Posts tagged: trading

Four effective ways to protect yourself on the financial markets

money marketWhen it comes to trading on the financial markets, you owe it to yourself to stay safe. After all, it is your own money that you will be risking! When you add in the fact that modern online trading sees you handing over your sensitive personal and banking data to brokerages, making sure that you stay fully protected is vital.

Of course, this should not scare you off from investing in the global financial markets! It is still a reputable investment method favored by many big names, such as George Soros, and one that you can take advantage of also.

Awesome tips on staying protected while trading

When it comes to staying as safe as you can, there are two things to think about. One is safeguarding against online scams and people trying to dupe you out of money. The other is how to trade in a way that protects you from the market turning against you in an extreme way.

Here are a few ways to avoid both:

1. Choose a regulated online broker

To begin with, we will look at how to keep your cash and personal details safe when trading the financial markets. Online trading has made this open to everyone now and has made investing in the markets simple for all. As with anything online though, you do need to keep your wits about you! Before handing over money and personal details to the broker you will use, check out their reputation and reviews online. Make sure that they are regulated by the relevant authorities for where they are based and also have secure website protection such as SSL or 128-bit encryption.

2. Personal cyber security

Another great tip to stay safe while trading online is to always make sure that your own cyber security is up to scratch. Change passwords to your broker and other sensitive accounts regularly so that no one can break in. You should also keep your own PC’s anti-virus software up to date at all times.

3. Diversify

When it comes to protecting yourself from major market crashes or moves, diversification is advised. This sees you spreading your investments across a range of asset classes, sectors and companies. If the market does move against you, then diversification will avoid it wiping you out totally.

4. Get the latest news

One great piece of advice for staying safe in terms of the markets themselves is to always be up to date with the current financial news. This will allow you to make the right trading decisions and manage your portfolio effectively so that you do not suffer big losses. Hammerstone Markets Inc offers a professional news feed service that many traders rely on to protect them in this way. Sign up for a free trial today to see what Hammerstone offers.

Knowledge is power

The last and perhaps best piece of advice for protecting your money when trading is to simply know what you are doing! Too many traders rush into opening trades before they know how the markets work or what their overall plan is. Take the time to educate yourself a little first and this, combined with our other tips, will help a lot.

Online Financial Market Trading Scams: Should You be Concerned?

money trading“I loved Internet businesses, having built and sold one. And I loved the financial business, despite the fact that it was almost all a scam.” – James Altucher

One of the most critical elements of transacting in any form online is the need to pay attention to Internet security. his point is illustrated by the latest news releases such as Facebook’s most recent security breach that was discovered on 25 September 2018. In this incident, about 50 million user accounts had their personal data compromised in one form or the other.

Additionally, Google announced that they are shutting down Google Plus because of a security bug that was discovered in the second quarter of 2018. As an aside, the company did not announce the issue when they discovered it as they were concerned about “regulatory scrutiny and reputational damage.”

However, be that as it may, the salient point here is that Internet security breaches occur across all sectors of the online world, including the online trading industry. Consequently, the hype around, and emphasis on, ensuring that you are in a position to protect your personal information, especially social security numbers, identity numbers and banking details cannot be underestimated or ignored.

Answering the question: Should you be concerned about online trading scams?

Personal Internet security across all Internet channels is equally important and should never be underestimated. However, this article’s emphasis is on the online financial trading industry. Thus, further discussions will be limited to this sector even though the basic principles are relevant across all aspects of global Internet usage.

The simple answer to the question of whether you should be concerned about fraudulent online trading brokers is: Yes. For all the reasons as set out in www.jonesmutualscam.com, not only should you be aware that dishonest online brokers are waiting to divest you of your finances, you should also actively investigate all online brokers for their legitimacy before you open a trading account with them.

Ways to find online trading scams

Consequently, the most crucial question that must be asked and answered is how to determine whether an online trading website is owned (and operated) by a fraudulent or legitimate company.

Here is a summary of the most pertinent points to determine whether an online trading company is genuine or fraudulent:

Risk warning (or the lack thereof)

Does the broker’s website prominently display the following risk warning (or a variant thereof)?

“Online CFD Trading has the potential to yield high profits, but it also involves significant risks. For this reason, consumers are advised not to trade funds that they cannot afford to lose. The trading outcome is dependent upon an unpredictable market. It is possible to lose one’s initial investment, and we… recommend that traders devise a money management system… to protect their investments.”

The rationale behind the need for genuine brokers to prominently display this information is that, apart from the fact that it is a legal requirement, it is a reliable indicator that the broker is vested in its traders’ success rather than accruing large sums of money for itself.

On the other hand, a scam broker wants to relieve you of your money by convincing you that trading on its online trading platform is virtually risk-free. Furthermore, the scam broker would like to you believe that it is safe to invest large sums of money at any given moment. However, sight should not be lost of the fact that the opposite is true. And you should only invest money that you can afford to lose.

Thus, it is crucial to stay away from all online financial market brokers that insist that CFD trading is either low-risk or risk-free.

Website UX and UI

An online broker’s website’s usability (UX) and user-interface (UI) are essential parts of a trader’s success and profitability. And a bona fide broker will invest in an easy-to-use, simple to understand website and online trading platform.

Conversely, if the online trading platform, as well as the rest of the site’s navigation, is not intuitive and simple to understand, then it is not worth opening an account with this broker. Moreover, a sloppy, difficult to use website can also be a clear indication of a fraudulent broker.

How should you plan for a proper trading method?

money tradingTrading is simple and hard at the same time. It could be either one for you. Or you might experience both while you are in this business. But, if you manage to make a good and simple plan for the growth of your business, it will be very easy for you to maintain your trading performance. With time you can improve your performance and quality of your trading. For that, you must have a basic method of trading. It will be the skeleton for your trading process. And all of the fleshes can be modified according to your preferences. Today we are going to talk about a simple method of trading. Hope you will use this technique for designing your trading approach.

Long lasting trades is first

You might be thinking like a normal business while trading in a marketplace. But here, it is actually the opposite. To make profits, you don’t have to trade too much. If you can trade with efficiency for a long time, it will help you to make a good amount of profit. And the amount would be far better than winning multiple trades. This is the secret of the trading business, to be simple and relaxed. Because with that environment, your head remains sharper than being busy with trades. So, it can think properly and use the strategies in your trade’s plan correctly. And when you can execute a trade correctly and you keep it open for a long time, it will make you a lot of money in the end. So, always try the long trades.

Learning from your mistakes

Learning from your mistake is very hard. But the professional Aussie traders always rely on their past trade to make a decent profit from this market. You might be thinking about the digital journal in the CFD trading industry. Being new to this industry it’s very obvious you will get confused with the long-term outcome of this market. But this is just like your traditional business. You can’t make any real progress unless you trade the market with discipline. To be a disciplined trader you must work really hard. But this is not enough to ensure your profit factors. You must develop the unique skills to learn from your mistakes. Fix your existing issues with the extreme level of care and trade the market with logic. Forget about the big winners even though you have access to high leverage accounts.

Using the daily charts

Before executing any trades, you must observe the condition of the market first. For that, you will have to look at those price charts that are changing in real time. It defines the condition of a market in any current situation. Looking at the charts also have some effects on your trading performance. When you use the smaller time frame charts, it will bother you more than using a longer time frame chart. Because the prices will be frequently changing, you will have to look at them more often. You have to keep up with the market to trade. But, being too busy with chart watching, you might get distracted at the right moment you have to trade. So, you must use longer time frame charts for example at least with 1-hour time span.

Focusing on the position

Timing is necessary for your trades. Otherwise, they might not make good profits. Because the market is not obsolete and it is constantly changing. One minute it could be by your side and the other it can be the opposite side of your trades. So, you must trade with accuracy on time. It is not possible for every trader or every time. But, you must try to improve yourself with time. If you have the focus on timing, one day or another it will get right. Just stay relaxed and look for the right moment to pull the trigger.

7 Online Buying Tricks Revealed: Your One-Stop Guide to Selecting a Reputable Precious Metals Dealer

precious investmentsIn uncertain economic times, having gold on hand is a surefire way to liquidize and protect your assets. Even in a stable economic environment, gold is a safe haven asset that will never fail you. This is because gold’s value increases instead of decreases in direct relation to the decline of value in paper investments, such as stocks and bonds.

To minimize or even eliminate a fall in portfolio value during economic collapse it’s best to invest in uncorrelated investments. What this means is that you want to own assets that will move the opposite way of other investments when economic times become uncertain. Gold is one of the few guaranteed investments that are uncorrelated to many other investments. This makes it a very safe investment that has proven to remain positive when stocks fall.

This means that allocating some of your investment to gold is a sensible and solid choice. However, the buying of gold bullion is not always as straightforward as one would hope. There are plenty of precious metal dealers who will gladly take your money without having your best interests as a customer at heart. To avoid falling for an unscrupulous dealer, you’ll have to do a little research into finding the best dealer so you can purchase gold with confidence.

Online vs. Local

In general, there are two main ways to buy gold: online or locally (in person).

Local precious metal dealers can be found in cities around the world. However, brick and mortar stores will often come with a lot of overhead. This is due to rent, paying employees, security, and more. This added overhead and the fact that local gold dealers often have lower sales volume means that they will often have to charge more for gold bullion to make up for their costs.

On the beneficial side, a local gold dealer will mean that you will be able to physically inspect the bullion and take immediate possession of it when you purchase it.

Local dealers also have more of a reason to care about their reputation in the immediate community they serve, which may translate into higher quality of service when dealing with them.

Also, if you’re only buying small quantities of gold and you’re paying for it with cash, your purchases at a local dealer might not be reported to the tax authority and can stay confidential. If this is something you are considering, make sure you discuss it with your dealer to make sure you stay below the threshold for reporting.

The other option for purchasing gold bullion is through an online dealer. Online dealers typically do more business and will have higher volumes of sale and much lower fixed costs. This means that you can often find good gold bullion at a solid discount online.

Online dealers will have a much more varied range of products in stock and many even offer convenient buy-and-store programs that permit you to purchase the gold bullion and then keep it in an insured and protected location made available by the dealer. This can be very beneficial since storing your own precious metals can be risky.

Some people are nervous buying bullion online, since it is such an expensive product. However, if you are able to find a dealer with a long, solid history and positive reviews, you will most likely be in good hands.

Unfortunately, buying gold online means that you will have to pay for shipping and handling costs (which are not cheap when it comes to materials of this value), and you will have to wait to physically take possession of your gold. Some online gold dealers like Lucius Precious Metals offer free local delivery for orders over a certain price point, which can be something to consider if you’re in the area.

What to consider when buying gold for delivery

If you are purchasing gold online and looking to have it delivered to you, you’ll want to consider a few things.

First, you want a dealer that has a strong and solid reputation and years of reliability. Read customer reviews and check out investment forums to make sure your chosen dealer doesn’t have any shady reports out on them.

You also want to make sure that the dealer sells only gold coins and cold bars from LBMA-approved wholesalers. This is your best guarantee that you will be purchasing authentic coins and bars.

You’ll also want to check out the dealer’s premiums on bullion. This can vary widely throughout the industry and is not a set-in-stone number. Lastly, check out the difference between buying and selling prices on the dealer’s site, which can be as high as 10% or more.

To maximize your long-term profits, you need to work to find a dealer who is reputable and trustworthy and offers low premiums.

What to consider when buying gold for storage

If you’re buying gold for storage, you still want to check out a dealer’s reputation, bid-ask spread, and other factors mentioned above, however there are other factors that come into play when buying gold for storage.

For one, you’ll want to examine the storage facilities where your precious metals will be kept.

Gold bullion should be stored with a reputable, separate entity so as to reduce counterparty risks. Ideally, you’re looking for an LBMA-approved vault provider like Brinks. These types of companies store gold reserves for massive financial institutions and government bodies. This assures that your gold is being stored in a secure environment.

When storing gold, make sure that your dealer offers insurance that will cover the full replacement value of your coins or bars in the event that something were to happen to them. Full replacement means that you will get back the physical equivalent of the gold lost, and not just the cash value—which is based on the spot price of the metal.

You’ll also want to make sure that your gold is fully allocated to you. This means that it is held in your name, you are the outright owner, and the gold can be made available for delivery or sale at any moment. Unallocated gold bullionis shared by investors who own an interest in the bars, which raises all kinds of liquidity issues that we recommend avoiding.

Boost your financial market trading knowledge with these money-making tips

finance tradingWhen trading the financial market, and especially when indulging in CFD trading, you need to stay up-to-date with what is going on in the world of currency trading. With that said, you need to be careful as to where you extract your knowledge from. According to Miguel Wellington, one of the top financial advisors at Jones Mutual, some news websites may distribute false information about what is happening in the finance world. In turn, you use that information to decide what direction you want your trading venture to go. That can cause you to lose your hard-earned money, all because you didn’t do your homework properly. Now, how does one gather financial market trading knowledge in order to make more money?

Find your own trading method and stick to it

Every person is different and will see the financial market differently, although everyone wants to achieve the same thing from it – to make money. Many people think that trading the financial market is something one can learn how to do overnight. That is where the confusion comes in. Rookie traders feel that they should trade by gut and often; this is where huge losses occur. The secret to success lies in choosing a trading method that suits your individual needs – and then you need to stick to it. Many expert traders believe that the price action method of trading is the best way of making more profit. This entails keeping an eye on raw prices while focusing on high-probability price patterns that repeat themselves. However, it is up to each trader to choose the way they feel most comfortable trading.

Trade on higher time frames

For a beginner trader, this may seem like something that should not be done. After all, the lower times frame your chart is divided into, the more chances you have to make different trades. While this is true in one sense, it can cost you a lot of capital in the long run. Choosing to trade on higher time frames will give you more valuable information as the candlestick on your chart has had a full 24 hours to build up to where it stands now. With that in mind, you have a more solid notion as to where the market is heading and whether it will be profitable for you to make a trade or not.

Don’t watch your charts all day long

Yes, it’s something all traders struggle with. If you sit in front of your computer all day long while keeping a close eye on the market charts, you will jump at every spot where it looks like you might be making profit. You might also want to close a trade if you see the market is dipping a little. However, if you trade the daily chart, you only have to look at your charts once a day, decide whether to enter a trade and set your stop loss and take profit levels. Once that is done, you can either bite your nails while watching the charts all day long or close your computer with the confidence that your trading decision is made with a clear mind – thus ensuring you more profit.

Scared money is lost money

If you open a trading account and deposit a huge amount of funds into it, you might have a mini heart attack if you think of what is going to happen to your financial status if you were to lose it all on trading. Thus, if you feel comfortable with beginning your trading venture with only $100, you are making the right choice. You should never invest more money than you are comfortable losing, should things turn sour. Yes, you will make unprofitable trades at times but if you are in it for the long haul, don’t pour your entire saving account into your trading venture in one go.

With these money making-tips, you can give your financial market trading knowledge a huge boost, not to mention your trading profits! There is no harm in trying new things but when it comes to trading the financial market, you should rather trade with what you know rather than what you think you might know.