Connect with us

Trading

Top Eight Social Trading Tips

Published

on

Top Eight Social Trading Tips 3

How to make your own people-based portfolio

Social trading makes it easy to share information and achieve investment success by viewing, following and even copying trades made by expert traders.  The massive volumes of data that social trading provides can sometimes make it difficult to know which traders to trust, and how to find the relevant information inside the ocean of live trading action.  The following tips will help you identify the traders that can provide the expertise you need to improve your trading performance.Top Eight Social Trading Tips 4

1.    Sort traders by risk levels – This will enable you identify expert traders that have a trading style similar to yours, and whose trading actions will be more relevant to your own portfolio .

2.    Check out the trader’s following–By browsing through the guru's personal profile you can check out the number, diversity, and success of the gurus' followers. This will show you how profitable it is to follow a particular trader.

3.    Evaluate the trader's portfolio – A long-term trader with low risk levels and consistent profits may seem like a safe bet, but if this trader only trades one currency or commodity,his/her portfolio is more vulnerable to sudden market swings.  

4.    See how your guru compares with others–When checking out your guru’s portfolio, it’s a good idea to see how your guru stacks up against other traders who make similar investments and have similar trading styles. If there’s someone better out there, why settle for second best?

5.    Analyze your guru's performance – Current statistics don’t always show the full picture, so you should always see how your guru has performed over time. Has your guru been constantly improving? Or is his P/L curve full of peaks and valleys?

6.    Stick close to home –A guru that lives in your time zone and speaks your language is more likely to be open to communication.  Or if you follow a certain currency in particular, you may want to pick a guru with a local connection to this currency.   For example,a Canada based trader may be more aware of local public policy that can affect the value of the loonie.

7.    Evaluate sociability- A guru that interacts with his/ her followers can be much more helpful to you than someone who prefers to keep quiet. You can also evaluate the quantity and quality of their feedback from the followers’ responses provided. This will show you of how likely the expert is to share tips and tricks.

8.    Bring diversity to your people portfolio –Just as you’re advised to diversify your investment portfolio, it is best to minimize risk by following a wide range of traders. It is recommended that your portfolio contain a minimum of five experts so that no one trader can sink your balance.

These are just some of the basic tips you can apply to social trading. The best part of social trading is that it gives you access to an unlimited database of trader generated information 24/7.  Who you follow, how you interact, and how you invest is entirely up to you.

All you need to do now is start building your own people-based portfolio with the click of a mouse and this is easy, especially when using eToro’s online trading platform!

Trading

Gold-i Integrates with CryptoCortex

Published

on

Has Cryptocurrency become the new digital gold?

Gold-i has integrated with CryptoCortex – an advanced digital asset trading platform from EPAM Systems, a leading global provider of digital platform engineering and development services. This provides financial institutions with increased access to multiple market makers and fully cleared cryptocurrency products available via Gold-i’s CryptoSwitch 2.0™, part of its Matrix multi-asset liquidity management platform.

The integration was completed following a request from a Gold-i client wanting to use the CryptoCortex platform to access liquidity from Hehmeyer and Shift Markets via Gold-i’s CryptoSwitch 2.0™.

Tom Higgins, CEO, Gold-i comments, “As digital asset trading continues to gain momentum amongst brokers, Prime of Primes and hedge funds, a key part of our strategy is to ensure that the cryptocurrency liquidity available through Gold-i’s liquidity management platform is easily accessible, regardless of which trading platform clients are using. CryptoCortex is one of the most advanced platforms for digital asset trading, therefore integrating with them was a logical step for Gold-i.”

“We are delighted to partner with Gold-i to provide our customers with real-time, event-driven processing and analytics that not only meets their essential needs but also delivers actionable intelligence,” said Ilya Gorelik, VP, Real-Time Computing Lab at EPAM. “Financial markets are among the fastest moving markets around, and with cutting edge tools – like CryptoCortex – that make data readily available, customers can quickly implement the best decisions possible.”

CryptoCortex is the most advanced institutional cryptocurrency trading platform on the market, providing a complete 360-degree solution for brokers/dealers, exchanges and buy-side trading firms. It has been developed by Deltix (now EPAM Systems), based on over 10 years’ experience in building, deploying and supporting institutional-grade intelligent trading across equities, futures, options, forex and fixed income.

Gold-i Matrix offers multiple routing and aggregation methods, leveraging connections with over 70 Liquidity Providers. It is super-fast and highly flexible, helping financial institutions worldwide to make more money and reduce risk.  It supports FX, CFDs and cryptocurrencies in a single solution which is fully compatible with the Gold-i Crypto Switch. Crypto Switch™ 2.0, provides brokers worldwide with a fully cleared cryptocurrency product and a cost-effective, efficient means of accessing multiple cryptocurrency market makers who can provide deep pools of liquidity as a CFD or physical asset. For further information, visit www.gold-i.com.

Continue Reading

Trading

5 Questions to Ask Yourself Before Trading Penny Stocks

Published

on

How to Invest in Stocks for Beginners

Anyone and everyone from all corners of the world can trade from their comfort of their own as all that is needed is a computer and an internet connection.

Many people chose to trade complex asset classes like crude oil futures. But penny stock trading is preferred to many new traders because it is a lot easier to understand the stock market than the global oil market. Trading penny stocks is also cheaper to get started as some brokers have no minimum deposit requirement.

So how do you know if trading penny stocks is right for you? Here are five questions you need to ask yourself first.

1.  Do You Have the Right Financial Motives?

Why exactly do you want to trade? If you want to trade to become a millionaire within a year or two despite little or no experience, trading most certainly is not right for you. Trading stocks involves risk but penny stocks could be even riskier.

Ask yourself if the money you want to risk trading penny stocks is needed for important expenses. Trading with rent money or your children’s education fund with the hopes of doubling is not the right mindset to have.

And forget about sustaining yourself with a guaranteed income at any point in your trading career. There is no magical number but you need enough money to cover at least six months’ worth of expenses while learning how to day trade.

But do you have a backup plan if your money runs out faster than expected? Can you call it quits earlier than expected and return to a regular job?

The appropriate and responsible path is to take a few months to learn how to properly and responsibly trade penny stocks. Learning the true ins and outs of penny stock trading strategies can unlock the potential for explosive returns.

2.  Do You Have the Right Schedule?

Trading penny stocks for many people is a full-time job. But some people can get away with trading penny stocks as a hobby if they are available at only certain times of the day.

It is absolutely vital for penny stock traders to be alert and at their trading station at least an hour before the stock market opens. During the pre-market session, a trader is scanning the large universe of penny stocks to evaluate what stocks they will be buying and selling.

They might be looking at the news for a biotechnology company that released results from an encouraging clinical study trial. Or, they are looking for a company that announced a major contract win that would double or triple their sales.

So once 9:30 AM ET hits and the trading session official starts, a trader is well prepared.

But someone who is only available to trade penny stocks as of say 9:15 AM may not have enough time to prepare themselves for the fast action.

Similarly, traders that start their day in the afternoon session will miss out on many of the early movers and there is simply less opportunity from 12:00 PM to around 3:30 PM.

Part-time traders that start early enough can get away with ending their trading session before noon.

If you don’t have the right schedule due to work schedule, family obligations or you are in a different time zone, then penny stock trading during the off-hours might be a tedious task that offers little reward.

5 Questions to Ask Yourself Before Trading Penny Stocks 5

Source: Google Finance. (Ticker $MREO, daily chart from Dec. 18): This shows how early traders were able to capitalize on the strong gains and late traders missed out on a major surge.

3.  Are You Motivated to Learn?

The day trading universe is open to anyone that wants to open an account and deposit money and no prior experience or knowledge is required.

But ask yourself first what do you really know about the stock market universe and how much are you willing to learn. Do you know how to read and understand Level 2 charts? Do you know the importance of SEC disclosures? What about evaluating what impact a poor earnings release will have on a stock’s movement.

It is OK not to know the answer to these dozens of other similar questions. But do you have the drive and dedication to learn from scratch? Do you have what it takes to read books and watch educational videos for weeks at a time? While this could be seen as an exciting process and an opportunity to learn a new skill, a lot of hard work and dedication is required to succeed.

4.  Do You Know the Difference Between Trading And Gambling?

The general public shouldn’t be faulted for correlating trading penny stocks with gambling. They may have seen headlines about how the global COVID-19 pandemic prompted many bored sports bettors to find excitement and action in stocks.

But there is a fine line between trading penny stocks and gambling. Do you know the difference between the two? Gamblers will pick a penny stock — any penny stock and buy shares and simply hope for the best. They have no knowledge of what the company does, nor do they really care. They either make money on a trade or don’t.

Penny stock traders on the other hand have a strategy that has been developed, revised, and improved on over months if not years. They know how technical analysis can be used to determine an entry point, how to analyze volume trends, and where to get their news and information.

Perhaps more important, they know how vital it is to have an exit strategy as part of every trade and then to just move on.

Gamblers on the other hand love to double down when they are losing. If you are a gambler that is fine. Just be aware that the individual on the other side of your trade knows way more than you do about stocks and will be happy to take your money.

Which one are you? If you are a trader and know how to be disciplined and cautious then trading might be right for you.

Conclusion: Be Honest with Yourself

Trading penny stocks involves risk and many new traders fail. Checking off a bunch of answers from a checklist is useless and meaningless unless you are honest.

At the end of the day, only you can determine if trading penny stocks is truly the best move for you professionally. A broker certainly won’t be asking you these questions. It is not their responsibility to do so.

So be honest with yourself. If you really want to trade penny stocks but recognize now isn’t the ideal time for financial reasons or you have the wrong mindset there is nothing preventing you from giving it a shot in six months or a year.

 

 This is a contributed article

Continue Reading

Trading

Why the rise of retail FX is here to stay

Published

on

Why the rise of retail FX is here to stay 6

By Michael Kamerman, CEO Skilling 

2020 has been a tumultuous year for both the world and for financial markets. The events of this year have changed the very course of how we’ll live our future lives. Alongside the disruption of daily routines, the coronavirus disease has disrupted the global financial markets at systemic levels kicking in a global stock market crash in February this year. Sure, things look good now, but remember how you felt in early March?

The Coronavirus Crash had sent financial markets plunging into the fastest, most precipitous fall ever recorded in history and the most devastating since the Great Crash of 1929  – signalling in turn the beginning of a worldwide Covid-induced recession.

Certain industries have been hard-hit with many businesses unfortunately falling into insolvency. Many others are still fighting to survive the global lockdowns that threaten their existence. The new realities inflicted by the pandemic have also given rise to a new set of consumer needs and have as a result driven surges of interest in some sectors.

While the headwinds of Covid-19 have made this a chaotic year, the changing lifestyles of consumers have fueled the growth of other more fortunate industries. These include, for example, online retailers, home-delivery services, pharmaceuticals and biotech, video streaming services as well as… online trading. And a sector experiencing outsized growth in online trading is retail FX and CFD trading. Yes, the novel coronavirus pandemic has jolted foreign exchange and CFD trading because of bust-and-boom movements brought on by extreme volatility in fear-led markets.

Volatility is the Mother of Opportunity

When it comes to trading, volatility is the mother of opportunity. It has always been the case for trading speculative markets. This explains why the global FX market daily turnover hit $6.6 trillion earlier this year, with a 40% increase in day-to-day trading volume compared to the last decade.

Pre-Covid-19, the forex industry was relatively muted. Economic outlook was more certain, with relatively subdued market volatility, while a steady stream of traders were trickling into the market. As such, industry focus was on diversification and future-proofing business models.

Volatility, the likes of which we have experienced this year, feels like a once-in-a-lifetime occurrence, and one effect has been a surge in customer acquisition numbers in FX. With trading platforms having spent recent years optimising their online capabilities, the proliferation of people looking for innovative ways to capitalise on market movements and take control of their finances while under lockdown has, in a sense, been the ultimate proof of concept for the industry.

A continuation of this trend is very likely as countries across the world fight to keep the virus under control. Even with a vaccine on the horizon, record levels of government debt, high unemployment, and negative interest rates are creating a cocktail that is driving many people to seek greater financial independence, whether they are novices or experienced traders. Turning to the retail trading market in these circumstances can make for extraordinary tales, both in terms of wins and losses.

A rise in trading in pursuit of financial independence

Michael Kamerman

Michael Kamerman

Undoubtedly, the world has never spent more hours in front of screens as it has this year with the importance of online access to practically anything taking center stage. Simultaneously, personal finance has been high on people’s agendas, with the impact of the pandemic posing an existential threat to the income of millions of people.

This has driven greater appetite to participate in online trading, and the unpredictability of the 24-hours news cycle has created both confusion, and a sense of opportunity with aspiring traders.

In the wake of widespread redundancies and pay-cuts, people’s outlooks are shifting towards wanting to best monetise their time. This entry of new players into the market has happened in tandem with more experienced traders and investors sensing an opportunity to grow their own portfolios. Thus, one outcome of this year appears to be a shared desire from people to take a far more active role in protecting and growing their finances.

An era of more experienced traders

A positive outcome of this year’s situation is that new entrants have been those keen to study and learn about the markets. Indeed, the challenges that the world has faced this year are so unique, that from an economic perspective, they warrant examination, and are being used as a learning exercise.

Reliable and trustworthy brokers have provided a safe environment for traders to both test and develop their trading strategies. In doing so, traders have been able to grow their skills by learning how to navigate volatility and beginning to execute more substantial trades. Time spent on practice is increasingly more valuable to protect oneself against riskier and lesser-known market variations, particularly in the current climate.

The next six months aren’t likely to be a smooth ride. Volatility is set to continue, bringing with it greater trading volumes and greater opportunities for trader upskilling.

Good news lies ahead – for the world, and the world’s traders.

It is unfortunate that traders and investors stand to capitalise on higher returns during devastating situations that create heightened volatility, but this is the truth nonetheless and part of the essence of investing. The outlook of markets remains to be an indication of where the world is also headed. And that is not all bleak. The stock market bounced back relatively quickly in March, with share prices rising sharply even though many of the world’s developed economies were and are still suffering one of the worst recessions in living memory. Why? This is because, theoretically speaking, share prices are based on anticipated future expectations and income streams.

A most recent example is seen in Airbnb’s extraordinary IPO, making it one of the greatest success stories in the 2020 stock market. The success is clearly not based on Airbnb’s growth in revenue over the past year (when travel basically came to a complete halt). Investor demand was fueled by the hope and anticipation that pre-pandemic life will return and the global travel industry will be revived.

The overall global long-term outlook is a positive one, and the pandemic and associated recession is expected to give way to an economic recovery. What is for sure though is that the road to recovery is a long one, and market participants are to actively assess and reassess their investment and risk management strategies. The key to being in a better position to exploit the opportunities that arise in the markets is to be better able to mitigate the higher risk that comes with the unpredictable volatility of pandemic times.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues 7 Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues 8
Business16 hours ago

Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues

-Survey of 1007 SMEs in the UK by Spitfire Network Services Ltd reveals pain points for employees working from home-...

Employee Ownership Trusts increasing in popularity amid a backdrop of continuing uncertainty 9 Employee Ownership Trusts increasing in popularity amid a backdrop of continuing uncertainty 10
Finance16 hours ago

Employee Ownership Trusts increasing in popularity amid a backdrop of continuing uncertainty

With 2020 behind us, the impacts of the COVID-19 Pandemic and Brexit are still being felt throughout the economy, and...

How the application network unlocks open banking’s future How the application network unlocks open banking’s future
Banking17 hours ago

Open Banking: the perfect pandemic tool – Equifax comments

With COVID-19 related financial fallout set to dominate the credit landscape in 2021, Dan Weaver, Open Banking Expert at Equifax...

How can we benefit from mandated e-invoicing? 11 How can we benefit from mandated e-invoicing? 12
Business19 hours ago

How can we benefit from mandated e-invoicing?

By Mark Stephens, the CEO of Blackstar Capital Electronic invoicing is at a tipping point. On the one hand, only...

World Tourism Organization (UNWTO) and Sommet Education launch Hospitality Challenge Pitch 13 World Tourism Organization (UNWTO) and Sommet Education launch Hospitality Challenge Pitch 14
Events19 hours ago

World Tourism Organization (UNWTO) and Sommet Education launch Hospitality Challenge Pitch

World Tourism Organization (UNWTO) and Sommet Education launch Hospitality Challenge Pitch – a series of online discussions focusing on revealing some of the winners...

Is MiFID II still fit for purpose in a post-COVID financial landscape? 15 Is MiFID II still fit for purpose in a post-COVID financial landscape? 16
Finance22 hours ago

Is MiFID II still fit for purpose in a post-COVID financial landscape?

By Martin Taylor, Deputy CEO and co-founder at Content Guru January 2nd, 2021 was the third anniversary of the implementation...

First of a kind Virtual Coffee Machine app with social meeting moments to support workforce wellbeing in a remote workplace 17 First of a kind Virtual Coffee Machine app with social meeting moments to support workforce wellbeing in a remote workplace 18
Technology24 hours ago

First of a kind Virtual Coffee Machine app with social meeting moments to support workforce wellbeing in a remote workplace

Powell Software’s first in a series of wellbeing technology innovations help remote employees socially connect with colleagues and keep the...

Most Video Content Created in the Summer Months, Finds Veritas Research Most Video Content Created in the Summer Months, Finds Veritas Research
Technology1 day ago

Top 5 Ways To Lose Your Video Files

There are lots of reasons why you can lose video files in your system or device. While some of these...

FSS and India Post Payments Bank AePS Partnership Advances Financial Inclusion in India 20 FSS and India Post Payments Bank AePS Partnership Advances Financial Inclusion in India 21
Finance4 days ago

FSS and India Post Payments Bank AePS Partnership Advances Financial Inclusion in India

New Delhi, January 12th,2020: FSS (Financial Software and Systems), a leading global payment processor and provider of integrated payment products,...

Seven lessons from 2020 22 Seven lessons from 2020 23
Top Stories4 days ago

Seven lessons from 2020

Rebeca Ehrnrooth, Equilibrium Capital and CEMS Alumni Association President   Attending a New Year’s luncheon on 31 December 2019, we...

Newsletters with Secrets & Analysis. Subscribe Now