Page 208 – XTrade

The Difference between a Casino and a Forex Trading Platform

Forex Trading Platforms Offer Immense Opportunities through Skill Not Luck

Casinos operate various games, most of which offer little chance of success to the player. Forex trading platforms on the other hand offer much more to traders.

How Forex Trading Platforms are Better than Casinos

While it’s true that casinos operate various games. All but a few of these games are games of luck and not skill. It’s only games of sophisticated skills, such as poker and craps, where the player may win consistently. All other casino games offer low probability of success, and the player is doomed, sooner or later to lose all their money. Forex trading platforms are very different to casinos. First of all, casinos are closed circle systems, and are very small, offering small earning potential. The forex market on the other hand is much bigger. So much more that is like comparing a swimming pool to large lake. The forex market is a massive system. And is not really a closed one because it is linked to the real world, global trade and to the entire financial system. Forex brokers facilitate trading in such ways, that even a small retail trader can have full access to the currency markets. Moreover, the small trader stands an equal or higher chance to win, over large size traders. This is because there is no limit as to how much the small retail trader can improve their trading. And because the forex market is so liquid, all their trades can be handled efficiently at almost any time.

Forex Trading Platforms Offer Real Opportunity

Forex trading platforms have enabled many traders to become millionaires, or at least better off financially. Casinos on the other hand produce too few millionaires and successful players. And in reality casinos could never offer the opportunity for success that forex trading platforms offer. It’s all because of the massive difference in liquidity and probability of success. Forex trading strategies are based on skill and proprietary analysis methods. The vast majority of people who frequent casinos do not have equally good skills. And actually attempt to combine social life and fun with making money. And they soon find out that it doesn’t work. And one of the biggest obstacles is noise. Casinos are too noisy and distracting places, where it is impossible even for great minds to focus on specific tasks. Casinos know this, and use it as a tactic to distract successful poker player by offering them free alcoholic drinks. All in an effort to make even these few profitable players lose their focus.

Conflicts of Interests

Casinos inherently operate on a profound conflicts of interests basis, and big consistent winners are simply not welcome. Online Forex trading has its own conflicts of interests here and there, especially in trading between large investment banks. But the market itself is so large, liquid and open, that the small retail trader trading up to $100 per pip, will not encounter any issues. In fact, small retail traders can trade for years and years through reputable CFD brokers without encountering problems. Except for the increased volatility which the market naturally has. But even during those hard volatile times, only day traders may encounter problems. Slow-pace forex traders can get around volatile and high risk times without any problems at all. And because of these proven facts wise forex traders find ways to maintain a probability advantage, always through skill and focus, and not through luck.

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How to Stay Ahead of the Game with CFD Trading

Online CFD trading is taken very seriously today, as more and more wise traders look to improve their risk-reward figures through the hidden benefits of CFDs.

Online CFD Trading Does it Better

Online CFD trading offers much better trading conditions than any other method of trading. And this is because of liquidity and even the very ability to trade, which is sometimes lost in the classic trading instruments. Online CFD training shows new traders the tricks of the trade. And that the real benefits of CFDs are liquidity and linear pricing. Because that’s what profitable trading really boils down to. CFD trading educators are trading veterans coming from all kinds of markets and instruments. They settled with CFDs because they were quick to spot the real benefits of CFDs.

Online CFD Trading is Ideal for Small Retail Traders

Online CFD trading allows you to trade the markets effectively, at unmatched liquidity, and without giving away your strategy for anyone to see. This is not the case with large, multi millionaire traders, who have to trade futures or options. Their trades, bad and good, can be revealed through their exposure to the market. And not only that, but also Futures and options are not linear instruments, and tend to move in all kinds of ways, resulting in poor profitability on the good trades. Options in particular are highly inefficient. Very often, you will find that the underlying stock or currency has to move too much, just for your trade to break even. In many cases, as much as 50% of the market move is required just for the option trade to reach the break-even point. CFD traders do not have this problem, they can catch the entire move, 100%, and profit from it every cent of the way. Wise CFD stock traders however pay attention to option pricing. And they have found that Options can be used as indicators on stocks that are about to move to the upside. Some good CFD trading courses teach their students how to use options as indicators on their stock trades, and how to even time their CFD trades for exiting at the highest high. The principle behind this strategy is that stocks which are about to move to the upside, will have increased premiums on their out of the money call options. Just by comparing options of similarly priced stocks, the wise CFD trader can figure out what the market’s suspicions are. A stock that is about to break out will have an evidently higher premium on its out of the money call option. All the wise CFD trader has to do is go long that stock from their CFD trading account. And they will stand to catch every cent of the stock price movement, resulting in 100% more profit than the average option trade.

And There is More…

Online CFD trading can also be used in advanced hedging strategies. Many veteran traders use CFDs today, both in the intended part of the trade, as well as in the hedging part of the trade. Despite their deceptively simply linear pricing, there are two more parameters the trader can set on CFDs. These are the trade size and market level. Just by adjusting these accordingly, trading risk can be made asymmetrically smaller in relation to reward. And if you still wonder how does CFD trading work? And how can it offer so much more than classic instruments, you only need to recall that CFDs were made for the small size retail trader. And they do the best to serve their interests. And small size is not by any means small, since CFDs offer their unique liquidity for trading up to $100 per pip / market point. And that’s a big limit by a retail trader’s perspective. CFDs bring you the best of the financial markets, while filtering out much of the biggest negatives.

How the Olympics Affect the Economy and Your Forex Trading

The Olympic Games impact the economy as well as the reputation of the host country. If the perceived risk improves, online forex trading volatility goes down.

Online Forex Trading Takes Regional Investment Risk into Account

Online forex trading performs a reality check on all currencies. And risky economies tends to have more volatile currencies. The Olympics help the host country by stimulating the domestic economy in the medium term. But more significantly by improving the image of the country in the long term. Hosting successful Olympics proves that the country in question is safe to visit, safe from terrorists attacks, crime etc. And this improves popularity among tourists who want to visit the country later. As far as investors are concerned, they also see stability and safety as a huge advantage and they may consider investing in that country. The fact is that market risk, as perceived by the financial markets in terms of volatility, goes down. And as a result the currency of the host country is expected to become less volatile in the future. And this will be evident in online forex trading. Forex brokers take volatility into account as all markets become more volatile as risk increases. When risk goes down, volatility goes down, and in the case of variable spread forex brokers, spreads become smaller too.

Online Forex Trading Benefits from Successful Olympics

Online forex trading benefits from successful Olympics, as well as every forex trader. Not that volatility is bad, volatility is good in most cases. But currencies that lack reputation and are seen as unstable and perhaps as too risky, do need to have their reputation improved. Excessive volatility is not good because a market that is too volatile can do all kinds of crazy things, out of the blue. More importantly it tends not to respect support and resistance levels. So moderate volatility is better for everyone who wants to trade forex, the market is risky enough even at moderate volatility. And volatility will never ever go below a certain level, because the market naturally requires it. So all that we can do to reduce excessive volatility will make the financial markets function better. Just like the advent of derivatives in the 70s made commodity markets better. And the good effects are still with us today.

Long Term Economic Benefits

It is difficult to assess the long term economic and social benefits that the Olympics bring to the host country. But first and foremost it is the ultimate proof that the country in question becomes safe to visit. And while tourism is not the main foreign exchange earner in most countries, it is a significant one. Then it’s about the real estate market, which also gets a seal of approval on safety. Nobody ever wants to buy a house in a country that has no police and professional security forces. So the real estate market does benefit in the long term. These are long term effects, but still matter to the medium term oriented forex trader.

Top Successful Strategies for Online Currency Trading

‘Online currency trading comes with many difficulties and pitfalls. However determined traders know how to handle this risk, and tackle one problem at a time.

Online Currency Trading is Similar to Treasure Hunting

Online currency trading is very similar to treasure hunting. An endeavor which is very tricky, often costly, and eventually enormously rewarding to those who persist. And what prevents most participants from finding this big treasure is all this risk, and the fear of failure. In the case of online currency trading things can be even more deceptive. Because many new traders think they can achieve that huge success within their comfort zone, without making extraordinary efforts. And that’s not the case. Despite all the technological advances today’s beginner trader has no real edge, no advantage over the competition. All the popular trading tools available in the market, are also available to anybody else. Hence no real advantage lies there. The real advantage lies in peculiar research methods and tools. Something which all determined treasure hunters figured out, early in their missions.

Top Strategies Used by Determined Traders

Online Currency trading in today’s world, does require good knowledge and peculiar skills. First of all, all wise traders trade the forex market through CFD trading accounts taking full advantage of the unique benefits that CFD contracts offer. A good CFD guide helps traders see above and beyond classic trading, and into new largely untapped opportunities. Today’s wise CFD traders focus more on the inner workings of a financial market, and not so much on price momentum. Good trading strategies are the ones that look beyond momentum, and beyond public opinion, such as news and economic reports. There is very small predictive value in all this misleading information, just enough to fool you and make you think that you should keep following it. Just like treasure hunters, there is no a single successful treasure hunter who ever found a piece of gold based on popular beliefs and maps. And the more popular a methodology is, the more wrong it is expected to be.

Online Currency Trading is Intimidating and Challenging

Forex trading is so intimidating, especially in the beginning. That many traders are psychologically broken and quit trading within six months or so. And usually, the ones that do make it past the six months stand a very good chance of trading profitably later in the future. We hardly every hear stories of forex success, because most successful traders are secretive and don’t want anyone to know. They are also humble, and they don’t want to attract attention and compliments. After all, it is humility and focus that keeps them winning. Despite that, there are CFD trading stories of small or large success, by various traders. But many successful CFD traders remain hidden, and never even discuss the nature of their trading. The strategies involves are just as secretive and unusual, and have little in common with popular strategies. And in the case where extensive numerical analysis is involved, there is nothing to discuss anyway. Because it’s all about numbers and relations between different markets, which are difficult to describe in words, and possibly even difficult to spot on a market chart. But there is an underlying logic. And this logic kept them believing that they could overcome all adversity and intimidation until they traded successfully.

The Golden Rules of Online CFD Trading for Real Success

Online CFD Trading at its Best

Traders engaged in Online CFD trading can do all kinds of strategies, from day trading to long term investing. It is good to know which is best for each trader.

Online CFD Trading for Stocks

Online CFD trading in the case of stocks could be implemented in various ways. The smartest and most reliable ways to trade stocks. Are the ones where market information is as meaningful as possible, and the least ambiguous. Day trading stocks based on charts alone is a popular but highly misleading way. Because charts and chart based indicators are highly ambiguous. Very few CFD trading courses teach good strategies. These that do teach peculiar good strategies combine market charts together with some other indicator. The best proven indicators are stock option premiums, and level II quotes. Stock option premiums can hint stock price direction over the next several days or weeks. And so they are good indicators for the longer term trader. Level II quotes on the other hand contain all the information needed to figure out the auctioning action going on, on the underlying stock. And this can be used in day trading specific stocks, quite successfully. Attempting to day trade stocks any other way, will almost certainly lead to failure. Because charts can fool traders very easily. Level II quotes on the other hand provide crucial information about supply and demand. And traders combining level II quotes and basic chart information, such as support and resistance, get to see the real action. Level II information may reveal false stock price breakouts in ways that charts alone can never do. The wise level II CFD stock day trader is at enormous advantage. Because CFDs allow them to capture the ensuing price moves very fast, and very efficiently. Level II strategies are based on logic, the same logic that can be used to monitor all kinds of live auctions. Auctions of works of art, antiques etc. Except that CFD stock trading is 100s of times more affordable than these other auction trades.

Online CFD Trading of Stocks Can Be Extremely Profitable in One Case

Online CFD trading of stocks, through the level II day trading approach changes everything. While classic day trading, based on the naive idea that charts alone are enough, offers a low probability of success. Perhaps as low as 5%. The level II stock CFD day trading approach together with basic charts and LSS pivots, offers a probability of success of 70% or more. Therefore it really is possible to make good and consistent profits. All that is needed apart from the strategy, is courage and a strong desire to be different than other traders. Even the level II domain of insightful information allows for widely diverse sub-strategies and methods. But the basic principle is simple, for a stock to go up, there have to be more and more buyers and offers to buy. For a stock to go down, there have to be more and more sellers, and more offers to sell.

Learning about CFDs Wisely

Online CFD training available is more than enough to cover the needs of a level II stock trader interested in doing it all through CFDs. Online CFD trading is not complicated. And also the retail CFD day trader actually has unique liquidity benefits over day traders dealing through futures, or stocks through direct market access. It’s simply a matter of liquidity, the CFDs market is smaller than the direct market access. Because liquidity always flows from big to small, but not from small to big. It’s a market fact. Those wondering how how does CFD trading work? Only need to learn the basics of CFDs, and then look at the liquidity benefits in particular. Liquidity and linear pricing are the biggest benefits and are often not even mentioned in most CFD beginner handbooks. But these two benefits are even more important than leverage, because they are unique to CFDs!

Trump or Hilary – Who is Better For the Future of Online Trading

Online Trading Platforms and the Future of Trading in the US

The US presidential election of November 8 is seen as crucial by US citizens, on many matters. To traders it’s about access to CFD online trading platforms.

The Future of Online Trading Platforms and Income Tax in the US

US citizens worry about terrorism, immigration control and so much more. The upcoming presidential election is very likely to be won by republican candidate Donald Trump. US traders on the other hand also worry about possible negative changes in the way that the stock market works. Or in the way that profits made from financial trading are taxed. Given that taxation is already heavy in the US, and capital gains tax (CGT) is applied to many forms of trading. And from that perspective, US traders are very like to vote for Trump. Because the republican party is more supportive to free enterprise and capitalism. On the negative side, the republican party is less likely to engage in trade cooperation with former enemy states, such as former President Clinton did with Vietnam. The idea is however that most former enemy states are no longer real enemies of the United States. As today’s threats to national security come from terrorists, and not formal states. To traders, the change may be for the better because the Trump administration may allow the Securities and Exchange Commission to grand licenses to CFD brokers, to actually allow US citizens as clients. So far US citizens are not allowed to trade CFDs, not even through regulated EU based brokers. And these traders are at a severe disadvantage over their European and Asian counterparts. These traders dream of CFD online trading platforms and their benefits. On the taxation front, CFDs will not be exempt from CGT, but that is of little concern to traders who know how to trade profitably. The benefits of CFDs far outweigh tax issues. Moreover, other trading instruments in the US are not exempt from CGT either.

CFD Online Trading Platforms and Missed Opportunity

US commodity traders see CFD online trading platforms as a forbidden fruit. And they are indeed just that. Because they get to see how EU based CFD commodity traders perform in real action. They simply have an unfair advantage over US based traders, hence the jealousy is reasonable. Commodity and forex brokers based in the EU and elsewhere will have a chance to accept US citizens as clients, only under a republican US president. That is a no brainer. The democrats have been hindering the potential growth of unrestricted financial trading, even under the tightest regulation. EU based CFD brokers are well regulated and well run, and yet are not allowed to accept US based traders. As soon as the legal issues and tax issues are resolved, the small retail US trader will be able to trade CFDs. Just like all other traders in the modern financial markets. And the US has always been a leader in financial trading evolution. And it was under a republican government in the early 70s, that derivatives were introduced in the commodity markets for the first time ever, in the world! As a way to prevent commodity prices and crude oil in particular from ever rising to extreme levels again.

Trump is Best for Commodity Traders and for All kinds of Retail Traders and Investors

Every forex trader and investor wants the best they can get in the markets today. And democrats have failed to deliver on that. While democrats have been good in other aspects of the economy and on social issues. Real capitalistic society requires less government support, less subsidies, and for entrepreneurs to have the motivation to take risks. All entrepreneurs and traders take risks, so they want to be taxed less, and to operate on an even playing field with the rest of the world. The much desired advent of online CFD trading in the US will give retail traders and investors that lost advantage. So their online trading platforms will be offering so much more than they do today.