[What are the advantages of investing in a hedge fund?]

Hedge funds are a good investment objective. It will help you make a considerable amount of profits and offer you protection for your portfolio. Before dealing with any hedge fund, you have to check various elements that come with it and your investment objectives.

Some elements you need to look at are the fees that come with it, the liquidity in the fund, its transparency, and how you can achieve your objectives by implementing several strategies. It would help if you managed the challenges associated with these elements, such as less liquidity and high fees. Otherwise, it will not be a walk in the park for you to achieve your set objectives.

In some cases, you may find yourself dealing with substandard hedge funds. Such a scenario may occur due to an inadequate review of various hedge funds that exist because you do not understand well how hedge funds work. You do look beyond your risk minimization strategy.

One main advantage of a  hedge fund is that it is flexible. Their flexibility is much more than that in mutual funds. The Securities and Exchange Commission rarely focuses on these funds. The hedge funds are not publicly traded and therefore making them more flexible since no firm regulates its performance.

Hedge funds are aggressive in their investment. This key feature will help you make high profits. Some strategies you can use while investing in hedge funds are short selling, use of leverage, and derivatives.

Using the long or short selling strategy to hedge your fund, you can buy or sell the stocks that you feel are underestimated. If you use leverage, you borrow a certain amount that will supplement what you will deposit. You can make good money using this technique.

Hedge funds also allow you to diversify your portfolio, therefore reducing your risks. In hedge funds, you have a variety of investment options that you can use to make gains. While using a particular strategy, your portfolio will immediately be diversified.

A hedge also minimizes your losses. If your hedge fund gives you harmonious earnings, your portfolio will, in return, remain stable. Hedge funds are also transparent and offer you professional advice. These funds will provide you with good pay. The managers of the funds are also experienced and will guide in various matters.

The hedge may look attractive from afar, however, if you dig deep into it, you will be able to identify one or two pitfalls that will not be favorable in your trading.

[How can I hedge ETF?]

Exchange-traded funds are a better investment option for mutual funds. You can diversify your portfolio by investing in different market sectors and asset classes like bonds, currencies, and stocks.

Adopting ETF to different market sectors will allow you to decide on bullish or bearish gambles on your portfolio or hedge it to protect yourself from risks. There are different strategies that you can put in place to protect your portfolio from various threats.

Over the past years, hedging was used in other financial instruments such as futures, contracts for differences, and options. These instruments are based on a derivative. Hedging has been used in these instruments since their pricing depends on intricate mathematical formulas.

If you just began investing in ETF, hedging may not be available to you since you may be required to have large minimum requirements as your initial capital that will act as your security. Therefore if you can trade small profits that you make in ETF, you should not hesitate to trade. ETF can hedge your portfolio in many ways.

You can use options or futures to hedge your stock or bond position. The S&P 500 Index futures are actively traded and best known in the equity market. Large firms such as the mutual funds broadly use this index.

ProShares Short S&P 500 ETF move against the S&P 500, and you can use them in preference to futures contracts. Therefore, you can take a short position in the stock market, and they will be inexpensive and more liquid. Using a short equity ETF to hedge your portfolio will vary when you hedge it using futures. The strategy you use to in short equity ETF is not detailed. However, a short ETF will allow you to access and hedge your portfolio quickly.

If the prices in the stock market fall, that of the inverse fund will rise. This price increase will help minimize the losses you will get from the stocks in your portfolio. You can also hedge your ETF position using currencies.

There are many benefits that you can accrue by using ETFs to hedge your portfolio. One of them is reduced costs. However, you can face so many risks from hedging. It would help if you came up with hedging strategies before you decide to employ it.

[What advantages will I get for investing in bond ETF?]

Exchange-traded funds are nowadays becoming the comfort zone for most investors. You can assure yourself that investing in any funds in ETF; will magnify your gains, bonds ETF being one of them. Typically, ETF tend to pursue an index. You can invest in high-quality funds for either short or long term depending on your objectives, which is similar in treasuries.

Investing in bond ETF for a short period may not be viable if you aim to stay liquid in the market. You usually passively manage these bond ETF. However, if you know how to minimize losses in this market, and at the same time, increase your profits, then you can deal with the short term bond ETF.

Bond ETF come with many benefits. One of them is that this kind of ETF is highly liquid. You can trade bond ETF any time you wish throughout the day. Like stocks, Bond ETF trade on an exchange, and in a stock exchange, you can place trading positions at any time.

While trading in bond ETF, you have a variety of options to choose from. Through this, you can broadly diversify your portfolio. You can invest in low-risk treasuries short-term exchange-traded funds, or you can choose to deal with high-yield bonds. There are ETF such as WisdomTree Dreyfus Chinese Yuan and Euro Funds that you can deal with if you are looking at investing in foreign currencies.

Bond ETF will get you a coupon rate every month. This is a great advantage for them over individual bonds where this interest rate is received every six months. Another significant advantage of bond ETF is that, in cases where the underlying bond is not liquid, the bond ETF liquidity will remain. It is also easy for you to own and use bond ETF. 

Investing in any financial market that offers low costs is a plus for you. Therefore, you should consider investing in bond ETF. They usually offer low fees, and consequently, you can be able to save up some right amount from your earnings.

You will also get consistent risk characteristics in bond ETF. Therefore your liquidations, especially the partial ones, will be much easier.

These advantages in bond ETF can convince you to start dealing with them; however, there are several risks that you need to look at before you invest. By looking at both the risks and the benefits, you can make better investment strategies that will benefit your portfolio.

 

[Why should I not invest in bond ETF?]

Many significant benefits accompany bond ETF. One of them is that you will get a regular income, which is usually released in the form of coupon rates every month. Bond ETF are also broadly diversified, and they offer you low costs of investing. These ETF, however, come with various drawbacks. The good thing is that you can be able to mitigate these problems.

Bond ETF usually respond to the current interest rates, just like the individual bonds. If the prevailing interest rates are rising, the prices of bond ETF fall so that they can compete with the newly introduced interest rates. Contrarily, when the interest rates are low, the bond prices will rise.

You can perform well in individual bonds, unlike in a bond ETF, where your manager will resolve the amount of interest rate that they will undertake. Nonetheless, there are bond ETF that can give you floating-rate funds. These funds are unsusceptible to the interest rate risk. The funds also change the number of interest rates to what is currently available in the market.

Investing in bond ETF may be bootless, especially if you are a day trader and like responding quickly to various news and events that may change the market prices. This is because only a few mutual funds will allow you to reinvest your funds until the trading day closes. Bond ETF are a basket of securities that track an index. It solves the issue experienced in other bond funds by allowing you to trade your shares each time the market is open.

The passiveness in bond ETF is also a challenge. You track the performance of an index, and if the firm is large, the performance should be enormous. You look at maximizing the interest rate you will get as you minimize your risks.

To get a good manager for your funds is hard. The best of them are usually costly and what you are looking for is to minimize your costs and make additional profit. You will also find yourself paying retail prices.

[What are bond ETF?]

Bond ETF are exchange-traded funds that solely deal in bonds. Bond ETF and bond mutual funds are similar in that they have a variety of bonds meant for different techniques. You can hold both of them for a short or long period, and the main aim of dealing with them is to make profits.

Bonds exchange-traded funds trade like stock ETF on the stock exchange market; their management is also passive. Them being passively managed helps increase the stability in the market since they add liquidity when the market is not performing well.

Different from individual bonds where you sell them by over-the-counter through brokers, you can trade bond ETF the whole day from a centralized platform.

It is challenging to get a traditional bond with a favorable price. However, in bond ETF, you will probably get an attractive price for trading since they can trade on a key index such as the New York Stock Exchange.

Investing in bond ETF is an excellent opportunity to get a disclosure of the market and make it easy for you to trade.

The liquidity in bond ETF is better than that of mutual funds and individual bonds. These other bonds typically have one trading price for the whole trading day. When the market is unstable, you can trade bond ETF no matter how bad the market prices may be.

You will get interested when you invest in bond ETF that usually come in the form of a monthly dividend. In a case where you get capital gains, you will receive them in the form of annual dividends. These dividends are taken as income or capital gains during taxation. You can get bond ETF anywhere in the world.

Getting a regular interest in bond ETF is one aspect that is similar to individual bonds. This is one of the most significant benefits of bond ETF. They will pay you a coupon rate every single month, unlike there before where you would get the payment after six months from the traditional bonds. This coupon rate, however, varies from one month to another.

You trade bond ETF as their expiration date approach. The big challenge here is to effectively track the benchmark so that you will not incur so many costs. Usually, you cannot actively trade bond ETF since you have to hold them until they mature.

[What is Monetary Policy and how does it affect the stock market?]

Monetary policy is a regulatory function of the central bank to control the supply and demand of the country’s currency, which in turn influences the country’s economy. 

In the United States of America, the Federal Reserve establishes the monetary policy. The Reserve is mandated with controlling the country’s money supply and the economy.

 

By controlling the money supply, the Federal Reserve ensures that the money supply grows at a rate that does not cause excessive inflation or hamper economic growth. These measures also ensure that the country’s unemployment rate is controlled at an average national rate of around 5%.

[What are Currency Pairs?]

Currency pairs are specific currencies from two countries that are coupled for trading on the foreign exchange market place. These currencies can be traded because they each have identified exchange rates upon which the trades create a position basis. 

 

Almost all national currencies can be coupled and traded in the foreign exchange market. There are, however, certain currencies that are paired more frequently than others. 

 

 The Eurodollar is the most widely traded pairing though there are other common currencies pairs such as the US Dollar against Great Britain Pounds (USD/GBP), the US Dollar against the Japanese Yen (USD/JPY), the US dollar Against the Canadian Dollar (USD/CAD), the US Dollar against the Australian Dollar (AUD/USD), the US dollar Against the New Zealand (Dollar NZD/USD).

 

It is also important to know that there are currencies pairs that do not trade against the US dollars. These are referred to as the Cross currency pairs. The most common cross currency pair often involves the Japanese Yen and the Euro. 

[What is a Bid?]

A bid is an offer made by a speculator, merchant, or a dealer with an end goal to purchase a security, product, or money. A Bid, therefore, specifies the value the potential buyer is happy to pay, and also the amount he or she willing to buy, at the proposed cost. 

 

Also, bid refers to the cost at which a market maker is willing to purchase a security. The market marker is therefore obligated to disclose or display their asking price. Retail buyers are however not obligated to show their ask price. 

[What is the Stock Market and how does it operate?]

The Stock market is a common market place where people who wish to trade shares of publicly listed companies.

 

A company that wishes to be publicly traded must get the prerequisite registration and operational requirements to be publicly listed. Once publicly listed, the company then lists its shares on the stock exchange market.

 

The stock market, therefore, is the place where traders buy and or sell the listed company shares; a concept commonly referred to as stock trading. NASDAQ and NYSE are America's most popular and the largest stock markets so far with market capitalizations at 11 trillion and 31 trillion US dollars respectively.

[What are thinly traded securities?]

Thinly traded securities are those whose prices are unstable such that one cannot easily sell or exchange them for cash without causing significant fluctuations in their prices.  

 

These securities have significantly higher liquidity risk. Because of price volatility, thinly traded securities are mostly exchanged in low volumes with very little to no liquidity. 

 

The other characteristic of thinly traded securities is the fact that they exist outside the national stock exchanges.

 

Thinly traded securities are also always associated with companies listed on over-the-counter exchanges and so they lack ready buyers and sellers leading to the other challenge of a significantly large gap between the asking price and the bidding prices.

Furthermore, price volatility makes thinly traded securities riskier compared to liquid assets.

[What are some of the most common mistakes I should be aware of as a day trading Beginner?]

Day trading has its ups and downs especially as a beginner, day trading can be very rewarding if carefully planned and well-executed. However, many times, day-trading beginners fall victim to simple mistakes and ending up making unnecessary losses and to a great extent quitting stocks trading.

 

While day trading comes with certain level unpredictability, here are some of the rookie mistakes you can avoid as day trading beginner.

 

Lack of adequate knowledge and practice: As a beginner, it can be very easy to fall victim to this mistake when you venture into actual stocks trading without investing enough time and effort to expand your knowledge and skills about day trading, how it works and how to make the best of it.

 

There are a number of material resources you can explore as a beginner to avoid this mistake. You can start by reading books, watching videos tutorials, and listening to other stocks related webinars about trading.

 

Watching video tutorials and reading books alone does not shield you from making other mistakes. The next best step after acquiring the knowledge is to practice. As a beginner, you are advised to practice extensively with simulated trading accounts to develop and solidify your trading skills and expertise before staking any real money in day trading.

 

Panic Buying: This is the second most common mistake day trading beginners make. Momentum trading can be very profitable for traders who are able to identify and trade in hot stocks when the prices are still high and stable. Beginners find themselves fixated in trading stocks that have had the biggest runs

 

However, as beginner, you may find yourself panic buying these hot stocks hoping to make significant returns only for the momentum stocks to stalk and fall take along all your money with it. This is a mistake you need to be on the lookout for and easily avoid.

 

Overconfidence: The other mistake and a big risk is the issue of making too big and overconfident bets too soon as a day trader. If you find your self-making too big and overconfident bets too soon, you will most certainly lose most or even all of your money.

 

Being a beginner with limited experience, steer clear of making fast outsized stock trading bets. The rule of thumbs in day trading has always been; “ do not risk more than you can afford to lose.” Making big oversized stock trading bets makes you a gambler rather than a trader. As a day trader, keep it small and consistent, 100 shares or less and you will be fine and comfortable.

 

Using too many technical indicators: Please note, indicators cannot lead you to that Holy Grail you are hoping for. The next common mistake rookie day traders make is that they start with the conviction that the more the indicators they use, the better their prospects.

 

That belief is not true. Using too many indicators only makes the process confusing and distracting and maybe a limitation because you cannot focus on the aspects of day trading that count and that is always the market as it is.

 

On the contrary as a day trader, your focus should always be on the market trends and remember, the fewer indicators you use, the better. You can choose one or two indicators that you have been experimented with and have proven to work best for you. A good example can be the volume-weighted average price (VWAP) or the New York Stock Exchange Tick.

 

Overtrading: Another common mistake day trading beginners make; they buy dozens of stocks as long as the stocks are moving up with anticipation that they will make a quick profit.

 

You do this as a beginner and you are up for a financial disaster.

Instead of hoping to make quick bucks, just opt to trade in one or two stocks every day and keep doing that consistently; that is what professional traders do. Trade less but more accurately.

 

Selling your winners too soon or Too late: Part of a successful day trading routine involves managing your winning positions and this can sometimes be complex and challenging to a beginner. You may find yourself feeling too impatient and selling your winners too early and hence missing out on potentially larger profits.

 

 

The opposite is even worse; you hold onto your winners for far too long hoping to make an even larger profit until the profitable position plunges to zero. To avoid this mistake, always plan out in advance and set out your limits for when to sell and stick to that plan.

 

Holding losers too long: As a trader, knowing when to let go of losers is a tricky affair. It takes skill, knowledge, and experience acquired over time to be able to navigate your way through day trading. You sell too quickly, you miss out on profits, on the other hand, you sell too late, and you make significant losses.

 

A common mistake beginners make is that they often hold on to losers for too long with the hope that there will be the next turn around but often, this leads to big losses by the time you decide to let go.

 

A point to always remember; once you notice that the loser is not likely to make a turnaround before the markets close just sell and wait to trade the following day. You are trading, not investing and so, must always be on the lookout not to hold losers too long.

 

In conclusion, day trading is complex but also very simple if you take your time and know your craft. Before playing at least take out enough time to learn how to up your odds by looking out and avoiding these common mistakes.

[What are the Risks of Trading low-Volume stocks?]

Low volume stocks are stocks that have an average daily trading volume of not more than 1000 shares. Low volume stocks are usually associated with smaller companies that are trading on the over the counter stock exchanges though there are a few that are also traded on the major stock exchanges.

 

Most low-volume stocks are thinly traded and therefore are known to trade irregularly at significantly low volumes. There are several risks associated with low volume stocks that you should know about as an investor, before deciding to trade. Here are some of the noteworthy risks associated with trading low-volume stocks.

 

Firstly, there is the risk of trading difficulties due to low liquidity. Low-volume stocks lack liquidity, which is the ability to buy or sell the security in the stock market at any time without significant changes in market prices. Low liquidity leads to a high bid-ask spread thereby increasing the probability of losing money. 

 

Second, low-volume stocks come with unpredictable stock returns. These stocks are associated with small companies whose stocks are traded on over the counter exchanges where they are not obligated to maintain certain minimum requirements like full closure of necessary information to investors.

 

Thirdly, low-trading volume stocks are often an indication of trouble for the respective company; signaling that there is possible deterioration in company reputation. Deteriorating company reputation negatively impacts the company’s stock’s returns thereby imply a higher risk of loosing for the investors.

 

Fourth, trading low-volume stocks significantly expose you to fraud and stock marketing misconduct. Trading low-volume stocks expose you to dishonest stockbrokers and salespersons that may exploit you by claiming to have certain insider information and lying to you about prospects of high returns, which will never materialize at the end of the day. 

 

Fifth, trading low-volume stocks make you targeted prey for pump-and-dump-scams. Certain company promoters may use insider information about a company’s valuations to periodically artificially inflate prices and offload their shareholdings to unsuspecting investors who later lose their investments when the stock prices later plummet.

 

In conclusion, Low volume stocks are not always traded in good faith. The low liquidity makes them difficult to dispose of and they are also susceptible to legal or illegal stock manipulation and other forms of stock market fraud. Traders or investors are advised to always exercise caution and conduct prior due diligence before purchasing low-volume stocks.

[What is an Interdealer quotation system?]

This is a system or rather a platform that is used to organize and disseminate price quotes as well as other relevant information about the stock market. They are usually aimed at giving out timely, accurate, and relevant information to the investors so that they can conveniently make investment decisions.

 

Also, the interdealer quotation system functions by integrating the different price quotations of different exchanges into one accessible platform.

 

Through the centralized system created by IQS, investors can access security price quotations in one place rather than being forced to monitors several separate exchanges. 

Interdealer Quotation System, therefore, promotes and safeguards the liquidity and accessibility of the respective financial markets.

 

Moreover, the Interdealer quotation system also benefits the investors by ensuring there is a higher level of regulatory oversight. For example, broker-dealers are expected to make sure they have qualified market makers who operate strictly based on the rules and provisions of the financial industry regulatory Authority (FINA). 

[What are the pink Sheets?]

Pink sheets got their meaning from the pink color of the pieces of paper where the quotes of share prices were being indicated. Hence, pink sheets are a listing service for securities that trade via the over-the-counter exchanges. The companies that trade via pink sheets are not listed on the renowned foreign exchanges like the New York Stock Exchange or London Stock Exchange. 

 

Pink Sheets are usually small penny stocks that are bought or sold over-the-counter at prices less than five dollars.

 

Trading pink sheets are therefore considered risky because of their inherent lack of liquidity as well as less regulatory oversight leaving the traders vulnerable to fraud and exploitation. 

[What are the benefits of Stock Exchange Listing?]

Large companies are said to be publicly listed because their shares are traded in the stock exchange market. The majority of entrepreneurs who start-up businesses always have the goal of getting their companies listed especially in the top reputed stock exchange markets like the New York Stock Exchange, London Stock Exchange, NASDAQ among others.

 

Stock exchange listing is a significant determiner of the success of many large companies that we know today like Facebook, Amazon, Tesla, SpaceX, Apple, Google, Microsoft, and Netflix, etc. The importance of stock Exchange Listing for any company can be attributed to some of its benefits including:

 

Liquidity: Stock Exchange listing creates ready liquidity for a company’s shares, which can easily be bought or sold at a profit. When a company’s shares are listed in the stock exchange listing, it means more sellers and buyers can freely access the shares to sell or buy at any time and that is what creates liquidity.

 

Financing: Companies benefit from stock exchange listing by increasing their capacity to raise funds. When people buy a company’s share, it gets the needed financing to run operations, expand its reach, and sustain competitive advantages. When a company is publicly listed, it can raise more money by issuing more shares to be bought and sold in the stock markets where it is listed.

 

Access to best talents: Companies that are listed in the stock market can set up stock options plans, which give the company a strategic advantage for attracting and getting the top talents as their employees.

 

Market Visibility: Stock exchange listing also boosts a company’s market visibility. Stock exchange listing means that the company is publicly traded and therefore accessible and known to the public majority. This visibility not only drives up share price but also helps improve and sustain brand equity.

[What is an Exchange?]

An exchange can be described as a market place in which securities, commodities, derivatives, and other financial elements are exchanged or traded. 

Exchange is therefore credited with the role of ensuring fair and orderly trading and the reliable communication and relay of information about the prices for the securities trading on the respective exchange. 

 

Previously, an exchange was a physical location where traders converge and transact businesses but the advent of technology is fast replacing physical exchange locations with online-based electronic exchange platforms.

 

Some of the most popular exchanges include the New York Stock Exchange (NYSE), NASDAQ, the London Stock exchange 9LSE) and the Tokyo Stock Exchange (TSE)

The most significant benefit created by having a stock exchange is the ease of access to top capital. Companies seeking to scale up operations raise money by selling their shares to investors through the exchange market.

 

Companies who wish to raise capital through an exchange get to do so through the first sale of a formerly privately owned company to the public through an initial public offering (IPO).

 

Additionally, companies listed on a major exchange become increasingly visible to the public. This exposure enables these companies to attract investors, potential and talented employees who are skilled and able to carry forward the mission and vision of the company by performing their duties exemplary.

An exchange creates an environment where investors get to buy the company’s shares but they do not have control over the company. Their rights have a restriction. Companies listed on an exchange.

 

On the other hand, companies that are not listed in exchange will often rely on venture capitalists for investment capital. The downside to this approach is the inherent loss of organizational control. Companies that have a vision of expansion and long-term success are therefore encouraged to register with reliable and known exchanges.

[What Risks are associated with thinly traded Securities?]

Even though thinly traded securities don’t automatically translate into bad investment choices, they carry significantly greater risks.

 

For example, investors who own thinly traded securities sometimes have to take on losses whenever they have to sell quickly since there are no readily willing buyers. Because of a lack of reliable supply of willing buyers, sometimes an investor may not be able to sell at all and hence the stock prices are too volatile and very risky.

 

Furthermore, most traders do not go for thinly traded securities because of the lack of liquidity and also the fact that it is very challenging to buy and sell thinly traded stocks without stirring up other market participants thereby moving the stock price.

[Why is ETF more tax-efficient?]

Hello Carlyn,
Unlike other mutual funds, Exchange-traded funds tend to be more tax-efficient. Normally ETF will give rise to reduced tax liabilities when you are holding them in a taxable account. This is a different case when mutual funds are held in a similar account.
Even though ETF and mutual funds are usually taxed the same way, ETF is designed in a way that the taxes from it are less.
In-kind benefits are one reason why ETF are tax-efficient. This is where investors can redeem the shares they desire to sell in kind. This helps avoid cash sales, thus reducing the tax impact.
ETF also save and come up with units without them being taxable instruments. This enables long-term investors to have few capital gains, thus making them tax efficient. 

[How can I manage my risks in CFD trading?]

Hello Carlyn, 
CFDs being leveraged products, its risks are usually greater. And like any other financial product, it has its own risks. For example, if the market does not favor you, then you will make a loss.
For you to prosper well in such a market, then you need to come up with strategies on how you will manage your risk. Those who do not formulate such plans will find it hard to maintain profits in their accounts.
One risk management plan you can incorporate is a stop-loss order that permits you to select the amount in terms of points that are required and which you are ready to risk during your trade. Such will fight off whichever loss that you will suffer over your set price point.
You also need to evolve a trading plan and hang in with it. A trading plan will help you know what you want to achieve by the end of that trading.
If you are just a beginner in such markets that involve leveraged products, then you should trade in small sizes. By this, you will be building your understanding and skills in such markets.
Also, know the markets you desire to exploit. Make sure you recognize the factors that affect the various markets so you can foot your strategies in the one that suits you best.
How you manage your risks should depend on what your financial goals are, your nature, and how brave you are in such markets. Always map out what risk you are willing to take prior to commencing any trade.

[How can I make money with my cryptocurrency?]

Hello Carlyn,
You have your cryptocurrency lets say Bitcoin, and you are wondering how it will benefit you. Cryptocurrencies, if used wisely, can be a vehicle to your success. You can make immense profits from it. However, you need to understand how well to involve yourself in this process and not fall into fraudsters pit traps.
One prudent way to make money is by buying and holding. You can do this by buying a satisfying cryptocurrency that has a basic use and hold them up until they acquire an equitable market share.
You can also stake cryptocurrencies. By staking, you obtain the double welfare of the price valuing for possessing good crypto bits in addition to dividends for holding up the coins.
You can buy and hold digital currencies that will help you earn dividends. There are a number of great cryptos that will earn you a significant amount for holding them.
These are just but a few ways in which cryptos can earn you money. However, you should be alert of many scammers who will promise you a lot adversely, and you end up losing way much more.

[Does CFD affect stock prices?]

Hello Carlyn, 
A contract for Difference is an unoriginal contact between you and the provider where you are paid for the price difference. CFDs counter the changes in stock prices since they are tools that are established from stock values.
Since CFD is usually priced based on the underlying share, any movement in the price share will affect the attached price of the CFD.
However, if there is a significant amount of interest in CFD, then this can affect the stock price. It will do so since it will influence the practical feature of the stock, therefore, adjusting its give and take characteristics.
CFDs carry significant positions in the markets, and they need to be revealed so that they can be tracked by other people. This should help to calculate the spot in any prospective buyer.

[Are cryptocurrencies a scam?]

Hello Linah,
Cryptocurrencies are the digitization of value. However, this value is not promoted by the government of a state or its central bank. Cryptocurrencies can be used to purchase various products, and they can be converted to other currencies. 
Bitcoin, for example, being one of the most used cryptocurrency can help a smart investor make a good profit. But the urge to become rich so fast can blind you to some of the risks involved in it and therefore fall into scams.
So the answer is yes, most of these cryptocurrencies are scams. Like any other field which allures a significant amount of money, it will also attract a good number of fraudsters.
For example, you may receive a message that a well-known business tycoon is minting some good amount of money into some cybercash. Once you are attracted to such and end up committing the amount of money required then, these scammers sell what they have, and the currency falls in value.
Others run nonexistent platforms where you are lured into investing in these cryptocurrencies, convincing you that you will get a significant amount of returns, which is all a lie.
Therefore be careful with who and where you are investing your digital money.
 

[What is going long in CFD trading?]

Hello Carlyn, 
CFD trading gives you an opportunity to gamble on when the market prices will go up or down. And through this, you can decide on what step you will take. You can either go short or long. Let's look at what will happen when you decide on the latter.
Going long simply means that you will buy a CFD place in the market so that you can gain when the prices in the shares increase. As stated before, you are just hoping that the value of a certain asset is going to increase, and if it does, then you will make a profit.
A good thing with going long is that you need not have enough amount of money in order to purchase the asset that you are dealing with.
However, you need to carefully study the market to avoid making a loss when you decide to make this decision.

[Is Bitcoin and Bitcoin cash the same?]

Hello Carlyn, 
One popularly used cryptocurrency is the Bitcoin. Bitcoin usually does not have a central bank and, therefore, decentralized. It is also a digital currency. 
Bitcoin cash, usually referred this way since it employs the native Bitcoin Cash client, is also a cryptocurrency which allows more transactions to be prepared by increasing the magnitude of blocks.
Bitcoin was designated for everyday transactions from one acquaintance to another.
 All through, Bitcoin’s price spill is, therefore, ending up being used for investment rather than for transaction purposes. Its time for confirmation, and the transaction fees also cascaded. 
Since blocks could not manage the increased size for transactions, Bitcoin Cash was established to rectify the situation.
They did so by enlarging the sizes of the blocks. Bitcoin Cash is also different from Bitcoin as it does not subsume segregated witnesses.
However, there are ways in which these two are similar.

[What ETF trading strategies can I place?]

Hello Jovan,
As an upcoming investor with ETF, you are less aware of what to do with this platform to get profit. Exchange-traded funds, with significant benefits such as portfolio diversification, is a perfect investment option.
For you to select a good ETF strategy, then you need to know your needs, strengths, and weaknesses, and from there, choose a method that will suit you best.
One of these techniques is by selecting the best platform for you. You know your needs; you know your weaknesses and strengths. If you are not an expert in this niche, say a beginner, then go for the one which is easy to use and understand.
You need to know what you want. The rule of the thumb in any undertaking lets say businesswise or in academics is to set goals. Know the areas where you are going to take risks from and what you want to achieve from that. 
Since you can depend on dividends by buying the correct stocks, then why not go for them. Rewards will provide you with a steady income, and its prices hardly fluctuate, unlike stocks. This is a good technique, especially for new traders.
For your strategies to work out well then, first weigh yourself down and know what you want from ETFs. Good luck!