SUCCESSFUL FOREX TRADING FOR RETAIL TRADERS

 Forex trading is a high-risk, high-reward investment strategy that has become increasingly popular among retail traders. With the rise of online trading platforms, it has become easier than ever for anyone to enter the world of forex trading. However, the volatility of the market and the complex nature of the trading process make it challenging for beginners to navigate. In this article, we will provide a comprehensive guide on successful forex trading for retail traders.

Understanding the Forex Market

Before we delve into the strategies of successful forex trading, it is essential to understand the market. The foreign exchange market is the largest financial market globally, with an average daily trading volume of over $5 trillion. It operates 24 hours a day, five days a week, across different time zones worldwide.

The forex market involves the buying and selling of currencies. Traders aim to make a profit by buying a currency when its value is low and selling it when its value increases. The value of a currency is determined by various factors, including economic data, political events, and market sentiment.

Developing a Trading Strategy

The key to successful forex trading is to have a well-defined trading strategy. A trading strategy is a set of rules and guidelines that a trader follows when entering and exiting trades. A successful trading strategy should have clear entry and exit points, risk management techniques, and a way to measure performance.

There are various trading strategies that traders can use, including day trading, swing trading, and position trading. Day trading involves opening and closing trades within the same day. Swing trading involves holding trades for a few days to a few weeks. Position trading involves holding trades for several weeks to several months.

Regardless of the strategy chosen, it is essential to test and refine it before implementing it in the live market. Backtesting involves testing a trading strategy using historical data to determine its performance. It helps traders identify the strengths and weaknesses of the strategy and make necessary adjustments.

Managing Risk

Forex trading is a high-risk investment, and traders must have effective risk management techniques in place to protect their capital. Risk management involves minimizing potential losses and preserving capital while maximizing profits.

One of the most effective risk management techniques is to use a stop-loss order. A stop-loss order is an order that closes a trade when the price reaches a specific level, limiting the trader's potential losses. Another risk management technique is to diversify the portfolio by trading multiple currency pairs to spread the risk.

Staying Informed

Successful forex traders stay informed about the latest economic data, political events, and market news. Economic data, such as GDP growth, employment figures, and inflation rates, can significantly impact currency prices. Political events, such as elections and geopolitical tensions, can also affect the market.

Traders can stay informed by following financial news outlets, such as Bloomberg and Reuters, and by monitoring economic calendars. Economic calendars provide information about upcoming economic events and their expected impact on the market.

Conclusion

Successful forex trading for retail traders requires a thorough understanding of the market, a well-defined trading strategy, effective risk management techniques, and staying informed about the latest economic and political events. Traders must also have the discipline and patience to stick to their strategy and avoid emotional trading.

By following these guidelines, retail traders can increase their chances of success in the forex market.

Understanding REITs

 Hello Investors.

Let me explain in simplest terms about REITs.
Understanding and Evaluating REITs offers important information for how best to evaluate the performance of real estate investment trusts (REITs).

Potential REIT investors must be careful when doing research to ensure that they use the most accurate financial metrics. Missteps can be costly.

Understanding and Evaluating REITs: An Introduction

What is a REIT?

A REIT owns, operates or finances income-producing real estate. There are a wide range of property types that REITs invest in, including apartment buildings, warehouses, offices, retail centers, medical facilities, data centers, hotels, cell towers, timber and farmland.

Generally, REITs follow a straightforward business model: the company buys or develops properties and then leases them out to collect rent as its primary source of income. However, some REITs do not own property, choosing the alternative route of financing real estate transactions. The REITs generate income from the interest on the financing.

Investors can buy shares in a REIT company, the same way shares can be purchased in any other public company. Investors can buy REIT shares on major public stock exchanges such as the NYSE or NASDAQ.

There are more than 225 REITs in the United States that trade on major stock exchanges, as well as are registered with the Securities and Exchange Commission (SEC). These REITs, which are primarily traded on the NYSE, have a combined equity market capitalization of more than $1 trillion.

Understanding and Evaluating REITs: Top-Down vs. Bottom-Up Analysis

When picking stocks, investors sometimes hear of top-down vs. bottom-up analysis.

Top-down approach seeks to identify a broad picture of concerning sectors or industries that an investor might want to invest in. This approach focuses on macro economic factors such as taxation, gross domestic product (GDP), employment, interest rates, etc. Bottom-up focuses on specific characteristics and micro attributes of an individual stock. REIT stocks clearly require both top-down and bottom-up analysis.
From a top-down perspective, REITs can be affected by anything that impacts the supply of, and demand for, property. Population and job growth tend to be favorable for all REIT types.

However, Interest rates can have opposing impacts on REIT profitability. A rise in interest rates usually signifies an improving economy, which is good for REITs as people are spending and businesses are renting more space. Rising interest rates tend to be good for apartment REITs, where people prefer to remain renters rather than purchase new homes. On the other hand, REITs can often take advantage of lower interest rates by reducing their interest expenses and thereby increasing their profitability.

Understanding and Evaluating REITs: REIT vs Traditional Investing

REITs are a unique investment that is designed to offer distinct benefits to investors. REITS are great for decreasing volatility and increasing diversification within a portfolio, as well as producing income for investors.

Typically, potential investors use earnings per share (EPS) and net income when researching new investments. Traditional per-share measures of stocks, like EPS and price-to-earnings (P/E) ratio, are not often a reliable way to estimate the value of a REIT. Instead, REIT investors mainly use funds from operations (FFO) or adjusted funds from operations (AFFO), both of which make adjustments for depreciation and required dividend distributions.

Understanding and Evaluating REITs: Why EPS, P/E and Net Income are Less Reliable Investment Guides

Since REITs are regarded as high-yield investments that pay reliable dividends, it is important to look at the payout profile of a REIT before investing.

It may be the instinct of a potential investor to look at the earnings per share (EPS) of the stock to understand if the dividend is reliable. However, the traditional EPS ratio does not translate well to REITs. This is because of depreciation.

The issue is that depreciation is reflected in a REIT’s net income as an expense, even though it doesn’t cost any cash per se. REITs typically have large depreciation expenses that reduce their net income. Therefore, REIT’s net income and EPS don’t give an accurate picture of the company’s cash flows from operations.

Understanding and Evaluating REITs: Funds From Operations

Instead of EPS, it is important for investors to look at a REIT’s funds from operations (FFO). FFO is essentially operating cash flow generated by a REIT. Real estate companies use FFO as a benchmark of operating performance.

Funds from operations can be found by using the following formula:

FFO = Net Income + Amortization + Depreciation – Gains on Sales of Property

There are a few helpful ratios that include FFO, including price-to-FFO and FFO per share. Price-to-FFO is helpful when comparing the valuation of more than one REIT, as it can highlight if a REIT is cheap or expensive.

FFO per share is usually provided as a supplementary piece of data, along with the REIT’s EPS. Looking at EPS and FFO per share together helps paint a more complete and accurate picture for investors.

Understanding and Evaluating REITs: Adjusted Funds From Operations

Adjusted funds from operations (AFFO) is another important metric. AFFO is equivalent to free cash flow for a REIT. AFFO indicates how much cash the company is generating after running its operations and investing enough capital to preserve what it already owns. AFFO is even sometimes referred to as “funds available for distribution.” AFFO is an investor’s best indication of whether or not the dividend is reliable.

Understanding and Evaluating REITs: Net Asset Value (NAV)

The book value and related ratios like price-to-book are pretty much useless for REITs. The net asset value, or NAV, for a REIT calculates the fair market value of the company’s assets and subtracts liabilities.

The idea behind NAV is that the value of a REIT should be based on the current market value of its assets, so its shares on the stock market should be priced accordingly. This market value estimate replaces the book value of the building.

Understanding and Evaluating REITs: The Bottom Line

Investors who are considering buying shares in a REIT need to know the best way to evaluate a potential REIT investment. A combination of top-down and bottom-up analysis is the best way for an investor to make an informed investment decision. Although EPS, P/E and net income are common metrics used to evaluate many stock market investments, they are not the best way to research a REIT.

Funds from operations, adjusted funds from operations and net asset value offer by far the most accurate way to evaluate REIT cash flow performance. However, like any other investment metric, FFO is best used in conjunction with other measurements such as growth rates, dividend history and debt ratios. All together, these metrics create a well-rounded picture of a REIT’s valuation.

#REITs, #Investing #Realestate #Trusts

The black swan event of OMICRON VIRUS and its financial market implications.

Probably no one expected that when noble Covid 19 started in China as a form of deadly pneumonia, it would explode into a worldwide pandemic. Many scientists thought that it would fade away just the way previous SARS of 2002 and 2012 had been managed as epidemics. They had uniquely underestimated a Tsunami for Small waves. History is normally bound to repeat itself if people forget the past. As the pandemic scotched the world with its deadly waves, heroes in Pharmaceutical companies intervened, Central banks activated Modern Monetary Theory of Keysian Economics, Financial institutions served hence the black swan event of 2019 to 2021 will be forever engraved in history books of the future. 

Covid 19 did really a good number on economics of countries both rich and poor. However, OMICRON COVID VIRUS is on a mission to achieve its predecessor  COVID 19 because of one rule HE WHO HESISTATES TO REACT WILL DISINTEGRATE. When the government delayed to ensure that Covid 19 was arrested earlier it exploded to a Frankenstein Monster. A monster that hit financial institutions really hard. 

This is how, previously bankers and monetarists had been fighting deflation, stock markets booms, real estates booms and other financial issues. Never have they been faced with the monster of all monsters, the king of all kings and creme de creme of nightmares called financial inflation. Inflation is every bankers nightmare due to its negative effects on value of money, transfer of wealth and loss of trust on money. Inflation also results to inflated bubbles in stock markets, CPI and real estate which acts like a rogue jinn out the kettle. 

Omicron covid virus is such a black swan event on an already ailing economy post Covid-19. How will the government that had stimulated its economy during lockdowns of 2020 rescue itself in a possible scenarios in 2022? How would MMT save economies when it has triggered inflation that surpassed previous agreed targeted of 1.5%, 2%, 5% by becoming double the targets. The USA has always kept its inflation target at 2% however post Covid-19 the inflation rate has hit records highs of 3%. The UK and EUROPEAN Union is not spared in this Inflation mayhem. TRUELY HE WHO HESISTATES TO REACT WILL DISINTEGRATE. Inflation is disintegrating economies  however in a likely situation that Omicron sweeps the countries that plunged deeply in financial instability then hope for a better future will dwindle. Inflation has been referred as Transitory by FED CHAIR JEROME POWELL however he acknowledged that it was no longer what he perceived it to be. 

When experts go back on their confident statements then you know it is the dawn of bad days. Omicron virus has started showing investors flight to safer assets and safe havens. Gold in 2020 had a swift rally to all time highs, S & P 500, NASDAQ, RUSSEL 3000 and other indices went to high prices. Recently at this article was being written, Gold has shown steady appreciation for the fear of investors. Indices are following the same formulae for Investors Risk Appetite averse habit. As macroeconomics and microeconomics aspects will be priced in by the markets, more implications are underway. 

Supply and Demand strains were seen in sectors that we never expected it would unfold in. This is a good warning that gives us a perspective on future likely state if Omicron isn't arrested earlier. The funny part with omicron is that it has been attacking those who are fully vaccinated. Which is a very unlikely scenario that Pharmaceutical companies didn't anticipate. This is really a black swan event, tough times will not seize to end however lets hope good measures are taken to spare us the doom. 

Finally, humans always find solutions to what is deadly therefore in Omicron virus fear hope for a better intervention would be found.      

Trading Forex Made Simple and Accessible with MOGAFX

 Have you been seeking for a good broker that you would like to invest your funds in financial markets? Do you have skills in trading forex, stocks, indices and other financial instruments? Maybe you're a newbie in this field looking for the best broker to train on demo before getting a live account. 

AT MOGAFX we have our motto that states Trading For Everyone which implies that we shall cater for all your trading needs in forex to make your financially stable.

Let me share with you, about MOGAFX a broker with,

•  proven track record,
•  has been in the business for long,
•  provides retail live account to its clients
• gives clients to trade both on MT4 AND MT5
• provides wonderful client support
• faster deposit and withdrawal for your funds
• has good spreads and lower swap fees.
• gives newbies opportunity to learn forex for free on demo accounts
• Has a deposit bonus on your funds
• Educational series about trading to make you successful

These characters are essential for every trader to factor in on their journey to investing. 

At MOGAFX you will get time value for your money as a trader due to good spreads that maximize your profits on a volatile market scenarios. 

They offer any trader with accounts that can be affordable to them. These accounts you can fund starting from $250, 300, 500, 1000, 2000 and $3000. 

When you sign up, there is a dedicated staff that will call you to inquire about your investing goals like what is your trading experience, your funds capabilities and what you aspire to accomplish. This helps you to gauge your level of skills which can assist you to invest and become a successful trader. 

There are analysis done by the company for its clients which helps them to moderate their investing activities.

There will also support you on personal level when they allocate to you an account manager to guide you on anything you require to succeed in this business. 

Click here  to register for your account

Fill in your details and wait for a call from your account manager

Welcome to the MOGAFX company and may you succeed because basically here YOUR SUCCESS IS OUR SUCCESS. 

Minimum Capital to Start Investing in Forex Market

Investing in forex was reserved for institutional traders before the gates of opportunity were opened for retail investors. Probably you are a retail investor, that why you are interested to know, what is the minimum capital required to start as a trader. 

Welcome to my blog, a right place to be for Trader's informative content, encouragement, booking your private jet charter and much more. However, today we are going to handle the question on what is the appropriate amount of capital required to start. 

As a retail trader, you will need to create an account that should be either micro/cent with a leverage of 1:1000 or Standard account that has a leverage level of 1:500. 

Leverage will will enable you to use small amount of funds to trade big contracts on the market. Therefore, for a retail investor with as little as $10 to $100 or $250 you will be fit for micro, cent and standard account.  

Therefore here are some of the brokers that will give you micro, cent and standard accounts that require less starting capital. 

FBS will offer you with cent or micro account that you can start with a minimum of 10 US dollars.

 Click the link to start,  

Use a leverage amount of 1:1000 when creating your account. 

After verification of your email and phone number, you should deposit an equivalent of $10 and above. 

Use the MT4 or MT5 credentials sent to your email to access the market trading terminal for your investing activities. 

It is so easy to invest. 

HAPPY INVESTING AND TRADING TO YOU, WELCOME ON BOARD. 

FBS BROKER