Jump to content


  • Posts

  • Joined

  • Last visited

Everything posted by Levis

  1. Hi Danny, Scalping is a risky process for any investor. More so, if you do not know when and how to scalp. As a prospective investor, you should be ready to stay glued to your screen all through the scalping session and concentrate well so that you can trade at a time you see its best. As you prepare to become a scalper, It would be best if you can access the market makers easily. The broker you choose should also allow quick trading. The Forex market is decentralized; therefore, you are responsible for the broker you choose and the risks that will come with it. You need to know the responsibilities you and your broker have. Understand what the broker is offering and the circumstances that may lead to your liquidation. You also need to ensure the execution levels of your trade. Understand the terms you set with your broker, especially on when they will place your trade. Also, you should be able to enter and exit the market in various ways. From this, you can protect yourself from a significant risk you may face. You must get to know the best sessions that you can trade and what currency pairs to sell during a particular session. Some currency pairs trade better in a certain trading session than others. The trading volume for specific currency pairs also depends on a certain trading session. Please learn how to check the charts and market signals to know the best time to place a trade before you begin scalping.
  2. Hello Danny, Stock is the most popular trade instrument in the financial exchange market. Other financial instruments such as exchange-traded funds are on the rise and are becoming popular amongst the investors. Stocks and ETF have several similar characteristics, and they are the most used financial assets in the market. Stocks are the company's shares, where the ownership of the shares is divided amongst the company members. The stock price in the market will depend on the agreement between the buyer and the seller. Its price will also depend on the demand and supply of the stock. An ETF, on the other hand, comprises many securities at a certain exchange. The fees that ETF charges are fewer broker fees and expenses than what is incurred while trading in stocks. The transaction fees however, charged in an ETF are usually high. However, this fee may seem low, especially to the investor who wants to invest for a long time. In ETF, you have a variety of securities to choose from before you invest; hence your risk chances are diversified. In stocks, however, there is no diversification, therefore higher risk chances. Investing in ETF requires a less amount compared to stock investing. Also, in Exchange-traded funds, you require a professional that will help you build your portfolio. It is not usually the case in stocks since you need to research a lot to create an excellent portfolio. You can invest in both financial instruments at the same time. You need to weigh the options in each in and select the best when you want to specialize in one.
  3. Hi Danny, CFD and Forex trading carry along with similar characteristics. They trade in almost a similar way such that in both cases, investors have the flexibility to enter and leave the market depending on varying market prices. They trade on the same platform and use the same charts and prices to execute their trade. Forex and CFD markets carry their transactions online, and their trades are carried out Over-the-counter (OTC). Trading from Over-the-Counter or off-exchange means that a trade takes place directly between two parties without the supervision of a central exchange. Contrarily to other financial exchanges, CFD and Forex exchanges only incur spreads as their trading cost. The spread is the deviation from the opening price and the closing price. The trades of both CFD and Forex take place from a connection of various banks. While trading in either CFD and Forex, you have access to margin. When you are given margin, you are will only contribute a fraction of the full amount required as your deposit, and the broker will 'lend' you the rest amount. The main similarity between these two is that you do not own the underlying asset you are trading. When you buy an asset, you will not possess it; rather, you will be speculating on the changes in the price and therefore decide on whether you will buy or sell the asset depending on how the price moves. Depending on what your market strategies are, you get to choose the one that suits your objectives. However, you can opt to invest in both of them.
  4. Hi Myles, The period you choose to conduct scalping will depend on the trading technique you decide to employ. You may choose to follow a specific direction in a highly volatile or directionless method when the markets are rough in scalping. You choose what you prefer best. You can combine both directional and non-directional technique as long as the method you choose brings you profit. 7:00 to 8:00 am a good scalping time, especially for those who prefer choppy conditions. The European markets face choppy conditions at such a time since the New York market is about to open. Between 8:00 to 10:00 am, London, Frankfurt, and New York markets are open. There is important news being released; therefore, the market at this time is highly volatile—scalpers who prefer following a specific direction while scalping may scalp at this period. 3:00 to 7:00 pm is another good time for scalping. Many U.S. banks are usually open from 3 pm to 5 pm, but they close as the day goes by. From 5 pm to 7 pm, most major markets have shut down, and it is the best time to trade if you prefer a quiet and slow-moving market. 3 to 5 pm is best suited for scalpers who like market volatility to make a profit. There is no specific best time for scalping. It all depends on the trading strategies you employ and willing to use.
  5. Hello Myles, Scalping is one trading style that a trader can use to generate profit. The profit or the loss you will make will highly depend on the degree of volatility in a currency pair. You need to evaluate the features in a currency pair and the pros and cons of using it before selecting it as your scalping currency. One good currency pair you can use for scalping is the Euro/USD and the pound and the USD These two currencies have low spreads and are highly liquid. They are also the most used currencies in the world. They are allowed in various Forex trading strategies, such as scalping. The Euro and the U.S. Dollar will help you generate a good profit while you are scalping. CAD/USD and AUD/USD are other good currency pairs for scalping. Scalping using these currencies is mostly suited during the night. Most often, only the professionals trade using this currency pair. You can also use the Japanese Yen for scalping in a Forex market. The Japanese Yen can be paired with the Euro, the British Pound, and the U.S. Dollar. Other than pairing it with the USD, the other pairs are cross-rates if the market volatility increases, and there is a great change in the prices. The high volatility can enable you to make more transactions that will increase your profit.
  6. Hello Myles, Also known as an inverse or a bear ETF, a short ETF is an exchange-traded fund that aims at giving back the reverse performance of a benchmark. Short ETF employ imitative methods together with other different techniques to come up with everyday performances that are contrary to the index. Reverse ETF may have a different connection with their benchmark. Some short ETF are prone to leverage hence used to enhance the opposite performance of an index. Both inverse and leveraged ETFs equilibrate their investment techniques daily so that they can keep a stable leverage ratio. In short, ETF, an investor will benefit if the price of the benchmark falls. Like any other type of an ETF, inverse ETF are a risky form of investment and are not suitable, especially if you are into long-term investing. You will most probably not make a profit when you invest them for a very long time since they are mostly meant to be used for a short period.
  7. Hi Myles, You need an excellent strategy to conduct your trading where you are just beginning to deal with cryptocurrencies, or you have been in this field for quite some time. Your trading strategy should also help you minimize the chances of making losses. Cryptocurrencies have become popular over the years. Owning a cryptocurrency currently has also been made easier. However, before you start dealing with any cryptocurrency, there are some factors that you need to consider. You need to know the volume of trade of a certain cryptocurrency. When a digital currency trades in large quantities daily, it means that it is easy for you to buy trade the crypto. The large trading volume means that the cryptocurrency is highly liquid; therefore, you need not struggle to trade the currency. You need to develop a good trading plan and stick to it. Please do not trade a cryptocurrency for a price lower than you have set. Your plan should include your actions in case a trade fails to happen according to your expectations. One action you can take is by implementing a stop-loss order. A stop-loss order will protect you from making notable losses when you sell your crypto at a price lower than what you had intended. It would be best if you also considered how you would store your crypto. It would be best to evaluate various methods and go for the one that can guarantee the top security of your cryptocurrency. Market capitalization (market cap) is another thing you need to consider before buying a cryptocurrency. Market cap shows the number of cryptos available in a certain company. It also shows you the risks prone to a certain cryptocurrency.
  8. Hi Ryan, A guaranteed stop-loss order (GSLO) works similarly to a stop-loss order. However, in guaranteed stop-loss order, regardless of how volatile the market is, you are assured that they will close the market for you at the price that you will specify. A guaranteed stop-loss order helps to minimize the losses that you will get while trading in CFDs. GLSO is mostly useful in a highly volatile market where the prices are dynamic, and at a particular time, they suddenly change. In guaranteed stop-loss orders, you are required to pay a premium, unlike other stop-loss orders such as the trailing stop-loss order. Guaranteed stop-loss orders charge a bonus since the broker may not sell an asset at a price given. This helps to cover the broker against losses. GLSO's are most useful when you are trading share CFD on leverage. Share CFD are prone to slippage; hence GLSO's come in handy to minimize the high risk of losses.
  9. Hello Komu, Exchange-traded funds come in various varieties, and therefore you have the advantage of evaluating each of them and choosing the best. ETF being highly diversified and incurring low costs are some of the reasons that attract investors. Passive investing is popular among investors. The initial aim of passing investing was to issue a security that mimics an index. Its trades were also meant to be intraday. Passively managed ETF are also traditionally managed ETF. Intraday trading means that you need to buy or sell all the bonds that constitute the whole market using one trade. Intraday trading favors the traders who are active throughout the trading day but poses an inconvenience to those who opt to buy and stick with a position for some time. Active exchange-traded funds aim at outperforming their index by taking advantage of the services offered by a portfolio manager. The portfolio manager will set aside his authority to diverge from the index by changing the sector-level structure of the portfolio. In actively managed ETF, the essential index is placed at a unique position as against the benchmark. You can trade active ETF all through the trading day, and they are also easily accessible.
  10. Hello Ryan, Both day traders and swing traders aim to make a profit by investing their stocks for a short period. In day trading, you make many trades within a single day, depending on the market trends. A day trader mainly aims to make a small profit by placing many trades and controlling losses from the exchanges that may not make a profit. In day trading, an investor does not hold a market position overnight. In swing trading, an investor identifies the changes in stock prices and other commodities taking place within a certain period. A swing trader needs not to be in the screen throughout the day. The positions that an investor will hold may last two days to several weeks. Swing traders are bound to make many losses as against day traders since they hold a market position for an extended period. Day trading is best for investors who love trading as their full-time jobs. However, for you to succeed here, you need to learn how to analyze the market effectively. You also need to be patient and control your emotions as day trading can be overwhelming at times. In swing trading, you do not need certain traits for you to be successful. It is best suited for individuals who trade as part-time ventures; therefore, you need not spend so much time on your screens. Any trading style may result in losses. What is most needed to succeed is how well you can study a market trend before you trade.
  11. Hello Cedric, Scalping is a form of trading whereby the Forex trader purchases a currency pair and stays with it for quite some time to make a profit. An investor who performs scalping is known as a scalper. Scalpers aim to place many trades at a time looking to benefit from small price movements, which often occur throughout the trading day. By scalping, an investor intends to make a small profit from each trade they place. These profits can however, be enhanced by diversifying one's market position. In Forex, the scalpers will open and close numerous positions and hold them for a short time in a single day. They also make use of leverage, which helps them hold long positions so that if the price changes slightly, they will make a good profit. Scalping techniques can be manual whereby a trader stays glued to the screen checking the market signals so that they can decide on whether to buy or sell In an automated system, programs are employed that tell the trading software on the best time to buy or sell.
  12. Hello Danny, Swing trading is not ideal for investors who want to hold a market position for long. It is often used by investors who make a living within a short period. Swing trading typically takes place between 2 days to several weeks. Swing trading attempts to spot current stocks in the market whose prices are rapidly rising within a short period. The trader will purchase the merchandise as the price increases and exits the market before the price drops. One advantage of swing trading is that you will focus on the market trends for a short time, usually easy. Your focus will be based on a small area so that you can get the market information you need. Swing trading typically takes place within a short period. You will, therefore, quickly know if your trading strategy is successful. In trading, you do not have to wait for so long so that you can earn. Within several weeks, you will know how much you have earned, and therefore you can plan on your next investment. You do not have to be consistently glued to the screens to track the market trends. Swing trading is suitable for part-time investors, and it helps save time. Once you learn how to analyze the market, it will save you a lot of time while identifying a certain trend to place your trade. Another key benefit of swing trading is that it will help you minimize your risk. Placing a few trades per week is one way that can help you minimize your risk. Swing trading offers you that advantage.
  13. Hello Komu, Crypto wallets are used to store digital currencies. Before you trade and cryptocurrency or purchase one, an understanding of how a cryptocurrency wallet works and what it entails are important. A crypto wallet typically has a private key and a public address. A holder of the cryptocurrency will use this key to gain access to their wallet. Incase this private key is taken by someone who is not the owner, then the fund that it may be containing may end up disappearing. On the other hand, a public address usually provided in terms of a Quick Response code, and in some cases as a text is given to other crypto users so that they can receive funds. Since a cryptocurrency wallet allows the holder to be their own bank, this allows you to be in charge of the safety of your capital. A crypto wallet will also allow you to interact with various cryptographic ledger as well as keep track of your balance. A cryptocurrency wallet may either be hot or cold. A hot crypto wallet is easy to access and is usually linked with the internet. In a cold wallet, you keep your funds away from the internet. However, you can access those funds at your convenience even though nobody can transfer those funds out of the wallet.
  14. Levis

    How can I buy Bitcoin?

    Hello Komu, Bitcoin is one of the most used cryptocurrency. It is accepted in most countries across the world, and it has a large number of people who are still learning ways on how to use it. Before you get to know how you can use it, you need to know where to buy it and the method you will use to store it. However, before you buy any Bitcoin, you need to consider investing in a Bitcoin wallet. Go ahead and structure an account for you where you will be receiving your payments and also select the method that you prefer to be paid with. You are now good enough to purchase some Bitcoin. The various exchange platform will give you information on how many Bitcoin you can get with a certain amount of money. Bitcoin prices are so volatile, and therefore most times, you will end up buying just a few of them at a time no matter how wealthy you are.
  15. Hello Cedric, Cryptocurrencies have become so popular over the past years. Also, know as digital currencies, you cannot hold or see them. Unlike other traditional currencies, neither the government nor the banks control it. You can use them, however, to purchase products, and others use them as a form of investment. You can also exchange them with conventional currencies. Cryptocurrencies are treated as properties, and therefore people must pay taxes for them. A gain or loss is usually taken into consideration anytime there is an exchange of a cryptocurrency for real money. This also applies when the cryptocurrency is used to purchase or sell a product. To acknowledge these gains and losses, you need to consider the transaction kind that has taken place and the amount of time taken for holding this position.
  16. Hello Cedric, Once you comprehend what CFDs are, what revolves around them, and how they work, then it will be easy for you to maneuver through this trading field. You, therefore, need to understand the pros and cons of CFDs before you start trading them. First and foremost, you need to understand what CFDs are. CFDs are instruments of trade that speculate the movement of a certain underlying asset without necessarily owning the asset. They may include commodities, cryptocurrencies, or shares. It is basically a contract between two people for the purposes of settling the difference between the starting and closing price of a CFD tool. You also need to understand what is going long and short in CFD trading. You go long (buy ) when you speculate that the price of a certain instrument will increase, and you go short(sell) when you gamble that the price of an instrument will fall. Understanding what margins and leverage are is also essential while trading CFDs, One of the advantages of trading CFDs is that you can increase your leverage, and CFDs also provide a variety of trading instruments that you can deal with. A disadvantage of dealing with CFDs is that you are most likely to lose more than what you invest.
  17. Hello Danny, The chief foundation in your investment journey is the trading platform you choose to work with. It is, therefore, crucial for you to select the platform that will offer you the attributes you require and at a reasonable fee. As a serious CFD trader, the platform you work with will be so important for you to succeed in this trade. You need to know what you are willing to trade so that you can select a platform with the instruments that match your desires. Understand your specific needs; this will make sure that you are not only dealing with a platform that will cater to those needs, but it also reduces the fee you will incur. It will also be simple to use this platform. You also need to evaluate the costs that you will be incurring while trading and establish whether they are significant for you to be able to trade efficiently or whether your broker is just ripping you off. For you to choose the trading platform you need, check out what you want from that trading platform, check whether their fees are worth it and if the platform makes you happy, then go for it.
  18. Levis

    Can a CFD expire?

    Hello Cedric, At an expiry date during a trade, your position in the market will spontaneously close. A trader will, therefore, make a decision on what they will do with their open position before the set expiration date. Depending on the tools they are using, they may decide to automatically close it or wait for it to expire. Some financial products have an expiry date, while others lack the expiry date. CFDs, in particular, do not have the expiry date unless they are futures CFDs. You get to trade CFDs on a margin; therefore, the cost that the underlying asset will incur is borrowed, and you will pay interest for it every day. Therefore you should not consider holding CFD for a long time. However, since CFDs lack an expiry date, you can carry them for both long and short term periods as long as you are able to finance that position. Therefore, even though CFDs do not expire, it is advisable you hold them for short term positions.
  19. Hello Danny, Exotic currencies are the more infrequent ones in the Forex market. Probably only a few people talk about them, and you hardly hear about them. These currencies are more prone to changes, and they possibly frighten most investors. These currencies however, provide excellent chances in the Forex market. One reason why they give great opportunities in such markets typically compliant. If there is blow up in any support from them, then you have the chance to apply the succeeding degree of support for an extreme chance target. This is different for the major currencies that are carted off due to various market forces. Exotic currencies also are highly mobile, a good reason why you should deal with them. You will most likely make a profit from such a moving currency pair. It is also fun trading exotic currencies. They help break the monotony of trading the normally known currencies. So yes, you can trade exotic currencies in a foreign exchange market.
  20. Hello Cedric, A Forex market operates for 6 days a week each day for 24 hours across numerous time stretches. The Forex traders typically exchange currency for one particular country with that of another. Investors can utilize different mechanisms to point out a certain trend and which one to use in this financial market. For a trend to occur, then the price of a particular currency pair should be moving in a certain direction at a go. However, this direction may change at any given time. Therefore this makes it hard for any investor to be sure of a certain market trend. There are no specific rules nor an indicator that can guarantee you that this is the market trend you should follow. However, there are several techniques that you can employ while entering or leaving a trade. You need to be very observant of the market charts for you to know what trend to take. You should be able to point out the pronounced ongoing everyday chart trend. You can also quickly identify which way the market is trending by recognizing the swing points which the market trend leaves behind. Another way you can identify a market trend is by checking whether there are any price action signals setting up. If these signals are giving rise to significant movement in a certain line, then this is a concluding element for your regulation aptitude on this market.
  21. Hello Komu, Unlike stocks trading where you can hold many positions at a time, in the Forex world, it is a dissimilar narrative. Suspending other essential elements of Forex trading, such as analyzing the market, let us focus on how many trades you should be dealing with at a time. For you to be successful while trading in Forex, you should focus on just a few trades at a go. Most experts in this field will more often find themselves yearning to get a lot of money from this market, so they focus on so many trades at a particular given time. Such a decision will result in fear of making losses once the market becomes volatile; this situation is avoidable if you focus on a few trades. While trading many currency pairs at a time, you will be replicating one regular currency. In Forex trading, there are just two or three currencies that are highly liquid that you can trade. It is therefore advisable that you have at most three trades at a time.
  22. Hello Danny, Cybercrime in ETF has recently come into the limelight. Therefore only a few cybersecurity ETFs are up for the grabs. The best performing ETF typically incur fewer costs. Low expenses result in good performance of the ETF in a long duration. Cybersecurity ETF also behave in the same manner. Exchange-traded funds with high assets say $500 million also have high liquidity. This case also applies to cyber ETF. ETFMG Prime Cyber Security ETF, popularly known as HACK, is one of the best cybersecurity ETF. It Is the first cybersecurity ETF to created, and it is also the largest in the market. HACK serves the purpose of pf protecting data of the companies that develop hardware and software. It also protects those who provide the cybersecurity service. First Trust NASDAQ Cybersecurity ETF (CIBR) is another major cybersecurity ETF. It focuses on firms that manage and assemble security arrangements of both private and public networks. CIBR has many assets under it that it runs. Cybersecurity ETF can rapidly grow in the long-run; however, you should note that there may be some short-run risks that come with them. As a careful investor, you should determine your goals and how well you can tolerate the risks in such an ETF before you start to invest.
  23. Hello Cedric, Making money while dealing with cryptocurrencies is the motivating factor for many investors. Therefore, they have to keep mining no matter how hard this may seem. Cryptocurrency mining also comes with some cons that any investor needs to be keen on. Mining cryptocurrencies is complicated. First, you need to have various tools to mine. Getting these tools is not a walk in the park, so is learning how to use them. The mining cryptocurrency consumes a lot of energy; therefore, you need to be ready to have a huge electricity bill. If you choose to mine cryptos using hardware, you need to go for the best option, and the best is freaking expensive. You can choose to do cloud mining to escape this cost. In crypto mining, you are at risk of losing money. The cryptocurrency industry is highly volatile. Therefore if the prices of a cryptocurrency fall, it will equally affect its mining, and so will the profits. Mining cryptocurrencies exposes you to fraudsters who will rip you off your coins. More so, if you use cloud mining to mine your cryptos. For these reasons, there is a chance that what you will get from crypto mining is less than what you invest.
  24. Hello Danny, Nowadays, mining cryptocurrency is not easy. This is one challenge that faces most cryptocurrency investors. However, there are some significant benefits to mining cryptos. One reason why cryptocurrency investors never give up in it is that they will end up making money. Cryptocurrency mining can enable you to make a good profit. However, you need to ensure that you mine the right coins and have the right tools to mine. Cryptocurrency mining is becoming cheap day by day. The fall in the price of has been as a result of its smack in price. By mining cryptocurrencies, you will be contributing to its growth. The value of cryptocurrencies would be impractical if there were no miners. The hardware you use in mining cryptocurrencies retains their value. This means that if cryptos were to become worthless, you could benefit from the sale of the hardware you were using to mine. The rise of cloud mining has come as a great benefit to the crypto miners. Cloud mining will allow you to mine your crypto without necessarily purchasing expensive hardware for the purpose. It is also essential when it comes to saving the costs of electricity.
  25. Hello Cedric, Coming up with cryptocurrencies is not as direct as printing fiat currencies. You have to mine it. Mining a cryptocurrency is a long procedure, and you require several tools to help you in mining them. You require an excellent mining software for effective mining. Selecting a good software means one whose actions occur automatically and allow you to keep track of the process and control more than one rig at a time. Before you decide on the cryptocurrency you want, you must research a couple of them and see the various alternatives you can mine. A mining calculator helps you to check the options you have. Applying a live diagnostic is also an essential tool in crypto mining. It helps to study various errors and events that may affect the mining process.
  • Create New...