Last Updated on 4 months by DiaryNiGracia
1. How can you succeed in the time of pandemic and new normal, bear market.
Philippine stocks have fallen the most in four years, and some experts are already anticipating a bear market. The last time the market hit these levels were in October 2020. During the early months of the epidemic, and in 2014, before the health crisis.
As concerns about the spread of the coronavirus intensified, the Philippine Stock Exchange Index dropped 3.9% to 6,909.84 during February 2020, bringing its three-day decline to 6.0%. Manny Cruz, a strategist with Papa Securities Corp. in Manila, predicts that the index might hit the 6,692.23. This level is in the following months. Signifying a 20% decline from its 2019 high. As fears about the epidemic and its effect dampen hopes for higher economic and profits growth in 2020.
Some individuals are preparing for a bear market in the Philippine stock market as viral fears increase. Fears of a virus plague the Philippines even though there have been just three confirmed cases. The benchmark index is around 3% away from entering a bear market. With the decline, its year-to-date loss has risen to about 12 percent, the worst performance in the world behind Lebanon and Thailand, whose needs entered bear territory on ours.
President Rodrigo Duterte’s vocal assaults on some of the country’s most prominent corporate companies for contracts. He said were detrimental to the public had already weighed on Philippine stocks.
Nonetheless, before the epidemic, experts and investors had a favorable prognosis for 2020. Due to rapid economic and profit growth, the nation’s largest money managers, BDO Unibank Inc. and First Metro Investment, predicted a double-digit rise for the nation’s stock index this year. However, the coronavirus has altered the situation. “It is inconceivable that earnings won’t take a blow,” Cruz said, adding that a 10% increase in profits for Philippine firms this year may be “optimistic”. Given the epidemic’s impact on supply chains and consumer behavior. Earnings for the first quarter will see a significant decline that will continue for the following three months.
He anticipates that rallies would be short-lived. Since the risk-averse mindset has not yet reached its apex while worldwide infection rates continue to rise. “The next step will be discussions and worries of a recession,” he warned, once the impact of the virus on the impacted countries becomes obvious. He cautions that the impact will spread beyond the tourist and consumer industries. According to Cruz, a slowdown in manufacturing would have a “domino impact” on other businesses and the economy, reducing demand for loans and power. Therefore, he supports stocks of lenders and developers, such as the Bank of the Philippine Islands, Security Bank Corporation, Metropolitan Bank & Trust Company, and Ayala Land Inc. The Philippine Stock Exchange (PSE) entered a bear market on September 27 as its composite index (PSEi) dropped more than 239.47 points.
PSEi passed the bear market threshold when it reached 6,041 points, with the index touching a daily low of 5,962.17 before closing at 6,007.
The PSEi concluded Friday’s trading session at 6,259.54 points. Concerns over growing inflation and the peso’s persistent weakening versus the U.S. dollar led to a two-year low in the stock market. This occurred days after the U.S. Federal Reserve increased interest rates by 0.75%. To battle inflation when the peso reached a new low of P58.99 per dollar. Analysts from First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) predicted in a joint study that the Bangko Sentral ng Pilipinas (BSP) would boost base points by 25 to prevent the peso from falling farther behind the dollar. The partners anticipate another 25-basis-point (bp) hike before the end of the year if inflation maintains over 6.5%.
However, the peso may rise in November,2022 when overseas Filipino workers (OFWs) send remittances to their families, making imports cheaper for the nation. FMIC and UA&P expect the inflation rate to reach 6.7% in September or October.
So how should we invest during the pandemic or in new-normal, where the market is in the fall/bear market?
During a bear market, one investment strategy is to purchase stocks at decreased prices. However, it would be best if you were careful with this strategy. You should only purchase stocks from companies that have survived previous economic downturns.
Therefore, many seasoned investors recommend purchasing “toothpaste stocks.” These are only sometimes stocks of toothpaste-only manufacturers. These are shares of firms that create many products that will always be in demand, such as toothpaste and other essentials.
If you have correctly selected your investing vehicles, such as a 401(k) or index funds, you should continue making contributions. The first decline may reduce the total value of your 401(k) or investment fund. However, purchases made on the way down will be discounted. As prices climb in a bull market, you will emerge with a higher value on the other side of the market reversal.
Bonds and precious metals might be your buddies in the event of a downturn market. Historically, these assets have done well in imperfect markets, as stock prices and interest rates decline.
The asset allocation strategy has the most considerable impact on portfolio performance. This is particularly true over extended periods. An investor’s performance may be superior if they are mediocre at investment selection but excellent at tactical asset allocation. Compared to technical and fundamental investors who may be outstanding at investment selection but have lousy timing with asset allocation.
Consider the following tactical asset allocation example:
Assume you see conventional indicators of a mature bull market, such as increasing interest rates and high P/E ratios. New bear market conditions look imminent. Then, you may begin to lower your exposure to risky stock funds and overall stock allocation. You may also start developing your investments in bond and money market funds.
Let’s also suppose that your goal (or “typical”) asset allocation comprises 65% stock funds, 30% bond funds, and 5% cash/money market funds. Once you see high P/E ratios, new records for crucial market indexes, and increasing interest rates, you may rebalance your portfolio to 50% equities, 30% bonds, and 20% cash to decrease risk. All that remains are the actual sorts of mutual funds that may assist reduce your portfolio’s total market risk.
Consider that the average duration of a stock market bear market is one year. By the time analysts announce the start of a recession, the bear market might have been in a downward spiral for three or four months. If the length of the bear market downturn is less than typical, the worst may have already passed.
2. What are the trading rules for working people (8am-5pm).
Picture this: you work every day from 8 am to 5 pm but want another income source from investing in the stock market. However, the stock market is only available daily from 9:30 am to 3:00 pm and is closed during weekends. So, how will you be able to earn, given the conflicting schedule? All we can do is invest for the long term.
Long-term investing is investing in a stock you intend to retain for an extended period. Typically, this period spans many years and occasionally even decades. These long-term assets, if chosen correctly, may yield profits to their owner without the need for regular portfolio adjustments. This investing style is advantageous since it has historically been one of the few strategies to build wealth while simultaneously outperforming inflation. Long-term investors are not concerned with the little daily dips and rise that equities encounter. Instead, they take the time to locate significant firms and invest in them for the long term.
As stated above, the key to successful long-term investment is careful stock selection. This is because there are highly specialized assets that perform well over time. You may invest for years without any return if you select the incorrect firm.
Below are some stocks you should consider purchasing if you intend to retain them for an extended period. Nonetheless, it is crucial to remember that even long-term investments are dangerous; losing your entire investment in stocks is always possible. However, there are a few viable options when it comes to playing it safe over the long term.
Many long-term investors use the strategy of searching for cheap companies, sometimes known as value stocks. These equities are now selling at a price below their actual market value.
In addition to receiving a terrific price when acquiring these stocks, many also frequently pay dividends. This enables you to earn returns on your investment while retaining it.
Typically, value stocks are cheap due to poor publicity or a temporary market crisis. Using the P/E ratio is one method for identifying prospective candidates—generally, the lower the P/E ratio, the more undervalued the stock.
Growth stocks need a different long-term investing approach compared to value equities. Instead of seeking an undervalued firm, you will go for one with enormous growth potential.
This is easier said than done since predicting a firm’s future is challenging. This makes growth investment a riskier kind of long-term investing, but it may pay off in the long run.
Growth investment is typically focused on innovation because you invest in something that you feel will be innovative. Normally, these stocks still need sales evidence since they are just beginning and are in their earliest stages of development.
The Stock Indices
Stock indices are an excellent risk management tool for long-term investment. Instead of depositing all of your money in a single firm and expecting its growth, you will invest in many companies, generally in the same industry.
This is often accomplished by investing in a security known as an Exchange Trading Fund (ETF), which is a collection of comparable equities. For instance, a technology-focused ETF may include Jollibee, Ayala, San Miguel, etc., companies.
When searching for assets that you may hold for an extended period, there are several criteria to consider. If a stock or other financial support has all these qualities, consider adding them to your portfolio.
Here are the characteristics of possible long-term investments:
You know how a corporation earns money, and this strategy seems sustainable for many years. A favorable P/E ratio.
- The business has shown the capacity to develop and adapt as the world evolves.
- The stock’s resistance to recessions and bear markets is high.
- The stock is not a passing craze.
If your prospective investment has all of these characteristics, it may be a smart addition to your long-term portfolio.
Yet, there are Limitations to Long-Term Stock Investing. There are both advantages and disadvantages to long-term stock speculation. Depending on your specific scenario, you must be aware of three vital possible drawbacks.
Fewer Returns.The apparent disadvantage of long-term investment is that if you are even a mediocre swing trader, you may earn much more money by engaging in swing trading.
Long-term investing often requires low-risk investments, typically low-risk since they do not provide a high return. The average return on long-term investments is around 10%, the same as the market.
Many swing traders may earn in excess of 25% if they do enough research. In swing trading, an investor purchases stock to keep it for just a few weeks or months and then sells it for a modest profit after a price surge.
Your Capital is Restricted. And while your funds are in these long-term investments, you cannot utilize them for other purposes. This means you may lose out on a new investment opportunity that may provide substantial profits.
If you had acquired Jolibee stock for Php 200,000 in August 2022 and then sold it for 240,000 in October 2022, you would have earned Php 24,000 for each JFC share you held. This is a 12% return in just two months, after which your cash would have been available for other investments for the remainder of the year.
So now, are you prepared for long-term investing? Before jumping off the diving board, consider a few ideas to help you succeed with this investment plan.
Invest Funds You Don’t Require
Although it may seem simple to convert your emergency cash into long-term investments, there are better strategies to get investing funds. To withdraw funds from long-term investments is expensive. It would be best if you only made long-term investments with funds you can afford to lose, even in an emergency.
Observe the Fees
Before you build a long-term portfolio, you will want to locate the optimal trading platform from a financial perspective. With long-term investments, you presumably want to keep your account for years, if not decades, and transferring this money to another platform after purchasing them is burdensome and costly.
If you are searching for a more relaxed approach to investing than day trading or swing trading, then the long-term investment is the method for you. You will spend time studying companies first, but eventually, you will purchase shares and hold on to them for at least a year and perhaps longer.
A long-term investment is an excellent, often low-risk option to invest your money, despite its few disadvantages. You’ll be OK if you choose the right platform, diversify your finances, and invest only money you don’t need. Before you realize it, you’ll have a solid long-term investment portfolio that generates profits without daily care.
(3. What are the best stocks to trade in 2023, according to the new normal conditions? give me atleast-10 and why?)
4. How not to be greedy in stock market, 10 tips.
Establish a Plan
It is always prudent to have a trading or investing strategy. Regarding coping with greed, your system will play an essential function. Your design will likely include an entry price range and a target or market capitalization range. Your pricing range is what will prevent you from becoming too greedy.
For instance, suppose you have researched a firm and want to invest in it. The current price of the company’s shares is Php 2,500. Your entrance price range is Php 2,250 or less, and your goal range is Php 4,000 to Php 4,500. When the stock price goes below Php 2,250, you should buy, but greed creeps in, and you decide to wait for a lower price. Since you have a strategy, you will remember that every price below Php 2,250 is a purchase, preventing you from succumbing to greed. In the future, when the stock price hits Php 4,000 or greater, the same logic applies.
If you ever seek stock market investing advice, having a defined investment strategy should be your priority. You must have a system to base your choices on the design, not your emotions. It is elementary to be influenced by an emotional urge that will distract your focus from your investing strategy and take you down a different path. Here, having a solid investing strategy is essential. You may choose a long-term plan or a short-term profit-seeking purpose depending on your needs and act accordingly.
Consider how much of your portfolio you are prepared to risk on a specific transaction before entering a position.
Many traders adhere to the guideline of attempting at most 1 or 2 percent of their account balance. If you have a modest account, you can risk a little more to get a more prominent position. Determine which purchase indications will serve as your go-ahead to begin a trade, and enter only when you see them. The Oracle Scanner from StocksToTrade performs an excellent job of identifying optimal entry and exit positions.
The departure is at least as significant as the entrance. Consider your options if a deal begins to deteriorate. What is your loss limit? When will you leave if things go against you? Now, resolve to go, and do not take it personally. Never engage in emotional trading. Using recognized chart markers such as the day’s low might be a helpful support point for establishing risk. And some resistance levels, such as the day’s high, might serve as promising entry targets.
Know your profit objective as well. Get out of the deal after your aim is reached. Don’t become greedy. Or, you may risk less to perfect your method and prevent your account from being depleted. Regardless, only trade with funds that you can afford to lose. Trading is dangerous!
They don’t have a mentality of getting rich quickly.
The stock market is a terrific place to build money over the long term, so let go of the mentality of “getting rich quickly.” The widespread belief that one may get wealthy overnight by investing in the stock market has wreaked havoc on the general public’s mindset. It has therefore altered our perception of the stock market. Historically, the stock market has provided higher returns than any other investment choice, but this is a gradual process. To multiply your wealth, you must practice patience and allow your investment to expand. Remember that “Rome wasn’t built in a day.” Follow your financial strategy without giving in to fear or greed. Let go of the notion of becoming wealthy quickly.
According to a mid-2019 analysis by Credit Suisse, less than 1% of the worldwide population are millionaires. Even if you are fortunate, it is quite improbable that you will join the millionaire club. This is not to dishearten you but to demonstrate that success classes, forex trading, and insanely volatile investments will not make you wealthy, partly because you still need a high level of belief in anything you do for it to provide such extraordinary results. If you invest Php 50,000 in Dogecoin and it appreciates fivefold, you would still only have Php 250,000.
You must be enthusiastic about what will make you wealthy; else, you will not drive to pursue it.
Very few individuals are sufficiently moved by the fantasy of money alone; they truly need money. While advertising and marketing may attract these customers, they won’t stick around for long if they’re not generating money. If your only objective is maximizing profit at the most significant risk, you will purchase lottery tickets.
The worst aspect of all this is that by pursuing “get rich fast ideas,” you make yourself a good target for scammers and poor ventures that will often pull the rug out from under you and flee. By seeking financial shortcuts, you are more likely to succumb to these tempting offers that match your mindset. The item you are purchasing is “the fantasy of prosperity.” When you might instead invest that money to increase your fortune.
If you are doing anything monumental, it will NEVER be simple. You will face difficulty, failure, and several setbacks. This is one reason so many individuals fail to achieve much in life. They lack the foresight, discipline, and tenacity to pursue a course of action through its completion.
Here’s something more you must understand. There is no such thing as becoming wealthy quickly in life and business. If it is a viable firm, it will require considerable time and money to expand and flourish, most likely for many years. If you want to get wealthy quickly, you may cash in your life savings and gamble in Las Vegas. But please understand that the chances are stacked against you there as well! Financial success needs a strategy, hard effort, and dedication.$
Track Your Investments
Please keep track of your money: Many would say that after emphasizing patience, we’ve reached the stage of keeping track of your investments. By this, we mean that you must constantly monitor your investment and be able to evaluate it to see if it aligns with your original objectives. Keeping a close eye on your investments and documenting them can assist you in making rational judgments in the future and allow you to control your emotions. In addition, you may adjust your investment portfolio depending on your needs and preferences whenever necessary.
Tracking Your Investments Through
Using your spreadsheets, you may monitor your investments by yourself. Excel and Google Sheets, which enable you to modify your spreadsheets to monitor your investments, are the most popular options. This may be more labor-intensive, but it has the extra advantage of being fully customizable and programmable.
is a component of the Microsoft Office suite. Thus you’ll need to acquire Office to have access to Excel. It is a powerful instrument for monitoring your assets.
is a free online spreadsheet tool that instantly makes it easy to update your papers using data extracted from public finance. In addition, you may view your Google spreadsheets from anywhere in the globe by logging into your Google account.
In addition to helping with investment estimates and predictions, spreadsheets are also beneficial. You may use algorithms to determine dividend income and anticipate investment forecasts. And if you want to retire earlier, you may use your spreadsheets to keep track of your investments and timetable. Spreadsheets are excellent for recording and comparing statistics, even though you must manually enter your financial data into Excel or Google Sheets. Once the figures have been entered into the spreadsheet, you can use formulae to calculate the cumulative value of your investments over time. You will have a convenient record of your investment history. With Respect, Handle the Documents All the paperwork you get from your financial advisor or broker must be properly read and comprehended. Ensure that your account confirmation and statements are correct.
Keep track of communication notes. Brokers are well-educated and possess in-depth investing expertise.
Every time you visit with your advisor or broker, be sure to take notes since doing so will assist you in becoming more adept at comprehending complex issues. Account statements and confirmations are sent through direct mail. Even though you will send your account statements and guarantees to your address, it is crucial that your information not be compromised. Avoid storing sensitive information in the Office or public areas of your home. You may create copies of your papers and send them to a trusted someone, such as an accountant, a lawyer, or a family member, so that you may inspect them thoroughly. You must follow up if you still need to receive your confirmations or account statements. There may be a problem if these papers are often delayed or not received.
Solicit till you get it. Ask your advisor or broker to clarify any aspect of your investments that you need help comprehending. Your advisor or broker must be alerted promptly if illegitimate investments show on your account statements or confirmations since this might lead to future issues. Even if you perform most of your transactions offline, an online record of your trades can help you better manage your money.
Be in your Comfort Zone
Everyone is fascinated with achieving objectives and exceeding limitations. Even meditation is employed as a method to enhance our capabilities. Honestly, for fifty percent of my life, I followed the herd. I was goal-oriented, goal-conscious, and a goal medallist. Today, though, I will be different. I will be the one to advise you to stop. Do not engage in war after a battle; you will get exhausted and perish. Stay safe and in your comfort zone for once. Enjoy your life, and work safely and without stress.
In futures, options, and even MCX and bullion markets, individuals may easily earn a fortune overnight utilizing margins; however, the danger of margins is that you can also lose your whole investment overnight. I do not favor trading with margins (See why here). Hence I see no need for Indian Retail Investors to trade futures and options. It may be tempting for me to trade in futures and options since, as a blogger, I ought to know how to trade in futures and options, but I don’t feel confident doing so; therefore don’t.
I see a need for it if they have a portfolio where purchasing cash-segment stocks might cause a stock price increase. I am at a disadvantage when shorting stocks by not trading futures or options. In the cash market, we must accept this reality.
Three reasons for staying in your comfort zone
It would help if you had relaxation and recuperation time. You must restore your energy and composure if you have overcome multiple comfort zone problems. Multiple wins against life’s obstacles may be intellectually and physically draining. Before intending to pursue another objective, give yourself a rest. You are not a machine. Look for yourself.
Honor your milestones. Reward yourself by commemorating your success. Appreciate the drum roll when you achieve a life objective. Take photographs with rainbow confetti and save them in your memory.
Take your time pursuing another goal; you’ve just reached your target. This is my favorite and what persuaded me to appreciate my comfort zone. I’ve considered this a thousand times, and I stick by it.
Standing in your comfort zone entails doing acts to which you are accustomed. Therefore, you possess the necessary skills and knowledge. Your actions are easy. Why not share the information you have gathered over the years? Share with as many others as possible. You will be able to bless more people with less work and no worry. Instead of hurrying to add impressive-sounding achievements to your name, offer them a piece of yourself. You may discover happiness comparable to mine.
Even if I get inquiries about futures and options, such as projecting stock market movement based on open interest or call-to-put ratio, in my email, I inform them that I do not trade futures or options, nor do I utilize futures data to anticipate market movement. As a result, someone other than me may be the best person to answer your query, although I can do the calculations; moreover, I do not engage in trading using these signals.
Lock your Profits
Locking in profits refers to realizing previously unrealized gains in an asset by selling all or a part of the holdings. When an investor retains an open position, unrealized or paper profits or losses may accumulate until the position is liquidated. A case in point is when an investor with a long asset position may lock in gains by selling their position at a profit. This eliminates their vulnerability to changes in the underlying.
Often referred to as “realization” or “taking money off the table.”
Until you lock in your earnings, you are just receiving paper gains. It may ascend or descend. However, if you are pleased with your earnings, consider locking in part of them. The paper gain will only become guaranteed earnings at that point. Keep in mind that no one ever goes bankrupt, locking in gains. Locking in your earnings too early will not lead to wealth. It would help if you balanced grabbing profits and allowing winners to run.
Historically, investors utilize a stop loss to safeguard their original Investment if the market goes against them. Essentially, the amount they are willing to speculate in the markets is a negative figure. There is a straightforward technique to benefit from winning deals without losing any of your initial Investment. When your trade swings considerably into profit, you may “lock in” a portion of your winnings by shifting the stop loss into profit (a positive number).
Traders and investors may lock in gains for various reasons, but risk reduction is typical.
To maintain a diversified portfolio, long-term investors may lock in earnings. For instance, an investor may have begun with a portfolio evenly split across five funds. If a fund outperforms its peers, its portfolio allocation might increase from 20% to 30%, exposing the investor to more risk. The investor may lock in a part of the outperforming fund’s gains and shift the proceeds to the other four funds to maintain an optimal portfolio allocation that minimizes risk and maximizes profits.
Traders with a short-term horizon often lock in winnings to earn revenue and reduce risk. For instance, a trader may establish a long position following a strong earnings report with many price objectives. After the stock meets the first price goal, the trader may lock in gains on one-third of the position and hold the other two-thirds until a higher price objective is achieved. In this manner, the trader takes some money off the table and reduces their risk should the stock suddenly decline.
Here are a few basic guidelines to do:
- Conduct a trend analysis and determine the trade’s direction and length.
- Wait till the Investment generates a substantial return.
- Determine the amount to safeguard
- Avoid putting the stop loss too close to the current market price to allow for appropriate market retracements.
- Refrain from second-guessing yourself by repositioning your stop loss to a negative value.
- If the trend continues in your favor, advance your stop loss to a larger positive number (a manual trailing stop).
If the trend continues in your turn, you should also move your “take profit” farther out to lock in further possible winnings. Trading requires time, patience, and discipline.
Invest in Your Education
When an investment is riding, and you are unprepared to record gains, greed begins to set in. Each day, you evaluate the profitability of your deal and consider letting the profit ride for one more day. Do you believe anybody can sell the shares in such a state of mind? I don’t think so because selling the next day will always be profitable as it continues to rise. The day the ride stops, the feeling to sell will be too uneasy, and often the belief that this is just a mild correction and there is still more upside comes into play, resulting in a no-profit, no-loss situation for the stock.
The let-the-profit ride mentality occurs when you need help identifying more investing possibilities. There is no wrong in letting a profit run, but we must follow a trailing stop-loss method to maximize the trade. Additionally, if such options arise often, you will be more eager to record a profit.
If you depend on people to do a task for you, you will more often than not do it incorrectly, and if everything goes as planned, greed may set in.
The nice thing about the stock market is that nobody knows all there is to know about it. Even Warren Buffet, the Oracle of Omaha, reads daily and talks about being a lifelong learner. Learn how the market operates, its fundamental and technical features, strategies, and trends. Thus, when it comes to decision-making, you may rely on your expertise rather than your emotional instinct. The conduct of firm leaders has a significant impact on the conduct of workers. When managers engage in conversation with their employees, employees feel heard and are thus more motivated to provide fresh ideas.
Establish a learning-friendly culture and recognize the personal and professional advantages of extra training, and you will prepare your staff for action. Every year, fewer businesses choose conventional offsite/in-person training. In reality, this training requires a substantial amount of time with little evidence of its long-term effects on the job. To move towards an “always-learning” culture, L&D departments should provide eLearning courses, online videos, and other on-demand tools so workers can study on demand.
Corporate learning is evolving to provide on-demand, around-the-clock access.
Modern workers anticipate access to training whenever and wherever it is required. The ideal circumstances for the application and integration of learning are created when mobile learning courses are available 24/7 on students’ mobile devices. According to neuroscientists, this is a more efficient method of learning and information retention since it enables workers to seek and obtain solutions when needed.
When we share our expertise and use best practices, we continue to learn even after completing a training course. The most incredible way for your students to learn is to ask questions, debate topics, share ideas, and teach what they know. Students’ critical thinking abilities are enhanced when they actively participate in the process of engaging with others to investigate a learning topic. Encourage the use of social media after online events to investigate a range of viewpoints on the issue to put humanity’s inherent propensity for social interaction to work. Link to films and blog postings that provide insightful information.
Risk is in the Market
The stock market is highly active and ever-changing; thus, the risk is inherent. People need to foresee the market properly and consistently. There may be times when the stock market performs poorly, causing you to lose value on your investment. These things are unavoidable, and few people can avoid them. This is why you need a plan before anything else. Because you can prepare your approach and respond to any potential threats or crashes, thus, your fear instinct will not be able to influence your decision-making.
Challenges and hazards are unavoidable components of a business. These risks and obstacles range from financial to technological to political policy. Business risks are unexpected and might result in financial losses. Even if your business strategy is quite solid, the risk might materialize, impeding your company’s growth. A firm’s operation requires an understanding of the risks and threats it will encounter. By grasping the notion of risk in business, you will be better prepared to assume the responsibilities of managing a company.
Business risk is an activity connected with the potential for unanticipated losses.
Various elements, such as management, firm processes, and ineffective initiatives, might threaten a corporation. Moreover, human and employee factors may potentially pose threats to a firm.
Classification of Risk
At least two forms of corporate losses are caused by speculative risk and pure risk. To comprehend the nature of each danger, please read on.
An example is the danger of overproduction, which may lead to losses (losses) or profit gains (profits). A speculative risk is a form of risk that, if realized, may or may not result in losses (losses) (no loss).
For instance, there is a risk of loss if the corporation invests by purchasing stocks. After some time, firms whose shares are acquired incur losses and drops in corporate value, causing the value of investments to decline and resulting in losses.
If it happens, it is a kind of risk that would result in losses but will not result in losses if it does not occur. Examples include fires, accidents, earthquakes, erupting mountains, floods, and landslides.
For instance, if a restaurant suffers a fire, it will almost probably incur property damage damages. After then, the restaurant was either temporarily or permanently closed for repairs and restoration.
Some potential dangers associated with economic activity. Next, a discussion of the definition and kinds of business risks; the following part examines the many forms of business hazards. Due to the growth of business risks connected to vital aspects of your company development, it would be beneficial to have business risks to establish a firm. You should be aware of the following six categories of company risks: financial risk, production risk, marketing risk, technological risk, market demand risk, and government risk.
Follow Single Strategy
If you purchase what I tell you to buy, you don’t know why you should be purchasing, and if that stock does not perform as you had hoped, you maintain it as your investment because you’ve determined that the firm is fantastic.
A trading strategy is a predetermined plan for selling and buying stocks that are intended to make a profit. It should be objective, consistent, quantitative, measurable, and verifiable. The method is based on fundamental or technical analysis to prevent systemic risks from having catastrophic repercussions on financial instruments. When developing a trading strategy, traders should establish attainable objectives. A trading strategy outlines the techniques for purchasing and selling assets, including bonds, stocks, futures, options, and FTEs. An investor collaborates with a broker-dealer to choose successful trading items and manage trading operations while developing a trading strategy.
Once a trading strategy has been developed and implemented, the trader observes the markets and maintains trading positions to ensure they are consistent with the plan. The trading strategy monitors the investor’s portfolio’s risks, returns, and effects of current transactions.
Fundamental and technical trading techniques
Most trading methods are based on technical or fundamental research and are guided by measurable and verifiable market data. Typically, strategies that depend on technical indicators concentrate on market strikes and their changes. For instance, using a technical hand such as a moving average, one may create a trading strategy in which a short-term moving average crosses below or above a long-term moving average.
Fundamental trading techniques,
like technical trading strategies, depending on essential considerations. A design may be based on criteria such as profitability and revenue growth to establish a succession of trading opportunities.
Quantitative trading approach.
The quantitative trading approach determines whether to purchase or sell a particular asset by assessing the available information. While the strategy looks similar to technical trading, it uses a more significant matrix to determine whether to sell or buy than technical trading. Market inefficiencies are shown using major data elements, including price, regression, and trading ratios.
When you purchased it, you did not do it because it was a fantastic firm but because you had trading levels and goals in mind. There is a distinct technique for acquiring exceptional businesses. When trading, you buy low and sell high, but when investing, you purchase when you perceive value in the firm and stay engaged for at least three to five years since the business may turn around.
There are various tactics on the market, and if your plan is successful, you should remain with it; otherwise, you should stick with a strategy that has worked for others and attempt to imitate it.
If you are uncomfortable with a practical approach but not to your liking, look for something with which you are more at ease. Trading techniques in investing are used to achieve consistent outcomes and avoid behavioral financial biases. Traders have the option of using either discretionary trading or automated trading. The trader does discretionary trading, which involves a significant level of discipline since traders may be tempted to break from the plan.
On the other hand, automated trading employs sophisticated computer modeling methods to automate a portion or the whole of the investor’s portfolio. Compared to discretionary trading, automated trading provides traders with an advantage in trade execution, allowing them to choose a cautious or aggressive trading technique.
Be in the Market to Loose Money
You may have heard that 90% of investors lose money in the stock market. This relates to those who engage in uninformed day trading rather than those who invest for the long run.
Whether or not this is factual, many individuals indeed make expensive errors while investing in the stock market. Many reasons may be apparent, but they are also simple to ignore or forget, particularly for novice investors. Even if you modify your technique and thinking, you should anticipate periodic losses due to economic or market fluctuations. Having stated that, let’s examine why individuals lose money in the stock market. One of the most fortunate investors on the planet made this comment. He is the greatest at locating companies and investing as cheaply as possible, but he advises avoiding the market if you feel uncomfortable when your stock falls by 50%. So consider traders.
I see the situation differently. If you make a transaction in the market, you will incur brokerage, STT, and other fees.
However, if you create a Demat account, you will only be required to pay an annual maintenance cost. Thus, you are in a position to lose money. You must ensure that you can recoup these expenses from the market. Therefore, if you develop a mentality for losing money, hitting a stop loss will not bother you. Often, I do not launch a trade despite a great pattern that I am comfortable trading because the stop loss is too high, and I am not willing to lose the amount for a minor gain, or because I am not happy with the ROI (Return on investment), and so I let the trade pass. Imagine that the firm in which you invested declares bankruptcy. What are your alternatives? It is possible to safeguard your money even if the firm declares bankruptcy. Equities decline for several reasons, such as poor profits, an SEC inquiry, FDA rejection, a change in management, or bankruptcy. I have seen stocks drop 80 to 90 percent in minutes. In stocks, there are Long and Short positions. Suppose you hold long places and the stock price rises, you profit. Suppose you have short positions and the stock price declines, you profit.
Which alternatives do you have? I would compare the phrase “option” to auto insurance. You might file a claim with your insurance company for the value of your vehicle if it was damaged in an accident. Like auto insurance, this option enables you to sell your shares at the strike price if their value falls by at least 90% for any reason. Essentially, you lost only the insurance payout.
Anybody Can Be Wrong
The stock market consists of complicated technology, financial specialists, and investors. Among the most esteemed professionals on Wall Street are the research analysts who spend their days investigating stock market prospects. These analysts earn a living by expressing their predictions for the future. Many novice investors make investment choices without research, even though they know that research is the foundation of successful investing. In terms of market forecasting, everybody is susceptible to error. Even Warren Buffet acknowledged some of his investing mistakes. Therefore, there is nothing wrong with committing these errors, but if you continue to do so often, they cease to be errors and become habits. Therefore, if you write down your trades together with a remark about that specific trade or a cause for the loss or profit, you are more likely to discover what works for you and what does not, allowing you to work on things that do not work for you and trade with what does.
I attempted other investment strategies, such as purchasing cheap and selling high.
Still, I was unable to hang on to my stocks as they continued to decrease, so this approach did not suit my personality. As I recorded information, I was able to examine what works for my thinking and find a solution that complements my approach. With the ability to predict the future, it is possible to time the peak or bottom of a stock. However, timing the peak or trough is what contributes to greed. When greedy, you want to purchase at the bottom and sell at the high. Once you acknowledge that you cannot time the peak and bottom, greed will have less influence. Add to it your strategy, and your actions should be independent of greed.
I recorded the following, and as I built my tactics for what works for me and what doesn’t, I often referred to my notes to determine why I earned or lost money. I thought more often about why I lost it, and I avoided making similar errors again once I understood why. With forecasts of profits per share, sales, and share price, as well as evaluations from research experts, many newbies feel the research groundwork has been done for them and decide to invest in any company analysts consider a good investment opportunity. There are several advantages to investigating investing prospects on your own rather than simply following experts. While research analysts are highly compensated professionals with a propensity for making stock market selections, their views are sometimes unreliable as a foundation for objective investment decisions.
5. What are the correct set-up to trade for working abroad?
Consider stock marketing trading on the Philippine Stock Exchange (PSE). Trading in the Philippine Stock Market is likely one of the OFW Investment recommendations an OFW should attentively examine and prioritize due to its immense rewards.
The stock market in the Philippines is currently seen as an intelligent investment for overseas Filipino workers (OFWs) since employees are confident that their hard work abroad will pay off and develop without requiring much physical labor.
You were establishing your Profile and Objectives.
It is more complex than blinking your eye or waking up the following morning with a feeling of urgency to set up a brokerage account and begin trading stocks. You must carefully consider this and determine if you are financially and psychologically prepared for it.
Write out the goals you want to accomplish.
To better understand what you want to do, write it down to remind yourself that these are the things that will keep you motivated during the lengthy process of reaching these goals.
Plans for retirement or company, as well as purchasing a home and preparing for a future family, should be put down so that you are aware of time and the possibilities or chances you may have missed out on since you always believed that you might complete things tomorrow or in a week.
Have a financial objective.
Before investing in stocks, you should ask yourself, “What is your financial objective?” This will help you see why you would invest and save money. The financial objectives should be as precise as feasible so that you can reduce the required time and tactics you’ll need to devise to reach them.
This event begins with how you save your monthly income; if you want to invest in stocks, how much are you prepared to spend on supplies? How much are your everyday costs and other essentials? There are a variety of money-saving strategies available, including the 50-20-30 rule. It states that fifty dollars should be spent on everyday costs, twenty dollars on leisure activities, and you should save thirty dollars (e.g., retirement plans and like).
Resilience on future risks.
As they say, stocks have their small ups and downs or massive ups and downs, which can significantly impact our plans. Therefore, before investing in stocks, you should have prepared yourself for the potential risks by studying and learning from those with extensive experience in this field.
Knowing the business, you’ll be entering.
Read as much informative material as possible to provide insight into the industry you want to enter. Listen to the professionals when it comes to efficient advice on what types of stocks are worth investing in and forecasts for how the stock will do in a month or two.
Adjust your outlook for the stock market.
The stock market involves proficiency in art and science since it requires a comprehensive comprehension of and analysis of market performance financial data.
Understanding what data should and should not represent should be one of your most valuable talents.
Understanding Stocks Marketing.
Stocks are recognized as ownership stakes in a firm. The stock market is where stock purchases occur, and in the Philippines, PSE, or the Philippine Stock Exchange, manages and regulates the local stock market.
After successfully purchasing stock from a firm, you are now an owner or shareholder of the corporation and will partake in its development, success, and losses.
You were investing Wisely in the Stock Market.
Investing your savings in the stock market seems hazardous and audacious. But why do you believe so many individuals have chosen this risky action?
It knows your alternatives.
There are two sorts of investments from which a novice in this industry may pick.
Either equity index funds or exchange-traded funds (ETFs)
are the funds that enable the purchase of tiny quantities of several equities in a single transaction. This implies that when you invest in a mutual fund, you also own a portion of the firms it invests in
It enables the purchase of a single share or a small number of shares in a specific firm or corporation.
Create an account with a reputable stock broker.
To check that you have a good list of accredited stockholders, visit www.pse.com.ph on the Philippine Stock Exchange (PSE) website. You may create an online stock trading account and invest in the Philippine Stock Market for as little as $10,000. You may place stock orders independently by creating your account online instead of phoning the broker.
Choose your favorite online broker, complete all the necessary papers, and, with any other documentation they may want, visit their office to start your account. Did you realize that you may genuinely get started with minimal capital? You may invest between PHP 5,000.00 and PHP 10,000.00 to begin stock trading in the Philippines.
After successfully creating your online trading account, you will be required to make an initial deposit. Remember that there is no minimum monthly funding requirement for your trading account; it is entirely up to you how you choose to finance.
However, the amount in your account will decide how much you may spend on stocks.
There are several stock brokerages from which to pick in the Philippines. Here is a list of the businesses’ retail investors.
- Col Financial
- BPI Trade
- Regina Capital
- First Metro Securities Brokerage Corporation
- BDO Securities
- Regina Capital
- RCBC EZ Trad
- Timson Securities, Inc.
As an OFW, you may complete the following on COL Financial:
Step 1: Create a CitisecOnline account (now called COL Financial).
- The minimum investment for COL Starter is P5,000
- The minimum investment for COL Plus is P25,000
- COL Premium – Minimum investment requirement of P1,000,000
Please note that if you begin with P5,000 and your total balance in COL Financial rises to at least P25,000, you may contact COL Financial and request an upgrade to a COL Plus account.
Complete the COL Financial Application Forms in Step 2.
Download the COL Application Forms from this link: https://www.colfinancial.com/ape/Final2/home/open an account.asp#fill out our application forms.
Download the Adobe PDF Reader from http://get.adobe.com/reader if you cannot view the PDF file on your computer.
After opening the PDF file, please PRINT it and complete it using a ballpoint or ink pen.
Step 3, Prepare the Additional Documents:
For Filipino OFWs, as you are Filipino citizens:
- Copy of one (1) valid government-issued identification card IMPORTANT: Signature and photograph must be legible.
- Statement of Account – Recent, no later than three months ago
- The other varieties (such as Resident Foreigners, Non-Resident Foreigners, and In-Trust-For Accounts)
Step 4: Submit the Required Forms and Documents
The COL Enterprise Center
Philippines 1605 2403-B East Tower, PSE Centre Exchange Road, Ortigas Center, Pasig City
*Once all conditions have been met, a COL Financial sales representative will contact you through phone or email to tell you of your COL Account No. And application status.
Step 5: Please WAIT for notification from COL Financial that your application has been approved.
Step 6: Make a Deposit
After COL Financial notifies you that your application was accepted and provides your COL Account Number, you may fund your account using online banking (BPI, BDO, Metrobank).
(6. Why market mistake should be not bothering to you? )
7. What is the set up in position trading, and what are the examples for good position trading?
Position trading is a method in which traders follow the trend on D1 and more extended periods to open positions. Working with long-term market movements will reduce the effect of individual traders’ and institutional investors’ price noise and local speculative manipulations. The profitability of position trading methods could be better. However, position traders are not required to watch the chart constantly, and position trading tactics may be utilized in addition to others.
Position trading is a long-term method that requires the trader to hold an asset for weeks or months instead of hours or days. This investing provides an alternative to trading options with a short-term horizon. Although position traders often maintain their positions for extended periods, they might move more quickly. Instead of buy-and-hold investing, position investment allows investors to take short and long positions.
Forex position trading is a method in which traders use long-term timeframes and maintain long-term positions. In addition, position traders abandon transactions before the weekend, holidays, or during periods of reduced liquidity. Position trading is a long-term trading method often linked to targeting investing and swing trading due to their similarities.A position trader is a trend follower who enters trades on local corrections and holds them for as long as feasible. As with every trading method, position trading has its quirks, benefits, and downsides.
What are the advantages of position trading?
When the published quotations on tablets during the early stock market period, positional trading allegedly developed into a full-fledged trading method. Due to the inability of the current communication channels to offer timely data updates, short-term trading was technically impossible. Position trading entails capitalizing on a strong long-term trend while avoiding price noise – short-term market fluctuations. The waiting period might be longer than a year, but this is unusual.
The position trading method recommends spotting the commencement of a trending movement on a period beginning with one day (D1). Typically, a long-term trend starts with an essential element, such as an extensive news article. A position is kept until the subsequent reversal of the global trend.
The times when day traders earn gains are the times when position traders experience uncertainty. If a swing trader or position trader does many deals in a single day, a position trader conducts just a few trades every month. Positional trading is comparable to swing trading, long-term investment, and trending methods. None of these trading platforms have defined limits and stringent market conduct guidelines. Flexibility and a compelling mix of currency trading tools and tactics are the keys to success.
Principal characteristics of position trading
Trades are entered in accordance with the daily, weekly, or monthly trend.
Position traders often disregard local corrections since they do not follow the chart throughout the day. However, combining position and swing trading may improve the technique’s effectiveness.
Stop orders must protect the transactions (in investments, for example, stops are not used).
Typically, the stop-loss distance is large so that the position is not closed by the local correction. Consequently, one of the most important criteria of position trading risk management is that the amount of your deposit and the number of your trades should enable you to survive rather severe market declines. Using a trailing stop, you may secure the locations.
Frequently, position traders use fundamental analysis. During a crisis, traders might gain from short positions.
Alternatively, position traders might use wave theory to identify local bottoms and wager on a worldwide market rebound. Local fundamental events (economic data publishing or news releases) have only a short-term impact on the trend; hence, they are disregarded.
Let’s summarize the distinctions between sorts of traders:
- The trader who executes transactions within minutes or hours
- A position trader buys and holds until the trend peaks before selling.
- Buy-and-hold investor: invests for the long term.
There are no complex restrictions on the duration of the hold. For a single asset, dependent on the swap size and volatility level, it is sufficient to maintain an open position for three to five days (until the weekend). The following is a distinction between position and swing trading: In a long-term trend, swing traders identify corrections and only capture a portion of the global movement. In contrast, position traders maintain their positions throughout the whole price trend. Profiting from the blue chips or the U.S. stock indexes is a classic example of position trading. During times of global economic prosperity, the U.S. stock market indices rise consistently, but during times of crisis, they fall precipitously.
A position trader often makes 1,000 to 2,000 pips on a trend over two to three months.
Considering swap fees and risks (the need to pay for lost transactions) and the possibility that it can only sometimes identify a strong trend, the average daily profitability is lower. However, quick money only exists in some places. Let’s revisit the prior illustration. On the bull trend of U.S. stock indexes in 2019, one might have made more than 25% annually. One may have earned a comparable amount of money on their decrease in early 2020. Is it large or small? You are free to decide.
In addition to swaps, a position trader must also closely adhere to the risk management requirements, which are as follows:
- The total position volume can be at most five percent of the initial investment.
- The overall risk for all trades should be at most 15 percent of the initial investment.
- The suggested stop loss distance is 100-200 pips, which equates to one three days of typical volatility. A shorter stop loss distance might increase the frequency with which positions are closed by a stop loss.
A stop loss of 15 to 20 pips for day trading is sufficient. If the minimum transaction volume is 0.01 lots and the pip price of */USD pairings is 0.1 USD, the risk should be $10-$20 instead of $1.5-$2.0. Consequently, the minimum deposit amount rises. Some sources suggest a maximum leverage ratio of 1:10 or 1:20. Permit me to remind you that, when appropriately utilized, leverage does not raise risks but rather helps you to boost transaction volume. In turn, the transaction’s magnitude impacts the pip’s value. It does not matter if $1,000 is leveraged at a ratio of 1:1 or $10,000 is leveraged at a ratio of 1:1000.
The transaction volume influences the pip value, and it must be such to comply with the risk management standards. Here, leverage is essential.
Example. I add $135 to my initial investment to create a EURUSD position at the exchange rate of 1.0900. The minimum lot size is 0.01, and each pip is worth $ 0.10. With a stop-loss of 200 pips, I risk losing 200 * 0.1 = $20, or 14.8% of my account balance. The criteria for the absolute risk of all open positions are satisfied. To initiate a 0.01-lot stake, I need $1090. In other words, even with a leverage ratio of 1:10 (135 x 10 = 1350), they cannot reach the 5% criterion. I use a 1:200 leverage. The broker freezes the client’s money in 1090/200 dollars or 4.03% of the initial deposit. The standard has been met. Have no fear of leverage! Leverage is a position trader’s primary tool when utilizing lengthy stop-loss orders.
Technical Analysis for Position Trading
Stock and commodities market assets are the most advantageous assets for long-term position trading on weekly and monthly timeframes. Additionally, currency pairings may move in a long-term trend, although at shorter daily intervals. Currency exchange rates are the weighing scales for national economies. And depending on their economic growth, the scales tip in one way or another, generating a short-term trend and a consolidation range over the long run.
In this context, the phrase “short-term” is relative since we are discussing extended periods. In other words, a weekly trend on a 2-year chart might be considered short-term.
Tools for technical analysis in position trading
Moving averages. The traditional signal for validating the trend. On daily charts, for instance, two EMAs might be used. Trending candlestick formations Both reversal patterns and psychologically-based trend patterns perform well in position trading. Long-term trends are dictated by enormous capitals that do not seek to benefit from speculations and prefer round levels. If three consecutive candlesticks mark the first three weeks of the month in the same direction, the fourth and final candlestick should close similarly.
Levels. The guidelines for designing levels for many periods are the subject of a different article. Large investors influence levels in speculative short-term trading, and price noise disrupts the regularities. Price channels and levels are independent strategic instruments in positional trading. Set a specific duration for each pair and interval. I like using M.A.s with short breaks of 15 to 20 on daily timeframes. Although oscillators are seldom utilized in position trading, they may use them to indicate the beginning of a trend.
Since early 2019, oil prices have fluctuated within a relatively limited range. Oil barely touched $74 and, after a brief sluggish decline to $58, recovered to the $60-$70 area. As I have previously indicated, a strong fundamental element is the best starting point for a position trader. The oil market has received sufficient basic information in the past fifteen years. I am concentrating on the first months of 2020.
In January, the price surpassed the heavy resistance level it had been approaching since 2019. For a position trader whose trading is predicated on solid levels, it hints at an imminent trend reversal unless other fundamental elements support further rise.
The following occurrences took place in January 2020:
- In Wuhan, China, there are significant wildfires and the first symptoms of a coronavirus outbreak. The OPEC produced a study predicting a fall of 200,000 barrels per day in world oil consumption (down to 1 million).
- The United States and Iran/Iraq engaged in a geopolitical confrontation, followed by an assault on military columns and the breakdown of nuclear accords. The United States and China have yet to make much headway in settling their protracted trade disagreements.
- The price increase is unlikely to continue since a sell signal came during the price reversal and the resistance level’s reverse breakout (green dot). The goal level is the degree of resistance (blue dot).
After the price approaches the support level in late December, the issue of whether the decline will continue or the price will turn upwards arises again. I consider essential elements: As the fear persists, the illness becomes a pandemic and spreads globally.
Disruption of transport and commercial ties, decrease in production, and lockdowns (reduction in consumption) led to an oil supply glut on the world market, which would not sustain a price increase.
There is no cause to terminate employment. Next, the news that the OPEC accord failed further decreased the price. After the oil price surpasses $30, I have many options for exiting the trade:
- Low-priced oil is unprofitable for oil-producing nations. Thus sooner or later, it will be forced to revert to the OPEC accords.
- The last time the price was this low was in 2016, and waiting for the oil to reach $20 is scarcely worthwhile.
- The epidemic will soon diminish, and it is best to quit the trade in June-July when the globe returns to normalcy, and the reverse trend begins.
- You can now see how a basic position trading technique based on solid levels and fundamental research might provide more than 100 percent three-month profit.
You may measure the risks of a positional trader using fundamental research against XAU, which is generally regarded as a haven.
In principle, the March 2020 crisis should have resulted in an influx of capital from the stock market and oil into gold and gold assets. As a result of the U.S.-China trade war, the price of gold will reach its pinnacle in early 2020. In March, however, with the decline in oil prices and the failure of the OPEC pact, gold followed the decline of other assets, thereby contradicting the investment idea.
Even if the gold price rebounded afterward, many long positions were canceled by stop losses during the panic. This example demonstrates that trading based on a fundamental understanding of the long-term trend is only sometimes correct; consequently, you must place protection orders. In the spring of 2020, uranium prices reached four-year highs due to the crisis. Analysts indicated that several of the industry’s top companies had reduced mining and output due to consistent demand.
Position trading may be advantageous in numerous circumstances:
- If you wish to benefit from fundamental global variables and are willing to maintain the trade open for many days/weeks to several months.
- If you have a large enough deposit to endure significant drawdowns and cover swaps.
- If you use intraday and short-term trading tactics, position trading is a different method for diversifying your risk.
8. What are the comparison to US and PH in stock market, enumerate at least 20. )
9. What is the best stock screener that you can use in PH? 5h words check why.
The best Stock Screener in Philippines most trader used is XM Global (FSC) because –
The XM broker began operations in 2009 and now serves customers from over 196 countries with a support staff that speaks 30 languages; it is one of the most reputable Regulated Brokers. The main office is based in Cyprus and is controlled by CySEC, but the offices actually address worldwide demands and services via Australia, the United Kingdom, Belize, and Greece. They are also authorized in Dubai and the MENA area.
At XM, there are around 1.5 Million Traders and investors that have chosen broker offers and services, and there are several complex trading solutions that are also suited for novice traders. Yes, we can conclude that XM is a reputable broker with decent trading conditions and a high reputation, as XM strives to provide its customers with one of the finest user experiences in the market.
In general, all account creation, management, depositing/withdrawing, and trading processes are clear, uncomplicated, and transparent, as we shall see in further detail later in this XM review.
Pros and Cons
At XM, an account may be started with as little as $5, regardless of trading experience or net capital. Additionally, XM’s worldwide approach and discovery of new markets, as well as its seminars and research materials, make it possible to start a trading career.
Based on the findings of our experts, XM is regarded as a trusted broker with decent trading conditions appropriate for a variety of traders, including European customers, and outstanding service that makes XM ideal for novices with quality education and one of the lowest total deposit requirements.
The XM Overall Ranking is 9 out of 10 based on our testing and comparison to 500 other brokers; check Our Ranking compared to other well-known and industry-leading brokers below.
XM Alternative Brokers
However, XM does not provide a vast selection of trading instruments to European customers since they are mostly all supplied on a CFD basis, while the selection is wider and more diverse for foreign traders. Also, Spreads are within the average range; nevertheless, certain Brokers may have slightly smaller spreads than average.
See in-depth Alternative Broker Evaluations:
- FXTM – Good for Novices and Reasonable Fees
- Dukascopy – Outstanding for Stock and Futures Trading
- AvaTrade – Excellent Trading Tools and CopyTrading
Global traders are attracted to XM’s highly competitive trading conditions and an extensive array of services, which are centered on the interests of the client. As the firm has grown, so have its accolades; formerly, the company won prizes on occasion; today, it receives them on a regular basis. XM has acquired several prestigious awards for industry accomplishments, such as Best Forex Broker for Europe, Most Trusted Broker, etc., in addition to its excellent performance and reputation within the trading community.
Is XM secure or a fraud?
No, XM is not fraudulent. Since XM is regulated and licensed by numerous top-tier financial regulators, such as the FCA, ASIC, and CySEC, we believe XM to be a trustworthy Forex and CFDs broker. Therefore, trading is safe and low-risk.
Is XM Broker licensed?
XM Collection is a group of authorized online brokers that was founded in 2009 as Trading Point of Financial Instruments Ltd and is governed by the Cyprus Securities and Exchange Commission (CySEC). Trading Point of Financial Instruments was founded in Australia in 2015 and is governed by the Australian Securities and Investments Commission (ASIC) (Also like FP Markets). Read more about why trade with Australian Brokers via the link to the regulatory duties that are met at a sustainable level as we observe through our XM Review.
However, it is important to note that XM Global Limited, which was founded in 2017, is regulated by the Financial Services Commission, enabling it to provide its services worldwide. Despite the fact that IFSC is an offshore license that does not really apply stringent oversight of trading procedures, the XM’s extensive regulation makes it a viable option.
Is XM a reputable screener?
The fundamental purpose of the legislation is to ensure that the trader may engage in transactions with confidence, knowing that client funds are managed in accordance with the toughest regulations, with little danger of fraud or unfair usage. The compliance of XM’s trading environment with regulatory requirements makes it a trustworthy broker.
In addition, client money is held in investment-grade banks and segregated accounts covered by the Investor Compensation Fund, which guarantees the recovery of up to PHP 100,000 in the event that the broker becomes bankrupt (note that the coverage scheme depends on the particular entity). In addition, you will get a Negative Amount of Protection as a trader, so there is no possibility of losing more than your available balance.
Refer to our opinion about XM Reliability:
Our Ranked XM Trust Score is 9 out of 10 due to our exceptional reputation and service throughout the years, as well as our dependable top-tier licenses. International trade is the sole feature accessible through the offshore entity.
Depending on the account type and the organization under which XM complies with regulatory requirements, leverage ranges from 1:1 to 888:1. To determine the leverage level you are permitted to employ, and you must always refer to the terms of your residence since different XM companies use different terms owing to regulatory requirements. Also, note that leverage varies based on the traded financial instrument:
XM provides a maximum leverage of 30:1. This Leverage relates to the EU-regulated firm. Therefore European customers of Trading Point Cyprus may express a maximum leverage of 1:5 for Cryptocurrencies and a maximum leverage of 1:2 for certain items.
The Australian entity of XM and its laws permit up to 500:1 leverage, whereas the international company provides 888:1 leverage.
Choose your leverage and trading entity wisely, which you can read more about in the XM education section; for EU customers, check the image below.
Similar to the interbank forex market, XM uses variable spreads and does not prohibit trading during news announcements. XM’s fixed spreads are wider than variable spreads and more adaptable to various trading methods. This implies that all trading expenses are included in the spread, and the narrowest spreads are offered.
Also, when choosing a broker, it is essential to evaluate not only the spread but also non-trading costs, withdrawal fees, and any other relevant charges. To get a complete picture, compare the following fees based on our research.
- XM Fees are rated as average and modest, with an overall score of 8 out of 10 based on our testing and comparison to more than 500 different brokers. The majority of currency pairings include typical spreads, extra costs such as financing fees, and rollover Deposits and Withdrawal fees.
- XM’s financial transactions are also handled in a customer-centric manner, with several supported payment methods available to traders in all regions. XM launched a local bank transfer option, which is a great bonus for many countries since it lets the account be funded using local banks and currency without incurring any conversion fees.
We assessed XM Funding Methods as Excellent, with an overall score of 10 out of 10. The minimum deposit is among the lowest in the market, and fees are either nonexistent or minuscule. In addition, there is a wide array of approved financing ways, depending on the company you trade with.
XM allows a variety of Deposit Methods, as seen in the screenshot from our account creation below.
- Credit Cards
- Wire transfer and Local Bank Transfer (available in some regions)
- Neteller, Moneybookers, Skrill, Western Union, and other electronic wallets
XM minimum deposit
The XM Minimum Deposit is a mere $5 for a Micro Account or a Standard Account. If you desire to trade with a Zero account, the minimum deposit is similarly competitively priced at $100. However, the amount changes based on the selected payment method and the validation state of the trading account. However, you may read and locate all relevant information in the Members Area.
The same alternatives are available for withdrawals as for deposits, including Bank Wire transfers, e-wallets, and Credit Debit cards. XM imposes no withdrawal fees and charges no costs for deposits or withdrawals. The XM firm has covered all transfer costs, including those for e-wallets, major credit cards, quick account funding, and wire transfers, with no hidden fees or commissions.
Moreover, whereas the majority of brokers still charge for wire withdrawals, XM deposits and withdrawals of more than $200 USD conducted through wire transfer are also exempt from costs.
How can I make a withdrawal from my XM Account?
To withdraw cash from your XM trading account, just follow the instructions below, and feel free to contact customer care with any questions or concerns; we found them to be helpful.
Withdraw funds in stages.
- Enter your login information
- Choose Withdraw Funds from the menu tab
- Enter the amount withdrawn
- Select a withdrawal method
- Complete the electronic request with the required information; and, Confirm and Submit Withdrawal Information
- Check the current withdrawal status through your Dashboard
How long is the XM Withdrawal process?
While the XM Accounting team handles withdrawal requests within 1-3 business days, the amount of time depends on the nation to which the funds are remitted since different restrictions and regulations apply. The average bank inside the EU will need three business days for the funds to be deposited into your account; however, depending on the payment method you select, certain methods or institutions may complete the transaction practically immediately or take longer.
Trading Platforms of XM
Regarding trading software, XM customers have access to the popular and well-developed trading platforms MetaTrader4 and MetaTrader5 in addition to their own platforms.
Platform Ratings XM maintains a strong presence on the two most prominent industry platforms, MT4 and MT5, for traders’ benefit since these platforms are well-known and enable you to download a variety of extensions or have access to in-depth instructions on how to utilize tools. Therefore, platforms getting excellent evaluations owing to their worldwide renown are always advantageous to the offers of brokers.
Compared to over 500 other brokers, XM Platform is graded Excellent with a rating of 10 out of 10. XM provides a selection of industry-standard platforms, including MT4 and MT5, as well as its own platform with exceptional research, superior tools, copy trading, Robot Trading, EAs, and quality execution.
All platforms are combined with a complete site of technical analysis, indicators, and comprehensive tools, as well as stop or trailing orders, and may be accessed directly from a single account and in several versions. So you can access XM trading simply by using a browser and logging into Web Trading. Read below for our suggestion and review of the platform’s pros and cons.
Desktop Trading Platform
Although XM made the software more powerful and adaptable with 16 Trading platforms, which accommodate any device, including online, mobile, and multiple account trading, if you choose the Desktop platform or other versions to trade, you have access to all account features and may complete the trading procedure with ease.
Due to the fact that XM utilizes MT4 or its more recent version, MT5, you are able to utilize its robust capabilities alongside automated trading or trading robots. For those who prefer technological trading, there are EAs with unrestricted access to charts, and for those who prefer manual trading, there are also excellent manual trading tools that will aid your strategy. Overall, therefore, all demands and trading requirements are met, are at a very sustainable level, and may be suitable for various types of traders.
Look and Feel
MetaTrader is renowned for its user-friendly interface, and its charting capabilities are among the most robust in the industry. Consequently, you will share our appreciation for its aesthetics and features.
Trading Platform Mobile
XM MT4 Android and iOS applications, as well as XM MT5 apps, will provide you with access to a trading account with complete account functionality. MT4 and MT5 programs also provide superior charting with three chart types, over thirty technical indicators, and a complete trading history log. So
How can orders be placed using XM?
As MT4 and MT5 also provide one-click trading, the procedure of placing an order is relatively easy. On all platforms, you may select between pending orders and market orders. There are also risk management methods accessible, which you should never neglect if you want to be successful.
Compatible with a Variety of Trading Strategies for Traders Preferring MT4 and MT5 Platform Currency Trading and CFD Trading
- As a result, we believe that XM offers one of the most accommodating propositions in terms of expenses, trading conditions, and prospects. XM’s selection of trading instruments was considerably more limited in the past, but it is now one of the company’s greatest strengths owing to its expansive offering.
In conclusion, XM is a well-regulated broker with many highly regarded licenses that provide fully transparent conditions and is exceptionally customer-friendly. A policy of no re-requotes and no hidden fees or commissions, in addition to negative balance protection, is a great benefit. As a result, XM is well-liked among trading platforms and appropriate for all types of traders, including novices, due to its excellent real-time market execution and overall ease of use.
10. How to navigate stock market using mobile phone.
As smartphones grow more integral to our daily lives, it is unsurprising that applications have been created that enable stock trading from a mobile device. Traders have been using their mobile devices to monitor the stock market on the go, but more and more transactions are now being conducted on mobile devices. As with everything, there are advantages and disadvantages, and we have provided you with our best suggestions for trading on your mobile phone and more information about some of the most popular trading applications.
Today’s hyper-dynamic environment compels us to remain mobile. All procedures are accelerating, and as many mundane jobs as possible are being automated. The number of everyday responsibilities has multiplied exponentially over the last several decades, and the Internet and technology have provided us with new options.
Mobile apps are very popular since they enable us to do various tasks on our mobile devices.
We use a smartphone application to call a cab, order meals for the workplace or home, book a hotel room, take an academic exam, study a foreign language, or purchase things. The range of mobile application options is almost limitless. Additionally, it is really handy since our device is constantly within reach. To attract consumers, businesses strive to provide users with access to their services and goods around the clock. The investment market has followed the example of innovative corporations. Mobile applications for online trading are now functionally equivalent to their desktop versions.
A contemporary investment app is a fully-fledged trading platform that gives all the tools and alternatives for online investing and portrays the true image of the stock market via its price charts, news section, and market analysis.
The mobile version of a trading platform should have some elements that guarantee its functioning is seamless and error-free. After conducting a comparative analysis of mobile applications offered by the brokerage market in the Philippines and taking traders’ requests into account, we’ve selected the distinguishing characteristics we believe are most important when selecting the best mobile trading platform in the Philippines. These include app installation, ease of depositing and withdrawing money, availability of essential tools for research and trading, accuracy and timeliness of presented information, access to real-time quotations charts, and information accessibility.
Simple and easy to download and install
The first step is to download the mobile application for the trading platform. This is quite simple and can be completed in a few minutes. Visit the official website of your preferred broker and search for a section detailing the different trading software versions. If your brokerage business provides a mobile version of the trading platform, a link to download the app will appear instantly; take advantage of it. Or, download the trading program from the mobile device’s official playmaker by typing the brokerage firm’s name in the search box.
Once the software has been downloaded, the platform shortcut will appear on your mobile device’s screen.
- If you are a registered user who has already used the platform’s desktop version, you just need to click “authorize” and input your username and password to activate the app robot.
- If you are new to the system, choose “register” and provide the required information. A link will be automatically emailed to the email address you provided at registration to confirm your registration. You may then use the app.
Online trading platform graphical user interface
Developers of trading apps strive to make the software’s interface as user-friendly as possible without compromising the functionality and quality of the services offered.
The programs are created so that even a rookie trader can browse and conduct the necessary activity easily. The buy and sell buttons are always large and brightly colored, and the selection of assets is located on the top toolbar as a drop-down list to facilitate searches. Alter the display orientation to vertical or horizontal. Choose a bright or dark backdrop for your computer’s desktop. Choose your chart colors and kind of presentation; most platforms provide line, candlestick, bar, and Heikin-Ashi charts. The left-hand toolbar of the site has other areas such as ‘Training,’ ‘Market Analysis,’ a general portfolio, a trading chat, and news. Optionally, you may display these parts alongside the quotation chart.
You may also configure alerts about market changes, which will be delivered to you through push messages or email under the options area.
A range of trading and analytical tools are becoming accessible.
A trader’s online trading platform is a potent instrument since it provides handy and practical tools for market analysis and trading in addition to conventional functions. The mobile version of the program must have all of the capabilities that the user’s trading platform provides.
Let’s examine some of them in further depth.
Technical analysis equipment
Technical analysis is a collection of techniques that enables traders to predict future price movements. The necessity for one or more indicators for technical analysis will depend on the period on which market trend analysis is conducted and the technical analysis methodologies used. Indicators of technical analysis are numerous mathematical functions of various factors (price, trading volume, etc.) that reveal the most likely direction of future price movement to the trader. Thanks to recent innovations and enhancements to online trading platforms, current traders may use indicators with relative ease. It is just to push a few buttons on the trading software’s control panel to link one or more of them to a chart of any financial instrument. The system will automatically compute all parameters and provide an indication chart that is simple and easy to read.
A trader needs to understand how to evaluate the data on the chart to identify effective buy/sell trading signals.
Instruments for basic study
Technical indicators are so-called because they rely only on statistical indications of trading (markets) and ignore the fundamentals of traded instruments, such as the earnings and revenues of corporations whose securities are exchanged on the stock market.
Unlike in the past, when mobile apps featured just fundamental features, you may now use a mobile trading application to monitor stock market news on your mobile phone. This is quite handy since your mobile phone is constantly with you, and you do not need to independently check news websites. In the platform’s news stream, you will discover all the big and significant economic events that directly or indirectly affect the price of assets.
Browse news by a business or configure a general news feed and alerts. In this manner, you will constantly be aware of global happenings.
Current information is a trader’s ace in the hole. Keeping updated on various economic and political developments can assist you in analyzing their influence on the investing market and making accurate forecasts for the future.
Instruments for trade
Traders make extensive use of the platform’s trading-related capabilities. Stop orders, stop loss, and take profit, with which you may define higher and lower transaction limits, are quite popular among traders. If you approach these limitations, you will immediately terminate the transaction. The ability to place stop orders is indicative of a solid foundation. Using this tool, you may safeguard your transactions from sudden price swings. Another useful function is the multiplier. With the multiplier, you may activate your leverage in two clicks; just pick the multiplier. You should only use leverage if you have appropriate trading expertise since leverage raises both your investment amount and your potential loss.
EXAMPLES OF MOBILE APPS
Street Smart App
Step 1: Download the software
Access the app store on your phone.
Download the app by searching for “Street Smart.”
Step 2: Sign in with your account details
Step 3: Familiarize yourself with the features
Your dashboard displays your account balance, losses, winnings if you are trading, your open orders, and whether or not they have been placed. The dashboard’s center shows a snapshot of the entire market, gainers and losers, the headlines, and the Idea Hub.
As you can see, you may click on the various sections to get a high-level overview of the S&P 500, NASDAQ, etc. You may also click “news” to see market-affecting events. In “Idea Hub,” you may see Charles Schwab’s suggestions to account holders.
Click the “Deal” button at the bottom of the page to execute a trade. Enter the ticker symbol of the security on which you want to trade. Observe that the data is being sent in real-time. Thus the numbers are always changing.
You may choose call, put, or more choices.
Then you choose the desired action (BTO, STO, etc.). You may modify your information if you like. To execute the transaction, click “Trade Compute” (which will calculate your loss ratio) or “Preview.”
I especially enjoy this software’s versatility; for instance, you can see the charts by clicking the “menu” at the bottom. Now, there are a plethora of indicators that you can add to the charts to enhance their analysis, add your crosshairs for a more focused look, and much more.
You can also build “watch” lists from the bottom menu, which includes any stocks, you monitor. This software gives you access to many other capabilities, so there are no excuses when it comes to trading. You may trade while traveling.
PSE EASy mobile app
The Philippine Stock Exchange, Inc. (PSE) has introduced a mobile application called PSE EASy. The application enables small local investors (LSIs) to acquire the most recent IPO shares on the stock market. In June 2019, the PSE EASy application was initially released. According to PSE, the app was created to “boost LSI participation in IPOs and broaden the program’s scope.” With its website and mobile application, PSE hopes to extend its investor base. And this is beyond its current reach of 60 provinces and almost 20 nations.
Interested investors must first register on the PSE EASy website before using the app to subscribe to shares whenever there is an initial public offering (IPO).
PSE President Ramon S. Monzon further said, “For the time being, the website and app are just for IPO subscriptions. We intend to leverage this digital solution by integrating a payment system and use the platform for further services.” The PSE EASy app is currently only accessible to Android users. PSE has announced that the mobile application will soon be available for iOS.
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