Investing has been for a long time an appealing way of building wealth. While options are plenty, you should focus on the ones that come with high returns, even if that means often taking some risks. The stock market might have caught your interest once discovering how many investors have impressively improved their financial situation, but once you enter this market, you need to be well aware of a few relevant details. Regardless if you have already made your first stock investments or trade, if this entire domain is still rather unfamiliar to you, accessing more information will only help you maintain your winning position. Novice stock investors are usually recommended to keep in mind the following advice:
Set realistic goals
Start by setting a few objectives, but make sure they are realistic ones, you can actually reach with your current knowledge and experience. There are a few basic rules you need to ask yourself, and your future goals should be created based on the answers you reach here. Why do you want to invest in the stock market? Over what period would you want to get your cash back?
You need to be aware of the stock market’s volatility and understand that your funds might not be available to access whenever you want. The amount you will gain will also depend on the capital you invest, so if you don’t have the necessary funds at the moment, the stock market might simply not be the ideal fit for you.
Regardless of your exact goals and objectives, as soon as the stock market draws your interest, you should start saving. Until you get familiar with the entire market, you might manage to increase your savings, and actually have the money you need to pursue an appealing investment opportunity.
Don’t limit your investment to the stock market solely – explore Forex as well
Stocks aren’t the only options worth your attention, when it comes to investments. In order to maintain your tactics advantageous, you should occasionally look into short-term investment alternatives that come with a higher leverage. This means analyzing other markets.
Forex has become the most liquid trading markets on a global scale, so as someone who wants to gain a better control of their financial situation and investment practices, you need to consider exploring this market as well. It’s easier to make smarter moves as a stock investor, when you are also trading Forex and have another source of monetary gains, one that presents quick turnarounds. Forex trading can be the more volatile alternative.
Moreover, in comparison with stocks, as a Forex trader, you don’t have to keep a high percentage of your investment value in your account. So when your stock actions need to be put temporarily on hold, until your investment value increases, you can make money by trading Forex. And with such a long and versatile list of Forex Brokers accepting US clients, finding the right platform for Forex trading will also be easy.
Don’t skip on the basics
Just because you have read a few articles on stock investments or you know someone who is familiar with the market, doesn’t mean you have the necessary knowledge to jump right in. Before making your first investment, as small as it may be, make sure you have taken enough time to learn about the basic characteristics of the market.
Although you can become more knowledgeable of the subject once you actually gain a bit of experience, there are a few aspects to research before getting your first stocks.
Types of investment accounts
Types of stock market order
Financial definitions and metrics
Appealing methods of stock timing and selection
Once these things are clarified, it will be easier to make safer decisions, suitable for your situation in particular.
Investments should be diverse
Managing your risks properly means diversifying your exposure. If you have all of your money invested in a single type of stock, one bad event can trigger the loss of all your holdings, which is certainly something you want to avoid.
Diversification will give you a better control over potential losses, and help you maintain financial stability, even if your portfolio might often drop. Buy stocks from different companies functioning in different industries, as the majority of prudent and experienced stock investors do.
Be careful how much you invest
Once a great opportunity arises, it can seem tempting to jump in and invest a bigger amount than you would actually afford at the time. Just because a particular investment seems safe, and if things work out your favor, you could be making quite a lot of money, that doesn’t mean you should overlook the financial limitations you have set for yourself when starting out. One of the tips any experienced stock investor will give you that you should always invest only as much as you can afford losing. Risks exist with every trade, and all of your decisions should be made wisely, and not based on emotion or excitement.
When you are preparing for an investment, none of the aspects to focus on first is deciding on an investment limit amount. Carefully analyze your current possibilities, reach a conclusion, and keep yourself grounded with every trade. A major loss could not only prevent you from further accessing the stock market and its opportunity, but may affect your general financial stability, and thus your quality of life.
To conclude, the stock market can be quite promising, bringing you the opportunity to reach amazing financial gains, but considering there are some risks involved, being prepared with a few useful tips can make a noticeable difference. It’s important to enter the market fully aware of the most important insights – this way, you can make informed decisions and increase your odds of reaching the desired success. From diversifying your portfolio and exploring the Forex market, to setting optimal and realistic goals, there are the main aspects to focus on as a novice investor.
Gold is defiantly old school. This earliest form of money is extracted from the ground, hoarded away by misers, and traded for swords and armor (in video games). Since the dawn of Bitcoin, there has been plenty of ink spilled about “Digital Gold”. Bitcoin, finite in supply and used as money, had many of the earmarks of gold, although you can’t build anything out of Bitcoin or melt it down for scrap.
KaratGold Coin (KBC) has changed this. The first coin to truly digitize physical gold, KBC holders have the opportunity to exchange their KBC holdings to CashGold, physical bills with tiny bars of gold built into physical bills (just like Dollars or Euros), at Karatbars International’s ATMs (after the July 4, 2019 launch as part of the Gold Independence Days). This will be made possible because KaratGold coin was founded by a real gold mine operator and gold veteran, Dr. Harald Seiz.
Karatbars International was around long before Bitcoin and is a well known industry player. Founded in 2011, Karatbars was (and is) an attempt to sell small amounts of gold to the average person, in forms that are easy to use as money.
Gold used to be standard currency for thousands of years, but it’s a very clunky candidate for this job in 2019. Heavy and soft, gold is too valuable to use in coin form (each coin would be much too valuable for walk-around spending), and most nations have long abandoned the old gold standard. Karatbars got around these limitations by selling gold in tiny quantities. For example withCashGold notes, which contain 0.1 gram gold bars.
CashGold solved the portability issue of gold, but it still didn’t change that fact that precious few retailers and consumers accept gold as currency. Imagine going to Starbucks and trying to pay in CashGold. Dr. Seiz recognized this limitation on his innovative product, but he wasn’t stumped. That’s why KaratGold Coin launched last year, along with its spending app K-Merchant.
With KBC investors benefit from a high flexibility, meaning that if should they should not want to keep up with physical gold, they can spend their KBC tokens through the K-Merchant app.
Trailer Impulse K One Phone [English] - YouTube
K-Merchant is a payment gateway that unifies gold, KaratGold, Bitcoin, Ethereum, and various fiat currencies. Those who own gold remotely, through KaratGold, can spend it however they wish, without having to go through the trouble of finding a buyer for gold. Should they wish to buy more gold (or sell it), they can do so with dollars, Euros, BTC, ETH, and a growing variety of fiat currency options. A novel use case will also take place in the IMpulse K1 phone – a blockchain-driven smartphone upon which KBC is the native asset.
KaratGold is the first true digitization of gold. This makes it a candidate for widespread adoption in the current incarnation of the crypto industry. Volatility and market economics need not be the only basic of value in this new asset class. KaratGold Coin thus should be on every investor’s watchlist.
Forex market is the most liquid financial ecosystem on the face of the earth.
It spans 170 different currencies and exceeds $5.3 trillion in daily volume. That’s 53 times greater number than the number New York Stock Exchange boasts.
Currencies float freely against one another and that’s where potential rewards lie. Another huge investor magnet is high leverage. This means you can easily enter and exit a position for a small spread of your choosing.
Essentially, you bet against one currency by investing in the other currency in the pair. This may sound simple, but we have to break it to you. Forex investment is both highly risky and complex.
Those who want a shot at fortune have to look at a bunch of indicators and macroeconomic drivers. It all comes down to successfully predicting currency movements and taking action promptly.
So, here’s how to make Forex trading work as a long-term tactic.
Forex Investment Basics
Forex market hinges on an electronic network of banks, which operates around the clock.
The biggest players are commercial and investment banks that trade on behalf of clients. This domain is called the interbank market.
It’s highly regulated and has established internal processes for addressing credit and sovereign risks. Laws of supply and demand determine pricing mechanisms. Rogue traders have a marginal influence on the outcomes.
But, the internet revolution has leveled the playing field. It has opened the market to a legion of new individual investors.
Due to this high leverage, they can occupy large positions with very little financial means of their own. It’s not unusual to see leverages as high as 100:1.
Therefore, swing and day trading in small amounts is easier to accomplish than in other markets. A lion’s share of trading volume is generated by speculators.
But, this doesn’t mean Forex trading is their exclusive privilege. Many people have made a fortune working with longer horizons and bigger funds.
They operate as positional traders. The basic idea behind it is simple. You identify a trend and then follow it for weeks, months, or even years.
What you need to predict is where the currency will go and how large the price movement will be. It’s a game of patience and planning.
The Art of Risk Management
Like it or not, Forex isn’t a way to get rich quick.
It’s more of a marathon than a sprint. You patiently build your portfolio over a long haul. Going in fast and leveraged is an approach that backfires more often than not.
It goes without saying you need in-depth knowledge and a lot of preparation to execute this strategy. But, before we get to that, let’s address the risks that loom.
For instance, some segments of the market are also more loosely regulated than others. Likewise, instrument standardization is poor in certain parts of the word.
Unscrupulous activities are rife and brokers can re-quote prices. Sometimes, they even trade against their own customers.
That’s why it’s important to investigate brokers you’re dealing with.
In particular, figure out where they are regulated. In the US and UK, there’s much more oversight and reregulation is stringent. You can also count on some level of account protection in case of market crashes and dealer insolvencies.
Another major risk is the inherent volatility of currency pairs.
Large deviations of exchange rates are a common sight. Pairs can move several hundred pips in a matter of a single day. These twists and turns reflect supply and demand but are extremely hard to predict.
To make it even trickier, obtaining sufficient and reliable information is harder than it may seem. Countries like China aren’t really transparent when it comes to public debt, stock trading, and real estate market.
Big Picture Trading at Its Best
Despite these hurdles, you need to grasp the big picture.
This is to say factor in all available information on a currency pair. Going through the headlines and internet forums doesn’t cut it.
Thorough research is the way to go.
Keep up with the commanding drivers of the economy, also known as fundamentals. This set of factors encompasses things like CPI, tourism, economic strength, geopolitics, and employment rates.
They shape supply and demand for currencies.
Furthermore, notice interest rates are a key piece of the puzzle. They fluctuate depending on the currency you hold and direction of trade. Over time, a rollover effect kicks in, meaning you either pay or earn a bit of interest.
Rates of inflation are an important consideration as well. They affect the amount of return you score. So do the taxes.
For example, futures investors need to mind the 60/40 rule. It refers to tax ratio of long-term capital gains/losses and short-term gains/losses. On the other hand, over-the-counter investors are taxed under different IRS section contracts.
So, you want to grasp your financial obligations and play by the book.
Seek professional services if you’re unable to do it yourself. Namely, this useful company can help you with tax relief and filing. It has a solid track record and reputation.
Once you’re clear on fundamentals of big-picture trading, set the wheels in motion. Strive to make fewer transactions that yield greater returns.
Aim at a minimum of 200 pips per trade and buy stronger currencies against weaker currencies. Get on top of market trends and stick to your strategy.
That’s the way to build a rock-solid portfolio while staying on the safe side.
On Top of the Game
There’s plenty of evidence you can accomplish long-term success with Forex trading.
However, you need to take measures to protect yourself. Forex investment safeguards are inconsistent across the world. Currencies don’t move in line with your forecasts because you wish it so.
Therefore, set your biases and assumptions aside. Always do your research to minimize the risks.
Keep close eyes on economic fundamentals and indicators. Understand how their interconnectedness shapes your prospects. Purchase based on well-grounded expectations and sell according to facts.
This kind of educated decision-making supports positions you’re holding and gradually elevates your portfolio.
If you need more insights and training on smart investment, check our courses. Become a patient master of big picture trading and learn to play it smart.
Renting in itself is a great solution against spending a lot of money on a mortgage, but there are also many ways in which you end up losing money while renting. However, there are plenty of tips and tricks to use if you want to reduce your costs, so if you come up with a plan and stick with it, you’re most likely going to save up some pretty cash.
A very important thing to focus on is the rent burden and how to avoid it. According to the Department of Housing and Urban Development, a household becomes rent-burdened when more than 30% of the income is spent on rent. Depending on where you live and how much you make, you can figure out how many square feet you can actually afford to rent. If you manage to keep your rent under 30% of your salary, you’ve already taken an important step in minimizing your costs. But how could you reduce even further?
Proper and thorough research is essential; if you don’t take the time to look around and compare prices, sizes, and benefits, you might end up spending too much on something that is not even suited for your lifestyle. Use apartment search websites and customize your search with filters, both for prices and space, but also for specific amenities.
A great way to cut down on living costs is to get a roommate so you can split the rent and utilities. If you can’t find someone among your acquaintances, there are plenty of reliable apps for you to find a roommate.
When you want to save money, there are some uncomfortable, but necessary compromises to make. Prioritize needs over wants. There will be a lot of things that catch your eye and would be nice to have, but think about what’s necessary and say ‘no’ to costly options that are not useful to you in the long run. You will find many apartments with different amenities and features, but first of all you should decide on what you can afford and set up a price range.
Then, a very important aspect of renting is location. How much you are willing to compromise here should be decided ahead of time. Do you have the option of renting somewhere further away from your prime location and walk or use public transport to cover the distance? Does your lifestyle require little commute and does living closer to your work pay off more than you would spend on the location prime? These are all aspects to be decided on a case by case basis.
Another large spending area is furniture. If you don’t have any and consider buying furniture for your rental apartment, think critically about how often and how far you are going to move in the near future. Furniture is an investment for middle to long term, so if you’re not sure about your power to commit to it (and to moving it around), think about the benefits of renting a furnished apartment and see if they fit you.
You’ve found the perfect apartment and now it’s time to sign the lease. Always read the contract very carefully and ask questions about anything that is unclear. Both you and your landlord need to understand your obligations. Before you sign anything, take a tour of the apartment with your landlord and assess the situation. If there are flaws to the apartment, make a list and use them to convince your landlord to lower the rent. If there are issues which can be fixed, convince your landlord to reduce the rent by offering to fix them yourself. Of course, make sure that’s manageable ahead of time.
This part is about your behavior once you’ve signed the lease. If you want to save money, the best way to do it is to cut various costs you don’t notice throughout the month. Little changes in your daily behavior—like plugging out electronics when you leave the house or investing in smart tech to reduce your energy and water consumption—could stack up and result in a significant decrease on your bill.
Another trap one can easily fall into is eating out or ordering food on a daily basis. As much of a temptation as it is, eating out is only a costly, temporary pleasure. If you’re renting in a busy city, it’s likely that you’ll end up running from one place to another quite often, so invest some time in cooking as this will definitely prove to be both time- and cost-efficient.
About the author: Mihaela is a passionate reader and writer, with an affinity for language and linguistics, as well as the latest technological developments. She discovered her passion for real estate at RENTCafé, and you can read more of her articles on their blog.
Before you know how to look for a dead cat bounce approaching in the stock market, it is paramount that you know exactly what a dead cat bounce refers to, and how to look for trends that could signify that one might be approaching.
A dead cat bounce, similar to what the name suggests, refers to a short term period in the stock market that things start to get better. What is meant by this is, if a stock in the stock market has been on a long decrease over a period of hours, days, or weeks, a dead cat bounce is the period of time for which this improves – no matter how long it may be. However, a dead cat bounce is never usually long period of time – the market usually tends to return back to its previous lower state relatively quickly. A dead cat bounce does not necessarily refer to the stock market as a whole however – it usually refers to the short time that a failing or plummeting stock gets into a better state. A stock that has not been successful for a period of time is inevitably going to improve for a short period of time at some point in its life – this is the dead cat bounce (the short period of time for which the plummeting stock improves).
In short, a dead cat bounce is a stock that is temporary going through a better price point. They are quite common in the stock market, and they should not be mistaken for a stock that appears to be on the rise.
A dead cat bounce is not all bad however – even though the stock price that is experiencing it will decline once again very shortly. It can be a good thing in many respects:
They can tell you what’s going on in a certain area of the stock market and why – a dead cat bounce can tell you which areas of the market are at their strongest, and also which areas of the market are at their weakest. For example, if there is an area of the market called area A (could refer to any type of stock but we will use “area A” for the purpose of this example) and a stock in area A happens to experience a dead cat bounce, this can signify that this area of the market is weak at a certain point in time. It can help to inform you of what is best to do with other stocks that you may hold in area A of the market as they too could experience, or are more likely to experience, a dead cat bounce in the near future. Whilst a dead cat bounce might not have a great effect on one of your stocks in particular, it could help inform you as to what you would like to do with other parts of your holdings before they too experience losses. Based on the information that you obtain on why the dead cat bounce has occurred, you can plan into the future and examine the techniques that are best, as well as those trading techniques that should be avoided.
They can present an opportunity! It is, believe it or not, possible to gain something good from a dead cat bounce. If you have been/were considering purchasing a certain stock that is now experiencing a dead cat bounce, now is your chance to buy the stock at what will most likely be one of its lowest prices either to date, or ever! However, this requires on you having the knowledge on how to notice a dead cat bounce coming – in that you will need to know when exactly is the best time for you to purchase the stock, and then you need to know when the dead cat bounce is happening (not quite as hard to spot), and quickly sell your holdings in that stock during this brief time. It is important to remember that, although a dead cat bounce can be a good time to sell, it is not a good idea to rely on a dead cat bounce happening on a stock in order to make money – as there is every chance that one will not occur and that your stock will instead continue to decline.
If you analyse closely and over a long period time the price fluctuations of a stock, and more particularly the times at which it experiences a dead cat bounce and under the conditions which it does, it may become more easy for you to anticipate when they are going to occur in the future as a dead cat bounce is sometimes not something that only happens once to a stock. If you do successfully manage to identify a trend in that you know roughly when the next dead cat bounce on a stock is coming and you know which price points are likely to be the lowest, you could be putting yourself in a good position in that you will know when is best to buy and sell a security – resulting in profit!
So, how do you anticipate a dead cat bounce approaching? In order to anticipate a dead cat bounce, it is paramount that you analyse closely the activities and movements of the stock in question. You need to look at why these activities and movements take place at the times that they do, and more specifically what activities/events cause certain movements to take place in the price of the stock. For example, some things will cause the price of the stock in question to rise, whilst others will cause the value of the stock to fall drastically. If you are able to identify these, you will be in a better position to see anticipate when a dead cat bounce might happen as you can base your prediction on an event that has taken place that you know to cause a rise in the price of the stock. In order to anticipate a dead cat bounce, you must compare your knowledge of the stock and what affects it closely with a stock chart, and make your predictions based on these!
Everyone wants to earn a passive income. It’s easy money and let’s face it, who actually wants to work for their cash, right? Affiliate marketing is done by tons of different companies for one main reason: it works. Let’s use an example. Fortnite, the worldwide phenomenon, has taken over the kids, teens, and young adults. It’s free to play and some of the internet’s biggest streamers/content creators use it for content. Back when it wasn’t as popular as it is today, Epic Games, the developer of Fortnite, was making use of affiliate marketing by providing their most popular streamers affiliate links to help promote the game. With that affiliate link, fans of the streamers could sign up for free using the said link. The affiliates (or in this case, the streamers) would then get compensated for promoting the game.
It’s a pretty modern example, but let’s dive into the technical stuff.
What is affiliate marketing?
By definition, affiliate marketing is “a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.” In layman’s terms, it’s a strategy where an individual partners with a business in order to make a commission by referring readers or visitors to a business’ particular product or service. It’s one of the most popular methods of earning money online and once it is established, it can serve as a great passive income. Although it seems simple enough, there’s a lot more to it.
Here’s another example, let’s say that you’re a blogger and you want to become an affiliate of a certain company. Your job would be to place a link, button, or banner within a blog post so that your readers will be led to the products or services of that company. With that being said, a good blogger and affiliate will utilize a number of different marketing channels to promote content.
Affiliate programs and cryptocurrency
Now that you more or less know what affiliate marketing is, how does it relate to cryptocurrency? Well, it’s pretty much the same thing. The biggest exchanges will offer their users a certain percentage of commission on all trades done by affiliates. The rates vary per exchange so obviously, some deals are better than others.
These affiliate programs are designed to draw more people to these exchanges thus helping them grow and expand their business. Here are some of the available affiliate or referral programs available:
Changelly – Affiliate program
Changelly is a cryptocurrency exchange where people can change their fiat into a wide range of cryptocurrency. It searches for the best exchange rate and then they buy it for you at that price. Their affiliate program offers its affiliates a 50% revenue share for the life of the customer you refer to them. This means that you get a 50% commission for the deals made by the referred user. They usually allow payout the day after the transaction is made. Payouts are issued in bitcoin.
Coinbase – Referral program
Coinbase is one of the biggest bitcoin exchanges in the world so it’s no surprise that they have a referral program. Although Coinbase’s referral program is different from an affiliate program, it might be something you want to look into. Coinbase offers $10 for each person you refer that buys or sells at least $100 or more within 180 days of registration. Both you and your referral will receive $10 after the buy/sell. It’s not as profitable or practical as an affiliate program but it’s still a way you can earn a little extra money while using one of the biggest exchanges in the world.
Coinmama – Affiliate program
Coinmama is a bitcoin and Ethereum exchange. They offer a 15% commission for all your referrals that purchase from their platform using your personal referral link, including lifetime future purchases. They also offer banners that you can place on your website. The downside to their affiliate program is that their payout is monthly, toward the end of every month and you must have three successful orders made by at least three users to get a payout.
Paxful – Affiliate Program (BEST OPTION)
Paxful is one of the leading peer-to-peer bitcoin marketplace in the world. They offer hundreds of ways to buy and sell bitcoin with over 300 payment methods available. The Paxful affiliate program is by far one of the best programs out there as it comes in two tiers. Tier 1 affiliates are those that sign up on Paxful directly using your affiliate link. From trades done by these affiliates, you will get 50% of the escrow fee charged on Paxful. Tier 2 affiliates are those who sign up on Paxful using your Tier 1’s affiliate link. From trades done by these affiliates, you will get 10% of the escrow fee charged on Paxful.
As you can see, Paxful allows its users the biggest opportunity for the users to make passive income which makes it one of the best affiliate programs out there. Still have questions? Check out Paxful Affiliate Program instructional video to learn more.
Earn your passive income today!
There are a ton of ways to earn a passive income with cryptocurrency but affiliate programs are the best way to do so. Take a look at some of the examples given and explore each platform so you can find the best one for you. Once you do, you can be on your way to making money with an affiliate program!
Owners of start-up businesses often complain that it’s extremely hard to get financing. That’s partially true, even in the modern world of crowdfunded everything, alternative lending institutions and other non-traditional avenues for start-up funds. Some owners find it nearly impossible to get that first bit of seed money that can make all the difference. The vast majority of successful businesses went through several “mission statement” changes in their early years. A lot of that has to do with owners who change direction as they meet funding obstacles along the way. Lenders want to know their money is safe and will produce a return. As long as an owner can demonstrate the credibility of a sound, workable business idea, funding will eventually be within reach.
Banking industry professionals often cite four things that owners of new businesses should consider when funds are lacking and a traditional loan is out of the question. Here are four ways for owners of micro-start-ups to get funding, or at least make themselves more attractive to banks and other lending institutions.
Seek Personal Funding Sources
It’s almost too obvious, but many owners of start-ups overlook personal funding resources. If new owners are willing to “go all out” for a business idea, then it only makes sense that they’ll sell some of their personal assets (second car, boat, motor home, coin collection, and art work, for example) to bring in much-needed capital. When approaching a traditional lender, owners can up their chances of getting loans if they can show that they’ve exhausted every personal funding avenue available to them. In addition to selling off excess assets, owners can ask friends and relatives for short-term loans or can use their own credit cards for business expenses like rent, supplies and services.
Have a Relevant, Believable Business Model
It’s nearly impossible to acquire funding for businesses that are not, at least on paper, good concepts. Imagine how a lender would view a loan applicant with a company name like “New York City Crop Dusting,” or “Alaska Air Conditioning Repair.” Those might sound extreme, but lenders do look for sound ideas that are geographically appropriate. Companies that might be more likely to get a second look from lenders would include names like “Minnesota Chimney-Cleaning Company,” and “San Antonio Lawn Care Service.” The basic business idea needs to be not only viable by logical.
Have a Detailed Business Plan
This is where so many start-ups get stopped cold. It’s not enough to have a few notes about the “goals of the company.” Owners need to work up a detailed business plan that follows a specific format and includes prospective financial statements, marketing analyses, and more. For owners who can afford it, it’s wise to hire a professional to create a solid business plan.
Get a Few Customers on the Books
Most lenders say that it is a huge plus for prospective borrowers to already have at least one customer on the books before applying for a loan. Those first customers lend credibility to the business concept and demonstrate to potential lenders that there really is a market for the idea.
If you do an online search on fraudulent forex brokers, the number of results is mind-boggling. While the forex world is gradually becoming more coordinated, there are many fake brokers who should be identified and thrown out of the business.
According to investopedia, you can protect yourself from unscrupulous brokers by conducting an in-depth search for reviews of the forex brokers. Even if you’re satisfied with your research, make sure to open an account with limited investment and trade it for a month or two to see if everything is going well.
In this post, we’ll make you come across five fake promises/manipulations that forex brokers make and we’ll also highlight the potential ways through which you can save your hard-earned money from going into a total waste:-
Easy Profits in a Short Amount of Time
The general misconception about forex trading is that you can make quick cash without putting in much effort. There are forex brokers who also claim the same and promise fast returns through automated solutions and EAs. However, the fact is ‘MAKING MONEY IN FOREX ISN’T EASY’.
Beginners generally make the mistake of collaborating with a fraudulent broker who persuades them with false claims of huge profit returns. Traders usually end up losing money which goes to the broker’s account. Keep in mind, the role of forex broker is to just facilitate the trades. Even if you’re a highly proficient trader, there is no such thing as guaranteed profits in the forex world. So, better do your research before trusting any false commitments and fake promises.
2. Use of Forex Robots to Make Guaranteed Profits
There is no denying the fact that automated trading solutions have simplified the trading procedures. Today, you can find hundreds of forex robots and other tools and resources that can help you make better and informed trading decisions. The problem arises when you have to find the reliable automated solution for your trades. There are brokers who claim to multiply your capital by using forex robots or EAs.
Forex market is highly volatile and uncertain and you cannot expect a broker to help you become a millionaire in just a month or two. Stay away from a broker if he is trying to be overconfident about his offerings.
3. Incomplete Signup Process
When a broker is a cheat, you will observe that things begin getting suspicious right from the start. You will notice that the broker’s proprietary platform is difficult to load and you should consider this alert a wakeup call. Keep in mind, any professional forex broker would not delay things. Ideally, they will provide you with a demo or live account as soon as possible.
4. Price Manipulation
There are brokers who exploit the prices that they charge. For example, they could rip you off on a spread markup. The genuine brokers typically have pips in between 1-3 for basic currency pairs. You can easily spot a fake broker if he is offering you high spreads on the same pairs.
As your own money is involved in this process, you should pay attention to all the indications; be it big or small to save yourself from the money-stealing scam.
5. Look for Communication Errors
Fraudulent brokers will try their best not to tell a lot of information to the traders. If at any point you feel that the communication between you and your broker is stunted, it’s a clear indication that there might be something dubious. Generally, they ignore your queries and confusions so as to not to leave a trace of their commitments. Thus, it is important that you do not compromise on customer service when selecting a forex broker.
Things to Consider Before Choosing a Forex Broker
The best way to avoid any possible forex scam is to give proper time to your research. Below you will find some of the factors that can help you select a reliable forex broker for your trades:-
The first and the most important aspect that a reliable broker must have is great security. Luckily, there are many regulatory agencies worldwide that separate the reliable from the scam. Do an in-depth research in that area. Read out independent and neutral forex broker reviews on the web.
Deposit and Withdrawals
Forex brokers generally have no solid reason to make it difficult for you to withdraw your returns. Keep in mind, a reliable forex broker will let you deposit and withdraw funds without any difficulty.
Make sure the trading platform of your chosen broker must be lasting and user-friendly. Look for the platform that comes with free newsfeed along with amazing charting tools. Lastly, make sure the services includes impeccable aftersales support.
Forex trading can be challenging at times. To earn good profits and to avoid the scams, it is important that you do thorough research on your part. Take a hint from this post and select the most dependable forex broker for your trades.
Unless they are about to go on holiday, the average person on the street doesn’t think much about exchange rates. However, they matter a great deal to businesses, real estate investors, and finance professionals.
Just like poker, Forex trading is a hard way to make an easy living. To the untrained eye, there’s doesn’t appear to be much to it: buy currencies when they plunge, and then sell once they rally – right?
If it were that easy, everybody would be doing it. Currencies are volatile by their very nature – scores of factors can influence the value of a nation’s money supply. Many are impossible for the casual observer to predict – unless you had an inside source, you’d have no idea whether a country’s central bank was going to raise interest rates or leave them be.
Other factors also play a role in currency movements – these include employment reports, energy production, or the election of a non-status quo government. All can inflate or deflate the value of a nation’s currency.
How can professional Forex traders (or anyone else who has to move money across borders) overcome unpredictable markets? In this article, we’ll teach you how to use hedging instruments to protect yourself from financial ruin.
The world is a crazy, volatile, unpredictable place
If this world is a simulation (like Elon Musk suggests it is), it’s certainly a convincing one. The sheer volume of crazy events that happen from year to year makes it impractical to think any programmer would create such a system.
The utter failure of our society’s leading experts to predict ‘black swan’ occurrences like the Great Recession makes it next to impossible to predict where currency rates are going. According to IMF macroeconomist Prakash Loungani, we have failed to predict 148 out of the last 150 recessions – a stunning failure rate of 98.7%.
It is shocking that in the 21st century, we are still not able to foresee macroeconomic events that could have dire consequences for businesses and individuals. Of all people, we’d expect Janet Yellen, former chair of the Federal Reserve, to recognize the warning signs. However, even she missed the forest for the trees, acknowledging in 2016 that she didn’t see the risk that the 2000s housing bubble posed to the economy.
Knowing this, how can any trader (let alone non-finance professionals) predict microeconomic events, like day-to-day movements in currency markets? They can’t – but it doesn’t stop scores of them from trying every single day.
Forex trades are highly leveraged – this makes it easy for some traders, who are motivated by the desire to make quick money, get in over their head. Expecting a currency pairing to move in one direction, all it takes is something like the sudden imposition of tariffs to clean out a trading account.
Hedging your bets: introducing the forward contract
The forward contract is one tool in their arsenal. What is a forward contract? It is a deal between a buyer and a seller of a commodity (in this case, currencies) to execute a sale at a future date at an agreed-upon price.
They are similar to futures contracts in many ways, but with a few key differences. First, futures are traded through an exchange, while forwards are private deals that are loosely regulated. Second, futures are settled on a day-to-day basis, while forwards are paid out on the date of maturation. Finally, futures are bought mostly by speculators, while forwards are favoured by parties who intend on completing the contracted transaction.
For these reasons, forward contracts are preferred over futures for hedging purposes. But, how exactly does forward contract pricing work? Let’s say you’re British – you want to buy a holiday home in Canada, but you and your seller are worried about the impact that oil price fluctuations or the outcome of Brexit would have on the GBP/CAD pairing.
To protect each other’s financial interests, you both come to a negotiated settlement that locks in a guaranteed exchange rate, like 1.70 CAD:1 GBP. While either party may have to pay more or earn less than they otherwise would, the cost certainty created prevents a situation where one side’s finances are adversely impacted by unexpected movement in the markets.
Where can you get your hands on a forward contract?
About to purchase real estate abroad and want protection from sudden currency fluctuations? Taking up currency trading and want to reduce your risk of ruin? In these and other situations, forward contracts are often the best way forward.
Forward contracts used to be hard to secure. Not anymore – these days, an increasing number of money transfer companies are offering these products to their customers. Some providers provide terms as long as 24 months – this covers business transactions (e.g. paying vendors & offshore employees), real estate, the repatriation of expat bank accounts, and much more.
Currency markets can get rough: protect yourself
One unexpected move in the markets is all it takes to inflict economic pain on a business or an individual. By employing hedging measures like forward contracts, you can buy yourself some badly-needed peace of mind.
Typically, most Wall Street bound students will participate in various modeling bootcamps or online programs like Wall Street Prep or BIWS to get their technical skills up to par for interviews.
Yet, while the content may be great, programs like those don’t have much impact on students actually landing interviews.
Why? We all know relevant experience is key.
What intrigued us about Invest Like The Street was it’s claim to be structured like an internship, not a class, to give students the relevant experience needed to land internships at some of these top firms.
After seeing a good amount of positive reviews online, we decided to dig a bit further
The Combination Of A Class & An Internship
We ended up reaching out to the program’s founder Todd Massedge, a former buy-side analyst who created the program after seeing the need for something that could give students more relevant experience to better qualify for jobs.
According to Todd:
“Wall Street is totally backwards. Most entry-level investment banking jobs and even internships require a year of experience. How the hell are students supposed to get that so early?”
“The closest thing I ever saw to relevant experience that Wall Street firms look for is student-run investment funds. You get a couple million dollars of the school’s money to invest. That’s a serious job and legit real world experience. I participated in one during my college years, and once I added it on my resume, all these companies were 10x more interested in me.”
“I took that concept added in work related to Investment Banking, Private Equity, Asset Management, etc and that’s how the program was born”
Todd gave us access to the program so we can take a better look.
Each student is paired up with a mentor (either Todd or one of his 2 other partners) and assigned two to three companies they will complete a variety of assignments on throughout the program.
For example, if a student goes through a lesson such as learning how to build a LBO model, after they’ve gone through, their mentor will ask them to build a LBO for one of the companies they were assigned. Once completed, they’ll submit their work for feedback, and go back and forth with their mentor until it is done properly.
It’s some pretty serious 1-on-1 mentoring for students, and this type of work with their mentor allows students to add the program on their resume as experience.
According to Todd:
“Our students have told us companies love seeing the program on their resume. While it’s not pure internship experience, companies are able to see the work and experience students completed during the program, and it allows students to show these companies ‘Hey, I already know how to do the work for this job!’”
“It’s the best way for students to differentiate themselves from their peers.”
Job Hunting And Guidance
Another interesting claim about the program, is how each mentor helps students throughout the process of landing a job or internship.
This includes everything from resume editing, networking help (finding people to reach / writing cold emails), and even interview prep.
According to Todd:
“The reason we do this for students is because the whole point of them participating in the program isn’t just to learn all this fancy modeling. They want money. They want a job. We want them to be able to take what they learned and convert it into a job. That’s the best social proof for us”
The reviews we saw on Trustpilot tend to concur, with a lot of students attributing their success to the program and the mentorship they received.
Our Rating: 9 / 10
While we certainly agree courses like Wall Street Prep and BIWS have solid content, we’d give the thumbs up here to the Invest Like The Street Program.
Getting both experience to put on your resume and a 1-on-1 mentor to help you land a job seems like a no brainer when you’re pretty much paying the same amount you would for either WSP or BIWS.
We give the Invest Like The Street Program a 9 out of 10, mainly because it’s less established than the aforementioned two.
If you’re looking to get some relevant experience on your resume and someone to help you out the whole time, ILTS is definitely work a look.