free booklet for download

Free booklet for download

First booklet

Second booklet

Technical Analysis - How to Read Charts?

Technical Analysis - How to Read Charts?

How to spot market trends by reading charts? Get to know the Trend Lines Values... charts... lines... indexes. Financial analysis seems to confuse you? You think all those graphs are too complicated? Relax TRADING 212 is here to show you the simple steps to figure it all out. Let’s start with our first lesson in which we will show how to identify market trends. Learn how to draw the trend lines. The financial market is like a roller coaster. It has ups and downs and it certainly gives a strong adrenaline rush. Well,.. before you join the ride you need to be able to recognize the two types of trend lines: a resistance line and a support line. But how and where to find them? We will show you in the next few minutes. Have a look at the candlestick chart. Try to spot all the bottoms located on the same level. Simply connect them together and there you go – you have drawn a support line.

Remember that you will need to have at least two bottoms touching the same line. Connect two or more peaks and what you have now is the so called resistance line. Easy, right?! Both lines keep the movement of the price within a range for a certain period of time until the price is strong enough to make a break. Once the price breaks through the top line, it's most likely to keep its upward direction. If the candle finishes its movement above the resistance line, it’s time for you to BUY. In this very moment the resistance line becomes a support line - a clear signal that the price is going up. Don't panic if the price drops for a few moments. It is only a FALSE BREAK and the price will certainly rise again.

Let’s see what happens when the price goes down. Looks like the same scenario is repeating, just in the opposite direction. The price breaks through the bottom line which is a signal to SELL. Now the support line becomes a resistance line. And again, don't freak out if the price jumps up a little bit. It is just another test of the line and the price is surely staying below this level. It’s good to know that trends can go up and down. Lines are not necessarily horizontal. You can have them looking just like slopes and hills. Let’s see how this works in practice! Simply log in to your account at www.trading212.com If you still don’t have one, register now. It’s free and takes only a few seconds. Now, that you are in our trading platform you can easily open an advanced chart with a single click on the icon. Then choose an instrument from the drop-down menu. In this example we use Gold. Now set a time period for your chart – let's pick ‘1 day’.

You can easily adjust your chart view by dragging the slider on the bottom of the page. Zooming it out helps you see the bigger picture. Then go to the toolbar and choose “trend line”. Connect two or more peaks together. Double click on the line to customize its colour and length. Now connect two bottoms by drawing another line and again double-click to customize its colour and length. There you go – you have the resistance line on top and the support line at the bottom. Keep in mind that there are exceptions in every rule. The examples we have provided do not cover 100% of the market scenarios but will certainly help you spot more trends and achieve higher returns. For more free trading tutorials check out www.trading212.com .




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Penny Stocks vs. Options - Which is Better?

Penny Stocks vs. Options - Which is Better?

Do you have a smaller trading account if so you're probably thinking should i do penny stocks should i do options maybe you've never even heard of options maybe you've never even heard of penny stocks either way they're both crucial tools for those with smaller accounts so let's compare the two hey it's clay trader at clay trader comm in this video like I said I want to talk about penny stocks verse options and really break down all the different components that you should be thinking about when you're considering what Avenue you want to take and right off the bat I'm going to say that I'm not biased I do firmly believe and firmly favor one and I'm going to try to prove it with this but at the end of the day you may be thinking well clay you just like that one because you have a course that you're trying to sell well in my defense I have courses for both of these so it really doesn't matter which one I choose or which one you choose both courses are priced the same so like I said I have no bias here I'm just looking at it in a very factual way and one of those things where you know just out front no bias no hidden agenda here I offer courses on both same price so let's get started so the first thing that you want to consider with anything is well what kind of fees are you going to be paying what are the commissions and with penny stocks and options both are pretty darn similar pretty close like any broker you can find some that have really you know messed up penny stock fee structures but other ones are very straightforward very cut and dry same with options some options out there other fee structure is just crazy I mean it's just terrible but other ones can be much more favorable so I'm going to call the fees pretty much a wash there's really none nothing none has a advantage over the other however when we move from fees into the government regulations you know pattern day trader rule if you haven't heard of that then it's only a matter of time before you do this is where options just blows penny stocks out of the water in fact you know this is quite a bit a bit of a game changer as far as I'm concerned like I said if you haven't heard of the pattern day trader rule you will and it's just a pain bit bottom line it were it doesn't allow you to trade for as much as you probably would like to it really hinders that but with options it's a way to get around this whole rule in fact I've done a whole video on that so you can click on the annotation that you see popping up on the screen I'll also link it down below I did like I said did a whole video on that just explaining how options can help you get around the pattern day trader rule so for this because of that because of the fix they allow you to do for the pattern day trading rule I'm going to have to go with options for this comparison next the amount of opportunities so what do I mean by opportunities well how often you know it doesn't opportunity present itself in order for you to act on it and make some money in penny stocks you know depending on the cycle sometimes there can be quite a few but most times there's rarely any you got to sit and wait and wait maybe wait two three four days sometimes you got to wait weeks before you finally get a move that makes any sort of worthwhile you know impact on your account with options happen every day all the time I take that back not all the time but they happen every single day as long as you know what stocks to be looking at they literally do and anybody that has traded options knows that you know there's big movements you know it's not if I were to sit here and say yeah an option went from 50 cents to a dollar or a dollar to a dollar fifty that wouldn't be shocking at all it happens on a routine basis however for penny stocks that have a penny go from 50 cents to a dollar I mean you really see that that often you don't so as far as amount of opportunities there's always something going on in the world of options always something going on if you've been around pennies you know I've had a lot of penny stock in my trading group that are converted to options because that all they really say is you know penny stocks are it's like watching paint dry you get in now you just wait and wait a day goes by another day and nothing ever really happens maybe something eventually does happen but you know for all the time you're waiting watching that paint dry for it to finally happen within the options market there's been you know multiple moves that have happened now potential gains for penny stocks and options this one is going to have to be a draw I mean you got to give credit where credit's due penny stocks can give very nice gains however the big differentiator here goes back to this one up err yeah they're big games but they don't come around that often up here they really do and this should actually be green since that is the color we're using for penny stocks so yeah credit where credit's due big gains can happen on both there's no denying that but the like I said the thing that really separates is going back up to this point well the amount of opportunities big gains are happening quite a bit within options not so much on penny stocks now cost to get involved what do I mean by this well a lot of times what people hold or you know what keeps people away from big boards so I say you know I'd love to play big board stocks I'd love to play a stock that trades for you know $300 well with options the cost to get involved can be very minimal it can be as low as you know $50 if you really want to so again for this we're going to have another draw obviously penny stocks that's one of the big draws to them is you know what a stocks trading for you know 15 cents I can actually afford that a stocks trading for 75 cents per share well the way options function and you know by all means go out there and learn more about options same exact thing you can literally get involved on a chart that you know that the stock itself trades for $400 per share but through the way options you could get involved you know within that trade for as little as $50 $75 hundred dollars you could obviously do more but the you don't need large amounts of money to get involved with big board stocks that's you know the big power of option so we have another draw here now at the mercy of this is a very I've never really thought about this but I had some like I said a lot of people my chatroom have gone for penny stocks options and they said you know it's so nice to not have to worry about management all of a sudden saying well we're having a reverse splitter well we're going to have to dilute or else we're you know we're gonna have to raise the share structure if you've been around penny stocks you know that management is pretty shady they're not the brightest bulb in the box so you're really at the mercy of them you're you a trade could be going well then all of a sudden like that management could put so out some press release or do something just bizarre that all of a sudden ruins everything however with options like I said these are based off of big board companies I mean think about stocks that are household names you're at the mercy of them do they have bonehead management sure all management's make questionable decisions but you know does a CEO of Apple the CEO of Google the CEO of you know any of those big-name companies are they really boneheads no they have you know it's them they have their board of directors so to me just an absolute no-brainer I will rather be at the mercy of big board management then you know you know at the mercy of a penny stock CEO who's probably got like a criminal background or something so no contest here not even close um you know every single that yeah put me at the mercy of people that are actually running legit companies how fluid what do I mean by fluid for this I mean no volume wise for anything you need volume and especially for me and you know the group that you know I teach I'm all about charts and charts can be used for penny stocks no doubt about it I know it's one of those things where the CEO says I'm not diluting I'm not that looting yet the price keeps going down however in terms of fluidity how smooth the charts move how well they're constructed and just you know the way the way they come across your screen you know they're not just not as choppy penny stocks you have very choppy charts a lot of times because there's just not that much volume it's not as liquid so it's not as fluid so in terms of how fluid options and if you don't believe me you know pull up a penny stock chart and then pull up like apples chart or you know Netflix Charter you know Facebook's chart or just a big board stock pull up those charts and then look at let's say a 15-minute time frame of a penny stock verson options you're going to see one very fluid verse one that's very choppy so again options went out what about the ease of selling now selling is the key word here because you can always buy something I mean everybody's always got some especially in penny penny world I'm going to see you is always gonna let you buy shares however the big question comes down to can you sell because right buying is only half the equation you got to be able to sell and with penny stocks again not even close if you don't believe me that's fine go buy a bunch of shares you know let's let's say you know go buy ten thousand dollars of shares and some penny stock company and then let you know how easy it is to sell when you want to sell that's the key when you want to sell let me know how easy it is with options go put ten thousand dollars in and you'll notice that hey when I want to sell you'll be able to sell very quickly you know not much hassle so again one of these things where it's not even close if you have experience then you probably understand that yeah penny stocks you know I bought the thing but then when I wanted to sell you know the bids kept dropping and I mean all sorts of things happen not a coincidence penny stocks just are not very liquid making money flexibility what do I mean with us well with penny stocks you can essentially only make money if the price of a stock goes up sure there's people others all you can short penny stocks and this then the other I suppose you could but that's going to require you going to an offshore broker paying crazy amounts of fees because it's the way it's all works so technically speaking if you want a massive headache and want to do a bunch of you know dirty work in its yeah I guess technically you can make money from penny stocks if they go down but just a much easier streamline option it's no problem if you think a stock is going to go down the way options work you can still make money from it it doesn't cost you any more fees you don't have to go to offshore brokers nothing like that it's just very streamlined for money making flexibility again yeah I guess technically you can make money from penny stocks if they go down but trust me just try it you know if you don't believe me said you don't fine go on and find a broker that's going to let you short penny stocks and I'll just leave it at that you'll see exactly what I mean about the headache and ease whereas options no problem you'll be able to make money if a price goes out and then finally and I really like this one learn personalities what do I mean by that well with options it's not a vast market I mean not every single stock out there has options but that is the hidden beauty really there's I probably say 10 to 15 stocks out there that have really good liquid option markets so what a lot of people do is that they'll create a basket of stocks and they watch those same ones day after day remember opportunities there's always opportunities happening within those 10 to 15 stocks something's always going to happen but it also forces people to just watch the same charts the same stocks over and over and what's that can allow you to do all stocks have personalities anybody that's been trading for a while can attest to sir in stocks they have a rhyme and a rhythm to the way they trade and they have you know that's what that's what I'm calling the personality so when you are forced to look at a select amount of stocks you're going to get to learn their personality whereas penny stocks you know it's what's the flavor of the week there's one stock that maybe everybody's talking about and then that one drifts off into oblivion now there's another stock that one drifts off to there's there's no continuity there's no way to really learn the penny or the personality of a penny stock because they're not around long enough they're just they're gone and that of course at the mercy of when you have bonehead management's of course the those stocks are never going to sustain themselves whereas when you have at the mercy of actual CEOs actual you know shareholder or actual Board of Directors you know it's going to be a lot they're going to be around and you're going to be able to learn their personality so without question I mean this one not even up for debate at all options wins out there so as you can see looking down here again I you know I started with I have no bias I don't care if you want to play penny stocks awesome I offer a course for it if you want to play options awesome I offer a course for it so like I said no bias I don't care what you decide but it's very I think in your face and it's one of those things where if you have any experience you can relate to some of these in regards to penny stocks and or options the one thing is all but options are so risky I hear that all the time with no plan with no strategies with no rules so our penny stocks so is Forex so with futures so or Toer bonds you know anything without a strategy and without rules and you know systems in place is risky so the whole thing all but options there's so much risk here no that's why am I saying you just go out and blindly start doing options no you definitely need to learn a system and learn strategies like I said for me and the members of my group we use technical analysis and charts and I'm not going to say that's what you absolutely have to do but as far as the whole risk argument all that's that's the one thing we're penny stock penny stocks are much less riskier than options give me a break the same amount of risk for either one that all is a function of do you have a plan do you have a set of rules and a system in place you know if I cross the street and I don't have a plan instead of rules you know the rule of looking both ways that's a the risky situation so the whole wrist thing risk is a function of a plan not you know just any of these by themselves so hopefully that helps narrow it down questions or anything like that maybe if you have some other areas I'll leave those down in the comments below where you want to you know look for a comparison but I'd like to hear from people as always if you enjoyed this and found it helpful I'll click that like button little things like that go a long way so thanks for watching hopefully this helped separate out the two a little bit get out there and trade without emotion.

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Tradingview & Coingy Tutorial: How To Setup Indicators For Crypto Trading!

Tradingview & Coingy Tutorial: How To Setup Indicators For Crypto Trading!


Hope you enjoy the video tutorial! .

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What Is An IPO?

 What Is An IPO?

An IPO is an initial public offering the first time a company offers its stock for sale to the public following an IPO a company ceases to be a private enterprise or in the case of privatization a government-owned utility it becomes publicly listed and its shares are traded on a stock exchange Facebook and Twitter have held two high-profile IPOs in recent years but flotation like this come in all shapes and sizes so why would a private company choose to go public primarily it's about generating capital if a company needs funds to invest in its expansion it can either borrow the money or sell shares via an IPO an IPO has the added benefit of generating publicity for the company boosting its reputation as a successful established business so what does this mean for traders well IPOs often see a flurry of activity as investors buy or sell new stock they believed to be under or overvalued this can create volatility which while risky can mean opportunities to trade one way to take a position before the IPO is by trading on a gray market for example you might open a CFD that settles on the size of the company's market capitalization following the first day of trading gray markets can also gauge trader sentiment in the run-up to the IPO and of course after the IPO you can trade the shares just like any other listed company as ever though it's important you do your research and keep up to speed with all the breaking news because the better you understand the company its sector and the circumstances surrounding the IPO the better you can assess how accurately the stock is valued and the level of risk involved

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Investing Basics: Bonds

 Investing Basics:Bonds

Bonds are a common investment. However, to many investors, they remain a mystery. So let's explore what a bond is and how it might benefit your investment portfolio. A bond is simply a loan given to a company or government by an investor. By issuing a bond, a company or government borrows money from investors, who in return are paid interest on the money they've loaned. Companies and governments issue bonds frequently to fund new projects or ongoing expenses. Some investors use bonds in hopes of preserving the money they have while also generating additional income. Bonds are often viewed as a less risky alternative to stocks, and are sometimes used to diversify a portfolio.

Consider this example. The city of Fairview wants to build a new baseball stadium, so it decides to issue bonds to raise money. Each bond is a loan for $1,000, which Fairview promises to pay back in 10 years. To make this loan more attractive to investors, Fairview agrees to pay an annual interest rate of 5%, which in the bond world is also known as a coupon rate. An investor buys the bond at face value for $1,000. Now, let's fast forward. Each year the city of Fairview pays the investor $50. These regular interest rates continue for the length of the bond, which is 10 years. Once the bond reaches maturity, the investor redeems his bond, and Fairview returns his $1,000 principal investment. This bond was a good deal for both the city and our investor. Fairview got the money it needed to build the stadium. The investor received regular interest payments and the return of the original investment. Because a bond offers regularly scheduled payments and the return of invested principal, bonds are often viewed as a more predictable and stable form of investing. Compare regular payments of a bond to the experience of owning a stock.

With stocks, profits and losses are driven by market forces and are generally less predictable. Of course, like any investment, bonds are not without risk. One risk that bond investors face is the possibility that the issuer defaults on paying back the principal. This is what is known as default risk. Typically, bonds with higher default risk also come with higher coupon rates. The amount of risk depends mostly on the financial stability of the issuer.

For example, most governments are generally considered stable issuers and issue bonds with a relatively low coupon rate. Corporate bonds typically represent a greater risk of default, as companies can and do go bankrupt. That's why corporate bonds often offer a higher coupon rate. Several credit rating agencies assign rankings to different bonds. This can help bond investors to gauge the financial strength of the bond issuer.

These ratings agencies often use different criteria for measuring risk. So it's a good idea to compare ratings when considering a particular bond. And keep in mind, rating agencies aren't always accurate. So be sure to research a bond and its risks thoroughly before investing. Another risk to consider as interest rate risk. This is the risk that interest rates will go up and any bonds you own will be worth less if sold before the maturity date. After all, when interest rates rise, more investors allocate their money into the new, higher interest rate bonds. If you wanted to unload a low interest rate bond to take advantage of these new rates, you would have to sell your bond at a discount to make it a worthwhile purchase for another investor.

Capital preservation and income generation are just two ways bonds might be part of a diversified portfolio. Many investors use a mix of stocks and bonds to pursue their investment goals. And because bonds moved differently from stocks, they can help increase or protect portfolio returns. Keep in mind that this discussion showed you one simplified way that investors might use bonds and only a few of the risks to consider. Like all investments, bonds are complex and have a variety of uses and risks. Before you invest in bonds, it's important that you invest in your own financial education.

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What Is Short Selling?

What Is Short Selling?

Buy low, sell high: conventional wisdom says the only way to trade is to go long. But short-selling, going short or shorting is a way to trade if you think a market will fall. The aim: sell high, and buy low. But how can you sell something you don't actually own? Well let's take Rio Tinto. Imagine it's trading ad thirty four pounds per share. You think the price will drop, so you short sell a hundred shares at a value of thirty four hundred pounds. To do this, you effectively borrow them from your broker. If the share price does fall to say thirty two pounds, you can buy back all one hundred shares for thirty two hundred pounds, and return them to your broker.

The difference, two hundred pounds, your profit, less any fees or commissions. But if the price had risen to thirty six pounds, for example, buying back your shares would cost you thirty six hundred, and that would mean a loss of two hundred pounds plus costs. Remember you always need to buy the shares back at some point, as they still belong to your lender. Trading derivatives, like CFDs, makes the process of short-selling as straightforward as possible. You never own the underlying asset anyway, so short-selling is no more complicated than going long. So why do traders short-sell? The obvious reason: you can trade a market when it's going down. So bad news and price dips can become opportunities. Another: hedging, where you open a position that can counter adverse moves in your portfolio, offsetting your risk. For example, if you have long positions on several Nikkei 225 companies, you could use a CFD to short sell the Nikkei index as a whole, which could reduce the impact on your bottom line if your Japanese shares start dropping in value. So, short selling has its advantages, but there are potential downsides too.

Unlike going long, there's no limit on how much you stand to lose. If you buy an asset thinking it will increase in price, the absolute worst case is it drops to zero. But when you go short, the price could rise indefinitely. This makes it important to use stops to limit your losses. So the risks are there, but if you approach with care, the opportunities provided by short selling really can add another dimension to your trading. .


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