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January 15, 2016, 10:44 am

Protecting Your Funds When Trading FX

by: The Financial Blogger    Category: Investing Ideas

Forex trading has caused large losses to many inexperienced and uneducated traders. For all of its numbers, charts and ratios, trading FX can been seen as more of an art than science.

 

As with anything talent is key, but at the end of the day it will only get you so far. The key to being successful is developing a strategy that keeps your losses to a minimum whilst maximising your profits. Below we’ve listed 7 tips to help protect your capital whilst risking it on the forex market.

 

Stick to what you understand

As a rule of thumb, if you’re unsure of what you’re doing, or don’t feel as if you can fully justify any decision you’re making then simply don’t place the trade. You should avoid trading on the basis of hearsay or rumours and ensure you understand both the positive consequences, and the adverse results that may result from any trade.

 

Discover Your Risk Tolerance

To get the most out of your trading career, it’s important to ensure you understand how you cope with risk. To start with, it’s essential to ensure that your tolerance for risk and allocation of funds aren’t overly liberal. It’s wise to carefully determine your personal goals and proceed accordingly, especially at the start of your trading career.

 

Strategy

To start any journey you need to know where you’re going and how you’ll get there.

Whether you’re shooting for financial independence or just trying to generate extra income, it’s wise to allocate a timeframe and stick to a plan at least in the beginning. Also knowing what you constitute as failure and define as success is imperative to gaining the insight necessary for successful trading.

 

Never add to a losing position

While this seems to be common sense, many novice traders will try to drag themselves from a loss by throwing more money onto the fire. It’s impossible to know how a currency pairing will move during any given period of time. Hazarding educated guesses is all you have in FX, meaning you’ll never have solid knowledge of where a price will be even in a short amount of time.

 

Simplicity is Key

Forex trading isn’t rocket science, however overcomplicating things can make it feel like it. You needn’t be a maths genius or economics wiz to be successful. Clarity of vision alongside well-defined, carefully chosen goals and techniques offer the best path to success.

 

Don’t go against the markets

No matter what level you’re at, trading against the market is always risky. Remember trends are called trends for a reason, and joining them allows you peace of mind. Fighting the trends will create stress, pressure, fear and probably a loss.

 

Restraining emotions  

Every is human meaning that greed, excitement, panic and fear will inevitably play a role.  However, emotions have no place in a traders calculations. It’s important to control your emotions and minimize their effect on your decision making. This is one of the big reasons traders are advised to start with small amounts. Having a logical approach, and reducing your emotional intensity is the best formula for success.

 

In conclusion, trading forex is risky. Nothing will remove the risk element but you can take these steps to minimise it, helping to protect your funds. By sticking to these basic principles you’re putting yourself in the best position to ensure your losses are infrequent and to an absolute minimum. If you’d like to learn more about FX trading then visit ETX Capital for more information.

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January 5, 2016, 5:30 pm

Trading Binary Options with Bitcoins

by: The Financial Blogger    Category: Investing Ideas

Within the past couple of years more and more people have started trading binary options. Binary options trading are different from trading traditional options because you do not actually make any type of purchase. Instead of buying stocks or bonds from a company or on the market you are simply making a bet to determine whether the price of a stock or commodity will go up or down within a set amount of time.

 

Trading binary options is done by purchasing a contract that states whether or not you think a certain asset is going to finish above or below a specified price within a set amount of time. The time frame is called the expiry. The expiry can last from as little as 30 seconds to several months away. If you choose correctly at the end of the time you will win the trade. The amount you win is a bit less than 100%, with many brokers paying from 65% to 85%.

 

Some of the assets that can be traded through binary options include currencies, stocks, commodities, and indices.

 

Bitcoin and Binary Options

 

With the rise in popularity of the online currency bitcoin, there has been interest by many traders to be able to use bitcoins for payment on binary options broker’s sites. Many safe binary options brokers have seen this trend and have started to allow their clients to make trades using bitcoins. This recognition of bitcoins as a currency has helped to expand the growth of the binary options market. While many brokers are currently only offering bitcoin as a pair with the United States dollar, some binary options brokers are opening up that deal with bitcoins only.

 

Bitcoin only Binary Options Brokers

 

There are several binary options brokers that are now offering bitcoins as a means of exchange. This means that all of the prices for binary options being traded are quoted using bitcoins as the currency. The benefit of this type of site for traders is that they get to earn bitcoins from the binary options brokers bitcoin account.

 

 

 

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January 3, 2013, 1:00 am

Best Stock Pick Competition Q4

by: admin    Category: Canadian Dividend Stocks,Investing Ideas

 

 

Just a quick post today to relay some results!

 

At the beginning of the year, a bunch of financial bloggers got together and picked 4 stocks (Canadian or US, ETF included). Each quarter we post our results. Dividend are included in the investment return calculation.

 

5N PLUS (VNP) -47.76%

I took a big risk on this stock and it didn’t pay off which explains why I’m stuck near the bottom, oh well, I’ve learned my lesson here:)

 

National Bank (NA) +11.61%

This was a logical and safe pick. In fact, National Bank stock has been the most profitable Canadian bank for an investor for the past 10 years. They continue their aggressive growth by acquisition strategy and they are definitely on the right track to continue. I’m confident that NA will continue to rack up some good profit in the future.

 

Intel Corp (INTC) -12.03%

Tough year for Intel and its future remains unclear.. hopefully it figures out things soon

 

Chevron (CVX) +5.08%

Decent year for Chevron:)

 

 

Here are the Results:

 

You simply have to click on the blogger’s name to see his pick and read his post. :

 

Where Does all My Money Go 35.64%

Million Dollar Journey 12.69%

My Traders Journal 8.63%

Dividend Growth Investor 8.26%

Wild Investor 6.88%

Dividend Mantra 6.05%

Intelligent Speculator 6.04%

The Passive Income Earner 5.87%

The Financial Blogger -10.78% (ouch!)

Beating The Index -51.56%

 

I’m actually doing a lot better with my dividend stock pick in my own portfolio! This is why I’ve recently launch a dividend growth book focusing on 3 major concerns:

 

#1 How to build and manage your portfolio with simple and practical strategies

#2 How to invest in foreign stocks considering tax implication and investing account types

#3 How to buy & sell stocks at the right time to cash your profit

You can check here to get the table of content : Dividend Growth

US Edition

Canadian Edition

Click here to Download  Dividend Growth eBookClick Here to Download

 

 

 

 

 

 

 

 

 

 

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October 1, 2012, 5:00 am

Best Stock Pick Competition Q3

by: The Financial Blogger    Category: Canadian Dividend Stocks,Investing Ideas

 

 

I’m taking a small break from longer articles today as we announce the results of our stock picking competition for the third quarter of the year.

 

At the beginning of the year, a bunch of financial bloggers got together and picked 4 stocks (Canadian or US, ETF included). Each quarter we post our results. Dividend are included in the investment return calculation.

 

5N PLUS (VNP) -58.48%

This is obviously the reason why I’m still in the cave for this year’s contest. I’ve bet on the fact that VNP has a strong history in its field and that it is a dominant player. Unfortunately, they bought a company that was way bigger than them last year…. And this company is based in Europe! With the current crisis, they saw their profits going bust and so the stock plunged. It is slowly recuperating but it won’t be enough to finish in the positive side L. I was hoping that a company would buy them out early in 2012… that was before they posted terrible financial results L.

 

National Bank (NA) +6.36%

This was a logical and safe pick. In fact, National Bank stock has been the most profitable Canadian bank for an investor for the past 10 years. They continue their aggressive growth by acquisition strategy and they are definitely on the right track to continue. I’m confident that NA will continue to rack up some good profit in the future.

 

Intel Corp (INTC) -4.34%

Everything was going well for INTC until recently. The global economic slowdown forced them to cut their 2013 outlook at the beginning of September. The stock automatically dropped by a few dollars. It was enough to bring INTC in negative territory year-to-date. On the other side, good financial results in the next quarter could easily push back INTC on the positive side. Techno stocks tend to fluctuate these days.

 

Chevron (CVX) +12.28%

With the recent announcement of QE3, the oil barrel went up and so does CVX. The market hopes that this new round of quantitative easing will boost up the economy and Chevron will definitely part of the companies that will benefit the most from this impact. CVX is a solid company posting constant financial results. I can’t say that I don’t appreciate their dividend either!

 

The best stock in our competition is Apple (APPL). 2 bloggers hold it in their portfolio and they are occupying the #1 and #2 spot in the competition. What a surprise, huh? I’m holding the second worst pick (VNP), Beating the index is holding the worst pick (SCS with -65.78%). No wonder why we are sitting on the last two spots of this competition! As you can see, when you only have 4 stocks in your portfolio, 1 stock is enough to bring you to the top or drag you to the bottom!

 

Here are the Results:

 

You simply have to click on the blogger’s name to see his pick and read his post. :

 

Where Does all My Money Go 21.99%

Intelligent Speculator 17.52%

My Traders Journal 10.67%

Dividend Growth Investor 10.39%

Dividend Mantra 5.32%

Million Dollar Journey 4.49%

The Passive Income Earner 1.34%

Wild Investor -2.21%

The Financial Blogger -11.04% (ouch!)

Beating The Index -13.77%

 

I’m actually doing a lot better with my dividend stock pick in my own portfolio! This is why I’ve recently launch a dividend growth book focusing on 3 major concerns:

 

#1 How to build and manage your portfolio with simple and practical strategies

#2 How to invest in foreign stocks considering tax implication and investing account types

#3 How to buy & sell stocks at the right time to cash your profit

You can check here to get the table of content : Dividend Growth

US Edition

Canadian Edition

Click here to Download  Dividend Growth eBookClick Here to Download

 

 

 

 

 

 

 

 

 

 

 
 

If you liked this articles, you might want to sign for my FULL RSS FEEDS. Then, you will get my daily post to your email and can read it at any time. To subscribe CLICK HERE

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July 9, 2012, 5:30 am

Stock Picking Contest Q2

by: The Financial Blogger    Category: Investing Ideas,Investment, Market and Risk

 

 

Wow…. Q2 was far from looking as good as Q1 on the market, huh? It’s interesting to see how fast the market can move based on a few bad news. I know… bad news coming from Europe are pretty bad. But still, most companies are making good money right now. Their value is still going down for no specific reason…

 

I’m getting dragged down by one of my pick after a disastrous first quarter; VNP continues its plunge to Neverland (as I’m never taking another gamble on the stock market!). Here’s the resume of my four picks:

 

National Bank – NA

National Bank is, once again, posting strong results during their last quarter. They also announced a dividend increase along with a repurchase program. In addition to that, they have been ranked 5th world most secured bank by Bloomberg. It’s definitely I truly feel that NA will be a good stock to hold for many years. It’s not doing much lately as the market is pretty bad. However, the dividend helps to be patient while the fundamentals are definitely there. National Bank is also showing the smaller P/E ratio among other Canadian banks :-D.

 

5N Plus – VNP

Argh! After a bad quarter, the management thought it would be a good idea to dilute shares with a new issuing. It had a catastrophic impact on the stock and we are now down by more than 50%! At least, their first Quarter of 2012 was showing positive earnings. They went from losing $0.54 per share to making $0.07 per share. Let’s hope that the next financial reports will be positive!

 

Intel – INTC

Another solid pick to go through the stock market storm as INTC is reporting strong results and steady dividend growth. I also like the fact that they are gradually entering into more partnership linked to tablets and Smartphone. This was their Achilles’ Heel as they are very strong in the computer environment. However, the growth is now coming from smaller gadgets J.

Chevron – CVX

Chevron is suffering from the oil barrel roller coaster value. Nonetheless, they continue to post strong financial results and dividend raise too. Can you the pattern with my 3 picks that are keeping their heads over the water? they all pay strong dividend. In a highly volatile market such as this one, it’s definitely the best place to invest!

 

And the results are….

 

Just click on the blogger’s name to read his article:

 

Where All Does My Money Go 13.34%

Intelligent Speculator                    12.25%

Dividend Mantra                             6.78%

Dividend Growth Investor          4.89%

Million Dollar Journey                   0.69%

My Traders Journal                        -1.37%

Passive Income Earner                 -5.65%

Wild Investor                                    -7.73%

The Financial Blogger                    -13.15%

Beating The Index                          -26.55%

 

Disclaimer: I’m long NA, VNP, INTC & CVX.

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