Is an investor an exceptional person?
We all know this stereotype: investors are elderly, dignified, and serious people wearing suits and holding cases full of securities, with gadgets or newspapers with the latest news in their hands. They often look tired, since they sleep little because of a heavy workload. Some of them look worried because investors encounter a lot of risks and it requires a lot of professional skills to receive income from investing (good investors are, of course, high-earners!).
This is exactly the picture that can appear in the mind of a person who would read Google search results for “investor”.
But here is a question: does a usual person see a lot of investors in his life? Just think about it, how often did people in suits, with cases in their hands, their faces concentrated, catch your eye in public transport during the rush hour or, say, in the evening in a supermarket? Have you ever seen Warren Buffett or George Soros in your life?
“Of course not!” you would say. “Investors do not use public transport, they drive around in luxury cars. Investors do not go to supermarkets, they eat in posh restaurants. I will hardly see any investor in real life but I can see them on TV”.
You are probably right: you will hardly bump into George Soros in your favourite café. Still, it is quite possible to see another type of investors: because investors today are actually not as different from ordinary people as you may think. There is even more to that. Most likely, you see investors every single day. And that can easily be proved!
Show me an investor!
Life moves on. Evolution affects every single sphere of human life. It is the same about investing. Most of investors indeed used to slave away over papers, calculating the possible returns, estimating the risks and looking for “safety heavens” for their assets. These days, however, a lot of them have changed suits for striking bikinis and have moved from stuffy office rooms onto comfortable beach chairs.
You used to see investors only on TV. These days no one can be absolutely sure that the chef in their favourite restaurant or their personal fitness coach is not an investor. Do you want to see an investor? Take a better look at your friends or acquaintances.
“Where are these transformations from? And how on earth did my friends manage to become investors?” you would ask. “Surely they do not have so much money!”
These transformations occurred when asset managers appeared – they are professional financial market players and they undertake an obligation to multiply their customer’s capital for a certain percent from the future returns. Since these experts appeared, a lot of investors have felt relieved. From that point on they no longer had to manage their own capital. They no longer had to seek where to invest their fortune to make it work and bring returns, that rather tiresome and worrisome part was no longer necessary.
Asset managers moved investing onto a new level, expanding the circle of investors to a great degree. Since then a lot more people have been able to invest into this or that kind of asset. People used to call investors those who themselves decided where to invest their money, i.e. they were knowledgeable in the spheres of economy and finance. Once asset managers appeared, the category of investors also began to include people with a large capital but who are completely unskilled in managing it.
This service quickly became popular in the high-yield FOREX market as well. Competent managing traders helped a lot of people make their fortunes bigger. The only problem was that those traders refused to work with small investors. Their customers’ fortunes totalled tens of thousands dollars at the very least. This made asset management available only to certain privileged people. However, a little over a year ago this barrier fell.
Mill Trade is a magic factory to “produce” investors
In early 2013 Mill Trade Dealing Centre emerged in the market. Its appearance created a real furor not only among FOREX traders (collaboration terms offered by the company to those wishing to trade independently are very profitable) but also among FOREX investors. So how did the company manage to get the attention of money-makers? Of course, with its investment programs: high-yield and ultra-reliable ones.
For instance, the Golden 7 investment program appealed to market participants for the new approach it took to investing: every investor used to have only one manager and now Golden 7 offers seven of them! To be more precise, the capital of each investor is distributed between the accounts of seven professional managers who trade in FOREX. Such a distribution of funds significantly decreases a probability of a loss on the investor accounts, because all of the seven managers cannot show poor trading results simultaneously! Besides, the Golden 7 team does consist of professionals. For example, recently an analyst famous in the CIS, author of books on trading, professional asset manager, financier with over 25 years of experience, Eric Naiman has joined the Golden 7 team. The investors are happy! Although, they were pleased about the returns earlier too – on average, they used to receive around 10% profit of their deposits monthly, after a small commission fee was deducted.
But the best thing about Golden 7 is the size of the minimum capital to join the program. This is simply amazing but Mill Trade has managed to do what used to be thought impossible. Thanks to the investment distribution system, the company has made investing into FOREX available even those who can afford to invest only $300! This is indeed the best FOREX investment proposal. This is why we say that among investors today could be any person you know. Because three hundred dollars is not that big an amount; however, it is enough to start making passive income.
And there is more to that! Mill Trade has one more collective investment program called Mill-invest and it provides even more security, 100% of it, to your investments. Investors here monthly receive a stable profit of 7%!
This program works similarly to Golden 7; however, there are not just 7 managing traders here but a whole team of them working for you. The degree of the company’s confidence in them is so high that Mill Trade insures an investor’s deposit and guarantees that his or her funds will be multiplied under any circumstances. In order to join Mill-invest an investor needs just $3,000 and the profit will be $210 already in a month! Should someone invest, say, $50,000, then in a month they will receive a profit of $3,500! No financial institution can offer such a return combined with a degree of security this high.
This is the reason why Mill Trade investment offers appeal both to large and small investors.
Investor of the future inside each of us
How hard is it to be a FOREX investor? It is more of a rhetorical question. How can something that requires neither effort nor any time at all be hard? Besides, it brings you a high income.
Being a FOREX investor is easy, pleasant and profitable. And now that Mill Trade has launched its innovative programs, investing into the foreign exchange market has become available virtually to everyone. This type of activity has moved to a new level and these days more and more people are investing in FOREX.
Away with business suits, weary faces and getting wealthy in the old age! Today investment programs in FOREX help ordinary people make money! They wear casual clothes and go to the same supermarkets as you. They visit your favorite restaurants and movie theatres. They sunbathe next to you on the beach.
A serious person in a business suit sleeping 3-4 hours is an investor of the past. Each of us, thanks to Mill Trade, is an investor of the future!
How has the online trading landscape changed in 2020?
By Dáire Ferguson, CEO, AvaTrade
This year has been all about change following the outbreak of coronavirus and the subsequent global economic downturn which has impacted nearly every aspect of personal and business life. The online trading world has been no exception to this change as volatility in the financial markets has soared.
Although the global markets have been on a rollercoaster for some time with various geopolitical tensions, the market swings that we have witnessed since March have undoubtedly been unlike anything seen before. While these are indeed challenging times, for the online trading community, the increased volatility has proven tempting for those looking to profit handsomely.
However, with the opportunity to make greater profits also comes the possibility to make a loss, so how has 2020 changed the online trading landscape and how can retail investors stay safe?
Interest rates offered by banks and other traditional forms of consumer investments have been uninspiring for some time, but with the current economic frailty, the Bank of England cut interest rates to an all-time low. This has left many people in search of more exciting and rewarding ways to grow their savings which is indeed something online trading can provide.
When the pandemic hit earlier this year, it was widely reported that user numbers for online trading rocketed due to disappointing savings rates but also because the enforced lockdown gave more people the time to learn a new skill and educate themselves on online trading.
A volatile market certainly offers great scope for profit and new sources of revenue for those that are savvy enough to put their convictions to the test. However, where people stand the chance to profit greatly from market volatility, there is also the possibility to make a loss, particularly for those that are new to online trading or who are still developing their understanding of the market.
The sharp rise in online trading over lockdown paired with this year’s unpredictable global economy has led to some financial losses, but with a number of risk management tools now available this does not necessarily have to be the case.
Protect your assets
Although not yet widely available across the retail market, risk management tools are slowly becoming more prevalent and being offered by online traders as an extra layer of security for those seeking to trade in riskier climates.
There are a range of options available for traders, but amongst the common tools are “take profit” orders in conjunction with “stop loss” orders. A take profit order is a type of limit order that specifies the exact price for traders to close out an open position for a profit, and if the price of the security does not reach the limit price, the take profit order will not be fulfilled. A stop loss order can limit the trader’s loss on a security position by buying or selling a stock when it reaches a certain price.
Take profit and stop loss orders are good for mitigating risk, but for those that are new to the game or who would prefer extra support, there are even some risk management tools, such as AvaProtect, that provide total protection against loss for a defined period. This means that if the market moves in the wrong direction than originally anticipated, traders can recoup their losses, minus the cost of taking out the protection.
Not a day has gone by this year without the news prompting a change in the financial markets. Until a cure for the coronavirus is discovered, we are unlikely to return to ‘normal’ and the global markets will continue to remain highly volatile. In addition, later this year we will witness one of the most critical US presidential elections in history and the UK’s transition period for Brexit will come to an end. The outcome of these events may well trigger further volatility.
Of course, this may also encourage more people to dip their toes into online trading for a chance to profit. As more people take an interest and sign up to online trading platforms, providers will certainly look to increase or improve the risk management tools on offer to try and keep new users on board, and this could spell a new era for the online trading world.
By Paddy Osborn, Academic Dean, London Academy of Trading
Whether you’re negotiating a business deal, playing a sport or trading financial markets, it’s vital that you have a plan. Top golfers will have a strategy to get around the course in the fewest number of shots possible, and without this plan, their score will undoubtedly be worse. It’s the same with trading. You can’t just open a trading account and trade off hunches and hopes. You need to create a structured and robust plan of attack. This will not only improve your profitability, but will also significantly reduce your stress levels during the decision-making process.
In my opinion, there are four stages to any trading strategy.
S – Set-up
T – Trigger
E – Execution
M – Management
Good trading performance STEMs from a structured trading process, so you should have one or more specific rules for each stage of this process.
Before executing any trades, you need to decide on your criteria for making your trading decisions. Should you base your trades off fundamental analysis, or maybe political news or macroeconomic data? If so, then you need to understand these subjects and how markets react to specific news events.
Alternatively, of course, there’s technical analysis, whereby you base your decisions off charts and previous price action, but again, you need a set of specific rules to enable you to trade with a consistent strategy. Many traders combine both fundamental and technical analysis to initiate their positions, which, I believe, has merit.
What needs to happen for you to say “Ah, this looks interesting! Here’s a potential trade.”? It may be a news event, a major macro data announcement (such as interest rates, employment data or inflation), or a chart level breakout. The key ingredient throughout is to fix specific and measurable rules (not rough guidelines that can be over-ridden on a whim with an emotional decision). For me, I may take a view on the potential direction of an asset (i.e. whether to be long or short) through fundamental analysis, but the actual execution of the trade is always technical, based off a very specific set of rules.
To take a simple example, let’s assume an asset has been trending higher, but has stopped at a certain price, let’s say 150. The chart is telling us that, although buyers are in long-term control, sellers are dominant at 150, willing to sell each time the price touches this level. However, the uptrend may still be in place, since each time the price pulls back from the 150 level, the selling is weaker and the price makes a higher short-term low. This clearly suggests that upward pressure remains, and there’s potential to profit from the uptrend if the price breaks higher.
Once you’ve found a potential new trade set-up, the next step is to decide when to pull the trigger on the trade. However, there are two steps to this process… finger on trigger, then pull the trigger to execute.
Continuing the example above, the trigger would be to buy if the price breaks above the resistance level at 150. This would indicate that the sellers at 150 have been exhausted, and the buyers have re-established control of the uptrend. Also, it is often the case that after pause in a trend such as this, the pent-up buying returns and the price surges higher. So the trigger for this trade is a breakout above 150.
We have a finger on the trigger, but now we need to decide when to squeeze it. What if the price touches 150.10 for 10 seconds only? Has our resistance level broken sufficiently to execute the trade? I’d say not, so you need to set rules to define exactly how far the price needs to break above 150 – or for how long it needs to stay above 150 – for you to execute the trade. You’re basically looking for sufficient evidence that the uptrend is continuing. Of course, the higher the price goes (or the longer it stays above 150), the more confident you can be that the breakout is valid, but the higher price you will need to pay. There’s no perfect solution to this decision, and it depends on many things, such as the amount of other supporting evidence that you have, your levels of aggression, and so on. The critical point here is to fix a set of specific rules and stick to those rules every time.
Good trade management can save a bad trade, while poor trade management can turn an excellent trade entry into a loser. I could talk for days about in-trade management, since there are many different methods you can use, but the essential ingredient for every trade is a stop loss. This is an order to exit your position for a loss if the market doesn’t perform as expected. By setting a stop loss, you can fix your maximum risk on a trade, which is essential to preserving your capital and managing your overall risk limits. Some traders set their stop loss and target levels and let the trade run to its conclusion, while others manage their trades more actively, trailing stop losses, taking interim profits, or even adding to winning positions. No matter how you decide to manage each trade, it must be the same every time, following a structured and robust process.
The final step in the process is to review every trade to see if you can learn anything, particularly from your losing trades. Are you sticking to your trading rules? Could you have done better? Should you have done the trade in the first place? Only by doing these reviews will you discover any patterns of errors in your trading, and hence be able to put them right. In this way, it’s possible to monitor the success of your strategy. If your trades are random and emotional, with lots of manual intervention, then there’s no fixed process for you to review. You also need to be honest with yourself, and face up to your bad decisions in order to learn from them.
In this way, using a structured and robust trading strategy, you’ll be able to develop your trading skills – and your profits – without the stress of a more random approach.
Economic recovery likely to prove a ‘stuttering’ affair
By Rupert Thompson, Chief Investment Officer at Kingswood
Equity markets continued their upward trend last week, with global equities gaining 1.2% in local currency terms. Beneath the surface, however, the recovery has been a choppy affair of late. China and the technology sector, the big outperformers year-to-date, retreated last week whereas the UK and Europe, the laggards so far this year, led the gains.
As for US equities, they have re-tested, but so far failed to break above, their post-Covid high in early June and their end-2019 level. The recent choppiness of markets is not that surprising given they are being buffeted by a whole series of conflicting forces.
Developments regarding Covid-19 as ever remain absolutely critical and it is a mixture of bad and good news at the moment. There have been reports of encouraging early trial results for a new treatment and potential vaccine but infection rates continue to climb in the US. Reopening has now been halted or reversed in states accounting for 80% of the population.
We are a long way away from a complete lockdown being re-imposed and these moves are not expected to throw the economy back into reverse. But they do emphasise that the economic recovery, not only in the US but also elsewhere, is likely to prove a ‘stuttering’ affair.
Indeed, the May GDP numbers in the UK undid some of the optimism which had been building recently. Rather than bouncing 5% m/m in May as had been expected, GDP rose a more meagre 1.8% and remains a massive 24.5% below its pre-Covid level in February.
Even in China, where the recovery is now well underway, there is room for some caution. GDP rose a larger than expected 11.5% q/q in the second quarter and regained all of its decline the previous quarter. However, the bounce back is being led by manufacturing and public sector investment, and the recovery in retail sales is proving much more hesitant.
China is not just a focus of attention at the moment because its economy is leading the global upturn but because of the increasing tensions with Hong Kong, the US and UK. UK telecoms companies have now been banned from using Huawei’s 5G equipment in the future and the US is talking of imposing restrictions on Tik Tok, the Chinese social media platform. While this escalation is not as yet a major problem, it is a potential source of market volatility and another, albeit as yet relatively small, unwelcome drag on the global economy.
Government support will be critical over coming months and longer if the global recovery is to be sustained. This week will be crucial in this respect for Europe and the US. The EU, at the time of writing, is still engaged in a marathon four-day summit, trying to reach an agreement on an economic recovery fund. As is almost always the case, a messy compromise will probably end up being hammered out.
An agreement will be positive but the difficulty in reaching it does highlight the underlying tensions in the EU which have far from gone away with the departure of the UK. Meanwhile in the US, the Democrats and Republicans will this week be engaged in their own battle over extending the government support schemes which would otherwise come to an end this month.
Most of these tensions and uncertainties are not going away any time soon. Markets face a choppy period over the summer and autumn with equities remaining at risk of a correction.
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