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How to make FX trading work for you part 1

Apologies to William Shakespeare for adulterating his famous line from, As you like it,when the mournful Jacques utters these famous words, “all the world’s a stage and all the men and women merely players; They have their exits and their entrances, And one man in his time plays many parts, His acts being seven ages’.…

Apologies to William Shakespeare for adulterating his famous line from, As you like it,when the mournful Jacques utters these famous words, “all the world’s a stage and all the men and women merely players; They have their exits and their entrances, And one man in his time plays many parts, His acts being seven ages’. I was thinking this week about the different stages of FX growth. I remembered back to when I first entered the world of FX and I wanted to give a brief outline of the different stages of a trader drawing on my own experience. Very few people talk about their development as a trader, and yet everyone has to learn.Starting from the ‘birth’ of a trader through to ‘adulthood’ and beyond this two part series will elaborate the five stages of growth I have identified for an aspiring FX trader. Let’s start with the birth stage. It’s rarely pretty…

Birth : The horrible world of the rookie

Being an FX rookie anywhere is hard. Being a retail FX rookie is nearly impossible. Certainly breaking through the stage is. Approximately 90% of retail FX traders give up. You enter the world of FX keen and enthused. You may have seen a video, demoed a MT4 platform or known a friend who ‘made a lot trading’ and you decide to take the plunge. You can do this, you say. For me, back around 2002-03, I was working for a charity for the time and my wages were very low. In fact at the charity we worked at we were grateful that we received any wages. Prior to my joining, a salary was not a standard thing each month. Hard to believe, perhaps, but true! Well, one day our charity had a conferences and one of the conference speakers was a pensions adviser. I had a wife and thought ‘ok, I had better sort out a pension’. So, off I went to the advisor’s seminar.

However there was a problem! The advisor was recommending that I saved what to me was a ridiculously high amount of money. So, being a creative thinker, I thought there must be a way of doing this more efficiently. Then it occurred to me. So, I said to the advisor, ‘If I save my money in GBP’s but exchange it into USD’s when the exchange rate is in my favour and then do the opposite when the exchange rate changes again, I can make my pot grow faster’. It was what the pensions adviser said to me next that led me to FX. He just said, ‘then you will be doing what I am doing’.

You quickly realise when you are learning FX that you have a lot to learn. FX robots, Technicals or Fundamentals, google is awash with trading gurus ! There are so many ways to go wrong. That is not to mention the internet forums. They are full of people who are frankly quite odd. You would have some so called ‘expert’ hammering a guy for being an ‘idiot’ and a ‘trading loser’. Then huge ego-driven arguments. Not an easy learning environment. So, if you are there right now at this place, what should you do?

What to do as a rookie

Focus on learning the basics. Check out a good site like babypips.com. Work through it. Trading takes time. The jargon, the concepts. You don’t need to know it all, of course, but put time in to learn. Don’t get a FX mentor at this stage, spend time learning the basics on your own.

Realise that you need to use fundamentals to decide your instrument to trade and then technicals to time your entry and exits. Work on understanding what that last sentence means.

Toddler: Finding your feet

How to trade FX

You are now trading and getting mixed results. You have worked out that some news events have a big impact on price and you are ready for it. You know about key support and resistance levels and you can see that some places are technically great for entries. You may have backtested a system or a dozen and you are confident and ready.You are not a beginner anymore, but you have gaps in your knowledge. You may not understand the role of the bond and equity market in FX and options and central bank language is still a but of a mystery. You know what a ‘spike in cable’ means, but you don’t understand what is moving the currency pairs.

When I was learning to trade at this stage I discovered the beauty of a ‘sell on stop’ in combination with a market maker broker. It was a beautiful time. The market maker brokers I was with got caught with their trousers down when I’d sell on stop out of a big market event. Because the market maker has an artificial market the fills I got tended to be quite good (this will depend on different brokers obviously). They honouedr the trade on the hope that next time I would mess it up, over leverage and hand all my money over to them. However, what bugged me during this time was yes, I was making money, but I didn’t know why or which direction the market was going in. I had constant insecurity in my mind. It was horrible as I only understood the technicals of trading. This stage ended for me when I got an e-mail closing my account I only worked out many months later why they had shut my account because I was exposing their market making model.This made me assess where I was at and decide that I wanted to not just trade the markets, but have an understanding of them. If you are here, wanting to understand the markets and why it moves then here is what you need to do:

What to do

Get a mentor. Pay for training from a professional. You will save years of frustration. I mean imagine trying to learn any skill without guidance.Yes, you can do it, but it doesn’t mean you should do it. Only the most persistent and able will persevere through the incredible frustration in self teaching a profession

What to avoid

What to do

Do not use high leverage at this stage. There is a phase that gets bandied around that ‘90% of new traders lose 90% of their capital in the first 90 days’. I personally recommend that during this stage you do two things:

  1. Don’t use leverage. If you have invested 1000 units of currency only trade 0.01 micro lot. This is trading without leverage. If you leverage up, lose your account then you will create mental barriers to your success further down the line. Trust me and follow this advice.
  2. If and when you lose 10% of your account, stop trading, Something is wrong and you need to re-evaluate. Demo trade until profitable and then get back on the bike.

By following this advice you will almost certainly learn to trade before blowing out your account. You will also avoid losing a painful amount of money that you most probably need. Oh, and by the way, learn to trade with as little money as possible. You may very well lose it at first, so whatever you do don’t invest a lot. Finally, if you do lose a lot. Don’t worry. You can rebuild and re-start. Just don’t do it twice.

The next article will be on the ‘Adolescent and Adult ‘stage of trading. I hope that this has helped some people out there and please share it around to anyone you think might benefit from it. Remember trading takes a long time to learn, despite what you may have been told. However, most of the ability to succeed just comes from not quitting, so it is a skill that you can master.

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Statements about Cryptocurrency

Statements about Cryptocurrency

Cryptocurrencies are in a bubble and regulators could burst this at a whim.

  • Eight years after the introduction of Bitcoin, there are now over 900 cryptocurrencies and their prices are at all-time highs.
  • Richard Schiller categorizes bubbles as an underlying story driving the market forward, as opposed to the fundamentals of the assets. Cryptocurrencies are riding on a narrative of economic empowerment and freedom.
  • Despite the widespread attention that cryptocurrency receive, many of the actors involved in the market are not fully informed. Debate tends to turn to hype and naive investors are buying crypto-assets without fully understanding what they are.
  • Banks spend 73% of the market capitalization of Bitcoin each year on regulatory compliance. Crypto-assets are currently unregulated and free of these restrictions. As such, the market has thrived but also developed some bad habits.
  • Regulators cannot necessarily shut down cryptocurrencies, but they can restrict liquidity into them from fiat currencies and hamper their growth. The global derivatives market, for example, is worth $1.2 quadrillion, dwarfing Bitcoin’s $100 billion market cap.

Statements about Cryptocurrency

Market manipulations in crypto markets are undermining their credibility.

  • Due to low liquidity, no regulation, and a lack of clear understanding of the markets, pump and dumps are widespread in crypto markets. This is where a speculator can artificially sell while concurrently buying their own currency, wait for the market to rise, and then dump their holdings.
  • Frontrunning is also a common occurrence in ICOs, where early investors—who are used to show initial faith in the enterprise—buy discounted tokens before immediately selling them on.

As with historic bubbles, scams are exploiting naive investors.

ICOs can have the characteristics of vaporware. Entrepreneurs are raising hundred of millions of dollars purely on concepts. Money is being raised from investors who do not truly understand the technical concepts being proposed to them, let alone whether they are feasible.

  • The actual asset structures of ICOs are not only complex but also new forms of assets in their own right. This further confuses investors, which is compounded by the “FOMO” mentality of rushing into investments and following the crowd.
  • The use of celebrities to promote ICOs further demonstrates the use of manipulative marketing techniques used to cajole immature investors into participating in ICOs.
  • The current ICO craze is reminiscent of the South Sea Bubble of the 18th century, a speculatory period that involved crazed investment into enterprises in the New World. Once one of the highest valued companies of all time, the South Sea Company’s bubble burst and the company disappeared almost as quickly as it appeared.

Blockchains are still not proven technology, and more work is required.

  • Blockchains are still new concepts and their technology has not yet been proven on a consumer-wide scale. Attention should be focused on developing this, not speculating on short-termist projects.
  • The security of blockchains is a concept that most investors in crypto-assets do not understand. The onus is on them to protect their assets, which, on the basis of the amount of thefts and frauds in the space, is not being done properly.

There are some solutions to these issues.

  • A less polarized mentality of “us against the world” is needed; this could be enforced by the promotion of self-regulatory standards. These could also help to highlight the bad actors in the ecosystem.
  • More development is required into the underlying technology of blockchains. In the long run, this would be far more valuable than ICO moon-shot projects.
  • Awareness and discussion needs to be promoted. Conferences should present balanced debates from both sides of the crypto-view and more emphasis should be placed on educating investors instead of soliciting their investments.

Originally Published here at https://www.toptal.com

Statements about Cryptocurrency

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CMStrader Signals provider, the number 1 signal provider 4 years in a row

CMStrader Signals provider, the number 1 signal provider 4 years in a row.

CMStrader, the number 1 signal provider 4 years in a row, is now offering free signals to new clients!  Reliable trading tools are fundamental part of successful trading.

cmstrader for the Best Trading Signals

cmstrader for the Best Trading Signals

 

CMStrader’s signals success rate is estimated in 91% this should be enough to take a look and decide for yourself. since this is their biggest feature and drives this broker towards success, it is opretty afe to say that they do their utmost to provide you with quality forex signals.

This broker also entered the cryptocurrency market and offers several cryptocurrencies.  in short they act on the market and engage their clients directly.

when you start trading at CMSTrader, you can choose from a extended list of currencies, indices, commodities, gold and oil.

CMStrader Signals for better Trading

CMSTrader sends trading signals to traders’ accounts when there is an opportunity to buy or sell orders at specific points; an overview of the speculated price or loss ratio is included.

CMStrader Signals the number 1 signal provider among brokers

CMStrader Signals the number 1 signal provider among brokers

The signals are sent directly via SMS to a cellphone for major currencies traded on the stock exchange, foreign goods and precious metals.

In addition, signals can be sent to an e-mail address and or traders can be notified directly over the phone.  This service is available 24/5.

Like with Most proper signal services don’t expect 50 signals a day as simply there are not that many. you will get maybe a few good ones a day on which you could and most of the time should act.

Earn profits with CMStrader Signals in the forex market – the biggest trading scene in the world. Enjoy our unique benefits, trading education, minimum margin and best leverage! Start with a demo account and enter the amazing world of forex with CMStrader.

More about CMStrader Signals & Forex Broker

  • Name :CMSTrader
  • Website :cmstrader.com
  • Established :2013
  • Regulation :FSP
  • Country :United Kingdom
  • U.S. Clients Allowed ?  :No

CMSTrader is a leading investment advisor specializing in personal wealth management and growth and is a somewhat a newcomer to the Forex market.

they started in 2013 and since then have won several awards 2 including one for having best customer service in 2013.

CMSTrader “CMStrader Signals” is authorized under the name of CMS Ventures Limited which is a New Zealand Registered Financial Service Provider (FSP).

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Supreme Court Sides With Bits of Gold in Bank Dispute

Supreme Court Sides With Bitcoin Broker “Bits of Gold” in Israeli Bank Dispute

Upon appeal, the Israeli Supreme Court has rejected the closure of Bits of Gold’s banking facilities at Leumi bank, Tel Aviv.

The Israeli cryptocurrency brokerage’s appeal followed a previous ruling against it that has now been set aside by the higher court.

As Israel and many other countries struggle with the accelerated phenomenon of virtual currencies, Leumi Bank recently made the news for being a particularly blunt in its rejection of Bitcoin.

We should of course not be surprised with the banks attitude towards bitcoin or any other cryptocurrency for that matter. keep in mind that the banks become more and more obsolete because of them. Bits of gold versus leumi

They will keep on loosing money which now they make with ridiculous commissions of work that is fully automated. so they will try to see how they are able to make the operation and acquiring cryptos  as hard as possible knowing that they will never be able to stop them.

There is widespread anticipation that the upcoming G20 Summit in March 2018 will produce a global, moderate framework for a regulatory approach. Set against that are persistent hostile stances the world over from banks, asset managers and even governments towards cryptocurrencies.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane. 

Apart from the Israeli revenue service opting to tax cryptocurrency assets as “properties” and other more positive developments dating back to mid-2017, Israel remains a strange mix of genteel acceptance alongside wildly opposing voices.

There is thus Hope But no decision

Bits of Gold has fought a David and Goliath battle since their banker decided it wanted to steer clear of all cryptocurrency-related business.

On record as recently telling another bitcoin-related trader that they simply don’t want the business, Leumi Bank’s hard-line stance is accumulating bad press. The second-largest bank in Israel appears as discriminatory when analyzing virtual currency traders and other digital coin businesses.

During 2017, a customer made a bank transfer to the Kraken exchange site for buying bitcoin worth $1000. The bank identified the request, halted it, and started investigating.

The elated CEO of Bits of Gold, Youval Rouach said that “The court’s decision enables us to focus on the growth of the Israeli cryptocurrency community.”

 

The February 26 Supreme Court ruling granted Bits of Gold a temporary injunction against their account closure pending further scrutiny by the bank and other parties. The presiding bench declared that the company had “acted transparently and did not violate any provision of law.”

Calling the bank’s concerns “speculative” and turning an unsympathetic ear to the plaintiff, the ruling does, however, allow for the bank to still close the account on any small technical detail that defies legislation. As a record of a public spat around cryptocurrency’s right to be recognized in many ways, the ruling is seen as a victory for the local cryptocurrency community.

One Small Step Forward

Although not as absolute as nations like China that has opted for draconian bans, Israel is a front line for digital coins’ right not just to exist, but also become assets in the true sense of the word. The Supreme Court noted in its written ruling that Bits of Gold had not made itself guilty of the violation of any standing laws since opening its doors for business.

 

The Bits of Gold v. Leumi Bank case might become something of a test case once the bank applies its mind in scrutinizing the company’s accounts against the backdrop of existing legislation. The outcome will also be informed by sentiment post the G20 Summit due in March as well as other global regulatory trends.

Now that the countries understand there is money to be made with Taxation in cryptocurrencies they might want to make sure that the banks stay within their lane.

This was First Published by coindesk

 

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