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Everything posted by Dan

  1. Hello Hakiza, Cryptocurrency is a digital currency whose creation and management is by use of cryptography. Cryptocurrencies have seen their popularity since the emergence of Bitcoin, and other altcoins that keep on emerging are giving heat to this world. You will find asking before you decide to invest in cryptocurrencies is whether the cryptos will continue to grow in the future, or they will fade away at some point; therefore, you see no point in investing in them. Your questions will mostly be answered by looking at the Bitcoin. Some economists speculate that the crypto world will change drastically since money from various institutions is entering the market. Others say that cryptocurrencies will primarily sell on Nasqad, therefore, making blockchain more critical and increase its uses in the standard currencies. Several say that cryptocurrency should trade as an exchange-traded fund. Cryptocurrencies such as Bitcoin are decentralized and use peer-to-peer automation, which facilitates transactions, verification, and currency issuance. The fact that it is decentralized means that you will be responsible for protecting your cryptocurrency. The value of Bitcoin depends on what price the investors want to pay for it at any particular time. There is an assumption that the market cap of cryptocurrencies might explode over the next few years. The use of Bitcoin is limited to the number of transactions since you can only carry out six or seven operations at a time. This is one reason why Bitcoin can collapse. Also, the verification of cryptocurrencies is energy-intensive than that of the fiat currencies. Specific limitations that face the cryptocurrency world, such as a crash in your computer, may make you lose your crypto, or at times you may lose it to a hacker can be curbed by using better technology in the crypto world. As cryptocurrencies grow in popularity, the government's interest in them keeps growing, the primary reason why the cryptocurrencies exist may, therefore, fade away. Though cryptocurrencies are becoming popular, they are less known to many people compared to other currencies. They are also more sophisticated as against the relative currencies, which can prevent most people from using them. Cryptocurrencies that need to succeed in the future should assure their users of maximum security and also need to be easy to use and understand by the users. Though it can be decentralized, it should have adequate protection and also be able to preserve anonymity. There is a minimum possibility of a cryptocurrency reaching these objectives. The prediction of Bitcoin's success or failure in dealing with the current challenges it is facing cannot be verified. And its success or failure is what will determine the success of other cryptocurrencies.
  2. Hi Hakiza, Investing in the energy field has become inexpensive due to energy exchange-traded funds. Exchange-traded funds tend to pursue a specific benchmark. You can invest in ETFs of various commodities such as oil gold and bonds. Exchange-traded funds are so popular among many people and are continuing to grow each day. Their transaction fees are way favorable compared to traditional funds, and you can trade them at any time of the day. These are just a few reasons why ETFs are a good investment option. Energy ETFs typically come from commodities such as natural gas oil, solar, and other energy alternatives. They are usually engaged in different businesses and risks. Both competitive and reasonable investors best know energy ETFs. The energy sector is highly diversified, and different companies deal with various energy-related commodities. These commodities' success depends on their supply and demand. It may not be new to you to state that oil and gas prices vary from time to time. The manufacturers of oil will earn more when these prices rise, and their earnings will fall when their prices decline. Various energy exchange-traded funds expose investors to varying investment sectors. Such examples may include the SPDR S&P Oil and the XOP that allows the investors to deal with companies that produce oil and gas. The VanEck Vectors Coal ETF is an opportunity for investors to trade in coal. You can trade Energy ETFs using the intraday trading strategy and pricing. It is a better investment option than mutual funds. Though any type of ETF is diversified and efficient to trade with, you need to take note of the risks associated with any ETF before you invest in it.
  3. Hello Mary, The stochastic trading indicator is one of the most used signs to analyze the CFD market. This indicator varies from the rest since it mainly majors at price distribution in all daily bars. It seeks to look at how the closing price and the range of amounts recorded in the previous days relate. When there is a strong uptrend, it is most likely that the closing price will be almost the top. This reflection is seen in the stochastic oscillator. Stochastic oscillators are usually two, and each of them comes with two components. The first component is the %K and the other one %D. %D is smoother than %K and uses a 3-day moving average. These are the components of the Fast Stochastic. The slow oscillator is the other type of Stochastic Oscillator; its components are the same as in the fast oscillator just that here they are slow %D and %K. You can choose any stochastic Oscillator depending on what your personal preferences are. When using the Fast Stochastic oscillator, you will receive the signs early, unlike the Slow Stochastic. However, the Fast Stochastic is so unreliable. When using Stochastic, you can decide to go long if %K is rising above a certain level such that the market recovers from extreme sales. Consequently, you can go short if %K goes down up to a certain degree. The %D will tell you when to take up a particular action when it moves beyond the %K hence the name signal line. When the %D and %K go below 20%, the %K may move from this position and go above %D, a signal you should buy. If %D and %K move above 80%, the %K line may drop, leaving %D above it. This signifies that you need to take a short position.
  4. Hello Mary, It is usually a challenge to find the best Metatrader 4 broker while investing in the Forex market. Metatrader 4 is one of the most known Forex trading platforms across the globe. This platform is, however, being replaced by Metatrader 5 in various ways. One of the best brokers in the Metatrader 4 platform is the FXPro. They are No Dealing Desk broker meaning that they directly interact with their clients. Several countries regulate them, and they give floating spreads to the traders. OctaFX is another excellent Metatrader 4 broker. They offer various assets, such as metals, crypto, and Forex. The European Union regulates them; hence they attract many investors. Pepperstone is also not left behind. This broker is usually firmly established, and its financials are too strong. IG group is also a good Metatrader 4 broker. It allows you to use various assets, and you can globally access it.
  5. Hi Hakiza, Metatrader 4 is well-known Forex brokers, and you can largely depend on Forex robot traders for successful trading in the Forex market. Most brokers will frustrate you with small spreads and expensive costs, which are not worth paying for. Before you select your broker, you need to check certain aspects. One characteristic of Metatrader 4 broker you should look out for is by checking if the broker is straight-through processing or a Direct market access broker. If the broker is straight-through processing, it means that he/she does not act as a market maker and usually will never take the contrarily of your trade. If they go the reverse of your deal, then they will make you experience a loss. The direct market access will instantly execute your trades. You also need to check on the spread that your broker is offering you. Some brokers tend to exploit you by charging a lot of money in a spread. It would help if you looked at a trader who will offer you a lower fixed spread no matter how liquid the markets are. You also need to check the terms and conditions set. Some Metatrader 4 broker will not allow you to trade using Forex robot traders. The broker will also not allow you to withdraw your funds using the robots. You need to select a MetaTrader 4 broker who will offer you a demo account to practice with before you invest your real money in the Forex market.
  6. Hi Mary, A Forex breakout occurs when the price of a particular currency moves away from a specified set average. It can also happen when the price level is contravened. The support level may be such as the resistance and the support levels. The breakout strategy aims at entering the Forex market when the price breaks out and hold that position until this volatility declines. Forex breakouts are of two types, the continuation breakout, and reversal breakout. The kind of breakout you use will help you identify the trends in the individual market. Breakouts indicate the variations in the supply and demand in the currency pair you trade. These variations grant you an excellent opportunity to make a good profit. When the market moves considerably in one direction, the market will most probably take a break. This will most often occur when the traders In the market take a breather to see what decision they will take up next. The results of this will be a range-bound movement known as consolidation. If traders see that the first trend is the best option and pursue the price in the initial direction, a continuation breakout will develop. It is merely a continuation of the original pattern. Reversal breakout invokes similarly as the continuation breakout. When the trend is long, there will be a pause. However, in reverse breakout after the pause moment, the Forex trader will decide that this trend is exhaustive and impel the price contrariwise. However, there are at times where you may have false breakouts. They occur when the price moves beyond a certain level, such as the support and the resistance level, and doesn't proceed further. This breakout is usually risky and can result in losses.
  7. Hello Stella, Forex market is an exciting space for many investors, more so if you have an internet connection at hand. You will need to open an account to trade, but if you do not have trading skills in this market, it is best if you opened a demo account to learn before you proceed to invest real money. Without the knowledge of Forex trading, you can make many mistakes that can cost you a fortune. You need to know how to avoid these mistakes whatsoever. If you use extreme leverage while trading on Forex is a Good Idea, you can use them, hoping that you will make greater returns; however, extreme leverage may result in huge losses. Not having a trading plan will also cost you. Having one is essential in Forex trading since it will entail your objectives, the strategies you intend to use, and help you minimize risks that you may face. Avoid over trading at all costs. While you are placing multiple trades at a time, you may improperly place the trades. Few exchanges at a time are best convenient since you will concentrate much better, and the chances of making great profits are high. Not following a given trend depending on the period you want to trade will also cost you. Following short-term trends for long term trading purposes will minimize your profit-making chances. Emotional trading is another mistake you need to avoid. It can result in you making wrong trading decisions, one reason why people make losses in Forex trading. This also comes along with being impatient and lacking discipline while trading. You will only make gains if you are patient enough on the market and have proper discipline. You also need to avoid using automated software to predict the market trends, especially if you are a beginner in this market. This software is hardly useful for future predictions. Many other common mistakes can bar you from being successful in this market. consider following these steps to up your gain in Forex trading.
  8. Hi Stella, Forex market is widely used by many investors whose main aim is to magnify their gains. Maybe you are just getting started in this market, and you do not know the right methods that will help you profit in this market. One method you can employ in the Forex market is the use of Forex signals. Subscribing to a forex signal service is one step to getting to use them, especially if you just began Forex trading and lack ample time to learn the trading techniques you can use. You need not be glued to your screen monitoring this market all through; you will follow what the service recommends you to trade. To get a good Forex signal service, you can test using a demo account and understand how it works. You can also employ a Forex Robot. These robots are a great way to increase your gains. However, these robots need to be optimized all the time, depending on how the market changes. If you do not know much about the robots, then it is a hustle for you to optimize them. Another method you can use to trade in the Forex market is by use of managed Forex accounts. You will employ a professional to run this account for you while you pay him a certain fee. You have total control of this account, and you can withdraw from it ant time you want. You can also trade in a Forex market manually, which means that you sit in a computer, analyze the market, and place trades by yourself. To succeed in this method, you need to have a thorough knowledge of how the Forex market works. You need to spare a lot of time to learn how to trade and practice a lot to up your trading skills.
  9. Hi Earnest, Most of these financial markets transactions occur online, which means that you need special platforms that will facilitate your trading. The choice of trading software you choose to use usually has an impact on how you conduct your trading. The trading software you use in the Forex market will help you trade easily. You cannot depend solely on it to succeed in this market if you have an excellent knowledge of how the Forex market works will mainly facilitate your success in this market. If you are looking at making good earnings and develop better trading strategies, Forex software will help you achieve this. There is much software that you can use in Forex, and what you select will depend on your experience and the number of risks you are willing to take up. FOREX.com is one of the best software mainly because of its MetaTrader4 platform and other tools it contains. MetaTrader4 usually implements automated trading and facilitates a good number of technical indicators. Another great software is the Ninja trader. This platform can favor a trader who mainly deals with Forex and futures trading. It has several resources that can help you look for indicators to trade in this market. Thinkorswim will be suitable for you if you want to try algorithmic trading, and you are torn choosing between many trades at a time. Here you can keep your trades in one account. You also need not sign up to access the newsletters on this platform. Interactive brokers are also another excellent trading software. It usually trades similar currency pairs to those in Thinkorswim with a great variety to choose from. You can also use this software If you trade futures and stock. Tradespoon is also fantastic software that you can employ. This software is not a guarantee of your success in the Forex market. You need excellent skills and knowledge to succeed in the Forex market.
  10. Hello Stella, As the name suggests, DMA CFDs are contracts for differences that allow investors to access the market directly. This is another model of CFDs other than those offered by the market maker. Market maker CFDs are offered by the provider who will give you the commission layout on their website, clearly showing you the commission and the spread represented by a certain portion of a charge. Direct Market Access CFD will give you the chance to link with active order books whose exchanges are worldwide directly. During the past times, DMA was benefitting large financial institutions. The excellent technology revolution taking place has seen direct market access accessible to even retail investors. In DMA CFDs, an instruction is given directly to the real essential market. Therefore, the market makers do not intervene in this market, leading to instantaneous execution and accurate market prices. DMA will confirm the trade to the CFD trader immediately the sells or buys the share. Direct market access CFDs are usually transparent; hence they will allow you to see all the market undertakings that are going on. Your orders enter the market directly; therefore, you can hit the offer or the trading line. In direct market access CFDs, the cost of entering this market is usually lower than that of using a market maker. One other major benefit of the direct access market is that you are given a bigger spread to save a fortune. You also need to note that this market is decentralized. You will have an equal opportunity to affect and view the price with all other traders.
  11. Hi Stella, Day trading in CFDs is one trading strategy that can magnify your gains in the CFD market. However, your success will depend on the type of broker and the platform you choose to use. Whether you choose to use direct market access or market maker, either way, you may reap some benefits and on the contrarily make losses. A market maker CFD will allow you to trade any product you want at any place across the globe. Market makers will set the prices on the products you wish to trade hence making your trading flexible. While dealing with a market maker, you only need one account to sell all over the world. In Direct market access, you can directly check what you can trade without necessarily using a broker. The transparency that this technique offers is what enables you to what is available in this market. You can also quickly place your trades in this market. One drawback of using a market maker is that they state the prices they feel like; therefore, some products may have an unusually large spread. When choosing to use either market maker or Direct Market access, you need to know the products you want to use and the time you want to trade them. Typically, if your time frame is short, then you can use the Direct Market Access strategy. If your time frame is flexible, then you can use a market maker. However, you can use both of them as long as you know when and how to employ them.
  12. Hello Earnest, You probably must have heard of swing trading is you are a financial investor. Swing trading is one of the most known and used trading techniques in the financial markets since you need not be glued to your computer for long to trade. It would be best if you had less time on your computer and the profits you will get will be significant. Swing trading in CFDs is usually safe, and all you need to do is follow a certain trend to make a profit. Swing trading uses the following directions and utilizes the leverage that comes with CFDs to magnify earnings. The stocks that you will be trading using this technique will fluctuate more often, and therefore you should develop a mechanism that will help you combat these changes. Swing traders and day traders aim at getting profits quickly. The advantage of swing trading relative to day trading is that you can make better earnings per trade as the position opened overnight can move with more incredible energy at a given period. In CFDs, you can use this strategy with stocks that can move by a substantial amount in a short while. It uses technical analysis to spot the financial bonds that are volatile. The technical analysis also helps to know the right time to enter or leave a trade. While using swing trading In CFDs, you need not have tremendous amounts to enter the market. You can take advantage of the leverage that your broker provides to the take-up portion of the whole amount required. Though you have to pay interest for the amount you borrow, It will be less in contrast to the gain you will make in swing trading. To succeed in swing trading as a CFD trader, you need to know how to analyze the charts well. You need to come up with an excellent trading strategy and avoid trading based on your emotions. Also, know that like any strategy, you may use the swing trading strategy in CFD may result in losses.
  13. Hello Hakiza, As an ETF investor, you have to come up with your trading strategy. One thing that you need to consider in this strategy is the amount of time that you are willing to hold on to your market position. You need to select the ETF suitable for long-term investing when you decide to be a long-term investor. Therefore, you will buy and hold that ETF for a long time until you get the profit you need, after which you sell off your position. Index-based ET may be excellent if you want a long-term investment. These ETFs seek to track the functioning of benchmarks. Vanguard Total Stock Market ETF (VTI) is an excellent index-based ETF for long term investing. In this ETF, you have the advantage of investing in various sectors. It has a variety of market capitalization stocks that you can use. It is also an efficient ETF, and you incur low expenses while using it. The SPDR S&P 500 ETF (SPY) is also another excellent ETF for long term purposes. It allures many investors into it. It tends to follow the performance of the S&P 500 index. You cannot reinvest this fund since it is a unit investment trust. The iShares Core MSCI EAFE ETF (IEFA) is also worth the mention. Its benchmarks the performance of the MSCI EAFE and reveals to evolved market stocks in places like Asia and Europe. It also incorporates small-capitalization in harmony with the market. There are many other good long-term ETF that you can use, and your choice will depend on the strategy you use.
  14. Hello Hakiza, Both exchange-traded funds and tracker funds are passively managed. They aim at producing an output that is obedient to their benchmark. Even tracker funds seek to deliver a result that is similar to the index, this output in some way need to be much higher. Tracker funds actively trade stocks to get to this objective. While you invest in either of these options, you may make a profit or a loss. The costs of tracking a particular index in both markets are usually low. Their main difference is flexibility. You trade ETFs on stock exchanges; this means that you can trade ETFs like shares. Also, the prices of ETFs, therefore, keep on changing all through the trading day. Investors in this market will set the price that will replicate that of the benchmark. Tracker funds, on the other hand, operate like open-ended investments. Their portfolio reflects a particular index, and their price is set only once during the trading day. Another difference is that in ETFs, you have a variety of financial instruments that you can choose from while investing, unlike in the tracker funds. Tracker funds being open-ended, maybe simple to understand, and trade with as opposed to exchange-traded funds. It would be help if you seek professional advice before you invest in any of these funds.
  15. Hi Hakiza, Day trading is an excellent trading technique in the Forex market. However, it will best suit you if you know what you are doing ad understand the crypto market well. This way, you will magnify your gains. If you do not know how to conduct day trading with cryptos, you may make certain mistakes that will cost you a fortune. One mistake you can do is trading using the wrong tools. You cannot employ day trading strategy with all cryptocurrencies; using crypto that does not mean this purpose may limit your success in the crypto market. Also, some crypto wallets such as the Trezor hardware wallet, although it offers adequate security for your crypto, cannot use it during day trading. Another mistake that will cost you in this strategy is trading, depending on your emotions. Trading knowing you are frustrated because you have suffered a loss will limit your concentration and, in return, limit your chances of success. If you have made a loss, it would be best if you checked what has happened and adjust your trading strategy for better results the next time you trade. It can be easy to enter a market position while day trading with cryptos. However, it would help if you considered how you would exit this position. Entering a position that you cant exit easily will cost you. If you fail to check at the correct spread for your trade carefully, you may end up making losses. While checking for spreads, you see what presents itself first in the book without evaluating whether it is the price your trade presents. Day trading is a tricky strategy and can limit the rewards you may get while trading using other trading techniques.
  16. Hi Hakiza, Crossover trading strategy is one excellent technique that you can apply to help you identify trends in a CFD market. Typically in this strategy, the prices will move over to a given level. For example, when there is a certain resistance, the price needs to go by this resistance. This will signify a breakout, and the price may continue rising. Another type of crossover is when your price has a moving average, and it crosses it. In such a scenario, the moving average, maybe a short term type and will closely follow the price. If the price is rising, it may change the direction and start falling; therefore, the price will cross over the average line. In such a case or the converse of this, you need to go short when the price navigates above the central line or go long when the price is below the average line. The crossover trading technique will help you trade in the right direction since you can easily know when to buy or sell based on rising and falling prices. You generally buy when there is a lift in the prices and sell they fall. There are cases where the method will present many signals such that the prices will roughly move. The signs may be false, and one reason for this is because the price may sometimes go unusually. You can avoid this by using a short term moving average line to make a better prediction that will increase your chances of making a profit. Another way is by the use of two average moving techniques. You may choose to use the five and the twenty days moving average. You can go long when a five-day moving average surpasses the twenty-day one. Contrarily when the short period moving average falls below the longer one, you can decide to go short on your position. These two moving average techniques will minimize the fake signals you will use to trade.
  17. Hi Hakiza, The price action trading strategy enables the trader to analyze the market depending on the price changes that have occurred recently. It recounts the features of the asset depending on how its price moves. After you analyze the market, you will make informed decisions whose basis is the prevailing and exact price changes. In the price action strategy, you need not necessarily rely on the technical indicators. The main focus of the price action strategy is the current and past market prices; therefore, it mostly depends on the technical analysis instruments. Some technical analysis tools used in this market include price bands, market swings, support and resistance levels charts, and trend lines, among many other tools. You can use any of these tools, depending on how best they suit your trading strategy. The way you will interpret your price action is different from how the other trader will. These interpretations depend on how they psychologically view it and also the behavioral know-how of the price action. You are free to make your decision in this market based on the recent and past market prices and the technical analysis tools that you choose to employ. The price action trading strategy is best suited for short and mid-term trading periods. The Forex market is unpredictable, and it is usually hard to confidently say that this is the current trend of the market, it may change at any time. By employing technical tools and analyzing the current and past market prices, you will be able to make a good prediction of the market. This trading technique has its risks. You need to understand how it works before you settle for it.
  18. Hi Hakiza, In CFD trading, you have the advantage of using margin. This implies that you will contribute a portion of the initial amount required, and your broker will lend you the remaining amount that you will repay by the interest for that loan. Leverage boosts your profits or losses. In CFD trading, there is a high possibility that you will lose more than what you invest. The case is ordinarily different in share trading, where you will lose an amount equivalent to your initial investment. In margin trading, you will own the underlying asset you are trading. In CFDs, however, you do not control the underlying asset. You will agree with your provider to exchange the variation in the opening and closing price of the underlying asset. When you trade your shares using margins, your broker will keep a certain percentage of your securities as a guarantee that you can do away with if need be. In CFD, the broker will not hold any of your assets as security since you do not own the underlying asset. Margin trading allows you to enjoy certain rights such as economic rights, voting rights, and tax benefits. The contract for differences will only guarantee your financial rights. It is also easy to trade an asset in CFD trading since the brokerage fees are less against margin trading. It is also important to note that CFDs are traded over-the-counter. This means that you make an agreement with your broker on the price you will sell the asset without necessarily following a certain index. In margin trading, you trade your asset in an open market. In margin trading, it is like where the banks give you a regular loan. The only interest you need to pay is the amount and the period you take before you repay the amount. In CFD trading, you enter into a consensus with the CFD provider, and the interest you pay will not depend on the amount you borrow. Both methods are good for investment purposes. However, understanding the critical elements in each and the risks that they carry will help you choose the best investment option.
  19. Hello Mary, Price action is one of the best trading strategies that you can use in a Forex market. This strategy is not only very flexible hence assuring you of constant earnings but also very easy to trade with by following the candlestick charts. However, like any other trading strategy, certain reasons can make you not use this technique. The problems associated with it still have their solutions. In this technique, you need to wait until the prices come to a certain level so you can trade. These levels may be the support and resistance ones; however, in such a market, the prices are highly affected by great power; hence the prices will most often not come back to these levels. The effect will be that the market is moving and you will be left on the side. The size of the reversal candlestick may not necessarily be equal. These candlesticks help to determine whether a certain level is encumbering. When the candlestick is large, the price rejection will be stronger. The price action technique also makes traders place their stops poorly. You will often find yourself arranging a stop at an apparent position where your dealers can easily guess. This will make you be stopped unnecessarily out of your trade and the chance that the price will later on a favor you are high. It would help if you placed your stop loss at a pace away from the support and resistance level. You will most likely not succeed in this market if you are barely patient. You need to wait for approval at the support and resistance level. As you wait, you will most likely miss a trading chance since the price may touch the resistance and support level and rapidly change and go. To overcome this, you need not wait for confirmation. Do your usual analysis of the levels and place your trade immediately.
  20. Hello Mary, The price action technique involves predicting the price movements in the market using the recent and past prices, and various technical tools such as charts. Price action will enable you to look for an opportunity to trade when the market is volatile. You will check the position, shape, volume, growth, and size of the bars in a candlestick chart, where you start with one bar and later combine with the charts that form while using the technical analysis. One main advantage of price action trading technique is that it is easy to understand and use. When you choose not to use any trading and follow the current and past market prices, you will be able to make your trading decision easily. The technical analysis tool will be there to make your prediction more accurate; you necessarily do not need to use them. You will use candlestick charts that will help you analyze the market. The signals in a price action market are easy to understand. You need not be an expert in this market to succeed. You can easily identify market trends and make an informed market decision. Also, the time frames you use in price action trading are of great importance. The price action strategy gives you a variety of time frames that you can use to observe the market signals and, from there, make your decision. While using the daily time frame, for example, you have a considerable amount of data in the bar; hence the signals you get are much more reliable compared to a few minutes' bars. The signs being very reliable will up your success in this trading technique. Price action strategy is a flexible trading technique whereby you can consistently make profits. The Forex markets change each time, and employing the price action trading strategy is usually very reliable to speculate the price movements no matter how volatile the market is. The price action technique is a great way to boost your earnings in the Forex market.
  21. Hello Hakiza, The adoption of social trading in the financial market is increasing across the globe. In social trading, the market users emulate the best market players and try to trade as they do in the stock market. The stock market sometime back used to operate privately. The broker and other experts in the market would ask for a fortune from prospective traders in this market. Some of the experts were offering low-quality services despite the enormous sums they ask for. One principle that comes with social trading is that you have the right to invest in a CFD market without paying huge fees. Also, in social trading, you should be responsible for what you invest, and you don't need to create real-time to watch how the market is changing. Social trading also means that you can trade equally and share comprehension across the globe. Social trading allows those with little financial understanding of how the market works to get a better understanding of it by analyzing the performance of other traders. Brokers will charge you for the services they offer in agreeing markets where the price changes rapidly. Social trading removes the broker from the market since brining together the investments makes this process equal to all. This means that the traders will get a bigger profit.
  22. Dan

    How do I use hedging in CFD?

    Hi Mary, In hedging, traders and investors open new market positions as a protective measure of the current market positions from the uncertain market movements. You can hold more than two positions that will help you gain you are making a loss from your first position. Although hedging will not prevent a loss, it will protect you from making significant losses. CFDs act as a hedging tool to help investors make gains when the market prices are falling. Hedging using short CFDs will safeguard your portfolio since the prices are unstable; hence they change regularly depending on the prevailing market conditions. Long-term investors may use CFDs for short-selling for a short period. They do this when the price is being corrected in the portfolio. You can make use of CFD hedges when the prices of the asset you have invested are not favoring you. Also, it is vital to use it when the market you are trading in is weak, not reacting to good or bad news released. You can also use it when the market favors you, and the extra profit you get is small. It would be best if you noted when you should not use hedging in CFDs. When the market has moved against you and for some reason, it may reverse. It would help if you also avoided hedging when everything in the market seems to be increasing.
  23. Hello Mary, Private and public keys in cryptocurrencies are vital for identification. Cryptocurrencies are built upon a cryptographic system that uses these key pairs. Private keys are kept confidential by the crypto holder, and they are essential to identify you as the account holder. The most used cryptocurrencies, such as Bitcoin and Ethereum, operate by applying three fundamental information segments. They include the address that helps with the balance and facilitates the transaction of funds and the address that denotes private and public keys. Cryptocurrencies typically begin with the address starts with the private key. The public key is usually meant for transaction purposes. The private key allows the crypto user to own the funds using a certain address. The blockchain wallet usually generates and stores the private keys for the user. The public key is seen as your bank account, and the pin to this account is your private key. The public key generates a verified cryptocurrency address. This address acts as your identification to your account where your funds are paid. The private key signs the transactions that take place, which in turn gives you the ability to spend your funds. The unique signatures will show that truly you are the true owner of the funds in an account.
  24. Hi Mary, The cryptocurrency world may discourage prospective investors from dealing with it. Its transactions are usually online and, therefore, prone to multiple cybercrimes. It is your responsibity as an investor to keep your funds safe. One way you can keep your crypto safe is by doing your own research about this market and its entailment. You can be sure that you, during cryptocurrency journey, you will come across fraudsters. It is wise to research the cryptocurrency you want to deal with before deciding to invest in it. Know the security measures it provides and the persons offering it. Always remain vigilant. Avoid logging in to many cryptocurrency sites. Most of these sites will ask for your details, and since you are on the quest to know what you don't know in the crypto world, you have to give in. Your details will out there, and these sites can use them to hack your account. It would be best if you sought knowledge from links whose channels have been officially confirmed. It is better to store your crypto in a cold wallet. Cold wallets will guarantee you maximum security compared to hot wallets. Another critical thing to do is to withhold your details. Please do not share them with anyone else, and also have strong passwords for your logins.
  25. Hi Hakiza, ryptocurrencies have been on the talk for a good time now, mainly because of the profits that they can bring you. Some investors seek gains after a short while, while others will prefer investing cryptos for a long time. Either way, the investors' main aim will be to make a good profit. As you look to invest in cryptocurrencies for any period, you should go for the crypto best suited for that time frame. Another essential factor you should consider is your trading strategies. Chainlink is growing so fast, but it is also one of the best short-term currencies you should consider investing in. Its inputs and outputs are reliable for challenging smart contracts on the blockchains. It has a decentralized network that facilitates the same data evaluation before it is activated and also maintains the entire value of the contract. Binance coin is also good for short term investment. Binance coin is its token, one of the reasons why it performs excellently. You use the Binance currency to pay for Binance fees; this coin will offer you a discount. It is one of the critical assets to implement contracts of the BNB exchanges. Litecoin is another excellent crypto for short term investing. Bitcoin became famous for its technology upheaval. Cosmos was created for solving various challenges in the cryptocurrency market. Some of the problems it seeks to solve are the usefulness of cryptos and how they adjust. It also aims to help the developers make and carry on their transactions easily and using many blockchains. BitTorrent is also excellent for short term investing.
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