Things You Should Do to Get Better at Trading

Things You Should Do to Get Better at Trading

Everyone knows the profit potential in the Forex trading business. If you are new to this industry, we will give you clear information regarding the Forex. Being the largest market in the world, more than $4 trillion is transacted across the globe in a single day. Based on this transaction and economic condition, the price fluctuates heavily. The traders use this price fluctuation to predict the price movement. You may think you will get rich by learning to trade this market but it’s not so simple. Based on a recent study, it is safe to assume, only 4-3% of the traders can make a consistent profit. So, how we get better at trading. There is no fixed set of rules but we are going to give you some amazing tips.

Attend the free webinars

There are thousands of brokerage firms offering trading services to the retail traders. But if people always lose money, they will run out of business soon. To educate the traders, they arrange free webinars where any person can learn the art of trading from the experts. Most importantly, you don’t have to pay any fees for this professional course. But jumping in a webinar doesn’t guarantee quality education. The experts in Australia prefer to learn only from experienced traders. Unless you are attending the webinars of a reputed broker, you won’t learn something new.

Practice makes a man perfect

Do you know why you should use the demo account? In the options trading industry chances of making mistake and getting away with it is nearly impossible. If you make a mistake, you will have to pay the price. To avoid the most common mistakes, you can use the demo account and try to develop your skills. Demo trading is more like placing the perfect trades without …

Read More
Buy And Hold Strategies Are Now Called Buy And Pray

Buy And Hold Strategies Are Now Called Buy And Pray

There is a common definition of two big areas of stock investments: fundamental analysis and technical analysis. Fundamental analysis is a more common and old type on investment where you evaluate a company’s profile and see if you believe that they are either over-priced or low-priced. This type of analysis is used by big time market players as Warren Buffet and Benjamin Graham.

Technical analysis on the other hand, is becoming widely popular and is getting more and more attention from the media. This is especially true since nowadays, many proclaim that the old and (not-so) safe strategy of “Buy-and-Hold” is now long dead. This has some truth in when you take Japan as an example: did you know that an investor how has bought some shares thirty years ago on the Japanese stock market, has now pretty much the same amount of money? No profit, no loss. Great!

Buy and hold used to be a really and sound strategy for a lot of different markets, but nowadays you might think again before doing that. There is common joke out there that there is a new name for this strategy: instead of buy and hold, they are now calling buy and pray. And that is what you should be doing if you believe that this strategy alone will make you rich.

I’m not saying that you should never ever use this strategy, but take it with a grain of salt if you do not want to be disappointed. This strategy has shown in the past huge profits, but they might be no longer available to most investors. Market conditions change all the time and with them, old good strategies might fall apart entirely, or at least underperform others, when these changes take place. So, make sure you do a full …

Read More
Capital Growth - Is it a Risk Or an Opportunity?

Capital Growth – Is it a Risk Or an Opportunity?

I love investing. Why do I love investing? Because from personal experience I can see it works. The source of our wealth is investing. Yes, the incomes we received from our jobs enabled us to invest, but we would not have become wealthy because of our jobs. Why? Because we always spend what we earn. Let me explain using one property as an example.

I purchased a property in 1997 for $165,000. By the end of 2007, the property was re-valued at $410,000. That is a capital increase of $245,000. In ten years, I would have found it impossible to save that amount: over $20,000 per year. Over those ten years, I was on an average salary of approximately $50,000 per annum. It would have been impossible to save an average of $20,000 per year.

To me, investing has been a form of forced savings.

As much as capital appreciation on an investment is very exciting, it also brings with it a level of risk.

The risk is the access you have to the capital appreciation. Loan products are available that allow you to re-finance your property to the current market value and you can access a portion of the capital growth for your purposes.

This access to the capital growth can either be a risk or an opportunity.

Let’s look firstly at the risk. Let’s say your Mortgage Broker tells you you can gain access to $100,000 on your property. You get very excited and buy a new car and a boat for your family. Let’s look at some of the downsides of this decision:

– Increased expenses: you now have to pay interest on the $100,000 loan. This is a personal expense you did not have before you purchased the car and boat.

– You purchased items that …

Read More