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Lindsay R

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Everything posted by Lindsay R

  1. Hi Mary, Price action strategy involves speculation with everything reflected through raw price action on price charts. You have several options to take advantage of price actions. These include differing technical analysis forms, like support channels and indicators. Use these to identify price action changes. Together, these let you pick trade opportunities during enhanced volatility periods. Price action trading involves resting your trade choices on price chart movement of prices. You won’t require indicators to pinpoint a go-ahead such as support, resistance areas, and treads for you to trade. This trade-making decision discipline rests on the fact that markets create data on changes in market prices during a certain period. This data appears on price charts. Ultimately, price charts display beliefs and actions of traders eventually represented on market price charts as price action. Price action helps you avoid the mistake of trading emotionally while giving you flexibility in your decisions.
  2. Hi Earnest, Your strategy as a part-time Forex trader needs to rest on the end of day trading and analysis. Find an appropriate platform that gives you reliable daily chart time frames, especially chart time frames that most interest you. Simply put, strategize on following and analyzing charts falling in your preferred trading time frame. That way, you can capture the high-probability end of day action price setups. Success Tips Part-time Forex traders need discipline. Discipline means taking your profits the moment they materialize rather than seeking wider spreads with more significant gains. Pick the best liquid pair, depending on your trading period. Match your trading period to peak volume hours your chosen pair matches. Also, concentrate on tested currencies traded often. An example is USD/EUR, which experts recommend for neophytes and part-time traders. Take your time to plan for and pick a time frame. Next, choose the best currency pair associated with the period. Maximize success by sticking to this chosen time window. Finally, if no great opportunities arise during your time frame you have dedicated, avoid leaving or doing something else. Practice chart reviews, dedicate time for analyzing and journaling successful trades, failures, and reserve time for back testing.
  3. What is CFD news trading strategy?
  4. Are there any little-known Crypto doing well in May 2020 that may be a hidden gem and maybe even worth checking out?
  5. Hi Smith, Shopping platform Shopify has options for customers to make payments for their goods through cryptocurrencies. Among acceptable cryptos are Ethereum, Litecoin, and Bitcoin, among more than 300 other cryptos. CoinPayments To make crypto transactions more accessible and easier, Shopify has partnered with CoinPayments, a crypto payments processor. With this partnership, merchants can process over 1,800 different cryptocurrencies and reduce transaction fees. This cooperation ensures a seamless transaction process for anyone conducting business using cryptos. CoinPayments transact payments for several stable-coins, like Gemini Dollar, USD Coin, and TrueUSD. The stable-coins are more appealing to shoppers and merchants, who can rest in the knowledge that the value of their payments will not skyrocket or plummet overnight. Libra Association Shopify has also joined Facebook fronted Libra association. The association aspires to venture into underbanked markets through its Libra crypto. Shopify’s partnership with Libra targets the stable-coin enjoined to fiat currencies rather than traditional algorithm mining. The resulting stability would make Libra a better payment option when compared to volatile cryptos like Bitcoin. In addition, Shopify would have access to Facebook, WhatsApp, and Messenger membership to expand into as a market. Magento, Shopify’s top competitor, recently joined hands with the Utrust payments platform. The partnership provided Magento’s more than 250,000 merchants with access to crypto transactions. This partnership grants Adobe’s Magento a competitive challenge to Shopify since Magento taps into Adobe’s marketing, advertising, and cloud analytics. In A Nut Shell Shopify most probably does not expect crypto payments to surpass normal payment avenues in the near future. However, it would not want to lag behind on a critical technology curve. Furthermore, Cryptocurrency markets remain relatively niche areas, but they do have immense potential for growth. Should stable-coins and cryptos gain ground, recent partnerships Shopify has made would widen its competitive advantage over Adobe and other competitors.
  6. Hi Jessica, When an investor thinks of venturing into Bitcoin buying, they imagine the huge windfall they would make when they sell their coins for Sterling once the Bitcoin price peaks. The strategy is basically a buying and holding investment. Traders and investors who hold Bitcoin or any other cryptocurrency, for the long term, refer themselves as HODL’ers. The term is a Hold misspelling. HODLers use this method in investment portfolios as hedges against volatility in the market. A true believer in the cryptocurrency trade touts their purchasing and hold strategy as the real reason why Bitcoin prices remain stable. Historical bitcoin market price data reveals that if you purchase and hold Bitcoin for 1,335 days, you are guaranteed a profit. In short, you are assured of a 100% profit if you buy Bitcoin and wait 1,335 days before you dispose of your holding. Profiting from Bitcoin HODLing is a waiting game.
  7. Hi Penninah, Yes, the Federal Reserve has poured about 2 trillion into the US economy in a bid to keep US enterprises, markets, and citizens afloat amid the economic devastation wrought by coronavirus in the recent months. FED’s generosity has sparked fear and forecasts of devaluation of the dollar coupled with massive inflation. But is this likely outcome? Will the Bailout Cause Inflation and Devaluation? The US has the privilege of having the global reserve currency. This means central banks across the world hold huge US dollar reserves which they use to shore up their currencies on the forex market and to pay international debt. And because of the 'reserve currency status' of the dollar, the global commodity trade is conducted using US dollars. International traders and central banks don't keep their dollars in vaults. Instead, they use their dollar reserves to buy US Treasury bonds. By buying these bonds, they in effect lower the borrowing rates for the Treasury. Lower rates allow the US to run persistent and massive budget and trade deficits without devaluing the US dollar. Besides, in times of crisis, bond and stock investors revert to buying Treasury bonds. All these explain why the interest rates on Treasury bonds have plunged to record lows and the value of the US dollar has shot up sharply.
  8. Hi Jeremy, Before the coronavirus pandemic, the housing market was on an upward trajectory with the homebuilding industry enjoying good returns, and attracting many investors into the homebuilder ETFs. Even now, given housing is a resilient industry, it is expected to pick up momentum once the pandemic is contained. Similarly, the low-interest-rate environment, looming entry of millennial buyers and the housing market deficit signify a great future for homebuilders ETFs. Below are the top three homebuilders ETFs to invest in presently. IShares U.S. Home Construction ETF By tracking the results of the Dow Jones U.S. Select Home Construction Index, iShares U.S. Home Construction ETF gives exposure to U.S. companies manufacturing residential homes. Boosting an AUM of $1.1 billion, it is the largest ETF that tracks homebuilders. It trades in a volume of about 2.2 million shares daily and charges annual fees of 42bps. It also charges a 0.44% annual net expense ratio. Since the fund managed to stay strong after the 2007-2009 crisis, and have been generating high returns since then, it is expected to pick up the pace after the current market slump, thus worth investing in. SPDR S&P Homebuilders ETF With AUM of $811.7 million, it is the second-largest homebuilders ETF and boosts of a trading volume of about 1.8 million shares. By tracking the total return performance of its benchmark index—The S&P Homebuilders Select Industry Index—it brings exposure to the homebuilder's industry. SPDR S&P Homebuilders ETF charges annual fees of 35bps. Like the iShares ETF, it also bounced back after the 2007-2009 financial crisis and, hence, it’s expected to overcome the current economic standstill. Invesco Dynamic Building & Construction ETF With assets worth $109.1 million, the fund is the third-largest ETF and sees an average of about 15,000 shares daily. It follows the Dynamic Building & Construction Intellidex Index, where it invests about 90% of its net assets in the provided stocks. The fund also charges 0.63% in annual net expense ratio. Invesco Dynamic Building & Construction ETF—like SPDR S&P Homebuilders ETF and iShares U.S. Home Construction ETF—also managed to stay firm after the previous crisis and will likely do the same after COVID-19 pandemic.
  9. Hi guys, How are Homebuilder ETFs doing given the housing market slump?
  10. Hi Jessica, Currencies and Oil have an inherent relationship. Price action in one forces a negative or positive reaction on the other’s prices, especially in nations with big reserves. For the first time, oil futures have ventured into negative territory because of a supply surplus, coupled with a lack of enough storage space to park the excess.Due to this surplus, WTI crude made its lowest close in decades. If the world economy begins to show recovery, the current situation will be a long-term low in price. As such, the market is very volatile, with crude trade a highly risky business currently.Forex Market EffectsSharp market movements are opportunities to trade in Forex pairs exhibiting negative or positive crude oil correlations. Proficient day traders would find trading in currency pairs resting on crude oil attractive. The attractiveness rests on high volatility, creating profits through trading the swings in shorter time frames.This all means a crude oil stock market-related crash creates opportunities to be long on common crude oil Forex pairs. On the flip side, when the market finally turns positive, an opportunity for going short on crude oil Forex pairs arises.
  11. Hi there, The real estate sector is doing so badly. Is it a good time to buy real estate shares or wait it out?
  12. Lindsay R

    Blockchain

    Hi Johnson, When you think of Blockchain, picture blocks made up of growing lists of records. These blocks are interlinked through cryptography. The resulting chain of blocks has data modification resistance characteristics. The result is a permanent distributed and open ledger, recording transactions between two interested parties, without a go-between, done efficiently, and in a manner, you can easily verify. Another explanation has it that a blockchain contains several blocks. Every block records transactions of specific data. Data may be about anything, such as voting records, medical data, or cryptos. Once a block becomes complete, and you cannot add new data, it gets added to the chain, and the process to create another block begins. Information within a blockchain is available publicly, for it’s a decentralized computer system. Information goes on numerous computers distributed worldwide. No party or authority has control over this information. Every blockchain transaction automatically gets secured through acquiring a digital signature that proves its authenticity. With encryption and digital signatures, information on blockchains cannot be tampered with nor changed. In essence, blockchain technology enables participants in a network to agree through what is known as a consensus. That way, fraud, and duplication are eliminated without third-party authentication.
  13. Hi Charafath, Forex trade involves simultaneously buying one currency while selling another in the foreign exchange market using different trading strategies or systems for analysis and implementations that can maximize returns. A Forex trading system, which is either manual or automated, is based on a series of analyses to help you decide what to trade and how to do it. The system trading often relies on a set of signals obtained from important news-based events and technical analysis charting tools. Once traders choose an overall style or strategy to follow, they identify signals and inputs that should prompt a trade. The system, depending on how developed it is, sets out everything that follows after a trade is identified, that is, when to realize a profit, where to set the stops, what follow up actions to take. For a manual system, a trader looks for a signal in the computer screen, interpret his trading plan, and decide what to do. That way, the trader can develop their learning curve, sharpening their skills towards becoming a great trader. On the other hand, in the automated system, the system is taught what signals to look for and how to interpret them. The automated method, apart from reducing human error, do away with psychological and emotional aspects of trading that often lead to poor trading decisions. Additionally, reaction time when certain levels are breached is reduced. More advanced automated systems come with preloaded common strategies and signals so that you can combine different strategies with ease.
  14. Hi there, I want to engage in trading. After comparing several instruments, Forex appears the most friendly and newbie friendly.Is this true or there are hidden complications I am missing?
  15. Hi there, Now that there is a wide variety of ETFs, how do I settle on one? Similarly, how do I begin the process of trading in ETFs?
  16. Hi Penninah, This is a good question because the cost of investing in CFDs is more than just the cost of your units. The costs involved differ from trade to trade and one broker to the other. This is because there is a huge variety of CFDs given they are available for every financial asset. Below are the costs that come with trading CFDs. Spread This is the variance between the buying and selling price or the difference between the ask and bid prices. Shop around when investing in CFDs to compare the spreads given by different brokers as they may quote you a wide spread to cover the forfeited commission fee. Commission The commission is charged on CFD shares only, and it is 0.1 % or a minimum of £9 per trade. As such, when you are trading indices, treasuries instruments, forex, commodities, and cryptocurrencies, you don’t pay commission. Holding costs If you hold long CFD positions overnight, you will be charged a daily interest. This is because that is treated as an investment whereby the broker lent you money to purchase it. The charge amount is agreed beforehand at a rate allied with the London Inter-Bank Offered Rate (LIBOR). Similarly, the charge could be based on another interest rate benchmark.
  17. Lindsay R

    How do I trade CFDs

    Hi there, I would like to trade in CFDs. Much as I will get a broker,I want to know the basics so that I am not so green. This way, I will even be able to ask my broker the right questions. Can someone briefly enlighten me on what the process of trading CFDs entails.
  18. Lindsay R

    What is leverage in CFD

    Hi there, This is my second month after investing in CFDs. I have heard about leverage and I want to learn more about it from an expert. Can someone please shed some light on this.
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