April 15, 2018, 10:38 am

Day trading for beginners – What you should know

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

“Being a rookie trader, it’s easy to forget the basic set of rules when it comes to day trading.” Tom Soyer, a senior financial analyst at Olsson Capital said in a conference held recently.

According to Soyer, a high percentage of day traders give up when they lose out on a trade. The main reason for this, however, is that these new traders have not taken the basic trading rules to heart. To make it easier for rookie day traders to begin a trading career, Soyer composed a list of basic rules to take into account when trading for the first time.

You are never too old to learn something new

It does not matter how long you have been dabbling in day trading, you always need to keep a close eye on trading publications. These can include chart, reports and financial records of the type of trading you are doing.

Don’t expect to become rich overnight

Day trading, although done in short timespans, should not make you think that you’d become rich overnight. As a new trader, you should be prepared to lose out on a few trades. Should you complete your day of trading and be able to cash out a substantial amount of money, do not expect that every day will go like that.

When it comes to margin trading

If you choose to borrow money from your broker to give your trade a bigger boost, you need to take into consideration that this type of margin trading holds its own risk. Should your trade be successful, you walk out with better results as a result of the money you borrowed. But if the trade goes south, your loss will be even bigger than when trading without borrowing.

Don’t trade according to what you hear

The media is full of opinions and speculation. Don’t fall victim to its claws. Yes, that’s easier said than done as we as human beings tend to get emotional about these type of things. Before you make a trade, know what you want from the trade and have a pre-set plan for how you want the trade to go. If you hear that the market is about to fall, make sure of the fact, read your charts and should it be true, exit the trade to minimize losses.

Keep your number of stocks low

If you’re a day trader that is just beginning out, it is better to keep the number of stocks you trade to a maximum of two per day. This gives you the ability to spot new opportunities much easier and keep your wits about you when keeping an eye on the markets you trade on during the day. As you gain more experience, you can increase your trades per day accordingly.

Don’t rush your trades

When the market opens in the hours of the morning, prices tend to be volatile as many traders are ready to execute their trades right away. As a beginner trader, it is better to wait for at least 20 minutes before making a trade as, by this time, the market should begin to settle again. Towards the end of the day, trade price volatility will be higher again as ,by this time, traders want to close their trades for the day. That being said, the best time for a rookie trader to execute trades would be at midday.

Keep your trading money aside

It is a good idea to keep the money you intend to trade with aside. That way, you won’t trade with the money that is intended for other expenses. As a new trader, you will have to be prepared to cut your losses with some of the money you have set aside as not every trade will fall in your favour.

If you follow the above-mentioned set of rules while developing a trading strategy, it is Soyer’s opinion that day trading will be much easier for rookies. Since new traders are still learning the tricks of the trade, it is better to play it safe before jumping into the deep and possibly drowning in trades you make without truly understanding what you are doing.

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March 15, 2018, 12:52 pm

Solutions to the problems you may face while trading online

by: The Financial Blogger    Category: Investment, Market and Risk,Trading

binary options, trading binaries, binary options trading

The process of online business is fast and cheap. You can do business without having to talk to live representatives without having to settle from your home comfortably. According to a senior financial analyst at Wilkins Finance, the speed and ability to unlock online business is fully related to support technology, which may fail at the very least. Other possible issues are the federation for customer service and investment decisions. The problems discussed below are to make you aware of what bad can possibly happen so you can have a backup ready.

Technical problems

The online business merchandise is just as good as server and software. Highly volatile business days can slow down processing processes and slow down the information process. If you do not have the necessary purchases and sales firms, especially in the fast-moving markets, you will find significant losses. Software widgets can end up delays in cost pricing and status information. This may result in business losses as you enter orders due to delays in false price or ordering reports.

Investors depend on internet and mobile services providers to investigate information research and business locations. If you do not have access to the internet access point, you will not get the exact information or select the key business locations. So to overcome this problem, you should have a backup device always ready and an alternative internet connection.

Customer service

Online brokers are a low-cost expense structure that allows them to submit leave to the commissions. You may be waiting for a telephone call for a long time, especially in non-profit markets, as well as trained and traded traders. Also, you cannot provide some commands through the phone, such as Release the Optional Options Commands. Brokers can prioritize affordable buyers and active businesses, which can expand the waiting time for middle investors.

Administrative measures such as exchange of funds between accounts or sending posters between brokers and long-term business opportunities may be possible. However, the brokerage firms that offer 24/7 customer service will be able to assist you whenever you are in need.

Feedback mechanisms

The business of online trading is that you are an investor, and you depend upon a broker. Online brokers usually do not offer sales recommendations. You need to save time for research, such as reviewing financial statements about corporate websites, investment links, and price charts on the financial website. You should consider double-budget funds that offer professional management and diversity at reasonable prices if you do not have a timely accounting account. In short, you will need some time to invest in your online trading business. Moreover, choosing the right broker will also prevent these problems.

If you have problems with your service, then you should have internet backup in your workbook or public library by employing regular administrative hours. For example, if goods are between transactions between accounts. Place market commands in fast-moving markets because these orders can be used instead of inappropriate prices. Review the general information on ideas about ideas before opening different brokers, service levels, and online accounting.

Sustainable business

Online investments can be dangerous for nonprofit investors because these emotions are easy to respond and can make a lot of investment decisions based on the raged emotions. In real equity, this stock should be held for a longer period of time, to make the Starter Market profitable for a gradual growth. If a single investor often sells a counter to the current events and economic conditions, then it may have benefited from long-term economic benefits.

Taxes

Easy access to online business can be the finest results of investment on investment.  You must pay 15% of investment profits for more than one year, but pay an ordinary income tax that is one year or less. Your income tax will be up to 35 percent. Therefore, it is a taxable ability to keep a long-term investment profile in the long run. The trick is also to avoid the tax rule by keeping the stocks for short periods of time.

It can be concluded that like every other business, in online trading as well you might face problems. However, one thing to be kept in mind is that every problem comes with a solution. Instead of panicking, work on improving the situation.

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March 10, 2018, 2:40 pm

Life Insurance: Protection for the Future

by: The Financial Blogger    Category: Insurance

How do you plan for the future? Do you think maybe five or 10 years down the road? Maybe planning for you is what’s going to happen next week? Sometimes, it’s important to plan for the long-term, both for your retirement and for the future well-being of your family.  When considering a long-term plan, think of adding a life insurance policy to your financial future. No one wants to think about their untimely demise, but a life insurance policy doesn’t have to be morbid—it’s a sensible part of financial planning. Here’s why:

Funeral Costs

The average funeral cost today ranges from $7,000 to $10,000. Can your loved ones suddenly afford $10,000 if you pass unexpectedly? Life insurance can help cover this cost so whenever your family needs that money, even if it’s long in the future, it can be taken care of.

Pay Outstanding Debt

Unfortunately, your debt doesn’t go away even if you pass. Debts such as a mortgage, student loans and credit card bills will need to be paid by your family, but your life insurance policy can be used to pay off those debts.

By adding a life insurance policy to your financial plan, you can give yourself and your family members financial protection knowing that debts can be taken care of, and financial stress can be lessened. What if you’re single and don’t have any dependents? Your debt could still become the responsibility of other family members, so having a life insurance policy is still valuable if you don’t have a spouse or children.

Cover Loss of Income

Are you the primary source of income for your family? If you share earning power in your family, would the loss of your income create financial problems? A life insurance policy could help cover the loss of revenue in the result of your sudden death. The beneficiary would have access to the death benefit to help maintain the life you have helped to build.

Protecting Your Retirement

Eventually we reach a point where our kids are grown, our debt is paid off or very close to it, and retirement is around the corner. Life insurance can provide for your spouse or loved ones should you pass away while on a fixed income. Rather than change plans and possibly come out of retirement, your spouse can be taken care of with your death benefit.

Consider talking to a life insurance agent as you plan your financial future. With a life insurance policy you can protect your loved ones from the financial burden of an unexpected death, help pay off debts, help cover the loss of income, and can help them to lead a financially secure life. It is one of the best plans you can make.

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February 27, 2018, 9:56 am

Types of Death Covered in a Term Insurance Plan

by: The Financial Blogger    Category: Insurance

Term insurance policy is the best life insurance policy. The purpose of the insurance plan will be fulfilled with the term insurance. If there is a risk of death, the policy proceeds will be paid to the nominee so that there will be a great reprieve from dependants. However, the policyholder should be aware of the limitations and exclusions so that the claims are honored by the insurance company without fail. Certain deaths are covered by the insurance policy.

Coverage of deaths

The sum assured will be paid to the nominee on the death of the policyholder. The policy should be in force and the payment will be done within the term. If the policyholder survives after the term, there will not be any benefits from the policy.

It is very much important to understand the difference between the insurance and the investment. The term plan is the purest and oldest form of life insurance. It will cover the risk of death and the payment will be made to the nominee. You should not consider the term plan as an investment. For the small monthly or annual premium paid by the policyholder, the insurance company will offer huge financial benefit upon the death of the policyholder.

The following Type of Death Covered in a Term Insurance:

If the policyholder dies suddenly in sleep, it is considered as natural death. The sum assured will be paid to the nominee upon filing the claim by the nominee.

The life insurance policy covers the accidental death as well. If the death takes place within 90 to 180 days after the accident, it will be treated as the accidental death. If the policyholder dies due to the accident, the hospitalization charges should be borne by the family members. When the policyholder is covered by the term insurance, the proceeds of the policy will be delivered to the nominee so that they will be able to overcome the financial distress in a very efficient way.

  • The natural death
  • Death due to health-related issues
  • Death due to medical condition or disease
  • Accidental death
  • Additional sum assured will be paid based on the additional riders
  • Covers sudden death due to unforeseen external event
  • Death due to the involvement of motor vehicle accident
  • Death due to fire accident
  • Accidental fall from the rooftop
  • Death due to drowning in floods, rivers or any other water source
  • Death due to lightning strike
  • Death due to earthquake
  • Death due to electric shock
  • Death due to cyclone or heavy storm

Benefits of term life insurance plan

While buying a life insurance plan, you should be aware of the Types of Death Covered in a Term Insurance Plan. You are advised to go through the terms and conditions of the insurance company and should compare various policies to choose the best policy for your needs.

  • Covers the risk of death
  • The insurance company will pay the sum assured to the nominee in case of the death of the policyholder
  • Offers tax exemption under section 80C of the Income Tax Act
  • The payment made to the nominee is tax-free

Death outside country

If the policyholder updates the information about his or her residence, the insurance company will cover the risk of death in a foreign country as well. The policyholder should inform the insurance company that he is living outside his country. The appropriate policy service form can be filled by the policyholder so that there will be seamless processing of the claim by the insurance company. Certain countries are marked unsafe for Indians. If the policyholder travels to those countries, the insurance company will reject the claim.

Claim settlement

The claim processing varies from one insurance company to another insurance company. If the death takes place two years after the issuance of the policy certificate, the insurance company will investigate the matter extensively. As the insurance company will take risk in issuing a policy with huge compensation, it will double-check the facts before settling the claim. There will not be any issues if the policyholder dies 10 or 12 years after subscribing the policy. The claim settlement will be done quickly.

Conclusion

The term insurance plan will protect the interests of the policyholder and his or her dependents. The risk of death will be covered by the policy and the lump sum payment is many times higher than the insurance premium. However, you should be aware of the terms and conditions under which the policy can be claimed. If the policyholder dies naturally, the insurance company will process the claim and the death benefit will be awarded to the nominee. Hence, you should know about exclusions also while buying the term insurance plan.

 

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January 31, 2018, 7:48 am

Play the Forex markets and win by following some basic rules

by: The Financial Blogger    Category: Investing Ideas

As little as ten years ago, if you had asked the average person on the street to describe a Forex trader, they would probably have envisaged someone along the lines of Jordan Belfort, the city slicker portrayed by Leonardo DiCaprio in The Wolf of Wall Street. In the brave new world of 2018, however, things have changed.

A large part of that is through necessity – where it used to be enough to have some money tucked away in a savings account and a half decent pension plan, these things are simply not delivering any more. Interest rates are still rumbling along at low levels, pension funds are in crisis and there is a gloomy perspective that you would do as well to hide your money under the floorboards.

So the search for alternative investments is certainly a driver. The other is the technological age. The internet has taught us that plenty of things we though mysterious are actually quite simple if you only have the right app. While true to an extent, it is as easy to lose everything trading forex as it is to make some significant returns. Here are some rules every would-be forex trader needs to follow.

Rule No.1: Only fools dive in

 

If you think you can make a killing in forex trading without setting up the basics first, you would be better off heading to the track and putting your money on a horse.

Find yourself a trusted forex broker, set up your account and practice with it in demo mode before you go anywhere near your first real trade.

Rule No.2: Keep it simple, stupid

 

According to apocryphal legend, the phrase KISS strategy was originally coined by the US Navy 50 or more years ago. Whether true or false, it is the most important forex tip you will ever follow. There is a choice of hundreds of currencies that you can trade if you really want to, and hundreds more convoluted ways of doing so. But if successful and established traders find success by following the KISS strategy, there is definitely a lesson to be learned for beginners.

Rule No.3: Avoid day trading

 

This is a refinement on Rule No.2. The hurly burly of day trading, coupled with the chance to leap in, make a killing and leap out again might sound as exciting as a night at the casino, but it also has other similarities with the roulette wheel that make it a poor choice. The problem is, there is so little in the way of useful data to inform decisions over such a short period.

Rule No.4: Winners are always ready to lose

 

Some trades go well and others go wrong, that is the way it works in the currency markets. Naturally, you want more winners than losers, but an even more fundamental rule here is that whatever happens, if a trade goes as badly as it can possibly go, you need to be able to carry on to the next one. That means following the well-known two percent rule, and sticking to it no matter what.

 

 

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