Category Archives: Financial

Practical tips for trading cryptocurrencies

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For some time now I’ve been closely monitoring the performance of cryptocurrencies to get a feel for where the market is headed. The routine my elementary school teacher taught me of waking up, praying, brushing your teeth and eating breakfast has shifted a bit to waking up, praying and then going online (starting with coinmarketcap) just to know which crypto assets are present the red.

The start of 2018 wasn’t a nice one for altcoins and allocable assets. Their performance has been crippled by the frequent belief by bankers that the crypto bubble is about to burst. Nonetheless, cryptocurrency enthusiasts still “HODLing” and to be honest they are reaping a lot.

Recently, Bitcoin has dropped to almost $ 5,000; Bitcoin Cash hit nearly $ 500 while Ethereum found peace at $ 300. Virtually every coin has been hit except for newbies who were still in the excitement phase. As of this writing, Bitcoin is back on track, selling at $ 8,900. Many other cryptos have doubled since the uptrend began, and market cap is at $ 400 billion from its recent spike of $ 250 billion.

If you are slowly getting to grips with cryptocurrencies and want to become a successful trader, the following tips will help you.

Practical tips for trading cryptocurrencies

• Start humble

You’ve already heard that cryptocurrency prices are skyrocketing. You’ve probably also received the message that this upward trend may not last long. Some naysayers, mostly well-respected bankers and economists, typically refer to them as “get-rich-quick” plans with no stable foundation.

Such messages can lead you to invest in a hurry and not use moderation. A little analysis of market trends and sensible currencies to invest in can guarantee you good returns. Whatever you do, don’t invest all of your hard earned money in these assets.

• Understand how the exchange works

I recently saw a friend of mine post a Facebook feed about a friend of his who was trading on an exchange he had no idea how it was going. This is a dangerous step. Always check the website you plan to use before signing up, or at least before you start trading. If they provide a dummy account to mess around with, take this opportunity to see what the dashboard looks like.

• Don’t insist on doing everything

There are over 1400 cryptocurrencies to trade, but all of them are impossible to deal with. Spreading your portfolio across a large number of cryptos that you can manage effectively will minimize your profits. Just choose some of them, read about them and learn how to get their trading signals.

• Stay sober

Cryptocurrencies are volatile. This is both their curse and their blessing. As a trader, you need to understand that wild price fluctuations are inevitable. Uncertainty about when to make a move makes you an ineffective trader. Use hard data and other research methods to be sure of when to take a trade.

Successful traders belong to various online forums where cryptocurrency discussions about market trends and signals are discussed. Sure, your knowledge may be sufficient, but you will have to rely on other traders for more relevant data.

• Diversify sensibly

Virtually everyone will tell you to add to your portfolio, but no one will remind you to look at currencies with real-world uses. There are a few crappy coins to deal with for a quick buck, but the best cryptos are the ones that solve existing problems. Real-life coins tend to be less volatile.

Don’t diversify too soon or too late. And before you take a step into buying any crypto asset, make sure you know its market cap, price changes, and daily trading volume. Keeping a healthy portfolio is the way to reap a lot from these digital assets.

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Source by Rodgers Aluvisia

Day Trading Versus Long Term Trading – Find Out Which Wins

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Trends rule the forex market. Every trader loves a good, strong trend. As traders, many of us want to make quick profits. Who would not do that? The problem is that if we only focus on making quick profits we often overlook a much more profitable strategy that is the long term trend.

First, let’s discuss the anatomy of a short-term trade. A short term trade can take anywhere from less than a minute to around 20 minutes if you are really lucky. A 20 minute trade should generate huge profits. These are the unusual trades and the 1 to 5 minute trade is more common in day trading. As a trader, you have to decide in a split second whether you want to take a short-term trade.

When entering a short-term trade, an accomplished trader sets both exit points, profit and stop-loss. Most traders, however, set a stop loss but not a target for profit and leave the exit to their discretion and often to luck. When trading in the short term, set your exit points before entering the trade. You can adjust them at any time during the course of trading but protect yourself from sudden reversals and changes in market sentiment.

Long-term Forex trading is often overlooked and even frowned upon by many traders. For one reason or another, most forex traders believe that most of the money is made from scalping the market and that holding positions overnight is not a good strategy. Well … that assumption is wrong. The forex market is very similar to the stock market in this regard and those who trade long-term charts, whether using a daily or weekly chart, have a better chance of making incredible profits.

The reason for this is that, barring exceptional events, currencies make their big gains and losses over extended periods of time rather than 30 minutes. If you look at the long chart of a currency pair, you will find that if you had traded the long term chart, you would be maximizing your profits. That’s because, instead of just making small daily profits on a trending currency, you’d ride the trend for days, weeks, and sometimes even months. I ask, where do you see the chance of bigger profits?

I agree that the long term chart offers a better chance of maximizing your profits, but it takes discipline and a revision of your thinking to stay in a trade for a much longer period of time.

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Source by Luis Nieves

4 tips for beginners in the world of forex trading

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If you are new to the world of Forex trading, you might be overwhelmed by the various brokers that are out there. How can you avoid the common pitfalls? In this article, we’re going to share four tips to avoid getting burned in the world of forex broking.

Instructions and tutorials

Make sure you choose a site that has guides and tutorials to get you started. This is a great way to get your feet wet before actually investing real money in the trading platform. Nowadays, many forex broker sites offer you a tutorial option where you can trade fictitious money and get familiar with the system.

This is a very useful feature for beginners as it allows you to learn how the platform works and avoid unpleasant surprises in the future.

support

Having live support is always important when you are a beginner. No matter how detailed a guide or tutorial appears on a website, you are very likely to have questions that are not covered in it. For this reason, you should choose a broker who can offer you live support via phone or chat.

In addition, you should choose a broker who has a forum on the website. This way you can interact with other users and learn how the platform works.

Payment options

Many beginners choose a broker and start trading only to be unable to withdraw their profit afterward. Not all payment options are available depending on the region you live in and you should consider this before signing up with a broker.

Take a look at the FAQ page and find out which country the broker supports. Ideally, you want to pay by PayPal or bank transfer instead of a check. When in doubt, don’t hesitate to contact the broker before going through the lengthy signing process.

Invest wisely

It is important that, as a beginner, you invest wisely and slowly. Investing is not a scientific process and there is no guarantee that you will get your money back. For this reason, it is important that you invest money that you can afford to lose. This is especially true for beginners as you might be tempted to get rich quick. Take the time to learn how the platform works, then invest your money.

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Source by Elijah Bitson

Housing investment – furnished or unfurnished

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If you are a housing investor, choosing the route of furnished or unfurnished housing is a very important decision. You need to choose what will maximize your income and protect the overall investment in your building. This isn’t an easy choice and I’ve made a stand so I’m going to give you my insight into the pros and cons of renting furnished and unfurnished.

Of course, when investing in an apartment building, it is easy and uncomplicated to rent the units unfurnished. For most, this is a good steady income without having to worry about furniture or wear and tear on the items purchased. Some renters want to settle in rental apartments for years and all you need to do is do the occasional maintenance, fix minor plumbing issues, broken windows, and similar items. Some renters prefer shorter rental periods, which means you need to freshen up the apartment with paint and other maintenance work to keep the units looking fresh for the next tenant.

Overall, there is significantly less to consider when renting unfurnished apartments than furnished ones; the lease duration and maintenance are the main considerations. The location of the property, the style and maintenance of your building will determine the type of tenants you will attract. This is an important consideration when deciding whether to rent furnished or unfurnished apartments.

For a short-term tenant, a monthly lease in a furnished apartment is often very attractive. For example, military service workers are usually only stationed for a short time and do not like having to lug furniture from one office to another. Also think of traveling businesspeople and travel nurses who work on short notice. These are perfect renters for furnished apartments and these great tenants cause minimal damage as their companies often rent the apartments for them so they are especially inventive to be gracious tenants.

In some municipalities, you can divide apartments into separate rooms to create common units. Apartments with shared common areas have enormous profit potential. A furnished room is very convenient for renters who travel light or want to maximize their income by sharing their expenses with others. Since many people travel on assignment and have other apartments, work and a safe place to sleep at night are particularly important to them. We do not want to assume that all short-term renters looking for a furnished apartment belong to the hiking types.

Tenants who rent out furnished apartments are usually willing to pay a little more for apartments because, firstly, they get more. Second, most of them already have a full set of furniture elsewhere and just don’t want to move or store their things. As they use your facility, it is their responsibility to look after it and leave a security deposit to cover any damage. Overall, as a landlord, you have a higher tenant class.

The decision to rent furnished or unfurnished apartments has a huge impact on the types of tenants you can attract. If you prefer to attract higher priced tenants looking for shorter leases than furnished rentals, this is the way to go. If you prefer long-term renters who like to nest for a year or more, a clean, well-kept apartment is the right choice. In the end, the decision should be based on what is the most profitable situation for you as an investor.

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Source by Mauri Baxter

Kriterien für die Investitionsbewertung

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Die Bewertung einer Investition umfasst drei Schritte:

• Schätzung der Cashflows

• Schätzung der erforderlichen Rendite (der Kapitaleinsatz)

• Anwendung einer Entscheidungsregel als Entscheidungsregel für die Auswahl

Anlageentscheidungsregel

Die Anlageentscheidungsregeln können als Kapitalbudgetierungstechniken oder Anlagekriterien bezeichnet werden. Um den wirtschaftlichen Wert eines Investitionsprojekts zu messen, sollte eine solide Bewertungsmethode verwendet werden. Die wesentliche Eigenschaft einer soliden Technik besteht darin, das Vermögen der Aktionäre zu maximieren. Folgende weitere Eigenschaften sollte ein solides Bewertungskriterium für Investitionen mitbringen:

• Es sollte alle Cashflows berücksichtigen, um die wahre Rentabilität des Projekts zu bestimmen.

• Es sollte eine objektive und eindeutige Möglichkeit bieten, gute Projekte von schlechten Projekten zu trennen.

• Es sollte helfen, Projekte nach ihrer wahren Rentabilität einzuordnen.

• Es sollte der Tatsache Rechnung getragen werden, dass größere Cashflows kleineren vorzuziehen sind und frühe Cashflows späteren vorzuziehen sind.

• Es sollte helfen, unter sich gegenseitig ausschließenden Projekten dasjenige auszuwählen, das das Vermögen der Aktionäre maximiert.

• Es sollte ein Kriterium sein, das auf jedes denkbare Investitionsvorhaben unabhängig von anderen anwendbar ist.

Diese Bedingungen werden geklärt, wenn wir in den folgenden Beiträgen die Merkmale verschiedener Anlagekriterien diskutieren.

Kriterien für die Investitionsbewertung

Eine Reihe von Investitionsbewertungskriterien oder Kapitalbudgetierungstechniken sind in der Praxis gebräuchlich. Sie lassen sich in die folgenden zwei Kategorien einteilen:

1. Kriterien für den abgezinsten Cashflow

• Barwert

• Interne Rendite

• Rentabilitätsindex (PI)

2. Kriterien für nicht diskontierten Cashflow

• Amortisationszeit

• Abrechnungsrendite

• Vergünstigte Amortisationszeit

Discounted Payback ist eine Variante der Payback-Methode. Es handelt sich um eine diskontierte Methode, aber es ist kein echtes Maß für die Rentabilität der Investition. Wir werden in unseren folgenden Beiträgen zeigen, dass das Kapitalwertkriterium die gültigste Methode zur Bewertung eines Investitionsprojekts ist. Es steht im Einklang mit dem Ziel, das Vermögen der Aktionäre zu maximieren.

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Source by Randika Lalith Abeysinghe