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  1. Hi Melinda, Candlesticks show the four main prices levels (open, close, high, and low) for a given period, coloured according to the direction of price movement. The regularly occurring patterns from the candlesticks assist the traders in predicting the short-term price direction. Due to their ease of interpretation and superior visual appeal, candlesticks are more popular than line and bar charts. Candlesticks have three basic features as follows: The real body It shows the difference between the open and the close price for a period. They are often one solid colour, or hollow, displaying colours only on their edges. Wicks These are thin lines above and below the body showing movement above and below the open and close prices, hence indicate the intra-day highs and lows. Colours They give the direction of the market movement. A black or red body indicate price decrease. A white or green body shows price increase. The Patterns The patterns are either bullish or bearish. Bearish patterns indicates price fall, and the bullish pattern shows prices might increase. Below are some of the candlestick patterns: • Bearish evening star- The last candle in the pattern opens below the small real body of the previous day showing stalling of the buyers, then controls by the sellers. • Bearing engulfing- This is reflected by a small green real body getting engulfed by a long red real body showing sellers are taking control. • Bullish engulfing- This appears in a decline and has a short red candle next to a larger green one. Buyers are taking control, and the price could get higher. • Bearish harami- A small red real body is entirely inside the prior day’s real body, representing indecision amongst the buyers. • Bullish harami-The previous day’s large red real body engulfs a small green real body, indicating the trend is pausing.
  2. Which are the high-growth stocks that are a good investment in 2020?
  3. Hi Jeremy, The oil prices rose to an unprecedented high when the global crisis hit the world economy in 2008. 2020 has seen oil prices take a sharp decline since the measures to curb the Covid-19 pandemic took effect. While these fluctuations in oil prices are difficult to control, they play a role in economic changes, causing various consequences on world trade. As the oil prices keep changing, the terms of trades also change. The low oil price is perceived to result in economic development, while high oil cost is associated with inflation, unemployment, and low economic growth. That way, if oil price shoots, the oil-importing nations suffers from the high cost of importing the product while the oil-exporting nations get a boost in the national earnings through export income. The impacts, however, gets more pronounced when the change in oil price last longer. A drop in oil price, like in 2020, is good news for world trade because businesses incur lower operation and shipment costs. That way, the oil-importing countries, and their fuel-intensive companies experience a boom in business. High oil prices increase the production cost of businesses (such as heating, manufacturing, and transportation). With the increased production cost, businesses can pass the costs to consumers, making products and services less affordable. In general, it leads to inflation, which stagnates world trade and economic growth. High oil prices can also affect the demand and supply of none oil commodities. It can reduce supply by making production too expensive such that businesses can only create a few products. However, while the oil price still plays a role in world trade and the world economy at large, there's evidence that the economy's effects have reduced over time. Thanks to the increase in energy efficiency, improvement of monetary policy, and flexibility in labor markets.
  4. Hi Jessica, Several benefits are associated with trading a basket of cryptocurrencies, compared to say, several individual currencies. Trading in crypto indices makes it cost-effective for you to take a position in a sector. This is without actually opening a position upon an individual crypto. In other words, a position taken using a crypto index assists in spreading your risks away from single coin exposure. A crypto index consists of several cryptocurrencies that have been grouped together and weighted through market capitalization. A cryptocurrency market cap is arrived at through multiplying several units in a specific coin by the prevalent value against the pound sterling. In short, whenever the crypto value goes up, so does its market capitalization, and in tandem, the crypto index will increase. Conversely, a fall in crypto price against pound Sterling makes the crypto index value decline. Top crypto indices involve regular monitoring by brokers who make adjustments to constituent weightings when called for. Such brokerages keenly observe an index for soft or hard forks and make adjustments on the cryptos where necessary. When such adjustments occur, proficient brokerages change index divisors, ensuring no major impacts on index prices.
  5. Hi there, I would like to know what are the important trade signals for short-term traders.
  6. Hi Sophia, The world economy is already facing a 3% contraction this year. Such a slump only happened during the Great Depression. Recovery from such an economic schism is not guaranteed and could take a long time. This economic schism faces an additional danger in the form of a trade war between China and the US. Should tensions escalate, it would morph into a conflict strongly weakening the world economic recovery from the pandemic. Another danger lies in stifling critical technological innovations. Before the pandemic, economic experts warned a worsening US/China conflict stood in the way of development in super-fast 5G networks and artificial intelligence. The US wishes to stop Huawei’s collaboration with US firms, by preventing Huawei obtain or make semiconductor chips with the US-made technology and software. Another trade war between the two economic superpowers would take a big toll upon consumers and businesses. For instance, in March 2020 alone, US farmers and enterprises paid tariffs in excess of $3.9 billion due to this trade war. The Covid-19 pandemic has wreaked unparalleled havoc on US/Chinese farmers and businesses. A tariff set back is the last thing any firm would have to worry about during and after Covid-19 pandemic.
  7. Hello Sophia, For any professional cryptocurrency trader, volatility represents the heart of the market. This is because it is a measurement of oscillation in daily average prices, and it gives a precise insight into current market conditions. The anticipation of the recent bitcoin halving event had increased volatility because of the significant uncertainties it represented. Depending on individual trader analysis, prices would either dump or rally, during, and after halving. This led to a short-term spike. Once halving was over, the metric went back to previously prevailing levels. Crypto markets seem to mirror the actions of traditional markets. Therefore, fear dominates greed since, even with widespread Central Bank stimulus packages, investors tend to worry that world economies would grind to a halt due to the pandemic. A proficient trader needs to note bitcoin is a real pointer to market status. Bitcoin creates a hedge to this Central Bank interference. Bitcoin does not have circuit breakers or limit downs since it is actually a real market without a real clearing price. Bonds and stocks do not represent real markets because their prices feature manipulation and political interference.
  8. Hi Parker, Being one of the hardest-hit industries by the COVID-19, shares of airline companies have fallen over the last few months as investors leave for fear that it will take years before the industry recovers. Even though the industry has faced several crises before, none can match the current situation. But how will their stocks recover? One way to salvage the situation is by financially supporting the airline industry so that it doesn't collapse. Bailout, which many governments have promised to offer to their respective airlines as part of the economic stabilization package, will help the industry stay afloat. However little, the bailout will help the beneficiary airlines pay employees and carry out maintenance as they wait to resume normal operations. Rather than wait for the disease to be fully contained before airlines resume operations, countries should ease (or lift) the travel bans while airlines change the business model to accommodate the pandemic. They may run flights with fewer passengers or space out seats to make passengers feel safe to travel again. That way, the industry can continue to operate hence avoid going out of business. While it will take time before the airline industry recover, it should fight to stay afloat, waiting for the new normal for travel. That way, it can gain investors' trust and aid in airline stock recovery. On the bright side, things are beginning to look up with a possible resumption of international flights very soon upon the development of successful vaccines by the US and UK.
  9. Hi guys, What is your opinion on currently investing in Covered Call ETFs?
  10. Hi there, I am new in Crypto and I am trying to learn different terms. I came across double spending and I didn’t understand it at all. Can someone explain it to me in a way I can understand?
  11. Hi Jessica, Choosing the best currency pair to trade needs a careful appraisal. The choice depends on several factors such as spread, volatility, trading strategy, and the level of difficulty of forecasting the course. Euro/Dollar (EUR/USD) Being the most traded currency in the world by volume, it’s the most liquid pair in Forex, accounting for over one-third of the total volume of Forex transactions. High liquidity makes it one of the most predictable and available pairs worldwide. With so much information available on the currency and low risk associated with it, it’s the best, especially for beginners. US Dollar/British Pound (USD/GBP) This is one of the most popular currency pair, thanks to its high profitability. However, high profitability always comes with bigger risks. So, marketers here take advantage of the plenty of market analysis information available online to steer off the risks. Exotics/ Special Pairs Since your Forex trading success depends on how knowledgeable you’re in a pair, you should trade the currency from your own country (especially if it’s volatile) because you understand the economical and political issues, the major shapers of the Forex market. That way, you can make good predictions and avoid losses. That said, Brits might choose GBP with other combinations that they’re familiar with. British Pound/ Japanese Yen (GBP/JPY) Its one of the most traded pair in the foreign exchange market, attracting both newcomers and veterans in equal measure. Nicknamed “The Dragon,” the pair is highly volatile, attracting high-risk traders, thanks to its high moves in price. The large swings in the market mean traders can potentially make a kill or huge loss in this market.
  12. Hi Lopes, The Monero is the future of cryptocurrency while Bitcoin is the past. Power over Bitcoin, by Monera, arises from its privacy-focused character. Moreno masks the identity of whoever is using it much better than other better-known cryptos, and therefore beating them in rising value. The people who developed Monero have rolled out updates to Carbon Chameleon software. The updates have enhanced transaction execution and how it works with privacy networks I2P and Tor. Within the cryptocurrency and tech industries, privacy coins, and Monero in particular, have attained widespread fame due to enhanced privacy features. In the 2020s, any cryptocurrency that hopes to gain wide currency will have to work on their privacy seriously. It will no longer make any sense to broadcast each payment one makes on transparent ledgers. The endorsement comes from such top tech gurus as John MacAfee, the antivirus software developer. He has heaped loads of praise on Monero and Ethereum, one of the most valuable cryptocurrencies second only to bitcoin. MacAfee alludes Monero’s prominence to technological superiority over other cryptos. He asserts that Bitcoin was first, but it is now ancient technology. He goes ahead to give the Model T analogy that Bitcoin cannot be our future just as the Model T did not become the future of the modern-day automobile. In his view, neo-blockchains like Monero incorporate distributed apps, smart contracts, and enhanced privacy. Other areas of superiority include mining algorithm, transaction speed, network effect, fungibility, transaction fees, supply, scalability, and price. A prominent feature in privacy for Monero is Kovri. It works in a similar manner to the Tor Browser in the use of onion routing to hide user habits and locations. It even prevents anyone from detecting that the fact that you use Moreno at all. Kovri applies this feature in default, greatly enhancing your overall privacy within the networks.
  13. Hi Sarah, The Forex market hardly goes to sleep. So, proficient currency traders remain active night and day. Naturally, transaction volumes go slack in the dark. With the right strategy, traders may make profits without distractions from market noise and high volatility. Currency relevance determines logic. Take Bank of England news releases, for example, it beholds British firms to hedge future sterling purchases from overseas. In day trading, prices and market volumes go wild after opening hours. This arises from news releases that represent a window into the market influencing factors coming up after the previous closing bell. A proficient trader recognizes distinct patterns and makes quick profits. Basically, the initial 15 minutes after opening bell offer big trades of the day on initial trends. Night time FX trading, on the other hand, creates excellent scalping opportunities. Market activities are minimal. Brokerage servers suffer lower loads, reducing terminal slippages and malfunctions. Again, minimal night time market activity reduces spread expansion, saving on trader deposits. Rate of assets changes efficiently making it easy on beginners to comprehend trading principles. This way, they make successful trades without market noise distractions and economic news disruptions to worry about. Working at night is unnatural, inducing trader fatigue for many. Mistakes may result in costing you money.
  14. Hi Lindsay, Every investment has its advantages and disadvantages, most of which are dictated by market forces beyond a single person or entity’s control. Maybe we shouldn’t call Forex trading simple, though that may be true compared to some other investment vehicles. However, we can confidently say that Forex trading is made easier and friendlier by the following factors. · Forex traders can make higher profits in a short time after paying only a small amount of deposit. · Similarly, the fees and commissions involved in Forex trading are quite minimal. This is because when you trade Forex, you pay the spread and not a commission. · The most significant advantage of the Forex market is its high volatility, which makes it a great environment to trade in as volatility creates more chances to buy, sell and make ---+a gain. · The Forex market is also highly receptive as the capital requirements are low. Similarly, it’s easy to join as you simply sign up online and start trading, and you can start with a demo account. · The Forex market is one of the safest since it’s highly supervised, with their brokers having several authorities regulating them. To enjoy this benefit, though, you should only trade with regulated brokers. · Forex trading also offers growth because you can advance to an account manager when you have mastered the trade. Once in this position, you can earn commission by managing accounts in addition to your trading profits.
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