Young Investers

Since youth are the dominant contributors to the Gross Domestic Product (GDP), they make a great difference to the economy. All the major concern center around young population. As compared to the past, today the individuals are more financially potential and independent and it is all because of steep rise in tertiary sector. Now-a-days spending a few bucks on coffee or on shopping has become a casual activity which was very rare some time ago. It is all because of changes in lifestyle and adoption of western culture not the youth of today hardly think of 'savings' for the future. There is a need to focus on the disability of savings despite the fact that there are insufficient earnings.

There are just few things we should understand and minor changes we should bring to inculcate the habit of investment to bridge the gap between income and spending. One should know the sum of money earned in the form of salary and the avenues where this income is spent. Now what is salary? It is the amount working people take home after deducting the tax and contributions to EPF from gross income. This balance is also called net salary. Thus, to save you need to deduct expenses from salary.

Analysing goals- 

Goals are basically the personally set standards which one wants to achieve to reach the target. These are our milestones which can help in taking right decisions. Goals can be set for different time periods say- 

a) For one or two years, called the short term goals. They require immediate attention. 

b) For five or seven years, called the medium term goals. They give us time to wait and analyse things between investment period and return period. 

c) For ten or fifteen years, called the long term goals. These are meant for retirement.

Opting for a suitable investment plan- 

Investment plan means channelising your money in the most efficient method. Since various plans are available in the market but only right plan can reap benefits in the future and for that an expert advise is highly appreciable. After selecting an appropriate plan start your investment considering the retirement because a small amount invested today can make your future bright.

Investment planning is not a one time phenomenon but it needs to be received and readjusted according to the present need and trend to make investment successful. Thus, it is high time that the youth of our country should be made aware about the best investing options and its benefits for them in the long run. Also since the young generation is the representative of the present and future economic condition of the country so they should be driven by the right motive and prospective.

1. Investment - A thoughtful task making investment is not an easy task so it requires a careful analysis of its pros and cons. You should know the purpose and need for using your hard earned income in the most profitable venture. Don't be convinced by what your friends or neighbours or relative advice you to invest in because all have their own needs. Besides realising your need you should also be aware about the risk associated with investment plan. As it is said that more the risk, higher the chances of returns, so to earn more profit you should make careful decision about your risk taking ability. Let us consider a situation where we want to buy a bungalow in next seven-eight years so for that traditional method of investment would not be efficient rather we have to invest in stock or mutual funds for an additional advantage.

2. Get insurance - Financial goals can only be fulfilled when one lives a healthy and secured life. You should not get a term plan which has a greater coverages and last till 75 years at least. It should also increase with increase in income. In case of change in job where insurance facilities are not available on increase in coverage becomes essential. At any stage of Life you can suffer from health problems so you should try to get the best facilities and the most efficient as well as reliable term plan. Investing in health or life insurance not only protect you but also your family from unpredictable circumstances. The young generation should set up an emergency fund that would benefit them in long run. Thus, the youth are not that young that they do not know how to increase their earnings or make better returns. They are responsible for their own expenses and with other demands or commitments in their pay check it becomes more important to do systematic investment planning at a young age to secure life after retirement.

So, it is essential to invest in better and profitable plans to lesser the risk of losing money. Also for some people investment is a means of growth as it keeps up with inflation. By calculating your ROI you can get better idea about how well planned your investment is.

ROI=Investment Gains/Costs

Since investing is not an easy task and requires the help of an expert so for that you need to pay them fees but with your efforts and research you can minimize it. Even you have to pay taxes on investments made. So considering all the pros and cons of investment at a young age one can make provisions for the ins and outs of funds. It won't be always successful but then one learns from one's mistake and experiences.

Making investments at the earliest has an additional advantage and that is devoting time because if you lose your site, you have the time to make up for the loss. It is advisable not to use your short-term money for investment purpose because you would not like to block your money during the time of need. Investing at the right time and in the right plan is your ladder towards becoming rich.

CONCLUSION

The young investors should invest in equity because it benefits them to fulfil their long-term goals. Also they should not ignore the risks associated with it. It is better to start a SIP on a mutual fund scheme if you do not want to invest directly in equities.

For more Tips & Queries on Investment... Keep following http://www.bankerbhai.com/

Article Source: http://EzineArticles.com/9582777

Why You Should Be Careful With Too Small Stop-Loss

In the past, I met several traders, that experienced live results completely different from their backtest results. The cause was a seeming triviality - too small stop-loss. Let me explain to you today, why this can be a problem, what to be aware of and how to avoid this danger. The following topic is just about those breakout strategies that are using STOP order to open a position and, at the same time, they are using too small stop-loss (this article is not about strategies using market order). What is too small stop-loss? Well, it depends on the market and the timeframe. But in general, it is a stop-loss smaller than the size of an average bar of our main timeframe. Let me give you an example - if we are using a 30-minute chart with an average bar value 250 USD, and our strategy is working with an 80 USD stop-loss, we are heading into a serious trouble. The live trading results might (and in most cases almost probably will) be totally different from those that we have from the backtest. Let's take a look at the reason why.

This problem occurs when the stop-loss is so small, that some of the trades have entry order and stop-loss on the same bar. Let's say we have an entry STOP order on the price 100 and also a stop-loss on the price 99. Now, imagine that the bar opens on 98.7, it goes to 100.1 and we open the long position - and the stop-loss is set up to 99. And all of this happens within the same bar - i.e. within this one bar, the entry order is activated, the position is opened and the stop-loss is set up.

Now it is important to understand why this can be potentially a dangerous problem. It is quite simple. There are several backtesting platforms which are not able to recognize, with the wrong setup or when the data resolution is not fine enough if the stop-loss was or wasn't hit on an entry bar. In other words, there are certain situations when, in reality, the stop-loss was hit right after the position was opened, because right after the activation of the entry order, the market starts heading south. However, our backtesting platform evaluates the trade as a profitable one (from now on I will write about TradeStation as it is a platform that I primarily use). How is it possible?

Let's continue with the demonstration of the situation described above. In this situation we can see the rising bar, i.e. the one that has a close price above open price and, at the same time, the close is close to its high.There is an assumption that the bar was raising the whole time and TradeStation assumes that the "inner" move of the bar, i.e. the way the bar was generated, was constantly rising, a straight line.

TradeStation is simply following the logic that when the bar closed close to its high, the process of generating this bar was rising. In such situation, TradeStation assumes that the bar opened on 98.7 and the price was continuously rising to 100.4. And during this time, it also activated our buy order on the price 100.

Nevertheless, this is very inaccurate and dangerous assumption. What if the bar was first rising, activated our purchase order, but then it reversed and went back down, below our stop-loss, and then started rising again to close to its high?

This is a totally realistic scenario that is happening every single day and that would result in a clear loss (right after we open the position) - and yet, TradeStation (and potentially also other software), defines the situation as if there wasn't any correction inside the bar at all. So no stop-loss was hit and trade ended up as a profitable one. This is the root cause to major problems as in the backtest you clearly see a lot of profitable trades that, in reality, would end up as losses - and right after we start trading this strategy live, everything starts falling apart...

Protection #1

Luckily the situation isn't so serious as it looks like and the backtesting platforms, in general, take this risk into consideration.

The first protection against this threat is simple and, to a certain level, highly efficient. TradeStation calls it LIBB (Look-Inside-Bar-Backtesting), others call it different names, like Bar Magnifier. The point is that when you turn on this feature, the program looks inside the bar to the level of the finest available data resolution (in most cases it is 1 minute), if there wasn't any inside correction after the entry order was activated, or if there was a correction on the same bar when we entered and the stop-loss was hit.

Despite that it sounds like a great solution (which is today a standard part of most platforms), it doesn't have to be sufficient when it comes to small stop-losses. Why? Imagine a situation when your stop-loss is 80 USD, but the average bar of your finest LIBB resolution (i.e. mostly 1 minute) is 150 USD big. In this case you are experiencing the same problem as described above, when the platform is not able to determine whether the stop-loss inside the bar was hit or not and it makes, again, just an inaccurate approximations that are driven by the above-described logic - if the bar closed closer to its low or closer to its high. In other words, you are again at the beginning and with too small stop-loss, not even LIBB will help you, and the problem still persists.

Protection #2

So, we are getting to the point when we need to go a little bit deeper to solve this problem.One of the solutions would be to use even finer data resolution - down to the tick level. But this isn't as easy as it sounds. Firstly the tick data history is not so easily accessible, or just for a very short period. And if these data are available, they are really expensive. But even if you still purchase tick data, you need to solve several technical issues - as the tick data are usually so big, that most of the platforms won't handle so many data, crashes or runs backtests incredibly slow (I can confirm this).

Protection #3

So we need to use much simpler solution - and that is the necessity to use reasonably big stop-loss. And what is reasonably big stop-loss? Simply use stop-loss that is at least 1.5-2x bigger than the biggest 1-minute bar on your chart. It is simple and you can avoid several problems. For example, if the biggest 1-minute bar for all your data history was 300 USD, use stop-loss at least 450 USD. Period.It is simpler and safer to get used to higher stop-losses than lying to ourselves and subsequently be surprised why such a nice backtest equity is quite the opposite of results of live trading.

Happy trading!

Tomas Nesnidal is a European trader and developer, with 10+ years of full-time trading experience. You can download an example of his strategy for FREE on his blog http://www.SystemsOnTheRoad.com.

Article Source: http://EzineArticles.com/expert/Tomas_Nesnidal/2231820

Indicators And How To Use Them In Binary Options

Indicators and how to use them in binary options is exercised by many traders. As you begin to build your blueprint for fast profits, it's best to always have a strategy and to never fall astray from it. What might work for one trader, doesn't work for another. Like anything else, you have to practice, put in the hours, and learn if you want to become a successful trader. For any new or seasoned trader, there are two indicators that are popular among many.

1. CCI- Commodity Channel Index

This indicator is good for support when making a decision on a trade. It comes with +100 and -100 levels. The market tends to be within these levels about 80% of the time and 20%-25% out of these levels. So for an example, if you see the market going up and over the +100 level this is a good indication for a long trade with a strong uptrend. If the market was reversed and was going down pass the -100 level, then that's a good sign for a downward trend and a short trade.

2. MACD- Moving Average Convergence/Divergence

This indicator reveals changes in the strength, direction, momentum, and duration of a trend in a stock's price. As a momentum indicator, it shows the relationship between two moving averages. At a default setting, this is set to a 12 day exponential moving average minus a 26 day exponential moving average and the line signal is set at a 9 day EMA. Then you have the histogram which performs the variation between the MACD line and the signal line. Typically, when using this indicator, you look for the lines to cross each to make a trade. Be cautious because this is not usually correct. An experience trader will usually look for a set up in the market to make the trade and will have confirmation from another indicator before the trade is in place.

Using these two indicators conjointly, often helps traders make good decisions on entries when placing a trade. Like anything else, practice makes perfect. Give yourself time and have patience while you are trading. A concern with many traders is controlling your emotions. Sometimes after a loss, you lean on wanting to gain it back quickly, and recover your loss. This usually results in losing more than you expected and now your emotions are extremely high.

Indicators, and how to use them in binary options is another tool many traders lean on when it comes to making decisions on the open market. Continue to learn everyday. See yourself as a successful trader, and remember to never give up.

If you are looking for some reputable brokers to start practicing your trading, click on the link below.

Article Source: http://EzineArticles.com/expert/Joe_O_Orosco/1220370

Auto Binary Signals - A Revolutionary Trading Method

Binary options have always been hailed as an easy path for beginners into the world of trading and profits. While a simple Put/Call binary option equation is indeed simple enough, and while it's wholly transparent as well, its strategy implications are almost infinitely convoluted. Because of the payout rates (which are in the 70-89% range), one has to win far more than half of his/her trades just to break even. What this means is that in order to be successful with binary options, one needs to find a consistent way to come out ahead. This can be accomplished through proper technical analysis, to which the fundamentals have to be added as well. Such a task obviously exceeds the abilities and means of most rookie traders.

For such traders, a proper signal service is the answer. Letting others do the bulk of the "dirty work" is the only viable path. The problem is that like the greater binary options world, the industry that has sprung up around trading signals has given birth to quite a few scams as well. What one really needs is a legitimate service, like Auto Binary Signals.

Auto Binary Signals is a truly revolutionary trading method

Compared to all other signal providers out there, Auto Binary Signals is a head and a shoulder above the rest.

Binary trading signals come in a number of different forms these days, or rather, from a number of different sources. There are good and bad signal providers. All auto trading scams are based on trading signal generation, and indeed, most auto traders do in fact carry a manual trading option too. This option is essentially a signals service, based on signals generated by the software. These are obviously bad signals. Then there are the expert alerts: these supposedly originate from flesh-and-blood traders, who are successful at what they do and who are willing to share "pointers".

Then, we have Auto Binary Signals, which is in a class of its own.

What makes Auto Binary Signals special?

Auto Binary Signals is NOT an auto trader. It does not act upon its own signals, rather, it leaves the final decision to the trader. Also, the way it comes up with its signals is wholly transparent and easy to understand, even for beginners. What's more, Auto Binary Signals calculates the probability of success of every one of the signals it generates and it ranks its signals based on this. To make everything even handier, it also color-codes its recommendations. This way, traders can clearly see what they're trading, when and for how much, and they know their chances of success before they actually open the position. It is recommended that one stick to trades with a better than 85% rating.

Auto Binary Signals makes sure its users do in fact see the trading signals it generates. Every time the system spits out a signal, a window pops up and a sound alert goes off. The service works just as well on mobile phones, tablets and other mobile devices.

What is Auto Binary Signals' most valuable feature?

Every time one places a trade, the thrill of potential profits, coupled with the expertise that goes into the move, make it all worthwhile. Ideally, every time a trade is placed and then ends up in the money (or even out of it), the trader also learns something. This learning experience is what carries the real value in the long-run. This explains why Auto Binary Signals is focused on this very aspect of the trading experience.

In addition to providing trading signals, appraising them and ranking them based on the likelihood of success, the service also offers detailed explanations about every one of these signals. There's a "More Info" option on every trading recommendation. By clicking it, traders will open a MT4 screen, which contains the detailed analysis associated with the said signal. One couldn't possibly wish for a better educational tool.

Why is Auto Binary Signals so efficient?

The majority of users will attest that Auto Binary Signals is indeed very good at what it does. Those who apply its recommendations properly, always boast excellent success rates. What makes it all tick though? The system uses no fewer than 5 proven and tested technical indicators to pinpoint trading opportunities. Actual signals are only generated though when all 5 of these indicators point in the same direction - so to speak. That's the equivalent of having a signal resulting from one's personal analysis confirmed and re-confirmed 4 consecutive times.

Conclusion

The builders of Auto Binary Signals understand that some traders are interested in trading certain assets over blindly applying all the trading signals that pop up. Therefore, they have made the filtering of their signals based a certain criteria
available as well. ABS generates plenty of signals too. It won't have traders sitting around idly, awaiting a trading opportunity. It will have them busy, it will have them profitable, and it will educate them on the go. Those are the reasons why ABS is truly revolutionary!

If you are a beginner in binary option trading this will be great learning experience for you.

Article Source: http://EzineArticles.com/expert/Signe_J_Petersen/2262153

Are You Gambling When Trading Binary Options?

Are you gambling when trading binary options? If you are, it's wise to stop and learn the industry. Why would you have a gambling mindset trading? Wouldn't it make sense to have a plan? If you are thinking about trading, then take it serious, and learn. Do your research. Trading binary options is accelerating when you know you can make fast profits in a short time. Having an appetite for risk should be handled with care.

It sounds easy to trade binary options. You have a striking price, and an expiry time. If you predict correctly in which way the market will go, you profit a predetermined rate. This is usually anywhere between 70%-90% for winning trades. If you lose your trade, you already know what was loss. To most traders, this is considered low risk. Knowing what you will gain, if you win the trade, and knowing what you lose, going into the trade.

Have a plan and be prepared to educate yourself. Treat it as a business and take it serious. This is your money you are talking about. Why wouldn't you want to treat this like anything else that is worth pursuing? Any new inspiring trader has to remember that slow and steady wins the race and this is what that is. Everyday, make time to learn something new. Practice your trading technique and utilize the demo account. That's why brokers have them.

Don't get discouraged if you are not trading successfully in the beginning. Remember that trading is a craft, and you have to put in numerous hours and practice different approaches. Through practice, hard work, and being repetitious, you will overcome the obstacles every trader faces to having a winning blueprint for success.

So are you gambling when you are trading binary options? If you don't prepare, you will set yourself up for failure and lose all of your investment. If you are one of those people who don't take the time to invest in themselves and learn how to trade, you will eventually lose every time. Like mentioned before, this is your money you are trading with. If you don't have a plan to succeed you will lose and be discouraged. Many seasoned traders can vouch this. Don't come in thinking you are going to make money from the beginning. Emphasis on trading takes discipline, dedication, and the will to be among top traders and have a successful track record. Be prepared and don't gamble your money. Trading binary options is another opportunity for people to make money, and sometimes gets a bad rep because they simply don't invest time to learn how to trade.

Article Source: http://EzineArticles.com/9562814

Trading Strategies

Trading strategies and tips for binary options is information gathered by one who is determined, disciplined and has the drive to put a blueprint to together and follows it in detail, every time a trade is made. Rules are very important to follow when dealing with any amount of money you are trading to make a profit. Veering off your plan of action can lead to disaster. A basic outline should consist of having general knowledge of technical analysis, bankroll management, and risk management. Consider this your foundation for making trades.

1. Technical Analysis.

Knowing how to read a chart to make money, would be a good starting point, when trading binary options. Set up your chart so that it is easy on your eyes as you stream through data to make trades. Knowing how to use your indicators and oscillators could be vital tools when it comes down to placing your trade. Entry points in the market well separate anyone from a winning trade and losing trade. Any successful trader utilizes the tools in front of him.

2. Bankroll Management.

Knowing how to use manage your money is very important when trading. For example, if you deposit £1000 into your broker account, it's safe to say you should only trade with 5% of your deposit. This comes out to be $50 a trade. Now if you like you can divide that into any amount and get more trades. For example you can do 2 trades at £25, or you can do 5 trades at £10.

3. Risk Management.

To some traders, risk in binary options is considered low. Every trader knows the rate of return on their money, if they win the trade, and if they lose a trade, they know what is lost, at the striking price. This may not be the case when you are making a trade on an upward trend that is for sure in the money, and at the last seconds, reverses and you miss out on your profit by one pip. We have all experienced this, and it raises the risk because it wasn't suppose to happen. Entry points are very important and must be practiced repeatedly to reduce the risk and increase your chances for winning more trades.

Learning trading strategies and tips for trading binary options could be beneficial for anyone who is willing to be a successful trader. This does not happen over night. Putting in the time is inevitable. If it were easy, everyone would be doing it and making money.

If you are looking for brokers to start practicing your trading, click on the link below and sign up for free with one or several of the brokers listed.

Article Source: http://EzineArticles.com/expert/Joe_O_Orosco/1220370

What Can £10 Do For You In Binary Options?

What can $10 do for you in binary options? If you are smart and take time to practice how to trade, it can take you a long way if you are on a budget but willing to see if you can be one of the crowned traders in the industry. On the other hand, if you go in with a mindset of guessing which way the market is going to go, you will lose in the end. When you decide that you want to be a trader, you want to tell yourself you are going to take time to put a game plan together and follow it every time. There are many steps to master in becoming a successful trader, and the ones that are willing to passionately pursue this great venture in fast returns with high gains, will be rewarded handsomely.

1. Customize Your Trading Chart.

When trading, many will have a chart setup that allows them to see the market with an exceptional understanding to make predictions, for placing a trade for profit. An example of this, and is also popular among many traders, is the Heikin Ashi chart. This chart smooths out the direction of the market and makes it easier to see trend lines as they develop. This is one of many examples a trader can utilize as a tool to help make predictions on trading binary options.

2. Practice Your Strategy.

There are many details you have to follow when placing a trade. Some of the simplest procedures can cost extreme damage. For example, you are in the negative, and you want to climb out by placing a big trade to recoup your loss, and you win! In the excitement of getting back on track, you forget to reset your trade amount. You see a good opportunity to strike, and place a trade, now realizing you forgot to change the amount from the previous trade. To make it worst, what turned out to be a good trade, turns into a loss. To not overlook a simple detail like this takes discipline, focus, and patience.

3. Follow Your Blueprint Every Time.

Once you have gain mastery of your plan in your demo account, then you can go live and deposit money and do live trades. Typically, this means you are winning more than 55% of your trades. If you are still losing money in your demo account, that clearly is a sign to not go live. Be patient in your trading. Wait for your setups for profit. Don't be so quick to pull the trigger if you are behind and want to get ahead. This is where emotions come in and distract you from your course.

What can £10 do for you, trading binary options? If you discipline yourself and take time to practice trading, it can make you profit. This is of course, if you are someone who is on a budget and is willing to take the time to learn. Learning how to trade can range anywhere between 3 months, to 1 year. Everybody learns differently. Don't be hard on yourself if you are not seeing success in the beginning. Allow yourself time to grow and learn the industry.

If you are looking for brokers to start trading binary options with a free demo account to start practicing immediately, then click on the link below and sign up with one of the recommended brokers.

Article Source: http://EzineArticles.com/expert/Joe_O_Orosco/1220370

Trading Stocks Trilogy-2: The Analysis

Traders trade using fundamental analysis, in simple terms what the company does, its earnings, its product line, the debt on its books, its working capital, cash flow statements et cetera, with a view akin to a student sitting on the front bench, and consistently getting A grades, versus the student playing truant with his grades.

Good consistent performance is rewarded, so is the case with the fundamentalists, who crunch numbers, to see if the company will deliver good results, in future.Here you are guessing what is going to happen next. If the analyst gets it wrong, he/she ducks for cover; you end up losing money.

Traders also trade on technical analysis, that is the study of price from charts, where you can see what a stock has been doing, then look at the volumes, supports and resistances, and patterns, and then take a call-that is what direction to go-long or short.

Remember in the previous article, we said that trading deals in probabilities, and we can only hazard an educated guess which way a stock will move, to make you money. If it does not, you immediately need to take a small loss. The caveat here is that anything can go wrong. This knowledge helps in getting out when the market environment turns volatile. Each trade has to be viewed independent of the previous trade, otherwise you would not trade at all. Clear your head after a trade.

The analysis just forms 10% of your trading trilogy, the major component being managing the self or your psychology. The third leg of the tripod- that is good management of your capital, we will come to later in another article.

The significance of the above is that, if you work on the psychology aspect of trading, and your money management aspect, even an average trading system will return average to above average returns.

Another point to remember here, is that what gets measured gets done. In other words, keeping good records regarding your trading performance, is the sine qua non of becoming a successful trader. If you do not know where you are going wrong from your records, how would you improve? By keeping records and making every mistake available in the book, and not repeating them, you would run out of mistakes,and gradually you would reach the level of the elite traders.

Do not get drawn into another mistake made by traders; the hunt for the holy grail-the next nth indicator which would assure success. Select a few you are comfortable with, avoid paralysis by analysis, and keep things simple. The best traders follow few simple methodologies.

To conclude the article, the analysis part involves analysis of the self, analysis of the market through charts, analysis of the stock you would like to trade, and finally the analysis of whether it is, or not the right time to trade. Staying out-that is doing nothing, when conditions are adverse, is a virtue in the capital markets.

Article Source: http://EzineArticles.com/9576346

Trading Stocks Trilogy-1: The Psychology

If your mind is not in the right place in trading, you will blow out. Stunned? The statistics show that 90% of traders do not succeed over time. Ask the multitude of traders who have been churned out, to be replaced by a fresh wave of traders.

The trading terminal is not a place where one plays out one's personal problems, or emotions. There are too many attractions which trick your mind into doing things you should not be doing. Like Odysseus in the Greek mythology Odyssey, who had to fill his sailors' ears with beeswax, and tie himself to the mast, so that he would not be enticed by the Sirens, who led many a sailor to the devastation of the rocky shores.

So who are these Sirens, that could lead you to plunge into the deep fathomless depths of the rocky sea bed, of trading catastrophe?

Siren 1: You shall not trade, if you are in a foul mood.

Siren 2: You shall not trade on news, before, or after. The stock may move in any direction, which cannot be predicted by anyone.

Siren 3: Do not listen to the experts. There are none in the capital markets. Stock movements are probabilities, and no one can predict with certainty, probabilities.

Siren 4: Do your own analysis, then take a call.

Siren 5: Do not hesitate to pull the trigger, because of fear.

Siren 6: Do not hesitate to get out, because of greed.

Siren 7: Leverage gobbles up your account.

Siren 8: You are completely responsible for your results. Take the small jolt early, clear your head, and then move on.

Siren 9: The 'Golden Siren' or the Golden Grail of trading: Use not more than 25% of your capital on any one trade, less, if you have a large account. If you lose your capital, you will then not lose your soul. Avoid too many open positions.

Siren 10: The Diamond Rule: Do not keep a position open if you cannot track it, or if you go out, or the trading terminal is not accessible to you. Many top traders have blown out in the markets by not following this simple rule.

Siren 11: Put your plan in writing. The terminal clouds your mind.

Siren 12: After you close your trade, clear your mind. Look at a new trade from a fresh perspective.

Siren 13: The need to be right: Ego, the greatest destroyer decimates accounts. If you don't know what's happening, get out first, ask questions later.

If I tell you many more Sirens, those will further cloud your mind, as a result of information overload. In the markets, keep things simple. Research has shown that the conscious mind can hold 3 to 7 thoughts at a time, too many will freeze it.

The simpler, and the less number of steps you follow, the more successful you will get.

Remember the statement by Robert Koch in The 80: 20 principle 'Simple is beautiful, complex is ugly'.

Wish you all the best in this venture, if you so choose to play it. Always trade using charts. Realise this: What the mind does not know, the eyes cannot see, and what the eyes cannot see, the mind does not know.

Article Source: http://EzineArticles.com/9576337

What do you think of this article from Paul Mampilly?  Feedback please...

Millennials Are Gonna Pay Big

My friend L wants to live out of a van.

For the moment, she works for Whole Foods and walks dogs for extra cash. The rest of the time, though, she climbs - indoors or outdoors, it doesn't matter.

Every time she's able to put together a few days of paid time off... she's off scaling mountains in Kentucky, West Virginia, Tennessee or Colorado.

And now she's ready to take this hobby to the next step.

A month ago, L told me she's going to commit to climbing - all the time. That means living out of a van, one she's been outfitting herself. It'll have a bed, a mini-kitchen, gear storage - everything she'll need to live life on the open road.

Now this might seem like an unusual choice, but L is 25 - she's a millennial. And her generation is increasingly able to make decisions like these because millennials are incredibly adept at exploiting the new technologies that make them possible.

In fact, these technologies are setting up to make investors a fortune...

One of the potentially biggest technologies that L will be taking advantage of is mobile banking.

The reason is simple: Since she's living on the road, she's going to need to "gig" for money while she travels.

A gig is a job with no employment arrangement. That could mean quickly helping someone with a fast home-construction project or acting as a research assistant to people like me who need information quickly for an issue. Other gigs are more sophisticated, like writing a small part of a computer program.

In some instances, your client could be someone in Singapore, Dubai, New York or London.

After you complete the gig and it comes time to be paid, the client simply sends you the money using a smartphone app, such as Venmo, PayPal or Dwolla. So it's easy for people like L to make money while they're traveling in pursuit of their passions.

As a result, this type of payment platform is gaining wild popularity.

Follow the Millennial Money

Remember, L isn't the only one doing this. Her entire generation - the millennial generation - sees this way of living as a viable option because they've grown up with smartphones and the Internet, which have become just as vital as electricity and water to them.

As you may know, millennials are between the ages of 18 and 34 today. This generation numbers a whopping 92 million people in just the U.S. alone. That makes it the largest generation in history, overtaking the baby-boom generation, which numbers 77 million.

Globally, the millennial generation is estimated to be as large as 2 billion people strong.

And many of the habits of U.S. millennials are shared by their peers in Australia, the United Kingdom, China, India, Brazil, Russia, etc.

In other words, if you travel, it won't take you long before you run into a millennial who, like my friend L, is pursuing a passion - in outdoor rock climbing, surfing, scuba diving, mountaineering, volunteering, etc.

Most of them depend on mobile payments to get paid while they pursue their passion. And other millennials who are still rooted in one place use these services as well. They may use a platform such as PayPal for everyday activities, such as transferring money to a friend or paying for their Uber rides.

In fact, a recent survey showed that 15% of millennials use mobile payments multiple times per day. Another 10% use it once a day. And 29% use it several times in a week.

It's no wonder then that mobile payment growth is skyrocketing higher. For 2016, growth is expected to hit 183.3% - and it's expected to double in 2017. By 2020, total transactions are expected to hit $314 billion, growth of 1,034%!

That's where you want to be as an investor - in explosive growth trends just like that.

Banking on a Powerful Trend

I'm expecting similar gains for the millennial-based stock recommendation I'm releasing this month.

Now, I can't give this stock away for free here. And right now, there isn't an ETF that is liquid enough for me to recommend for you that would capture this millennial mega trend. However, keep checking back, and I'll be sure to let you know once I find a good ETF to recommend.

In the meantime, I suggest following companies that benefit from millennial trends, such as mobile payment services. Because that's where the big money is going to flow.

Paul Mampilly joined The Sovereign Investor Daily in 2016, and serves as Senior Editor specializing in helping Main Street Americans find wealth in growth investing, technology, small-cap stocks and special opportunities.

Article Source: http://EzineArticles.com/expert/Paul_Mampilly/2255814

Ramshawtrading, Top 5 Mistakes beginners in the Stock Market make!

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Why Trade Penny Stocks?

There are many reasons why a trader may get involved with penny stock.

Sometimes a new investor will want to learn the basics of buying and selling shares, and low-priced investments seem to be a good place to start.

Sometimes an advanced trader will get involved in these speculative issues to hedge a position, or play with some risk money.

Perhaps you may even have inside knowledge of the prospects and potential of a company you work at, and you would invest in their stock before the business really takes off.

Penny stocks are fun and exciting, which is why some people get involved. Kind of like a high-stakes hobby.

Based on my experiences from many years in the penny stock industry, the main reason people get involved with penny stocks is to try and get rich.

Of course, any combination of the above factors can act together to drive people into the penny stock markets.

What are your reasons for getting involved in penny stocks?

• Excitement / Enjoyment.
• To make money.
• You have some inside or specialized knowledge that you can profit from.
• You have a strong belief in a concept or idea of a company, you think the stock will explode in price.
• You don't want to miss the boat, while others are getting involved.
• You want to increase your portfolio's risk/reward exposure.
• To learn the ropes of penny stock trading, or just of trading in general.
• You think you know how to pick winning stocks.
• A more expensive stock you held took a price dive, and now you are holding a 'penny stock' unintentionally.
• To increase your portfolio's diversity and exposure to certain sectors.
• For the purposes of hedging strategies.

Are Penny Stocks For Me?

The suitability of penny stocks as an investment vehicle will depend on many factors, and only you can ascertain if they are appropriate for you. Factors affecting your situation will include, but will not be limited to:

• Your risk tolerance
• Your financial and investment position
• The aggressiveness of your trading goals
• Your expectations of returns
• Your level of investment experience

Sourse : http://www.pennystocks.org/why-trade-penny-stocks.php

Tools and Strategies for Successful Trading

Tools & strategies to be successful in trading.  Good advice

Four ways to buy Silver for Investment

Investors buy silver for three reasons: as investment, as hedge against inflation, and for replacement of fiat currency. While many dividend growth investors see no value to holding silver, because it pays no compounding dividend, I believe some precious metal give extra-diversification to any portfolio.

Buying for investment is simply a supply/demand trade on price increase. It's a commodity trade counting on the silver spot to rise. Or, it could be buying silver coin with numismatic value, again hoping for value appreciation.

As an inflation hedge, we can look back to the 1970's when inflation reached 13% and silver prices skyrocketed. During this period, people held silver to offset inflation, and as its price rose investors grew out of the woodwork. Of course, by the 1980's most personally held silver sold off at profit and went into paper investments.

For people who fear paper currency default, we should consider that central governments around the world, including our own Federal Reserve, print money as a solution to stagnant economies. The threat of any countries paper money becoming worthless is real, since none are redeemable in gold or silver as they were at one time.

In 2002, we saw a severe financial meltdown in Argentina and Paraguay when banks closed, only to reopen later, but limiting the amount of money depositors could withdraw. Argentines who converted cash to gold or silver coin were adequately protected during this crisis, while others were not.

Printing money, deficit spending, and endless debt increases has become the norm for leaders both home and worldwide. For no other reasons than these, it's wise to hold some assets in precious metals.

Best Ways to Buy Silver

Regardless of your reason for holding silver, the aim is to buy silver priced on the weight of the precious metal. For example, silver bars and coin are priced on weight, meaning that 1-oz coin or 1-oz bar carry the same amount of raw silver.

You also want to buy silver that is.999 fine silver. The best source will be a reputable dealer and not eBay, Craigslist, etc. Avoid scammers by using reputable dealers like American Precious Metals Exchange, JM Bullion, Provident Metals, and others with proven business practices.

Coins

Silver coins are minted specifically by a central government and come with an official guarantee of both weight and silver purity. In the U.S., the American Silver Eagle is the only federally minted coin, but nations like Canada and Austria also offer coinage. Popular choices are:

• United States - American Silver Eagle
• Canada - Canadian Maple Leaf, Canadian Silver Cougar
• Austria - Silver Philharmonic

Silver Rounds

Silver rounds resemble coins but private mints make rounds and they're not backed by a guarantee like government assurances. They are less expensive (lower cost over spot) and good for larger quantity purchases but are not legal tender (money). However, they're tradable in a financial meltdown, as the weight of raw silver is all that matters.

Silver Bars

For larger amounts of silver, bars are the best choice. Silver bars can run in 1-oz, 10-oz and 100-oz options. Larger silver quantities are also available in bars. Buying larger amounts offers a better discount off the spot price.

As with rounds, bars are not backed by the government. The goal, however, is to acquire larger amounts of silver at lower premium that is easily storable and tradable at the market price.

Junk Silver

Junk silver is really not what it sounds like - a 'junk' investment. It's any old silver coin in fair condition without collectible value but with true silver content. In the United States, pre-1964 nickels, dimes, quarters, half-dollars and dollars carried 90% silver content. Junk silver is important since these coins have the lowest spot price of any physical silver.

Summary

Past actions from central banks often prove that they don't have many weapons against financial stagnation. On the other hand, central banks have proven they can print and offer cheap money backed by nothing more than promise.

Holding some amount of precious metal is prudent. Even for a dividend growth and income investor, there is nothing wrong with holding precious metal, and silver provides the most affordable options.

Article Source: http://EzineArticles.com/9382694

6 reasons to invest in gold.....

Gold is everywhere on the planet but not in significant concentrations. It's difficult to understand the appeal and superiority of gold, but gold is respected throughout the world for its value. Because of the respect it commands, here are six great reasons investors should own gold.

Gold Holds Its Value

Gold has a history of holding its value. The price of gold if often volatile in the short run, but it always holds its value over a long-term. For this reason, it serves as a strong hedge against inflation and currency erosion.

Supply Constraints

Gold is extremely rare. According to geological data essentially all gold is found only in low concentrations in rocks. And, a new gold mine can take upwards of a decade to bring in new ore supplies, with depletion starting as soon as the first load is brought out.

From 1990 until 2008, a large amount of the supply of investment gold resulted from bullion sales from the vaults of central banks around the world. However, governments and central banks are now net buyers of gold, meaning they are buying and hoarding more gold bullion than they're selling.

Gold Doesn't Default on Promise or Obligation

All governments issue paper fiat currencies (dollars, euros, pounds, yen, etc). Fiat currencies have no real value and are backed by government decrees promising to make good on the set value. Throughout history, governments have printed too much currency, as the U.S. has done at warp speed since 2008.

Historically, governments have also created inflation and devalued currency buying power as a measure to increase trade and exports. This also makes it easier to finance debt and social programs, such as Social Security. The problem is that retirees receive promised Social Security checks with no guarantee how much goods and services the checks will buy.

Deflation

Deflation rooted in a country causes prices to decrease, business activity to slow and a central government burdened by massive debt. Money supply and credit is greatly reduced and overall spending is slowed a trickle.

Unemployment and economic depression become the norm. During these times, the relative purchasing power of gold soars while other prices drop sharply. In fact, people often subsist from a street level system of barter.

Geopolitical Uncertainty

Gold retains its value not only in times of financial uncertainty, but equally in times of geopolitical uncertainty. It is often called the "crisis commodity". When a country's government is in crisis, the reserve currency collapses and can no longer fund its deficit.

The market, however, returns to natural monetization as the means for life to continue at the grassroots level. At this point, no other significant currency in the world offers any refuge, but gold becomes a universal currency.

As government balance sheets weaken, global banking systems deteriorate, and deflation sets in, gold in a portfolio makes good sense.

Portfolio Diversification

As emerging markets have grown, increased demand for gold has risen. In these countries gold is often intertwined with the culture, and new money is available to stockpile bullion. India and China are two nations that are large gold consumers.

Many Americans are beginning to see commodities, particularly gold, as an investment class to allocate money. A characteristic of a diversified portfolio is one that has investments not closely correlated to one another.

As bonds have negative correlation to stocks and rising interest rates, gold also has negative correlation to stocks and rising rates.

Gold tends to prove its own worth as money. Gold is an "insurance policy" whose value to an investor is universal monetary worth.

The Bottom Line

Gold is an important part of a diversified investment portfolio, because its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline.

Investment demand for gold has greatly increased, but new mine supplies will not increase in the near future, with declining new supplies more likely.

Gold has historically endured as a portable and indestructible safe-haven against declining wealth. Gold over a long-term gives diversification to a well balanced investment portfolio.

Article Source: http://EzineArticles.com/9326897

How To Invest In Stocks And Bonds For Beginners

How To Invest In Stocks And Bonds For Beginners