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Trading is all about risk vs reward. It is because trading without leverage increases potential rewards exponentially. Still, the same multiplier applies to losses, meaning that should the price suddenly move against you, your loss will be exponentially more significant than your profit should the price suddenly turn around in your favour.

Position trading is one of many forms of trading available and falls under the umbrella of ‘algorithmic trading’. Position traders make trades on a slower time scale than day-traders or swing traders – using indicators that give them buy/sell signals at longer intervals (orders can last for months rather than minutes).

Indicators that are used include moving averages, Ichimoku Clouds, Bollinger Bands and RSI. A typical position trade will utilize all of these indicators to give a buy signal at the lowest point in a downward trend and a sell signal when prices return to an upward trend after touching the bottom of a downward one.

Once you have your signals, you’ll need to make sure to place an order with your broker. It is where things get tricky for new traders – most brokers only accept market orders, not limit orders.

Market Orders:

A market order will execute an order at whatever price it finds on the other side of the trade – so should you put in a market buy order when RSI is giving an oversold signal. Still, someone has already put in their sell-order at the current low price; then your buy-order will be executed at this ‘market’ price, not the price you set when placing your order.

Limit Orders:

A limit order is where you set a take-profit or stop loss for your position and only execute the trade should prices reach this point. For example – if RSI is giving an oversold signal, Bollinger bands are tightly around the current price. It’s not safe to place a market buy order yet as there could be considerable downside before any upward trend begins. Instead – try putting in a limit buy order at 1% below the current market value. This way, if prices drop suddenly due to news etc., your position will only be executed once markets return to their normal range.

Common Position Trading Strategies

Traders who use position trading methods can focus on the long-term picture rather than reacting to short-term market noise. Position traders disregard minor trend fluctuations. Therefore they need strategies that are rooted in rationality and analysis.

Breakout Trading Strategy

Traders in a breakout trading strategy wait for the price line to cross a support or resistance level. When the overhead resistance is broken, the trader enters an extended position. Conversely, when the price breaks through the support line, he closes his trade. This trading technique will pay off if you are adept at detecting recurring support and resistance levels.

Pullback and Retracement Trading Strategy

The fact that traders use pullbacks to plan entry demonstrates how important they are in the market. Traders look for pullbacks in their trading techniques to guide their entry. The policy is to buy low and sell high, which means you should buy low and sell high when the price drops during a pullback. When the price drops during a pushback, traders enter the market.

Range Trading

When the price moves within periodical highs and lows, traders employ a range trading method without any apparent trend. Traders utilize price range methods to identify oversold assets to buy and overbought assets to sell.

Conclusion

Position traders rely on fundamental and technical analysis to understand the market movement. These techniques aren’t simple to follow, especially for inexperienced investors, but if you’re interested in positional trading, they’ll help you become more comfortable with your decisions.

If all of that sounds a bit complicated, then don’t worry – it is! Trading isn’t for everyone, and I’d recommend starting by reading as much material on investing as you can before making any moves. A perfect place to start learning about trading is at Saxo Bank. Check them out!

The analysis and management of personal and business finances is the most important thing to keep things in order and on track.

If you are looking to maximize your return and reduce your tax liability then what is it you are waiting for? You should start working to improve your financial management and tax management situation immediately if you wish to stay organized!

This is exactly what Tax Planning and tax management is! Yes, it is the fact that the rules and regulations of taxation are complex but once you get the hang of it then it’s quite easy.

It is often said that they don’t teach you how to manage your taxes in college and it is indeed true to some extent. But you do not need to worry anymore because we have got your back this time like you always do!

If you learn and understand the rules and regulations of taxation then you can utilize them according to your advantages and then it will be up to you how much you will be paying!

So before you make your next monetary move, make sure that you check out the taxation strategies given to you by us!

In this article, we are going to discuss 6 Tax Planning tips in order to maximize your return!

So, keep on reading to find out more information below about tax management.

1. Comprehend The Tax Bracket:

The first thing that you need to know is what kind of tax bracket you are in. There is a system called the progressive tax system according to which the people having higher income pay more taxes. On the other hand, people having low income, pay less tax.

The federal Income Tax brackets are 7 in number which are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

2. Tax Deduction And Tax Credits:

Tax deductions are some particular expenses that you have to reimburse, and you can minus these from your income.

Tax deductions lessen the amount of tax that has to be paid on your income.

On the other hand, tax credits are ideal because they provide you a dollar for dollar reduction in your bill.

3. Standard Deduction And Itemizing:

Amazon part of tax management involves determining if you want to take a standard deduction or itemizing.

A lot of pairs of tax choose standard deduction because it is way faster as compared to itemizing. The standard deduction that you will be able to receive is dependent on the status of your filing.

If someone itemized deductions are more than the standard deductions then they will have to choose to itemize. The IRS Schedule A is utilized to contend the itemized deductions.

4. Be Up To Date:

For appropriate tax management, it is important to always be up to date about the possible deductions and credits out there!

5. Tax Records:

You should keep your tax records for at least three years. but in certain cases, you have to keep the records for even longer!

6. Taxation Strategies:

You can maximize your return in tax management by adopting other tax strategies, such as W-4, 401(k), putting money in IRA.

If you have tried your hand at stock trading, you may know how a demat account works. When you buy equity shares, these get credited into your demat account. Similarly, when you sell those shares, they get debited from your demat account. The account functions like a savings bank account, except that instead of parking cash it stores your financial security certificates.You can open an account with a depository participant (DP) like a bank or broker. In return for the service, you will incur demat account charges.

Now, you know that an individual can hold multiple bank accounts. Does this option extend to demat accounts as well? The answer is ‘yes’. However, there are some conditions to bear in mind if you are planning to open a second or third demat account. Being aware of these restrictions will ensure a seamless demat account opening process.

Have questions about the implications of opening multiple demat accounts? Here are the answers to some common demat account questions:

1. Is it legal to have more than one demat account in India?

Yes, it is legal to hold more than one demat account. In fact, there are no restrictions on the number of demat accounts a person can have provided you keep paying the demat account charges.

Is there scope for confusion? Not really. That’s because each time you open a demat account, your Permanent Account Number (PAN) card serves as the unique identifier.No matter how many demat accounts you open, they will all be linked to the same PAN. All the security transactions you make through those multiple accounts will be reflected accordingly.

2. Can you open two demat accounts with the same broker?

Unfortunately,that is not possible. You cannot apply for another account with your existing broker. However, you can approach a different broker to openthe second demat account. Just ensure that the broker is registered with one of the central depositories, whether Central Depository Services Ltd(CDSL) or National Securities Depository Limited (NSDL).

3. Isit safe to keep shares in multiple demat accounts?

Your shares are secure in any demat account. Opening multiple demat accounts will not compromise their safety. In fact, you may be surprised to learn that stockbrokers have no control over demat accounts. Your shares in the demat account are held with a central depository—either CDSL or NSDL. The stockbroker is simply a depository participant (DP) acting on behalf of the depository.

4. Do multiple demat accounts need multiple trading accounts?

No, they do not. You can link your subsequent demat accounts with any existing trading account. For instance, if you engage in both trading and investing, you could maintain one demat account for stock trading and another for your investments.This would allow you to segregate your trading and investment portfolios with ease.

5. What pointers should be noted before opening multiple demat accounts?

• You will incur demat account charges for every account you hold. While some DPs waive the account opening fee, you will have to pay an annual maintenance charge (AMC) as well as transaction charges.The AMC would apply even if one of your demat accounts is lying idle.If you don’t really need the extra account, think about whether it is worth the extra demat account charges.

• It may happen that one of your demat accounts remains dormant for a certain period. In this case, the DP will freeze the account. You would have to fulfill the Know-Your-Customer (KYC) formalities all over again to reactivate the account.

• If an account is likely to be idle for a prolonged period, you could submit a freeze request to your DP. This ensures that your account cannot be misused during the dormant phase. However, corporate action benefits like dividend payments will continue to be credited to your account automatically.

• When you have multiple demat accounts, ensure that all the accounts are linked with your PAN card and Aadhaar card.

• A perk of having multiple demat accounts with multiple DPs is that you gain access to different trading platforms, products, and services. You can also gather valuable insights by accessing and comparing their research reports.

The bottom-line

As you can see, it is perfectly legal to have multiple demat accounts in India. However, you should weigh the pros and cons before applying for an additional account. While there are benefits to maintaining more than one account, you do incur extra demat account charges. Plus, you have to stay updated on all transactions across your different demat accounts by going through holdings and transaction statements with a fine-tooth comb.

Are you not happy with your current DP?Rather than open a fresh demat account, you could consider moving to another DP. For instance, to gain access to powerful trading and investment platforms, you could open an account with a tech-forward broker like Kotak Securities. Just make sure to shop around for a demat account and a DP that fits your bill of requirements.

What do you mean by p2p lending?

Peer to peer lending is basically a method which connects lender and borrower. The process begins when an investor is interested in lending loans and they search for their match with borrowers who want the same amount. Thus people invest in p2p lending.

P2P lending has become so common and popular because it reduces many barriers for both lenders and borrowers. While small business units or borrowers can easily find their loan through it; on the other side it is also very convenient for the lenders to find their borrowers.

Before understanding any tip to invest in the secondary market you must be very clear what secondary market is all about?

Start your journey, now is the best time to take your first step towards a profit guaranteed marketing strategy. In today’s market, there are uncountable registered platforms for peer to peer lending system; In Crowd Reviewed they share all that you’d like to know about the P2P platform. Like In 2017, laws have been passed for p2p lending. In 2018, 12 platforms have been documented for legal p2p lending. It is calculated that the world P2P lending trade is valued $3.5 billion-global in 2013 and at $64 billion in 2015 is expected to reach nearly $1 trillion by 2050.

This is clear proof that the faster you start investing in P2P lending is more the profitable it will be.

What is Secondary market?

It is basically a modern marketplace where already issued loans, debuts or any other insurance can be bought or sold by the marketing company. The marketing company buys or sells insurance not from the issuing company. Insurance is firstly issued by companies in the primary market then it comes to the secondary market for sale. Some precise examples of the secondary market are the NYSE (New York Stock Exchange) and NASDAQ.

Some details of secondary marketing

If any seller is in need of money for any emergency then he can easily sell his insurance to the buyers since there is a lot of demand in the market.

The prices of the market are automatically arranged and re- adjusted due to the high number of transactions each day. The transaction expense is also very less owing to large market.

Saving money takes a lot of effort for some people, but with secondary marketing, anyone can easily save his/her money safely.

Since the secondary market has become a high source of finance so there is a high regulation in the secondary market by the government. It assures that your money is completely safe there.

Importance of secondary market

It is a good indicator of a country’s economy. Any change in the stock market is reflected in the economy.
It gives a very smooth working experience to companies who can easily buy and sell insurance from the market.
It gives a chance for investors to set up their business of investing securities and getting returns.

One of the most profitable businesses in the secondary market is through P2P transactions, also known as peer to peer investment.

The UK is known for ages for its strong economy. One of the most common investment methods in the UK is P2P lending. The best P2P lending platforms are in the UK. From 2008 – 2009 there was an imbalance in the UK’s economy. The imbalance was recovered by p2p lending only. It has a huge potential in maintaining a country’s economy. Due to the best rates and its ability to sustain, P2P lending has become a huge success.

Why should you invest in peer to peer lending?

P2P lending providers charge very little for finding a borrower which is matching with the lender. But instead, the profit that is earned is much more compared to the charges applied. No other bank or other marketing methods can give you such a profitable deal. This characteristic makes peer to peer lending the best marketing strategy for small businesses. P2P lenders give you a chance to give the role of your bank to yourself. You can simply land and borrow money through this system according to your own rates.

The main benefit of peer to peer lending transactions is that in any other kind of transaction of lending loans, the banks play the main role. In P2P, the role of bank is eliminated. As a result, the profit is much higher for both parties.

Build up your business slowly

When you first start investing start it in a decent and smart way. The right procedure is that you must start with small investments with a large number of borrowers. Divide your total investment into small amounts and lend each amount to different borrowers. So that if by chance there is some surprising irregularity in paying loans you won’t get panicked since the amount is relatively small. Check out the profile of the borrowers minutely before lending money, because you must be aware of the profile of the person you are lending the money.

Start investing and stick to it

It’s really not clever to keep your money ideal since your ideal money will not generate any profit. So instead of that invest your money for a profitable business. P2P lending is a safe way of lending securities where you can easily get your money return whenever you require them. Investment in peer to peer lending is more profitable when kept for a long time. The plans which are invested for a period of 24 or 36 months are the most profitable plans in P2P lending.

Recycle your investments

Peer to peer lending is a type of investment where the investor starts earning from the next month onwards after investing. But to play smart you must reinvest your earnings to spread your business further. Instead of enjoying your little profits plan beyond and earn great profits.

These are the three mantras to earn great profits in peer to peer lending.

For your achievements in investing forex, a trader must have the best forex currency trading business plan. This is of forex is definitely foreign currency alternate. Each country includes a currency that’s unique. Forex currency trading may be the exchanging of this currency of one country for your money of another at exactly the same time. The exchange is performed at an alternate rate that’s arranged for a specific period.

The prices of varied currency’s slide and rise in just a matter of minutes; this creates the currency marketplace a powerful one. This dynamism features made lots of people to purchase this business. Persons may exchange online anytime and make gains. Sometimes, they can face loses also. A trader should so develop a very good strategy to become successful.

A strategy permits the trader to process forex trading systematically. Initially, he will make use of training and forex instructions to do exploration before he projects into the company. He may seek advice from experts and develop trading expertise, ideas, and realize the business.

Currency trading is similar to every other organization where loses and income are created. The trader should thus spend cash he does not brain losing. A proven way of doing that is to save income solely for functions of forex trading. A restriction of the total amount to be expended should be established. The trader should try whenever you cannot save money than the set in place limit.

To be able to ensure that he’s got one of the better forex trading organization plans, the investor should pick the currencies he hopes to exchange in carefully. There are a few currencies that are internationally recognized, plus they could be exchanged with more achievements than others. It really is recommendable to deal using sets of currencies which are popular. They include things like EUR/USD, GBP/USD, and USD/JPY among more than a few others.

The investor should think of a routine and try out sticking with it. The regime should be altered only when there’s a real have. The routine consists of choosing enough time he will market. It is fine to try sticking with this schedule even though you can find fluctuations on the market. This inculcates willpower and also permits him to make some revenue slowly.

The trader should create a budget that will aid him in checking the outflow and inflow of dollars. Through the finances, he can find peaks and slumps of his stock trading. Slumps shouldn’t be a way to obtain discouragement. This implies one should show patience and should not really let emotions affect his trading.

A trader shouldn’t try to recuperate loses rapidly. He could rather spend time generating an examination of his investing strategy. This will keep him from possible hazards and dangerous buying and selling. Best forex currency trading business plan, as a result, includes discipline, persistence, and good supervision skills. For a number of people, forex trading is a choice career. The trader has the choice of functioning from his residence, working hours, which are flexible, along with the potential of getting high income.

Would you like to know how it is possible to really make even more profits carrying out forex enterprise? Click here to obtain the 1st daily currency posts ahead of different traders.