Leah

Amid the 2017 market surge, John McAfee envisioned Bitcoin’s value at $500,000 in 2020. The cybersecurity expert raised the figure to $1 million later that year claiming a miscalculation of his prior assumptions. In October last year, he described mathematics as a let-down if the coin missed $2 million when 2020 closed. Even so, his opinion on the leading cryptocurrency has since changed. In addition to being outdated and clunky, McAfee said the coin lacked decentralized apps, safety, as well as smart contracts. This was after a past tweet disclosed the bet was a gimmick to attract new users. Referencing its pioneering role, he proceeded to describe Bitcoin as an old system relating it to the Model T vehicle. Not only that, he endorsed Monero and Ethereum citing advancements like privacy features while emphasizing Bitcoin’s failure as a form of digital cash. The sudden change of heart could mean only one thing; the bet is off.

Hi Paul, Thanks for coming here. When you are trading, be it Forex, stocks, commodities, or any other asset, you will need to know the action to take-whether to sell, buy, or hold. You get this information by using trade signals which you get either on your own, from another person or a software. This person or software is the signal provider. You can get the signals either via email, SMS, or alerts on your devices. Trading signals can be either paid or free, with the former being more reliable. The signals will help you get truthful information and save you the hassle of scrutinizing the market yourself. You should thoroughly research your chosen signal provider to get to know their performance well before engaging them. You can examine the reviews users have left behind. This is to avoid getting scammed or getting vague signals. The most important thing to check about your signal provider is that they have a public and proven track record confirmed by an unbiased third party. Remember also to check their charges as well as their ranking.

Hello Peter, June 1 saw Bitcoin rally beyond $10,400 in a short breakout that may have been triggered by uncontrolled COVID-19 government spending all over the world. Blockfyre head, Simon Dedic, believes Bitcoin will leap by 1,400% and reach $150,000. According to Dedic, the development will only feature six cryptocurrencies. This is unlike 2017’s massive rally in which most altcoins rose in value with Bitcoin’s record-high nearing $20,000. While some believe an ICO boom fuelled the surge, others attribute it to market manipulation. Placeholder founding partner Chris Burniske also hopes for more than $50,000 and $1 trillion in Bitcoin price and network value, respectively. But not everyone believes in a bull run. In a recent tweet, analyst John Bollinger called the rally a head fake. This is when prices seem to be going in a particular direction only to take the opposite one. Bollinger also advised investors to be careful or offload their Bitcoins altogether. Bitmex boss Arthur Hayes also maintains the rally has to hit $15,000 for it to count.

Hello Hakiza, Leveraged ETFs aim at doubling or tripling daily index returns using loaned money. Because of their compounding nature, traders get huge returns within short durations. This makes them ideal for investment methods involving high stakes. However, you only enjoy these benefits with the right ETFs. Topping the list is the NAIL fund. Following the DJSHMBT index, this ETF targets a 300% return from its daily benchmark. Apart from its 3X leverage, it spots opportunities in bull and bear markets. However, the instrument doesn’t chase the primary index beyond one day. The TECL is also worth mentioning. Tracking the IXTTR index, this Direxion product allows a 3X leverage, hence, favoring bullish traders with a short-term mindset towards technology equities. As such, this asset is not for you if you want to buy and hold. Not forgetting the UYM that translates to a 200% gain of the DJUSBM index. It also exposes you to multi-cap organizations in the materials sector. Since its leverage resets daily, prolonged holding results in compounded returns.

Hi Jessica, Great question, and welcome to the world of Forex First, you are trading a currency pair and not trading a currency. You are not simply purchasing or disposing a single currency, but you are purchasing or selling a certain currency against the other. In this scenario, the question becomes; what is the most profitable Forex currency pair to trade in? An apt answer would depend on your strategy. However, the GBP/JPY currency pair sticks out in 2020. High gains arise from focusing upon executing a trade strategy that rests on high risks to reward ratios. GBP-JPY currency pair historically allows moves whose risk levels rise from 2 to 10 times normal risks. The strategy rests on making much more money on your winning trades as opposed to the money lost on losing trades. This is the key to profitability arising from long term Forex trading. This strategy, in a nut shell, is the ability to venture into trades with huge risks versus rewards ratios, making it easier to remain profitable in the long run.

Hi Jovan, Thanks for asking, ETFs are winning investors’ hearts thanks to their diversification opportunities. But owning the asset doesn’t guarantee returns. You also need the right trading methods. As a beginner, you can test the waters with bond ETFs. Although their prices also shift, bonds undergo smaller movements than stocks. Dividend ETFs also boast of steady values. On top of that, they’re a source of passive income. Aside from returns, check the expense ratio before picking a dividend ETF. Another option is choosing causes you’re passionate about to stay engaged. For instance, ESG ETFs are perfect for nature enthusiasts. You can advance to riskier strategies when you gain experience. Take the case of volatility ETFs. While you may not know the direction the prices take, you’re sure the swing will be massive. Leveraged ETFs also bear a similar risk. Comprising of stocks, options, and futures, these ETFs multiply on a primary index’s performance. Since downturns are also multiplied, timing your purchases is necessary so you don’t lose your capital.

Hi Lindsay, From portfolio diversification and low volatility to dividend returns and liquidity, real estate stock has many benefits. But is it still lucrative during the COVID-19 crisis? America, Singapore, Japan, and similar top markets are already feeling the heat with homeowners delaying mortgage payments. Condos in the Philippines might also take a 15-20% dip before 2020 ends. If the 1990s and 2000s are anything to go by, economic turmoil is followed by shooting housing prices. A past report by the University of Granada in conjunction with the Chicago Fed attributes the hikes to increased bank lending. For starters, slashing interest rates for extended periods eliminates pressure from possible buyers. This together with the government measures aimed at economic recovery increase real estate appetite. Even so, timing remains a concern despite the market potential. While you may enjoy the current discounted prices, it could take months, even years, for conditions to normalize.

Hi Brian, Thanks for asking. The Commodity Channel Index or CCI, gives traders an asset value’s deviation from the asset’s statistical average. Traders apply it in defining cyclical conditions and the latest commodity market trends. To arrive at CCI, take the Typical Price, TP, of your chosen commodity, subtract the value of the commodity’s Simple Moving Average within the same period, that is, Average Typical Price, initialed ATP, and dividing the resulting value by the Mean Absolute Deviation, MAD, of the commodity’s Typical Price. The CCI oscillator lets traders identify extremes and trend strengths in prices. Some traders interpret price extremes when CCI falls outside the plus100 and minus 100 border, thereby looking for price reversals within such ranges. Another strategy features interpreting a plus 100 CCI as indicating a breakout and deciding to trade within this trend until this CCI ventures back under plus 100. Conversely, CCI falling under minus 100 creates a robust downtrend, signaling a trader to short positions.

Great question, Carlyn. Being a leveraged instrument, CFDs invite profit and loss in equal measure. However, a trader’s success lies in their ability to manage risks effectively. The first measure is setting stop-loss orders, so the system ends the trade at your chosen level. What’s more, avoid using all your free equity as margin. This ensures the account remainder is enough to cover losses while you hold a position. CFDs can also serve as a hedging tool when a temporary risk faces your long-term investments. Moreover, identify the risk/reward ratio before trading. Suppose each winning trade gives you $2, and each losing trade subtracts $1, the risk/reward ratio becomes 2:1. Not forgetting the relevant technical indicators for catching trends. For instance, the signal prompts you to make a purchase when a short moving average goes over a longer moving average. Most importantly, adhere to your trading strategy. Remember, investors have different tolerance capabilities, hence, unique risk management tools.

Hi Fernando, Upon unveiling its digital coin last year, Facebook termed Libra as a futurist international currency that could be the start of a new financial order. But the coin’s design is becoming less ambitious following regulatory hurdles and withdrawals by partners like PayPal, Stripe, and Visa. In a recent whitepaper, Facebook announced four measures to survive the regulations. The first one is combining this multi-currency coin with a single-currency stablecoin. The move will not only improve local commerce but also aid cross-border transfers. Secondly, it will build a compliance framework for the system’s security, therefore, countering money laundering and terrorism financing. It will also abandon the adaptation of a permissionless system. Hence, only approved stakeholders will be able to create infrastructure like wallets. This is unlike Bitcoin’s open architecture that lets anyone develop it. Lastly, it will increase the coin reserve’s protection. In addition to a capital buffer, the store’s assets will have high liquidity, quick maturity, and minimal credit risk.