Thread: FXB Blog - Forex Articles

Forex coaching pays dividends

Trading forex is a bit like driving, if you don’t get a few lessons from someone who knows what they’re doing you’ll probably crash. A good forex trading coach will help you become a profitable trader far sooner than if you dive into trading without proper training.


A good trading coach, much like a good driving instructor, is aware of the mistakes a novice is likely to make and is able to steer you around or away from them and can explain why a certain course of action or choice is the better option. Much like driving, most of us want to learn so that we can use it safely, frequently and of course successfully. Driving without caution or at high speeds, without understanding the dangers, mirrors unprofitable or high risk trading and inherently increases the chance of losing money.


Once you’ve accepted that coaching is the best way to start the next step is choosing which coach is right for you. In most situations where you need an expert, your natural instinct is to gravitate to the best available. This is where most people run into their first hurdle, as the industry is littered with so-called ‘forex gurus’ but who are not even professional traders.


A recommendation from someone you know and trust is always a good place to start, but if no-one you know can advise you on coaching for forex trading there are some things to look out for which will help you make an informed choice.


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How to choose technology and industrial stocks

The common denominator for everyone who invests in stocks is to make predictions on the price evolution in order to capitalise on market movements and consequently make money. But how they go about it is dependent on how risk averse they are, and the time frame over which they want to realise profits.


Investing in the stock market is both an intellectual challenge and a reflection of your own character. Before you decide which stocks to pick you need to understand what kind of investor you are.


Growth investors tend to focus on a company’s potential for future profits, and whose earnings are rising the fastest. Since growth-oriented investors are interested in big future earnings, they are often willing to pay a high price for a stock relative to what it earns right now. The metric used to value stocks here is the price-to-earnings ratio (commonly referred to as the P/E).


Value investors hone in on the current value of a company’s assets (factoring in its debts), and look for stocks that are cheap compared to those assets. Optimistic forecasts for profits are less important for them so they end up buying stocks with lower P/E ratios.


Taking the value approach sounds like a more conservative approach, but there is the risk that these stocks go out of style for long periods of time.


What may have initially looked like a bargain may turn out to a bad investment which other investors avoided because they identified serious problems with the business.


That’s why solid research is critical when buying stocks, and the most common advice you’ll read about investing in stocks is to diversify.


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If you are interested in buying cryptocurrencies, there are many crypto exchanges operating all around the world that allow you to buy cryptocurrencies. It is a good idea to register and verify your accounts with multiple exchanges. The reason for this is that the process can take time if there is an increase in registrations every time there is an increase in the price of Bitcoin. Different crypto exchanges have different features, fees, policies and coin listings. Leading brokers usually allow clients to use fiat currencies to buy cryptocurrency. These are traditional currencies such as Euros, Dollars and the British Pound.


A guide for buying cryptocurrencies
Once you have a basic understanding of cryptocurrencies, you can follow the steps below in order to start building your own portfolio.

1) Open an account with a cryptocurrency exchange
The first thing you need is to know where to buy cryptocurrencies. If you want to buy Bitcoin, there is a wide range of exchanges to choose from. Make sure your desired cryptocurrency is listed on the exchange. Always research your chosen cryptocurrency exchange and read reviews.


2) Choose the cryptocurrencies you want to invest in long-term
You can invest in multiple cryptocurrencies. However, it is advisable to start with one currency first. There is a wide range of cryptocurrencies to choose from. There are thousands of cryptocurrencies available on exchanges around the world.


If you want to invest, you should enter initially with small amounts to familiarize yourself with the basic functions of the exchange.


It is also important to get used to the market volatility so that you don’t panic sell. During a rapid fall in prices, price swings can be huge in a very short period of time.


3) What price is your chosen cryptocurrency trading at?
An important thing you need to take into account is the price of your preferred cryptocurrency. For instance, you need to determine if it is cheap, at a high price or a low price. You should never make a purchase based solely on the price, but you should consider other factors as well. These factors are valuation, the available supply of currency, the technology it uses and the targeted market.


In order to maximize your gains, it is essential that you apply the ‘buy low, sell high’ principle. This is a successful cryptocurrency trading strategy.

4) Store your cryptocurrencies in a wallet
A cryptocurrency wallet acts like a bank account for your cryptocurrencies. Bitcoins are stored in a bitcoin wallet and Ethereum coins are stored in an Ethereum wallet. The same applies to all other cryptocurrencies which are stored in the appropriate wallet.


Basically, a wallet is software which communicates with the network. You can tell the blockchain when you want to send or receive transactions.


Cryptocurrencies can be stored both online and offline in a paper wallet or a hardware wallet, and can also be stored on the exchanges where you bought them.


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A beginner’s guide to trading cryptocurrencies


Cryptocurrency trading
Cryptocurrency trading is becoming more and more popular and many investors are jumping on the cryptocurrency bandwagon. However, it is essential to understand that trading cryptocurrencies is not necessarily a ‘Get rich quick scheme’. Before you start investing in cryptocurrencies, it is important to do your research. Read our guide and find out all you need to know about trading cryptocurrencies.


What are cryptocurrencies?
Cryptocurrency is a digital or virtual currency that uses cryptographic techniques to secure transactions and control the creation of additional units of the currency. Cryptocurrencies are a digital asset and exist only in an electronic form.


What are the most common cryptocurrencies?
The most common cryptocurrencies are Bitcoin, Ethereum, Ripple, Litecoin, Dash, Monero, and Zcash.


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How far will cryptocurrrencies go for security?


Zcash go nuclear to generate random numbers to ensure security of digital coin in latest step by cryptocurrencies gain acceptance
The security of cryptocurrencies is an issue for some people. The founders of digital coins know that stories about exchanges being hacked damage their image.

For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.


The developers of privacy-obsessed digital coin zcash have gone to unique (and extreme) lengths to ensure their digital currency’s security.


Zcash used nuclear waste from the infamous Chernobyl power station to create low-level radiation. This was converted into random numbers to generate zcash’s public cryptography parameters.


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Everything you need to know before you buy cryptocurrencies


A $1000 investment in Bitcoin in July 2010 is now worth more than $141 million . Unbelievable! (value correct on 13/2/18)
You’ve been following cryptocurrencies for a while and seen Bitcoin rise in value from cents to its highest point of almost twenty thousand dollars. You have been thinking about joining the crypto rush but your knowledge is very limited. You want to invest an amount of $500 and are probably wondering which cryptocurrencies to invest in.


However, before you buy, you should do your research in order to find out everything there is to know about cryptocurrencies. To help you, we have compiled our own research. Read on to find out more.


What is Bitcoin?
Bitcoin is a popular digital currency created and stored electronically. It is digital money that is not linked to any financial institution, banking or currency system which can be transferred between individuals without any financial intermediaries.


What makes Bitcoin valuable?
Bitcoin gets its value because many people want to trade and accept it. It follows the basic rules of supply and demand. As people hear about others making money from cryptocurrencies, they buy their own and this makes the price increase.


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Cryptocurrency will play a big role in our lives in the future

The growth of cryptocurrency and blockchain
The interest in cryptocurrency is often referred to as the ‘digital gold rush’ attracting thousands around the world to invest in cryptocurrencies such as Bitcoin and others like Litecoin, Ethereum and Ripple.


The value of Bitcoin is linked to sentiment – whenever people rush to invest, the prices go up and when people decide to sell, the price goes down. This volatility has resulted in prices skyrocketing. In 2017, Bitcoin surged in valued from $830 to $19300 and is now fluctuating around $8,000. Other cryptocurrencies like Ripple and Ethereum are following a similar trend. This cryptocurrency rollercoaster has helped lucky investors to make fortunes.


Blockchain, the technology behind Bitcoin and other cryptocurrencies, was designed to facilitate, authorise and log the transfer of bitcoins.


How does blockchain technology work?
Blockchain is a shared database populated with entries that must be confirmed and encrypted. Traditional databases are owned by a central authority like banks and governments, but blockchain does not belong to anyone.


The impact that blockchain technology is having is similar to the impact of the internet in the 90s. As society becomes increasingly digital, financial services providers are looking to provide customers with more efficient, secure, and cost-effective services. Therefore, blockchain technology will become more applicable to our daily lives.


Bitcoin and all cryptocurrencies depend on blockchain technology that makes transactions so secure that they are almost unhackable.



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Virtual trading and the global economy

We have seen the rise of the virtual world in the twenty first century, which is a world that exists entirely on the internet. The currency that is used is known as bitcoin, but it does not possess any physical form. Bitcoin has now become a widely used currency, especially in China, the economic powerhouse. However, the lack of physical form makes bitcoin completely different to what money should be.


A long time ago, the value of money was exactly what it was made of. Gold coins were made, and their value depended on the amount of gold in circulation. Nowadays, most money is printed on paper, which does not have that much value. Therefore, the government can print as much money as it wants as long as it has the cheap materials needed to print the money.


Bitcoin is the next step in this worrying trend regarding the creation money. Bitcoins have no physical form, and they cost almost nothing to create. However, using bitcoin is very convenient as online transactions can be carried out using a currency which is suitable for expediting simple financial transactions.


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Adapting to Bulls and Bears


Bulls and Bears characterizes and defines the volatile market conditions. Bulls and Bears is a term which is common in the trading world, increasing the hopes of traders as well as shattering their expectations! But what do they really represent?


Bulls and Bears actually describe market conditions, whether stocks and/or currencies are increasing or decreasing in value.


They also demonstrate the mood of the investor, and indicate subsequent market trends.


A bull market describes a market that is increasing which is shown by an increase in market share prices. This situation causes a psychological boom installing faith in investors and resulting in a positive long term trend. This tends to happen in countries with strong and solid economies with high employment levels.


A bear market causes the opposite psychological effect; it characterizes a falling market with share prices continuously falling, so results in a downward trend persuading investors that this market decline will continue over the long term. It leads to an increase in unemployment as employers begin to dismiss workers.


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Bitcoin value can reach $50k this year


Bitcoin value has dropped by almost 45% after hitting a high of almost $20k this month but some experts feel the crypto currency is set to climb again in 2018

Investors who joined late will feel the latest headline about Bitcoin value is a bad joke. Most people who invested in Bitcoin recently are sitting on negative equity or have cashed out losing.


Ethereum and Ripple backers have similar stories to share with their Bitcoin owning counterparts. But for portfolio manager Jeet Sign cryptocurrency volatility isn’t surprising and he envisages Bitcoin’s value hitting $50k this year.


Singh gave his views about cryptocurrencies to RT while attending the Davos Economic Forum in Switzerland. He’s been operating in the cryptocurrency space for the last six years. He’s seen similar volatility time and again. And he’s also experienced fluctuations by more than 80% and above on a regular basis.


Singh drew comparisons between cryptocurrency and the early performance of Microsoft and Apple stock.


“If you look at Microsoft or Apple when they went public their stocks were very volatile because the market wasn’t mature,” he said.


The lack of vendors accepting cryptocurrencies as payment results in cryptocurrencies being used more like as a store of value. However, in countries with high inflation (Indonesia and Thailand) cryptocurrencies are more readily accepted.


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