Category / Investing

Investing

Learn to think outside of the box

There are many ways you can try to make money but the best way is by broadening your view. The strategy, analysis, and the other things will always be there but if you cannot your view, there is no way you can get out of your failures. Most people only fail in their trades because they have a fixed view. They cannot think outside of the box and they are always losing the money. Even when they are presented with the new opportunity, they compare it with the old opportunity and they do not place the trades. This article will tell you how you can broaden your view that will ultimately make you successful.

The traditional way of trading

Everyone in the United Kingdom knows about Forex trading profession. Trading is an extremely profitable business for the right candidate. By using a leverage trading account, you can easily make a big profit even with small initial investment. But always remember the risk factors involved in currency trading business. Those who trade with aggression are nothing but gambles in this industry. You have to use a strategic approach to find good trades. Even after doing all the calculations of won’t be able to win all trades. Though we have access to modern tools and EAs, it’s better to use the traditional way of trading. Try to understand the manual trading strategy and learn more to improve your knowledge.

Staying with the herd

We all know it’s better to stay with the herd. But this proverb is not applicable to the traders in the exchange traded funds community. Since the majority of the traders are losing money, it’s highly imperative you don’t follow the herd. Start using your knowledge and focus on the long-term market trend. Take all the time you need but prepare yourself properly. Learn to think outside of the box and implement a simplified strategy to make real money in this profession.

Commoners can never be the king

One of the things you need to know that, the common traders can never be the king. They only obey and listen to what the other people are telling them and as a result, they never get to make their profit. If you are always listening to your mentors, you can never learn to trade. Get out of your comfort zone and feel the difference. There is a saying that “miracle happens when you get out of your comfort zone” this is true and also for the traders. When you are placing your trades for the next time, think of this concept and try to be different. People may be surprised but do not get scared. This is how the professionals have grown their career and become successful among thousands of traders.

Broaden your view

One of the reasons people lose their money is for their fixed mindset. Your mindset will determine what strategy you will choose, what you will avoid and how you can progress in your career. They are more important than your strategy and they guide you in the right directions. If your mindset is fixed, you will have a hard time accepting new trends. Remember, there is no trend or volatility fixed. Everything changes and so need you. Try to view the market form a broader angle and you will be surprised. There are many chances and opportunities knocking at your door but you need to see where those doors are.

Do not get stuck in a position

Be like moving water and you will feel the freedom of placing trades. What most people do is they get stuck in their position which was developed a long time ago. Their strategies have changed, their experience has grown but they are still in the old position. You need a bigger seat when you grow up, always try to learn new things that may expand your view.

Investing

Uniqueness of binary option trading unraveled

One of the most unique aspects of binary option trading is that you as a trader will know how much money you are putting at risk and what might be your return. Also, it is much easier to trade assets in the binary market as you either win or you lose. There is no midway to the trade and that makes it much relaxed form of trading. All you have to do as a trader is understand how the market is moving and you have to apply your instinct, common sense, and most importantly your experience to judge the direction of movement of the price of the asset.

Definitely, you have the liberty to seek help from the brokers. Depending on which part of the globe you are, you can sign up with a trading platform. An important thing you must remember about the binary brokers is that not all brokers work with the US traders due to certain norms related to regulations. As such, the best brokers accepting US traders can be found on www.best-binaryoptionsbroker.com.

Having said that, it is now your turn to select the asset that you think will do justice to your hard earned money that you invest in the trade. Take time to decide upon the asset as this is what will make you win or lose the trade. This is because not all assets perform in the same manner. Different parameters influence the outcome of a trade related to differing assets.

Trade different assets under one roof

Another very important aspect that you ought to keep in mind about binary option trading is that perhaps it is only in the binary option market that you are allowed to trade different types of assets under the same roof. For instance, here you can trade stock indices like currency pairs, crude oil, gold (commodity), and also large cap stocks if you wish to. If you explore other markets, you will not find a common trading platform for all these types of assets.

You will opt for a CALL option when you find that the market is bullish else you opt for PUT option, if you find that the binary market is bearish. The best part about binary option trading and selecting a suitable broker is that you have the liberty to work with more than one broker. This also means that you will be able to enjoy payouts from more than one broker. And if the brokers that you choose to work with offer handsome payouts, you are the winner in the long run.

Selecting the right broker

Selecting the right broker is one thing not everyone can do wisely. It is best not to rush into the broker you meet the very first time. Take time to compare the services, payouts, and method of working of the trading platforms. Only if you find that you will be comfortable in dealing with the broker under the terms and conditions laid down by them should you proceed and sign the contract. A wrong decision can cost you a fortune in the long run. 

Investing

How To Create A Binary Options Trading Strategies To Profit From Simple Market Trends

If you have spent any time reading about financial trading then you will no doubt have come across references to the trend. The trend is the directional basis in which financial markets move and is considered to be one of the most important factors when identifying future market moves.

Analysis of the trend is used by all styles of traders.  It can however prove particularly powerful when combined with binary options trading methods. The ability to identify whether a market will move higher or lower when combined with the Call and Put digital contracts available in the world of digital options can make for a simple strategy from which the individual can earn high profits.

Trends basically refer to the dominant direction that the price of an asset has moved over time. This is driven by a strong momentum and demand from either buyers or sellers in the marketplace. It is commonly observed that once a trend is in place, it is more likely that it will continue than break down. In most trading approaches it is assumed to be better to always trading in the direction of the trend in order to gain the backing of the market. This not only lowers the potential risk, it also gives a greater chance of the opportunity proving successful.

When analysing an asset it is important to realise that trend can exist across all different time periods on the chart. While trending on higher time-frame charts will determine the overall direction that the price of an asset will move over time, many shorter term instances will also exist. These will be the result of price rallies and short term changes in sentiment towards the asset. What this means is that it is possible to trade both long and short term strategies using these signals.

As the trend signals the direction in which a market is most likely to move, it provides a power indicator which can be used to create basic binary option trading strategies. If the market has been moving higher, then a ‘Call’ option contract can be used to profit. Similarly if the price is heading downwards then the binary trader can make use of ‘Put’ contract to capture the move. When trading in this way the ‘Intra-day’ market trend should be the focus of the trader. However results can be improved by keeping a close watch on the wider market picture and dominant direction that the market is moving.

There are many technical indicators which can be used to identify the trend of the market. The most common of these is known as the ‘moving average.’ This indicator is plotted onto the chart and is able to calculate the  market direction by using a basic mathematical calculation. This takes into account the preceding daily price movement of the asset to provide a view of the average gain of the price. By configuring the parameter settings it is possible to find out the direction that the price has been moving over a set number of preceding days.

One way that is often used to capitalise on this movement is to find opportunities by waiting for a low time-frame moving average to cross one from a higher time frame. Once this happens it is taken as a signal to enter the market in the direction that the cross occurs. Essentially this provides a signal that the near term market direction is gaining increased momentum.

Trading with binary options brokers provides a modern and easy way in which to speculate on the price movement of assets. Unlike many methods of trading you only have to forecast a higher or lower movement in price to earn a high fixed return. For this reason they are particularly suited for use with strategies which can identify strong market momentum. By predicting whether the market will finish higher or lower, simple strategies for binary options can be created which exploit the use of the trend.

Guest Post provided by Phil Moore. Phil is a full time trader and investment contributor for the website BinaryOptionsProfits.net. You can visit the site now by going to http://www.binaryoptionsprofits.net.

Investing

An Introduction to Forex Trading

Forex trading is an investment vehicle that primarily focuses on taking advantage of currency fluctuations in the world market. Because of the inherent volatilities of currencies, forex trading is often considered one of the riskier forms of investment. However, recent advances in technology particularly in the improved accessibility to information and news that influence currency fluctuations have opened up forex trading to ordinary day traders instead of being solely in the domain of large financial institutions like corporations and national and central banks.

In a nutshell, forex trading is conducted via a foreign exchange market. The rationale behind the forex market boils down to the need to exchange cash in the conduct of various transactions. For example, suppose are based in the UK and you operate a small home-based business that sells unique artifacts from China for decorative purposes; when you purchase items from China, you need to pay for the artifacts in Chinese Yuan because this is the accepted currency there. You now have to “exchange” your British Pound in order to have the Chinese Yuan you need to pay for your goods.

Translating this into the global stage creates the forex trading platform where investors buy and sell currencies depending on the volatility of the currencies involved. For individual investors, these exchange markets include the spot market and the futures market. A spot market is where investors buy and sell currencies depending on the current price.

Transactions in this market require that you purchase a certain amount of currency and pay with another currency. You earn if, over the course of the trading day, you can manage to sell your acquired currency at a much higher value because the price for that currency went up. Conversely, you lose money when you buy currency which then devalues and you sold it at a lower price.

Forex trading in the futures market is more volatile and risky than spot trading but also offers considerably bigger payouts. In futures trading, the investor tries to anticipate where the exchange rate for any currency pair goes up or down after a certain period of time. If he or she gets it correctly, the payout can be as much as 85% of the initial investment; if he or she gets it wrongly, then payout can be zero.

Of course, the whole nature of forex trading is so much more complicated than what these descriptions can offer. Success in forex trading requires experience, whether on the spot or future markets, to be able to learn how to read the trends and news that influence the market. If you are up for it, take the time to study and learn so you can successfully put your money in foreign exchange investments. 

Investing

Investment Tips for Twentysomethings

You’re on your own two feet

At this time of your life, you’ve graduated and are working your way up the first few rungs of your career ladder. You’ve got that all-important salary, and the first thing you should do, investment-wise, is start an emergency fund. You should aim to have at least three months’ worth of rent, utilities and grocery money tucked away in an interest-earning account to deal with unforeseen circumstances. You don’t want to be relying on a loan provider (eg. Wonga.com) to be bailing you out of trouble, as these can quickly spiral out of control into a debt black hole – young people with no savings are particularly susceptible to this.

Once you’ve saved up at least £5,000, reduce the monthly amount you put into this fund and start thinking further ahead.

Think about retirement – yes, really!

You’re four decades away from retirement, but it’s because it’s such a long time away that it’s such a good idea to start saving now. Try to put 10 per cent of your salary towards a retirement fund. If you can’t manage 10 per cent, make it five per cent, but just keep doing it, month after month, because you’re going to be making use of good old compound interest to bump these savings up. By the time you retire, you should be very comfortable indeed. If you leave it until your forties to start saving, you’ll need to give up a third or more of your monthly salary – at a time when you’ll probably have a young family. Not good!

A roof over your head

Once you’ve got your long-term investments sorted, it’s time to look at more immediate goals, like a house deposit. You’ll need a big lump sum for this, so to get this deposit together, open a brokerage account and make payments into it by monthly direct debit. By paying the same amount into it every month, this account will buy lots of shares when they’re low in price, and fewer when they’re higher. If you do this consistently, over time, your average actual spend can be lower than the average actual price of shares. Keep a steady eye on your shares and sell some off at opportune times to build your deposit fund.

Because you have a longer time frame than older people, you can afford to opt for slow-growing, more reliable investments and just leave them to do their thing. Take at least five years to save this sum, as shorter time frames are more vulnerable to the upswings and downswings of the stock market.

Diversify!

Don’t put all your eggs in one basket – make sure you invest in lots of different stocks, different industries and in different continents (more advice on diversifying your portfolio can be found here). This will buffer your money against the rises and falls of different sectors and different regions. Over time, you’re almost certain to make money with this approach. It’s slow but steady, and you’ll never have to resort to Wonga.com. 

The best investment you can make is in some advice. Make an appointment with a portfolio consultant and don’t be shy about asking questions, no matter how silly they might seem. This is your money, and your future.