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trading

Turkey Crisis Rattles Stock Market

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Hello traders everywhere. Geopolitical events have a way of popping up when you least expect it. Case in point, we were looking and waiting for the U.S. stock market too high record highs with the S&P 500 within a whisker of hitting its record only to wake up this morning to a sharp down move on the Turkey news. That news has ended what looked to be the S&P 500’s six straight weeks of gains, it’s first such streak since November, with the S&P 500 currently floating between a weekly loss and gain.

The DOW was down over 200 points in early trading and has backed off the lows a tad but now posting a weekly loss while the NASDAQ remains in a strong position to close out the week in positive territory.

The Turkish lira tumbled to a record low against the dollar due to concerns over the country’s economy and a deepening rift with the United States. President Trump doubled tariffs on aluminum and steel imports from Turkey, deepening the currency’s losses and raising concerns that the crisis could weigh on other economies. In turn, that led U.S. investors to safe-haven assets, with the dollar rising to a 13-month high, up +1.3% for the week and U.S. bond yields slipping to a three-week low.

Gold continues to head lower for the week losing -.35% and maintaining its long-term downtrend with five straight weeks of losses. Even though crude oil is up today, +1.23%, it is posting its second straight week of losses with a -1.15% loss this week.

After issuing a new red weekly Trade Triangle on Wednesday Bitcoin posted a gain on Thursday and is relatively unchanged today, but it will post a weekly loss of -7.9% after losing a little over -14% last week.

Key Levels To Watch Next Week:

S&P 500 (CME:SP500): 2,796.34
Dow (INDEX:DJI): 24,988.31
NASDAQ (NASDAQ:COMP): 7,933.31
Gold (NYMEX:GC.Z18.E): 1,225.60
Crude Oil (NYMEX:CL.UN18.E): 69.37
U.S. Dollar (NYBOT:DX.M18.E): 93.87
Bitcoin (CME:BRTI): 8,476.34

 

Source:
INO.com and MarketClub.com

What is a “CFD’s” (Contract For Differences) ?

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What is a ‘Contract For Differences – CFD’

A contract for differences (CFD) is an arrangement made in a futures contract whereby differences in settlement are made through cash payments, rather than by the delivery of physical goods or securities. This is generally an easier method of settlement, because both losses and gains are paid in cash. CFDs provide investors with the all the benefits and risks of owning a security without actually owning it.

BREAKING DOWN ‘Contract For Differences – CFD’

The CFD is a tradable contract between a client and a broker, who are exchanging the difference in the current value of a share, currency, commodity or index and its value at the contract’s end.

 

Advantages of a Contract for Differences

CFDs provide higher leverage than traditional trading. Standard leverage in the CFD market is as low as a 2% margin requirement and as high as a 20% one. Lower margin requirements mean less capital outlay and greater potential returns for the trader. Also, the CFD market is not bound by minimum amounts of capital or limited numbers of trades for day trading. An investor may open an account for as little as $1,000. In addition, because CFDs mirror corporate actions taking place, a CFD owner receives cash dividends and participates in stock splits, increasing the trader’s return on investment.

Most CFD brokers offer products in all major markets worldwide. Traders have easy access to any market that is open from the broker’s platform. Because of stock, index, treasury, currency, commodity and sector CFDs, traders of different financial vehicles benefit.

The CFD market typically does not have short-selling rules. An instrument may be shorted at any time. Since there is no ownership of the underlying asset, there is no borrowing or shorting cost. In addition, few or no fees are charged for trading a CFD. Brokers make money from the trader paying the spread. A trader pays the ask price when buying, and takes the bid price when selling or shorting. Depending on the underlying asset’s volatility, the spread is small or large and typically fixed.

 

Disadvantages of a Contract for Differences

Paying the spread on entries and exits prevents profiting from small moves, while decreasing winning trades and increasing losses by a small amount over the underlying asset. Since the CFD industry is not highly regulated, the broker’s credibility is based on reputation rather than life span or financial position. Because each day a trader holds a long position costs money, a CFD is not suitable for buy-and-hold trading or long-term positions.

 

The 3 rules of trading which everyone should know

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1. the trading is a game of skill. And, as in all game, the more training, better you will be.

Some think that it is a Lottery, a casino. Lie.

Of course, you have a component of gaming (like most of the games), but it is essentiallyability. With the sufficient number of moves, it shows perfectly who knows and who not.

And it is better to take it as a game, because often you have to lose to learn how to win .

Even When you’re a great player, you can not escape losses frequently. But, overall, you win money if what is the problem?

 

2. 95% of traders lose money because 95% of traders are not maintained long enough doing things well.

Can you say higher, but not clearer:

People do not hold enough time doing things right.

Doing things well costs. It is not easy.

And, above all, it is much less fun who do things wrong. The temptation to deviate from the rules of trading is great. And clear… the amateur is on the way.

 

3. the novice traders die because they do not incorporate capital management; amateurs because not worry about work outputs.

Newbies not calibrated well how much money involved and how much money to risk in their operations. Even having good instincts and good luck (if you’re a novice not can talk about have the ability), newbies end up destroying their accounts. And not to measure risk is to blame scrupulously.

The amateurs in this already do not fall; but they have another failure that characterizes them: they think that the key is to know what to buy; When in fact, what you would have to worry about is when selling it .

The outputs are, by far, the most important of its technique. And doing it well is crucial.

What you used to buy and not knowing how to hold a big rise?

You why buy and not knowing how to sell before the collapse?

This, of course, also you can learn and train. There is the wrong way of doing these things, just that there is the right to buy and sell way. But there are to know it, and above all, must know how to stick to it.

If you consider yourself an newcomer, and still not win money in a manner consistent, the bigquestion you have to ask yourself is not know the correct way of buying and? sell, or is that am not being capable of stick to it?