Daniella

Welcome Danny, and thanks for asking. What better way to maximize data breaches than buying cybersecurity ETFs? Backed by leading internet corporations, these funds present different cybersecurity stocks worldwide. That’s why you need the best in your portfolio. Topping the list is HACK that boasts of major holdings like Cisco, FireEye, and Akamai. This fund not only tracks companies developing software and hardware but also those offering cybersecurity services. It’s characterized by tight spreads as well as high liquidity and trading volumes. The presence of micro caps, however, affects block liquidity. Another option is CIBR. This ETF monitors corporations dealing with the creation, application, and management of internet safety on networks and devices. Dominant holdings include Splunk, Raytheon, and Okta. Not forgetting HURNTR that reviews the UCITS index. This index incorporates public companies that get a significant part of their earnings from online security. To be included in the index, a firm must be large in terms of shares and market value. Its liquidity should also be sufficient.

Hey Myles, Ranging markets are characterized by repeated highs and lows. They occur when an instrument’s values move sideways rather than top to bottom. There are several tools for spotting such conditions, and the ADX is one of them. While readings over 30 reflect up-and-down swings, those at 25 and below show horizontal shifts. Note that diminishing ADX values translate to weaker trends. You can also use the RSI, a technical indicator measuring the strength of vertical movements. In most cases, speculators consider readings beyond 70 as bullish and those beyond 30 bearish. On the other hand, a 40-60 RSI hints at a ranging market. This goes hand in hand with the ATR that presents the average difference of the latest candlestick’s highs and lows. An ATR with its MA below 20 periods separates ranges from bull and bear runs. Bollinger bands are equally useful thanks to their swift response to volatility. In general, narrow horizontal bands signify ranging environments.

Hey Walter, While LEAPS can run past two years, their exchange-traded alternatives last for three, six, or nine months. Needless to say, time is the major distinction between these options. But first, what are options? They’re instruments permitting an asset’s purchase or sale at specified strike values during or before its expiration. The option becomes a call if the holder anticipates a surge in the primary asset’s value and a put if they expect a dip. The fact that they give the speculated stock more time to unfold makes them less prone to time decay. Considering decay increases with an approaching expiration, the delta is higher in LEAPS than other options. This explains the close relationship between LEAPS and their underlying stocks. Their time advantage, however, renders them more expensive than near-term options. Moreover, LEAPS involve higher capital risks because of their hefty initial premiums. Worse still, they’re not available for all optionable stocks. The good news is LEAPS go beyond conventional options trading to offer hedging. In addition to being a wide-scale put cushion, index LEAPS safeguard your portfolio against industry-specific threats.

Hi Benjamin, Support and resistance zones are market levels where prices are likely to reverse. True to its name, a supports zone supports the price and prevents it from dipping further while a resistance zone resists price increments. Another distinction is where they form on a chart. Appearing beneath the price, support levels indicate a possible upside swing. Conversely, resistance levels appear over the market price and hint at a downside reversal. In most cases, investors with brief holding periods have smaller stops. The idea is getting as close as possible to the reversal to optimize the tiniest stop available while catching the upside. This is unlike long investors who prefer wider stop losses, so slight price swings do not eject them. Sometimes, the market defies the support and resistance to form new reversal points. This calls for reliable risk management strategies. Such scenarios are common during directional uncertainty and depend on the strength of the price movement. It’s not uncommon to lose your capital after following a false breakout. That’s why experienced investors wait for pullbacks before jumping on a trade.

Hello Dennis, Thanks for coming here, This bullish technique entails the concurrent acquisition and disposal of options with a common expiration month and primary futures contract. It offers two earning opportunities. The first is when the primary securities rise in value. Alternatively, you can maximize the time decay on your OTM options. The idea is aligning the underlying security’s value with your written options’ strike price. Your gains are limited if the asset price jumps over the short call’s strike price. What’s more, your losses are limited when the asset price sinks below the long call’s strike price. Despite the limited profits, you’re able to control your earnings by selecting your written contracts’ strike price. So to say, your return on investment is higher than choosing to buy calls directly. Another benefit is knowing your possible losses while placing the spread. The maximum risk corresponds to spread’s cost plus commission. A loss occurs if you hold the position to expiration and both calls lapse worthless.

Hello John, Arbitrage chases profits through the parallel sale and purchase of connected assets during a market imbalance. A triangular arbitrage, therefore, maximizes pricing disparities involving three currencies in an exchange. A quote variation enables the participant to purchase from a low-cost exchange and sell where it’s more expensive. Suppose you have currencies X, Y, and Z, where X is the base and Y and Z the counter currencies. The primary stage entails swapping X for Y. It’s followed by exchanging Y for Z before selling Z for X. The chance to profit from unsteady markets sets triangular arbitrage apart from other methods. It’s also low-risk provided you time your trades. However, broker delays or failure to top up a leg in the arbitrage hampers execution. Since arbitrageurs adjust price differences themselves, such windows are brief. This therefore calls for monitoring tools to identify the opportunities. These programs may be unavailable or too costly for regular traders. What’s more, exorbitant fees minimize profits or render the strategy a negative expectancy.

Hello John, Forex arbitrage entails the concurrent buying and selling of a security in separate markets while following a profit. Carry Trade You acquire a currency with a high-interest rate against one with a low rate. Provided your trade remains positive, the broker pays you the interest variation of both currencies for every day you maintain the trade. Calendar Spreads It features the purchase and disposal of options sharing strike prices and a primary stock but differing in their expirations. For long calendar spreads, you offload a short-lived option and acquire one with a longer term. Short calendar spreads, however, involve purchasing a near-term and unloading a long-term option. Reverse Carry Trades It merges an asset’s short position with its underlying futures contract’s long position. You can enter a position by selling your stocks and simultaneously acquiring an equal futures amount from the same underlying asset. The short-sale earnings should surpass the cost of your futures contract

Hi Kerry, Great question, thanks. ETFs are a common feature in a trader’s portfolio because of their diversification options. However, ETFs alone cannot resist volatility. This was seen in February’s bear market this year amidst COVID-19. Needless to say, gold has made a name for itself as an investors’ refuge during financial crises. However, you don’t need actual gold to access this precious metal. Enter gold ETFs. Backed by bullion, these funds constitute a certain gold portion per security. GLD is a good place to start. This company not only tracks gold’s performance with actual bars but also boasts of an attractive 0.4% yearly fee. You’ll be pleased to know the company’s bullion is kept in vaults. The prevention of a gold dip by central banks also gives GLD an upper hand. That notwithstanding, a pullback may be underway given the fund’s current performance. GLD is already at the three-quarters retracement stage witnessed in the 2011-2015 dive. This zone may offer resistance, considering the rise from the bottom was corrective. Market participants could also ditch gold for riskier assets when Coronavirus is managed.

Hello, Thanks for coming here. You can confirm a company’s legitimacy through its regulatory status. From FINRA to SEC, none of the major supervisors is displayed on TCM’s website. Again, there’s no evidence of its registration with the local state. The absence of a social media profile doesn’t help the situation either. But this doesn’t rule out its genuineness. Being a crypto service, it can be excused owing to the unclear licensing procedures in the digital market. The fact that TCM’s leadership remains anonymous raises a red flag. Knowing who’s in charge lets you gauge their qualifications and uncover their fraudulent past. The good news is TCM hasn’t encountered any security breaches. However, it struggles with traffic despite its clean record. This is understandable considering the website has only been running for 8 months. Even so, the lock icon and “https” sign before its address prove the site is safe to visit. Moreover, the domain is not blacklisted. With the cons outweighing the pros, be wary of this site.

Hi Sam, and thanks for asking. A hook reversal is a candlestick pattern that demonstrates a trend swing and may serve as a prompt to join or leave a position if combined with other technical signals. Bullish Hook Reversal Occurring in a downtrend, it features two candlesticks with the second one being within the first’s trading range. The second candle should include a lower peak and higher base than the first. The fact that it starts with a descent proves bears are in control until a reversal occurs. The bullish takeover is shown by the second candle’s low being higher and its high being lower than the preceding one. An uptrend follows the bulls’ dominance. Bearish Hook Reversal This short-to-medium illustration forms during an uptrend. It’s characterized by two candlesticks with the second candle being in the first one’s range. The second candle should display a lower peak and a higher bottom than the first. The opening ascent indicates bullish dominance. However, a reversal is initiated at the trend’s brief peak. The arrangement of the second candle’s highs and lows relative to the first’s tells you bears are in charge, hence, the downtrend.