Trading In Food Commodities

The food commodities are also one of the commonly traded commodities. The source is here. These include coffee, cocoa, sugar and orange juice. This is, however, a volatile market because there are many factors that could cause price fluctuations and create volatility. But it is this volatility that traders look for to profit from the market.

Coffee

Coffee trees produce beans after three or five years and each tree generates coffee beans that can fill one regular coffee can in the growing season. So this makes growing coffee a very slow process and the producers of coffee are seriously affected by the fluctuations that happen in the seasonal temperatures which determine the output of coffee.

The years when the production levels are very low then there are gains in the prices. The years when the production levels increase then there is a decline in the prices of coffee.

Cocoa

Cocoa trees need at least five years in order to be able to produce edible cocoa and the peak production levels of these are at least 10 years after the trees are planted. This makes it very long for the production of cocoa and this is something that should be considered when assessing what the level of supply is.

The climate in the tropical regions are suited to make cocoa and the climate here is pretty stable but what affects the prices of cocoa is the political condition of these locations. Thus the internal affairs could cause the price of cocoa to fluctuate. Another factor that affects the price of cocoa is the block pod diseases. This is a fungus that destroys the crop. The political disruption and the fungal diseases could make the prices of coca shoot up.

Sugar

Sugar has a tough competition with artificial sweeteners and this causes a lot of impact on its prices. But how will the trend continue is something that one is not clear about. The weather and the political situation of the countries where sugar is grown impacts the supply and the output of sugar. Weather conditions could impact the crop causing it to get destroyed. But the best part about sugar production is that it helps to generate high yields and thus there are very fewer disruptions in supply in this segment of the market.

Orange juice

The United States and Brazil have different climatic conditions but are two of the major orange juice producers in the world. The warm temperature of Brazil, however, wins over because of cheaper land. The major factors that cause the prices of orange juice to be volatile are when there are times when the climate freezes. The change in climate impacts the output. It is very important to know the weather to know how the change will affect the orange juice prices.

 

How to handle high-risk portfolios?

Every investor is advised to tackle risk in an easy manner and beware of the source of risk when you invest in any market. The investment advice centers on minimizing risk factors and being safe, but what is the reality? When it comes to high-risk portfolios there need to be some measures which can be sought out to solve the situation and ease it for the investors.

We need to understand the type of such high-risk portfolios to make a solution for these. Some common types of such portfolios are:

  1. Concentrated: there is this type of portfolio when heavily investing in a single industry can accumulate the risk and also increase the return potential for such stock. But you need to have a good market sense so that you will not choose an unpopular sector.
  2. Momentum: this is the portfolio which focuses on the shares which are already highly priced in the market. These portray the risk due to above average valuations of the stock and usually, the price keeps moving higher. This type requires a strong sell gesture to fade the losses and ultimately make a profit. Investors can look to diversify their portfolio to keep moderate risk.
  3. Penny Stocks: these stocks are usually kept as a last resort for investment due to their risk in terms of fraudulent and corruptive issues. But with due diligence an diversification this can also prove to be a way to get good profits.
  4. Emerging ideas: these are completely new companies which are into the investment field with a lot of new ideas and innovations. Thus, considering such companies can be risky too and when choosing them the investors can investigate diversifying so that they don’t face huge losses at once.
  5. Currencies, futures, options: the derivatives market is the place where a small amount can be invested to see good profit chances. These are also straightforward options which will help to identify risk and made risk aversion techniques.

The risk is present in every means of investment, but when you are vigilant to find out the measures to eliminate it becomes easy. The challenging aspect of risk and loss can be tackled well with concentrating more on portfolio management and setting it according to your convenience. Thus, make the portfolio strong and reap all the success of your investment in the future.

 

 

 

 

 

Knowing About Trading Strategies

Trading in the financial market is a great way to build wealth if you are not interested in opening up and running any types of business. However, for potential traders, the process of mastering the techniques of the market appears as a daunting task because of the overflow of information. The traders who are a beginner find it quite tough to decide whether they plan to trade in forex, commodities, stocks or any other securities.

You could initially try your hands at trading in digital currency using the automated trading software so that you will get a feel about how the market works. Read through bitcoin loophole full review to fully understand the workings of the trading software.

Also, a newbie finds it difficult to decide on the strategy to be used while trading which suits their personality. Below mentioned are few of the trading strategies you could choose from.

Types of strategies to pick from

Trading on the basis of technical analysis- You need to take time out to learn about using technical analysis as a framework to make trading decisions. The trader has to devote more time, give attention and dedication to technical analysis as it takes quite a bit of time to master this technique. The technical analysis requires the trader to study past performance of the asset to make a prediction of the future performance.  You should be able to read charts so that you could easily draw inferences from it. You should be able to understand where the security would be headed on the basis of volume trades and moving averages.

Trading on the basis of fundamental analysis- If you plan to use the fundamental analysis strategy, then you need to take time out to learn about underlying asset which you wish to trade. You could easily apply this analysis on forex, stocks, commodities, bonds, etc.  This analysis is basically concerned with underlying factors which influences the security’s performance. You should be able to understand the income statement, balance sheet, and the cash flow statement so that you could determine the stock’s financial health.

Trading on the basis of basic options strategy- This strategy requires the trader to identify underlying the movement of an asset in the market. If the asset shows bullish trends, then you need to place the call option to support the bullish ascent but you should also place the put option so that you are protected against the reversal.

How To Find Falsified Financial Statements

Many companies try to inflate their profit figures.  Hence it becomes very important on the part of the investor to find whether the company is falsifying its financial statements.  This is because most investment decisions are taken only on the basis of analyzing financial statements to ascertain whether the company is financially strong.   About returns of an investment option, investors can easily find online reviews.  For example, for investing in cryptocurrency various reviews like bitcoin loophole full review is available on the internet.   But only people with good accounting knowledge will be able to find whether a company is financially sound and would serve as a good investment option.  The following aspects are indicators of falsified financial statements:

  1. When the financial statement shows high growth in revenue without corresponding growth in cash flow.
  2. When the company shows excellent sales figures, even during a dull period when peer companies are not performing good.
  3. The high increase in Receivables and inventory. This parallel increase is an alert that the company is creating a fictitious sale of obsolete inventory.
  4. A quick increase in sales and profits during the final month of financial reporting shows that the company is trying to make up the figures so that it looks like target achievement.
  5. A large number of fixed assets in the financial statements indicate that too much amount is locked up in assets and the liquidity is very poor. This is a danger alert since such situations can soon lead to liquidation.
  6. A high rate of depreciation which is very high when compared with the peer companies.
  7. Frequent replacement of auditors is a bad signal. It shows that something is not correct in the financial standards of the company.

 

The proper conduct of a company depends on a good management and effective internal control systems.  Always check the credibility of the directors before investing in a company’s shares.  Check whether there are independent directors on the board.  Check whether there is a good internal system for whistleblowing.  To avoid frauds arising out of inflated financial statements, in many countries, the furnishing of certain data is mandatory to government and the investors as well.  Though these steps serve towards investor protection, it is good to develop market knowledge.  Certain skills like learning financial management ratios will certainly help the investor to identify misrepresentation in financial statements.  In all countries, the legal system enforces a penalty for misrepresentation of financial data.

 

Tips To Help Choosing The Right Automated Trading Platform

There are many Automated Trading Platforms available in the marketing nowadays, making it difficult for investors to choose the right one. Many automated trading platforms offer different services and have their own advantages and limitations. Before choosing any automated trading bots or algorithms it is important to consider if they have the desired features to make trades easier. Click to see the full report on one of the various trading platforms available in market, Bitcoin Loophole.

Features to consider before choosing the automated trading platform:

Complexity: 

Trading platform usually comes in two different types as:

  • Custom-built: Where the investors can modify the algorithm based on their need.
  • Out-of-shelf: These types of platforms are often preferred by investors who are not aware of programming and prefer using these trading platforms as it is.

Based on the type of trading platform, they might differ in ease of use. Hence before choosing the trading platform, it is important to see if it holds your comfort level. Trading platforms complexity also depends on various assets that it trades, so choosing a platform that supports selected assets of your choice is recommended. Almost all of the platforms offer a demo version to help investors decide what suits them.

Backtesting:

Backtesting is a method to validate the trading algorithms procedure verifying how it would’ve worked on the historical data. Backtest is a very important step in any trading strategy to understand how certain assets behave in certain situations. It shows how the trading strategy worked in pasts in terms of profit or loss. Hence a good trading platform must have a strong backtesting strategy.

Programming Languages:

If you choose to modify the trading software to cater to your choice, it is important to choose a trading platform that uses a programming language you are comfortable with. Different programming languages may offer different pros and cons. The most commonly used programming languages are Python, C#, Java, C++, MATLAB, and R.

Strategies allowed:

Various trading platforms may support a different number of strategies to be loaded on the account. And there is a possibility that you might require extra accounts to load more strategies. These strategies can be long or short strategies, also many platforms offer their individual trading strategies as extra add-ons with an additional one-time charge. It is important to check if the selected trading platform offers enough number of strategies and also if the memory of your computer supports multiple accounts if required.

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual Funds Or Stocks? Which One To Choose?

Everyone thinks of investing their money expecting good returns. There can be a variety of options available to choose from, that promises fast returns. Few invest in mutual funds, fixed deposits, and gold while others can choose to trade in stocks. No matter whether you invest in the stock market or in mutual funds, the output depends on how much risk you are ready to take to get good returns and how you measure your good returns. In this article, we will go through the basics of both mutual funds and stocks.

Mutual Funds:

The investors who choose Mutual funds find these four features interesting:

  • Convenience
  • Diversification
  • Professional Management
  • Selection

Mutual funds are usually managed by professionals who handle all the operations. These managers are well experienced in the domain hence aware of all the benefits and risks when selecting the investments for the funds. They manage the entire buy and sell operations reducing the stress on investors.

Mutual funds are usually many diversified portfolios as they own a variety of stocks. So even if a few of them did not incur good returns, they might not affect the entire mutual fund. The mutual funds can hold investments in different industries with a variety of assorted sized companies. An individual investor might find it difficult to diversify his portfolio to such an extent.

Stocks:

Many investors prefer individual stocks over mutual funds as the stocks also have a few features that the investors find attractive:

  • Hands-on Investing
  • No Fees
  • Greater Upside Potential

Investing in individual stocks needs investors to pay the brokerage fees. The mutual funds also need to pay fees which sometimes may be quite significant to drain your mutual fund returns. Mutual fund fees may be small but in long run might affect the overall returns.

Mutual funds are highly diversified that prevents them from incurring huge losses but at the same time, it holds them down.  In stocks, you can do risky trades that can incur huge profits. Check this full report about how Bitcoin Loophole is helping investors to trade easily.

Mutual funds invest in various companies at a time hence investors who want to know where their money is going won’t be able to track it precisely. For this reason, few investors might feel comfortable investing in individual stocks, as compared to mutual funds.

Room for both:

Mutual funds usually work very well for funding retirement strategies. While those who want to take risks for greater returns can opt for stocks.

Impact of Inflation on Economy

Inflation refers to the high rise in prices of goods and services.  Inflation will not only make the poor but also make the rich to suffer.  Thus all the segments of society like the farmers, working class and businessmen are affected by inflation.  Inflation is measured by consumer price index.

This review is on the impact of inflation on the economy:

 

Impact on investment-Equity holders will start losing money.  Their value of investment starts to depreciate.   Diversification of investment would be badly needed to prevent loss.  Hence investors should learn about various opportunities like cryptocurrency trading using bitcoin loophole app, online share trading etc.

Reduces purchasing power:  Inflation reduces the purchasing power of people.  This is because the same amount of money would fetch little goods than it used to.

Money loses value:  Inflation reduces the value of money.  The weakening of currency is a very common phenomenon.  Hence exporters would face the loss of demand and importers would face high payments.

Intention to stock goods:  Inflation creates panic among consumers and makes them to stock more of goods in the fear that prices would further increase.

Leads to hyperinflation:  At one point, the prices keep rising and this leads to hyperinflation.

Rises loan costs:  Cost of borrowing becomes very high under inflationary conditions.

High price leads to hoarding:  Price rise due to inflation results in unethical practices like hoarding and black marketing. Profits will be aimed through dishonest means rather than production and sales.

Increase in tax:  The government will be also affected by inflation.  In order to provide subsidies in view of price rise, they might start levying more taxes.  More taxes will result in dissatisfaction among people.  Hence stability of the government will be affected and this leads to political unrest.

Lowers morale:  Inflation lowers the morale of the people.  The constant price rise builds stress.  The common man will be subjected to more difficulties.  This results in lowered satisfaction and motivation.

Inflation at a slight pace is beneficial since this will result in benefits like motivating businessmen to improve production.  Also, moderate inflation will boost up employment opportunities.  A slight rise in food prices will benefit farmers indirectly.  For them, the cost of cultivation would more or less remain the same.  But the rise in food items will fetch more revenue.

 

But hyperinflation is not good for the economy.  Under hyperinflationary conditions production, employment and farming will come to stand still.  At one point consumption would drastically reduce.

 

 

 

A trade like a professional trader

When you are just beginning your journey as a trader there might be several sources in which you can find help. For example, take the case of trading bots like Bitcoin Loophole. Look for a genuine review that gives you an introduction about the bot. This review would also tell you how this bot can help you make profits. These bots were designed to help beginners trade consistently and also use technical analysis as the professional traders do. If you wish to learn from the pros and get to know how to trade like them here are a few tips –

Do not always go with the flow

Following what the crowd does is not what the professional traders do. They look for the best opportunities even before the majority of the traders notice it. They keep a careful eye on the price patterns so as to grab a chance even before it appears.

If it is too obvious, it should also raise your suspicion

Not all obvious opportunities might result in the profits you expect. Sometimes there are trades that nearly all the traders talk about. If it is too obvious then it means that there would be several people looking at it. So the price tends to fluctuate more erratically than ever.

Watching the experts might not always give profits like the experts

Watching and learning from the experts and their strategies in taking a decision is a good thing. But buying every stock that the expert purchases might not really bring profits. Professional traders simply look for cues but always rely on their own interpretation of the opportunity that presents itself.

Know when to use automation

Automation is not something designed only for the beginners. Even the professional traders use automation in various forms. It is alright to give up control in some places and use a robust and reliable tool instead. This is one way that professional traders try and save their time.

There is no shortcut to making bigger profits

If you wish to make big profits you have to put maximum efforts to achieve them. It does take time and intense research on all the options available and also a detailed study on the risks involved.

Even the most experienced trader can face losses

Even after you have been trading for several years, even after your experience has fine-tuned your trading strategies there are market risks that can still lead to losses. So the professional traders never stop strengthening their risk management strategies.

 

Knowing how competitive today’s industries are, it has become the ultimate challenge for start-ups to launch in the market and sustain flourishingly for at least 10 years. Many companies come and go, but there are only a few of them that know the perfect way of sticking-by and establish their existence in the minds and hearts of their clients. Do you ever wonder what those methods must be or how can one achieve them to rule the market? Well, the answer to this query lies in the kind of growth strategies you develop for your business and employees.

There is a lot more in a good growth strategy than merely an image of building a long-term success plan. It is important for you to know here that in case you do not have a concrete plan; it is very likely that you would not be able to create your grip. Your business will ultimately succumb due to the competition and expectations hovering in the market.

How to make the best growth strategies

The primary thing that you need to keep in mind while creating your strategies is to be thoughtful and vigilant. You have to find out what can hinder the growth of your business in time to come and eliminate them or prepare for them for anticipated outcomes.

So, if you want to join the clubs of entrepreneurs making sound business strategies, then follow the below given steps-

  • Create the difference: For your products and services to excel in the market, the first thing you need to do is let people know how and why it is different from the goods and services already existing in the market. Only then the target buyers would feel attracted towards your brand and feel compelled to invest.

 

  • Identify your target customers: It is very essential for you to be sure of the consumers you are targeting and which region they reside in. This will help you create effective models and plan to present your products efficiently.

 

  • Find loopholes: You need to invest some time and money to detect what key indicators affect your firm’s growth. Work towards them positively and with patience so that the results turn out to be beneficial for everyone linked to the company.

 

  • Sort of funding issues: Since the beginning itself, you should be aware of all your funding sources and deal with them appropriately. You can also make parallel investments in favorable cryptocurrencies offered by online robots like Bitcoin Trader and manage emergency funds for your business right away. You can continue reading about this platform and find out how advantageous it has been for users in the past.

In addition to these, ensure that you stay vigilant about your competitors, embrace your strengths, and provide competitive skills to your team members to develop a firm that is second to none in the industry.

Have you been repenting that you were not able to encash on the bitcoin when the time was ripe? Have you wondered to yourself aloud if you will ever get another golden chance since you took such a long time to make up your mind in trading in cryptocurrencies? Has it struck you ever that in a world that is full of scams, there is danger lurking in every corner and that you can be fleeced into investing in con software and lose your precious cash?

Well, all these thoughts even crossed my mind when I wanted to enter trading in binary options. When I was in my first job, I was slightly skeptical about my friends and colleagues choice in trading. I resisted entering into trading markets then because I opted to wait and watch.

I repent that till date:

I have seen trader friends earning in thousands over a period of few months and supplementing their income and consequently raising their standard of living. It was then when I had decided to read up everything on it and get on down to trading as soon as possible.

Not having any financial knowledge is never an impediment:

After doing extensive homework, I decided that the software called the Bitcoin Trader was the right one for me. It had roaring positive testimonials across the internet. I also got hooked on to real traders at live chat and group discussion forums and six out of ten of them recommended Bitcoin Trader for superior trading experience and legitness of the program.

Using the demo account on the site is a plus:

A nontrader can learn the ropes of the trade by getting on to the demo account. The demo account lets the newbie trader trade in fake currency. It is like a practice session before the actual trading with real money can happen.

I decided to document my trading:

I realized that the various blogs on trading, review sites and testimonials found on the internet were extremely useful to me. So, I decided to document my own trading experiences in a blogging pattern. I have been able to successfully trade for more than six months and I can tell you that it is very satisfying to see yourself making consistent profits day after day; every day.

You can continue reading here to learn how you must choose your trading software or you can click here to go directly to my blog where I take you through my journey of trading on the most professional trading software that the world has ever seen.