A skill that matters

For many there is no doubt that money management is one of the best skills to develop to be successful in Forex. If I had to choose between an operator who had money management skills but nontechnical and one with excellent technical knowledge but without proper money management, safely I give my money to the first, always. Perhaps it is inconvenient for those who wish to convey knowledge of Forex, express this view. However, in all circumstances, we prefer an operator with sufficient technical knowledge and sufficient knowledge of money management. All we prefer, in the first instance, to achieve excellent technical expertise to develop the ability to predict market movements. This would be the ideal and good work on it. But the truth, the truth is that talent is not what produces profits in the long term. That honor belongs to development and skill of money management. It is a simple strategy to be successful: manage your account, your money, so to be able to withstand losses not let him out of action. Losses being part of the business, you must handle so that we can recover and move forward. New entrants care how much can earn; advanced traders deal as can lose! Successful traders take minimal risk and keep your losses small. They know reject transactions that threaten large amounts of capital no matter how promising the transaction. They cut losses planned way in advance. Operators generally lose, they risk more than they should, let losses run in hopes that prices will rebound and there is the beginning of the disaster. This is not to operate to operate nor seek "the business of life", the operation that you become rich. These are operations that produce losses than gains so making equal amount of winning-losing operations, the result is positive, for example. The secret is to perform only the operations that have a high probability of success. Losers operators do not have enough patience to wait for the opportunity and they begin to risk without discretion, on exposed and do not know where to go. Winners operators are patient, waiting for the opportunity of easy gain, conserve and care for the capital. When that time comes, they take advantage. Point. This is the plan. You can not control the movements of the market. You can only control your emotions. You need to be disciplined, patient ... have control of your attitude and your account. And this is also learned.

The attitude of a novice trader facing the charts

I have known many cases of people who try exactly the same strategy of another trader but do not have the same result of this ignorance and wonder why?   Is clear and indisputable that the attitude we take towards the market is critical to the success of our career, an operator must have a similar attitude to that of a psychopath: quiet, calculator, fribola, nerves asero, sure of what he does but others paresca them crazy, facing each market must be a murderer full of pips, corner the market in a very sagas.   When this attitude is acquired is very easy for any operator to succeed regardless of the method applied, it will not have the need for doubt or fear, there is the scheme will be if or will not, will be fully consistent with what is done and if there is loss or gain is equal, the intention is executed according to the logic is not the feeling of the moment regardless of the consequences, because now everything is coldly calculated, the stop and take profit stood equally in accordance with logic not with emotion that produces the expectation of will win or lose ?.   That's when the real race the trader begins, an operator must be a psychopath market, liquidating before take the next step, detect, corner him without giving out, put infallible traps and for this you need to study their behavior, their way of reaction its time of entry and exit, their strengths and weaknesses, this needs adaptation and practice and may be corralling the price, indicators are just a weapon but of no use if you do not know how to use on the victim, such as using a bow and arrow on someone wearing armor and a shield, so it is with the market when there is to know about what else moves, how it moves, how it reacts ...   Indicators are not more than a help, they are not essential, so my recommendation is to begin to understand without indicators, candles this whole pattern we need to study a whole, if we let all indicators very likely will the victorious market, its price they always react first.   The market is one, you have to study, understand it to take the lead.   Note: The example of the psychopath is only an analogy with the teaching point has nothing to do with learning incentives to operate outside the market.

The time in the investment

Sociological studies and the simplest observations can set the current consumer society as more demanding, suspicious, maverick and impatient. At the same time, reducing the life cycle of products is spreading to different sectors. All this is definitely affecting investment products.

These characteristics in the financial world can be seen in the search for high returns even though it may entail more risk. Some time ago the most common investors were the shareholders of large companies. While aimed the same as today, ie profitability, betting on a firm, they undertook and part of a project could be seen. Some of these companies were considered safe investments chosen were those that could never break and / or were led by senior and known positions, sometimes related to politics. Some of them are now in bankruptcy or dissolution processes.

Distrust, partly generated by the financial crisis and these events unthinkable a few years ago, makes no longer sufficient a tiny but steady annual dividend, but today is better than tomorrow, again regardless of the risk. Next to the conventional, we can now draw a new type of investor. This can deposit funds in the morning from a mobile application to invest in an asset with strong volatility but with clear behavior and close positions at the end of the day or short term.

These factors explain the growth of leveraged products such as CFDs (introduced in Spain in 2007) where the simplicity of investment, intuitive platforms, low fees and a possible high short-term returns are the key factors.

If the weather has always been a major player in the central pairing of investments, even today it overestimates or puts it to the other two factors, reaching to evaluate an investment opportunity trinomial: Time-Risk-Profitability.

What is Bitcoin? How does it work? Where do you buy it?

In the mouth of all, Bitcoin, the currency of the Internet, monopolizes praise, criticism and suspicion in equal parts. With numerous advantages over traditional payment systems, Bitcoin presents, like any self-respecting currency, a somewhat dark side that caused, for example, Thailand has banned Bitcoin transactions within its territory. A first step is expected to give other nations.

But first we need to answer some questions, which will be the reason why you come to this article: What is Bitcoin? how does it work? Is it legal? We answer, simply, to these and many other questions about Bitcoin, the currency of the Internet.

What is the origin of Bitcoin?

Bitcoin has its origin in 2009 when Satoshi Nakamoto, pseudonym of one or more persons, decided to launch a new electronic currency whose peculiarity is that only served to perform operations within the network of networks. Bitcoin refers to both the currency and the protocol and the P2P network on which it rests.

So what is Bitcoin?

Bitcoin is a virtual and intangible currency. That is, you can not play in any of its forms as with coins or bills, but can be used as payment in the same way as these.

As happens with the money we have in our bank the Bitcoin increase or decrease our personal account as we make income or expense, the only difference is that there is no possibility of monetizing, as when, for example, withdraw money from a ATM.

What are the peculiarities that make it different from Bitcoin?

Undoubtedly what makes it different from Bitcoin over traditional coins and other virtual means of payment as Ama zon Coins, is decentralization. Or what is the same, Bitcoin is beyond the control of any government, institution or financial institution, whether state or private type, such as the euro, controlled by the European Central Bank or the dollar by the Federal Reserve USA.

In Bitcoin control is performed, indirectly through their transactions, users themselves through exchanges P2 P (Peer to Peer or Point to Point). This P2P structure and the lack of control makes it impossible for any authority to manipulate their value or cause inflation producing more.

In fact, production and value is based on the law of supply and demand. Another interesting detail is that Bitcoin has set a limit of 21 million coins, which will be reached in 2030.

How much is a Bitcoin?

As we have indicated the value of Bitcoin is based on supply and demand, and is calculated using an algorithm that measures the amount of movement and Bitcoin transactions in real time.

Currently the price of Bitcoin stands, euro up or down, around 475 euros (to February 13, 2014), although this value is far less stable since Bitcoin is ranked as the most unstable currency forex market .

For example, analyzing the period between August 2012 and August 2013, it reached a peak value of 134 euros in April 2013 although early February its value was around only 16 euros.

In fact, its value has increased 600% in the first three months of 2013. Details by which many experts think that this is a tremendous bubble filled with speculators who, sooner or later, will eventually explode.


Source: bitcoin.de

Here are some updated tables, the first shows the historical evolution of Bitcoin, from its inception until this year 2014. As you can see, its value has increased exponentially. The second shows the evolution from early 2014 until mid-February.

bitcoin historical evolution
bitcoin evolution in 2014
Bitcoin has risen so much that has come to take the case of an American who spent $ 27 in 2009, he forgot them, and when it was agreed four years later, had this absurd, so bulky, amount of money.

How do they work?

Bitcoin to operate only have to download any of the available applications, there are multiple alternatives to any operating system, either desktop or mobile as iOS or Android (or multibit Bitcoin Wallet, are just a few options).

With them you can create your purse Bitcoins that simplifying, consists of a private key associated with a public key with which to perform operations. Thanks to them, the Bitcoin can not be forged and ensure that user to user transactions are conducted safely.

Bitcoin Wallet
How to get Bitcoin?

There are three ways to get or buy Bitcoins. The first, and simplest, is accessing any of the markets Bitcoin as MtGox or Bitcoin.com that allow conventional money exchange, euros or dollars for Bitcoin.

Another way is the exchange of goods with other users, ie the purchase / sale of life but paying with Bitcoins. The last, and strangest, is the "mining". This practice is to use part of the resources of our computer in solving extremely complex in exchange for Bitcoins mathematical problems.

Currently about 25,000 people perform this task and about 25 Bitcoins are generated every 10 minutes, so this practice to get virtual currency is becoming more complicated, unless you belong to one of the colonies of miners circulating on the network.

Is it legal Bitcoin?

The legality of Bitcoin is simple to summarize "Bitcoin is legal in that place which accept as payment in a transaction", so easy and simple. Being out of control of any institution there is a legal vacuum on it.

Moreover, being anonymous and encrypted transactions between two users, they are free of any commission or tax such as VAT.

What is the dark side of Bitcoin?

Decentralization and anonymity, have made Bitcoin in the preferred fraudulent transactions such as the sale of drugs or money laundering payment. It is also the means of "official" pay lowlife Internet.

This has made government institutions Brigade US economic crimes (FinCEN) have stopped making "blind eye" and want to implement regulatory measures for operations with Bitcoins.



Wordpress
But not all not all uses are alegal. Wordpress, for example, can pay in store with Bitcoins and it seems that the first ATMs that work with this virtual currency are very close.

It's time to trade with Gold?

 

We are beginning the month of March and we realize that there was a funny made in February: Spot gold had a wider range in that only comparable month that recorded in August 2013, which was two and a half years. It seems as if the volatility has returned to this market, and volatility means that traders have a good opportunity to make some money!

Most Forex brokers offer trading spot gold, or even monthly futures contracts gold, both equally good when it comes to speculate in gold. That means that, whatever the broker you use, the option of negotiating with gold will be there when you want.

As life seems to return to the gold market, we'll see if it's really time to trade the precious metal.

Rational Trade Gold

Gold gives a special feeling to many people when purchased. If that is the case, then you should try to think of gold less passionate way. Think only about price fluctuations, not the metal itself; try to imagine that you are buying or selling something opaque like aluminum! Unfortunately, many traders lose their heads for gold and begin to negotiate rationally rather than emotionally

Since the US dollar was detached from the gold standard in 1976, the precious metal has floated freely against the dollar. Gold has made two surprising upward trends against USD since: the first at the end of 1970 and then again from 2002 to 2011, when it went from $ 275 per ounce to more than $ 1.900! Many economists believe that gold functions as a "store of value" alternative to fiat currencies like the US dollar, which are entirely based on debt, and is forced to increase in value during periods of relative currency debasement, as might be happening now. If so, it might be time to trade gold.

Historical facts

I have always believed that traders can make money in the markets more easily by following trends and the proper use of stop loss. In Forex, a method that has worked well in recent years to trade currency pairs including USD is trading on the price direction of 3 and 6 months, if not conflict. Although gold against USD is often considered just another currency pair tends to move faster and stronger than the Forex currency pairs. We can see this by looking at the results of a test that used historical data from 1998 to 2014. In the test, gold is bought or sold on a weekly basis and held for a week, depending on whether the price at the weekly opening was more higher or lower than it was 6, 3 and 1 month before.

The results are shown in the following table:


Gold Historical Data

Analysis

There are two key points that are revealed by this test of historical data:

1. Going short on gold is a statistically problematic and was not profitable operation based on the drive, regardless of the period in retrospect used.

2. Going long on gold was profitable in any historical period, but the best results were achieved by operation when the price was higher than it was one month, 3 months and 6 months; that is, when the pulse was extremely strong. This differs from the Forex currency pairs, which tend to be oversold when the momentum is very strong.

If we apply this analysis to the current market situation in terms of gold, you can see that this is definitely a good time to trade gold as its price is above where it was 1 month, 3 months and 6 months ago. This is the kind of market situation that produced the best results when applied to historical data.

Day Trade Gold

Day trading gold can be very difficult in short periods of time, and this differs greatly from Forex, although there are some similarities. The price discovery process can be very difficult to gold, because nobody really knows how much gold bullion held by banks. In addition, the spread in the gold trade is relatively higher than in the major currency pairs, so it will cost you more proportionately. For these reasons, it is generally going to be much easier to negotiate gold in the time frames H1 or H4.

An interesting aspect about gold that has been observed is that there is a statistical pronounced tendency in which the price falls around the time of opening of London and up around the time of opening of New York. Therefore, the opening of New York could be the best time to trade gold now.

conclusion

Technical evidence suggests gold is in a strong uptrend that probably will not persist, especially as the price is above where it was done 1, 3 and 6 months. This means that it may be a good time to trade gold at this time. Entering gold transactions over when a stop loss to justado is available and aiming to take profits on risk ratios of maybe 2 or 3 to 1, while a part of the operation is allowed to continue running could be a strategy successful trading.