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Bernedict

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  1. While there are several ways to determine if a security is thinly traded, there are two main ways through which one can tell is security is thinly traded. You can, therefore, tell whether a security is thinly traded or not by looking at two things, the dollar volume and the Bid-ask spread. By determining the dollar volume of a security, one can know how many dollars are being traded on a given single day. Often, securities with low dollar volume are the ones that are thinly traded. Also, the bid-ask spread is another way to tell if security is thinly traded because the bid-ask spread of any particular security will indicate the disparities between the asking price and the bidding price hence a determination of its liquidity. In general, securities with a significantly wide bid-ask spread are those that are thinly traded.
  2. Bitcoin is the leading cryptocurrency concerning market capitalization and in terms of its usage all over the world. However, the altcoins coming up almost defeats it due to better technology used in their development. The ripple (XRP) is the third-best crypto based on market capitalization. The company behind this crypto is known as the ripple, while the cryptocurrency itself Is the XRP. The Bitcoin operations are through a public ledger (blockchain) that facilitates the transactions that occur. The bitcoin network depends on the blockchain, usually a black ledger that verifies and records the transactions. When mining Bitcoin, you will check the deals taking place in the bitcoin and record them in that public ledger. The time you will spend determining the validity of the transactions will be rewarded by being given some coins. The technology in XRP is best known for its digital payment and protocol. It is also known for being an excellent payment settlement. The ripple uses a consensus mechanism to mine and validates its transactions, unlike the bitcoin that uses blockchain. It conducts a poll, and therefore the servers can determine by consensus whether the transaction is authentic and valid. The verifications, therefore, occur immediately and without the verification of a central authority. This makes XRP quick to use and more reliable. The bitcoin network consumes so much energy while mining the coins. The case is different in the ripple, to obtain ripple you need not extract it; therefore, you will not be consuming so much power. To confirm a Bitcoin transaction, it will take only minutes. Therefore, you will incur significant amounts as the transaction fee. The XRPs transactions' verifications only take a few seconds, and the costs associated with this are meager. A proof of work system is used in Bitcoin to release new coins. This forms a very crucial part of the verification process. XRP exists in a different way than the bitcoin since its tokens are pre-mined. Just as there are transaction fees in the Bitcoin, you will also pay some amount while transacting XRP. Generally, the ripple is a bit more complex to use. However, you can study both currencies and invest in both since they can give you excellent outputs. Also, be keen on the risks that may come with each crypto.
  3. Bitcoin is the first thing you think about any time you hear about cryptocurrencies. It comes first in terms of market capitalization and has experienced massive growth over the past years. It is also the most popular cryptocurrency. However, it has experienced a good number of challenges that have seen it almost getting defeated in various aspects by other digital currencies. The cryptocurrency world is highly volatile, and the prices for these coins tend to change so rapidly from time to time. As mentioned earlier, if you are looking at dealing with a high market capitalization currency, Bitcoin should be your first go-to option. It has the largest market cap in the crypto space of over $125 billion. The value of Bitcoin is also the highest in its world. There is so much Bitcoin in the market today. However, many other coins are almost overtaking bitcoin. Ethereum should be your second best option in the list of large market cap. Ethereum is the crypto that gave rise to the Initial coin offering. The value of Ethereum in the market is less than that of Bitcoin, and its market capitalization lies significantly below it. The ripple comes third with a total market cap of over $19.8 billion. The ripple is most excited and best known for the technology it uses to carry out its transactions. The value of XRP is usually deficient. However, the amount of it that is in circulation is high. Bitcoin cash ranks fourth in these currencies. It came up to solve some of the challenges that faced the bitcoin. Its market capitalization is almost $14.5 billion. There is a considerable amount of Bitcoin cash currently in circulation. The EOS ends this list. However, other currencies follow behind in terms of market capitalization. It has many of its tokens in the market, and its market capitalization is about $7.83 billion.
  4. If you have traded or tried to study some Forex trading strategies, you must have come across scalping. You can also apply scalping in the contract for differences. Most investors who want to use this strategy do not know the basics of using it. Applying scalping in the contract for differences is interesting. However, it is not trouble-free. At times scalping can be challenging; however, there is a way you can cope with the challenges it brings. Some investors may view scalping best suited for CFD trading since it is flexible and offers low transaction costs. You need to be vigilant and optimistic while using it to make profits consistently. Scalping in CFD gives you the benefit of the leverage that you get from your CFD broker. Nonetheless, you have to pay interest for the leverage since you cannot hold a position momentarily. While scalping, you aim at consistently making small profits and immediately cut your losses when they occur. You will frequently make small profits when there is a slight change in price. In scalping, you look to make gains from the price fluctuations that regularly occur, and therefore you need not rely on the long-term trends. There are many ways you can make gains in scalping; however, the information available on how you can achieve this is not enough; hence, you will not understand this technique. You can quickly enter and exit a market position in scalping, and you can make gains in any market condition. You can trade for a short term at any time and different activity levels in the market. Scalping can be used at intraday, mostly after a short while. The overnight exposure and the underlying risk of opening gaps are, therefore, removed. You will hold a market position for a short time in scalping. Therefore, you minimize the risk of making a loss if the market moves against you. One drawback of scalping is that you need a lot of concentration and quick speed to make a market decision. The costs associated with scalping are also high; therefore, they can eat up on your earnings. Before you start scalping, you need to know how to use technical analysis to see what you will be facing when you decide to enter a particular market position. A functional analysis tool will help you plan when to enter and exit a market position.
  5. Bernedict

    What is sector CFD?

    The notion of market sectors is not new to you, especially if you have been trading on financial markets for quite some time. The market will group the tradable product in it into categories. The flexibility in the contract for differences will help you trade in sector CFD. The CFD market gives you a variety of sectors that you get to select, depending on what you want to sell. You can choose from the health sector to the energy sector to the financial industry and many other industries, depending on what interests you most. Trading in sector CFD is much easier than when you trade stocks alone. Sector CFD is advantageous overstocks in that; it can equalize the volatility in stocks in that particular sector. Therefore, unlike in individual companies, discrete fluctuations can hardly affect you. If you are trading on an area of growth and you are unsure about the success of any company among the ones you are dealing with, then this may be a merit for you. While trading using sectors, you can easily spot notable market trends since you will focus on sectorial charts. This may be challenging if you try to identify the trends in charts of several different companies. If you place a trade that is obedient to the current trends, you will most likely get better returns. In sector CFD, you gamble on the effectiveness and better results of one side of the market relative to others. An excellent example is the oil sector. Its performance has been entirely different from other areas since the oil market is highly volatile. The prices keep changing rapidly. In CFD, you can decide to go long or short. Therefore, depending on how keen you are at following the market trends, the decision you make may result in profits or losses. You can also employ sector CFD in mining, primarily due to the raw materials. Therefore, you need not choose the best performing mining company for you to succeed. The benefit of this is because these companies are unpredictable and perform well based on whether they have new resources. Although sector CFD are beneficial, one major drawback they have is that their spreads are usually extensive. The broker makes profits from the range. If they want a widespread, you have to wait till the prices move better so that you can also benefit. If you hold your sector CFD for a long, dividends will be claimed, and your account will be assigned with almost an amount that is equal to the bonuses. Consequently, if you hold them for a short position, then full dividend value will be debited. In CFDs you place your trades through a broker. The prices offered by these brokers usually differ. Therefore before you get involved in sector CFD, look at various brokers and see what prices they provide.
  6. There arise many speculative trading opportunities in Contracts for differences. These opportunities are usually similar in that they depend on news announcements. The news may come from the government, which may be reporting on the country's current economic situation or from a firm that states its current earnings, maybe for its first half of the year. Either way, an announcement made in the market will impact the current state of the market. One news announcement that can offer you a good trading chance is when an individual company gives its reports regarding what they have earned within a specified period, as mentioned above. The statements that the company releases concerning its current performance and what it expects to achieve are scheduled early enough; therefore, you can prepare yourself before then and know how to utilize the message. You need to look at their current and the situation they are expecting afterward. The prices of CFD will rise when the company's current performance is excellent, and it will most probably continue to perform well. Contrarily if its performance is poor and you speculate that it will continue degrading, the CFD prices will fall. When some news come in unexpectedly, It will be hard for you to take advantage of them. Some of this news may have a positive impact on CFD prices, while others may fall in the prices. The effect will depend on whether the news is good or bad. Other news that could lead to a speculative trading opportunity is the economic data and Index additions. When you identify the news that may affect the CFD prices, you can take up the chance to trade in various ways. One way is that you can decide to enter the trade after the release of the news immediately. You can also opt to wait until the market processes the information and starts trading directly; you observe a new trend. You can also set two prices that you want to enter the market with. One may be below and above the prevailing market price before the release of the news. You need to evaluate the trading keenly means you want to use following the news announcement.
  7. There are many trading techniques you can use in the CFD market. However, you will always want to trade with one that suits your personality and manage your risks effectively. To know the best system for you, you need to learn about it and test it yourself. The trading system that you can use while testing the one that suits you best is called the mechanical trading system. An automated trading system is an excellent way to enter the CFD market. In CFD, you may be tempted to stop following the rules that you have set for trading. You may decide to shift your stop loss level based on what you feel, hoping that you will reverse your losses. Other times you may wait for more extended periods to take profit than what your trading strategy had stated with the hope that the market price will change. Shifting the stop loss may bring you so many benefits, and if the worst happens, you can make massive losses. A mechanical trading system may give you proper guidance in such a case. A mechanical trading system typically comprises some rules that direct on how trade will be conducted. These rules may be entered into the software. You are not subjective on the trades you will take since all the varieties will be stated in the mechanical system and re-tested against past data to see the performance it brings out and correct any mistakes that maybe there. Reexamining the best market that is suited for your trades is essential for the mechanical trading system. Since CFD make use of leverage, a sound system can help you get good returns. However, you need to look for the best policy and the product that you will use to get excel significantly. There are a wide variety of CFD you can choose from to decide the one that works best. Back-testing in CFD may involve checking the margin requirements to know what lies ahead of you. Reviewing past performance is crucial, and you may expect the same results or even better; however, the earlier results may not mean that that is what you will achieve in the future. The mechanical trading system comes with some risks that you need to consider before using it in your CFD trades.
  8. When investing in hedge funds ETF, you can get many benefits, and on the contrarily, you will face many challenges. You can engage in an imperfect hedge, especially if your understanding does not go beyond analyzing the market trends and managing your risks. The market trends may be unstable, and at times, it may be hard for you to predict what will happen next. If you lack some essential knowledge of hedge ETF, you may lose the chance of making good profits. You need to check on the benefits that come with the hedge fund ETF and take advantage of them before it is too late. One drawback of the hedge fund is that, is the colossal investment fee that you will be required to pay before you invest. There are cases where you will need to pay a management fee of maybe 2% and a performance fee of about 20% of your total funds. The performance fees act as a motivation tool so that you can continue making huge profits. Hedge funds use the standard deviation tool that helps to predict that will come with a specific hedge fund. It determines the volatility of the earnings that you can make each year. It will show the difference in gains for a particular year. However, it will not show you the amount you can make from the risks you take. In hedge funds, you can use leverage. Leverage can either magnify your gains or your losses. Typically, any time you use leverage, you may be increasing your chances of making huge losses. The risk of significant losses may force the hedge funds to trade their tools cheaply. You use drawdown in hedge funds to determine what you will earn after investing in comparison to what you had recently acquired. This measure drawback is similar to that caused by the standard deviation in that. The hedge funds are not consistent, and you can hardly predict their operations. The downside capture is applied in the hedge funds to determine how it is related to an individual market when the prices in that market are declining. If the downside capture measure is small, the hedge fund will be able to effectively manage the decline in the market. The disadvantage here is that the funds will be checked against an integrated benchmark. The hedge fund may perform poorly below the parameter if you apply a different method carelessly instead of the reference.
  9. There is a great need to use a trading strategy in the CFD market, especially if you are beginning to learn the tricks and hacks of trading. The trading system you use to employ may vary in flexibility. One trading system you can use in this market is the mechanical one that uses software to carry out trades. You will also use a discretionary trading system in such away. Many disputes have been there between mechanical and discretionary trading systems, each trying to outdo the other. In the automated trading system, the risks that you may face may cost you a fortune. In the discretionary system, provided you understand the tactics of trading with it, you can generate significant profits. The discretionary trading system may disappoint you, especially if you are not careful while using it for your trade. It is good looking at your trading aspects. Some may make you emotional and following them without enough experience; you may lose your way out while trading. In this system, you need to educate yourself well; otherwise, you will, in most cases, be unhappy with your results. Discretionary trading is a stepping stone to using a mechanical trading system. The disparity in this is that indiscretion you need to will be actively involved in the analysis by drawing trendlines so that you can know the best time to trade. In CFD, this trading system is close to not having a trading strategy. Therefore, you need to analyze this system before you place your trades critically. You need a trading plan if you want to succeed in any market, and not having one brings you closer to exiting the CFD market. Discretionary trading will need you to how to analyze the market trends excellently using the technical analysis. You also need to be an experienced trader in this market and adapt to the changes that may occur. It would be best if you recognized when the market is performing well and when it is not and, therefore, can know the right time to enter or exit the market.
  10. You can achieve significantly with intraday trading techniques. However, your success will not come on a silver platter. It would help if you were alert and confident by learning all the tricks to achieve a fortune. In intraday trading, you will open a market position and close it before the day ends. You will hardly hold a market position overnight. In this trading, you can take breaks; therefore, you need not be glued to your screen analyzing the market trends so that you can place your trades. However, when your trading hour reaches, you need to shift all your focus to the job present. CFD have the benefit of using leverage. When you have leverage, you do not need a lot of money to enter the CFD market. You will contribute a fraction of the whole amount required, and your broker will 'lend' you the rest. The amount you will provide is known as the margin, and the ratio of the leverage to margin varies from one broker to another. Leverage is one reason the makes CFD an excellent option for intraday trading. There are various financial instruments that you can deal with while using CFD. The variety offers you some security, and you select the one you feel is best for trading at the time you want to trade. Many accounts with different brokers with different brokers so that you can have a variety of tools to choose from are unnecessary. Intraday trading in CFD is also beneficial in that you can take a short or long market position. The fluctuations you get while trading is manageable and easy to employ. Also, in intraday, since you will not hold your market position overnight, you will not be required to pay interest, considering that CFD is a leveraged product. The case will differ if you choose to trade CFD for a more extended period. In this technique, you hold a position for a short time. You have no risks for holding a position overnight. When you own a place for a short time, the funds you will not trade can still use them when a trading opportunity comes up at the right trading time.
  11. It is an excellent opportunity to have a robot that will trade on your behalf and guarantee your profits. As a forex trader, you dream of this opportunity since you will not be using so much effort, and at the end of it all, you will make profits. An automated trading platform is an application that will allow you to program some guidelines that will be used to enter and leave a trade. You can give the required entry and exit strategies, your money management, and any other rule into this system and will help the computer to carry out and monitor the market trends and place trades. The laptop can instinctively conduct your trades according to the guidelines you give. The entry and exit rules may depend on underlying circumstances such as the Moving average crossover or other more sophisticated techniques that need an exhaustive understanding of how programming occurs depending on the users' trading scheme. You only need a laptop or a computer and an internet connection to use the automated trading system. These systems are easy to access, especially if you do not have enough trading knowledge in the forex market. The arrangements are also cheap. In Forex, the automated trading systems include the expert advisors (EAs) and Forex robots. The mechanical trading systems that work best are made to study the market trends and the changes in currency prices through charts through their software. The software will spot a trading signal, the price variations, and any event or news that may impact the forex transactions. They will execute your trades to help you benefit and, at the same time, looking for a strategy to curb your losses. The automated trading system will also be responsible for identifying the currency pairs that will magnify your gains and place trades with the currencies. In some systems, they can allow you to decide on whether to place a deal depending on the market trends. The automated systems will simplify your trading and help you make significant profits. However, many risks come with them, and you need to carefully scrutinize them before you decide to use them in your forex trading.
  12. To trade in the forex market, forex market, you need to have enough know-how on different countries' economic and political nature. It is also essential to know the volatility in the forex market and how it changes from time to time. However, the knowledge of these things may not be as necessary as that of using leverage. Leverage knowledge beats them all. The Dodd-Frank Wall Street Reform has revealed that many forex traders have lost their money and continue to lose it in one way or another. Lack of proper understanding of how to use leverage is the leading cause of the loss. Leverage in a forex market involves you borrowing money from your broker so that you can invest. You will only introduce a small amount depending on the leverage-margin ratio set. In forex, you can borrow so much massive amount from your broker and gain more when you place your trades successfully. Before you select the leverage level you want to use; you should consider several factors. One thing you should do is make sure that your leverage is low. Maintaining a little leverage will most apply if you are not a risk-taker or do not like taking so many risks. If you are entering the forex market and are on the verge of learning the hacks for succeeding in this market, then low leverage should be your best option. Your leverage to margin ratio can be between 5:1 and 10:1; these are good low-level leverage you can use. Another thing you need to consider is placing trailing and limit stop orders. These orders will primarily benefit you by minimizing the losses you will get in case the market does not favor you. A limit stop will ensure that you can proceed with your learning on trading in the forex market and, at the time, minimize your losses. The stops will also help you reduce emotional trading. The right leverage for you will largely depend on your experience and how well you can manage the market risks. It will also depend on your comfort while trading. You need to understand well how to employ leverage before you start trading in the forex market.
  13. There are many mistakes you can do that will deter you from success in the Forex market. One common of them is being undisciplined with your trades. When you let emotions reign in your trading decisions, then you should prepare yourself for significant failure. While trading, there is a possibility that you can make huge profits and, at the same time, make many losses. If these losses are happening one after the other, they may drain you emotionally. They may make you lose your trading confidence as well as patience. To beat these issues, you need to have an excellent trading technique that will help you maintain your discipline. When you trade with no plan at hand, you will be preparing yourself for a big fail. You need to develop a good idea that will guide you through anytime you want to place a trade. Sticking to the plan also is a crucial thing. Your trading plan should also include the risks you are looking at taking and their management strategies. Therefore, you will be able to identify an imminent hazard and evade it before it is too late. You can fail terribly in the forex market by learning through trial and error, setting up better trading strategies from the mistakes that you may have committed earlier on while trading is an inefficient way to trade. You can avoid the trial and error by gathering sufficient knowledge on how you can successfully trade in this market. You can achieve this by formally learning or tracking the record of a successful investor. The latter is the most efficient way. You will also fail if you fail to get an adaptation mechanism in this market. Before you start trading, you should be able to know how the market moves. This will save you from significant risks and unforeseeable losses. The Forex market is highly volatile, and therefore, any change that may occur will not remain that way for long. Since you aim to succeed, you should be able to adapt to these changes and change your market trading ways. While trading in the forex market, you should not expect to accumulate riches instantly. It would help if you did not have unrealistic expectations for this market. Otherwise, you will result in being disappointed and consequently fail. It would be best if you put in more energy for you to succeed. You cannot do anything and at the same time expect to get returns, this will never happen if you do not work. If you abandon your market discipline and start hoping for success, you will also be abandoning your risks and its management rules. You should not expect to get anything in return. Poorly managing your capital and your leverage will also make you fail much. Many other things will contribute to your failure in the Forex market. Being disciplined, setting realistic expectations, learning how to trade, and, most importantly, having a viable trading plan and sticking to it will save you a fortune.
  14. Forex trading via social platforms has several setbacks despite being very helpful to the traders. First, there is a large number of traders and social platforms, therefore, making it difficult to choose the best. It, therefore, requires a lot of time and dedication to making the most appropriate decision. It is also difficult to predict future trends in the trade because some successful traders only care about the commission they will receive and do not pay much attention to the new traders with no experience. Thus no protection against risk is offered in these social platforms, and the new traders may incur a lot of losses. History of successful traders is not always an assurance of success; thus, copying their strategies may mislead the new traders. This is in the case where the new traders are not able to understand the masters’ concept of forex trading by themselves. The social platforms may not always have real-time information on forex trading, and therefore traders can be exposed to outdated content. This information increases the risks of making misinformed decisions, and this may result in losses. Some traders may end up copying previous trades and strategies that other successful traders used, yet they don't have enough capital. Thus, they are not able to obtain the expected profits, which may reduce their motivation. Slippage may occur where the expected cost of trade differs with the actual price. Slippage happens because of the difference in time between the execution of the order and the accomplishment of the trade; thus, making the traders pay an extra cost. Another con of social forex trading is that many fake forex brokers may mislead the new traders with no prior experience. Thus unnecessary losses may be incurred and make the new traders feel demotivated and end up losing hope in forex trade.
  15. Copy trading is a type of trading that allows traders to copy positions opened and managed by other traders in an automatic manner. Copy trading is a type of trading that will link several copying traders' funds to those of traders that already there. This is to means that any action that a single trader partakes will reflect in the account of the other trader, be it opening a position or closing a post following the proportion between copied investors accounts and those of the copied investors. The copying trader is presented with a chance to disconnect copied trades and solely manage them. Such traders also can close and copy relationships altogether. These types of investors are often given compensation by a flat monthly subscription fee taken from traders that are copying their form of trade. This kind of business has led to the development of what is known as an investment portfolio. With this, it is safe to say that a significant difference will come between copying and social trading in how the two to operate. Social trading being a form of trading that will present investors the opportunity to observe trading behaviors of people they consider peers and see as expert traders and thus follow their strategies. This is to mean that social trading will include the various capabilities of having to connect with fellow investors using such platforms that are primarily social and yet be able to find potential trading candidates by viewing their performance statistics. Furthermore, some platforms in social trading will provide ways to be able to sort and rank traders following specific performance parameters and, in this way, can make it easier for traders to locate investors that may see potential in them. Methods used in the two forms of trading will create a big difference since those of social selling are way too social while those in copy trading are not considered.
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