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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!

Financial planning has always been a tough job to take on, especially when you are entirely new to Finances’ Industry. Another bitter truth is that despite going to every successful school or college, you will come across very few schools that help us learn Finances and Financial journey in a better half.

Assume your Financial journey as a plane, which lacks the flight path and the flight routes, will you be able to land it?

Planning the Finances and managing the Investments has never been an easy job. You need to know your long-term and short-term financial goals, along with keeping a keen eye on whether you should invest in this.

A Happy Financial journey has the following benefits:

➔ Better Credit Score.

➔ Better relationship with family members.

➔ More positivity around.

➔ Manageable stress levels.

We all might have gone through several ups and downs in terms of Money, and it will not be surprising to say that Money can give someone the biggest surprises. Investing Money or saving on your expenses are such ideas that can help you get a Financially stable future, but you also need a Risk-proof plan for investing in the right direction and platform.

Let’s talk about Starting your first financial journey without any error-prone area.

➔ List down your expenses and Income, also develop a detailed Spending plan for the same.

➔ Identify your asset and the Liabilities.
➔ Goal Setting

➔ Create a Saving Plan.

➔ Make a routine plan and check them annually.

➔ 1. Know your cash flow.

Briefly note all your expenses you did in the past year and the expenses you did in the last four months. After the list is prepared, you can just view them side by side and compare them in order to see your spending pattern. This will give you your exact spending pattern as well as helps to prepare a budget every month, for which you can prepare a monthly budget. If you spend more than your budget principal, then you will end with a bad credit score, credit card debt, and unwanted credit card debt.

➔ 2. Know your strong and weak points

After you know your spending limits, you now need to make a box with two sides, a left and a right side. The left side will have all the items of value, and on the right side, you need to enter those names or items for which you have, for example, mortgages, loans, car loans, etc. After listing all the things in both the parts of the list, now subtract both the sides and now you have your Net Income.

➔ 3. Goal Setting

Set 3 goals you would like to achieve in the coming times like in the coming three years you would like to buy a car, and then after five years, you would like to buy a home so you will have to save some each month to come up to that price of the house in 5 years. Short-term goals and long-term goals can be set for x years, where x is the number of years which depends upon your Income every month.

➔ 4. Savings is your best friend.

The key is not to always start big, instead of creating small and saving every month is the right way to achieve financial freedom. Do not just overdo it. Instead, take it slow because if you are overdoing it, eventually, you will take it as a hard way to save pennies, and you will end giving up.
With time, you will get more comfortable and eventually get your savings to grow. If you like to spend on items lavishly, then the correct way is to put all savings in an account you don’t have access to.

➔ 5. Keep your actions under the monitor and watch over your savings.

Keep your finances under direct monitoring. The more attention you will pay to your savings and expenses, the more control you will have over the cash outflow and inflow. Finances are much like your body physique. The more watch you keep on it, the better physique you will get. There are numerous tools available online that can help you achieve a lot of the above in rather a straightforward method. You can set reminders as to when your payment will come so that you can deposit it in your savings.

If someone lacks the value of “Assets and Liabilities” for whatsoever reason, having basic knowledge about primary education and finances is all that is needed.

Important takeaways:

● Each step above depends on the previous stage for specific reasons. You cannot jump to step 5 and then recursively move backward. To do proper investing, budgeting, and savings, you should be prepared for what these terms are related to.

● Money journeys can never be some easy points of life. These are primarily curved graphs because of the Investment market not staying stable enough. Your career opportunity will shift from one curve to another curve, including your family situation, to evolve as well.

● Never be your own boss until you are an expert in the field and aware of every steep point. Always get the suggestions of some Certified Financial Planner.

Conclusion

Money matters are not easy enough; they are always a jumbled up set of sentences with most of the investment plans. You just need to know what hold of the stacking cash you will need to fund your Financial Freedom at your retirement. As someone says,’ Money is the root of all evil,’ I think this is an incomplete statement. The correct statement should be,” Money can be the root of all evil if you do not manage it properly with time, taking care of the investments and savings.”

Ankita Kaushal is working as a blogger for Veronica Karas. Veronica Karas is a Certified Financial Planner in NY. She helps with Complex financial issues like stock options, estate planning, tax & financial planning and more. Get in touch with her now for any assistance regarding Financial planning.

People, for their nature, are in a constant quest for finding ways for making money or profiting from their capital. Due to the recent events though, this attitude has begun to be predominant for those restricted at home, and that’s how online stock trading began its unstoppable rise.

Between the many broker firms you can find online, there are some which may be considered more trustworthy than others. Traders tend to make a difference between regulated brokers and non-regulated ones, and for a good reason: brokerage services which are not regulated by a regulator lead often to scams and money-losses.

That’s why today our focus will be addressed towards one of the most famous regulated brokers available online: eToro.

In this eToro review we’ll discuss main features related to the eToro trading platform, regulation, fees and everything you need to know before start trading with it.

eToro: Why It’s Safe

Born in 2007 as “Retail FX” in Tel Aviv, this brokering service has now reached and surpassed $800 million in value and it’s used by +10 millions people across the world.

This achievement has been reached for many reasons, and one of these is surely being a very well-regulated broker. In fact, eToro has a presence worldwide with many offices across the world and different entities for different regions, and each one of those are regulated from local and internationally recognized top-tier regulators such as CySEC, ASIC, FCA and FinCEN.

Additionally, this broker offers high protection standards for its client’s funds. We’re speaking in regards to two measures enacted by eToro: negative balance protection and segregated accounts.

While negative balance protection consists in an automatic block of the trader’s balance before it goes in red, segregated accounts are an extra-precautionary measure useful in the unlikely case of the broker’s bankruptcy. With segregated accounts, traders’ money cannot be touched by liquidators or anyone else outside of the one who made the deposit, because they’re the only one allowed to access the bank account.

eToro: Why It’s Famous

eToro has become an international phenomena for plenty of reasons, but one of the strongest has always been related to that revolutionary idea called Social Trading.

This brokerage service has implemented autonomously a proprietary trading platform which has integrated many features inspired by main social media. Once you’ve opened eToro, you’ll find that assets are treated like Facebook’s posts or tweets, with other traders discussing and arguing on the last news regarding it.

Furthermore, what really made eToro’s fortune has been the most iconic feature of all: the Copy Trading.

This innovative feature made it possible, even to the less experienced trader, to copy other traders and their portfolio in an automated way. In fact, once enabled this feature opens any position opened in the selected portfolio, and so it will be for any future position.

Those targeted by this feature are usually a part of what we’d call “Influcencers” if we were on a social platform, but here they are called Top Investors. These kinds of traders are a sort of peculiar asset and you can invest in them depending on their risk level and your profit aims.

If you are a new trader though, we strongly suggest you to pick a Top investor with a low risk ratio.

eToro: Before You Start

If you want to start trading by opening an account with eToro, you can do it by doing a minimum deposit of only $50 if you’re a US resident. If you don’t want to commit and invest money straight away, this is not the only way to start.

As a matter of fact, eToro allows you to open a free demo account. By using this form of trading, you’ll be able to practice how much you want, without fearing making mistakes that will lead you to lose money.

A personal loan is money that is borrowed for your personal purpose which mainly includes debt consolidation, student loan, unexpected medical bill or even buying a new appliance. The money is returned by you with interest in monthly installments from time to time which usually lasts from two to five years. As has been seen, nowadays most of the personal loans are unsecured which means that they are not backed up by the collateral. APR is known as the annual percentage rate which determines the interest you pay on that loan. There is no fixed APR and may vary from scenario to scenario but it ranges from around 6% to 36% with an average of around 9.41%. APR depends upon your income, credit score, debt, and creditworthiness. If you were looking to apply for a personal loan and didn’t know how to apply for it then you have come to the right place. This article will guide you through how to apply for a personal loan.

How To Qualify For A Personal Loan

There are many things and steps that shall be kept in mind in order to qualify for a personal loan. For example, if a person wants to borrow a loan for remodeling his house or buying a new car, then the equity loan would surely come with a lower interest rate. These are not like unsecured personal loans as you are not solely judged on creditworthiness. On the other hand, these instant cash loans are secured by the home you want to remodel or the car you want to buy.

Decide How Much To Borrow

One should be definite enough to determine how much exact money that he needs to borrow. One should definitely keep in mind that you don’t need to just repay the original loan but you have to repay along with the interest. A sane person would not borrow extra money just so that he would pay interest on money that he would not need. This is the reason why you should decide on how much money to borrow. One should also make sure that he would be able to afford the payment with all the interest including. It has been seen that in many cases, people opt for way too high instant cash loans and are unable to pay back in the end which not might end up good.

Check Your Credit

It is of no surprise that instant cash loans heavily rely on creditworthiness. One should check their credit scores and should obtain the credit reports from each of the three major credit reporting agencies such as Equifax, TransUnion, and Experian. Referred to as soft inquiries, none of these actions will impact your credit score. It will only impact when you apply for a loan and lenders opts for a hard inquiry. There are many credit card and loan companies out there which provide free monthly credit score which is found beneficial for applying for an instant cash loan.

Although many people think saving and investing are very similar to one another, there are some key differences.

By being aware of those differences you may change your mind when deciding which action to take.

We listed some pros and cons of both saving and investing to help you to weigh which is the better solution for you.

Similarities and differences between saving and investing

The thing that connects the two is that they are both strategies to accumulate money! Saving or investing both imply putting your money aside for potential future needs.

They can both protect you from debt. However, if you find yourself in that situation, be active in the process and claim Payment protection insurance if needed.

The difference between the two is the type of assets used in the account.

Another one is that if you want to be able to use the cash quickly, save (but it can also be done for some long-term future plans).

If you don’t want to play it safe and your desire is achieving a higher return – invest!

Where to go?

Savers – go to a bank or a credit union and open a saving account. When opening a saving account, look for the APY (highest annual percentage yield) to maximize your earnings.

Investors – open an account with an independent broker, which includes mutual funds, bonds, stocks and exchange-traded funds. Also, keep in mind when investing that you should invest only the money you won’t be needing any time soon.

You should keep your funds in the investment for at least 3 to 5 years minimum.

Are there some risks?

While investing, you should always think twice before doing something. Saving is safe with the minimum amount of risk – it is very easy to do and the chance of losing money is equal to zero.
You are always familiar upfront with how much you will earn in your balance.

On the other hand, investing is always unpredictable and you have to be aware of the risk of potentially losing everything, but also of earning a lot more!

When talking about risk, the thing that needs to be mentioned is the price of saving and investing. Saving is not expensive, since opening an account is free.

But, you have to keep in mind some unpredictable factors such as inflation. Saving doesn’t protect you from it, while investing potentially can save you (if you think in a long-term period).

How should I decide whether I should save or invest?

This decision should be based on your wishes and needs.

If you’re looking for earning money and taking risks that can possibly have very good or very bad consequences, you should invest.

If you are thinking about putting some money aside just in case you might need it someday and you want to be able to use your money whenever you need it, you should save.

This decision is not always easy. Thinking it thoroughly, make the best decision for yourself. It can be a lot easier than you think – contact Optimal Solicitors in Manchester, they know what to do!