Published on: 05 February 2019
Last Updated on: 08 August 2019
Once you have your trading strategy set up, your charts are in place, you’ve looked over the news and you’re ready to roll into today’s trading, what can you do to keep yourself on the right track? One answer is your broker. A good working relationship with your broker can help you stay in line with your trades. But once in a while, you just get an urge to go above and beyond your own trading style and strategy and throw money into a bad trade. Why would you want to do that and how can you stop yourself? Even though it’s contrary to any strain of trading wisdom, it happens. Here are some of the reasons it might happen to you.
Complete Boredom:
One of the biggest pitfalls of trading in forex is the boredom that you can experience between trades. As you’ve experienced, it can be painfully boring to sit at your computer waiting for a breakout or for some news event that will trigger some action. Patience is your friend here. Try talking yourself out of making a stupid trade by thinking about what you can do with the money that you’ll most likely be losing. Think of ways you can profit from that money rather than throwing it away on a bad trade that does not fit into your trading style. Since at this point you realize it’s a bad trade, you can think through the consequences and decide against it.
Financial Pressure:
Many a rotten deal has been the result of some sort of pressure. Pressure to bring in a quick buck due to increasing financial needs is one of those pressures. Keep in mind that trading forex is not like buying a lottery ticket where you throw your money into a cause that is surely going to lose. The odds are against you in either case. This is not a toss the dice game to find out if you win or lose. There is specific logic that goes along with trading to win. You’ve done your homework, developed your strategy and even tested it now. Don’t throw it all to the wind in one dumb trade. Trust yourself, have confidence in your trading strategy and continue to have a winning attitude rather than one of defeat.
Goals Out of Reach:
If you have set your goals for trading too high, you could be feeling frustrated. Don’t let that frustration lead you to take on a bad trade in hopes of winning. You have the experience under your belt to know that it is very unlikely that you will gain anything from a bad trade. Besides the actual loss in your trading account, it will cost you money in commissions to your broker. Lower your goals so that they are realistic enough that you can meet them, and then gradually increase the bar.
In short, trust the hard work you have put into getting this far and don’t throw it away on a bad trade!
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The traders invest money in making good profits in business. People hope for good returns to become rich in the Forex market. But, maximizing the probability of the profits cannot be done within a short time. The investors apply different types of techniques for increasing the chance of making money. By developing sound knowledge about the particular field, a person will able to get good returns from the market. There are several types of techniques for maximizing profits. These are being discussed here.
Check the Broker
The traders are required to select the right broker to continue the process of transactions properly. A trading platform is very important for the buying-selling process, and the broker provides this platform. So, when a person will going to choose a platform, he or she needs to make sure that the trading platform works better and it suits him or her properly. The broker charges a fee for their services. The business should choose the broker who prefers a fixed spread. This will help the investor to reduce the costs. You should focus on the facilities which have been provided by the broker.
Follow the Plan Properly
When an investor will able to control the risk, he or she will be able to get good rewards. For this, people have to execute the roadmap properly so that they can stay on the right track for accomplishing the goal. A person has to generate a proper plan and should backtesting this so that he or she can identify the workability of the plan. Considering the different phases of the Forex market, the traders need to develop a plan and also need to change some necessary things to adjust to the situation. People should develop a sense of discipline which will help them to apply the strategies accurately. But those who are involved in bonds trading must choose a high-end broker like Saxo. Usually, bond traders trade with a big sum of money. So, investing a big sum of money with an unregulated broker is a very risky approach.
Limit the Currency Pairs
Sometimes, people try to trade the different currency pairs to see which provides more profit. But, trading several types of pairs can force the investors to switch from one price pattern to another price patterns. As a consequence, the businessmen can miss the condemning period of the business field. So, to avoid the losses, a person tries to limit the pairs as one pair influence another pair.
Limit the Leverage
The investors should take leverage based on the account balance. Taking excessive leverage can create a problem for them. This can wipe out their account balance and can destroy the traders’ trading career. Many brokers offer moderate leverage which helps to keep a balance between the cost and the assets. People take excessive leverage in doing more trade and make more profits. But, the person needs to take the leverage which can control the risk and helps to get good rewards.
Maintain the Risk-Reward Ratio
The risk to reward ratio refers to the proportion between the stop-loss order and take-profit order. To get good results, a person should use these orders accurately. If people cannot spend lots of time in front of the screen, they can secure their current position by setting the stop-loss. An investor should identify how much loss he or she can tackle in place of making good profits. Some businessmen tend to take high risks, some tend to take low risks. This depends on the income and the choice of the businessmen. So, you have to decide what your own preferences are.
Every person wants to become rich in the Forex market to improve their daily lifestyle. But, people have to work hard so that they can secure their deposit and can able to increase the account money to do the trade for a long time.
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As a small business, you’ll want to make it your priority to begin creating revenue immediately when starting up. This can be difficult, but it will set your company in good stead for what the future brings. Ultimately, you cannot rely on funding and whatever you have in your pocket to get to where you not only want to be but also need to be. If you’re a small start-up, continue reading to find out four ways you can improve your Startup Revenue.
Try to have immediate cash flow
Whilst it is useful having funding to create anD attempt to grow your start-up, this money can be used rather quickly when you work out what you intend to do with it. With this being said, it is impossible to continue as a small business without attracting an immediate cash flow into the company. Pumping money into the business earlier on will provide you with a great immediate start-up, but it is essential that you make sure this money is spent on the right things and not useless items. It is possible to invest too, but your investments are not wholly reliable. Therefore, experts recommend that you attempt to sell and provide your goods and services from the get-go, to have some form of cash flow arriving promptly
Have business insurance
Another practice that will improve your revenue as a small business start-up is that of investing in business insurance. For some sectors, it is a legal requirement to have business insurance and experts are generally recommending that business owners invest in it anyway.
Your certificate of insurance is a great form of protection for both your business as a whole and your employees. This insurance could improve your start-up revenue as it could take care of your business and act as a safety net if something was to go wrong. For example, in the event that your premises were broken into two weeks into the operation, the insurance would provide some financial compensation for this.
Recruit within your means
Recruiting and hiring staff as a small business can be a daunting task, especially if it’s the first time you’ve tried it. It is important that you don’t attempt to run the entire business yourself as you’ll soon realize that your products and services suffer as a result. Hiring and retaining staff within your means is thus a fantastic way to improve revenue as a start-up and should be closely considered.
Use social media
The growth of social media has been an excellent tool for all businesses and has, at times, been a lifeline for smaller businesses. This is because these businesses essentially don’t have the funding to invest in digital marketing at this moment and therefore need to rely on free forms of advertising. As a start-up, you’ll save money by doing your marketing yourself and you’ll also increase revenue by connecting with a large audience online. This way, you’ll gain rapport with customers and clients as well as making money.
Consider these tips to improve your start-up revenue from the get-go.
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It is quite normal to have an extra cushion in life in the form of financial freedom. When you have enough money, your life becomes more comfortable. You have the freedom to buy the things that you desire most. And it is not a crime to dream big.
Many seek an alternative source of income to supplement their income. There are several ways one can achieve this, and the stock market is one such place. Many have invested in the stock market and have made substantial profits.
Considering the current economic situation, the need for this extra cushion is ever greater. The rising food prices, the Fed's increasing interest rates, and declining job prospects have raised concerns among many Westerners.
As more and more people explore the possibilities of making a quick buck, scammers are just around the corner, waiting for them to make a mistake and get scammed in the process.
Several scammers will impersonate stock brokers or brokerage firms; there are also some firms whose license to practice trading has expired or been revoked due to some legal issues. Thus, you, as an investor, need to be careful not to fall for such scams.
The binary options trading scam is one such financial fraud that has engulfed many victims in its path.
Binary Option Trading
Before we understand the nature of the scam, let us first understand what binary options trading is.
It is a type of contract between the broker and the client where the payouts entirely depend on the outcome, such as "yes" or "no." The price trend of a financial asset like a stock is considered, and a wager exists between the broker and the client that in the next five minutes, the price trend of that particular stock will either increase or decline. The one who loses the wager pays the winning amount to the winner.
For example, a $100 wager between the client and broker is that the price of X stock, which is trending at $45 per share, will rise or fall. The one who loses the wager pays off the winner.
Such wagers are instantaneous, and unlike other types of options available in the financial market, there is no way the client can avoid paying the losing bet. The contract ends when the stimulated time ends, and the loser pays the winner.
Binary Option Scams
Well, if binary options trading is so simple, you have a 50% chance of winning the bet, and you might think, "What could go wrong?"
Well, for one, the trading platform that scammers offer their clients to download is rigged. The rigging is achieved in two ways: either the entire platform is rigged or there is a delay in the data that is streamed.
Generally, the trading platforms offered by brokers or brokerage firms relay real-time data on price fluctuations in the stock market.
The trading platform provided by Binary options scammers could cause a delay in the data streamed by the stock market. Thus, scammers know in advance about the price moment and can thus ensure that every bet that is placed is in favor of the scammer.
In the second way of scamming the victims, scammers provide their victims with a completely rigged trading platform. In this case, the real-time data is not streamed from the stock market; rather, it is completely controlled by scammers.
How do scammers keep their victims enticed?
Scammers are smart; they know that if they keep on winning every time, their victims will lose interest and stop playing their "rigged game." Scammers will ensure that their victims initially win, thus promising a false sense of security that they have the "ability to win big."
Thus, once these scammers start investing more, they start to lose. They invest more because they are afraid of losing money. The false sense that "this is the last bet, the one bet that will recover all the lost money," makes them invest more while increasing the amount on successive bets.
A few genuine brokers and brokerage firms allow binary trading; they are regulated and certified by the regulatory authority, which ensures clients' interests are protected.
How to spot bogus brokers or brokerage firms offering binary options services?
Among all the complaints that are being received by the SEC, or Securities Exchange Commission, there are three common categories where victims were ripped off.
1. Denying reimbursement or paying off clients
Once clients have opened trading accounts with scammers, they will deposit their money into their trading accounts. As and when the clients are falsely encouraged by the scammers to invest more to win more. Once these clients have had enough of the losses or wish to withdraw their winnings from their accounts, these scammers will not allow their clients to withdraw.
Since these Binary options scammers are based in another country, there is little that these clients can do apart from calling their customer service center, which will eventually block their contact numbers.
2. Identity Theft
Under the guise of providing binary options services, scammers will collect all the sensitive data from their victims. These scammers will collect their social security numbers, bank account numbers, credit card details, passports, driver’s licenses, and so forth.
3. Rigged trading platform
Many clients who fall victim to bogus brokers or brokerage firms finally admit that they have fallen for a scam where they suspect that the trading platform was rigged. They also stated that the time left until the expiration of the winnings may be extended arbitrarily until the trade ends in a loss.
Final thoughts
The United States has legalized binary options trading, and as mentioned earlier, there are a few genuine brokers and brokerage firms regulated by regulatory authorities that are either private or government-owned.
Since almost all brokers and brokerage firms advertise and can be contacted online, researching these firms is a must to avoid falling for binary options scams. Use caution if any broker or brokerage firm is offering binary options services at competitive prices. It's possible that they are scammers.
Regulatory authorities offer protection against scams and fraud; they protect the interests of clients of a broker or a brokerage firm. So when a broker or brokerage firm goes rogue, these regulatory authorities ensure that the client's interests are protected.
Always check that the online broker or brokerage firm is authorized and protected by a renowned private regulatory body or a government-owned entity.
The binary option scam has also engulfed the cryptocurrency market; thus, be cautious if a binary option is offered in the crypto market.
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