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Ulrich Meyer

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Everything posted by Ulrich Meyer

  1. Hi, thanks for asking! Yes, Forex trading is riskier than other forms of trading in stocks. It can be especially riskier than stocks if you are a novice, and unable to recognize changing cycles in forex markets, which will lead to inappropriate and untimely responses and inflict losses upon a novice trader. Another very important factor is how the Forex market is susceptible to changes coming from outside, influenced by events that have nothing to do with the economy but still affect it. In order to be successful, it is necessary to have a good knowledge of the market and keep a careful watch over outside events, especially events that are taking place in countries from which currencies you are trading income from. As it is, it may look that forex is not worth getting into, but it is not so. After some time, and a period of learning, you will get used to it. And, it will be much easier for you to figure out the trends that are taking place, or trends that will be taking place in the future. After the initial losses, you will start to gain profit and will be more successful.
  2. Hello, thank you for asking! The number of shares that should be owned depends on the type of investment that you are making, in some lesser number is advised, in others a larger one. The ideal number of investments varies from time to time, from country to country, it depends on the time span in which you wish to turn a profit and many other reasons. Investors usually buy a larger number of various stocks, in order to minimize the risk of incurring losses, they do not only buy different types of stocks, but they switch and invest in different types of industries. So, if one of those industries is experiencing a downturn, they can rely on others. Researches have shown that by doing this diversification, investors are able to reduce the risk near zero, even in case of economic recession, and other unforeseen events. They always opt in favor of lesser returns and lesser risks, than for greater returns and greater risk. The average number of stocks owned by a single investor is around 15-20 different types of stocks, while in the US this average climbs up to 20-30. It is important to mention, the higher the number of stocks owned, the harder it gets to keep track of them, and predict their movements in the future. An optimal solution is an average number, which allows you to keep good management of your investments, and make sure that the risk is low, and returns are as high as possible.
  3. Hi, Japanese candlesticks reflect the emotions of traders by visually representing the size of market price movements using different colors. Traders utilize Japanese candlesticks to make their trading moves based on regularly emerging patterns that help predict the direction of the price in the short run. Similar to a bar chart, a Japanese candlestick also displays the market's open, high, low, and close price for the day. The candle consists of a wide part that is named the “real body”. The real body refers to a price range between the open and a close during one day of trading. If the real body of a candle is filled in or black, it indicates that the close was lower than the open. On the other hand, if it is empty, it tells us that the close was higher than the open. You can change the colors on your trading platform. For instance, you will often see that a down candle has a red color instead of black, and up candle can be green instead of white. Above and below the real body, you can spot the candle’s so-called shadows or wicks. The wicks display the highs and lows of that day of trading. So if the upper wick of a down candle is short it means that the opening price was near the high of the day, and the other way around.
  4. Hello, While some might argue, in my experience the best timeframe for swing trading is daily bars. It is certainly possible to swing trade in other time frames, however, the daily timeframe offers some really good benefits which are quite hard to ignore. First of all, out of all available time frames, daily timeframe is one of the most used ones. This involves both retail traders and mutual funds as well as other entities who have the ability to move the market. Minute bars, on the other hand, is not a timeframe that’s as nearly used as the daily time frame and as a result, it’s not as reliable either. Also, daily bars are really great as they close and open once a day, and traders who want to enter on the open of each bar have a whole night to make their move, providing traders with great flexibility.
  5. Hi, thanks for coming here. There are several different crypto exchanges where you can buy Tron. One of the newest and most popular exchanges is Binance. However, bear in mind that on Binance, you can buy cryptocurrencies only with other cryptocurrencies, which means you can’t use fiat currencies. Binance is very famous because you can buy over 100 different cryptocurrencies on there, including Tron. Binance charges 0.1% for every transaction, which is really low. Furthermore, if you buy a cryptocurrency using a Binance Coin, you’ll get a 50% on all fees. Another great crypto exchange is HitBTC. It’s been operating since 2013 and allows you to trade using fiar currencies including USD and EUR. This exchange lists nearly 200 different coins, including Tron. Trading fees are also 0.1% but for some cryptocurrencies, withdrawal fees are much higher. Other crypto exchanges where you can buy Tron are OKEx, CoinEgg, Mercatox, CEX.IO and more.
  6. Hello, thanks for asking the question. There is a number of useful indicators in day trading, some of which are the moving average (MA), moving average convergence divergence (MACD) and the relative strength index (RSI). The MA is used to identify the direction of a current trend, without the disturbance from the shorter-term price surges. This indicator utilizes price points of a financial tool over a certain time period and divides by the number of data points to provide a single trend line. The amount of required depends on the length of the moving average - 200-day MA demands 200 days of data. On the other hand, MACD serves to identify changes in momentum by comparing two moving averages. It’s very useful because it detects potential buy and sell opportunities placed around support/resistance levels. ‘Convergence’ in MACD means that two MAs are coming together, while ‘divergence’ means that they’re pulling away. Finally, the RSI is used by traders to detect momentum, market circumstances and warning signals for risky price moves. The value of this indicator is expressed between 0 and 100. For instance, if an asset is around 70 it’s considered overbought while an asset with an RSI of 30 is considered oversold. If you get an overbought signal for an asset it usually means that its short-term returns may be about to come to a head and a price reversal could be expected. Conversely, an oversold signal indicates that short-term price drops are coming to a head and a rally could be expected next. Other useful indicators for day trading include Bollinger Bands, Exponential Moving Average (EMA), Stochastic Oscillator and more.
  7. Hi, One of the main factors that made swing trading popular is the ability to take advantage of natural flows of the market. In other words, financial markets more in one direction only for a certain period and swing traders can use that to their own advantage. The fact that you’re constantly moving in and out of the market as a swing trader means you can identify more trading opportunities. If you take a look at the financial chart, you’ll notice that in most cases there’s a clear long-term trend but the market might not stay at the support or resistance levels. Additionally, swing trading is mostly based on technical analysis and that usually provides them with a specific point that serves as an indicator that their trade might go south. Just like any other type of trading, swing trading also has its limitations. For example, it’s important to remember that the market doesn’t always submit to support and resistance levels even though it points at them at certain levels. Also, the fact that each trade has its own risks means that you’re risking more money than usual in swing trading. Like I’ve just said, swing traders rely on technical analysis a lot. While that might have its own benefits, it also means swing traders have to put extra work. That’s exactly why swing trading is not recommended to new traders who do not thoroughly understand technical analysis.
  8. Hi, A fork in crypto is when the software is copied and modified. The original version of the software continues to operate, but it gets separated from the new one, which takes a new direction. There were instances when the fork occurred due to disagreements in cryptocurrency teams over how should they proceed. Several members of the team would have different opinions about the cryptocurrency’s future and they would replicate the crypto content on a different domain to take a different approach in the future. It’s important to point out that there are hard forks and soft forks. Hard forks refer to backwards-incompatible software updates. Hard forks happen when nodes implement new rules that are contradictory to old nodes’ rules. In that case, new nodes are able to communicate only with nodes that run the new version of the software. This results in a split in blockchain, one with old and one with new rules. A soft fork, on the other hand, is a backward-compatible upgrade, which means that new nodes can communicate with the old ones. With soft-fork updates, the newly-added rules usually don’t conflict with the old ones. A decent example of a soft fork would be the Segregated Witness (SegWit) fork, which took place after the Bitcoin/Bitcoin Cash split. SegWit update made changes to the format of blocks and transactions, but it was developed in a way that allows old nodes to validate blocks and transactions.
  9. Hi Dave, The difference in color regarding normal filled candlesticks is based on the change between the closes, while the color for solid candlesticks is based on change between an open and a close. A black candlestick tells us that the new close was higher than the previous one. In other words, a candlestick becomes black when the last close is up compared to the previous one. If the last close is lower than the previous, the candlestick would become red. When it comes to solid candlesticks, the colors are based only on the open-close relationships. I hope that helped.
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