Category Archives: Finance

Understanding The Pivot Point Indicator

Understanding The Pivot Point Indicator

Pivot Point Indicator

 

Have you ever wished you could predict the future? Wished you could know if you need bother with the heavy coat for the cold? Are you in the stock market, and do you have a knack for organization and wish to predict and plan for your stocks in the next trading period? I am sure you have.

In the stock market, a good trade based on reliable future predictions determines the next multi-billionaire and the next person whose stocks crumble. This is why the pivot point indicator was created.

The Pivot Point Indicator.

Between two trading periods, a lot of changes can occur. These changes may be caused by a variation in the trade regulations and taxes, the entry of a bigger player in the industry or even a change in the government of the country.

The pivot point is a price that is used to indicate the direction that the market might be headed to. The pivot point takes a number of factors into account including the performance of the market during the previous trading period, the political changes and the trading policies that have been changed. This price is calculated as an average of every significant price during the previous trading period.

If the trading price is higher than the price during the previous trading period, it is evaluated as bullish, and if it is lower than the previous period, it is referred to as bearish. To account for these variations when calculating the pivot point, an expected price differential is indicated. These price differentials are indicated either below or above the pivot point and are referred to as either support or differentials. Supports are differentials above the pivot point while resistance is a differential below the pivot point.

There are different methods that are applied in the calculation of the pivot point.

Installing the Pivot Point Indicator on MT4.

The Meta Trader 4 is a trading platform that is used by most online traders and brokers. While using the MT4, it is best if you have a predictor for your prices, and the Pivot Point Indicator is a good choice.

Installing it is easy as all you need is to download the Pivot Point Indicator. Afterward, locate the Pivot Point Indicator files then open the folder indicated as “Data” on your MT4. Follow the succeeding instructions to finish the installation, and the chart will appear on your MT4.

Calculating Pivot Points.

Now that you have downloaded and installed the Pivot Point Indicator, you have to calculate the most accurate pivot point. A number of methods are used when calculating pivot points, but the most used method Five Point System. Calculating the pivot points using this system requires the highs and lows of the previous day in addition to two support and two resistance levels.

InstaForex Review

There are markets that run through 24 hours, like the New York Stock Exchange, while other markets have a closing time. The pivot points in a 24-hour market are calculated at 4 pm EST, while for the other markets, the pivot points are calculated at the time the market closes.

There are three types of pivot points:

a)        Fibonacci Pivot Point

Using this method, you first calculate the pivot point, just like when using the standard method. The range from the previous day is then multiplied by the by the Fibonacci level.

b)       Camarilla Pivot Point

When calculating using this method, the previous day’s range is used to calculate the day’s support and resistance. Using this method, you are expected to calculate 4 resistance and 4 support levels, which are then multiplied by a multiplier.

c)        Woodie Pivot Point

This method of calculation is different from the standard method. The resistance and support levels are calculated using the difference from the previous day’s high and lows.

How to Identify the Support and Resistance Levels.

Support and resistance levels are very important while determining the pivot point. They give the range within which you should trade at to maintain your profits or to make a breakthrough. Identifying the most accurate support and resistance levels is therefore very important. You can identify them using the following methods:

a)        Psychology

Humans are simple breathing beings, and for this reason, they try simplifying everything, numbers included. When calculating the pivot point, you can use human psychology to do it. For example, if the prediction given is 1.5722, most traders would round it off to 1.5700 while a prediction of 1.5773 would probably be rounded off to 1.5800. You can use these two levels as your support and resistance levels. The number of zeros indicated would increase depending on how powerful the psych levels are.

b)       High and Lows

Previous trades are very useful in the calculation of pivot points, and the support and resistance can also be estimated using these trades. There are some levels in the past that the prices have been unable to go beyond, and you can use this as your support. We also have some low levels that the market prices haven’t gotten to, and these prices can be used as the resistance levels. This is a tedious process, considering the fact that you will have to go through every trade done previously. However, its predictability is very accurate.

c)        Pivot Points

The third and most common method that is used in determining the resistance and support levels is the pivot points method. This method uses the previous’ day highs and lows, and these highs and lows are used as the support and resistance levels of the day’s trading. Different trading periods are used, but the most common one is the daily period.

[Investopedia: How To Convert Value At Risk To Different Time Periods]

Benefits of Using The Pivot Point Indicator

a)        Pivot points give us a general direction of the market, hence indicating how we should trade. For example, if the prevailing market price is above the pivot, it indicates bullishness, and if it is below the pivot, it indicates bearishness.

b)       The pivot point ensures that you don’t lose your way when determining the target. The pivot point is determined by getting the average of the resistance and support levels, and it is within these levels that you are expected to buy and sell.

c)        They can be used as indicators of when to open positions. To ensure that you don’t suffer losses when the market reaches resistance, you could go long, and when the market drops to the support levels, you could go long.

The Bottom Line

Pivot Points are very important; they determine the bulls and bears of the market. When well predicted, the pivot point can lead to the birth of billionaires, but if not when predicted, great losses can be suffered.

The Pivot Point Indicator is a useful tool that you can use with your MT4 to predict the resistance and supports, which in turn help you make the wisest decisions. Calculation of the pivot point can be done using several methods, but the recommended method is the use of the five-point method. With this method, you can easily get the resistance and support levels. These levels can also be gotten using other methods, including the evaluation of psych levels and using the market’s absolute highs and lows.

Trading should not be absolutely unpredictable, even though it is. The use of pivot points should enable you to trade much easier. Happy trading!

10 Top Day Trading Tips

10 Top Day Trading Tips

Day Trading Tips

 

If you’re looking for some day trading tips, we’ve come up with some great ideas. While it has it’s fair share of risks, there’s certainly a lot of potential.

Day trading has become more popular as a way to make money by stock trading, especially after Timothy Sykes’ story hit the media.  Many people got the idea that trading was an easy way to make money working at home in their pajamas.

This idea turned out to be a misconception.  Day trading takes a little time to learn, and it can be lucrative from where ever you’re located, but you need to learn the basics before you start.

[Wall Street Laptop: The Future For Investing Online]

The first lesson is to understand that investment trading comes with risks and it’s important that you do your homework before committing.

First, What is Day Trading?

Day trading is the process of buying and selling securities, or a financial instrument, during the same day or more than once over the course of a day.   Because many brokerages have moved to online trading, you can conduct your business from your location.

Basically, a person involved in day trading is looking to make money by taking advantage of little price movements in individual assets (stocks) or indexes.  Day traders look for three different things in a stock: volatility, liquidity, and trading volume.  To explain these terms:

  • Volatility is the measure of expected daily price ranges, such as stocks from a corporation that experiences a higher rate of variance in its cash flow.  These situations can be capitalized on by a day trader.  The higher the volatility can mean higher profits or greater losses.
  • Liquidity in the financial market refers to the ease and price in which a security can be obtained.  Liquidity allows for easy entrance and exit from a stock at a good price.  The more liquid a stock is, the more easily it is for day trading.  Liquid stocks also tend to be cheaper than other stocks.  Stocks from a higher market capitalization corporation are generally more liquid because it’s easier to locate buyers and sellers.
  • Trading volume is an excellent indicator to a day trader to the stock’s volatility and liquidity because of the volume.  The volume is how many times the stock is bought sold within a particular period of time, which is usually averaged daily.  The more volume reflects the interest in a particular stock, but it does not indicate if that interest is positive or negative.  Often, when the trade volume increases it is indicative of price movements that are going to transpire.  One tool day traders use is the Trade Volume Index (TVI) to help decide whether to buy a stock or not because of the amount of money flow into and out of an asset.

Timothy Sykes

In 1999, Timothy Sykes seemed to be like most high school students, but he soon became famous with a story that impacted the world of day trading.  Sykes saved his gift money over the years and it to start day trading penny stocks.

His investment was approximately $12,500, and it earned him about $1.65 million by his 21st birthday.  He’s now part of the social trading platform Profit.ly, and regularly post live feeds to site members from a personal.

Many thought if a young person could do this without being an expert, then it must not be that complicated.  This is partially true, but Sykes spent hours studying before he started.

10 Day Trading Tips

To get you on your way day trading, here are some basic rules and tips:

1) While you’re learning, take advantage of free resources like Youtube videos and blog posts.  When you feel ready, set up a practice account online (some websites allow you to do this) and test a few trades.

2) Have an enter price, exit price, and an escape price.  Before you press the button to finalize the deal, you need to know when to get in, when to get out, and a strategy to get out if things are not going as expected.

3) Always set your price targets before you do it and stick with your decisions.  It will help you keep from being overly greedy if the price spikes and limit any losses.

4 ) When the market opens, avoid trading within the first 15 minutes, especially if you are a newbie to day trading.  Those 15 minutes of action are full of market orders placed the night before and panic trades.  It pays to wait until you’re able to see a rewarding opportunity.

5) To find an entry point, look for situations where supply and demand are drastically imbalanced.  If a supply is nearly gone and there are still buyers, then the price will go up, and if there is a surplus of supply and no buyers, the price will go down.

6) An important lesson is to set a proper risk-reward ratio.  At least 3:1 will allow you to win big and lose small and can help you come out ahead if you experience losses on several trades.

7) Be patient and don’t make a trade because you feel like you need to “just do something.”  Make your trade plan and trade according to your plan.  It takes discipline, and impulsive decisions can become your worst enemy if you’re working alone.

Timothy Sykes was mentioned in a previous blog post as a successful penny stock trader from the social trading site Profit.ly. Click image to read more.

8) Don’t risk too much capital on one trade and only trade with money you can afford to lose.  Budget your day trading and don’t exceed it thinking you are missing an unseen opportunity.

9) Don’t limit yourself to day trading stocks.  There are three other asset classes to keep in mind: forex, futures, and options.  Any of these can present an appealing opportunity.

10) As you go, you’ll learn from your experiences and as you’re learning don’t second guess yourself or your set rules established for getting in and out.  Every day trader losses at times, so don’t be too rough on yourself when things don’t go as planned.

day trading tip 3
Day trading comes with its fair share of risks. Be sure to exercise discipline, patience, practice and smart study habits.

Pros of Day Trading

The biggest pro of day trading is that you can earn some serious money if you can afford to take the risk.  As you learn the inner workings of the marketplace and create your enter and exit plans, you can increase the returns on your money. If you enjoy cliffhanger moments, you can enjoy them regularly.  If day trading becomes your job, then you can gain freedom from punching a clock.  You can set your schedule, work from anywhere, and earn an unlimited amount of income versus a salary.

Cons of Day Trading

Day trading carries a high risk because there are no guarantees that you will make any money and you can lose the money you have.  There is some expense involved outside of having a current computer, and you may need to purchase software to help spot price variations and access financial information.

You will need some capital to get started, and the money could be lost.  Day trading can be stressful and time-consuming, especially when you begin, so pace yourself.

10 day trading tips
Timothy Sykes, a popular day trader, is an active member of Profit.ly. Click image to view website.

 

The Final Verdict

Day trading is risky, but it can also be rewarding.  As a beginner, spend the time to learn the ins and outs of trading and spend time watching the marketplace.  Initially, you may want to get a mentor to help you.  You will learn from a seasoned person that will help you avoid pitfalls and will help reinforce what you have learned.

Considering Moving Abroad Like Thailand or Brazil? Then Follow This Plan

Considering Moving Abroad Like Thailand or Brazil? Then Follow This Plan

 

Considering Moving Abroad

There are many individuals who have succeeded in leaving their native country in pursuit of another destination, and there are those who have attempted and failed. If you are seriously considering moving abroad, especially to the exotic country like Brazil, you are going to need a game plan.

Apart from getting your visa sorted out and purchasing airline tickets, a significant amount of preplanning is required to get you started with your new life in one of the most vibrant places in the world.

Don’t lose yourself in the excitement, and remember to adhere to the guidelines we are going to discuss below.

Save, Save and Save!

If you’ve made a move before, whether it is to another neighborhood or another city, it will take cash. Now that you’re considering moving to another country altogether, it’s going to take a lot more.

Think about it for a second and consider the many unique costs you’re likely to incur. Visa, legal clearances, shipping personal possessions, bit ticket purchases. These expenses are the ones you will incur before you even get there. Now let’s come to the living expenses when the wheels touchdown in the Promised Land.

If you are planning to start from scratch, then having at least about 5 to 8 months of living expenses is highly recommended. If you run out of money in a country where you don’t know the language or customs, it can be scary. Ensure that the financial aspect is covered before you even consider anything else.

Cost to Live A Comfortable Lifestyle in Thailand – According to Scott Mallon 

Do you have a support group in your desired destination? While some solo expatriates have been able to establish themselves own their own, consider the option of seeking out a support system or group of global entrepreneurs who may assist in the process.

These groups may be found on traveler forums or through the social networks. During years of reading the experience of many expatriates, most will advise to first spend a few months in your target before making any final decision.

Tips about Brazil – According to Room In The Moon

And take into account, if such online group does not exist, you may need to use Facebook, Twitter or Google+ to start one of your own.

 

Check and Then Double Check Your Paperwork

When you’re in the process of preparing for your departure, you will be filling out a bunch of paperwork for both, the countries, the one you reside in and the one you intend to visit. Remember to make copies of every document that has your signature on it and every other legal and policy document that is signed to your name.

Considering Moving Abroad2
City lights of Thailand

 

 

 

 

 

 

Because pretty soon, you will be jumping through hoops for international money transfers, filling out tax information, obtaining health clearances, and if you are bringing along a family member, the relevant paper for them as well.

Long story short, do not get on the plane before you confirm, multiple times, that everything you need is there with you, along with backups should you lose the said documents.

Address Any And All Health Needs

Whenever one travels to another country, there is a slew of medical verifications you must go through before you become eligible for a visa. In the case of Brazil, being an exotic vacation destination, there are certain vaccinations and in some cases boosters you must be inoculated with before you become eligible. For that you will be requiring proof, so get the relevant paperwork from the lab or your doctor.

 

Create a Steady Stream of Online Income

Let’s be honest, moving abroad requires money.  And when traveling overseas, the importance of having a sustained online business cannot be overlooked or over stated. Since you are going to need a lot of money to reach Brazil (or wherever) and get settled there, before you start earning again, if you have an online business it can help you stay liquid for the foreseeable future.

Such are the perks of being an online entrepreneur, even while traveling you can take your livelihood with you.  We compiled an extensive list of ways to make money from the internet which one can read at this blog post.

Some forms of online income could be, but not excluded to:

Obviously, it should be noted that generating any amount of income, online or offline, varies per person, and dreams of becoming rich over night (if at all) should be left as just that- dreams.

Additionally, as with all areas of money making, it’s the hard work and effort one must put in before reaping anything significant. The idea of waking up to log on to your virtual work station (Laptop) at the comfort of your desired location is certainly a goal worth reaching.

However, it may require an enormous amount of “elbow grease” depending on your niche.

Love him or hate him, Fred Mwangaguhunga of MediaTakeOut (cringe) has stressed the narrative of hard work. In an online interview, he states,

“as far as I’m concerned, I work 365 days in a year. So I’m working Christmas, morning, when people are sleeping, I’m up and I’m working….. I get up probably around 3:30-4:00 in the morning. And on a regular day, weekday, typical workday, I get up around 2:00 in the morning. And my days are usually somewhere around 12 to 15 hour days”.

Now in terms of finding work overseas, such as Brazil, it’s important to spend a few weeks or months on land to gather as much information as . Thus, once you’ve finally landed a job in Brazil, you will be pleased to find out that the local government regulations state that companies are required to pay their employees an extra month of salary at the year end. Imagine all you can do once you make the life you’ve been dreaming of.

 

The Emergence of the Social Trader

The Emergence of the Social Trader

Social Trader

 

A lot of the previous blog posts have dealt with investing and how technology and the internet have made things easier for the common woman and man. So it’s no surprise to introduce another concept: The Social Trader.

Social trading is a practice online investors employ to make financial decisions, in which they utilize user-generated financial content from sites such as Profit.ly and Etoro.com. Sites like these help the social trader to analyze financial data by supplying a common ground for copying and comparing trades, strategies, and techniques. Before social trading was possible, copy traders and investors had to rely solely on technical analysis to make investment decisions.  Today’s social trading investors are able to trade data-feeds of social indicators online with other traders.

[7 Best Swap Free Forex Halal Sites]

Social or copy trading allows online trading with the assistance of others. Many social traders claim that this ability greatly shortens the time necessary to move from being a novice to becoming an experienced Forex (Foreign Exchange Market) trader. All foreign currencies are traded in this over-the-counter market, which is the most liquid and biggest world market today. Social traders can watch others take trades, interact with other traders, and then copy, or duplicate, the most successful trades, and in the process learn why top performers choose the trades they do. By using copy trades, a new trader can learn what strategies work or what strategies don’t work.

 

What are some of the key features of social trading?

Transparency – By using trading platforms like InvestFeed or eToro, a social trader can find out the performance statistics of other traders, past and present positions, plus current market sentiment, which allows members all the information they need in order to appraise the site contributor’s credibility

Monetization -The ability to convert an object or asset into legal tender or money. It is possible for copy traders to learn a great variety of data about other users which will benefit them in the long run.

Cooperative trading – Through these online sites newer traders have the chance to work cooperatively in trading teams, pool funds, share information, and divide research up collaboratively.

Information flow – Social traders can benefit greatly by studying information exchanges that flow freely between financial investors. Freely exchanged information is valuable to individual investors.

How does copy trading compare to social trading?

Copy trading capabilities are available with assorted financial trading operators as one part of a bigger social trading platform. Copy trading permits financial market traders to automatically copy any positions that are managed or opened by a particular investor inside the social trading network. A portion of the funds of a copy trader is linked to a copied investor’s account. This means that all trades initiated by the investor being copied, like opening or closing positions, or assigning Take Profit and Stop Loss orders, will then be executed in the account of the copying trader, depending upon the allotted trading funds of the copier and the proportion of the investor’s account that is being copied. Copy traders usually have the right to disconnect from any copied trades and begin to manage these trades themselves.

 

A study of copy trades in 2012 demonstrated that traders who did copy trades on eToro with a “suggested investor” were 6 to 10% more successful than manual traders, and four percent more successful than copy traders of random investors. Research is on-going to fine tune a trader’s capacity to benefit sustainably from copy trading.

Social trading has become increasingly popular. Here is a listing of the most popular social trading networks available today:

  • eToro – This site is a social trading network as well as a broker and focuses on novice investors. New investors like this site’s simple mobile friendly interface A review of eToro can be found toward the end of this article
  • ZuluTrade – This site currently has the greatest number of investors and traders online. They provide complete trade copying plus social interaction capabilities
  • Ayondo – This German based site was the first to offer auto trading to UK customers in order to “spreadbetForex accounts. They offer stocks, indices, fx, bonds, interest rates, and commodities
  • Copyop – This is the most advanced and leading trading network for social binary options
  • CM Trading CopyKat – On this site you can copy and follow traders through a special “CopyKatSIRIX trading platform. Members can mirror trades from everybody on SIRIX
  • Profit.ly – This huge website deals specifically with instructing people on penny trading ins and outs. This site offers email stock-pick alerts, SMS, plus a private chat-room where users can find help. A review of this copy trading site can be found immediately below.

InstaForex Review

Because they’ve become slightly more popular compared to the rest, we shall examine Profit.ly and eToro further:

Social Trading With Profit.ly

Profit.ly was created to introduce accountability, data-driven optimization, transparency and measurement into the world of online trading. Copy trades exist in abundance. However, concerns about stock manipulation as well as industry regulations sometimes prevent affiliates and members from being able to share information openly all the time. For this reason Profit.ly allows investors and traders to make private profiles where they can enjoy total account privacy.

Check the interview below:

This online site has advanced analytic tools which allow social traders to measure their performance, and at the same time make a knowledgeable analysis of which trade setups work the best for them. Traders can choose from various different products that include the capability to track profits, verify trades, get on leaderboards, message and follow other traders, plus view the stats of other traders for $29.95 a month. $49.95 a month allows a copy trader to make a private profile (but you won’t have access to other traders’ stats). The Pro level costs $74.95 a month and includes a private profile, as well as access to the statistics of other traders.

Profit.ly founder Timothy Sykes has made a career of exposing misinformation and fraud in the online guru and penny stock industries. A new feature of Profit.ly is called the “Bernie Madoff“, which allows community members to weed out and expose those traders that are possible liars.

profit.ly
Click image to visit Profit.ly, the Social Trading Platform

Social Trading With eToro

Founded by Jonathan Assia, eToro.com, “the Facebook of trading”, is currently the leading social trade network in the world (excluding the US). More than 5 million investors are using this social investment network. Opening an account with eToro gives you immediate access to CopyTrader, which advertises that members can choose to copy from more than 3 million traders. Once you open an account you can utilize their OpenBook platform for searching top social investors. When a potential trader to be copied is spotted, a user can allocate a part of their funds and begin copy trading. Any information that the copy trader submits is immediately protected by state-of-the-art encryption technology to ensure that your information won’t be shared with any third parties. A new account can be funded with PayPal, Moneygram, or credit card.

etoro forex
Click image to visit eToro, the world’s leading social trading network

One interesting feature of eToro is that if “popular traders” are copied, they’ll be rewarded. Depending on how many copiers a Popular Trader has, they’ll receive monthly fixed commission payments. The topmost “Elite” traders will receive annually 2% of all funds that are under their management, as well as totally commission free trading. In July of 2016 eToro updated their “Popular Investor Dashboard” to include a CRM (Customer Relationship Management System) which enables more interactions between copiers and Popular Investors. There’s currently more than 5 million users on eToro, which appeals to professional traders that are interested in making some extra cash for their trading skills.

To discover more details on the popular Social Trading platform, consider reading the full blog post review on eToro.

Examining The Financial Trump Rally

Examining The Financial Trump Rally

 

Trump Rally

 

 

 

 

 

In the early morning of November 9th, 2016, Trump was declared the President of the United States after Hillary Clinton conceded. For business men and women, especially those in the stock business, this was a defining moment, and as seen with every President, there are economic effects that have to be felt.

 

Within a couple of days, stocks began to rally and the dollar was strengthened to levels that haven’t been seen for over a decade. Trump’s economic agenda might be among the reasons that saw the strengthening of the dollar, or it might be his economic policies that have increased investor confidence.

This effect has now been named after the man to whom it is owed, and it is known as the Trump Rally. No, not the rally as it relates to protests or large gatherings for Trump supporters, but the one in terms of finances.

Lou Dobbs Commentary:

What exactly is the Trump Rally?

The Trump Rally is the positive effect on the economy that the election of Donald Trump as President has had. Just when it was clear that Trump was going to win the election, the stocks fell by about 5% on the evening of November 8th, and a number of people predicted that the market might crash if Trump wins the presidency.

On the morning of November 9th, when Trump was to give his acceptance speech, the stocks were still quite low. However, the stocks rose significantly and by the end of the day, the stocks had not only recovered the losses from the previous day, but they had also risen by 1%. This alludes to the economic policies that Trump has, which are seen to favor investment.

[Donald Trump News For Internet Entrepreneurship]

There has been quite a race in the stock market, and most countries have joined in the rally. Europe has been rallying as well, and the effects seen in most of these markets are figures that have not been seen for a long time. In just three and a half months, the stocks indices have lifted by a whopping 10%, a level that has not been seen in the last thirteen years.

[Forbes: Wall Street-Friendly Era]

The reasons behind the rallying are varied, and everyone seems to have a different opinion. The first speculation is the economic promises by President Trump. These include the promise to cut costs, less strict business regulations and turning infrastructure into a tax incentive. It could also be that the economy is getting better under the leadership of President Trump. Whatever the reasons, a lot of investors are riding the Trump Rally in an effort to increase their profits.

Video Commentary From AvaTrade

How Investors are Taking Advantage of the Trump Rally

With increased confidence in investment, there has been a race to gain using the Trump Rally. Stock rallying has been the method through which investors have been riding the Trump Rally.

The Trump Rally has been characterized by an increase in the purchase of stock. This increase in the stock trading has been as a result of increased investor confidence, which has directly led to an increase in demand for stocks in the market. An increase in capital and investments for companies have been realized, rising to up to as high as $100 million. Shareholders are releasing their shares at very high values, and investors are scrambling to get these shares.

However, there is quite a number of risk associated with the Trump Rally. First, it is not known to be permanent or a temporary occurrence. The investors are mostly dependent on the enactment of the promises made by president Trump, including reduced taxes and reduced restrictions on investments. The fear is that if these promises are not upheld, the investors run the risk of losing the amount of money that they use to invest.

TheStreet Discussion On Tech Stocks:

The other threat is the threat that the market will falter just as fast as it gained. At the moment, the stock market is riding on the crowd effect towards investment. The first person was driven by Trump’s promises, the second person was driven a bit by Trump and a bit by the first person, and now everyone is riding on the high that is the crazy number of investments. The fear of this is that this is a house of cards, and the slightest falter in confidence might lead to a crash in the market, back to the values from before the election, or even lower.

The Role of Online Investing and Trading

Online investment is the buying and trading is the buying and selling of stock electronically, and it plays a major role in everyday investment. You should read this post for further details regarding online investing.

Online trading is important for several reasons. First, online trading can play a role in your overall financial plan. If you buy and sell stock regularly, and you do it well enough to earn you some regular amount of money, you can add it to your financial plan. Secondly, with online investment and trading can be practiced as a side hustle, away from your main job. A knowledge of the stock exchange and trading values is necessary, no other knowledge is necessary.

There are three major ways through which you can participate in online trading. These three ways also are playing a major role in the Trump Rally as well. They are Forex, Bitcoins trading and Penny stocks.

Forex trading is a global market where different countries trade currencies. When visiting a new country, you are expected to use the currency of that country, and therefore, you change your dollars to, say, South African Rand. The amount of money you get when trading while getting into the country may be 13.22 Rand. While leaving the country, you need your dollars back, and while trading, you might be required to give 13.27 Rand for a dollar. This is foreign exchange. On a larger scale, a person may buy and sell the South African Rand, depending on how much it is trading against the dollar.

Foreign exchange can be done online, and in the Trump Rally, the investors have been riding on the strength of the dollar, buying it at very low prices and selling at relatively higher prices.

The role of bitcoins in the Trump Rally, which is traded online as well, cannot be understated. Bitcoin is a digital currency that can be bought, sold, saved and even cashed. During the Trump Rally, the bitcoin has been seen to stabilize due to an increase in investor confidence. Before Trump got elected, the bitcoin was trading at below $1000, but has stabilized and is now trading at approximately $1185.

Penny stocks, also traded online, are stocks with relatively higher risks and higher speculations, and they trade outside the major stock exchanges. They lack liquidity and are mostly traded over-the-counter, even though they are traded online as well. Riding the Trump Rally, investors have been buying penny stocks, due to a relatively safer cushioning. However, most investors have been hesitant, because, either way, penny stocks are high risk.

This just goes to show just how much the Trump Rally has been good to online investment and trading.

In conclusion, the Trump Rally is great for the American market and everyone working in it. The rush for gold is real, and the high demand is great. However, the uncertainties surrounding this rush are just as many, and the best course of action for any investor is to wait and see where this goes, and when there are fewer uncertainties, then invest.

eToro Review The Social Trading Giant

eToro Review: The Social Trading Giant etoro review

 

Here, we’ll get into an eToro review of the largest social trading website in the world. But first, for the unaware, let’s start with the basics.

Social Trading Platform

Social trading is the process via which investors use online data and financial content sourced from a multitude of web applications as the main source to drive financial decisions. Etoro introduced a new way to trade on the internet. In 2010, the company launched OpenBook, which is a crowdsourced investment platform. Using this platform, it is possible for first-time or inexperienced traders to copy the transactions of top investors in the foreign exchange marketplace.

 

Comprehensive eToro Review Video

 

EToro Revolution

EToro is widely considered the first and most advanced social trading platform. Subscribers have an immediate in with a community of experienced traders, as well as a social network within the investment world. EToro provides all the tools needed to trade in the modern marketplace. The platform enables you to:

  • Perform retail trading on the open market
  • Observe the other traders and copy their transactions
  • Use Copy Trading feature on the platform to automatically duplicate all trades made by your selected traders you choose

How it Works

EToro compiles the activity of all users and shares it with the entire community. This works like a financial transaction social network. Users can even like, comment and share on a user-generated feed.

Every trader gets assigned a public profile, which is open for consultations. Your performance is public and everyone can follow everyone else and replicate them.

EToro’s Performance Data

Once you’ve found a Professional Investor you want to copy, just click on their name. This brings up their profile, portfolio, stats, open trades, even their history and investment friends. This screen displays live trading feed of the trader. You have access to each live trade and any comments from other social traders, some of whom openly discuss their own trades. This is a tremendous opportunity for newcomers to learn the lay of the land.

EToro is second to none when it comes to the ability to quickly share information. Every investor can follow selected traders without copying trades automatically.

Video Example of Copying Top Traders

 

Markets Section

EToro Markets displays all products, such as currency pairs and stocks, that can be traded via CFDs (contract for difference, a contract between a buyer and seller that pays the current value minus the value at contract time).

Copy Trading

Generally, CopyTrader is an eToro tool that allows subscribers to choose a trader to copy and select an amount to copy for investments. You can watch how your account performs using this strategy. Here is additional information to consider before trying out this feature:

  •  Minimum investment is $100. Maximum investment is $500,000.
  • You can follow a maximum of 100 traders.
  • Minimum amount for copying is $1.

EToro Search Feature

This functionality lets you search for people or stock symbols and returns information on trades pertaining to the search criteria. The Top 100 traders, holding the most profits realized in the current week, are displayed. Here, you can review 10 instruments (indices, currency pairs and commodities) that they are trading at the moment.

EToro Advanced Search

Advanced Search filters on eToro help you figure out your favorite traders. The feature includes a risk level filter. You can search profiles by Average Position, Weekly Drawdown, Gain, Leverage, Winning Weeks, Win Ratio, Exposure and Min. # Trades.

social trading platform
Click image to browse eToro’s Social Trading Platform

Tips for Investing on eToro

  • Don’t always pick traders with the highest returns. Opt for frequent investors over “one hit wonders.”
  • Look for consistent, long-term returns, say 10-20% over the past six months.
  • To start, be conservative. Take advantage of the filtering tools to find traders with low-medium average risk
  • Diversify your investments over a bunch of traders; you can follow up to 100.
  • Etoro has real-time stock trading, and many investors who hedge and invest in forex and stocks simultaneously have more reliable long-term performance.

EToro Pros and Cons

Here are some great things about EToro:

  • Has tight fixed spreads
  • Guarantees stop losses and limit orders
  • Does not charge trade commissions
  • Available in four languages
  • Trade in Bitcoin currency
  • Price alerts
  • One click trades
  • Automated trading
  • Islamic and Arabic friendly

These are the cons:

  • Inactivity fee if not active in one year
  • Currently not available for United States citizens
  • No direct market access
  • No scalping
  • No VPS services
  • Charges fees to deposit and withdraw funds

Basically, eToro simplifies the amount of analysis that you have to do as an investor. This is a tool that lets you invest without siphoning through endless graphical performance data.

Some Attributes of Worthy Traders You Should Copy

  1. Their profile feed includes posts that demonstrate market knowledge
  2. Have low drawdowns (how much they’ve been down this week or month) under 10 percent.
  3. Consistent investment won’t have ridiculous returns in a short period of time. Look for long-term consistency, because these are sustainable without being reckless.

Islamic Trading Account

Islamic law forbids usurious interest rates in lending or borrowing money. This includes stock exchanges. The requirements to prevent Riba (usurious lending) include:

  • Stocks must be bought and sold without delay
  • Monies for each trade must be paid for upon the time of the transaction
  • Currencies should be directly moved from the seller’s account to the buyer’s
  • There can be no interest on any trades.
  • If any indication of usurious interest is detected, the contract is void as forbidden (Haram).
islamic forex account
Etoro – Available for opening an Islamic Forex Account. Click image to view site in Arabic

To resolve this issue, a trader can buy as much as his current balance allows or borrow from a broker, who cannot receive any usurious interest rates on the transaction. Also, no interest can be obtained from contracts ongoing for 24 hours or more, which means that the daily rollover of interest has to be zero on a consistent basis.

[A List Of Other Forex Halal Sites Here]

Conclusions

The eToro website is dynamic and easier to use. Looking back through old reviews, it is easy to see how much they evolved and are still evolving. As the first and still premium social trading platform, they have set the bar high and rising. With easy to understand interfaces and constantly advancing tools, this site is an easy “Yes, please.” Starting risks are very low; you can join for $100 and, as long as you make one investment a year, there are no transaction fees.

It is great that they have an Islamic account that respects the Islamic culture in a very straight-forward way. That kind of forethought attracts diversity, which can only improve the social investing gene pool, in my opinion.

One thing I did not see anywhere was the risk of heavy investors manipulating trade. It seems to me that it would be easy enough to band together a with few super investors and create some real chaos. It apparently hasn’t happened yet, so, for now, I am going to enjoy my relatively new eToro count and see how well my performance tracks against my advice.

social trading
Click image to visit eToro, the largest social trading platform

InstaForex Review New Copy Trading Opportunity

InstaForex Review – New Copy Trading Opportunity

InstaForex InstaForex Review

 

With the state of the world’s economy, it is vital that you have control of your financial future. But it is not just a decision that can enhance, it can be as exciting as Twitter! Global business and politics are changing the opportunities that individuals have to improve their finances. Likewise, technology has changed the way to take advantage of the dynamic changes in the markets. Utilizing the strength and global presence of social media, social trading is the opportunity of today, with copy trading becoming one of its best strategic tools.

Becoming familiar with social trading is as accessible as your computer. Over the past 10 years, there has been growth in the presence of online foreign exchange trading sites. In an age of 144-character attention spans, it can be difficult to know where to start to take advantage of social trading. The first step is to find a website with a technologically sound platform, tools to help educate and guide the novice investor, information that support even the most seasoned investor or trader, and user friendly navigation. Whether a beginner or experienced with trading firms, it is time to look at InstaForex. InstaForex is intuitive, information, and in demand.

First, What is Copy Trading?

Copy Trading most simply explained is the ability to benefit from experienced investors transactions to create an investment portfolio using a social trading network. Much like social media, social trading networks provide its members with the ability to interact, exchange information, and broaden their worldview. Within that network, copy trading gives users the ability to identify an investor and copy their trades. This is guided approach to entering the Forex market while reducing the risk. Some of the advantages of using Social Trading include:

Access to Trader’s Information: In the image of Facebook, Twitter or other social media sites, traders’ portfolios are open for others in the network to see. Users in the network can review the investments, track records, and length of experience of traders to make informed decisions.

Access to Multiple Traders: The network capability allows users to ‘Follow’ multiple investors. This provides an opportunity for investors to become familiar with the strategies and successes of a variety of traders.

Access to Training and Support: The best Forex trading sites for copy trading will provide its clients with documentation and training so they may learn the basics about the foreign exchange market. It will also walk them through the investment process and make it easy to follow traders. When planning for which network to use, ease of use should be a driving factor.

Four Things To Consider

Copy trading will allow you to look at the activity of other traders and “copy” their activity. You can choose an amount to assign to that trader and your investment will follow their activity. Most sites allow an investor to copy several investors, and others offer automated copy. When utilizing copy trading techniques in a Social Trading site there a few tips that you should follow to help increase your success.

1) Do your homework is always the first cardinal rule. An investor can focus on one high performing trader to follow or spread the investment across multiple traders. Spreading the investment may allow the added advantage for an investor to take advantage of the expertise of several investors. With either approach, research the traders track record, longevity, and risk score before investing.

2) Start with investments that will not negatively affect your life if you do not make a profit. Make a decision on the amount of time that you are prepared to hold the investments and commit to the timeline. You have an opportunity to conduct trade activity through most sites throughout the day, or hold for months or more.

3) Don’t just copy and follow. Stay informed on the latest news about the currency or company, and seek out the logic behind the transactions for the traders that are being followed or have the potential to follow.

4) All investing has risks. The advantage of a Social Trading site that you have the advantage of experienced brokers and feedback on success and challenges from other investors at your level of experience.

InstaForex Lamborghini
InstaForex often has offered a chance for members to win a Lamborghini. Click image to visit home page.

InstaForex Copy Trading Services

From the moment that you log on to InstaForex.com you see their commitment to your success. ForexCopy, the InstaForex system for copy trading, provides an easy to follow process to allow investors to identify and follow successful registered traders. The system provides access to high end financial services and all the tools needed to get begin investing. The ForexCopy system allows copying orders of successful traders, provides instant execution of copied orders, and enables adjusting a ratio of copying. Investors can monitor statistics on the trading process and strategy on the ForexCopy system monitoring page.

Video Example of the ForexCopy System:

Access to live customer service provides an additional level of assurance of success. InstaForex also offers investment incentives for account transactions including deposits and closing trades. Beyond Copy Trading, the InstaForex system provides access or a wide array of additional investment services and 107 currency pairs.

 

Pros and Cons of Copy Trading

There are pros and cons to investment. It is no different with Copy Trading.

Pros

  • Copy Trading can be an easy way for beginner to enter the trade market. While less effort researching a broker, an investor can take advantage of the wealth of experience.
  • The social dialogue can increase your investment knowledge.
  • The visibility of tracking your portfolio provides an investor the opportunity to manage risks. The monitoring systems provides real-time visibility to the investors’ portfolio, while at the same time allowing the investor to compare results to the performance of other traders. The investor can copy some different easily.
  • With InstaForex, you can start with a lower investment than almost any other site. As you gain experience and confidence the investment level can be increased.

Cons

  • One of the looming concerns is in the UK where the Financial Conduct Authority has contacted companies where they have concerns regarding the effective regulation of copy trading investment managers.
  • Honestly, it’s gambling. Never invest more than you can afford to lose. Following the most experienced trader is still a risk and the investment can be lost.
  • While you will possibly make some money, it can be a very slow growing investment.

InstaForex Site Features

As a part of the InstaForex community, an investor will experience a support variety of services on the website including:

  • Customer support via Chat or call back
  • Community and InstaForex blogs to provide users with information and a dialogue exchange to enhance the trading experience.
  • The ability to trade in Bitcoins.
  • A support system to perform copy trades the gives easy insight to experienced traders.
  • A test account with virtual money, as well as educational video to help train users about the site as the process.
InstaForex Bitcoin
The ability to trade in Bitcoin currency. Click on image for further information.
Consider InstaForex  As An Option

InstaForex provides the systems, support, and technical expertise to welcome everyone to take advantage of a growing area of investing. Now is the perfect time to take advantage of a new and profitable view of the world.

Instaforex Social
Click image to visit home page.