Daytime Versus Night-Time Forex Trading
The Forex market hardly goes to sleep. So, proficient currency traders remain active night and day. Naturally, transaction volumes go slack in the dark. With the right strategy, traders may make profits without distractions from market noise and high volatility. Currency relevance determines logic. Take Bank of England news releases, for example, it beholds British firms to hedge future sterling purchases from overseas.
Nuances of Day Trading
Prices and market volumes go wild after opening hours. This arises from news releases that represent a window into the market influencing factors coming up after the previous closing bell. A proficient trader recognises distinct patterns and makes quick profits. Basically, the initial 15 minutes after opening bell offer big trades of the day on initial trends.
Night Trading Attractions
Night time FX trading creates excellent scalping opportunities. Market activities are minimal. Brokerage servers suffer lower loads, reducing terminal slippages and malfunctions. Again, minimal night time market activity reduces spread expansion, saving on trader deposits.
Rate of assets changes efficiently making it easy on beginners to comprehend trading principles. This way, they make successful trades without market noise distractions and economic news disruptions to worry about. Working at night is unnatural, inducing trader fatigue for many. Mistakes may result in costing a trader money.
Is This Covid-19 Season A Good Time To Invest In Stocks?
Stock prices are wildly fluctuating due to a covid-19 induced slowdown. This volatility makes it hard to determine whether this is the right time to invest. The answer seems to change from one moment to the next. You may decide to sell all you have and hide undercover till the pandemic is over. Or, you could play the good game and be greedy while others are fearful.
Roll With The Legend
Warren Buffet is among the richest people on earth for a reason. His consistency in capitalising on bear markets, through investing heavily during declines as others sold off, has made him so. Sometimes, bears could be quite cute and profitable. Let this pandemic bear be your opportunity to amass wealth.
Stock valuations make a critical component of any investing process. Simply pick stocks that promise to survive the pandemic and jump in.
Ignore The Doom And Groom Hype
Media and experts often talk about market losses as if they are the doom of the world. These market losses have not stopped markets from dramatically compounding wealth over long periods. You need not fear bear markets and corrections. Instead, embrace them.
Can You Reinvest Dividends From ETFs?
More and more ETFs, especially big providers like Vanguard and iShares, give you two investment choices. There is the income share class ETF and the accumulating share class ETF. Picking the right one rests on your motive.
Going For The Right Class
If you aspire to put your money in an Exchange Traded Fund, start by determining the appropriate share class. An accumulating share class puts dividends back into the fund. This will not cost you anything in the form of additional expenses.
On the other hand, an income share class will fund dividends from whichever pay-outs your ETF has reaped from underlying investments. An example is an FTSE-100 ETF making a pay-out of funds received as dividends from, say GlaxoSmithKline or Royal Dutch Shell.
Determining Your Investment Motive
Supposing your objective in investing in an ETF is growth from your investment, and you do not want the income. Your best choice is the accumulating share class. Conversely, the income share class is an excellent choice if you seek a regular income.
As you perform due diligence, remember to examine each share class by analysing respective performances. An accumulating share does appear more profitable than its income counterpart. That arises from dividends going into re-investment and subsequently compounding returns.