology before entering the market. To find which of this technique suits you better. Identifying your personality will enable you to employ the right tools and techniques to be a winner.

    If you are comfy with speculation, be a trader, and if you are a hunker, choose to be an investor.

  • A Trading Portfolio Should Look Like…

    A Trading Portfolio Should Look Like…

    Take a big breath and a pencil.

    2 min read

    Everyone has dreams about how the good life should look like. But it, besides earning enough money, it is necessary to build an investment or trading portfolio. Especially if you want to invest or trade cryptos.

    Before you begin building your complete financial portfolio you have to be calm and reasonable.

    Take a big breath and a pencil.

    The whole process of building a trading portfolio should be done in SEVERAL STEPS:

    STEP 1: Define why do you want to invest or trade. Your purpose is very personal.  If you thought saving and investing meant the same thing, you were wrong. Savings are the unutilized part of your income. Only when you put your savings partially or entirely into an investment instrument, it qualifies as an investment.

    STEP 2: Be realistic about your appetite for risk. Most of us know how much we have saved to date but very few of us have a realistic understanding of how much risk we’re willing to take on to achieve our financial goals. Your risk appetite will depend on your age and financial responsibilities.

    Young investors are under enormous stress! READ MORE

    STEP 3: Understand the relationship between risk and return. Risk and return are directly proportional to each other. Higher the risk involved, higher is the return and vice versa. For example, you have promises higher returns compared to fixed deposits, but it also comes with a relatively higher risk.

    Step by step to the trading portfolio

    STEP 4: Create a contingency fund. Honestly speaking, this has to be the first. Before you invest or trade anywhere, you must create a contingency fund for those rainy days. A contingency fund worth six months of your current income is good enough to keep you from dipping into your investment funds.

    STEP 5: “If you don’t know where you’re going, you’ll miss it every time.” – baseball philosopher, Yogi Berra. That means, you know your purpose for investing, but do you know what it will cost to achieve that purpose.

    STEP 6: Invest with a plan. The most successful portfolios are assembled based on a solid understanding of the fundamentals of the individual securities that comprise the portfolio. The trading portfolio should also factor risk tolerance into the balancing discussion.

    STEP 7: Give it time. While there may be some investment choices that you hold for shorter periods of time than others, overall, maintaining the long view should deliver consistently positive returns.

    And general advice while building a trading portfolio: TRY NOT TO BE OBSESSED!

    Markets can be volatile from day to day, even month-to-month, never mind hour-to-hour especially the market of cryptocurrencies. But over longer periods of time, volatility subsides. Build your portfolio and let it run.


    Checking the market every 15 minutes or so won’t affect your portfolio, but it will affect your sanity.

    When a lot of people think of investing or trading, they imagine painstakingly picking individual stocks, tracking their daily performance and constantly buying and selling. This may be good and interesting for TV shows or movies. But in real life it is agony.

    All you need to do is pick a couple of funds that attempt to mimic the total market’s behavior, and, for the most part, leave them alone for 5 or 10 years. It’s very simple, and it’s something everyone can and should do. In fact, it’s one of the best ways to effortlessly build wealth in the long term.

    There are more cryptos to the market and a good portfolio will usually include a few different types of investments.

    Are there any differences among trading portfolios for different assets?

    But when we are speaking about the trading portfolio, the principle is the same for cryptos and stocks: suitability, balancing different sectors and fund/crypto types.

    You can build a cryptocurrency portfolio using a risk-reward formula if that is acceptable to you. You are that one who has to decide how much risk you want to take on and that should influence which coins you invest in.

    Recommendation is keeping at least 50% of your portfolio in safe-ish coins like Bitcoin, Ethereum, Litecoin, Icoin.

    When building your own cryptocurrency portfolio you should not simply copy mine, always do your own research and decide which coins you can be excited about. Crucially, the entry point is very important and I entered many of these coins months ago when they were cheaper, there may be better buys out there right now. Buying more coins to expand your cryptocurrency portfolio is a smart idea.

    Diversify trading portfolio


    The more you diversify, the better your chance of hitting a coin that flies to the moon.

    To properly expand your portfolio, you will need to join a trading platform, some of the largest and most trusted trading platforms which list a wide selection of decent coins.

    Once you have your BTC in place on a cryptocurrency exchange, you can then expand your portfolio and buy other coins.

    How to structure your stock portfolio? HERE IS THE ANSWER