Investing in Forex and the secrets of financial success
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Options are growing in popularity among investors as hedging instruments for various asset classes, such as stocks and currencies. Panic in financial markets forces investors to look for attractive ways to allocate their portfolios and opportunities to earn on downtrends. Therefore, let's talk about options in more detail. Option - is a financial instrument, which gives the holder the right, but not obliged, to buy or sell the underlying asset at a stated price on or before the expiration date. There are 2 main types of options: Put option (put) gives the holder the right to sell the asset. It is purchased when the investor believes that the value of the asset will decrease before the expiration date. A call option...
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Bond trading is one of the oldest and most traditional forms of financial investment, widely known for more than a thousand years. Although bonds lack a bit of the glitz and excitement of stock and currency markets, they constantly maintain their appeal to investors. Bonds are issued by a company or organization for the purpose of raising financing. When an investor purchases a bond from such a company or organization, he or she is essentially lending that organization an amount of investment, and an agreement is made with the investor to repay at a predetermined time in the future. Between the time the bonds are issued and the repayment of the debt, the investor is offered a series of interest payments known as "coupons." The investor's return, or "income at the time of...
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A personal trader is another type of classic customer-executor business model used in the foreign exchange market. In last week's "Looking for a Trader" article, we talked about how investors look for traders to place their investments in . However, investing in the foreign exchange market is a two-way process, involving not only the investor, but also the trader. And if investor invests his own money, trader invests his own knowledge, skills and experience in trading on the currency market. Attracting investments to develop own business is a common practice, that is why every reasonable trader sooner or later comes to the idea of attracting investors' money to trade. What changes when you go from...
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We continue to examine the methods we began in previous issues for building a profitable investment portfolio. In the 88th issue of ForTrader.org we will substantiate the construction of an optimal investment portfolio in the foreign exchange market using the Markowitz model. It should be said that this method has long been used by traders, but has never been applied to . Let's see what results we will be able to achieve. To build an optimal investment portfolio, we will take the following emerging currencies: the Indian rupee, the Chinese yuan, the Brazilian real and the Mexican peso, all quoted inversely to the U.S. dollar. Notations: Rupees/USD - the value of one Indian rupee in U.S. dollars, Yuan/USD - the value of one Chinese yuan in dollars...
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You have invested money in stocks. On your own or through mutual funds. Everyone can have a different amount, but every investor, regardless of the amount invested, can panic when the market goes the wrong way. The investor waits for the market to roll back, a day waits, two days, a week, but the market slowly but surely begins to fall. It seems that a "bearish" trend has begun... What to do at this moment? What to do in such a case? Sell everything or wait out losses on investments? Determine your investment objectives BEFORE you make a trade You should realize that you may have made a mistake before you bought the stock. Before you buy, it is advisable to formulate your investment...
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Forming an optimal investment portfolio on the Russian stock market. To evaluate the attractiveness of a financial asset, investors use classical fundamental analysis and resort to technical analysis to determine the best time to enter and exit the market. To build an optimal investment portfolio for the Russian stock market let's consider the CAPM (Capital Assets Price Model), proposed by W. Sharpe in the 60s of the 20th century. This model allows you to determine the future return of a security through a linear regression equation: Making a CAPM Model for an Investment Portfolio The beta coefficient of a stock is a measure of the market risk of a stock, showing the variability of the stock's return to the market return in...
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It's coming up to February 14 - Valentine's Day, also known as Valentine's Day. The question of what to give the person you love is asked by millions of people around the world. The most practical can advise themed investment coins or financial gifts. What men want: If you certainly have the opportunity to please his beloved investment coin, do not even think, the gift will like on 99.9%. We can recommend the U.S. Federal Reserve investment bill coin, worth about $345. 31 ounces of silver plated with pure gold. Just think, is it worth that kind of investment! What the ladies want: There is, of course, no unequivocal answer. But I will allow myself to state that very few, most likely a minimal part of the ladies...
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These days the international currency market Forex is the most popular option for working in the financial markets. The scheme of its functioning is close and open for understanding for the most part of the population, which, one way or another, faces with currency transactions in everyday life. As far as the CFD-contracts trading is concerned, this type of speculation is only gaining momentum at the financial market due to the trivial logic of the working process arrangement and availability to the interested audience. Similarities of Forex and CFD tools While defining similarities and differences between these trading methods, many professionals and financial market gurus have highlighted the following similarities between Forex and CFD trading tools: trading is conducted in the trading platform...
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Options are one of the universal exchange instruments, which can be extremely profitable. That's what we're going to talk about today. The cost of options is surprisingly small, and by using them properly, you can reduce or eliminate the risk of your trading strategies altogether. What is an Option? An option is a flexible investment exchange instrument. Basically, an option is a contract which gives you the right, but not the obligation, to buy or sell the underlying asset (futures or stock) in the future at the price agreed today. Why do I choose options? One of the advantages of options is that they can be used for a very wide range of strategies that have different risk/profit profiles. Some such trading strategies...
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Having gone through all the circles of hell of learning to trade in the foreign exchange market, you can proudly call yourself a trader. However, nothing and nobody can guarantee that using the latest trading strategies and best technical indicators will make your trading profitable, because a correctly made forecast on a currency pair is the basis of your income. Frankly speaking, this is not an easy task and not everyone can do it. That is why many traders decide to put it on the shoulders of a robot, giving preference to automated trading. What are the ways of automatic trading? Of course, we were lying a little bit. Trading, in any form, requires minimal, but still requires the participation of the trader. We will consider the two most common ways...
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Every one of us dreams of having a passive income. To get money without doing almost anything, what could be more beautiful? One type of passive income is investing, when the money invested generates a steady income. Where did investing come from, and what interesting investment-related cases have happened in the financial world? Historical Background As surprising as it may be, investing began much earlier than the full-fledged financial markets. According to archaeologists' discoveries, investing money in order to multiply it took place before our era. People quickly came to the understanding that simple storage of money does not make anyone rich. One of the themes in the educational system of the ancients...
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December is the best time to fund an Individual Investment Account (IIA). My clients are in the pleasant bustle of the New Year, and I help them invest their IIM money in bonds, stocks, mixed strategies using conservative instruments and futures. Moreover, these mixed strategies, due to the peculiarities of IIAs, involve not only speculation, but also long-term investment in our market, oil and gold. Why do you lose 52 thousand rubles? The work is boiling! Beautiful! But the more I talk publicly about what I'm passionate about now - the more I come across the fact that a huge number of people, even those involved in stock trading, still have, after three years of starting programs...
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Before you buy the cryptocurrency itself, you need to have a wallet for it, and it will be as virtual as the currency. The first thing to remember once and for all is that the more complex the verification system for logging into the wallet, the better. Second, the pin code cannot be recovered. If you forget it or lose it, the ability to log in to the crypto-purse will be lost. Crypto Wallet in your pocket There are a lot of online services offering creation of crypto wallets. Usually, this will require identification - the system will ask you to send copies of documents for verification, and only then will provide an opportunity for registration. The wallet interface in most cases is similar to the format of online banking - everything is intuitive there...
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Many novice traders lose money and/or become disillusioned with stock trading because they do not know how to compare their trading achievements with what inflation, deposit or market movements in general may have taken away from them. Profit Perception Mistakes The only tool many traders have for analyzing trading results is their personal desire to earn a certain amount of interest. Where these goals come from is unclear! I just want! And if this mythical profit doesn't come - apathy to trading sets in. It is easy enough to fight this disease if you monitor your trading results once a month, comparing them to alternative investment strategies - stock indices, inflation rates and deposit rates. There are...
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[info_block align="right"]The stock market is designed to redistribute money from the active to the patient[/info_block] Quite a lot of traders are spoiled by other people's success stories, ideas of quick enrichment and the hope that the so-called "trading grail" will be found. In the vast majority of cases it all leads to losing a trading deposit and regular losses or refusal from trading altogether. And in fact many of us simply forget about the main purpose of the stock market existence - that is investing. I have met two main groups of opinions on investing. The first opinion is that you can't make much money on investing. The second is that investing is the destiny of rich people....
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[info_block align="right"]The principle of classical arbitrage is based on making profit from price differences in different markets. [/info_block]The demand for cryptocurrency is constantly growing, and it is gradually becoming a worthy analogue of official money. At the same time, cryptocurrency as a trading instrument, begins to cause more and more interest among traders, which can not be ignored by the explosive growth in the number of crypto-exchanges and trading turnover. The market for cryptocurrency exchanges is still quite young, but it is actively developing. The fact that the market is still in its infancy plays into our hands, as it opens up a large number of arbitrage opportunities. Below is the current list of cryptocurrency exchanges, sorted by trading turnover. As we can see, OKCoin is now the undisputed leader...
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New institutions are coming to the Russian financial market, the popularity of which is growing rapidly around the world. With the entry into force of Federal Law № 145-FZ of 28.07.2012 "On Amending Certain Legislative Acts of the Russian Federation" from September 1 of this year, investors have the opportunity to invest in exchange-traded mutual funds, which in foreign practice are similar to ETFs. Basics of ETF-funds The first ETF-fund (Exchange Traded Fund) appeared in Canada, however the starting point in the history of development of these financial institutions is rightly considered to be the creation in 1993 in the USA of a spider - a fund oriented to investments in stocks included in calculation of S&P500 index. For almost...
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Almost every dealing center and broker has a group in the list of instruments, which is called CFD. With CFD on commodities and goods, everything is less clear, but CFD on stocks are less popular. This article is written in order to make this type of trading instruments more understandable for ordinary traders. It will be mostly written in a dictionary format with accessible explanations for traders with different level of training. Also, I will try to indicate the original English terms in brackets, because they are more universal and you will often come across them when working with CFD stocks. I will not make long introductions, we will go straight to the subject. CFD is absolutely...
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Starbucks operates all over the world: North and South America, Europe, the Middle East and Africa, and China/Asia-Pacific. The coffeehouses offer coffee and tea and sell packaged roasted coffee beans and ground coffee. In addition to operating its own network of coffee shops, the company sells licenses to use its trademarks. As of the end of March 2016, the company owned 23,921 coffee shops. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. About Starbucks Stock (SBUX) Starbucks stock has been traded on the NASDAQ American Stock Exchange since 1992, the company's ticker to search the exchange's website and other sites that provide...
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Often people who buy Hasbro stock are driven not by a detailed analysis of financial statements or the company's acceptable value, but simply by their love for their products. Moreover, their products are already very familiar to the Russian consumer as well. Especially those who have children. And the game "Monopoly" is probably known throughout the world, and 19 March is even marked the world day of "Monopoly". The brand was first introduced back in 1935. Synopsis: About Hasbro Shares Hasbro shares have been traded on the U.S. stock exchange NASDAQ since 1978, the company's ticker to search the stock exchange's website, as well as other sites that provide information on stock exchange quotes, HAS. During March, the value of one...
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