Currently browsing Investing Ideas

February 20, 2020, 8:14 am

Building a trading strategy like an elite trader

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

Everyone wants to earn a big profit in the Forex market. Trading has become a very popular craze among young investors as it offers financial freedom. But making a skilled trader and earning regular profit is a very tough task.  Those who are regularly losing money at trading don’t have the skillset to deal with the market dynamics. They are taking too much risk in each trade and losing a significant portion of the investment. To survive in the most complicated investment industry, you have to learn to trade this market with a balanced trading approach.

Creating a balanced trading method is not all tough. If you can follow the basic rules mentioned in this article, you can expect to learn the art of trading without losing too much money.

Start with a practice account

The first thing that you should do as a currency trader, is to start trading with the practice account. You don’t have to think about the trading method, profit factors or the losing trades. Explore all the features of the trading platform and see how the market reacts to different data. Most of the time, it is really hard to stay calm in the demo trading environment. But the demo trading account works like a blessing and it can change your life. Once you get familiar with the basic details of the market, you should start working on your trading method.

Crafting the trading strategy by using the demo account is a super complicated task. However, you can easily avoid stress by accepting the fact, learning to trade requires time. You should never trade with a tendency to get rich quick. Analyze your demo trading results and try to bring the necessary change to your trading method. If you feel comfortable with the trading approach, you should start working on the improvement of your trading method.

Trading with real money

Before you start trading with real money, use the copy trading mt4 service and see how the professional trade. Though you can make some decent profit by using the copy trading service still you should not forget about the trading method. Based on the expert trader’s approach, try to bring some positive change to your trading method. Once you do that, you should start trading the real market. Never try to earn a big profit without learning too much about this market. Focus on the longer time frame so that you won’t have to lose most of the trades. Act smart and take logical steps in each trade so that you can earn a big profit with losing too much.

Revising your trading method

After trading the real market for a few months, you might find faults in your trading method. But this is very common for the new traders. Instead of stick to the real account, get back to the demo trading environment. Try to fix the problems associated with your trading strategy. Though it’s a little bit complicated task still you should do it with patience. Never think you will be able to curate the best trading system in the first go. With time, you slowly learn to fine-tune the trading strategy. Stop thinking about the quick profit forget the fact, trading is more like a one-time investment. You should be trading as a professional businessman so that you can easily earn a decent profit without losing too much money.

Money management

The last thing that you need to focus on is the risk management policy. You might be able to find excellent signals still you are going to lose some trades. To deal with those losing orders, you have to come up with a unique risk management plan. Think about the long term goals and try to improve your skills over some time. Take your time and push yourself to learn more about this market.

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

Comments: 0 Read More

Related Post

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.

 

 

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

Comments: 0 Read More

Related Post

December 21, 2017, 5:23 pm

Silver Is The New Gold When It Comes To Investing in Precious Metals

by: The Financial Blogger    Category: Investing Ideas

Silver is definitely the new gold when it comes to investing in precious metals. For much of human history, silver and gold have alternated as the currencies of choice. Gold has always been the more expensive older brother to silver while silver has been the precious metal of the common man. Silver is uniquely positioned to increase its value in the future at higher rates than gold.

Gold Isn’t the Safe Haven Anymore

Gold has traditionally been the safe haven currency. When times are bad, people would invest in gold to protect themselves from uncertainty. Like clockwork, gold prices would go up in times of crisis and go back down when things would return to normal. People knew that gold would keep its value. In fact, a common claim is that 1 ounce of gold will buy a decent men’s suit and has at any time in the last 200 years.
Things are changing. Gold is no longer the only safe haven currency. In many ways, this status is being supplanted by Bitcoin. China, a traditional devourer of gold, has embraced Bitcoin. The people have embraced it for all of what it offers and more. The additional benefits of anonymity and the ability to easily transfer it has made it quite popular. The Chinese government is not altogether happy about the rise of Bitcoin, but it is what it is.
It’s really difficult to foresee what will happen in the next economic crisis. We do know that more people will seek out car title loans completely online. We do know that more people will apply for public assistance. We do know that gold and silver will hold their value, but it’s not clear if gold will increase its value in response to the crisis.

Silver Is More Accessible

While gold is having its status as a safe haven supplanted, silver is also replacing it as a better precious metal investment vehicle. Gold is trading at very high prices. These prices have been stagnant for several years at a relatively high level. These high and stagnant prices mean that gold is not very accessible.

Silver is just more price accessible. People can make a small investment in silver at its current price level and still see a good return on their investment. On the other hand, that same small investment in gold would yield them a few grams of gold that is bought at a premium and sold at an inferior price. This results in a much lower potential return.

Silver Has Upside

Price accessibility shouldn’t be the only reason to make an investment. It just makes it easier. The real reason to invest in silver is that it has upside. There are three major factors behind this upside.

  1. It’s an industrial metal. It’s widely used in industry for a myriad of different processes and products. This creates a steady demand for the metal and a pricing support level. As supply decreases, the prices will rise due to its industrial demand.
  2. Silver is a jewelry metal. It has very nice aesthetic qualities. It’s beautiful and can be fashioned into a variety of jewelry.
  3. It’s a traditional currency. It’s been used as a coin for centuries all over the world. It has recognized value. Its coins have stood the test of time. People understand that silver represents money and there is a continual demand for silver coins.

It’s clear that silver should be the go-to precious metal for anyone looking to invest in precious metals going forward. Silver has the upside and the price accessibility to make it a champion.

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

Comments: 0 Read More

Related Post

August 18, 2016, 8:27 pm

3 Reasons to Start an IRA With Betterment

by: The Financial Blogger    Category: Investing Ideas

 

 

Betterment is a novel new investment platform that takes the guesswork out of investing. They’re not the new kids on the block anymore, having been around since 2008, but they’re still new to a lot of investors. If you’re hoping to learn more about Betterment, here are three reasons that you might want to consider the service. Betterment offers a whole lot of value to users, especially users who are new to investment. We’ll examine some of their most important value propositions below.

 

  • Betterment’s Automated Diversification. Diversification is central to the strategy of any good investor. It essentially prevents investors from putting all of their eggs in one basket. When a single stock or an entire sector goes south, being invested in entire markets makes these losses a lot easier to compensate for. Betterment achieves automatic portfolio diversification through their new robo-advising methods. They put investors’ portfolio contributions into several pre-chosen ETFs. These ETFs represent index funds from US markets, international markets, developing markets, and more. The user also has a choice of how much of their portfolio to place in stable bonds, which are also automatically diversified.

 

  • Betterment’s Great Prices. Betterment charges their active customers only 0.35%, at most. People who deposit larger balances could pay only 0.25% of even 0.15% annually. That’s much less money than one would ever pay for a traditional investment advisor. Betterment is also likely to outperform these traditional advisors, many of whom don’t even beat the index every year. For such high prices, one would expect traditional managers to make the investor a lot more money, but they generally don’t. Betterment’s model is often described as “set it and forget it”, and there’s good reason why. By starting a simply account and making regular contributions, a user can set the stage for reliable returns in the long run, with little money paid and little daily oversight required.

 

  • Betterment Makes it Easy to Follow Goals. Lots of Betterment users use the service to prepare for distant retirement. Betterment makes this easy by showing you just how much money you can expect to make in the time between now and your planned retirement date. You’ll see how your funds can be expected to grow in strong investing climates, as well as weak ones. You’ll see how much you need to contribute to comfortably achieve your goals. The platform brings a lot of great visualization tools to the party, one of the most difficult aspects of understanding our portfolios.

 

Betterment offers a lot more value to users, especially people who have never invested before. They make it easy to roll over accounts like IRAs, they offer free tax-loss harvesting, and they even offer free service for new users. Their algorithms are powerful, giving reliable returns to users based on insights gleaned from millions of data points, not the hunches of a few experts. The market is too diverse and wild for anyone to legitimately claim expertise over it. Instead, the automated diversification methods built standard into Betterment are enough to do better than investors of yesterday.

 

 

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

Comments: 0 Read More

Related Post

July 13, 2016, 5:07 pm

How You, Too, Can Capitalize Off Of Brexit

by: The Financial Blogger    Category: Investing Ideas

How You, Too, Can Capitalize Off Of Brexit

Despite the fact that some time before the British referendum to leave the European Union, four out of five European hedge funds had bravely put their money on the UK remaining in the EU, a certain number of firms saw some pretty impressive returns after their betting against the grain of popular opinion of economic policy and the cash debate. According to Craig Weynand, the NuWave Matrix fund rose in profits by 12% on the day of the vote. Other hedge fund managers, like CIO Ryan Tolkin of Schonfeld Strategic Advisors among others, as well as legendary investors George Soros and Stanley Druckenmiller also made fantastic gains from the sudden market volatility. How did these people achieve such successful gains even if, in the case of the hedge fund managers, they did not place bets on the outcome? The answer is simpler than you might think…

karatbars.safety-for-our-kids

Understand The Risk

 

China is being crushed by their debt and poor economic policy, as is most of Asia. The Brexit decision is a testimony to the success (read: absolute failure) of the EU’s experiment in artificial currency, the Euro, which has been a central point in the cash debate. The whole world will feel the consequences of Brexit, consequences that will change depend on how prepared economically those countries are.

 

As an individual, you might be wondering what you can do to prepare for a volatile and risky market. A great place to start is to look to the greats; for instance, the aforementioned Soros and Druckenmiller. What did these incredibly wealthy and influential men do long before the Brexit decision was even brought to referendum?

 

Well, Druckenmiller just told the attendees of the Sohn Investment Conference in May to get out of stocks and get into buying gold. George Soros dialed back his US holdings and invested in the SPDR Trust. Really, investing in gold may be the best move in the wake of the British referendum. Every group or individual who made returns of any major kind after what Remain-ers claimed would be the fallout after the vote on the 24th of May has one thing in common: they all invested in, or already owned, precious metals.

 

A Safe Bet

 

Peter Donisanu compared the economic results of the referendum to Black Wednesday. Part of his comparison is correct: People have flocked to “safe haven” assets, such as government bonds, but even the prices of the precious metal have been predicted to begin to fall starting in August. A different safe option would be the cryptocurrency Bitcoin, which has many of the trademark qualities of a safe-haven investment.

 

Diversify, Diversify, Diversify

seiz

As in any great shift in economy, the safest move after the UK’s departure of the European Union is, as usual, to diversify your portfolio with a variety of safe investments. There has never been a better time to get a few more eggs in your basket, and your financial health will certainly be better for it.

By Harald Seiz, Multi-Business Entrepreneur & Expert on Gold

https://karatbars.com

 

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

Comments: 0 Read More

Related Post