Monthly Archives: October 2017

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Speculation vs investment: which is better?

Category : Strategy

When choose his own approach to the financial market, each manager faces a situation where he determines the fundamental data of his trading strategy. Thus, by what method the trade will be conducted, which risks parameters and money management should be used, and the choice of the time interval on which fix api trading will be conducted. All these methods and parameters determine the two most important approaches in trading – speculation and investing.

Speculative trading is based on the short-term opening of positions in various financial assets and it is accompanied by a short hold of transactions. Fixapi trader conducts an analysis of the asset and trades at a time of high volatility of the market to obtain maximum profitability, but together with this, the risk increases.

Investing consists in a comprehensive analysis of the financial asset and the opening of long-term positions with the goal to fix the full potential of the movement or trend. This approach allows us to diversify and reduce risks, but at the same time it has less profit potential than speculative trading.

A lot of traders lead a lengthy dispute, determining which approach is more sustainable or acceptable for use in the financial market. As for me, I believe that speculative trading should be conducted at the fix apiforex market. As for investing, you should allocate funds in the stock market and to a different group of assets in order to increase diversification. The main goal for investment is to demonstrate profitability more than the growth of key benchmarks, such as the S&P 500 and DowJones 30. The purpose of speculation is to make the yield twice as much as the investment.

The choice of which approach to follow is up to you. To facilitate your decision, I propose you to consider the key parameters of each kind.

Speculative trading:

  • Does not require a high threshold for entry. There is an opportunity to use broker credit shoulders to start with small amounts;
  • Must be based on a combination of fundamental and technical characteristics for trading on D1 (http://forexrobotsreview.us/2017/06/21/technical-indicators/). If we conduct intra-day trade, then one of these two types will be sufficient;
  • Trading operations are held for no more than a month;
  • The potential risk is proportional to the yield and may be half of the percentage of probable profit;
  • Can be conducted in a speculative market;
  • Lateral movements make this kind ineffective;
  • Can be based on the output of high-profile news;
  • It does not matter which assets will be traded. The main goal is to make a profit from any movement;
  • An algorithmic approach for fixing transactions is used under scalp or fix api arbitrage transactions (https://fxsocialnet.com/).

Investment:

  • The ratio of risk to profitability can be about 1/5;
  • Itallows you to save capital and earn on dividends (when it comes to the stock market);
  • Trading operations are carried out with a term of more than one year;
  • An algorithmic approach is not used, instead statistical and mathematical analysis for constructing models of the future value of a financial asset;
  • Return shows the best growth in the stock market;
  • Fundamental analysis is used to determine investment, and to open a trading position, a number of fix api traders use technical analysis;
  • A group of assets (funds) can also be invested at the same time, or vice versa, to diversify your risks and divide assets between sectors, core business, potential and a group of securities.

I hope these characteristics will help you make the right choice in favor of one or another way of trading. The main thing to remember isto go for both speculation and investment should be consciously having a ready trading strategy.

 


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The websites for displaying trading signals

Category : Software , Strategy

Searching for the investment opportunities in the financial market is a very long process. The analysis and the prediction about the asset may occupy more time than retention of thetrading position.If we are talking about the speculation trading, then being able to make a profit in this type of trading is a hard task as well. Therefore, each fix api trader creates specific trading strategies, which speed up the investment opportunities search. The traders also look for the competent managers, who are able to control the trading risks. In order to connect these two groups, the market participant establishes special platforms, where traders demonstrate their trading results, while the investors choose the most optimal options for the investment, based on these results.

These platforms can be in a form of websites, which are developed to display trading signals. They all have a similar algorithm:

  • The trader registers the trading account in the system;
  • The trading strategy, which is used by manager is displayed on a website;
  • The investors make a decision about connection their funds to the manager’s trading based on the data;
  • There is a particular price, which should be paid monthlyfor the connection to the signal;
  • The trading operations are copied from one account to another during the month;
  • If the investor is satisfied with the results, he prolongs the subscription.

This algorithm is inherent to the most trading platforms for showing the trading signals. So, if you are looking where to place your trading strategy for the fix api market or you are searching for a competent trader then I recommend starting from this websites:

  1. MQL. This resource has a huge and useful databasefor a trader. It allows placing the accounts for further copying them. You can set your signal and make it private, which means that the results would be available only for you. You can also publish the results in future. This way the investors can analyze the statistics which contains loads of financial indicators, such as the level of drawdown, mathematical expectation, the Sharpe ratio and recovery, the ratio of profit to losses and others. The more subscribers you get and the better level of trading you provide – the higher your signal will be in the ranking.
  2. Fxsocialnet (http://fxsocialnet.com/). This platform allows to learn more about the trading as well as to track the managers’ communication with the other traders.A large list of statistical information on trade is also available here. A feature of the resource is that if you trade with a robot and publish it as a signal, then this software can be immediately sold if you wish so. It means that the investor will see the results of the algorithm work, and if he gets satisfied, there is a possibility to purchase the program.
  3.  eTorro. This website is aimed to provide an effective communication between different managers. The trade signals are given more in the form of discussions with other players, rather than as the ready-made solutions. However, there is also a possibility to connect to the fix api trader. The trader’s transactions will be duplicated directly into your trading account. The algorithm is very simple and reminds of theMQL one. However, it has its own specifications. So, this resource can perform as a broker, placing the duplicatedfunds to the managers’ accounts.

These platforms were developed for the fix api traders. They can attract additional capital, while the investors can place itthere. It also allows getting a profit in the shortest period of time for both traders and investors. It is always up to you which website you want to choose in order to copy the trading signals. The trade specification is also based according to your wish, which allows controlling the risks (http://forexrobotshub.com/2017/09/05/minimal-risk/ ) if you already know the level of profitability.


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