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Investing

You are not in the magical world of money makings industry

This article is geared towards novice traders of the platform. That platform is none other than the Forex trading business. There will be a lot of time when traders will not be able to make some good performance happening. There is no single good way to make some good business. All of that is because of the poor intentions of maintaining a business in Forex. Most novice traders think about making money is the only thing on this platform. And thinking like that, the traders happen to fall behind with some good performance. With money intentions and greed, traders make some inappropriate moves in the trading process. Their trading mind does get good with the right control of the investment into the trades. Then there is some sort of problem with the market analysis. That does not let the traders be good with the proper management of the position sizes. All of those are important for the business and you are going to learn about them in the following of this article.

There are more things to do than just make profits

Actually, there are a lot of things to maintain in the currency trading business. The traders will have to manage their businesses with some good quality performance. When they are at it, there cannot be too much of investment into the business. The right performance is all about some quality trading with proper signals. Then there will also have to be some good concentration into the closing of the trades. While you are working for the trades, the trading mind cannot be too much disturbed either. So, the right trading methods will have to be selected by the traders. It is not so hard for the traders to manage that. All there is to do is select the right trading method which will give you a long timeframe for trading. The swing or position trading system will be good for all. It is clear, that traders will have to stay conscious about a lot of things in the business process.

Developing your trading skills from scratch

Novice traders often think without having a big sum of money it’s impossible to learn to trade. But if you visit Rakuten website you will be surprised to know about the free demo trading account. Use the free demo account offered by the Rakuten broker to develop your skills without risking any real money. Consider this as your arena of learning and you will see a dramatic improvement in your trading career.

The proper trading performance will need some good management

All of the traders will have to be right with the performance with currency trades. You will have to remember that you are a retail trader in the marketplace and doing such foolish planning is not good for your business. When you think about money making, that will be a foolish thing to do and the right performance in the business is all about managing the trades. It will also have to be tension free for the traders. So, there is no way for the traders to manage some good business with too much tension of the capital. For that, some proper management plan will have to be created to control the risk per trade. There will also have to be some proper control of the actual trading capital. Thus, the traders can reduce the amount of stress they are under.

Learn the perfect art of closing a running trade

Every time you will be thinking about a trade, there will have to be some sort of position sizing. This is a must for the trades because there is no way for the traders to save their investment into the business without any kind of protection against the unfortunate volatilities of the marketplace. The stop-loss, as well as the take-profit, will be the tools necessary for you to use.

Investing

Answering the question – Why should I trade CFDs?

According to one of the top financial analysts at Olsson Capital, CFD is a common term within the financial markets and you will come across it every time you research about the financial markets. CFD is an acronym of Contract for Difference, which is a form of derivative trading. CFD trading is a pervasive form of trading and one of the fastest growing industries after Forex.

 

What is the difference between CFDs Trading and Forex trading?

There are several similarities between Forex and CFDs like the fact that both involve similar types of trade executing process and both are traded on similar trading platforms with market pricing and charts being similar. Also, when trading either Forex or CFDs, you do not own the underlying asset. You only speculate how the exchange rates will change over time.

 

Forex has become a very common term among traders to the extent that they tend to think that every other trading is just Forex. No! Forex typically involves currencies from different countries and economic regions while CFDs involve trading other forms of contracts like indices, metals and energy. When trading CFDs, you only speculate how the prices of these securities will change in the future as a trader.

 

The most significant difference between Forex and CFDs trading it the factors that influence the two markets. The forex markets are affected by events around the world like political changes and rate of employment.  On the other hand, the CFDs markets are influenced by the demand and supply within the business sector since it involves real goods which are typically bought and sold across business entities across the world.

 

What are the benefits of trading CFDs?

With all said, what is the benefit of trading CFDs in relation to other financial trading ventures? Why should you opt to trade CFDs as a financial trader?

One, almost every financial broker offers CFDs trading securities and especially those brokers who provide Forex trading since the CFDs utilise the same trading platform as that of Forex and the process of executing trades is also similar to that of used in trading Forex. The instruments involved in the CFDs trading are fast moving goods and therefore the CFDs financial markets are relatively volatile. This makes them a very lucrative market for traders since they have large daily ranges which translate to huge profits when the trader places a trade. The prices of the indices, metals and energies are known to change as fast as the exchange rates of currencies although relatively slower.

Also, when it comes to CFDs trading, there are no trading commissions involved unless trading Shares CFDs, which is Contract for Difference derived from stocks markets. For all the other forms of CFDs, the only charges are the spread. The spread is the difference between the selling and buying price. The buying price is normally higher than the market price to create the spread which is usually the profit of your broker.

Since when trading CFDs you do not own the underlying asset, you will not be charged any stamp duty. However, you will be charged capital gains tax from the profits you make when trading.

CFD trading is usually done over the counter meaning that it is done over the internet through trading platforms offered by financial market brokers. Therefore, you can trade CFDs from the comfort of your home since the only thing that you require is a good internet connection and a good computer.

There are no academic qualifications required to become a CFDs trader. The only thing that you will have to do is to research and learn about how to trade CFDs, and you can do that online. There are lots of materials on the internet to help you sharpen your trading skills. In addition, most brokers offer demo trading accounts where trader practice trading before going to trade with their real hard earned saving.

CFD trading is one of the best ways of earning an extra coin in addition to what you get paid in your formal employment. And it doesn’t matter how busy you are because you can use automated trading strategies or even open a managed account to invest in the CFDs trading.

Investing

The Will Smith Index: 4 Reasons Why You’re Losing Money By Ignoring It

Celebrities are on pedestals in every industry. You want that dress, that car, that new makeup she’s endorsing, that soda he’s drinking in that funny commercial. It’s the celebrity selling point, the Will Smith Index: if they endorse it, you should invest in it.

The Midas Touch

Midas Touch

Image via Flickr by missmareck

Look at Will Smith. He’s one of the biggest stars in the world. He can’t fail; even when he makes a bad choice, such as making Wild Wild West instead of The Matrix, he keeps people talking. He’s planned his career every step of the way, from creating clean raps to tackling TV to becoming one of the hottest actors ever. His movies routinely gross millions and he is a billionaire. Every A-list actor has something in common with Smith at the moment: whatever they touch turns to gold.

If Will Smith appeared on TV tomorrow endorsing a car that runs on Pepsi, everyone in the world would run out to buy both the car and as many cases of Pepsi as possible. If Angelina Jolie, his female counterpart in terms of talent and top billing, strutted the red carpet wearing mom jeans, women would break their necks to buy a pair—or ten. If a celebrity is popular and pleases the public, they make no wrong choices. Everyone wants what they have.

People Want to Become Celebrities

Regular people long to become like their favorite celebrities. They see fame, riches, the ability to travel anywhere and buy anything. They want that. They see plastic surgeons asking for Angelina’s lips and Scarlet Johansson’s cheekbones. When George Clooney premiered Caesar bangs, guys everywhere asked for the same look.

If Bruce Willis steps up for a brand of beer, the stock goes up. When Drew Barrymore says she loves CoverGirl, stores sell out of their cosmetics. In an effort to become more like their favorite celebrities, the public believes what they’re selling. The trick is this: rather than losing money by buying a celebrity endorsed product in bulk, start investing in that company. If Jennifer Lawrence, the new It-Girl, comes out for Doritos, don’t buy the chips, buy the stock.

Celebrities Inspire Big Emotions

The biggest actors and singers are popular for many reasons, but it mainly comes down to what they inspire. They make people feel things—happiness, sadness, anger, desire. Will Smith makes people happy. Angelina Jolie makes people feel sexy and smoldering. Ryan Gosling makes them feel romanced. Financial investors can and should prey on those emotions, because what do people do when they’re emotional? They buy things. Look for tips from a Fisher Investment Forbes Contributor and it instantly becomes clear: the more emotional a person is, the more likely they are to spend.

Influential Stars Influence the People

The biggest reason to take advantage of the Will Smith Index is because he influences people. Influential celebrities influence their fans. When a celebrity endorses a product, the fans buy. If the star makes it look believable, fans buy even more. Invest in those stocks and you’ll make more too. You’ll have to know how long to stay in before you unload what you have, but take advantage of that sweet spot and the money is yours.

Financial investors and planners need to make the most of star power. Once they do, then in theory, they become star makers themselves.

Investing

Forex: the Trading Option That’s Taken the World by Storm

Forex or foreign exchange is the process of buying and selling currency. The simplest way to think of forex (or FX as it is sometimes known) is to think of a travel agent. When you go on holiday you buy the currency of the country you’re going to and sell the currency of the country you’re in, this is a bit different when we talk about virtual currency, for this, you can read the crypto trading bot information. Essentially, you’re trading currency and this is very similar to forex trading.

What is Forex?

The forex market is one of the most liquid financial markets in the world and the daily volume of trade is around $4 trillion. This is because currencies have to be traded constantly in order for business to be conducted between countries. There’s no central forex location due to the global nature of the markets and its size means that it cannot be influenced by a single person or company. Realistically, it can only be shaped by world events.

Buying, Selling and Exchange Rates

Forex trading involves the simultaneous buying of one currency and the selling of another. Each transaction has to happen in a pair and each currency has an abbreviation e.g. EUR for the euro. The ability to trade these currencies stems from the fact that the value of both currencies in the pair is constantly changing.

In forex, any exchange rate between currency pairs are labelled as the bid price and the ask price. The difference between these two prices is known as ‘the spread’ and this is how your forex broker will make its money. As with any business, prices will vary between brokers, so shop around to make sure that you get the best deal.

Points and Pips

In order to turn a profit, you have to know exactly how spreads are measured. So, let’s look at an example:

If USD/EUR has a bid price of 1.400 and an ask price of 1.403 then the spread is three points or, as they’re known in the world of forex volume indicators, three ‘pips’. A ‘pip’ is the smallest denomination that a currency can move by and this is the same for all currencies the world over.

How Often Can You Trade?

Due to the fact that the forex market is global and doesn’t have a central base, you can trade whenever you want from anywhere in the world. The forex market does not open at weekends, however, and this is the only time that you cannot place a bet. Just think of it being open 24 hours a day, 5 days a week. This means that you can trade at practically any time you want.

So, Why Invest in Forex?

If you regularly keep up with the news and follow the latest financial announcements then you have the opportunity to make a profit from forex. There’s no experience required and you can start from scratch whenever. Try watching some educational videos on trading basics to learn more and, if you think that forex is right for you, find yourself a broker and start investing.

Investing

A Warning About Buying Penny Stocks

Penny stocks are, as the name suggests, stocks that trade for a few pennies. Technically, a penny stock is any stock whose price is less than $5, but it is usually used for stocks that are a few cents or a little more than a dollar. No matter the classification, penny stocks are cheap and some people find them to be very profitable. They carry higher risk than normal stocks because if the stock of the company is faring very poorly, chances are the company might just fail or never really recover. On the other hand, if it does recover, then the profits can be astronomical. This is what a lot of investors find attractive.

Before you start investing in penny stocks, you should understand the risks. True, you might not make as much with a Google or Microsoft stock, but you are sure these companies are not going to fail tomorrow.

The first thing to remember in penny stocks is that it is very speculative. The price of penny stocks can be inflated from pure speculation because it is easy to do so. It is a common strategy used by investors – they find a cheap penny stock and buy it at a low price. Through the internet, it is easy to spread the word that this is a great stock. A number of people keep buying and the stock keeps growing in value. The initial speculators simply sell off and all the other investors are left with inflated price of a stock that is essentially worthless. You should always avoid buying penny stocks at their speculative peak. This is why, in trading penny stocks, timing is very important.

Because speculation easily drives up the prices, you will find a lot of free or paid information on the internet. Every so called expert is out there shelling out his wisdom and showing you a foolproof and guaranteed way to make money. Just remember that all of it is just not true. Penny stocks are like any other stock in that the price cannot be predicted. On the other hand, since their price can be manipulated, it is good to play safe. Do not buy just out of speculation. Research the company and invest wisely. The traditional rules of investing hold – invest if you think the company is solid and can pull it off despite difficulties. If you can spot such penny stocks, you can invest well in them.

That being said, not all stock picks are bad. If you understand how to use them and not buy simply from these picks blindly, you can make good use of them. You can, for example, research the companies that are mentioned in the stock picks. There are several free and paid services related to penny auctions. Before you invest your money in stock tips, make sure it is worth the money. There are a lot of scams out there on the internet so it can be hard to find genuine and legitimate stock tips. Make sure the person has a proven portfolio and experience in trading penny stocks.

I’m not an expert on stocks. Do not listen to me. You will lose all of your money.