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Fernando Cortez

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  1. Hello, thank you for your question! Many swing traders trade by assessing the risk and reward ratio, then according to this formulate their strategies and place stop-loss orders, with prediction where and when they can prevent the loss, and where and when they can turn a profit. For example, if they are risking $1 to make $3 that is a favorable risk to reward ratio while risking $1 to make $1 is not. Swing traders rely on technical analysis, which provides them with raw data based on previous historical values, that can approximately predict the price range and its movements, but if traders want to get in-depth knowledge they turn to fundamental analysis, which is more hands-on experience. So the advantages and disadvantages of swing trading are: Advantages: Requires less time to trade than day trading Maximizes short-term profit potential by capturing the bulk of market swings Traders can rely exclusively on technical analysis, simplifying the trading process Disadvantages: Trade positions are subject to overnight and weekend market risk Abrupt market reversals can result in substantial losses Swing traders often miss longer-term trends in favor of short-term market moves
  2. Hello, I would like to know about swing trading.
  3. Hi, thank you for asking! Technical analysis works by trying to detect market patterns, instead of trying to analyze security’s fundamental attributes. Professional analysts typically accept three general assumptions for the discipline: The market discounts everything - Analysts believe that every asset and part of a single company is included in the price and affects it. This is called market psychology. The only thing remaining is the analysis of price movements, which technical analysts view as the product of supply and demand for a particular stock in the market. Price moves in trends - Experts expect from prices to change without regard to the time frame observed, no matter how big or small the market is. Using this change, they can expect the future price movements of an asset, without any erratic movements. Most of the trading strategies are based on this assumption. History tends to repeat itself - Without exception, market movements are cyclic, meaning that they will surely repeat themselves, in some specific time. Technical analysis is used to predict when exactly will these price changes take place according to the historical data.
  4. Hello, I would like to know how does technical analysis work?
  5. Hello, thank you for asking! Penny stocks refer to the stocks offered for less than $5 per share. They are usually not traded on large stock exchanges, but only on some medium and smaller platforms. Because of this, and their association with smaller companies, and low value, it is sometimes hard to find buyers for penny stocks, therefore low liquidity is the main attribute of Penny stocks. They are considered highly speculative so only investors with high-risk tolerance should be investing in them, as they can reap great profits, but can also generate high losses. There are several reasons for such high risk and low liquidity of penny stocks, these are lack of information available to the public, no minimum standards, lack of history, low liquidity, and a high number of frauds related to them.
  6. Hi, I would like to learn about Robo-advisors.
  7. Hello, thank you for asking! For those that ordinary stocks market and all other interactions related to trading turn out to be too difficult, they can engage in social trading. Social trading works as a social platform, but instead of sharing media, you share trading ideas, exchange opinions, and provide advice where they are needed. Social trading platforms may serve as training grounds for inexperienced traders, where they can observe moves and results of trades, following the comments and advice of real professionals. There are many benefits to social trading, the most important being: 1.Quick access to reliable trading information-Instead of wasting time and searching for information online, which may take up valuable time, you are put directly in contact with professionals that provide advice and answers in real-time. 2.Quick grasping of the trading market-Being exposed to the market and all the interactions that take place on it allows amateur traders to progress rapidly. 3.Earning while still learning-Traders can earn money from the moment that they start trading, this can be done by copying moves from experienced traders, earning more and more as time passes. 4.Build a trading community of investors-This is perhaps the biggest benefit, social trading puts you on the same platform with other traders who face the same problems, and with brainstorming, you can come up with solutions quicker and easier.
  8. Hello, I would like to know is social trading legal in the U.S.?
  9. Hi, thank you for your question! Blockchain is a record-keeping technology connected to the cryptocurrency. It is a chain of blocks, which when it comes to cryptocurrency means digital information stored in a public database. Block are consisting of three parts: They store information about transactions such as date, time, and dollar amount of your last online purchase They store information about the participants in the transactions, such as buyers and sellers, where they create a combination consisting of sellers and buyers’ initials or usernames. They store unique information that diversifies them from other blocks, called “hashs”, they act as identification codes. So blockchains act as medians of trade, which store information about it on them, but in order to do so, these things have to happen: The transaction must occur, in order for it to be stored on a blockchain. The transaction must be verified by the regulatory body. The transaction must be stored on a blockchain. The block must be given a hash, which will give them identification, and make them part of a blockchain. Blockchain is moving on to be a really important median of transactions, providing more security, decentralizing them, and making them more accessible and transparent.
  10. Forex traders use Fibonacci retracement to keep track of points that specify where to put a market entry-level, identify profits, and place stop-loss orders. Fibonacci retracement is most commonly used in order to identify support and resistance levels of a specific asset. When these change, so does the Fibonacci retracement pattern, identifying their new levels. This strategy is most commonly used, when a market makes a huge upwards or downwards move, then recalibration takes place, which helps identify new levels of support and resistance. Traders plot the key Fibonacci retracement levels of 38.2 percent, 50 percent, and 61.8 percent by drawing horizontal lines across a chart at those price levels to identify areas where the market may retrace to before resuming the overall trend formed by the initial large price move. Using Fibonacci retracement strategies means that traders are relying heavily upon hard data and should keep emotional interference to a minimum. They can be applied in a short or long time period, usually in the short-term, as most trades in Forex are of such type.
  11. Hi, I would like to know what Cryptocurrency is.
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