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January 20, 2021, 10:19 am

Problems That Many Trade Services May Have

by: The Financial Blogger    Category: Trading

You can learn some very valuable things while being subscribed to different trade services, but they also come with their fair share of problems. Trading problems are nothing new and every single trader is likely to run into some sort of problem as they embark on their trading journey. You are especially prone to experience problems if you are just beginning your journey into investing; however, no one is invincible and even the most experienced investors can stumble upon issues.

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When you hear about traders who have made a killing in the market and are practically rolling in money, you may become remorseful when you begin to run into problems and not wealth. However, even top traders have run into problems, but the way they dealt with those problems is what made them wealthy. When you enter into the market, expecting success from day one is the worst thing you could possibly do.

Remember the phrase ‘Rome wasn’t built in a day’? Well, that applies to investing and trading alike. It is normal to feel disheartened when you don’t reach immediate success. However, giving up is the last thing you want to do, so don’t lose sight of your hopes or dreams.

Day trading

One problem that is coming increasingly bigger within the trading world is day trading. At first glance, day trading seems like an excellent idea, however, it can be far for that. When people have time to sit at their desk and closely monitor stock trade alerts, then great! Day trading could prove to be a great tool for you.

However, if you’re looking into trading, it is likely that you’re trying to build you wealth and also have a full-time job, so the last thing you want to do in your free time is stay chained to a desk to monitor alerts. Day trade alerts are massively time-sensitive and once they’re gone, they’re really gone. Missing them is a crucial mistake.

Even if you are only 1-2 minutes late, it is likely that you will completely miss the opportunity which in hindsight, is as frustrating as anything. It takes a whole lot of time and effort to stay on top of and follow day trade alerts. On top of that, you will likely deal with overwhelming anxiety while waiting closely for the next alert since you have to be lightning-fast to respond.

Penny stocks

Now, we get to penny stocks. Penny stocks are an automatic red flag for most people, and it is completely understandable as to why. There is a major and fundamental problem with doing trade alerts on penny stocks or micro-cap stocks. They simply do not have enough liquidity to support a trade alert service.

You may be wondering what this means, and in simpler terms, it basically means that since they are such small companies, there really aren’t a lot of people trading them or a lot of people interested in trading them. This poses a huge issue because of the fact that when an alert goes out, a whole heap of people rush to buy a stock like that all at once and because there simply aren’t enough sellers to absorb all of the buyers, the price absolutely explodes.

This then creates a problem because if you aren’t obsessively following the trade alerts, by the time you make it to your desk to make the trade, it is highly likely that the price has already severely skyrocketed due to the fact that so many subscribers have gotten in quicker and already purchased the stock on these micro-companies.

Then, on top of it all, the guy who alerted the trade would then opt to sell his position only to sell to subscribers. Once he sold his position, a huge tidal wave of sell orders would come in from all his subscribers, and the price would plummet right back down in record time. In the end, you will be left holding the bag (along with many other subscribers I’m sure). The price will have gone way down, and you will still be holding the stock at a loss while the “trade guru” had chalked up a profit and boasted this as another successful trade.

Lack of research

Staying up to date and educated in any situation is highly recommended. So, the biggest problem trade alert services seem to have is that they haven’t tested their trading strategies against historical data. For any given trading strategy, there are years of proof that this strategy worked over and over and was successful, however, some trade alert services have never done any research about how their trading strategies would have held up historically.

This is a massive problem because different trading strategies are optimal for different market conditions and some trade alert services might have periods of success, but can they hold up for the long term through various market conditions? Doing historical research is a great way to account for that, but most services don’t do that which makes it largely unsuccessful in the long run.

How Mindful Trader can help

Just when you though all of these problems were likely to create a gloomy outlook for traders, Mindful Trader comes to save the day. Unlike day trading, Mindful Trader is a swing trade alert service that relies on an entirely different approach compared to every other trade service. All of the trade alerts from Mindful Trader are based on a historical quantitative edge that was uncovered from years of stock market price research.

With Mindful Trader, you don’t have to sit in front of a screen for large amounts of time to monitor the stock market, instead, you can enjoy a relaxed approach. Eric Ferguson from Mindful Trader understands the stock market in an in-depth way and was once using the same trade alert services that are still around today, however, when he found little success, he took it upon himself to do better.

If you’re looking for a mindful, stress-free, well researched, and data-driven trade alert service, look no further than Mindful Trader. Happy trading!

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March 18, 2020, 2:39 pm

What is Short Selling in Trading

by: The Financial Blogger    Category: Trading

The world of stock markets, indexes, and trading is a complex one and learning about all the different terms and language used in the business of stock trading can take a while. What are bears and bulls and why do we have initial public offerings or talk about haircuts? The list of terms is a long one but one of the most talked about terms in the media and news is short selling – but what is it?

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What is Short Selling?

To put it as simply as possible, short selling is the prediction or speculation that a certain stock will go down in value and leveraging off that prediction to make some profit. By borrowing stock and selling it at the current value, hoping that it will decrease in price, so when you buy it you buy it for the lower price is short selling stock. If your prediction is correct, you’ll sell the stock for more than you have to pay for it, and the difference becomes your profit. You’ll need a CFD trading account to start short selling.

The Difference Between Short and Long Trades

The long trade is a more traditional way of creating profit in the stock market. This is when you buy stocks when you believe the value of those stocks will increase over time. It’s a long trade because you are waiting for the value of the stock to increase before you sell them. Essentially, a long trade and buying stock are interchangeable terms, because they mean much the same thing. In many ways it’s less risky than short selling, but there is still inherent risk because the price of the stock you are ‘going long’ on can decrease too.

The Risks of Short Selling

Short selling is, at its core, quite a risky way of trading. Because you are trading with ‘borrowed stocks’, you are trading with borrowed money. Usually you’ll need to provide a collateral with your broker for the practice, and that likely involves using your owned stocks as this collateral. If you predict the fall of the price of the stocks you are shorting incorrectly, you could end up losing capital. It gets more complex from here too, because you need to meet the minimum maintenance requirements and if your account isn’t able to maintain it, you might need to put in more cash or liquidate your position – a process called a margin call.

You might also experience something called a short squeeze, where a stock might rise and those short selling the stock create cover for their trades by buying their short positions back. In essence, you’ll start experiencing something of a feedback loop.

The process of shorting selling in trading is a more advanced method of stock trading and an inherent and clear understanding of trading is needed to be successful at it. Understanding what the ideal conditions are for short selling and how you know when these conditions are met or can be expected involves a good knowledge of how to trade and predict trends on the stock market.

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November 14, 2018, 6:30 am

Don’t let overconfidence ruin your chances

by: The Financial Blogger    Category: Trading

We are the most intelligent beings on earth. That is because with our brains we have done a lot of things in this world. There are a lot of visible example for this. And using the same quality which is our thinking power, we also have managed to work in different professions. A lot of people have top levels in this world using their calibers and their knowledge in a profession. This is also possible for a normal human being who is willing to lead just a simple life with a decent job. If you are thinking like that, your life will be just fine with proportionate effort. But, people make mistakes still being the most dominating being on this planet. We are talking about the overconfidence in the trading business. Many traders fall from their throne due to the overconfidence in decision making. In the following, we are going to talk about it in more details.

The trading business is adaptive

Those traders who have the most adaptive quality will shine a lot in the trading business. You will almost never experience the same thing in the markets of your choice. So, trades may experience a different type of positions every time. Sometimes, the trades may get a false position which was good in the beginning. But the market started to go into a wrong turn and turn against the suitable condition of the trade. A trader can be only able to deal with all of these things when he or she has the proper knowledge and skills of getting into the markets without hurting the trading account balance. This is a great quality a good trader to have. So, think about it while you are in the trading business.

Focus on your discipline

Confidence is good but when you become an overconfident trader, you actually starting taking unnecessary risk. Though fx trading Australia is a very popular term very few traders are able to make a consistent profit from this market. Most retail traders fail to make money as they don’t know the perfect way to manage their risk exposure. At the starting of your trading career, you need to focus on discipline. Develop a simple trading strategy and stick to the system regardless of the trade outcome.

Traders need to be decent

Just like we talked about in the last segment of this article a trader has to be adaptive to the conditions. And he or she who is trading should not be biased about anything either. You see, in the trading business, a trader has to create a good trading edge first for a good trading process. Then the trades from the account will have to be organized with proper planning and strategies. When all the things are covered from the top to the bottom of a trading process, you would be using it for all the trades. With different conditions, you may modify the process according to the demand. But, sometimes traders may get biased about a certain method. Winning some trades, you may get even more confidence. But, you have to remember, no one is perfect in this world. Any plans are not perfect either in this whole world. If it was then, there was no value in writing this article. So, think about it while you are in this profession or any other.

You also have to be protective

For making a good income in the trading business a trader has to be careful about losing. The number of losses in this business is more than anyone can think about. So, the possibilities of losing money are also high in this business. For that reason, the traders have to be as much protection as they can with money management plans and strategies for closing a trade. You have to do anything that helps with save your capital.

 

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November 13, 2018, 6:27 am

Importance of using mind map in Forex market

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

Mind map is the diagram that we use to plan our strategy. If you are trading in Forex, you also should use a mind map because it gives you more ways to plan your strategy. There are many strategies but you should not use them in the form they reach to you. Try to develop them, and use them in a demo account to see the result. If you din they are not giving profit, you need to plan them again and trade on demo accounts. If you find they are giving you money, you still need to work on them to make them better. This industry never stops and you also need to change your plan. The mind map is the best way you can plan your strategy for future trends. You do not need any software but your diary and your mind to plan the strategy. Many professional traders use mind map because they want to trade money without losing. It is only possible when you think of all the risks and has planned your trades.

Psychological factors in Forex trading profession

Everyone wants to become a successful trader. But if you do some research, you will be surprised to know the majority of the traders in the United Kingdom is struggling hard. The new traders start their trading career without having a proper knowledge of this market. In their subconscious mind, they always think about the profit factors. This eventually forces them to overtrade the market. You need to have to caliber to control your subconscious mind or else it will be really hard for you to make a profit from this market.

So how do you develop your mentality? First of all, try to keep things clean in your trading platform. Overloading your charts with indicators and EAs is not going to help you. You should rely on a simple trading strategy and focus on the long-term market trend. Try to limit your risk factors by reducing the lot size in each trade. Train your mind to spot the best trades from the very beginning.

How does mind map work?

You may want to know how this mind map works. It is simple and it takes the imaginary form in your mind and uses them to give ideas. If you are thinking to place trade but you do not know what will be the outcome, you need to make a mind map. Imagine a trend where you should place your trades and think of all the strategy. You need to make a plan where to set the stop-loss if the trends go against you, you also need to set the position size so that you are not making a small amount of profit with a good trend and you also need to plan when you should close the trades. This is all possible in mind map. It is also possible to plan this in your mind but when you start giving them form, they become more efficient and you can find out the mistakes. If you have started your trading, it is better if you draw out plans in your diary. Make mind map for every trades and this way you will know if your trades are not working out. Do not think you will make a great plan but make a demo plan. Every time you mind map your trade, it gets better with time.

Is mind mapping necessary?

It is good for your trades. You cannot make money like the other traders and you need to be different. The mind map will give you a chance to make a master plan and place your trades with the right strategy. You should leave any chance and try mind mapping your plan. If you can map all the risks, your chance of losing money will get decreased. It helps to make your strategy better in Forex.

 

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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

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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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