Get started

Investmentmanagement

Creating a Balanced Investment PortfolioCreating a Balanced Investment Portfolio In the vast realm of trading, where platforms like FXOpen play a pivotal role, strategy and skill stand paramount. As the age-old adage goes, 'Don't put all your eggs in one basket.' In the context of trading, this underscores the significance of diversification. Enter the concept of a balanced investment portfolio - an excellent balanced portfolio example, which emerges as an oasis of hope amidst the unpredictable dunes of market volatility. Understanding the Importance of a Balanced Investment Portfolio To achieve a balanced investment portfolio, it's crucial to consider the balance of individual components, especially forex, CFDs, stocks, and bonds. For example, a stock portfolio balance refers to the proportion of stocks in relation to other investment types. This balance is pivotal, as stocks often carry higher risks but also higher potential rewards. By understanding their own risk tolerance and learning how to balance portfolio assets effectively, traders can determine the ideal portfolio balance that meets their specific objectives. Building the Foundation: Investment Basics Every experienced trader knows that the world of investments is vast, presenting myriad opportunities. Some of the primary investment types include: - Stocks: These signify ownership in a company and constitute a claim on a fraction of its assets and earnings. - Bonds: Essentially, when you invest in bonds, you're loaning your money, either to a corporation or the government, in exchange for periodic interest payments plus the return of the bond's face value when it matures. - Real Estate: Investing in tangible land, buildings, or housing. Given its physical nature, it often acts as a hedge against more volatile markets. - Mutual Funds: These funds pool money from several investors to invest in a diversified portfolio of stocks, bonds, or other securities. Central to investment basics is the risk-return tradeoff. Essentially, it highlights that the potential return on any investment is directly proportional to the risk associated with it. In this matrix, diversification emerges as the most effective strategy, helping to spread and, in turn, mitigate risk. Asset Allocation Strategies Asset allocation might seem like a complex term, but at its core, it's about ensuring that your portfolio reflects your investment portfolio balance, harmonising your desired risk and reward. 1. Modern Portfolio Theory (MPT) Introduced by the visionary economist Harry Markowitz in the 1950s, the Modern Portfolio Theory (MPT) has since established itself as a seminal concept in portfolio management. Groundbreaking for its time and still influential today, MPT hinges on a principle that feels intuitive yet was revolutionary upon its debut: diversifying investments to maximise returns while judiciously managing the associated market risk. Central to the MPT is the construct of the 'Efficient Frontier'. This captivating concept represents a boundary in the risk-return space where portfolios lie if they offer the highest expected return for any given level of risk. In essence, any portfolio residing on the Efficient Frontier is deemed optimal, reflecting a balance where no additional expected return can be achieved without accepting more risk. 2. Strategic Asset Allocation Here, traders establish a base policy mix — a proportional combination of assets based on expected rates of return for each asset class. It’s a long-haul game, adjusting the portfolio as long-term goals or risk tolerance evolve. 3. Tactical Asset Allocation A more active management portfolio strategy, this method tries to exploit short-term market conditions. It involves shifting percentage holdings in different categories to take advantage of market pricing anomalies or strong market sectors. Diversification In the complex world of investing, understanding how to balance a portfolio is key. Diversification is the guardian against unpredictability. It is the art of spreading investments across various assets or sectors, ensuring that potential adverse events in one area won't unravel the entire portfolio's performance. Essentially, diversification is the protective shield that buffers against market volatility, offering a more stable and consistent growth path for traders. Geographical Diversification Globalisation has knit economies closer than ever before, yet each retains unique characteristics influenced by internal and external events. By diversifying investments across continents and countries, traders can leverage these unique attributes. Sector Diversification Beyond geography, the global market is segmented into various sectors — technology, healthcare, and finance, to name a few. Each has its growth trajectory, impacted by different factors. Spreading investments across sectors can hedge against unforeseen adversities. Individual Asset Selection The keystone of a robust portfolio is the judicious choice of individual assets. Beyond the broad strokes of diversification, the meticulous selection of each asset determines the portfolio's potential success. It's where profound understanding meets strategic decision-making, ensuring that every asset, be it a stock, bond, or commodity, is handpicked to serve the trader's overarching goals and vision. Proper research, encompassing financial performance, management quality, growth potential, and market trends, provides insight, reducing the chances of unwelcome surprises. Risk assessment is another crucial part of individual asset selection. Risk is an inherent part of investing. However, with rigorous risk assessment, traders can anticipate potential pitfalls. Evaluating the risk associated with each asset and its correlation with others in the portfolio helps in achieving the desired balance. Monitoring and Rebalancing In the dynamic dance of markets, continuous oversight and timely adjustments keep a portfolio's rhythm and harmony intact. - Regular Portfolio Review. The world doesn't stand still, nor do the markets. Regular reviews ensure that the portfolio aligns with the trader's goals and market realities. - Rebalancing Strategies. Over a period of time, certain investments will experience more rapid growth than others. This can shift the portfolio’s balance, necessitating rebalancing. Rebalancing, whether by reinvesting dividends or selling assets that have appreciated to buy those that have declined, ensures alignment with the desired risk levels and asset allocation strategy. Conclusion Crafting a balanced trading portfolio is an art backed by science, strategy, and due diligence. It's an ongoing process requiring constant monitoring and fine-tuning. By keeping a finger on the pulse of global trends, understanding risks, and staying committed to their goals, traders can navigate the choppy waters of global markets effectively. For those eager to embark on or deepen their trading journey, FXOpen offers the platform and tools. To initiate this exciting endeavour, you can open an FXOpen account and explore the dynamic offerings of the TickTrader platform. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Editors' picks
NASDAQ:TSLAEducation
by FXOpen
5
Understanding Warren Buffett’s Investment PhilosophyWarren Buffett is arguably one of the most successful investors of all time. Over the years, he has developed a set of principles and strategies over his career. He was inspired by the teachings of key financial thinkers like Phil Fisher, Benjamin Graham and Charlie Munger. Key Influences Phil Fisher Fisher’s approach focusses on quality companies with long-term growth potential, emphasizing focused portfolios and long-term holdings. He believed in gathering information about a company beyond what’s readily available. His lessons on maintaining a focused portfolio and committing to long-term holdings are clear influences on Buffett’s patient, value-driven investment philosophy. Benjamin Graham Known as the father of value investing, Graham’s core principle was to buy stocks at a price lower than their intrinsic value, creating a margin of safety (MOS). This strategy helps mitigate risk and increase the likelihood of future gains. Buffett absorbed Graham’s teaching on finding stocks that are undervalued and buying them at the right price— definitely a large contributor of his investment success. Charlie Munger Munger is Warren Buffett’s long-time business partner. He introduced the concept of economic moats, which refers to a company’s long-term, sustainable competitive advantages. Munger advocates investing in businesses that can fend off competition and maintain profitability over time. This philosophy drives Buffett’s focus on companies with strong market positions and solid long-term potential, favoring these over shorter-term, speculative opportunities. Buffett's Investment Approach 1 - Buy for the Long Term. Buffett’s strategy emphasizes identifying companies that can consistently perform well over long periods. He holds stocks for years, or even decades, often looking for opportunities where other investors may overlook value. 2 - Buy at the Right Price . Buffett is known for his discipline in waiting for the right moment to invest. His approach ensures he doesn’t overpay, instead seeking stocks when they are priced below their true value, maintaining a margin of safety. 3 - Buy the Right Stocks . Buffett doesn’t just buy cheap stocks, he buys quality companies with sustainable advantages. His goal is to invest in firms with strong business models that will continue to perform well regardless of market conditions. Warren Buffett emphasizes investing in companies with simple and clear business models , ones that fall within his circle of competence. He prefers to thoroughly understand the operations, products, and long-term prospects of a company before making any investment. This principle is combined with in-depth analysis of how the company operates and how sustainable its valuations and future growth prospects are. If a business model is too complex or outside his expertise, he avoids it. He prioritizes companies with integrity and transparency in their management. He believes in backing leaders who are passionate, have strong vision and execution capabilities and who use shareholder funds wisely. Trusting management to run the company effectively, with efficiency and accountability, is critical for long-term success in Buffett’s eyes. Investing in quality companies isn’t enough—Buffett also insists on buying them at attractive prices. He maintains a strict discipline of buying with a margin of safety, ensuring the price paid is lower than the company’s intrinsic value. This means waiting for opportunities to buy great businesses at fair prices rather than settling for fair businesses at attractive prices , which may not perform well over time. Buffett has made many of his lessons and strategies available to the public through his letters to shareholders and partnership letters. These documents offer insight into his investment approach, decision-making process, and lessons from both successes and failures. There are several key books that capture Buffett’s life, philosophy, and strategies in greater detail: Warren Buffett’s Ground Rules The Warren Buffett Way Buffett: The Making of an American Capitalist The Warren Buffett Portfolio The Snowball: Warren Buffett and the Business of Life Each of these resources provides a comprehensive look into the mind of one of the most successful investors of all time, offering practical advice and detailed case studies of his investments. ________________________________
SP:SPX
by CryptoCheck-
Paving Your Path to Millionaire Status in Forex: 2 Proven Routes The allure of becoming a millionaire through forex trading is a dream shared by many. While forex trading offers substantial profit potential, it's also a challenging arena that demands skill, discipline, and strategic thinking. In this comprehensive guide, we'll explore two compelling ways to embark on the journey toward millionaire status in the world of forex. Through real-life examples and insights, you'll gain a deeper understanding of the routes that can lead you to financial success. 1. Mastering the Art of Trading: Skill and Discipline Becoming a millionaire in forex through trading involves honing your skills, developing a disciplined approach, and managing risk effectively. Here are two examples of how traders have achieved this goal: Swing Trading Mastery Algorithmic Trading Success 2. Investment and Management: Growing Wealth Through Funds Another avenue to millionaire status in forex involves building wealth through investment and fund management. Here are two examples: PAMM Account Manager Proprietary Trading Firm Founder Becoming a millionaire in forex is a lofty goal that demands dedication, skill, and strategic planning. Whether you choose to master the art of trading or opt for investment and fund management, success is achievable with the right approach and mindset. While the journey may have its challenges, the destination of millionaire status is well worth the effort. By embarking on one of these two proven routes and staying committed to your goals, you can turn the dream of forex millionaire status into a reality. 💰📈🚀 Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by TopTradingSignals
2
Shadow Banking The shadow banking system is something you're probably not familiar with. Until today! the shadow banking system is made up of mainly investment banks i.e. your market whales or market makers, money market funds i.e. like schwab and vanguard, and hedge funds. these financial entities dont give out loans to you or I, but rather trade amongst themselves. which is what is known as the shadow banking system. one of the main functions of the Shadow Banking system is to provide liquidity aka money (which is mostly made up anyways) to the financial system. for example if a whale wants to move a massive amount of money into a position, or what happened to Zimbabwe a while back and give an entire nation a loan at a ridiculous amount of interest they're able to do so, or take a massive position in a promising opportunity and need capital fast! How does this work? How do you ensure that a hedge fund will pay back on their loan? collateral! Usually in the form of government issued bonds and bills. one can trade an equilivent amount of t-bills plus interest for X-amount of dollars to carry out said transaction. example: Hedge fund A wants to take a position shorting the RMBS market. (strictly coincidental) Hedge Fund A is so confident in their analysis they are willing to take a whales position. they need the capital. well like all good risk management practices they have off set their high beta shares with low risk positions. the lowest risk investment you can have is a US Bond or Treasury Bill. So, Investment bank A says okay I can lend you 10 Billion Dollars at a 4% interest rate per day for 3 days, if you default I keep your Bonds. The swap happens. Now, Hedge Fund A has not only to make their money back on the bond trade, but they have to make at least 4.01% to make the trade profitable and they have 3 days to do it. Another way this can be done is Hedge Fund B says I too am going to short the RMBS market but i am going to offer it to all the investment banks and other hedge funds. So they offer it as an investment opportunity. the offering fund takes a small fee and the winnings or losings are dealt accordingly. while this might sound a a little familiar... well it is! names and places have been changed to protect the innocent. The major critique the financial system has with this Shadow Banking is that its not really regulated. becasue going back to our example with Hedge Fund A If Hedge Fund A Doesnt pay then Investment Bank A can shoot their interest rate from 4% to 40% in one day making the loan almost impossible to pay back causing the Hedge Fund to collapse and all the unsuspecting investors in the Hedge Fund are out of pocket. Or my personal favorite. Lets Say Hedge Fund (HFA) A is going to short the RMBS market with a 10 Billion dollar Position for 3 days and Investment Bank A (IBA) wants to short the CMBS market with a $20 billion position for 5 days. well the trade between HFA and IBA happens 10 billion will float to HFA at a 4% interest rate per day for 3 days. Now, IBA wants to short CMBSs they will approach Life Insurance Group A (LIA) and will offer $20 billion dollars in bonds 10 from their reserve and the 10 billion from HFA. at a 5% per day interest rate for 5 days. Now, you might see the problem. but i will continue. Day 3 is up. HFA made their little profit. IBA doesnt have their bonds (because theyre with LIA). So, IBA will probably give HFA 10 billion of their own bonds which for this post is what happens. HFA is squared away with IBA. Now, in the 5 days that IBA is holding LIAs money the fed decided to raise interest rates 200 base points. the bond market yields sky rocket causing their prices to plummet. but fortunately IBA made 10% on their risk they pay LIA their 5% interest and take a 5% loss on their bonds and come out BE or Break even. As you can see in this overly simplified example how if any one part of these parties failed it could be detrimental for a lot of people. Because peoples pensions are held by hedge funds, countries and other governments have their investments with the Investment Bank peoples money and loans are held with the Life Insurance groups. I believe this shadow banking system is also the Stock Markets (yes the entire stock markets) Stop Loss!
K
by ARegularGuy
Why do most traders end up losing moneyThis question is quite scary, but if you are a novice and see this question, congratulations, you are on the right path of trading. The most important lesson to learn before entering the financial markets is risk expectation. You can ask yourself, how much money do you want to make from trading? Is your goal asset appreciation, or a small fortune? If a trade loses money, will it affect your own life? Is your own character able to stop losses in time, or do you have no self-control? After asking these questions, we decide whether to enter the financial market. So why do the vast majority of traders lose money? 1. Because of the particularity of the financial market. I believe that many friends have heard of the 28 rule. For example, in the distribution of wealth in our society, 20% of people control 80% of social wealth; 20% of people will persist in encountering difficulties, and 80% of people will give up when encountering difficulties. The rule of 28 is ubiquitous in life, and it also determines what kind of people will succeed and what kind of people will fail. As for the financial market, it is crueler than real life, because there are no rules in this market, only human nature, so the financial market even surpasses the rule of 28, and less than 10% of people may make profits. In the face of money, most people want to make a big fortune with a small amount, and want to turn around by trading, so those who have stable personalities, strong self-control, low income expectations, and money in their hands are silently harvesting these people who are eager for quick success. Some people may say that the world is inherently unfair, and those who hold funds can only survive because of the capital. Actually no. We Xiaosan hold small funds, and we can achieve low return expectations, or we can do it slowly, but how many people are just anxious to make money? Just want to make a big difference with a small one? Just don’t regard money as money, and think it’s a big deal to take a gamble, and if it’s gone, it’s gone? So it has nothing to do with the amount of capital, but has something to do with people. In financial markets, human nature is the rule. 2. Too many people are dominated by human nature. As I said before, there are no rules in the financial market, and human nature is the rule. Trading is a very anti-human thing. Human nature is greedy for comfort, averse to risk, afraid of losing, feeling that one's level is higher than others, hating giving and learning, impatient, etc., which will be infinitely magnified in trading. There is a saying in the trading industry that trading can be profitable, mentality accounts for 70%, and technology accounts for 30%. In actual combat, it seems that it is not difficult for traders to see the market correctly, but it is very difficult to complete this wave of market and make profits. Why? I give two examples. For example, the problem of stop loss in trading. Seeking advantages and avoiding disadvantages is a characteristic of human nature, unwillingness to lose, unwilling to accept losses, this is human self-protection awareness. Stopping losses in the wrong direction means losing our real money, who can bear it? So in actual combat, many people rationally know that the direction is wrong, but they just don't stop losses, and even increase their positions against the trend, floating orders, allowing the stop loss to become bigger and bigger, and finally lead to serious losses. Another example is the profitable position in the transaction. The market trend always fluctuates upwards, or fluctuates downwards, and profit taking in positions is often encountered. Once profits are withdrawn, we will have a sense of insecurity in our hearts, worrying about the reversal of the market and losing profits. This insecurity is also due to human nature. Even if we rationally know that the profit target has not yet been reached, we should continue to hold positions, but the little emotion of longing for peace of mind has been tormenting us, and in the end we couldn't help but close the position, and made a lot of less money. We comfort ourselves that it is all right, at least there is no loss. But in fact, less earning = loss, because the amount you lose next time will be greater than the money you earn. In the long run, your overall loss will be. There are many such examples, such as betting on the market, heavy trading, unwillingness to admit defeat, stop loss leading to liquidation, etc., are all caused by the aversion to loss in human nature and the fear of failure. In fact, if we look at the trading market 100 years ago, it is basically the same as the current human nature problem. The weakness of human nature is very strong, and it is also the main reason why traders lose money. So at the beginning, I asked everyone to ask themselves those questions, just to let everyone understand their own personality, their current situation, and their human nature, so as to help you win certain opportunities in the trading market. Trading is like a free game. It seems that the threshold is low and no money is required, but in fact some hidden costs are contained in it, and the human nature is clearly played for you. Therefore, before making a transaction, you must have an existing risk expectation, and then think about making money.
FOREXCOM:XAUUSDEducation
by CheetahAttack
BionTech - Financial Health ExcellentThe Statistics say between $182-$253 (1 year) This Looks like it can Happen in 1 Year. That will depend on their Progress. Let's see what will happen in 2023, but it looks ok to hold for the next 5 Years or more BioNTech aims to develop the first mRNA-based vaccine for Malaria prevention with the initiation of a clinical trial by end of 2022 BioNTech is evaluating sustainable mRNA vaccine production capacities in Africa; the Company’s efforts are supported by the joint convening powers of the World Health Organization (WHO) and the Africa Centers for Disease Control and Prevention (Africa CDC) BioNTech’s Malaria project is part of the ‘eradicate malaria’ initiative, led by the kENUP Foundation, to accelerate the eradication of Malaria Disclaimer: Just my Idea! Find your Trading Ideas and learn and study more!
NASDAQ:BNTXLong
by TraderMentorX
no World War 3 - better be long MOEXhi fellow traders, since very long time that such a simple theme popped on my radar and it is so easy to lay down the reasoning. all is based on a single geo-political fact, war world 3 to happen or not, if happens I assume that all stock markets will free fall, crash, and get demolished. including MOEX. if world war 3 will not start, we have the MOEX as attractive long for the following reasons: 1- commodities rally of recent months to serve MOEX and the Russian Ruble very well, they are going to cash the commodities rush. 2- the Russian Ruble is heavily oversold, its handling by the Russian central bank is very healthy and offers great nominal carry reward, MOEX is quoted in Rubles. 3- if we get off the headlines of the "news" institutions/organizations, Russia is definitely a young tiger wishing to turn into a great tiger. remember, central bank with positive real yields is strong signal for very healthy macro policy running the economy. in case you are interested, I have list of specific listed companies that are on my buy and hold list, the investment theme includes calculation made for future dividends and in general it is a theme for the next 3-10 years with clear targets for scale-out / scale-in activities during the journey every 8/21 weeks cycle depends on each specific listed stock within the theme. for that you need to contact me directly. so, risk is world war 3 and reward is best available investment in a currency and stock index directly exposed to commodities bull/boom/flight cycle. the ideas are mine, the decision is yours! good luck
RUS:MOEX
by FlukeTrading
5
AIR.NZ high returns for the next couple of years For stable investors, we have seen the pandemic and preventive measures taken by the countries that have affected the airlines market, Suspension of flights, and the ban on receiving travelers in some countries, High oil, energy prices, and layoffs have made a huge collapse of airlines market. for the New Zealand airlines, the time is coming to buy the small fish, with the share price dropping 49% in three years and the COVID-19 negative news, we can go long on AIR.NZ stock. Corporate directors expect the aviation sector to improve in 2024 so we can buy low and sell high. The total debt for the company has been reduced by 10.88% since 29/6/2020 was: 3,713 B to be: 3,309 B in 29/6/2021 The company's free cash flow was just on the positive side 0.092 B in 2021 and was -0.385 B for the year 2020, which will help the company generate cash to support the business. the company assets have been reduced by -11.25% since it was: 7,543 B in the year 2020 to be: 6,694 B the 2021 year based on (yahoo finance), overview of the company, we can see the price will continue moving downside towards 0.85 $ -0.93$ support area, so we can enter our position there: targeting 2.93 $- 3.00 $ resistance area, as our near target for the next couple of years, This investment will take two years or more (estimated) with an expected return of 200% - 240% in two years or three years
NZX:AIRLong
by youssefallax
If you don't know the difference ...... you are in trouble! - Howard Marx In the late '60s and early '70s if you didn't own the Nifty-Fifty, there was something indescribably wrong with your portfolio - or you. The Nifty 50 stocks got their notoriety in the bull markets of the 1960s and early 1970s. They became known as "one-decision" stocks because investors were told by individuals such as University of Pennsylvania professor Jeremy Siegel that "they could buy and hold them forever." In case anyone is interested how the "Nifty 50" fared during the bear markets of 1973-1974; Blue Chip Performance: 1973-1974 Du Pont -58.4% Eastman Kodak -62.1% Exxon -46.9% Ford Motor -64.8% General Electric -60.5% General Motors -71.2% Goodyear -63.0% IBM -58.8% McDonalds -72.4% Mobil -59.8% Motorola -54.3% PepsiCo -67.0% Philip Morris -50.3% Polaroid -90.2% Sears -66.2% Sony -80.9% Westinghouse -83.1% Just to recap; ... as well as; U.S. Market Capitalization / U.S. GDP exceeded 2.75 while the Historic Norm (not the low) remains 0.78 - i.e. ~70% below current levels(!!) www.hussmanfunds.com U.S. Margin Debt / U.S. GDP has surpassed all previous records (by a very wide margin!), not only by nominal measures but also in relative terms! www.hussmanfunds.com
TVC:DJIEducation
by Nemo_Confidat
If you waited too long to buy, you are 25% downSo this is what happens when you hem and haw and sit on your hands and wait like an idiot to buy in. -25% Down on BTC over the last week. If you sat on your ass and engaged in hand-wringing while watching the thing go up 10x before you decided to buy, you get -25% on your investment, and you deserve it. Also I am almost willing to bet that aside from short interest who are making smart, leveraged bets to the downside, a lot of people that bought recently are going to or have bailed on their losing positions. You -----redacted/explicit---- have no one to blame but yourselves for hemming and hawing for the last 3 years before buying in just recently. I like Elon Musk, but to be honest, even he should have bought at the worst, six months ago.
COINBASE:BTCUSD
by JJMa
3
Risk management using Alpha and BetaAlpha measures excess return. Anything with alpha over 1.0 is considered favorable. Beta measures volatility and market risk. Anything with beta below 1.0 is considered favorable. These cannot be the only metrics you make your trades or investments on, but they are extremely helpful when comparing funds or stocks. Chasing high alpha will usually result in higher beta. Chasing low beta will usually result in lower alpha, meaning muted returns but a more stable, safe investment.
CBOE:VIXEducation
by EBITDAtiger
3
SPR has Massive Upside for Long-Term InvestorsThe support levels (~19.00 and ~17.00) for SPR have been tested on many occasions. This beaten-up stock has very little downside at current levels. The dismal outlook of the aerospace industry has already been priced in. SPR has a partnership with Virgin Hyperloop to manufacture infrastructure needed to build the next generation of high-speed rails. For a company trading at book value and potential for huge growth (with the rebounding aerospace industry, defense industry tailwinds, and a revolutionary rail system), investing in SPR could bring massive returns for long-term investors with patience.
NYSE:SPRLong
by DanEllsworth
QQQS longWe are looking at Inverse purchases QQQ long unit trust position is reaching $250 at a max, needing a strong correction. This double top scenario is looking plausible. This is not a signal, price will change and according to the rules of your plan, trade when price aligns to your levels. Technicals: Swing low - lowest ever price, creating double bottom to previous wick Fake V-shape recovery for the economy. market disconnect in favour of inflating greed. no real QE back into the economy, just inflating prices of stocks. QQQ long chart - price max reached. historic supply awaiting rejection wick candle or inside bar engulfing bearish. Use risk management accordingly here. note: our take is not final, this is not a signal, price will change and according to the rules of your plan, trade when price aligns to your levels. If you like our work, please leave a comment or private message to understand more about our analysis. Many thanks, Team Lupa
LSE:QQQSLong
by LupaCapital
How to ladder buy BTC and other AltsHello everyone, As I'm writing this, the market is currently in a downtrend, and there are many people trying to predict where the price might go. This is a very difficult thing to do and most end up completely wrong. In this idea, I'm going to share with you guys my method to buying during a drop in the market. ================================== What I've highlighted and drawn: 1) The red box, double top, drop zone, which we will refer to as our initial high. 2)Predicted support zones with green boxes 3) Weak support area in orange. 4) Areas of interest circled in yellow. 5) Buys that are captioned. I will now explain each of these, and how I came up with them. ================================== First off, you will notice there are 0 indicators, no RSI, no MACD, and no moving averages, so how can we figure out areas where we might be able to buy anything? 1) The Red Box area is obvious to most, there is a double top with sell off.When it goes below the orange support, this confirms the double top. (Some use Elliot waves, Fib retracements and other methods to help with confirmation, I simply see red and a sale below to confirm this.) 2) The green boxes are predicted and placed based on previous strong green candles in the previous bull run were. (A word of caution, we don't automatically buy here, read everything first.) 3) Weaker support zone is tougher to identify and I personally call it this because in the event of a sale from the same top zone,(Red box area) this is the riskiest position to buy. 4) So with that out of the way, we can now move onto why these areas are circled in yellow: A) We see either an engulfing green candle, a green candle with a long wick or prices moving up multiple days in a row. B) These candle closings are what I use as confirmation of a support in this area. 5) Now for the juicy part, the buys. I'm going to give this one it's own sections because it's more involved then any other section. ================================== Buying: 1) I picked 3 buy prices based on the zone we were in. None of these are the best price. Just a disclaimer, you will RARELY EVER GET THE LOWEST PRICE EVER. So first off, get the idea of lowest price out of your head. 2) Got that lowest price idea out of your head? No? Go back to number 1...... Got that idea out now? Good. So how do I come up with this price? After the initial strong green candle closes, we wait for the close of the next days candle and then place a buy order in the body of the 2nd closing candle. We don't use wicks because there is a far lesser chance that we will see those prices. Example on buy#1: Strong candle close = about 8400 to 9400 Next day close = 8900 to 9900 Based on this = 9200 is within the body. Now that you know how to find the areas of interest (yellow circles), areas of predicted support, (Green boxes), and where to place the buy (Body of candles), you can buy right? Well not yet. You still need to know how much you should buy to ladder responsibly. ================================== Final Step: The buying! Okay after I established my areas, where I would buy after confirmations and such, how do I know how much to buy? There is no secret here, just rules you come up with. My method is a formula: First, I figure out how much capital I have to invest in this market. I'm going to use $10,000.00 as an example: Next, I divide the top price by my potential buy price (not the one I have yet, but what I will be placing my buy order for.) and subtract 1. Finally, I take that number and multiply the amount of money I'm willing to invest in this market. The whole formula looks like this: *Current Investment Capital = Your buy amount. For consecutive buys, use the remaining capital. ================================== Going to place the example of buys in a followup post, I hit the character limit!
BITFINEX:BTCUSDEducation
by gendark2
6
The future of SPX500 - NFP daySo in my humble opinion we have a clear head and shoulders pattern, along with Fib match up to coincide with the NFP report today. Right now I am managing a good client out of an aweful hedge and so this is very crucial for me. The price simply must get up to the target sell level so that I can smash from the top and hit down to close out the bad side of the hedge. My biggest wet dream right now would be to see the NFP pump the rate on SPX500 up to 2135. Truly though anything above 2119 will do me just fine. My suggestion is to go LONG until 2130 - Then smash down with everything you have for the next month or so. Come check me on twitter also if you rock that @rscexclusive
FX:SPX500Long
by RSCexclusive
3