Different Ways Social Trading Can Help You Trade Like A Pro

social trading

The financial markets are attracting more investors for all the right reasons. There are plenty of opportunities to make money in the financial markets and getting into the market is easier than ever. There are also more resources that help you learn about the instruments you want to engage, which means mastering the market is also easier to do.

One of the most intuitive ways to learn about the market while banking profits at the same time is social trading. Rather than trying to understand the market on your own, you now have the ability to learn from top traders and meet fellow investors through platforms like Ayondo. What are the benefits of social trading? Read on to find out.

Earn While You Learn

The biggest advantage offered by social trading is the ability to learn while earning profits at the same time. Instead of spending time getting to know the market by browsing through tutorials and watching videos, you can use a more hands-on approach and learn while observing real trades.

On top of that, you can choose to participate in the trades being made. From the platform, you can set up a live account and directly copy the trades of top traders in real-time. This means you make money whenever they make money.

The approach certainly allows you to earn while you learn. You get more insights on how the market works, a lot of chances to test your own strategies while learning the strategies of professional traders, and still bank profits along the way.

Collaborate and Share

Social trading platforms also allow you to connect with fellow investors. Rather than trying to figure out the market on your own, you now have one more tool in your trading arsenal: collaboration. Using live chats and the social features of the platform, you can exchange ideas and get insights from other traders.

In return, you can share your own insights and contribute to the community. This is a great way to accelerate your learning process and expand your network. It won’t be long before you start making real friends in the trading community and building stronger relationships with other investors with similar interests.

Eliminate Personal Bias

The last, and perhaps the biggest, benefit of social trading is getting other perspectives. When you have other investors sharing ideas and insights, you no longer have to worry about getting caught in a series of bad trades due to personal bias.

Even better, you can choose the best social trading platform to use in no time with the help of this InvestinGoal guide on social trading. The reviews and other resources available on the site are just as valuable if you want to find the right community of traders to join.

Social trading is the next big thing in the financial markets. It helps more traders enter the market of their choice without the usual hassle. If you want to enjoy these advantages, find a good social trading platform that suits you and set up your account right away.

Debunked: 6 Bitcoin Myths

bitcoin myths

You’ve probably heard them before. As a sensational innovation, bitcoin is sure to attract just as many sceptics as it does supporters and investors. The complexity of the cryptocurrency can also cause a degree of confusion for those who aren’t in the know.

As a result, the critics fall back on to several “processes” that are total myths. So, to ensure you know how to buy Bitcoin in Australia easily, here are some common Bitcoin myths debunked.

1. Bitcoin is a speculative investment opportunity.

Most people first hear about the digital currency in the context of price. Whether it’s a recent dip or earlier bubbles, many think of bitcoin in terms of price volatility. But, bitcoin goes beyond merely being a commodity. For instance, it’s breaking down doors with its decentralised peer-to-peer payment network. Even if the price of bitcoin were to stay the same for a long time, it could still be used in many other areas other than just a speculative investment.

2. You can’t buy practical things with bitcoin.

Many people are surprised after knowing that bitcoin can be used in paying for services and goods. Even Microsoft accepts bitcoin payments and PayPal has partnered with a number of bitcoin companies. What’s more, many small businesses accept bitcoin online or in their land-based locations.

So, bitcoin can be used to buy tangible things. A big benefit of the cryptocurrency is the low transaction fees. Bitcoin transactions can save merchants anywhere between 1 – 3% compared to credit card transactions.

3. Bitcoin is used to launder money.

The bitcoin community tends to obey the rules and is usually willing to cooperate with the government so as to increase the adoption of cryptocurrencies. To accuse bitcoin investors of laundering money just isn’t fair, or true. Tangible currencies are usually the preferred way for the unscrupulous to launder money.

4. You must buy a whole bitcoin at a time.

Bitcoins are actually divisible to eight decimal points. So, you can own a hundred-millionth of a bitcoin. Since the value of the cryptocurrency historically reached a high of around $1,000, buying a whole Bitcoin is a pretty far reach for many people, and just not practical.

5. The cryptocurrency can be shut down.

While companies can easily be shut down, bitcoin can only be shut down if the internet is shut down. So, it’s pretty much impossible and improbable.

6. Bitcoin can promise a fixed return scheme.

Many people think that bitcoin has to be a long-term investment in which they can lock in for a certain amount of time and then gain fixed returns at the end of that period. However, bitcoin comes with an open protocol. Both sellers and buyers decide the price, so there’s no guarantee and no fixed returns. If someone says you’re promised a certain amount of return, it’s a myth.

Armed with these 6 myths we’ve debunked, you’re better positioned to start investing in bitcoin.

Making Your Engagement in Stocks and Shares as Risk Free as Possible

stocks and shares

Not all too long ago, the only people engaging actively with stocks and shares tended to be the professionals. However, nowadays, we have such easy access to information that increasing numbers of people who barely know what stocks and shares tend to be investing in them for themselves. This is positive. After all, you can make a whole lot of money by purchasing the right stock and selling it at the right time. However, it’s important to bear in mind that this isn’t a risk-free process. If you invest in the wrong company, don’t keep an active eye on the stock markets, or sell up at the wrong time, you could also make a loss. Stocks are volatile. It’s possible for them to rapidly peak without you even noticing it. So, how do you engage with them while exposing yourself to the lowest levels of risk possible? Well, keep reading to find out!

 

Try Out Stock Simulators

Before you start investing heavily in stock yourself, train with stock simulators. These essentially allow you to engage with the real stock market but with fake money. The stocks will act exactly as they would if you were using real money and reflect their prices on the actual market. You also buy them as you would online in real life by filling out a trade ticket. This is a great practice run. You get to learn without actually risking any cash in the process. Find a good stimulator at Investopedia. You can track your portfolio, trade options, short stock, place market orders, and limit orders. Perfect!

 

Pair Up With the Professionals

If you are unfamiliar with stocks and shares and how they work, it might be best for you to pair up with professionals. Ally Invest is a good example. Previously known as Tradeking, this service makes researching the stock markets more simple than ever. The extensive research and tools that they provide you with make scanning stocks, screening for new stocks, and performance analysis a breeze. What’s more? Market and company snapshots are free, allowing you to gain access to metrics, research, and insights into individual companies without any charge. If you’re feeling hesitant, just read this ally invest review. This piece is put together by Investormint, a site that specialises in personal investor tools and exclusive insights to help you form the best financial decisions possible. They’ve given the company five stars!

 

Find Another Venture

If you are massively concerned about the risk entailed with stocks and shares, it might be best to find another venture. At the end of the day, this is a market where risk can’t be completely avoided. Stocks can be volatile, peaking and falling rapidly. This has to be something you’re prepared for, as at the end of the day it’s all part of the game. There’s only so much you can do to minimise potential problems. But bear in mind that while risk can run high, so can returns. You just have to weigh up how much you’re willing to gamble.

 

Remember, engagement in stocks and shares is never going to be an entirely risk-free venture, but the above advice can help you along the way!

Get a Grip on Trading

Just a few decades ago, only Wall Street traders (or shady stock brokers) had the privilege to be a part of the stock market. Nowadays, anyone can become a stock trader.

The introduction of online trading rose to popularity quickly, and this practice became  affordable and easily available to most people. Before the emergence of online stock exchanges and discount brokers, people had to hire a regular brokerage firm to manage stocks on their behalf. Needless to say, these firms worked for very high commissions. Now that everyone can buy or sell stocks, small-time traders should be concerned about improving their trading skills.

How Does the Stock Market Work?

Stock prices go up and down for a variety of reasons. In theory, this occurs when the company’s business is improving or declining. This also has to do with overall market trends, and a number of other reasons that are hard to predict. Like any other market, the stock market operates on the basis of supply and demand. When a surplus amount of people buy certain company stocks, their prices start to instantly increase. This tactic is used by various dishonest traders who are artificially creating hypes around certain company stocks, so they can sell their share at a higher price. These practices are called pump-and-dump schemes, and are the number one threat for rookie traders.

Where to Buy Stocks?

Small-time investors usually buy and sell stocks through brokers. There are several different kinds of brokerage firms. The old-fashioned firms deal with their clients face-to-face only, provide some additional services (like investment advice), and charge a much higher commission. These firms are also called full-service brokerages. There are also discount brokerages that only do business online, and provide no investment advice. They work at reduced commissions, and their services are considerably less expensive than full-service brokerage firms.

How to Choose a Stock?

There are two ways to choose the  right stock to buy.

One way is to choose stocks after an elaborate fundamentals analysis. This type of analysis checks a company’s financial reports/ public statements for the purpose of analyzing the health of that company. These analyses should include as much data as possible.

Technical analysis is another way of choosing the right stock. Traders who use these analyses believe that price trends of stocks follow certain patterns, and that traders can choose stocks by reviewing past price swings to predict future price trends.

This way of choosing is much more controversial than fundamentals analysis. Using the second method alone is not advisable, because it turns trading into gambling. The best advice would be to use the first method, or both methods combined.

Different Types of Stocks

Large-Cap Stocks

These stocks are from big companies that don’t have big growth potential. Fortunately,  large-cap stocks have the best price stability, and come with the least amount of risk. Some of the stock categories that can be classified as large cap stocks are:

Blue Chips are the stocks of large, stable companies with high profits.

Income Stocks provide lots of dividend.

Defensive Stocks come from companies that are resistant to economic and market cycles.

Cyclical Stocks are very dependable of the economic and market cycles.

Mid-Cap Stocks

These stocks are from companies that are smaller than the large-cap groups. They consist of the same categories as the large-cap groups, but among the mid-cap stocks we can find baby blue chip stocks. Baby blue chips are stocks from profitable and debt free businesses that are smaller size than the companies listed in the regular blue chip category.

Small-Cap and Micro-Cap Stocks

These are mostly speculative stocks that come from small companies that tend to grow in the near future. Stocks of tech start-ups are usually sold in this category.

Penny Stocks

These stocks are not listed at the major exchanges, and are sold over-the-counter at institutions like OTC bulletin boards. Their prices change fast, so it requires active trading. Investing money in these stocks is more risky. The SEC considers the penny stock market to be the most volatile investing environment. On the other hand, penny stocks can bring in very high returns. Many smart investors become millionaires by trading these stocks. They provide more profit-taking opportunities, and higher gain margins than large and mid-cap stocks.

Smart Investing: Penny Stocks

Start up and small time investors love investing in penny stocks not only because of their affordability but also because of its sheer mobility. These stocks are considered as one of the most volatile because compared with other stocks that rise a few percentage points, penny stocks have the potential to rise up to more than 30 percent in a single trading day. In some cases, it can impress a trader with 100% rise in day’s time.  But of course, it’s not all gains – some penny stocks are does not perform as well as the others.

penny stocks

Continue reading “Smart Investing: Penny Stocks”

Stocks: Small Investment, Big Returns

Anybody who can find time and capital can invest in stock exchange. While most people think that this is only reserved for the moneyed and the privileged, more and more have realized the potential of investing in stocks.

stocks

Stock trading can be considered as a volatile investment, but this is not true for all. One crucial advice for novice traders is that, never invest an amount that you cannot afford to lose. With this in mind, you can make financial decisions on investing in the stock market and possible make decent income on with your investment. With this type of investment, the risk is basically proportional to its potential growth – you can earn more if you are willing to risk more.  Continue reading “Stocks: Small Investment, Big Returns”