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Forex Trading Tips Every Trader Should Remember

The foreign exchange market is the largest financial arena in the world with an average of $5 trillion worth of trades conducted every day. With a market of this size where changes occur on a split second, trading can be mentally and physically challenging. There is no single formula for success when trading currencies, but the following forex trading tips can be a major help for novice and veteran traders alike.   Don’t forget the basics   Investors must have basic understanding of the major concepts that characterize forex trading. Study the necessary jargon related to the currency market, especially regarding market movements, and the leading trading strategies.   Avoid instant change of methods   One of the biggest mistakes in trading is consistently and instantly changing the strategy whenever someone loses a trade. Remember that the forex market normally sets a trend, whether short-term or long term. So, you should be patient with your method until it works.   Set aside emotions   A trader’s worst enemy is usually his/her own emotions. Traders, beginners in particular, tend to get easily overwhelmed when someone wins a trade or freak out when they lose. You have to accept the fact that the forex market will not ALWAYS move in your favor. One of the most crucial forex trading tips is the need to tone down your emotions and be mindful of the situation while planning your next moves in a rational and prudent manner.   Look for a mentor   If you want to succeed in currency trading, you will most like need help, at least in the beginning. Looking for a mentor who has more experience and knowledge of the field is highly recommended. A good mentor will give you useful forex trading tips, teach you efficient strategies and help you understand better major market dynamics. A veteran trader will help you avoid the mistakes he/she made as a novice investor.

ASX 200 List of Companies

The S&P/ASX 200 is the primary stock market index of Australia and is made up of the top 200 companies’ stocks that are listed in the Australian Securities Exchange. The ASX 200 list of companies include businesses whose valued is estimated as higher than $380 million. Some of the companies are worth more than $100 billion.  ASX 200 Selection Process   Companies that are selected to be included in the ASX 200 list go through a committee from Standard & Poor’s and the Australian Securities Exchange.  All of the companies in the Australian Securities Exchange are rated according to their market capitalization and (with the exception of exchange traded funds and Listed Investment companies) the top 200 stocks according to specific criteria become a candidate for inclusion in the ASX 200 list.  For four times every year in the month of March, June, September and December, the index goes through a rebalancing process. The market is notified at least two business days before this occurs. If special events – such as mergers and delistings – take place, then an intra-quarter rebalance is initiated.  Top Companies According to Market Cap   Commonwealth Bank   The biggest company in the ASX 200 list of companies with a market cap of $124 billion is the Commonwealth Bank, which is an Australian multinational bank with businesses in places such as Asia, the U.S. and New Zealand.  the Commonwealth Bank is a member of Australia’s “big four” banks.  BHP Billiton Ltd.   BHP Billiton Ltd. is a multinational mining, metals and petroleum company with a market cap of $102 billion. With a revenue of 69.4 billion US dollars, BHP Billiton Ltd is the second largest mining company in the whole world second only to Switzerland’s Glencore.  Westpac Banking Corp.   Usually referred to as Westpac, this Sydney-based bank and financial services provider is one of the “big four” banks in Australia. It is, at the moment, third in the ASX 200 list of companies with a market cap of $98.76 billion.  CSL Ltd.   CSL Limited is a biotechnology company which handles the research, development and manufacture of medical drugs. Its market capitalization is approximately $82.76 billion.  ANZ Banking Group Ltd.   ANZ is the third of the “big four” banks in terms of market capitalization right after Commonwealth Bank and Westpac. It possesses a market capitalization of $81.65 billion.

Three Principles of Technical Analysis Used in Trading

Technical analysis has always been a top strategy for investors in reading and analyzing the price movements of a certain asset. With more and more investors using technical analysis, plenty of tools and indicators have emerged for more precise prediction of market price movements. Investors and traders must not disregard these important indicators that may help them in their decision-making.   Market information reflects assets prices   The first major tenet of technical analysis is based on the assumption that all market information - the past and current ones- take notice of and serve as the reflection of the prices of financial assets such as stocks and currencies.   Market information includes how investors perceive inflation or how they react to macro-economic developments, such as interest rates and everything that may affect assets prices before the close. When new market data comes in, it is immediately priced into the market.   Assets prices are moving in trends   For technical investors, the movements of assets prices always go with a noticeable trend. According to this principle, an asset will set a trend and will follow the same direction in the future rather than separate from it. In other words, if a stock price has been on upward trend for the first quarter, it will more likely be on the same page on the second quarter.   History has fixed patterns   In technical analysis, there is always a fundamental belief that history will repeat itself.   Since all market data are considered, including past information, technical traders believe that past price movement of an asset could actually happen again. This in fact gives highlight to market psychology as previous market patterns remain relevant.   Good analysis will combine past, present and future into one whole while taking into account the psychology of investors; that is to say, their probable reaction to the asset’s prevailing trends.

Bitcoin Investment Tips to Help You Get Started

Bitcoins and cryptocurrencies, in general, have greatly transformed the way that we make payments. Just in the beginning of 2017 we saw the price of bitcoin at $1,000 and go up to $20,000 near the end of the same year. Seeing this rapid increase in price, people were quick to get into bitcoin investment and even now that bitcoin has gone down to about $8,000 people are still getting into the hype.  Looking to get into bitcoin trading? Here are some tips to help you get into bitcoin investment.  Know Just What You’re Getting Into   Just like with any form of investment, you should know about Bitcoin before you make any attempts at investing in it. It helps a lot if you are technologically savvy as you can quickly learn the underlying technology that is involved in bitcoin trading. Moreover, you can try and read Satoshi Nakamoto’s original 8-page white paper about bitcoin.  Be Aware of How Risky Bitcoin Can Be   Risk is an inherent part of any investment, but it should be noted that upon getting into bitcoin investment, you will be exposed to a higher level of risk compared to more traditional assets. It is crucial to remember to only invest money that you can afford to lose, especially when it comes to bitcoin which may drop by more than $5,000 in value in just a span of 6 days. Try to be conservative and start with investing small amount of money. You can slowly increase it as you get more experienced and comfortable.  Get a Bitcoin Wallet   Get a bitcoin wallet if you want to start your bitcoin investment journey on the right foot. Exchanges should only be for buying and selling bitcoin and not for storing them. This is because many bitcoin exchanges have been victims of hacking in the past.  Don’t Bet Everything on Bitcoin   In one of the previous tips we looked at just how much value bitcoin can lose in just a small amount of time so it may not be a good idea to place all your eggs in one potentially volatile basket such as bitcoin.  A great investment advice to always follow is to diversify your investments . Apart from your bitcoin investment, you should set aside capital for other cryptocurrencies and traditional assets like stocks. Thus, any losses that you may experience in one investment can potentially be offset by the gains made in other investments.

Things to Keep in Mind before Investing in Shares

There are a few aspects an individual needs to be aware of before investing in shares. People are attracted to the stock market as stocks are known as assets that generate profit in the long run. However, looking back at the financial crisis of 2008, major companies from Wall Street plummeted and stock prices dove sharply. Polls have been suggesting that Americans are afraid of the next “Great Depression”, which many believe is bound to happen this year. This article will serve as a quick introduction to investing in shares.  What are “Shares”?   A share indicates partial ownership of a certain company. Put is simply, buying a share will give investors the chance to possess a chunk of the business and, therefore, the right to a portion of a company’s earnings. A firm sells a share if it’s looking to raise capital for the sake of expansion. Shareholders are paid in dividends once or twice a year.  Shares will be sold at a particular price which represents the value of the company. The higher it gets, the higher the price a share can be sold at.  How to start?   Investing in shares is carried out with the help of a broker. An investor has to choose which and how many of a company’s stock he / she wishes to buy. Some of the most important things a trader should take into account is the company’s earnings, debt, sales, and equity per year. Obviously, one should strive to invest in a company that is stable and has growth potential in the foreseeable future.  What are the Risks?   People should know the difference between investing and saving – the former may generate high profit but it involves risks. The moment you invest your money in a certain share, you should be able to assess the probable return you may have. However, as the market tends to shift, it should be understood that investing in shares does not guarantee profit. You may lose money. That is why, it is always recommended that you start modestly until you acquire enough knowledge and experience to take more significant risks.

How the Overhaul in JSE Top 40 Index Affect Investors

The Johannesburg Securities Exchange, popularly known as the JSE Top 40 index, experienced a major overhaul last month as four of its former companies were axed out of the South African stock market while four others crossed the line to take the place of those four firms.   With rebalancing taking place, uncertainties and volatilities come to the surface as investors are exposed to more irregularities in the index.   Fall of the Giants   The South African equity market needed to deal with the exit of four big firms: Fortress, Steinhoff, Intu Properties, and Resilient. The latter was forced to depart from the index with half of its market value slashed this year.   Earlier this year, STeinhoff, a retail giant, experienced a whopping 90% decrease in its share value. Fortress, of which 16% was owned by Resilient, also tasted its own stock price dive. This exit of both Resilient and Fortress gave a major blow to the property sector, which accounts for nearly 10% of the JSE Top 40’s market capitalization.   As of now, the logistics sector has taken over the front seat, with Imperial Holdings and Spar at the top of the food chain after the dramatic fall of the giants. Joining Spar and Imperial Holdings as the four new members of the JSE Top 40 are Truworths and Foschini Group.   The weakness in the property sector made investors flee the stock market, following a massive sell-off from hedge funds and short-term investors. Some long-term investors have started to pull out their investments as well.   Naturally investors will feel more pressure on the buying side as tracker funds will have to coordinate with the new JSE Top 40. In this case, share prices in the index must reach a point of stability before investors restore their confidence and willingness to take risks.

Maximizing Capital and Returns through Financial Leverage

When you enter the world of financial markets, it is important to know and understand various terms such as financial leverage. We may often hear the word ‘leverage’ in the business and corporate setting but in trading stocks or foreign exchange currencies , it is also quite useful in boosting your capital and potential returns.   Practical Strategy   Financial leverage is the activity of borrowing additional money in a bid to gain more capital to generate more returns. Most brokers in the trading world offer their respective leverage but other financial instruments such as futures and options work the same way.   To understand financial leverage using figures, let us assume that the famous iPhone maker Apple Inc. will release its iPhone 15 tomorrow. Of course, a lot of people will be anticipating this latest model so you are expecting that the company’s shares in the stock market will rally by 20-30% or more.   Unfortunately, you just found out that there is only $5000 left in your funds to invest in the firm’s stocks. If you win, you will be able to get $6500 in return as profit. But you want to invest more money in the stocks since you are 100% of the stock price surge.   This is where the role of financial leverage comes into play. You can borrow additional $5000, for instance, to double your capital up to $10 000 and buy more shares from Apple. Then after the rally in the stock price had taken place, you can sell your investment at $13 000. From this you can get $7000 as your return after paying the loan of approximately $6000.   On the other hand, if the movement of stock prices does not match your prediction, then you may be dealing with multiple losses. This means that financial leverage will be beneficial if you have high level of certainty about the future movement of the shares you invest in.

Ethereum vs Bitcoin: The Two Sides of the Coin

Cryptocurrencies have been making some noise in the past four years, with the rivalry between Ethereum vs Bitcoin at the center of discussion. So far, bitcoin has gotten much of the attention from million sof investors around the world. It is, by far, the biggest cryptocurrency in terms of market capitalization.   Meanwhile, if there would be a bridesmaid to the biggest winner, that would be Ethereum, which has also carved its name in the investment realm because of its unique features.   If you are an investor, would you jump the bandwagon and choose Bitcoin or try something different like the Ethereum?   Let us take a look at the two sides of this competition between Ethereum vs Bitcoin.   Birth Year   Obviously, Bitcoin has first touched the consciousness of people when it was introduced in 2008 by Satoshi Nakamoto, an alias. It was the first born virtual currency in the global market while one of its successors, Ethereum, only showed up by 2015.   Store of Value   In the Ethereum vs Bitcoin rivalry, investors must look closely to their storage features.   Of course, Bitcoin has the edge on this one. Being the most successful and most popular digital asset, investors trust Bitcoin for storing value more than its counterparts such as the Ethereum.   With the reception Bitcoin gets, people became more comfortable in buying, selling, and storing it.   Ethereum, on the other hand, is no less popular. In fact, it is the second biggest in the cryptocurrency market.   Unlike Bitcoin, which has only 21 million, it has continuous and constant supply of coins in the market.  This is the main reason why the former has bigger value compare to the latter as much as the law of supply and demand is concern.     Mode of Transaction   In this case, Ethereum gets its nose ahead.   Despite the having bigger capacity to store value, Bitcoin was outperformed by Ethereum in terms of being mode of transfer.   In 2017, two years after Ethereum was introduced, it has instantly become the preferred transactional medium as it recorded twice the volume of Bitcoin in number of transactions.   Built to become a more optimized digital asset, Ethereum allows users to conduct transactions even they are using other types of cryptocurrency, with the transaction costs lower than Bitcoin.   Investors may have a hard time choosing side between Ethereum vs Bitcoin but as they continue to develop, you may pick both as investment destinations in the future.

Reasons to Invest in ASEAN Countries

ASEAN, or the Association of Southeast Asian Nation, is an organization that consists of ten countries with a purpose of accelerating cultural development, social progress, and economic growth by joint endeavors. The following article will focus on ASEAN countries separately explaining the role teach fills in the organization.  Brief History   ASEAN was formed in July 1961 and was initially called the Association of Southeast Asia (ASA). “ASEAN” as it is known today started operating on August 8, 1967. Its members have been motivated by the same thirst for economic development and fear of communism. ASEAN managed to stay strong for 5 decades celebrating its golden anniversary last year.  ASEAN Member States   Thailand   Being a member since 1967, Thailand benefits from a flourishing consumer population given that the country is located at the crossroads of two huge markets – India and China. Thailand is actively involved in the ASEAN Free Trade Area (AFTA). Indonesia Indonesia has been active in the organization since 1967. Along with other ASEAN countries, it played a major role in mitigating regional conflicts and establishing economic cooperation. Philippines   As one of the founding members of ASEAN, the Philippines is currently considered the new tiger in Asia due to its robust economic development. Its high quality human resources make the nation an attractive place for investors.  Singapore   Singapore has recently approved the ASEAN Framework Agreement on Visa Exemption (AFAVE), reaffirming its commitment to facilitate safe travel for ASEAN countries. The framework also allows member states to formulate separate bilateral protocols. Being in control of The Strait of Malacca, Singapore is a major maritime transportation center in the region.  Malaysia   Malaysia is a central investment hub in South East Asia. Investors benefit from the country’s more than 200 industrial parks. Malaysia offers special stimuli to foreign businesses.  Brunei   Regardless of being a small country, Brunei offers its citizens high standards of living as its GDP per capita is $38,703 (as of 2011) – the second highest among ASEAN countries. It stable economy attracts investors from all across the globe.  Laos   Laos became An ASEAN member in 1997. The country takes great pride in its rich natural resources. It exports tons of gold, wood, and coal to all ASEAN countries.  Cambodia   Cambodia is a new member in ASEAN. Agriculture is its leading sector as it accounts for more than 32 percent of its economy as a whole.  Myanmar   Along with Laos, Myanmar joined the group on July 23, 1997. Due to the fast-economic development that characterizes Myanmar, investors have been discovering that country in recent years.

ASX Futures: A Mediocre 2017 and pessimistic predictions for 2018

The stock market in Australia in 2017 did not perform as well as it was expected after it recorded only 6% gain in total. This figure is pretty low and a little bit disappointing considering that global stock markets were enjoying massive advancement in the wake of the bullishness seen in Wall Street. Investors are hoping that ASX futures will stage a big rebound this year but they might be disappointed again as predictions are not optimistic.   Two opposing views   With limited gains set last year, opinions from financial pundits portray a dual picture.   It is a really a big challenge for ASX futures to keep its bullish legs fresh in order to rack up more gains as bears may claw itself deep down in the heart of index. In fact, one cannot rule out the possibility that ASX futures may be heading into advancement that is at its outmost no more than decent.   The leading multinational investment bank, Morgan Stanley, is more pessimistic as it fears ASX futures will end up in the bearish territory with the Aussie equities tumbling by 3% towards 5,800 by the end of the year. Morgan Stanley takes into account the downward trend of the Australian dollar, the slow economic growth, and dull corporate earnings as the source of evil.   On the other hand, the top American multinational investment bank, Goldman Sachs, has adopted a more positive point of view. It expects that ASX futures will end the current year at 6,500, recording gains equivalent to 8%, at least 2% higher than the figures last year. What is more, the bank boosts its prediction to 13% rise if dividends are included.   Macquarie, another top investment banking company, joins Goldman Sachs on its positive prediction regarding the ASX futures. Although it does not provide specific numbers, the bank believes that the Australian stock market is on its way to greater heights in the next two years.   Only time can tell whether the bear or the bull is waiting for ASX futures. Investors are advised to remain vigilant and closely monitor market trends before making any significant decision.