logo
logo
Sign in
Ramesh Karki
Ramesh Karki is a content cum copywriter and having 8 years of experience in the finance industry.
Followers 0 Following 0
Ramesh Karki 2021-05-29

Particularly among individual investors.As we saw in the previous lesson, if you've got a pension plan, the chances are you're already investing in shares in some capacity.

Stock Recommendations Total Company ValueA share is a unit of ownership in a company.So, if a particular company is worth £10,000 and has issued 2000 shares, each share would be worth £5 (10,000 ÷ 2000).As the share price fluctuates, so does the value of the company.

Investors who buy shares in a company are hoping it will grow in value, enabling them to sell the shares at a higher price.https://www.gold-pattern.com/en  QuestionCompany ABC is currently worth £1,200,000 and 3,000,000 shares have been issued.

For example, they may need extra cash to expand into other territories, or launch a new line of products.share recommendationsIf the funds are used wisely and the company becomes more profitable as a result, the value of the share price - and therefore the business - should rise.This means the company and its shareholders are heavily reliant on each other.

The company needs shareholders to raise funds, and the shareholders hope the company will use their investment to grow the business - so they can make a profit.Why do share prices move?Share prices can stay fairly stable for months, or move rapidly.

Conversely, if supply is greater than demand then the price will fall.gold signals share recommendationsSupply and demandHow levels of supply and demand move prices?Supply and demand can be influenced by many factors, but the main two are:EarningsThese are the profits a business makes.

collect
0
Ramesh Karki 2021-05-29

Financial markets are full of surprises, letting some get enormously rich while others (who are in majority unfortunately) lose all their capitals.

Earning a lot of money dealing in volatility arbitrage is not rocket science.

Many great traders and financiers became famous only after they managed to find their way in trading after a series of failures.https://www.gold-pattern.com/en  Jesse Livermore is an example of such trader.

Improving his skills he soon managed to become more accurate in his forecasts, achieving great excellence.

His abilities made his colleagues call him Boy Plunger and Wonder Boy.

Soon he became popular all over the city and in a month his bets became banned in every betting office in the city, as he almost never lost in betting.

collect
0
Ramesh Karki 2021-05-29

Watching your hard-earned money being depleted from your account is an uncomfortable experience - and it can compromise your decision-making abilities.That's why it's important to decide - right at the outset - where you'll get out if this trade doesn't go well.Rule 1: Always have an exit strategyYou need an exit plan - a strategy for managing the risk of the position, so that one bad trade won't wipe out a significant chunk of your trading capital.

But simply telling yourself where you want to get out may not be enough.Consider the scenario: you head to bed for the night with a position going well, but by the time you wake up in the morning the market has taken a turn against you.Or perhaps you're watching a position while travelling on the train.

But, especially when you're new to the markets and still learning, the rollercoaster of feelings created by losing a trade can have a substantial impact.ExampleLet's say you take a long position and the market immediately starts to rise, putting you into profit.

Finally, you're left with a feeling of desperation.

It's clear that prices aren't coming back anytime soon, and you have no choice but to realise a loss.Stock RecommendationsPrice chartIn this situation, the financial impact certainly stings.

For example, you might feel tempted to rush into a new position without proper consideration, in an effort to claw back your losses as quickly as possible.One easy way to help avoid this issue is to decide where to set your stop before opening a position, and set it up while executing the trade, so your position is never left unprotected.With a stop-loss order in place at your pre-defined exit level, if that price is met you don't have to make a decision about to what to do.

collect
0
Ramesh Karki 2021-05-24

This is a general term for a global network of specific exchanges where shares are bought and sold.For example, the majority of UK shares are traded on the London Stock Exchange (LSE), while most US shares can be found on the New York Stock Exchange (NYSE) or NASDAQ.These exchanges are highly-regulated marketplaces where buyers and sellers come together to negotiate the transaction of shares.

Nowadays, however, this process is almost always conducted online.There are three main types of broker:1.Full-serviceCreate and execute a strategy based on the investment goals of the client - trading on their behalf.High commissionAdvisoryProvide investment advice and recommend specific trades, but leave the final decision to the client.Medium commissionExecution-onlySimply carry out the client's trading instructions, usually via an online platform.

No advice given.Low commissionWhen choosing a broker it's important to consider your knowledge of the markets as well as the amount of time you're prepared to commit to watching your portfolio.

A key advantage to investing in shares is the potential for dividends.

Stock Recommendations Share recommendations A dividend is an amount of money paid to shareholders, representing a portion of the company's profits.

Dividends can compensate for a share price that isn't moving much, giving shareholders an income instead.

collect
0
Ramesh Karki 2021-05-29

If you've ever gone on holiday and exchanged say, pounds for euros, then you've participated in the forex market.

Simply put: Forex is how individuals and businesses convert one currency to another.ForexForex, also known as foreign exchange, FX or the currency market, is the largest financial market in the world.

That's around 100 times more than the New York Stock Exchange (NYSE) - the world's biggest stock exchange.As well as being traded by individuals and businesses, forex is also important for financial institutions, central banks, and governments.

It facilitates international trade and investment by allowing companies that earn money in one currency to pay for goods and services in another.gold signals Who trades forex?There are a huge number of market participants looking to trade forex at any particular time, from individual speculators wanting to turn a quick profit, to central banks trying to control the amount of currency in circulation.However, by far the most significant players in the forex market are the major international banks.

Between them, Citigroup, Deutsche Bank, Barclays, JPMorgan and UBS account for around 50% of global forex trade.Euromoney FX SurveyWhy do people trade forex?Individuals and businesses participate in the forex market for two main reasons:SpeculationThe vast majority of forex transactions are made simply to make money.

This means the person or institution making the trade has no plans to take delivery of the currency, they are just looking to turn a profit on movements in the market.Stock RecommendationsWith major financial institutions always looking to profit from small changes in forex prices, many large trades can occur throughout the day.

collect
0
Ramesh Karki 2021-05-29

What is a 'pip'?Unlike share price movements, which are measured in recognisable units of currency such as pence or cents, forex changes are measured in very small units called pips.For example, if the EUR/USD price moves from 1.20160 to 1.20170, that 0.0001 USD rise in value represents one pip.EUR/USDFor most major currency pairs, a pip represents a one-digit move in the fourth decimal place.One important exception to this is where the yen is the counter currency.

Here the second decimal place is the one to watch.gold signals Stock Recommendations share recommendations GBP/JPYAny extra decimal places shown in the price are known as fractional pips or pipettes.QuestionIf the USD/CAD price moves from 1.19527 to 1.19617, how many pips has it moved by?

What is a 'lot'?Each one-pip movement in a forex price is only worth a tiny amount.

You may also come across mini lots and micro lots, which represent 10,000 and 1000 units respectively.https://www.gold-pattern.com/en  Small investors generally don't have access to such large amounts of money, so many forex brokers allow clients to trade on leverage.

We look at leverage in more detail in the 'Orders, execution and leverage' course.

What constitutes a major pair varies widely depending on who you speak to, but most include the following six which account for over 80% of global forex trade: Currency pair     Currency namesEUR/USD             Euro / US dollarUSD/JPY               US dollar / Japanese yenGBP/USD             Sterling / US dollarUSD/CHF             US dollar / Swiss francUSD/CAD             US dollar / Canadian dollarAUD/USD            Australian dollar / US dollar  Notice that all these pairs include the US dollar, which is by far the single most traded currency in the world.

collect
0
Ramesh Karki 2021-05-29

Particularly among individual investors.As we saw in the previous lesson, if you've got a pension plan, the chances are you're already investing in shares in some capacity.

Stock Recommendations Total Company ValueA share is a unit of ownership in a company.So, if a particular company is worth £10,000 and has issued 2000 shares, each share would be worth £5 (10,000 ÷ 2000).As the share price fluctuates, so does the value of the company.

Investors who buy shares in a company are hoping it will grow in value, enabling them to sell the shares at a higher price.https://www.gold-pattern.com/en  QuestionCompany ABC is currently worth £1,200,000 and 3,000,000 shares have been issued.

For example, they may need extra cash to expand into other territories, or launch a new line of products.share recommendationsIf the funds are used wisely and the company becomes more profitable as a result, the value of the share price - and therefore the business - should rise.This means the company and its shareholders are heavily reliant on each other.

The company needs shareholders to raise funds, and the shareholders hope the company will use their investment to grow the business - so they can make a profit.Why do share prices move?Share prices can stay fairly stable for months, or move rapidly.

Conversely, if supply is greater than demand then the price will fall.gold signals share recommendationsSupply and demandHow levels of supply and demand move prices?Supply and demand can be influenced by many factors, but the main two are:EarningsThese are the profits a business makes.

Ramesh Karki 2021-05-29

If you've ever gone on holiday and exchanged say, pounds for euros, then you've participated in the forex market.

Simply put: Forex is how individuals and businesses convert one currency to another.ForexForex, also known as foreign exchange, FX or the currency market, is the largest financial market in the world.

That's around 100 times more than the New York Stock Exchange (NYSE) - the world's biggest stock exchange.As well as being traded by individuals and businesses, forex is also important for financial institutions, central banks, and governments.

It facilitates international trade and investment by allowing companies that earn money in one currency to pay for goods and services in another.gold signals Who trades forex?There are a huge number of market participants looking to trade forex at any particular time, from individual speculators wanting to turn a quick profit, to central banks trying to control the amount of currency in circulation.However, by far the most significant players in the forex market are the major international banks.

Between them, Citigroup, Deutsche Bank, Barclays, JPMorgan and UBS account for around 50% of global forex trade.Euromoney FX SurveyWhy do people trade forex?Individuals and businesses participate in the forex market for two main reasons:SpeculationThe vast majority of forex transactions are made simply to make money.

This means the person or institution making the trade has no plans to take delivery of the currency, they are just looking to turn a profit on movements in the market.Stock RecommendationsWith major financial institutions always looking to profit from small changes in forex prices, many large trades can occur throughout the day.

Ramesh Karki 2021-05-29

Financial markets are full of surprises, letting some get enormously rich while others (who are in majority unfortunately) lose all their capitals.

Earning a lot of money dealing in volatility arbitrage is not rocket science.

Many great traders and financiers became famous only after they managed to find their way in trading after a series of failures.https://www.gold-pattern.com/en  Jesse Livermore is an example of such trader.

Improving his skills he soon managed to become more accurate in his forecasts, achieving great excellence.

His abilities made his colleagues call him Boy Plunger and Wonder Boy.

Soon he became popular all over the city and in a month his bets became banned in every betting office in the city, as he almost never lost in betting.

Ramesh Karki 2021-05-29

Watching your hard-earned money being depleted from your account is an uncomfortable experience - and it can compromise your decision-making abilities.That's why it's important to decide - right at the outset - where you'll get out if this trade doesn't go well.Rule 1: Always have an exit strategyYou need an exit plan - a strategy for managing the risk of the position, so that one bad trade won't wipe out a significant chunk of your trading capital.

But simply telling yourself where you want to get out may not be enough.Consider the scenario: you head to bed for the night with a position going well, but by the time you wake up in the morning the market has taken a turn against you.Or perhaps you're watching a position while travelling on the train.

But, especially when you're new to the markets and still learning, the rollercoaster of feelings created by losing a trade can have a substantial impact.ExampleLet's say you take a long position and the market immediately starts to rise, putting you into profit.

Finally, you're left with a feeling of desperation.

It's clear that prices aren't coming back anytime soon, and you have no choice but to realise a loss.Stock RecommendationsPrice chartIn this situation, the financial impact certainly stings.

For example, you might feel tempted to rush into a new position without proper consideration, in an effort to claw back your losses as quickly as possible.One easy way to help avoid this issue is to decide where to set your stop before opening a position, and set it up while executing the trade, so your position is never left unprotected.With a stop-loss order in place at your pre-defined exit level, if that price is met you don't have to make a decision about to what to do.

Ramesh Karki 2021-05-29

What is a 'pip'?Unlike share price movements, which are measured in recognisable units of currency such as pence or cents, forex changes are measured in very small units called pips.For example, if the EUR/USD price moves from 1.20160 to 1.20170, that 0.0001 USD rise in value represents one pip.EUR/USDFor most major currency pairs, a pip represents a one-digit move in the fourth decimal place.One important exception to this is where the yen is the counter currency.

Here the second decimal place is the one to watch.gold signals Stock Recommendations share recommendations GBP/JPYAny extra decimal places shown in the price are known as fractional pips or pipettes.QuestionIf the USD/CAD price moves from 1.19527 to 1.19617, how many pips has it moved by?

What is a 'lot'?Each one-pip movement in a forex price is only worth a tiny amount.

You may also come across mini lots and micro lots, which represent 10,000 and 1000 units respectively.https://www.gold-pattern.com/en  Small investors generally don't have access to such large amounts of money, so many forex brokers allow clients to trade on leverage.

We look at leverage in more detail in the 'Orders, execution and leverage' course.

What constitutes a major pair varies widely depending on who you speak to, but most include the following six which account for over 80% of global forex trade: Currency pair     Currency namesEUR/USD             Euro / US dollarUSD/JPY               US dollar / Japanese yenGBP/USD             Sterling / US dollarUSD/CHF             US dollar / Swiss francUSD/CAD             US dollar / Canadian dollarAUD/USD            Australian dollar / US dollar  Notice that all these pairs include the US dollar, which is by far the single most traded currency in the world.

Ramesh Karki 2021-05-24

This is a general term for a global network of specific exchanges where shares are bought and sold.For example, the majority of UK shares are traded on the London Stock Exchange (LSE), while most US shares can be found on the New York Stock Exchange (NYSE) or NASDAQ.These exchanges are highly-regulated marketplaces where buyers and sellers come together to negotiate the transaction of shares.

Nowadays, however, this process is almost always conducted online.There are three main types of broker:1.Full-serviceCreate and execute a strategy based on the investment goals of the client - trading on their behalf.High commissionAdvisoryProvide investment advice and recommend specific trades, but leave the final decision to the client.Medium commissionExecution-onlySimply carry out the client's trading instructions, usually via an online platform.

No advice given.Low commissionWhen choosing a broker it's important to consider your knowledge of the markets as well as the amount of time you're prepared to commit to watching your portfolio.

A key advantage to investing in shares is the potential for dividends.

Stock Recommendations Share recommendations A dividend is an amount of money paid to shareholders, representing a portion of the company's profits.

Dividends can compensate for a share price that isn't moving much, giving shareholders an income instead.