3 Important Trading Tips and Tricks

In today's article I would like to wrap up all the important things I have learned in trading in the last decade. So let's get to it!

1. Risk management and positive RRR

We started to work on our private fund and application with our team three years ago. At the beginning, we asked ourselves one fundamental question: "How can we shift risk management to a really high and sophisticated level?" Please take notice of the fact that our first steps towards working on our own fund weren't about which broker to use, what server to have, or what strategies we should use. All these questions wouldn't be significant unless we understood that the base for successful trading is mainly a high-quality risk and portfolio management.

The edge in the market doesn't last forever. Strategies fail in time (even though some may work for years), markets change faster than they ever did before, and drawdowns were, are, and always will be present. Therefore, the question is - what is the best way to deal with that? These are all aspects that need to be resolved on a risk-management level and not on the level of brokers, servers, and strategies.

From my point of view, the most important thing is to create a concept of how to look at money management as a whole. Our elemental approach is based on the philosophy that each strategy in a portfolio is like a single employee in a large firm. And the point of managing such a firm isn't based on the fact that each employee should receive the same part of the firm's resources (same percentage of capital), but each employee should have dynamically allocated resources based on how they are doing; how effective they are, and how they are contributing to the firm as a whole. Therefore, our risk management is based on a very dynamic real-time evaluation of actual effectivity of all the "employees". That means, not only from a point of view of their singular effectivity, but also from the viewpoint of their functionality as a whole. Based on such evaluation, different resources are allocated dynamically to each "employee" in time.

Simultaneously, it is important to take into account all the firm's resources as a whole (we can look at it as a cash flow) and such resources are also globally increased or decreased based on how the firm is doing as a whole.

In such a model of management, it is important to consider many different aspects, from analysing the quality of each trade, the distribution of the latest ones, as well as of all existing trades through different analysis of equity, volatility, and current quality of markets. The model is therefore very dynamic and literally it can change every minute the distribution of resources to each "employee" and also the whole firm. Naturally, I won't give out any more details about this subject.

The point for which I am writing this is very simple: It is really important to have a clear idea of how to manage the capital. You don't need sophisticated models if you don't plan to manage big money, but if you are a small "ordinary" trader you have to know what percentage of the capital you risk per trade. If such risk makes sense from the point of the Monte Carlo analysis (and maximum possible Monte Carlo drawdown) and also to have a specific plan on when and how to increase or decrease the amount of contracts, and how to deal with strategies and patterns that currently have a bad period (such strategies shouldn't receive the same resources as those that are doing well).

I strongly suggest to trade with positive RRR. From my personal experience - it is easy to find a beautiful, smooth equity with negative or RRR 1:1, but later on commissions and slippage come in and cards radically change in your disadvantage.

Also, I suggest a book called "Definite to Position Sizing", which I used to get inspiration for my fund.

2. Regular maintenance and adaptation

From the experience I have gained over last few years - whatever edge in the market you have, whatever approach and trading path you have, your edge will need occasional changes, updates, and maintenance (even if you trade discretionary).

Some changes are changes in stop-loss and exits (better adaptation to new volatility); sometimes it is regular optimization; sometimes small changes in a fundamental idea of the edge. Occasionally, some of this work will be done by auto-adaptive requirements and algorithms on your behalf. But even so, some different levels of regular maintenance will be needed.

A definite edge that you could trade without any changes constantly doesn't exist. Markets are changing too quickly and therefore it is necessary to make adequate changes in parallel. Occasionally, it is necessary to change the composition of the portfolio; occasionally to change a market or timeframe, or to change the amount of positions thanks to the ever-changing volatility. These are all things that come with experience and are very important.

If you would look at this from a different angle - it is like in any other profession in life. Whatever you do, new trends, new tools, new requirements are constantly coming in and we need to learn to adapt. If we don't, we can't become successful in anything in this dynamic world (not even in trading).

The good thing is that it isn't as bad as it may look. Simply put, it is important to trade and gain experience, to reconcile that we will never be perfect and occasionally we will make mistakes - to learn from them. The more as we trade, the simpler it will be to make a decision about occasional changes to be able to adapt. Not always will our decisions be correct, but that's how it is in life (if we are reasonably diversified, the occasional wrong decisions will be balanced by series of good decisions. In our fund we are dealing with volatility a lot and on many different levels; from regular optimizations of systems to proprietary auto-adaptive algorithms and indicators, up to concepts working with adaptability on the level of the whole portfolio.

The necessity to know how to adapt is an elemental part of survival in life. This is actually great news because it means that in our genes there is everything necessary for us to adapt. We just need to learn how to use it.

3. Learning is a never-ending process

The previous paragraph leads to the last important point which I need to discuss here - learning is a never-ending process. Trading is a lifestyle, it is a life path. If you have chosen trading, and I mean really chosen, then it probably will be with you for the rest of your life. And that means that there will always be something to learn, there will always be something new. And this is something that makes the path of a trader even more exciting.

To be honest, I have a feeling that I still don't know much even after more than 10 years in trading. Yes, I have noticeably moved forward. In our fund, with our team, we are realizing and discovering some really incredible things. Even though I have a feeling I don't know much about trading. Maybe today I know more about risk management than why markets move the way they do. Maybe today I am capable of developing a larger trading and risk management concept than before, but that doesn't mean that I have found more certainty in the markets. Trading is still a path without certainties. That's why it is trading, that's why it is a speculation. But what is certain these days - it isn't even a civil servant position anymore.

I have a feeling there is always something to learn. Every day we are amazed by new findings that need new, creative thoughts and ideas to be able to implement them in the right way. Even after 10 years I still read trading books; I learn from other traders and I am finding out newer and newer things.

In trading there is always something to improve.

And that's how it's probably always going to be for traders. This is a reason why you need to enjoy trading, why you need to be passionate about it in order to be successful for the long run.

On the other hand, I have to say that you will learn a lot, not only about trading, but also about yourself and life. I am actually surprised myself of what I have learned about myself and life thanks to trading.

Try to approach trading also with an open mind and not only from a logic point of view. That would be a mistake as trading needs logic, heart and creativity.

Happy Trading!

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The Ultimate Guide to Binary Robots

What should you know about such trading robots?

Given how popular they are with scammers, who will take every opportunity to blow their true capabilities out of proportion, it's safe to say that binary option robots have been overhyped lately. From the tracking of weather satellites, to using AI and various intricate trading algorithms, not to mention bare metal servers, everything has been ascribed to binary trading bots as the concept on which they're based. Of course, none of these far-fetched tales are true. Every trading robot out there is based on a more or less intricate combination of technical indicators, and that is the source of their limitations too.

Binary option robots are indeed quite limited when it comes to long-term success and consistency, and that can be attributed to the fact that they're unable to perform fundamental analysis. Technical analysis, with its charts and chart patterns, coupled with various mathematical artifices, is extremely easy to automate. Fundamental analysis on the other hand, does not lend itself well to automation. Not even systems endowed with rudimentary AI can handle proper fundamental analysis, and that explains why experienced robot users' best answer to fundamentals-induced volatility is to just unplug the whole thing.

What types of trading robots will you find out there?

Based on how they are "sold", there are two basic types of binary option robots. There are scam robots and there are legitimate ones. When it comes to intricacy, the sky is the limit really. One can combine as many technical indicators as he pleases and he can place filter on top of filter to refine the results. The money management module can be twisted and turned into all sorts of shapes and sizes too.

How do you recognize a binary option auto trading scam?

The clues/signs are quite numerous and obvious indeed. Scam auto-traders are advertised everywhere these days, and most of them are built on the same blueprint. The scammers set up a 2-3 page site on a recently acquired domain and they upload an elaborate promotional video to YouTube or to another video-hosting site. Even the scripts of these videos resemble one another. They're all about fabulous promises of thousands of dollars per day without any work required on the part of the trader and they usually say very little about how their software is supposed to secure such results. If they do talk about the mechanics behind their traders, they usually concoct some sort of far-fetched story in which they hype up some kind of rather mundane technology, hoping those less knowledgeable will buy into it. Another common denominator of such videos is the fact that scammers make a big deal about offering their software for free. It always turns out though that victims have to make a $250 deposit with one of their "trusted" brokers to get things going. Needless to say, victims then never see a single cent of their money afterwards.

What happens is that the scammers give traders access to a low-grade robot, which uses some technical analysis to generate signals and to trade. They then pick up their commission from the broker they're partnered with and they stop caring. Users then have their deposits traded away by the software. They might even get subsequent phone calls from the broker, through which they're encouraged to make additional deposits.

Legitimate auto traders never hype anything. They just state the facts about their products, including their limitations.

One of the most interesting platforms traders can use to create their own trading robots, is hosted by one of the most popular CySEC brokers, IQoption. Through this platform, traders can use a wizard to create robots, using a number or ready-made modules. Sharing these robots is also possible through the same platform. The creation of more advanced robots requires advanced technical analysis knowledge. Everything is free at IQoption's Robots platform. What this means is that traders without any kind skills and inclination towards technical analysis, can simply log in and use the robots created by other traders. What's more, apparently there are robot trading competitions taking place at IQoption too, which allow traders to put their creations to the test.

The bottom line is that trading robots are always limited by the nature of the technical indicators they use. If you hear stories about an auto trader capable of doing fundamental analysis, you're probably looking at a scam. Be realistic in your expectations. This way, you may actually find the robot trading game an enjoyable one.

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Taking A Look At The Forex Calendar

A Forex calendar is a document that has all the important economic indicators and events. The document helps you in keeping track of the Forex estimates made by Forex experts. As a trader, you will find all the information that you need in order to predict the future.

Where to Find A Forex Calendar

There are many calendars provided by different brokers and financial organizations. All you need to do is to go online and find these calendars. If you are working with a professional broker you will definitely find a calendar on the broker's website.

You can also make your own calendar. Here you need to visit the online calendars and choose the most important indicators and paste them into your document. You should then choose the ones that are of importance to you and save. This will help you to act accordingly.

Indicators Found On the Economic Calendars

Indicators are the ones that give you information about a given survey or occurrence. Some of the notable indicators that you will find on the calendars include:

Consumer credit report: popularly known as CCR, this is a report that aids in estimating the changes in the dollar amounts brought about by the issuance of unsecured loans aimed at purchasing consumer goods.

Although, the indicator isn't a big market mover, it will help you in predicting the future spending levels of the consumers-if more loans have been given it means that consumers have more money to spend. The report also aids in informing you on the position that you should take when trading the retail sales and personal consumption reports.

Consumer confidence index (CCI): it's usually released at 10am EST of every Tuesday of each month. It's usually a survey of over 5,000 US households and it intends to show the spending power, financial health and confidence of the average American consumer.

The survey comes with three headline figures: the index of consumer sentiment, current economic conditions and index of consumer expectations. This survey is usually a big market mover since the confidence of the consumer is of great importance for the performance of the country as a whole.

How to Read The Forex Calendar

It's very easy to read the calendar as all the information you need to know is given to you in black and white. The information comes in different colors where red is the most important, orange is less important while yellow shows the information is not important at all.

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Essential Day Trading Rules To Improve Your Profitability

Traders often ask me to provide them with a guide; something that will allow them to improve their odds of making good money with the minimum amount of risk while day trading. They think that I have some secret information that enables me to take profits out of the markets in a consistent manner.

On the other hand, I tend to follow certain simple rules. Yes, day trading is simple if you are willing to look at the simplest possible explanations. Never try to complicate the scenario because the market itself is a complex entity.

Without much delay, here are the rules that I follow religiously.

1) Familiarize with the market that you wish to day trade. It is true that the price action keeps on varying for different markets. Some of the markets are extremely choppy while the others tend to trend. Before jumping in, take some time to familiarize yourself with the price action of the market.

2) Take some effort to prepare for the day. Just like any other business, day trading requires some preparation from your end. Do not think that this is a way to get easy money. Look at websites that feature business news articles to get a hang of the global events.

3) Stick with your day trading plan. This is very important if you are currently in a losing spree. When too many bad trades begin to accumulate, traders tend to stop following their original trading plan. Strange ideas might begin to flow through their minds - leading to more losses eventually.

4) It is not a good idea to be greedy while day trading. Greed can cloud your sane mind and it will force you to place bad trades. While in the green, just take what you can get and close the shop for the day!

5) Losses are essential to day trading. Some of the best day traders will go through phases of losses. That does not discourage them. Your trading plan should come with elements to control the losses on every trade. Think of it as writing a test. You need not have to get every answer correct. It is the final score that matters.

6) Chasing the market is not a good idea. Some days, you might miss a particularly appealing trade. Instead of jumping in late, it is better to look for price retractions. If it is meant to be, the price will come and touch your desired level!

7) Overtrading is a strict no-no. The brokers will ensure that a trader who overtrades will never remain in business for a very long time. Your day trading strategy should contain minimal entry points in a day. Else, you will end up paying a lot more on commissions to the broker.

8) Move with the flow. When the prices are surging, look for retracements to buy. Likewise, when the prices are falling, look for opportunities to sell. You can be a strong swimmer. However, you will never find success swimming against the tide.

9) Profits are essential; but take steps to protect your existing trading capital too. Think of it as the oxygen supply carried by the divers. When the oxygen in the tank depletes, they will die. Likewise, take steps to protect your trading capital by avoiding overtrading.

10) News announcements. Please be cautious while trading news announcements. Never remain in position before important news flow. The price will usually spike either ways (thanks to the high frequency trading programs).

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Which Is the Best Binary Options Broker of Them All?

The Best Binary Options Trading Websites

When you commence trading on all these thrilling options, it will be necessary to choose a broker who will provide you with a fast and simple way to trade. The top brokerage firms specialise in different areas, which could include having one of either a big or small selection of trading options. Any broker worth talking about out there should include the following basic options:

• Analysis of price movements in the market

• A Choice of Stocks, Commodities, Forex and Indices

• Signals Tools

• Memberships that fit in with your trading requirements

Reputable online brokers are also known to offer an archive of study materials including ebooks and videos. Though it can be helpful to have a wealth of educational sources to get stuck into it is not the sign of a better broker.

Please consider that binary options are not like trading on the stock market. In the binary market traders are not buying any assets, but instead predicting asset prices. This is why this strategy is so popular.

Investigating which is the best binary options broker for you is a must so if a broker seems to be unnecessarily complicated or tells you to study charts and graphs for hours on end before you start then take a look at a different one that's simpler to get going with!

Choose The Best Broker for You

Because you can find a plethora of binary options brokers online, it can be difficult to find one to suit your budget and experience level. To aid you, browse through a few reviews of some of the standout trading setups in the industry, including some of the features that each one offers. We consider this to be vital to your comprehension of what separates the best binary options brokers from the worst so that you can be more confident before you begin to invest your own hard earned money.

Every broker offers various assets. Make sure that you work with an asset that you are both knowledgeable of and confident enough to predict the price fluctuations. Having lots of assets is a not a bad thing, but if you are going to only trade on a small number of assets it's not important if the broker has a thousand others listed on their site.

Below are a few additional useful points that you should think about when you are considering which is the best binary options broker:

• Withdrawal Speeds - even if you are racking up a huge portfolio of great investments, if you can't access your returns - what is it all in aid of?

• Stable Interface - with no spreads and no time delay. Watch out for brokers that are fixing the price feed in their favour - they do exist. so be wary.

• Customer Service - must always be readily available during trading times.

These are three of the most important factors that help outline the best binary options brokers. Only brokers that stick to all of these requirements should be taken into consideration. As well as looking into our own experiences, these are also the opinions of professional traders.

Yet when all is thought through, be reminded of the following: we have yet to come across a method of trading that has a 100% success rate, so be prepared for the fact that you will not achieve a return on every one of your trades; you should try to spread your chances so that you have more winning than losing ones.

Binary options trading is a game of probabilities, which means that you need to balance the risk and try to keep the odds in your favour.

Ensure that you have researched your asset and how you are going to play out your game plan and you will see good results. Be sure to test out your method to understand whether you have prepared enough- only then should you start trading binary options with real money.

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Strategies in Binary Options Trading

To start making money with binary options trading, it is important to have certain procedures that will help in capricious business sector environment. By and large, such approach is normal for a wide range of budgetary markets. Procedures in alternative exchanging exist for brokers as well as for financial specialists since it is clear that binary options methodologies give a chance to get steady salary.

These methodologies posture as complete frameworks which incorporate exchanging signals as well as standards of cash administration, hazard and exchanging brain science. In spite of this, dealers are constantly more intrigued by exchanging signals as the lay relies on upon store, broker's character and his/her mental condition.

All systems in alternative exchanging can be separated into basic and convoluted. Basic ones can be utilized even on essential stages while troublesome ones as of now utilize various specialized examination components and pointers.

Simple Binary Options Methodologies

Basic techniques are gone for utilizing least arrangement of instruments for achieving the objective which is for our situation - pay. That is the motivation behind why such systems are suitable for novices. These days these systems are utilized all over as having the right approach, such procedures have an opportunity to wind up extremely productive.

A standout amongst the most straightforward frameworks are: news exchanging, pattern exchanging, channel exchanging and so on. Their fundamental thought is to utilize one instrument with the assistance of which brokers will have a chance to foresee the anticipated "conduct" of citations of either resource.

As a case, channel exchanging methodology is broadly utilized by merchants from everywhere throughout the world. Its prevalence came not on account of its straightforwardness and accessibility to dealers. But since, having the correct methodology it turns out to be exceptionally productive for both tenderfoot and propelled merchants.

For the most part, all the aforementioned ideas are named win-win procedures yet with some percent of danger. These frameworks don't give 100% certainty however they do work and it is for all intents and purposes demonstrated by a great many brokers.

Profitable Binary Options Systems

Gainful procedures in choices exchanging are sure frameworks which are clear just to proficient brokers. Obviously, in such techniques, pointers and other diagnostic frameworks that require certain information and abilities are utilized.

Profitable techniques showed up a consequence of straightforward systems improvement implying that they are redesigned and modernized. Yet nobody can say that troublesome systems are dependably win-win. They can be a misfortune for the individuals who don't see how they function or be misfortune making all alone.

Binary options 24 here we post the most recent news and also data about individual specialists, winning techniques, exchanging flags and tips.

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All About Share Market Trading

What are shares?

It's a means to own a company.

The definition of 'Securities' as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government.

What is Share Trading?

Shares trading refer to buying and selling of company shares - or any derivative products based on company stock - with the motive of profit earning.

Prerequisites for Share Trading

• We need to have DP(DEPOSITORY PARTICIPANT) account.

• We need to have a Trading account

• And of course money

How Trading Happens?

Companies get themselves listed on popular stock exchanges like NSE, BSE

Interested traders using terminal provided by their brokers trade on those shares.

Online Trading participants

• Investor- Participates through website of brokerage using internet and computer.

• Brokers- they contact each other through trading terminals and they also find who is interested to buy or sell shares.

• Stock exchange- It facilitates transactions through its servers. Most dominant stock exchange in India are NSE and BSE

• Registrar of Company-It is a government body that maintains records of all shareholders and updates database changes whenever ownership changes.

• Depositories- It includes depository participants which stores shares in electronic format.

• SEBI (Securities Exchange Board of India)- SEBI is a government body which regulates financial markets and looks into Investor complaints against companies.

Kinds of Trading

Intraday trading

Delivery based trading

Intraday Trading

Intraday trading includes buying and selling of stocks within the same trading day. The stocks purchased in this kind of trading, are not purchased with an intention to invest, but for the purpose of earning profits by analysing the movement of stock indices.

Deliver based Trading

Delivery based trading means buying shares and holding them for certain period of time is called delivery based trading.

In this method you have to place your buying request through your broker and pay for the current price of the stock. Once your request is executed the stocks that you have bought are deposited to your DP account. In this process you have to pay the full amount of the stock price. Once the stocks are deposited to your account you can then sell the stocks or hold them for as long as you want.

The delivery based trading at the cash segment is the simplest way of trading and the risk is comparatively lower.

The biggest advantage of delivery based trading is that you do not have any time limit for selling the stocks. But the disadvantage of delivery based trading is that you have to pay for full price of the stock and the brokerage is higher than other forms of investments.

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Your Stock Broker Doesn't Love You

A good while back I took a wonderful training class on how your phycological makeup effects your financial and other life decisions in major ways. I loved what I learned and have applied it in many aspects of my life but one thing the instructor said has stuck with me all this time and I still repeat his words to my clients all the time. In talking about Financial Advisors he asked, "and he is doing all of this work for you because he loves you?" He was making the point that peoples motives are not always as well intentioned as we might think and that certain relationships are more adversarial than we may realize.

Unfortunately, this adversarial relationship is most dangerous when it is veiled or disguised so well that one party has been duped into thinking that this was never the case. One place this can happen is with your Financial Advisor. The truth is not all Financial Advisory relationships are set up the same way. The investment industry evolved so that different advisory relationships are governed by different sets of standards. The big problem is the average investor doesn't know the difference and the Big Brokerages would love to keep it that way.

Some financial professionals called Registered Investment Advisors work for a fee and are governed by the SEC and must submit to the Fiduciary standard. The Fiduciary standard requires the advisor to always act in the client's best interest. On the other hand, Stock Brokers are governed by FINRA and work for a commission and are held to a lesser measure called the Suitability standard and it merely asks that brokers sell investments they believe to be right for the client.

In regards to some new legislation that would require all financial professionals to adopt the Fiduciary Standard Barbra Roper the director of investor protection at the Consumer Federation of America had this to say, "The average investor would be appalled to see how hard some members of the financial industry are working to avoid acting in the best interests of their clients".

With Regards to these Brokers operating under the lesser suitability standard Arthur Levitt, former chairman of the US Securities and Exchange Commission (SEC) has been quoted as calling Stock Brokers, "good people stuck in a bad system". He is also quoted as saying that, "the system in which brokers operate is still geared toward volume selling, not giving objective advice". Strong words from the former head of the SEC.

The point is not to say all Brokers are evil and out to get you, but when you are trying to decide what to do with your life savings you might want to make sure the person you are talking to works under a system that is designed to put your interest first and not the interests of the Brokerage they represent or even worse themselves. One way you can begin to determine this is BEFORE you invest any money find out if your advisor is a Fiduciary or are they a Broker? How? Ask before you invest. If they tell you they act as a Broker even part of the time, then you can easily determine what their true motivation is. PS. They don't Love you!

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