Indices Trading Tips And Strategies – 4 Ideas That Are Worth Trying

Indices trading happens to be a lucrative affair, for both newbie traders as well as seasoned experts. Lower risks in individual stocks, smooth price movements and a diverse array of options to invest your money in – you CANNOT beat the perks that online index trading offers. But safe as it may be, one still cannot underplay the importance of having a good market understanding and a well thought out strategy with this form of trading. This is where smart indices trading tips can help you score better deals and place more profitable trades on the market. Here are 4 strategies that you simply MUST try during your tryst with the Indices Trading market.

Indices trading tips and strategies – 4 MUST-TRY ideas for your investments

#1: Day Trading

For those who prefer closing off their open positions by the end of the day, keeping an eye on corporate announcements and government data can be of a huge advantage. Product launches, corporate news, economic policy changes and sometimes even celebrity endorsements can generate movements in indices that can be capitalised upon by a day trader. The idea here is to keep an eye on the news at all times and place trades based on anticipated market movements. But this form of trading will have you glued to your Indices trading platform all through the day.

#2: Breakout Trading

This is an idea that will be more useful for experienced and seasoned traders who know how to read the market well and can anticipate trends early on. Breakout strategies are used when a trader is able to take a position in the early stages of a trend, thereby helping them make the most from expected price movements. Online indices trading experts can use this idea to get in and get out of a trade at just the right time so as to take advantage of a specific wave in index prices.

#3: Position Trading

This strategy involves holding and buying stock on an index trading platform for an extended period of time. Therefore, your entry and exit points for the trade position will not be influenced by short term market movements. The number of trades one will place will be less as well but each of these will have a more substantial potential to generate profits. Position trading strategies however, should be planned very carefully or you will end up exposing your capital to significant long-term risks.

#4: Correlated Market Trading

Index trading does revolve around the movement in indices values but these numbers are also influenced by other market changes as well. Share market prices can affect indices most prominently. If the index you are trading in includes entities dealing with foreign exchange, the forex market price movements will also have a direct impact on your profitability. Seasoned traders explore these market correlations and anticipate their influence for placing trades on their indices trading app.

Indices trading in UAE – a final word

Indices trading allows investors to look at the bigger picture and create a diverse investment portfolio for themselves by placing safe bets on larger market movements. Use the above strategies and explore your potential as a smart investor by opening an account with the best Indices trading company.

5 Questions You Must Ask Before Getting Into Precious Metals Trading

Metals like precious metals have been indicators of personal wealth since times unknown. Even in older times, kings and queens used to showcase their affluence using gold and silver jewelry. And today, when precious metals trading has evolved into a full-fledged online investment activity, their value is still holding the allure that it held during the era of ancient civilisations. The only difference now is – you DON’T have to be royalty to become a Gold and Silver trading investor.

Online precious metal trading has picked up its popularity, mainly because of the stability that this form of investment offers. People choose to put their money in metals like gold and silver to safeguard their wealth from economic disasters, inflation, effects of war and political crisis and even natural disasters. Come what may – your money will always remain safe when invested in bullion.

Now hold on – don’t jump onto this wagon yet! Are you prepared for what precious metals trading might entail? If the answer to the above is NO, here is a list of questions that you must ask yourself before opening an account with a precious metal trading platform and starting to invest your hard-earned funds:

#1: Physical, digital or paper?

The first point to understand will be determining whether you wish to buy actual physical bullion or wish to own precious metals in a digital format. The third and most interesting option is paper bullion like gold certificates and futures contracts that will give you access to high liquidity online trading opportunities for making profits based on market price movements.

#2: How liquid is this investment?

Most investors choose precious metals as a long-term wealth storage vehicle. The idea is that the price of bullion always follows a rising trend when evaluated in the long run. But if you are looking for a more liquid investment vehicle, choose ETFs and Closed Ended Funds which can be bought or sold throughout the trading day. These settlement period for these stocks is also quite short, as compared to buying and selling actual gold or silver.

#3: How is precious metals trading taxed?

One aspect that most traders tend to ignore is taxation. This form of trading can be highly lucrative and will therefore, come within the ambit of different government tax laws. Make sure you consider taxation costs as well before you choose to invest in this mode.

#4: Which precious metals trading company should you choose?

Opening an account with a broker/trading platform is a tough decision to make. The performance and effectiveness of the precious metals trading app you are using can make or break your trade success. Do not miss out on market opportunities by making the wrong choice here. This form of investment requires a robust technological platform that will deliver predictable and reliable performance when you need it to.

#5: Which metals to invest in?

Read through precious metals trading tips and conduct a thorough market research to determine which metals – gold, silver, platinum, palladium or others, are you willing to put your money in. Each option has its own inherent value and market constraints and should therefore, be selected based on actual analysis and investment data rather than emotionally driven choices.

Precious metals trading in UAE

If you are planning to invest in the UAE precious metals trading market, make sure you are well aware of what you are getting into before you end up exposing your capital to these investment avenues. Carefully planned trades lead to the most rewards. Use this article to your advantage and make the right choices!

4 Factors That You Must Know Before Selecting Your Forex Trading Broker

Most beginner traders believe that choosing a forex trading broker for themselves simply revolves around the art of distinguishing between the following two:

1.       Shady professional

2.      Non-Shady professional

But the reality, my friend, is far more complicated than that. As forex trading platforms and the market itself, have matured over the years, the task of finding the right broker has taken on many layers of analysis and evaluation. Simply finding a genuine and honest forex trading company might not be enough. You need to check on a host of different factors that will have a direct impact on your profitability and ease-of-investment. This article will help you determine what to look for.

So, here is a small list of factors that you must know before selecting your forex trading broker:

#1: Compliance

A flashy website and Google reviews may not be enough to gauge the competence and market credibility of a service provider. The internet can be fooled at times and hence, the best way to ensure you are making the right choice is to check whether or not the regulatory compliances of the online forex trading broker you are evaluating are in order. Their standing with the Securities Commodities Authority (SCA) of UAE, their compliance status with all regulatory requirements and recognitions from relevant forex trading authorities is the first factor that you must check upon.

#2: Account Features

Every broker will provide you with an online forex trading platform but what are they offering beyond that? Do they give you access to leverage in your margin account? What do they require as part of the minimum initial deposit? What are their commissions and spreads like? Do they allow you to fund your account using varied payment modes like PayPal, Credit Cards, Debit Cards, ACH, Wire Transfers and more? All these factors will have a huge impact on the ease with which you will be trading using their system.

#3: Currency Pairs

You do not want to work with an online forex trading platform that does not allow you to buy/sell the currency pairs you plan to deal in. Different currency pairs enjoy different levels of popularity in the market. Like the EUR/USD and GBP/USD pairs enjoy the highest liquidity followed by options like USD/JPY and USD/CHF. And most platforms will give users access to these options. But if the currency pair you are interested to trade in isn’t listed on your broker’s forex trading app, is should be a deal-breaker.

#4: Customer service

Online forex trading platforms run on technology which means that glitches with the system can be expected from time to time. Beginner traders can often find new platforms to be overwhelming and hard to follow. If your broker provides you with round-the-clock customer service and technical support, these issues can be resolved must faster.

Forex trading broker – a final word

The above factors are must-have in the forex platform you choose to open your account with. Make sure you conduct a robust and thorough evaluation of the service provider you are considering before you finalise their name as your trading partner.

Online Forex Trading – Ideas To Follow And Mistakes To Avoid

The reason why most investors are attracted to online forex trading is the fact that it is a relatively easy-to-enter market. The initial capital required to start trading is fairly low and the market itself happens to operate on high liquidity. But the one fact that most forex trading traders do not understand is that even if the market is easier than others, actual investments need fine-tuned strategies and sharp thinking to reap sustainable returns. Forex trading experts hone their skills using incessant practice and discipline. They also conduct self-analysis to figure out what exactly is driving their investment strategies and whether or not these influencing factors are worthy of their attention. Fear and greed both, should not be a part of the equation anyhow.

So, if you are new to online forex trading and are simply testing the waters, here is a list of ideas that you can follow and mistakes you should avoid to safely and successfully manage your portfolio.

Online Forex Trading – Ideas to Follow

Determine entry and exit points

Looking at charts in different time frames can often become confusing. What looks like a buying opportunity on a weekly chart can emerge as a loud-and-clear sell signal for an intraday analysis. Keep your timing in sync and fix entry and exit points with both timeframes in mind to ensure your online forex trading strategies are on point.

Calculate your expectancy

Evaluation of your trade strategies is important to determine whether or not you are reading the market right. Measure your trades that were winners and calculate those that were losers as well. The next step will be to determine the actual profitability by using the following formula:

Expectancy = (% Profitable trades * Average Profit) – (% Loss Trades * Average Loss)

Stop-Loss Orders

Most newcomers in the world of online forex trading wouldn’t remain glued to the screens all day. And the forex market has the potential to turn on its head in the blink of an eye. One smart way to minimize unexpected losses is to put in stop-loss orders. This way, your maximum risk gets capped and your capital is only partially exposed with each trade.

Online Forex Trading – Mistakes to avoid

Lack of research

Online forex trading strategies that are formulated without any market research tend to fail eventually. This is a market that you cannot gauge based on your gut feel and emotional state. Entering this market without research is like entering a battlefield without any weapons – a foolhardy idea that will only lead to losses.

Trading without a strategy

Getting into the forex trading market with a ‘will-see-what-will-happen’ approach is a guaranteed losing scenario. This isn’t a world where you can make up your plans as you go along. Having well formed strategies and a staunch approach of following them will ensure you are in control of the situation even in the worst of times. If not, the market wave might, more often than not, end up drowning you.

Online Forex Trading – The smart approach

Using all the above online forex trading tips to formulate your market approach will provide you with enough safeguard against losses and ensure that profitability remains maximised in accordance with the current market conditions. Be sure to keep these in mind.