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Trade

Opening the door towards innovation combined with elements of trade to gain the best possible result.

Forex

Decoding the foreign market to help you get started and accomplish aspects that you always wanted to.

Stocks

Understanding attributes relating to stocks that go a long way in moulding an individual to gain a foothold.

stratergy

Pushing forward a unique strategy that is flexible and in tune with the current aspects that affect the economy.

METHODS

Prolific methods that analyse situations and clears out areas of problems that have been plaguing for a long time.

TACTICS

Tips and tricks coming from experts that stand to be validated to withstand all kinds of occurrences.

Benefits

 

 

 

Forex Vs Stocks

Investing

Helping you choose the better option that comes with a bunch of favourable aspects of satisfaction.

Benefits

Gain clear and valid criteria for benefits that help you receive an excellent form of return.

RISKS

Understanding risks and helping you overcome them by leading the path ahead.

Market Differences

Fees

Keeping elements of costs in tune with the current aspects of needs and requirements.

Commissions

Forming a line of difference between our rates of commission and the vast market rate of commission.

ACCESS

Helping you gain the right sources of trading and investment that do not seem to be far fetched.

Latest trends

Keeping you in touch with the latest happenings from the world that you are going to be familiar with. replyinsert_emoticon more_vert
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From our blog

Boom and Bust Cycles

Boom and Bust Cycles Explained, Why do They Occur?

The boom and bust cycle is an economic expansion and contraction process that occurs from time to time. It is the key characteristic of capitalist economies. When the boom occurs, the economies grow, offering employment opportunities and high returns from the market. Likewise, when the bust occurs, the economies shrink and unemployment increases. The investors lose their money on the trades in stocks and forex. Both boom and bust cycles last for different lengths of time, and they also vary in severity.

One of the benefits during the boom is the easy availability of loans at low-interest rates. Individuals and businesses can take bigger credits with ease and invest it in projects. Meanwhile, the people earn high returns on their investments and the economy of the country grows. People should be careful while taking credit and should not overinvest because of low-interest rates. Due to overinvestments, the demands will soon go down. This phase is called malinvestment phase. The things that people overinvest in will decline in value, and the bust will set in. During the bust, the investors will lose money, the companies will cut down the jobs, and the consumers cut down their spendings. The bust is also called the recession period, and if the recession is severe, it is called depression.

 

Why do boom and bust cycles occur?

Loose monetary policy

When the real interest rates become too low, the monetary policy gets too loose, and the economy of the state faces a downfall. Loose monetary policy affects the cost of credit and mortgage payments. This causes a rise in investment and consumer spending. This rise then makes the state to increase the money supply and cause economic growth which will be the boom. When a state has a long economic growth rate, it will soon experience rising inflation, wage inflation, labour shortages. Due to increasing inflation, the banks will put up higher interest rates which will turn the cycle once again back to the bust.

Loose fiscal policy

The loosening of fiscal policy can also cause excessive economic growth. With an already improving economic growth, if the income tax is reduced, the state will experience an economic boom. This loosening of fiscal policy will cause a rise in government borrowing. The could be inflationary if it gets financed by monetary policy. Also, when the government increases borrowing during the boom, it will have fewer resources to pursue fiscal policy when the bust occurs.

fiscal policy

Multiplier effect

Also known as the accelerator effect is another cause for the bust and boom of an economy. There are factors that magnify growth, as well as losses. According to the multiplier effect, investment depends on the rate of change in economic growth. As the state experiences a slight improvement, the percentage of the investment will also increase. The rise in the investments will have better effects on the GDP of the state and will minimize initial injection. If the spending falls down, the state will experience a bust which will result in a lack of job opportunities.

Options Trading

Choosing Between Forex and Options Trading

Deciding between investing in a substantial financial market like Forex and large amounts of stocks like Options trading(Watch Now) is not something that can be clarified overnight. It takes time to analyze both these opportunities and come out with a result. For this purpose, the first thing that you ought to do is to look into the differences. Once you acknowledge them, you will be able to make an informed decision which moves ahead to satisfy your needs. So, all you need to do at this juncture is to read through our differences and then think about the viable option as we break it down at last. Hence, go ahead and gain some knowledge.

The Differences

1. Rapid Trades

A significant advantage that lies with the Forex market is the progression of rapid trades. Here different kinds of transactions are executed within a matter of time and delays usually witnessed for options trading are not visible. So when you place an order with Forex, you can expect things to get formalized without having to face price spillage and other kinds of problems. Hence, in terms of speed, Forex takes the lead.

Rapid Trades

2. Accessibility

When it comes to accessibility, it is quite essential to note that the Forex market is open 24 hours per day, five days of the week. This means that you can get all the time in the world to proceed with your trading options. On the other hand, this aspect is not the same for the options trading. The market follows the same pattern as the Stock market and thus brings forward limited working hours that are usually between 9 AM to 4:30 PM. Although that sounds like a disadvantage, it can prevent investors from reacting rapidly to market announcements that move ahead to avoid an investment opportunity. So this round does not side with anyone. Instead, it is up to the investor to pick a comfort zone.

3. Risk Management

The involvement of risks is a massive aspect of any investment opportunity. So by all means, risks are present for both the Forex market as well as for Options trading. Thus the ultimate result lies in the fact of how these risks are handled. For Forex, one needs to use top strategies like Scalping, Positional trading and Triangular Arbitrage, in order to control and prevent uncertainty. Since risks are not new to Options trading, top strategies like the Long put, call and short put need to be utilized to the right extent.

4. Commissions

Bringing forward a concept like commission into this set of differentiation will only result in a clear winner, i.e. Forex trading. In this market, investors tend to face a commission-free mode of transactions since it is an interbank market. There are no middlemen and brokerage fees for this market and traders can expect to carry operations on a smoother note. Since you might be working with a broker or a brokerage firm, Options trading do include commissions since it is their mode of living.

Commissions

The Result

When you consider all the above-mentioned aspects, you may or may not have a clear answer in your head because these are only a bunch of points that highlight both these markets. The ultimate decision lies with the trader, and he/she needs to choose one based on their choice. If you prefer the option to trade instantly and quickly, then the Forex market needs to be your answer. Whereas, if you prefer to operate in a market that is regulated, then Options trading needs to be your calling. By all means, you should be able to adjust with the option that you choose in an effortless manner. If you select one and face problems, you can clearly understand that you have made a mistake. Hence, read those points again, consult an expert and make a decision that enables you to be efficient.

 

Forex Vs Stocks

Forex Vs Stocks: Top differences and how to trade them

Stock trading can be the best especially when the market is rising but Forex has its perks and is also lucrative. Which market to trade can be the fundamental decision in determining the nature of your investment. Traders often interconnect the two markets with each other overlooking the vast differences between the two. It all boils down to the trading you are looking for. The understanding of the differences between the two can help you make a sound decision. However, markets are hugely dependent on risks, liquidity, and other market conditions.

Forex:

Foreign Exchange in simple terms is the trade of currency. It’s the market through which currencies of the world are traded. In Forex you are buying one currency and selling the other. Various people have varying opinions on trading, but it all depends on your requirements and what you are intending to achieve.

Stocks:

The basic purpose of Stock trading is to make a profit off the stock price whirlpool in the market. Stock trading includes the purchase and selling of equity of shares in bulk(Do Watch). Stock is simply a small portion of the business you buy. The duration of the business may depend from person to person. Traders can purchase stocks for a day and sell them before the closing of the market in the evening.

purpose of Stock trading

Differences:

The main difference between the Stock trading and Forex would be that Stock Trading is done through an exchange where a proper record is kept about buying and selling the Shares. This centralized system makes trading a lot safer. Forex trading is devoid of such a centralized system and the trading takes place between the buyer and seller. It’s more of a partly private affair. Stock is to be bought or sold in the lot while as you buy one currency and sell the other in Forex.

Capital:

Stock trading requires huge capital to make it in the market however the less cost of entry in the Forex market is the best way to make it in the market. If you are lingering between Forex and Stock trading, you should first know what your requirements are. Furthermore, speculating in the Forex is cheaper than Stocks.

How to trade them:

Forex:

Currencies need to be exchanged to conduct cross-border business. Forex is the market where this trading takes place. Once you have made up your mind regarding the business, it’s very easy to get the hang of it. The first and foremost thing is to choose a currency pair from the existing 65 pairs. You should understand the price volatility to help you understand your trading style.

Types:

Forex trading is of three types – City Index Spread Betting, CFD or Forex Trading with each one having its size. pounds per point movement are traded in spread betting, in CFD you trade in the Unit of base currency and in Forex you are buying the lot in base currency.

Buy & sell:

Once you have your pair, you need to know the market it’s trading at. Buying and selling of the currency are based on base currency and quote currency. The task is when to buy and sell.

You will buy a pair of currency if you were to determine that base currency will strengthen against the quote currency and sell the pair if you think that the base currency will weaken in value against the quote currency. The currency pair has base currency on the left while as a quote currency on the right.

Monitor:

You will be able to monitor the progress of the trading, close or update existing trades from your mobile phone or the PC. You can choose to close the trade and the cash balance will be reflected in your account.

Monitor

Stocks:

Stock trading is the selling and buying of equity shares. In Layman term, a stock is a fraction of the company and when you buy it, you own a little share in the company. If your stock is good and the company is performing well on the market, your stock is liquid and you can sell it anytime. The stock market is an investment of the future and requires your investing goals and after you have thoroughly understood your goals, you can go ahead with a Brokerage account online.

Open an account:

Any online Brokerage accounts will guide you through the whole process. However, make sure to keep your documents ready for the verification process. You should be able to get through in a matter of minutes and the account will guide you through purchasing your first stock. You need to keep in view the company’s recent sales, future and current products, revenues, and management. It would be wise to have a deeper understanding of the market by reading about it online. Trading in personal stocks can uplift you but low-cost, but diversified index funds is a wiser decision. Chasing hot-stocks can look appealing but investing in long term outcomes is always a fortune.

Conclusion:

The difference between Forex and Stocks is a fundamental one. Where one operates through a centralized manner, the other involves buying and selling of currencies devoid of any centralization. The requirement of either of the two options depends on what you are looking for in trading and what style of trading suits you.

 

investing

How can I start investing with little money?

Investing can turn out to be a lucrative career if you know how to do it properly. The first thing you should understand about investing is that it is dependent upon two things – how much capital do you have? And how are you going to invest it? A right step at the right time can turn you into a king. Though the strategies may vary from trader to trader the base always remains the same – knowledge, stats and capital.

Debts:

Before you start investing, measure any debts you have. A sound financial plan involves clearance of all debts. If you are carrying a lot of debt it would be sensible for you to at least pay the quarter of it or as much as you can. You can then trust your investments after that and learn how to save money for the investments.

Start early:

Start early:

Investing in long-term returns is always fruitful and the younger you start, the better. Some traders trade daily and depend on the daily price fluctuations but if you choose to invest a specified sum for a particular period, the amount returned to you will be much higher than your principal amount.

Decide how much:

The first thing you should understand in investing is how much do you have? Once you have your total figure, you shall be able to understand how much you can afford to invest. Your intention about the type of investment should be clear.

Sensible choice:

If you have little money, you will surely want to cut on the commission. Some various apps and platforms charge you no commission on your investment. You are required to maintain no minimum balance and you can start investing as low as $1.

Real Estate & Savings account:

Surprisingly, you can invest in Real Estate crowdfunding if you are cash-strapped. You can invest as low as $500 in the business. This way you help the company to pool money and the profit of the company will come back to you. To be honest, Savings account is the least exciting thing to do. However, this investment is used to accumulate funds and earn a little interest to be used later on.

Savings account

Peer to peer:

This has been the most traditional form of investment. If you are confident that the other person will honor their bargain, you can lend them money, but if you lend this amount among your family, it will crop up tensions. Some platforms allow you to do so with borrowers and you can earn a decent amount in return.

Metals:

Everybody likes gold. It’s one of the profitable industries on the planet. They are tangible products and also pay-off hefty amounts. You simply purchase the product and wait for the right moment to sell it. Usually the price of precious metals like gold and silver rise.

Stock options:

Stock options are different than stocks. They give you the capacity of buying and selling of stocks. It consists of calls and puts. Calls are options expected to rise while as puts are anticipated to fail. Even though stock options are risky, they can reap you higher benefits.

Commodities:

You can invest in things like oil, natural gas, renewable energy, and agricultural products (crops or livestock). You start by buying a contract and if the prices rise more than your contract, your investment is making money. Your trade depends upon the supply and demand of the said product.

Low investment mutual funds:

Many mutual fund accounts require different things. Some need you to have a hefty balance but others let you open an account with far less. You can check with various firms and see what mutual fund meets your financial requirements.

mutual funds:

Invest in your own business:

Apart from all that, if you own a business, you should use the small amount for the same business or if you don’t, you should try to use that money for a side hustle. This may look unfavorable at the beginning but you will need to think as to what sort of business you can do with that money.

Retirement:

The early you start thinking about your retirement, the better. One of the key goals of your life should be that you have enough when you stop working and that’s where a proper retirement plan comes to save you. If your company offers a decent retirement plan, don’t take it for granted. Look for other options and keep in mind your returns. After all, the rest of the years should be comfortable.

Online Brokerage:

Now that you have decided to invest your hard-earned money in a company, you will require an online brokerage. They are the ones that facilitate your investment from Stocks to Forex and more importantly, they become your damage control during a computer meltdown.

Nature:

The next step will be to find out where the investment will need to go. The choices vary on what you are looking for. A piece of expert advice and knowledge will come in handy in this situation. The expert can assess you in determining your goals and what kinds of risks are allowed.

Analyze:

You need to monitor your investments. The hourly changes will not matter for you if you are in the long run but you will require to monitor your investments and change accordingly. The market changes every hour depending on which you can buy and sell investments. If you want to remain sound in the market, check your investment regularly to see the situation of the market and if needed, pool in or out the money.

Conclusion:

Investing is not about money but strategies. However, a sound capital does matter in the trade but without an understanding of the market, it’s just paper. Before you go in and start investing, understand the financial market thoroughly and determine the reason for your investment. If you know where to put your money, it can be your life-changing decision. After all, investments are done to change lives.

 

Trading Strategy

How to Build a Successful Trading Strategy

Stepping into trade business can be a risky decision, but only until you truly learn how it works. You will need a good trading strategy to be able to survive for the long term among the professional traders. Many components help to make a good strategy, but all trading strategies follow two key steps. It is essential always to keep your winners larger than your losers while maintaining risk management strategies to control any significant losses. This guide, you will learn how to make a good trading strategy and how flexible it should be to deal with the changes in the forex and stock market.

Who is a trader?

 
A trader is someone who observes the market and places orders in it independently or on behalf of institutions such as banks, investment funds, and hedge funds. A trader also exchange orders which include buying and selling of stocks either with their name or a client’s name from an institution. A forex trader manages the currencies for own trades and for clients as well. The main goal of the traders is to buy in before the share price increases and sell before it falls. This process happens in short and long terms.

Why is a trading strategy important?

A trading strategy will plan out the things you need to do in order to experience successful profits. It will set a goal that is possibly achievable so that you can work until the goal is accomplished. It helps in monitoring your trades and let you keep track of everyday trading with ease. A good trading strategy also helps in finding new opportunities and makes you response to the market according to the new conditions. Developing a strategy also makes your trades consistent as you learn more about the trades. It will improve your overall trading capabilities and provide you with the right opportunities.

What does a trading strategy need?

A good trading strategy has four key components which are essential for the strategy to be effective.

A strategy needs directional biasing and qualification for the entry to identify the stocks that are going up and the stocks that are going down. You need to determine stop-loss and take-profit targets to make better choices. In the meanwhile, you should also define your preferred time to hold a trade. At last, you need to develop a risk management system to have consistency in growth.

The process of establishing a directional bias is a two-part process. First, you need to predict where the stock price will potentially go up or down. Once you know the prices that will go up or down, you can use the trading rules that can validate your directional bias.

There are two ways you can qualify your entry.

  1. Fundamental analysis
  2. Technical analysis

You first need to learn the fundamentals of trading in order to understand the trades that you will do. Even when you use your technical analysis, your fundamentals will hold the basic information for you about the factors that affect your stock. For example, knowing the dividend dates can help in taking advantage in a stick while using your technical analysis.

Technical analysis

For technical analysis, you need to establish key technical levels for yourself and then look for the prices to either break or bounce. There are many technical patters such as MACD, RSI, Fibonacci, Bollinger bands, and moving averages that can help you in figuring out whether you want to go long or short with a trade. These tactics will help you trading in stocks as well as in forex.

With the strategies mentioned below, you will be able to make successful trades in forex.

Forex trading is an easy trading option which is easy to learn and offers exciting opportunities to the traders. But without proper strategy and understanding of the market, traders cannot hope for successful results.

Keep rational expectations

It is good to have expectations, but if you are too emotional about getting results, you will face a hard time coping up with your losses mentally. The anxiety that develops due to chasing profits can lead one to make poor decisions. The first rule of traders is to stop dream for unrealistic goals and objective. Getting a huge profit in the first trade is not common enough to be taken as a motivation. It can be risky to have overconfidence over a trade which can become your initial losses in trading. Setting high goals can lead people to make mistakes of falling into excessive actions and overtrading. Instead, you should be focusing on learning a trading strategy and trading tools to establish a lasting approach ane become successful.

Define your risk profile

Get a good grip on the fundamental aspects of the market before making any commitments to trading. Calculate your capital at hand, go through trader testimonials, and keep realistic expectations for returns. Take time to research the market and currency pairs that you find interesting. Do not invest in forex or stock unless you get comfortable with the dynamics of trading. While making decisions, make sure to keep trading money separately and invest only with what you can afford to lose. Figure out whether you will be using a moderate approach, a conservative one, or an aggressive one. Be prepared to lose and keep trying is the only way to start making consistent profits as a trader.

Set stop loss and take profit

Always set a stop loss and take profit for your investment in the market. It will help you determine the closing price for your trade. Never get too greedy or too hopeful in the trades. If you reach your take profit point, you should withdraw your earnings. The same goes for when you reach a minimum accepted loss at stop loss. It will keep you calm for the long term if you keep up with the strategy.

Avoid overtrading

Overtrading is caused due to emotional expectancy for profits and loss of patience. It is the result of decisions that seem like opportunities but are nothing but bad decisions. In a hurry to reach the goals, some traders buy on too many opportunities. While they feel they are doing right, they are simply deceiving themselves. There are two types of trading: Trading too frequently and trading with too much volume are the bad habits that impatient trader develop after a time in trading.

Learn to accept losses

Stock and forex exchange is a constantly changing market which cannot promise anything even for the next couple of minutes. Every trader wants to benefit from the success of their trades, but in trading, the meaning is a success is not winning in each trade. Trading is a wide playfield where traders invest in multiple trades. The actual success if the average profit across all your trades is on the positive side. It is impossible to look in future and close every trade with a profit. You can get a consistent profit streak, but even that won’t last forever. Do not lose motivation on facing losses in trades as the traders confessed that less than 40% of all their trades become successful. Keep multiple trades to keep a balance between your profits and losses and try to keep your profits on the heavier side.

Successful Trading Strategies

How to Build Successful Trading Strategies in Forex and Stocks?

Having a plan doesn’t put you at an advantage; action matters a lot. But in business, the plan runs the game with actions being entailed. Failing to plan an appropriate strategy for the business is only paving the path to an epic failure. All businessmen, be it of any industry, must stick to their virtues and adopt important strategies to emerge successfully in their respective fields. Taking planned steps towards success works more effectively than that of going astray. Every business person who has had a splendid record of achievements will have their share of plans to talk about that have worked in their favor. Jotting down your ideas to keep a record of your progression will take you on the right path towards the boom. But it comes as no surprise if you have such a plan and none of your acquaintances does because it is only a minority that believes in the proper functioning of such an idea.

What Matters When Building a Plan for Your Trade?

Your time and efforts are called for in the process of building a successful plan. A considerable amount of research has to go into the exploration of the financial market and its potentials. What you undoubtedly receive by doing this is the contentment at each stage, which is not guaranteed to sustain to the end. Stick to a plan, make sure it works well for you, and also keep a tab on it so that you reconstruct it when the market conditions take a sharp turn.

Plan for Your Trade

When making a plan, you need to ensure that it suits your style of approaching the goals and issues in the process. Exiting the trade is as important as fixing a position for yourself in it; knowing the right time to take each step helps you to a great extent in running the business. Profit targets and stop-loss prices are integral parts in a trading plan since they work collectively to identify the suitable exit points for every trade.

Keep your emotions out of the trade and think rationally, which will reduce your exposure to the risks that it involves. All of these stages in planning a good strategy would take months; stay calm, utilize the time and get prepared for what lies ahead of the decision to trade.

Important Steps to Build a Successful Trading Strategy for Forex and Stocks

Seasoned traders are relatively programmed to the working of the market to some degree, and they would have set plans for entry and exit. That is the level each newbie has to set as a target; trade begins when you are ready to fall into the pattern of your plan. Here are a few crucial points to keep in mind while building trading strategies.

1.      Assessment of Skills

Your plan should always consist of techniques to assess your growth at each stage. Being competent in trading requires a certain level of experience, which cannot be gained without first entering the platform. The area of skill assessment is where you and the pros would primarily differ. You should be able to test your system and gather the confidence to take up a trade before deciding on it. Since the market works in favour of the trader with better strategies, chances for you to outdo the experts without proper skill assessment are slim.

2.      Choosing a Platform and Broker

The popularity of online trading started witnessing rapid growth in 2008, after which the domain was one that of an enormous bustle. Investors and brokers rushed to these platforms in search of opportunities to leverage upon for massive returns. Since then, there has been no significant fall of trade in these platforms, thereby contributing largely to the economy. Features will differ from one platform to another, which have to be checked through properly before picking any one of your interest. It isn’t the visual appeal that should allure you into a website but the bonuses and other features that should. The practice of trading will necessitate investments and withdrawals, which you should be aware of while selecting a particular platform. You also need to look out for a free demo account, trading tools, and efficient customer support. Choosing the right platform and broker for trading might seem to be a one-click decision, but what follows would be life-changing.

Assessment of Skills

3.      Updates of the Economy

Another important step that you need to take while indulging in online trading is keeping track of the updates of the economic events. Only by doing this will you know what variation has to be brought into your plan to leverage the opportunity at hand.

4.      Technical Analysis

Software for technical analysis can always be used for assistance in understanding the trading charts. Future movements of assets are almost always predicted in trading charts using the current exchange rates and the prevalent trend.

5.      Make Use of the Demo Accounts

While many brokers provide these accounts freely prior to requests flowing in, others offer the demo account only upon request. By practicing tour trade on the demo account, you are likely to come across errors and flaws that are most frequently occurring. By learning them, you get more seasoned with using the platform and will be well aware of the common mistakes.

6.      Investment Management Strategy

Make sure to have an investment management strategy while trading for stocks, with the most important step being to avoid the risk of a massive loss by investing not more than 50% of your capital on the initial trades. When the first trade is successful, and profit comes your way, set aside half of it for personal purposes and invest the remaining half in the trade.

7.      Set Entry and Exit Rules

Set rules for your entry and exit by keeping in mind not to involve your emotions in the trade. It is always essential to have an exit plan than having a proper entry point. You can enter the business when the time is right for it by checking the market conditions and the probabilities for a good profit. But exit should be set even before entering the trade since humans tend to mix emotions with it and make bad decisions at the peak points. You either have to settle on a stop loss or set a profit target. Upon hitting any of these, you have to be prepared for an exit. If you meet with a loss, there is no point in constantly brooding over it; exit the platform for your good. Hitting the profit target means you will be left with a choice whether or not to take it further on for trade.

You can build the skills for successful trading in forex and stocks through various online platforms that excel at training you through the basics and advanced levels of trading.

Differences Between Forex and Stock Trading

Stock Trading

The major differences are noted to be in the volume, liquidity, markets, commission, and focus on currencies.

Forex

  • A large volume of almost $5 Trillion each day
  • The liquidity of forex is quite high
  • 24 hours markets
  • No commissions
  • Focus on currency is narrow

Stock Market

  • Volume is less with only about $200 billion each day
  • Liquidity is low
  • 8-hour markets
  • Commissions included
  • Focus over currency is wider in stocks

Based on your trading style and goals, you could opt either for forex or stocks by also taking into consideration these differences.

  • For scalping/short-term trading, forex is recommended since the task of executing positions charge you minimal amounts.
  • Medium-term trading is suitable for both stocks and forex.
  • Due to the fluctuations in direction occur more in forex, long-term trading is suitable for stocks.