Trends in Binary Options

If you rely primarily upon technical analysis to make your trades, it is quite probable that trend analysis will be quite important to you. In short, trend analysis is the determination of the price movement for an asset, dependent upon the trend lines marked on a chart. There is a great deal of talk about trends which may have you wondering precisely how to spot a trend in binary options. Well, here are some tips on how you can identify a trend that may be emerging and how you can use this to your advantage:

Drawing the Trend Lines

Remember those trend lines that were mentioned? Well, they can essentially be divided into two types. There is the bearish line and the bullish line. The bearish line can be drawn between the two highest price points on a chart.

If the all of the candlesticks are present below this line, then trend is most likely to bearish – hence, moving up. On the other hand, the bullish trend can be determined by looking at the two lowest price points on the chart and drawing a connecting line. If the candlesticks remain below this line, the trend is bullish.

 

 

Once this is done, it is a matter of plotting the resistance and the support line to truly be able to determine the direction of the movement. The resistance line is representative of the highest points of the price points of your asset. Therefore, if the trend line is above this point, the trend is moving in an upwards direction. The support line, on the other hand, marks the lowest price points of an asset. If the trend line falls below the support line, the trend is said to be in a downwards position.

The Third ‘Trend’

Now, it is not actually considered as a trend by many traders. Therefore, it isn’t really taken into account in most instances. Nonetheless, you should be aware of it. This third trend can be identified by what takes in places between the price hikes or lows. These are periods of stagnation. There are typically depicted by flat lines which indicate that the price is neither moving up nor down.

Understanding the Importance of Reversals

As you well know, nothing lasts forever. This means that regardless of whether the value of an asset is rising or dropping, it is not going to last. At some point, the trend is going to change direction. This is known as a trend reversal – the point at which one trend expires and another begins. Now, it is vital that you identify the initial trend. After all, this is how you know when to enter a trade. At the same time, you should also know when trend reversal is about to take place. This will provide you with the information that you need to determine when your trade expires. Remember, when the trend no longer exists, the conditions of your trade become false. This is why you need to get ahead of it.

One way that you can do this is look at the highs and lows of each trend. For instance, let’s consider an upward trend. If this trend doesn’t result in a new high, this may be a good indicator that a reversal is about to take place. It is important to understand that this doesn’t actually signify the end of a trend. However, it could hint at events that may be coming.

These are some of the things that you should be aware of with how to spot a trend in binary options. You should always establish that a trend has, in fact, been identified before you place a trade.

How To Overcome Trading Fears

What’s stopping you from investing in the stock market?

Despite the evidence of some fairly sizable ‘push factors’ – namely super-low interest rates crippling the benefits to be had from savings accounts and a series of measures making it tougher to accrue an income as a buy to let landlord – many of us fear taking the plunge and putting our money in the hands of the markets.

In some respects, this appears to be a generational issue. The ‘baby boomers’ have been well-versed in making their money go further through stocks and shares but millennials have not.

That was certainly the finding of an American study carried out by Bankrate.com.
It discovered that only 26 per cent of under-30s are investing in stocks – compared to 58 per cent of people aged between 50 and 64.

While a lack of money was a problem – 38 per cent of 18-30s felt that they didn’t know enough about the market, the highest proportion of all categories asked. In a separate study, reported by USA Today, only nine per cent of millennials would describe themselves as ‘investors’. It’s likely that the recession – sparked by the banking crisis – is fresh in the minds of these nervous investors as it has had a significant impact on their adult life.

A lack of knowledge – and a more cautious mindset – are important factors, therefore.Yet as fed up millennials search for ways to make their money go further, what might help them to feel more confident about the potential in the market?

Here’s some food for thought:

Step 1: You don’t have to risk thousands

Ok, so young people don’t feel like they have big pots of cash to invest. But it’s important to realise that you can still get a decent return from a relatively modest sum.

As The Guardian notes, as little as £50 a month can be invested in unit trusts. It quoted Justin Modray at Candid Money, who advised:

“Look for a fund that spreads your money across a blend of shares, corporate bonds, commercial property and commodities to reduce risk.”

The article also demonstrates how investing £100 a month in a FTSE 100 tracker that returned 5% a year after inflation, would deliver about £88,000 after 30 years, or £152,000 after 40 years. Seeing the large potential reward to be had from putting money into the markets (while still appreciating the risk) is important to win over those who have not yet taken the plunge.

Step 2: Learn the lingo

Don’t know your futures from your forex? Sometimes it can feel like the market speaks a different language to the rest of us – and this might be why so many millennials feel in the dark. This is where sites such as Investopedia can come in incredibly handy – with handy definitions and descriptions of all the key terms you’ll come across. Many of these are easier to understand than they sound.

Step 3: Try before you buy

Would a trial run make you feel more confident? Providers such as IG offer you the chance to run a demo trading account, practicing trading CFDs and spread betting with virtual funds. You’ll see the same charts and data as you would when you’ve put real money into the market – but will get a chance to see what would happen without the risk of losing a penny.

This experience, a greater knowledge of the terminology and an appreciation that relatively small amounts can deliver a decent return should help those who harbor a fear of trading, especially among a younger generation that is reticent to dip its toe into the market.

How to Prevent the Risk of Overtrading

You may have noticed that there are some binary options traders who flame out quite quickly, burning through the money that they have accumulated. Unfortunately, this is not an uncommon tendency among traders.

One of the more widespread reasons for such an occurrence is the indulgence in overtrading. The traders get carried away and trade either in large volumes or place numerous trades within a short period of time. Doing so, however, is more akin to gambling than it is to trading. This is because the outcome of such a venture is often unavoidable – losing money. If you are looking to avoid this, here is how to prevent the risk of overtrading:

Have a Plan, Stick to It

It is going to be quite difficult to navigate the markets in a meaningful way if you don’t have a plan. Before you place your first trade, it is important to have constructed a strategy for yourself. This should include how you will manage your capital and your finances.

For instance, how much of your overall capital are you willing to spend on any one trade? What will you do with your profits? You will also need to figure out the average time period of your trades.

It can be difficult to conclude on how many trades that you can execute within any time period. Nonetheless, it is important to set a limit for yourself. As long as you remain within the boundaries that you have created for yourself, you will be able to prevent any unnecessary losses. Perhaps what is more challenging than creating a plan is actually sticking to it.This is just as significant as coming up with a strategy itself.

Don’t Let Your Mental State Get the Better of You

Even if you are not the type of trader who is prone to overtrading, you may feel that there are instances when this is justified. This happens when one of two things happen. The first scenario is when you hit a winning streak.

As you seem to be placing trade after trade that it is ending up in the money, you feel as though you should make as many trades as possible. However, placing trades simply for the sake of it will not yield the same results as you previous strategy did.

Therefore, you may quickly find yourself losing money. Now the other set of circumstances is when you are suddenly losing all of the trades that you are placing. This can be a difficult pill to swallow. It is easy to imagine that the only way you can overcome such a dismal streak is to keep placing more and more trades. The sad truth is you will just probably continue to lose money. By the time that you actually start winning trades, it may not be enough to make up for the losses.

The Fear of a Missed Opportunity is Not Justified

Another reason that people may feel the need to overtrade is because they feel that they may be missing out on an opportunity. Therefore, they trade as much as they can to take full advantage of any chances there may be. Now, it is quite possible that you may miss a particular opportunistic trade here or there.

This is inevitable, nonetheless. It is also not that big of a deal – such trades are rarely monumental and really do not warrant overtrading. It is much better to miss a couple of trades rather than waste a lot of money waiting for the right circumstances to come along.

These are a few of the ways you can prevent the risk of overtrading. It is important to realize that, in the end, it is only you who has all of the control and can avoid this situation.

Cryptocurrency Brokers

I’m sure you already heard of Bitcoin, Ethereum, Ripple, Litecoin or Bitcoin Cash. There are hundreds of cryptocurrencies out there, but only a few that really matter.

Luckily for traders, some brokers have already added some of these cryptocurrencies to their platform. This means that everybody can sign up and start trading Bitcoin or other coins.

After testing dozens of brokers, here are the best crypto brokers:

Best Cryptocurrency Brokers

Rank Broker Min. Deposit Regulated Features Visit*
1
review $100 YES + CRYPTO TRADING
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2
review $100 YES + BITCOIN & 9 CRYPTOS
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3
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4
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*Risk warning: Your capital is at risk. Plus500 is a CFD provider.

How to Choose your Cryptocurrency Broker

While we are all familiar with the broad definition of a broker, is there something more to it when it comes to cryptocurrencies? Simply put, a cryptocurrency broker refers to a website that traders will visit to trade cryptocurrencies at a set price. In many ways, they are similar to forex brokers whose services are a lot more familiar to the general public.

Now, we shall go into what aspects you as a trader must consider when choosing a broker to trade cryptocurrencies.

Top 10 Cryptocurrency Brokers

Rank Broker Min. Deposit Max. Leverage Get Started*
1
ETORO $50 1:400
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2
PLUS500 $100 1:30
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3
AVATRADE $100 1:400
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PEPPERSTONE $200 1:500
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IQOPTION $10 1:1000
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24OPTION $250 1:1000
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7
TRADE.COM $250 1:400
8
ICMARKETS $100 1:500
9
VANTAGE FX $100 1:500
10
FXTM $5 1:1000

*RISK WARNING: Your capital may be at risk.

Which Cryptocurrencies Are You Interested In Trading?

Make sure you have decided on which cryptocurrencies you want to trade in before signing up with your broker. If your choice is a prominent cryptocurrency like Bitcoin, Litecoin, or Ethereum, there will be a relatively broad availability of brokers that have trading options for those. However, less prevalent examples like Monero, IOTA, or Zcash may be a little harder to come by. So study the cryptocurrencies being offered by a broker before you sign up for an account.

Is Leverage Really Necessary? Cryptocurrency markets are volatile in nature with prices fluctuating immensely thereby generating high profits even in the absence of leverage. But for some traders, the desire for more earnings justifies the use of leverage.

Before choosing your broker, settle yourself on whether the already immense profits that come from a cryptocurrency market are enough for you or you would like to use leverage to enhance them even further, bearing in mind, of course, that will also significantly increase the risk factor to your funds.

Negative Balance Protection: It is always advisable to trade with a broker that affords the negative balance protection facility. That way, you will never be at risk of losing more than what you invested in case you sustain very heavy losses.

How Suitable Is The Required Capital For You? This is another subjective part to your decision. Do you prefer trading with a small capital or bigger one to help you zero in on bigger returns? Find out what size trades your broker is offering before you open an account.

Narrow Spreads for the Win: Let us be honest, it is only fair that your broker gets a cut from the money you generated having provided you with the essential facilities for it and all. But let us be honest, you definitely want every last dime for yourself.

A spread refers to the difference between the buying price and selling price of a trade and it varies with each broker. The spread is what counts as fees for your broker so the smaller it is, the lower the cost will be on your part.

Finer Questions to Ask Your Broker

Here are some of the more understated details about your cryptocurrency broker that could make your trading experiences so much more efficient and successful.

1. What Are The Weekend Hours Like?

This is a key detail that distinguishes cryptocurrencies from other prominent trading markets like forex, futures, and equity. Cryptocurrency brokers operate during the weekends as well. There is virtually no difference in purchasing bitcoin at the end of the week as opposed to the middle of the week during peak hours.

But there is a catch. While digital currency exchanges are available during the weekend, your broker may not. So in effect, if there is considerable movement within your relevant cryptocurrency market during a weekend when your broker is not operating, you may not have the ability to respond in any way.

2. How Is It Hedging?

Your broker is probably not keen on revealing if it is hedging cryptocurrency traders but it is important information for you to know. Why is it so important for you to know? Because, as a trader, you want to be absolutely in the clear regarding the policies for risk management being followed by your broker. Let us not forget that cryptocurrency markets are extremely volatile and an unhedged broker is more easily prone to major losses incurred by its clients. Naturally, those costs will warrant compensation via fatter spreads and additional costs for traders. It will be best to sign up with a broker that will not withhold the relevant information from you.

3. What about Commissions and Trading On Margin?

An important thing to note while trading cryptocurrencies is that their prices tend to be more similar to equities than they are to real currencies. So your broker could be charging you commissions in addition to a wide spread on each trade. That, of course, raises the cost probably a bit much for your liking.

Another similarity with equities is that the margin conditions with cryptocurrencies are significantly more than they are with forex or CFDs. Consequently, leverage is usually up to 10x. How considerable the margin rate will be for traders is down to what trading strategies and risk management they subscribe to.

4. The Authenticity of Market Data?

Aside from merely evaluating how it influences spreads, market data for cryptocurrency CFD prices can be a good indicator of how the quality of the product will be in the future. One of the more recent examples of this is BTC-e which was an immensely popular platform for trading bitcoin before it was shut down by Feds. BTC-e was the first bitcoin exchange to incorporate forex trades and so made their exchange accessible via MT4 and supplied cryptocurrency liquidity for brokers.

But once it was shut down, every broker that depended squarely upon BTC-e was left with no hedging options or market data to put a price on its crypto CFDs.

5. Are Short Sales Available?

For many traders, shorting is a crucial strategy option, the lack of which can be a deal breaker with a potential broker.  Many brokers tend to offer ‘long’ only since there are only a few hedging solutions when opening short trades.

Conclusion

Investing in cryptocurrencies can be a truly lucrative venture for you but only if you get it right. And a lot of that is down to which broker you decide to trade with. Trade with the cryptocurrency brokers listed above to make sure that your money is safe, you pick a broker with a stellar reputation and you keep the fees low.

Forex Trading Risk Management

forex risk managementThere is no denying that there is a certain amount of risk when trading forex. With every trade that you make, there is always a possibility that you will lose some money.

So, the next step would be figuring out how to manage risk with forex trading. This can help to prevent you from losing money or, at the very least, minimize how much you end up losing. Here is how you can do the forex risk management:

Have a Money Management System

One of the main reasons that forex traders have to give up so early on in their careers is because they end emptying out their account. You should avoid doing so at all costs. So, what can you do to prevent this? Well, first, you should never use money then you are willing to lose in one trade. If, in comparison to the rest of the amount, you can’t justify the amount, you should lower it.

At the same time, you will also need to think about how risky a particular trade is. You can feel comfortable with putting a greater amount on a low-risk trade. However, if the odds aren’t in your favor, you should only trade with a minimal amount or not at all.

Practice on a Demo Account

There are numerous forex brokers that offer their traders the use of a demo account. If you have this opportunity, you should definitely take it. A demo account lets you place theoretical trades without having to put money up as collateral. This way, you get to see what techniques and systems work for you and which ones don’t. As you continue to practice, you will learn more and more. Therefore, when it comes to a real trade, you will be much more prepared and much less likely to make mistakes.

Do Your Research

One of the most common misconceptions regarding forex trading is that it is easy. This, however, couldn’t be further from the truth. When traders make this claim, what they really mean is that is relatively simple (and affordable) to enter the market.

The actual trades, however, are far from simple. You should be aware of the various forex markets as well as what factors will impact them the most. You will also need to be on top of new regulations, changing situations, and news from around the world. This, coupled with experience, will prevent you from falling into numerous pitfalls.

Be Careful with Leverage

Another common folly among new traders is not controlling their use of leverage. On the surface, leverage can seem like the ultimate weapon. It gives you the opportunity to make a considerable profit after only making a minor investment. At the same time, it is quite easy for the tables to turn on you. Remember, leverage can cause your losses to be amplified quite a bit, throwing you into debt. So, when choosing your position size, keep your account in mind. If you don’t have a lot of capital, keep your positional minimal. It will prevent you from losing more than you can afford.

Use Stop Loss Features

One of the main benefits of forex trading is the Stop Loss feature. This is when you give an order to close out your trading position when you have lost a certain amount of money. As mentioned before, you need to decide just how much you can stand to lose. Once you have decided this, the stop loss order will ensure that you will not have to give away any more than you are capable of. You can think of stop loss as a safety net.

These are just some of the techniques involved in how to manage risk with forex trading. While it is not a comprehensive guide, it does provide you with the most significant points.

Forex Brokers

Forex trading is a lucrative international trading platform that deals in the exchange of currencies. And perhaps you are thinking that you want a piece of the action.

This article will help you understand the elementary matter of getting into the game with a reputed and established broker. This page contains all the tools you need to make it as a successful trader. So let’s get right into it.

Top 3 Best Forex Brokers

Rank Broker Min. Deposit Regulated Features Review
1
review $200 YES + ASIC LICENSE
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2
review $100 YES + CRYPTO TRADING
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3
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Choosing A Forex Broker

Forex brokers are numerous all over the world. However, whichever one you choose will be a decisive move indeed in your career as a trader. All of them look promising, but not all of them deliver on their promises. So your best choice lies with a broker that is strictly regulated by the government and has superb reviews from the majority of clients. Once some fitting candidates are selected, you can get a little nit-picky and scrutinize these details to cipher out the right one for you.

  • Service quality: A lot of this depends on whether the broker is licensed and regulated by an authority such as the CFTC and registered with the FCM. Usually you do not have to pry any further than the broker’s official website to find out what’s what?
  • Spreads: A spread explains the discrepancy between the buying price of a currency and its selling price. It is calculated in ‘pips’. A spread essentially how the brokers earn money in lieu of receiving a commission. So unless you have a soft spot for your broker at the expense of your own financial returns – unlikely – you should look for a broker with as low a spread as can be found.
  • An assortment of tools and information: Each Forex broker has its own trading platform online that customers can access to do their trading. Usually, this platform contains additional information such as charts and other kinds of data in real time and commentaries.
  • Options in leverage:Leverage is a huge deal in Forex trading. It comes across as a ratio between the total capital relative to the real capital – the amount lent to you by the broker to trade. With ratios expressed up to 250:1, it exponentially enlarges your winning potential but also your loss if the trade does not work out as you has predicted.
  • Types of accounts: Forex Brokers usually afford multiple accounts to their traders. There is the mini account which requires a minimum trade of around $250 to activate at high leverage. The standard account enables you to work different leverages but requires a much higher initial deposit of $2000. Finally, there is the premium account which requires a still higher initial deposit to be activated and comes with more tools and services along with differing leverages.

What To Look For In A Forex Broker

Now that we have covered the essential features to look for in a broker, let us now learn what we hope not to see in a Forex broker.

  • Sniping/Hunting: These terms describe dodgy moves made by brokers to make some extra green for themselves. Naturally, no broker has readily admitted to have ever done it but no of them can be totally cleared of suspicion. The only way to pinpoint the issue is by talking to other traders who have been unfortunate enough to experience it.
  • Rigid terms on margins: If the funds you are trading with have been lent, your broker has some control over the amount of risk you stake it at. And so, the broker can buy or sell on its own terms and that can be a costly error for you. Again talk to other traders and find filter out potentially crooked brokers.

Hopefully now you have a better understanding of how to go about selecting your broker to give you a good start into the Forex market.

Bitcoin vs Ethereum

Straight away, the distinction to make regarding bitcoin here is that it is still the dominant player in the cryptocurrency arena. Although that is not to say Ethereum has not been snapping at its heels lately, it has. What Ethereum offers that bitcoin does not is a wider range of applications and functions. But let us take a more detailed look at those differences now.

Ethereum Concerns More Than Mere Money

The term ‘digital currency’ does not quite cover all of what Ethereum really is. It is after all a platform rooted in blockchain containing numerous different aspects to it. There are variables like smart contracts and the Ethereum Virtual Machine (EVM) to consider as well as the currency it uses, called ether for the same sort of peer-to-peer transaction you engage with bitcoin.

Applications stored in blockchain are used by Ethereum’s smart contracts for contract facilitation and negotiation. The main benefit of said contracts is the blockchain supplies a decentralized method of validating them. Being decentralized makes it a lot tougher for the occurrence of fraud and censors. The smart contracts have an objective not only to enhance security over traditional contracts, but also to reduce the costs involved.

Ethereum is not entirely separate from bitcoin. The two do share striking similarities. They are both decentralized peer-to-peer cryptocurrencies and use a blockchain. Both are useful for the storage and transfer of value. But the fundamental intention with Ethereum is rather different. With Ethereum, a smart contract is basically Ethereum addresses which have a viable code and are stored in the blockchain.

Both these currencies are still relatively young along with the whole concept of cryptocurrency. However, if you were to ask which of the two are more stable, the answer would be bitcoin. Perhaps that is why it is still sitting pretty on the number one spot. But who’s to say that will not change? Ethereum is fast growing and volatile in nature. In this year alone, its value has spike thousands of times over.

Implementing Smart Contracts with Your Own Cryptocurrency

With Ethereum, you can create digital tokens which can be used to can represent assets, virtual shares, proof of membership and so on. They are compliant with any digital wallet and exchanges using the standard coin API.

After copying the code on the Ethereum website, you can use the tokens for multiple reasons from the representation of shares to fundraising and voting. Based on your established rules, you can have your circulation of tokens either in a fixed amount or a fluctuating amount.

Ethereum Does Not Require You to Have a Kickstarter

Ethereum enables you to increase funding for several uses. If you are trying to get a new venture going, simply set up a contract and look to the community for assistance. The funds that have been raised will be held until the aim is reached or the any certain date that has been agreed upon in advance. If your goal is not reached, the funds will go right back to the contributors or be diverted to another project which was successful. Taking out the third party, rules, fees, and all is what constitutes kicking out Kickstarter.

Skip Over Traditional Management with Democratic Autonomous Establishments

In addition to helping you outsource your funding, Ethereum can help you with organization and structuring as well. You can acquire different proposals from people who have supported your idea and put it to a vote to decide how you should proceed. This alleviates the cost of traditional structuring that includes doing paperwork and hiring managers. Ethereum will also safeguard your project from outer influences.

Block Times

With bitcoin, your block time lasts on average for 10 minutes. With Ethereum, it is closer to 12 seconds thanks to its GHOST protocol. So confirmations are faster but there are more abandoned blocks.

Conclusion

We have not had time to cover all of the differences here but from what we have shown, it is easy to understand how Ethereum and bitcoin are two different beasts. While they have their cryptocurrency status in common, that is all there is regarding their similarities.

Bitcoin is still the more stable cryptocurrency but Ethereum branches out more. Ether is merely a working part of it smart contract operations.

Bitcoin And Forex Risks

Foreign exchange has been and still is the biggest and most liquid global market in existence. Its operations continue on 24 hours a day for 7 days a week. The current main participant in this market is currency, real currency that draws its validity out of banks and governments.

But in recent years, we have seen the participation of a new type of currency, specifically cryptocurrencies which have radically and exponentially grown since they were first introduced and have made the forex market that much more lucrative and profitable.

In fact, there are leading brokers all over the world that have included cryptocurrencies as part of their trading assets. It would not be fair to try and explain them all in a single article. What we will talk about here is the cryptocurrency known as bitcoin and the potential risks involved with trading it in the forex market.

Forex Trading and Bitcoin

The first thing to note about bitcoin for all its influence on the forex market is that it is not in fact what we call real money. It does not draw its validity from any government or bank. It is entirely a virtual currency stored in a digital wallet. The future is now, it seems.

It is fair to assume then that trading it in the Forex market is going to be different than how you would trade your average dollar, and you would be right. Let us now take a look at what a regular transaction with bitcoin looks like.

First things first, you will need to own an account with a forex broker that includes bitcoin trading as part of its services. With that taken care of, let us assume you deposited 2 bitcoins and quote the value at $500 apiece. So in dollar speak, your deposit is worth 1000. What’s more you also take up a position in British currency for which the rate of exchange is $2 for each pound. So your bitcoin deposit is worth 500 in English pounds.

As for the rate for GBP/USD, we shall call it 0.45 and you quote your position at $1,111.11. So your profit will be 11.11%. However, rates tend to change all the time so let us now say the value of 1 bitcoin has gone up from $500 to $560. If you make a bitcoin withdrawal at this point, your return will be the quoted value of your position divided by current rate assigned to bitcoin. That is 1,111/560. You now get 1.984 bitcoins.

As much as you stand to make good profits from trading bitcoin, it is always advisable to be cautious and be keenly aware of the risks involved. We have listed them down here for your benefit.

Risks of Bitcoin Trading In Forex

  1. Bitcoin is traded over several exchanges and those rates differ all the time. As a trader, you must be acutely aware of the bitcoin exchange rates being used by your forex broker before proceeding to trade.
  2. It is common for practice for the majority of brokers to immediately sell off the bitcoins and retain the same value in US currency in the midst of receiving bitcoin deposits from client traders. And that goes even if you do not actually take up a position on the forex market, so you will be left vulnerable to the risk of an unfavorable rate on the US dollar influencing your deposit or withdrawal.
  3. Traditionally speaking, the prices for bitcoin are extremely volatile. An unregulated broker can capitalize on this at a trader’s expense.
  4. Being a virtual currency, never underestimate the threat of being hacked. No, the network is not entirely immune to a cyber-attack. Any deposited bitcoins are potential targets for theft by hackers. The best solution to this is find a broker that provides insurance in the event of thievery.
  5. New traders must understand how high leverage can cost them dearly.
  6. A cryptocurrency has its own way of assigning value to itself as a separate category under assets. Trading bitcoins in the forex market is basically bringing in a new intermediary form of currency that is relatively unpredictable in the way it affects profits and losses.

Conclusion

Hopefully now you have greater insight into bitcoin works in the forex market and the potential risks there are to trading it.

Bitcoin And Forex Benefits

As you may already know, Foreign exchange is by far and away the largest, most liquid market in the world running relentlessly around the globe 24/7. And while actual currency that is validated by governments and banks is at the forefront of this market, it is worth that other far more understated element of the forex trade: cryptocurrencies.

Bitcoin and Forex: What are the Benefits?

Their arrival on the market is quite recent. However, they managed to expand exponentially in terms of value and appeal for traders. And now, we even have forex brokers that will readily accept these currencies for trading. The specific currency we want to focus on here is bitcoin and the specific risks and benefits it poses to current and would-be forex traders.

Bitcoin in Forex Trading

Now we already know how real money is traded in the forex market but what about bitcoin? Being a virtual currency that is intangible and invalid within a bank or government, bitcoin represents a whole other ball game when it comes to forex trading. Here is what a typical bitcoin transaction would look like:

The first step is opening a forex account with a broker that deals in bitcoins. Assuming that is true, let us say you make a deposit of 2 bitcoins from your digital wallet and post the value for one bitcoin at $500 which is entirely realistic here. So your deposit is worth $1000 now.

Now assuming you want to take up a position in English pounds and the exchange rate is 2 dollars for each pound. That will yield 500 pounds. Now assuming rate for GBP/USD changes to 0.45 and you quote your position as $1,111.11. That equals a profit of 11.11%. But it is quite probable that the prevailing dollar rate for bitcoin will have changed in that time.

Let us assume $560 to 1 bitcoin. So now when you make a withdrawal in bitcoins the value of your position – which is $1,111.11 – divided by the current going rate for a bitcoin – which is $560. That means you will now be getting 1.984 bitcoins.

What Are The Benefits To Using Bitcoin?

  1. Decentralized valuations: There is no central bank here that implements random valuations on bitcoins. Being decentralized allow bitcoins complete immunity to any geopolitical or macroeconomic factors.
  2. Leverage: On average, the rate of leverage offered by forex brokers on bitcoin trades can be as high as 1:1000. And this can be an enormous asset to the more experienced players. But in any case, one must pay due caution to the projected losses that could be inflicted with a poor decision.
  3. No cost for transactions: Again, no banks or clearing institutions involved here since every bitcoin transaction is recorded on a public network and none of it is on paper. As a result, transaction costs normally do not apply to bitcoin even if that transaction is international. And with brokers not imposing a liable fee on bitcoin transactions, profits are that made that much sweeter.
  4. Slim deposits are enough: With some brokers that include bitcoin, you can begin with as little as $25. It goes without saying this is only trustworthy with a broker that is highly reputed and regulated by the law.
  5. Safety: Yet another benefit of not having a bank involved is you no longer have to produce your credit card or expose your bank account to make your transactions. And that is a big plus particularly if you are trading with foreign brokers since you get more privacy and incur far less of a cost.
  6. Trading at a low cost: With more and more bitcoin traders being added as clients, forex brokers incur increasingly lower costs on their operations.
  7. Limitless possibilities: Bitcoin dissolves the whole currency concept where each country runs on a certain value currency. Bitcoin does not submit to these boundaries. It is as applicable to a trader in the United States as it is to one in Hong Kong. Wherever traders are so long as they are willing, they can trade with no geographical concerns.

Conclusion

Such is the nature of bitcoin and forex and the benefits are very appealing to a lot of traders.

ethereum

How To Learn Everything About Ethereum

For those of you who are new to the concept of cryptocurrencies, no, the ether described here is far from what it is in the Marvel universe. What Ether means here is Ethereum’scryptocurrency which at its peak value was at $400.

That is an astronomical 5000% increase since the beginning of the year. So before we go into dealing with Ethereum in the forex market, it is well to get our eye in on what it is exactly.

What Is Ethereum?

As far as cryptocurrencies go, Ethereum is a prominent asset, second only to bitcoin. Despite its name, it is not something that came out of nothing. The blockchain technology that it uses is similar in many ways to bitcoin.

However, it is a programmable blockchain which means that its platform is Turing-complete. It also mean that significantly more advanced functions and applications can be added including other cryptocurrencies.

By contrast, bitcoin is limited to a singular function, facilitating peer-to-peer transactions in the form of a digital currency. It may have been the first to exploit the benefits of the blockchain technology, it has sustained scaling issues during its 8-year old life as a result of its limited functionality.

If this year has been any indication, we have seen some truly staggering growth with Ethereum. While it still remains as the second largest cryptocurrency, it is rapidly closing in on the top contender, bitcoin. Learn about bitcoin here.

And all guesses are this will happen through a phenomena known as “Flippening.” With Ethereum’s coin value having expanded dozens of times over within the year, we can only assume that it has further to climb in the coming weeks and months. No doubt then that an increasing number of traders will be keen to capitalize on this financially. So here some ways by which you can include Ethereum as part of your trading portfolio.

1. Create an Account on an Exchange

With etheruem as with any cryptocurrency, you can only buy or sell it through a transaction on an online platform. So stake out a service for this that is highly reputed. If you want some names, there is Coinbase, Bitstamp, Kraken, and Gemini. It is imperative that you select an exchange and create an account prior to trading Ethereum.

2. Verify your Account

A good tell of whether an exchange is reliable or not is if they require that you verify your account in one or multiple ways. That usually means uploading a certain amount of documents to confirm that your account is legit. The verifying process will likely take no more than a couple of days although that is somewhat subjective to the extent of activity your choice of exchange would be involved in.

3. Make a deposit in Fiat Currency

The next step involves depositing fiat currency to your account either through a bank or wire transfer. Once again, the duration of that process can last a few days before the money comes through.

4. Start Trading Ethereum

Now that you have a verified account with money in it, you are all set to purchase Ethereum as well as other cryptocurrencies through exchange. The interface differs more or less with each currency. But any case, be ready to confirm transactions and wait the allotted time which will also be pending on the full number of transactions that have been requested.

5. Withdraw ETH into your digital Wallet

Just as you have purchased ETH via exchange, you can now withdraw that currency straight into a wallet under your control. Hacking is an ever-present threat to exchanges so yes, you tokens are potential targets for theft. As a safety precaution, it is best to download and install a wallet that is compatible with etheruem and only grants you access through a key. That is about as private a place that you can acquire for storing your tokens securely.

Next you can enter the address of your account into the exchange so you can shift ether into your wallet. Take care not to use either your wallet address, password, or private key as you may encounter difficulty getting at your ether in the future.

Conclusion

Take your time, explore all angles and you can set yourself up nicely to buy Ethereum and enjoy its perks.

bitcoin

How To Learn Everything About Bitcoin

What is ‘Bitcoin’?

Well, the dry facts are that it was created in 2009 by one Satoshi Nakamoto whose identity currently remain anonymous. The main attraction of Bitcoin is the opportunity to incur lower fees on transactions relative to the conventional payment methods found online.

In addition to that, it operates under a decentralized authority. That is of course in contrast to government-based currencies. In any case, it is an idea that has now accumulated a market cap that is well over $7 billion.

And we still do not know the person or persons who came up with it. Strange times indeed.

We realize of course that we have eluded the question asked at the very beginning: What is Bitcoin? Bitcoin is a digital currency. It is, therefore, also a non-physical entity of which balances are retained in a public ledger in the cloud which also records every Bitcoin transaction.

Bitcoins are independent of any involvement from banks or governmentsand they represent no value at all as a commodity. They deal almost exclusively in a whole other realm known asvirtual currencies. We refer to them categorically as Altcoins.

Getting a Grip on Bitcoin

Being a cryptocurrency, Bitcoin balances are kept with use of keys, both public and private. These refer to multiple long strings of numbers that are connected through the same mathematical encryption algorithm by which they were first created.

The public key is very much similar to a bank account number. It is the address to which anyone can send in bitcoins. The private key is the cryptocurrency equivalent of your ATM pin number. So it is a private detail that is used to authorize a bitcoin transmission on your part.

The Mechanics of Bitcoin

Bitcoin was among the first of the digital currencies to integrate peer-to-peer technology make payments virtually instant. “Miners” is the term given to the independent persons and companies that run the underlying computer systems and are also active participants in the network.

Their incentives are based on the release of new bitcoin and payments made in bitcoin. They are the so-called decentralized authority that is so characteristic of the bitcoin network and they keep network credible and valid.

Bitcoin mining explains the process by which bitcoins are released into circulation. The main objective is to solve the complex computational puzzle that would reveal a new block which will then be added to the blockchain and receive a few bitcoins in return.

In 2009, that reward was worth 50 bitcoins and it continues to decrease ever 4 years. With an ever-increasing number of bitcoins being added, the difficulty of the mining process also increases. Back in 2009, the difficulty commenced at 1.0. However, this year, it is north of some 4.24 billion. Naturally, this meant upgrading computing power from a standard desktop computer too way faster hardware such as Application-Specific Integrated Circuits (ASIC), and more advanced processing units like Graphics Processing Units (GPUs).

What Is The Value Of A Bitcoin?

The bottom line is it is a lot. A single bitcoin today is worth well over a thousand US dollars which is exponential growth over last year when it was valued $770. The price of bitcoin is not correlated to the extent of the mining network. As for theprice of bitcoin increases in tandem with the cost of producing it. The mining network has thus far tripled its power in the past year or so.

Who On Earth Was Behind The Whole Thing?

For such a multi-billion dollar idea, you would expect to know a great deal about whoever came up with it in the first place. At least a detailed profile on the internet and the occasional public address to a group of college students or entrepreneurs or even a charity event?

But no, nothing more than aname that could refer to literally anyone has been attributed to such a world-changing idea. That name is the infamous Satoshi Nakamoto. It is thought to be the individual or group of individuals who released the first bitcoin white paper back in 2008 and developed the original computer software to support the network in 2009.

Conclusion

The bottom line is that this is now a highly lucrative enterprise that shows no signs of slowing down for the foreseeable future.

How to Be Successful in Forex Trading

Forex trading is a good opportunity to make an impressive profit. At the same time, there is also the chance that traders can lose a considerable amount of money.

If you want to avoid an unfavorable scenario, you have to know how to be successful in forex trading.

This means understanding what things you should be doing while also being aware of the steps that could lead to a bad trade. Here, you will find a comprehensive guide on how you can maximize your success:

Choosing the Best Broker

One of your main concerns involves choosing a legitimate and a fair broker. However, your search should take another thing into consideration – compatibility. First and foremost, you should find a broker that caters to traders with your expertise level.

If you are a beginner, for instance, find one with plenty of learning and support tools that will help you learn as you trade. Also, look for trading software that has a slow learning curve or that is very user-friendly and intuitive.

Deciding on an Approach That is Right For You

No two traders are alike. This is why the first step to getting you onto the path of success involves creating a plan of action that is right for you.

This means deciding on a time frame that you are comfortable with, choosing the best possible system, and finally settling on trading instruments that are compatible.

The timeframe that you will settle on will largely depend on whether you want fast results or are willing to weather some uncertainties.

When looking for a system, however, it is all about testing and retesting them, even after you have found one that works for you. In the same vein, make it a point to test out your system on the various trading instruments. This will help you to figure out which instrument works best with your particular system.

Start Small and Allow for Organic Growth

One of the most fatal mistakes that any trader can make with forex trading is starting off with high leverage. In the beginning, always start off with small amounts and with a basic account. Let your account grow naturally, via the profits that you make from your trades.

You will need to resist the urge to get higher and higher leverage if a particular account begins to fail. If your account is just losing money, the last thing that you want to do is to incur more debt in an attempt to stem the bleed.

Employ Risk Management

There is no denying that every forex trade has a certain amount of risk attached to it. Therefore, there is always the possibility that you will lose at least some money. Fortunately, there are a few ways to minimize how much risk you can incur.

The first thing you need to here is to avoid using gambling techniques such as the Martingale strategy or to place fast trades to make a quick buck. You should also always be aware of the odds of your trade being successful beforehand.

This will help you to determine just how much of your account you are willing to risk on that particular trade.

Monitor Your Emotions

Forex trading, or really any type of trading for that matter, has a tendency to trigger extreme emotions. These include panic, euphoria, greed, and even the odd adrenaline rush. However, if you want to be successful, you need to be objective.

A good way to do this is to set a plan for yourself once you have calculated the amount of risk involved. Then, once the plan is put into motion, stick to it and don’t make any deviations, regardless of whether you are feeling giddy from a win or anxious about a loss.

This is what you need to know about how to be successful in forex trading. This is not something that will be achieved over night. Instead, it will require learning, research, dedication, and common sense. Only then will you be able to claim victory.

How to Choose a Trade Expiry Time

Once you have decided to start trading binary options, you will realize one thing. There are a considerable number of expiry times to choose from. Now, it may seem relatively simple. After all, you just have to choose when a trade is going to end.

If you have ever placed a trade, however, you are aware that there this expiry time holds a great deal of weight. In the end, it may be the difference between you winning or losing a trade. If you want some insight on how best to choose the expiry time, keep reading:

Short, Medium, or Long Term Trades

This is probably one of the biggest debates among traders – what is the ideal trade time period. Short trades are typically defined as those lasting less than five minutes. Medium trades can range from about five minutes to a couple of hours.

Long term trades may even last a full twenty four hours. When it comes to short and long term trades, there is often a lot of arguments. This is because some traders feel it is easier to determine the outcome of short term trades.

Others, however, feel that a longer time period is simpler to predict. Most will agree, however, that medium length trades are the most prudent. This is due to the fact that these intervals tend to work well regardless of the market situation. With these, you can benefit from the release of new information as well as prevent your funds from being unnecessarily tied up.

Balancing Risk with Payout

So, if medium trade lengths are the easiest to predict why are they not more popular? The answer to this is simple – the payout rate. The payout rates for mid-range intervals are a great deal smaller than with short term trades. Therefore, they are less likely to appeal to traders. As there is a greater amount of risk with short term trades, the payouts are often excellent. Long term trades, much like the medium term trades, have lower payout rates. It is important to realize that regardless of what you choose, you are trading one aspect for another. Thus, you need to decide which is more important to you.

Expiry Times and Assets

Now, what most traders fail to take into consideration is the correlation between asset type and expiry time. Asset types are quite different to one another and as such behave differently. This includes how much their value fluctuates given a certain time period. Take commodities, for instance. Unless there is a particularly volatile market situation, it is unlikely that the price is going to change quickly. Therefore, you will have better luck with short term trades.

Conversely, with stocks, you are typically only able to discern any real changes over a longer period of time. This is why long term trades are more appropriate in such a situation. With currencies, you will find yourself being more successful in medium to long trades as the currencies tend to fluctuate minutely over short periods of time.

The Deciding Factor

To start off with, you may experiment with a variety of expiration times. After all, it is only with practice and experience that you can truly decide what is best for you. You may find yourself being more comfortable with one expiry time over another. This is fine as long as you conduct the proper analysis before deciding on an expiry time. This is because what will work in one market condition will not prove to be successful in a contrary situation. This means that you should not begin to automatically rely upon one interval over another.

All of this information will help you with how to choose a trade expiry time. Remember to always base your decision on fact and research rather than intuition or ease of method.

How to Decide on Currency Pairs to Trade With

With forex trading, one of the things that you are going to need to narrow down fairly early on is which currency pairs you want to trade. Now, considering all of the options available to you, this can be quite tricky.

For instance, should you simply pick at random? Do you stick with the majors or decide on lesser considered pairs? Are there pairings that are more superior to others? In this article, we discuss how to decide on currency pairs to trade with. Here is what you need to know:

Start Small at First

Before you go any further, there is one piece of advice that you should adhere to in the beginning. Typically, it is best to start off with one pair, at least until you are more comfortable with forex trading. Many traders believe that by choosing several currency pairs, they are giving themselves a better chance at success. However, what usually happens is that they end up juggling too many duties and end up losing out with one if not more of the pairs.

The Major Currency Pairs

There are some currencies that are more well-known or widely used than others. At the very top of this list is the United States dollar. Since they have the largest economy which constitutes about 25 percent of the gross world product, it is usually the favored reference currency. Not to mention, it is largely considered to be the reserve currency of the world.

Along with the US dollar, other important currencies are the Euro, Japanese Yen, British Pound, Australian dollar, Swiss Franc. These are what are frequently traded against the dollar. Together, they make up what is known as major currency pairs.

Now, most people assume that these major currency pairs are the best ones to trade with. However, while the major currencies are the most traded pairs, they are not always the best. These pairs tend to be the most volatile as they experience fluctuations throughout the trading day. This volatility, though, gives you just as much chance to make money as to lose it. The most important thing to remember about major pairs is that they have favorable trading conditions due to lower spre Despite this, these may not be the best for you.

Choosing a Compatible Currency Pair

When choosing a currency pair, any currency pair, information and analysis will be your most powerful tools. This will help you to gain a better idea about the direction in which the price of a given pair will move during a particular time period. You need to be able to understand what influences price changes, whether there is volatility, and how one currency can work against another.

It is the conditions mentioned above that prove that choosing major currency pairs is not always the best option for everyone. Rather, you may find greater success with choosing pairs that you are familiar with. Since you have a greater understanding of the value as well as the factors that influence it, you have the upper hand. Oftentimes, traders find that dealing with their local currency can be quite helpful.

As a rule of thumb, stay away from currency pairs with high spreads and stick to those with 0 – 3 pips. The higher that you go, the more expensive that it can get for you. Anything over six pips may prove to be too costly for the average trader.

Good Options for Beginners

If you are looking for something relatively easy to start off with, you may want to try USD/EUR. This is largely because of its low spreads and that the technical analysis that is involved is quite simplistic. Also, these pairs experience minimal volatility so you don’t have to take on a lot of risk. The USD/JPY can be just as profitable for new traders.

This is how to decide on currency pairs to trade with. You should consider what you are comfortable with along with what can provide you with the greatest profit.

Forex Trading Strategy

Getting a forex trading account is really not far off from signing up for an equity account. There is one very real difference. And that is with a Forex account, you will need to sign an agreement that specifies that the funds you are trading with are lent to you by your broker that therefore retains the right to interfere with a trade to prevent any losses on its part.

A Basic strategy for Forex trading

Coming up with strategy for Forex trading can be a part of two kinds: technical analysis and fundamental analysis. It is worth noting that with Forex markets, technical analysis appears to be the more prevalent type of strategy used by traders. Nevertheless, it is helpful to understand both in some measurable detail regarding how they affect Forex trades.

Technical analysis

Similar to equity markets, technical analysis has a lot to do with price trends in Forex markets. However, unlike equity markets, Forex markets function 24 hours a day so some elements of the methods of technical analysis would invariably require some tweaking and adjusting. We have listed some of the most popular forms of technical analysis below.

  • Parabolic SAR
  • Fibonacci studies
  • Pivot points
  • The Elliot Waves

Such studies are combined by technical analysts to draw out sharp predictions regarding the market.

Fundamental analysis

If you have ever undertaken fundamental analysis, you might get why technical analysis is usually the more preferable strategy with Forex Trading. Fundamental analysis here is a lot more complicated but getting it right enables you to see clearly into long term trends. There are several different indicators of currency values. We have listed a few of them below.

  • Durable goods
  • Consumer Price Index
  • Non-farm Payrolls
  • Purchasing Managers Index
  • Retail sales

Aside from the aforementioned reports, other factors such as commentary from meetings can have a similar influence on the market. The meetings in question are often prompted by a need to talk about matters that deal with currency values such as inflation and interest rates. We would humbly remind the chairman of the Federal Reserve that with great power comes great responsibility.

So what is your strategy?

The truth is your strategy is bound to be as unique as you are. Pretty much any successful forex trader has been working on their trading strategy overtime and perfecting it as they go along. Experts suggest employing elements of both technical and fundamental analysis so that traders have an accurate idea of long-term happenings as well. As far as we are concerned though, there is no greater teacher here than the simple trial and error method. Only you as a trader can truly know which strategy will best serve your interests.

Just be careful to consider the following.

  1. Start off with a demo account work with it until you are confident enough to trade with real funds. That leverage potential is always intimidating enough for you to hold off yur real funds until you have gotten enough practice.
  2. Remember that facts do not care about your feelings. If you make a move based on how you feel instead what is logically valid, you just increased you chances of making a loss. Stay sober about reality and make your trades about little else except cold hard math.
  3. Always keep a watchful eye on the trends. There is no good reason to swim upstream here. Going with the trend almost always gives you a much higher success rate.

Conclusion

And that is just about all you need to know about coming up with your ideal Forex trading strategy.