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StartTrading.com Donates $40,000 in PPE to Help Homeless Americans

StartTrading.com Donates $40,000 in PPE to Help Homeless Americans

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SAN DIEGO, Calif., February 12 — Nearly a year after the start of the pandemic last March, the demand for personal protective equipment remains high. 

This week, The Start Trading team delivered $30,000 dollars worth of face masks to mental health advocacy group, Aladdin Forever Foundation as well as another $10,000 to the Salvation Army. 

The Aladdin Forever Foundation is a leading advocacy group which aims to increase awareness of the needs of homeless people dealing with mental health disorders. The organization connects individuals with therapists, physicians and other professionals who can help develop unique treatment plans to guide them to a better life.

The Salvation Army touts a similar message, and offers programs to assist a wide range of Americans in need, including homeless individuals, LGBTQ youth, disaster victims and more. 

This donation will help provide face masks to thousands of homeless Americans, and volunteers working on a variety of community focused projects. 

To learn more about these organizations, you can email them at [email protected] and [email protected]

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FEB 10th – Loading up on CBD STOCKS! and BUYING THE DIP: #XONE​ #DIS​ #GHVI​ + MORE!

FEB 10th - Loading up on CBD STOCKS! and BUYING THE DIP: #XONE #DIS #GHVI + MORE!

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In This Video:

  • #Wallstreetbets is at it again.
  • #CVSI, #APHA, #OGC, #TLRY and many more… Get on them.
  • Buying the DIP.
  • We cover the Bitcoin Rise and Apple potentially buying billions of Bitcoin after Tesla just announced they did.
  • We cover DOGECoin. 
RobinHood ROBBED US. Prefer WeBull:

***Get 2 FREE STOCKS + MORE*** WeBULL👉🏾 

***Get 1 FREE STOCK+Up to 50+++*** Robinhood 👉🏾 
 
 
 

PLEASE NOTE: This is ENTERTAINMENT PURPOSES ONLY. WE ARE NOT FINANCIAL ADVISORS!

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TIME TO BUY Feb 8th STOCKS, BUYING NOW! for FEBRUARY 9th! #BTC​, #DOGE​, #DIS​, #AMC​, #ALPP​, #ABML​

TIME TO BUY Feb 8th STOCKS, BUYING NOW! for FEBRUARY 9th! #BTC, #DOGE, #DIS, #AMC, #ALPP, #ABML

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In This Video:

  • BITCOIN IS TEARING IT UP
  • DOGE Coin and many other ALT Coins up dramatically.
  • DIS Earnings this week
  • AMC – Buy the DIP!
  • #ALPP
  • #ABML
What trades did we make that are Crushing it:
 
  • #IDEX
  • #SIRC
  • #ZOM
  • #IPOE
  • #APPL
  • #CCIV
  • #DIS
WATCH CBD Stocks,  Check out my Charts on my live broadcast on February 7th.
 
This is ENTERTAINMENT PURPOSES ONLY. WE ARE NOT FINANCIAL ADVISORS!
 
***Get 1 FREE STOCK+Up to 50+++*** Robinhood 👉🏾 
 
 
 

Summary: 

We cover the Bitcoin Rise and Apple potentially buying billions of Bitcoin after 

Tesla just announced they did.

We cover DOGECoin.

And we cover CopyTrading on the platforms mentioned above, and how much easier it is to stay in tune with the market with copy trading.

PLEASE NOTE: This is ENTERTAINMENT PURPOSES ONLY. WE ARE NOT FINANCIAL ADVISORS!

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When EVERYONE Trades #AMC​ #GME​ #DOGE​ – WHAT DO YOU TRADE?! See what we’re trading #IPOE​, #AIEQ​, #NGA

When EVERYONE Trades #AMC #GME #DOGE - WHAT DO YOU TRADE?! See what we're trading #IPOE, #AIEQ, #NGA

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In This Video:

-> Get 1 FREE STOCK+Up to 50 – Robinhood

I’m Mark Bauman, I’m a serial entrepreneur, and when I’m not running my 3 multi million dollar companies and building new technologies like FaceChex.com, Fanects.com, and many others..

I’m updating StartTrading.com with new tips and tricks, and sharing my trades. I’m focused on taking our $50k account to $1Million, and bring some great people along with me. Hope you enjoy the content.

I curate it, as well as others, so that I can trade more quickly and efficiently, and so that you can too.

Updates in this Video, Content contributors: Patrick Dejardins

Summary: 

Spacs took a hit, because the short sellers likely as their trades got crunched had to pull assets and spacs were likely 1st on the chopping block to be sold.

He’s a great analyst, I recommend watching him and this video as he gives you a better understanding and forces you to learn and think.

Like or subscribe before you head over there.

  • #IPOE – Sofi
  • #ACTC – Proterra
  • #NGA – Lion Electric
  • #BFT – Lightening EFmotors

YouTube: MCash

2 amazing penny stocks. 1 is nearing aprroval from FDa, and has been discussed in Wall Streetbets I learned 

  • Tonix pharmaceuticals (#TNXP)
  • Electrocure (#ECOR) 
Check out: LAGhacks

#SNDL – on 100% short.

So it’s going to have a squeeze most likely.

#CTRM – down to .50 after going up over $1.50

Has anyone heard about this robot etf?

#AIEQ?

I’m considering it this week or the week after once I feel we’ve hit bottom.

They are moving towards tech like Tesla, TSLA, Enphase ENPH and others. I am buying into those 2 this week.

Have a question for the me?

Share with friends, ask questions @starttradingcom, on Twitter, Instagram, Youtube.

PLEASE NOTE: This is ENTERTAINMENT PURPOSES ONLY. WE ARE NOT FINANCIAL ADVISORS!

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What We’re Trading Today of #AMC​ #RYCEY​ #BTC​ #DOGE

What We're Trading Today of #AMC #RYCEY #BTC #DOGE

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In This Video:

#AMC – I am Buying and Holding. Waiting for the spike tomorrow and setting a trailing stop loss. Once sold, we may short as well, and then buy back on the dip, and ride it back up.

#RYCEY – We are at $10k in shares, we are continuing to add shares until it gets picked up from earnings or on a monthly basis. This is a faith based buy, they have good fundamentals when the market for aerospace picks up again.

#AAPL – Today we moved $6k into apple calls, and $5k into stock. I believe they are a safer bet for the turmoil, and already down 10%.  #QCOM as well.

#CCIV – I am waiting on the CCIV stock price prediction to go even higher once we find out if the Lucid merger will happen. Once we know, I think that we could see the CCIV stock price going much higher if it is okayed or down to $10 if it isn’t.

PLEASE NOTE: This is ENTERTAINMENT PURPOSES ONLY. WE ARE NOT FINANCIAL ADVISORS!

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Is Robinhood Guilty of Stock Manipulation?

Is Robinhood Guilty of Stock Manipulation?

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In This Video:

We dive into that as well as the past days events.

StartTrading – Trading Today of #AMC #RYCEY #BTC #DOGE #RobinHood #StockManipulation #wallstreetbets. What trades we made today.

PLEASE NOTE: This is ENTERTAINMENT PURPOSES ONLY. WE ARE NOT FINANCIAL ADVISORS!

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What is Forbearance?

What is Forbearance?

Forbearance is an agreement between a borrower and a lender where the lender allows the borrower to postpone payments on debt temporarily.

 

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Understanding forbearance

A borrower might ask for forbearance if they are unable to make payments on their debt. Often these come as a result of financial hardship such as a job loss or illness. Forbearance is common in the context of mortgages and federal student loans. In the case of a mortgage, the loan servicer agrees that the homeowner can temporarily reduce or stop their monthly payments. The lender agrees not to pursue foreclosure proceedings during this time. Student loan lenders might also allow a borrower to enter into forbearance if their current income does not allow them to make their full monthly payment. However, those with student loan debt could opt for a deferment instead (similar to forbearance, but with the option to avoid interest).

Forbearance is like a highway rest stop…

As you’re driving down the highway toward your destination, you might run into problems and have to pull over at your local rest stop. Maybe you’ve run out of gas or have a flat tire. But eventually you’ll have to get back on the road to reach your final destination. Forbearance works that way too — You can take a short-term break from paying your debt, but eventually, you’ll have to start making payments again to reach your final destination of paying off that loan.

How does forbearance work?

When you go into forbearance, your lender agrees to pause your monthly payments for a specified period of time (often one year). Forbearance is a way for those facing financial hardship, such as a job loss or medical crisis, to avoid going into default on their loans. In some cases, such as with certain mortgages, forbearance might result in a reduction in the payment amount rather than a complete suspension of your payments.

During the time of forbearance, your loan will continue to accrue interest. That amount adds to your loan balance. After the forbearance period ends, you’ll have to resume your payments. For some mortgage forbearances, you might have to pay back the entire amount you would have paid during the forbearance. In other cases, the forbearance extends the life of your loan to make up for the time you weren’t making monthly payments.

Is forbearance bad for your credit?

Forbearance generally should not affect your credit score. In the long run, going into forbearance might actually be better for your credit score. Your payment history makes up 35% of the calculation to determine your credit score.

If you have a late payment on your student loans, this is a mark against your credit report and could have a sizeable impact on your score. When you go into forbearance, your loans are not in repayment. Therefore, your payments aren’t late.

If you’re worried you might not be able to keep up with your payments, forbearance might help you avoid a late payment that would impact your credit score.

What is student loan forbearance?

A forbearance is an option that many graduates use when they are unable to keep up with their federal student loan payments. Student loan forbearance often lasts for 12 months and allows borrowers to pause making payments on their debt during that time. Many people take advantage of this popular form of financial relief. As of 2020, 2.6M people currently have a student loan in forbearance.

What is the difference between student loan forbearance and deferment?

Student loan forbearance and student loan deferment are two terms that some people use interchangeably. And while they are very similar, there are slight differences.

You can usually get a forbearance for up to 12 months, but there’s no qualifying event necessary. You don’t have to be in school or have lost a job that prevents you from paying. However, it’s important to note that while you are in forbearance, your federal loans will accrue interest. The interest that accrues will then capitalize (that is, be added to your principal). You can get around this capitalization by continuing to make payments on your interest during your forbearance.

In most cases, it’s up to your lender whether or not to grant forbearance. However, some situations trigger mandatory forbearance, meaning your lender has to allow it. Those qualifying circumstances include serving in a medical or dental residency program, serving in Americorps or the National Guard, or having a student loan payment that is equal to 20% or more of your monthly gross income.

Deferment works a little differently. Like forbearance, deferment allows you to temporarily take a break from making payments on your federal student loans. Unlike forbearance, deferment may allow you to postpone these payments for years at a time.

The requirements for getting deferment are different than getting a forbearance. For a deferment, you’ll have to have some sort of qualifying event to be eligible. Qualifying events include:

  • You’re experiencing economic hardship. The definition of financial hardship is set forth by federal regulations and includes receiving public assistance or having an income lower than the federal minimum wage rate or 150% of the poverty line
  • You’re serving in the Peace Corps
  • You’re serving on active duty in the military (or have been on active duty within the last 13 months)
  • You’re unemployed or haven’t been able to find a job
  • You’re enrolled at least half-time in postsecondary school (meaning anything after high school)
  • You’re enrolled in graduate school
  • You’re disabled and participating in rehabilitation training

The big selling point for deferment over forbearance is that if you have a subsidized loan, it will not accrue interest during a deferment period. For that reason, anyone with subsidized loans would be wise to try for deferment first.

For both deferment and forbearance, your loan cannot be in default — You have to have been making all of your scheduled payments on-time. For this reason, it’s best not to wait until you’re already behind on your student loan payments to seek financial relief. If you know you won’t be able to keep up with your payments, make the request while you still can.

If you are seeking Public Service Loan Forgiveness (PSLF is a federal program that forgives the remaining student loan balance of those who have worked in public service for ten years while paying their loans), think your decision through carefully. The PSLF program requires that you make 120 payments on your student loans while working in public service. The months you are in forbearance and not making payments on your loans will extend the amount of time before you can receive loan forgiveness. If you’re seeking loan forgiveness and struggling to make your payments, it might make more sense to attempt to lower your monthly payment through an income-driven repayment plan.

Should I get a forbearance?

Deciding whether to go into forbearance on your mortgage or student loan is a big decision. There’s a lot to consider. In the case of mortgage forbearance, your lender might allow you to pause payments for six months and then restart the payments after that time. But they also might require that you pay back all of those payments at once when the forbearance ends. For someone with financial hardship, this might not be realistic. Be sure you understand the terms of your forbearance before you agree to it.

For both mortgage and student loan forbearance, your loan will continue to accrue interest in the time you aren’t making your payments. This accrual of interest could add a huge amount of money to your balance. For someone with a student loan of $40,000 and an interest rate of 6%, you’re looking at an extra $2,400 going onto your balance over the year. For a mortgage with a balance of $150,000 and an interest rate of 3%, you’re looking at an extra $4,500.

How can I apply for forbearance?

If you feel like you need forbearance, talk to your lender. For mortgage forbearance, reach out to your mortgage lender and explain the situation. Ask them if forbearance is an option for you. The process might look different from one lender to the next. They may ask you to prove that you are unable to make the payments because of financial hardship.

If forbearance is not an option, your lender might suggest a payment modification instead, where they will temporarily reduce your mortgage payments for a specified amount of time.

For student loan forbearance, you also apply with your lender. Depending on your situation, you might have to submit documents to prove your status if you’re a student, facing economic hardship, or any of the other qualifying factors.

Continue to make your student loan payments until you know for sure the lender has approved the forbearance. Failure to make payments until that point will show up as a missed payment on your credit report, and may result in a denial of your forbearance request.

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What is a Chief Financial Officer (CFO)?

What is a Chief Financial Officer (CFO)?

Definition:

chief financial officer (CFO) is a company executive who is responsible for making financial decisions to advance the company’s financial situation.

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What is a Chief Financial Officer?

A CFO is responsible for the short-term and long-term financial growth of a company. CFOs oversee the company’s day-to-day cash flow. They also make decisions regarding a company’s capital structure (which is the company’s combination of equity and debt) and making sure the company gets the best return. The CFO usually ranks third in the company’s organizational chart — though, the CFO is the highest financial executive in the company. CFOs typically report to the chief executive officer (CEO). CFOs often have advanced degrees and extensive career experience. In return, the CFO is often one of the highest-paid employees at a company. investing or trading your hard-earned money, it is a good idea to get an understanding of the market.

A CFO is ultimately responsible for making sure money is coming in and going out in such a manner as to benefit the long-term financial health of the organization. If there’s a problem, they let the club president (the CEO) know, and a plan can be formulated to get back on track.

What are the CFO’s responsibilities?

The CFO is one of the most important figures at any company. As the head of all financial aspects of the organization, the CFO has many responsibilities.

Reporting:

One of the primary duties of the office of the CFO is to report on and present the financial situation of the company. They do this for the benefit of company leadership so that they can make decisions regarding the company’s future. They also prepare financial statements to report the company’s financial situation to shareholders and analysts.

Financial Management:

The CFO is responsible for overseeing the management of the company’s finances. This job includes the day-to-day money management of analyzing the company’s revenue and expenses. It also includes bigger-picture decisions about investing and determining the best debt-to-equity ratio for their company. They’re also responsible for helping the company get the best return on that equity or debt.

Financial Strategy:

In addition to managing the company’s current finances, the CFO is responsible for the long-term financial strategy of the company. They do this in coordination with the chief executive officer and board of directors.

Leadership:

The CFO doesn’t do any of this alone. Instead, their focus is on the big-picture, and they typically delegate the lower-level tasks to those working under them. Being able to hire and lead well is a massive part of the CFO’s job because they can only achieve their goals for the company if the people working for them are able to carry out their vision accurately.

Some large nonprofit organizations also employ CFOs, and those executives have a unique set of responsibilities and challenges. Nonprofit organizations have different financial goals than corporations, and therefore their CFOs may have entirely different objectives in their roles.

Nonprofit organizations have different rules that govern their financial activities. These differences require that nonprofit CFOs have a firm grasp of nonprofit finance laws. Nonprofit organizations also have different goals for their money. In private companies, the primary goal is to increase profits. That’s what the board of directors expects of executives, and they often financially reward executives who can make that happen. In nonprofit organizations, the goal is to raise money to carry out their mission and to use that money efficiently. They’re often working with money from donors who likely want their donations going toward a cause near and dear to them, not to bonuses for executives.

Finally, nonprofit organizations often have constrained resources. Most nonprofit organizations aren’t large enough to necessitate a CFO, and those that can probably can’t compete with corporate CFO salaries.

What skills should a CFO have?

With the extensive amount of responsibility CFOs have, there is also a very particular skill set they must have. First and foremost, a CFO needs to have a deep understanding of financial matters. Since they’re responsible for guiding the financial direction of the company, they need to have a firm grasp on everything that entails. Many have a background in accounting and business finance that has allowed them to gain the experience they need for the job.

CFOs also have to be influential leaders. In addition to planning the company’s financial goals, they also hire and manage the people who carry out that vision. The CFO’s ability to lead their team will make a difference in the company’s financial success.

As technology changes, companies often look to hire CFOs who can adapt to the new technology of the financial world. This skill will help them to lead their company to stay competitive with the financial advancements of other companies.

A CFO’s ability to create relationships is also an essential part of the job. They work closely with others within their company, such as the chief executive officer and chief operations officer, as well as others in the financial industry, such as investors and financial institutions.

What are the benefits and limitations of being a CFO?

For those in the financial industry, the role of CFO is one that is highly sought after, and for a good reason. It’s the highest-ranking financial job in any company. One of the definite perks of a CFO job is compensation. With the average CFO raking in well over $100,000, they’re one of the highest-paid employees in a company. CFOs also get a lot of non-salary perks like bonuses and other cash incentives.

The financial management industry, which encompasses CFOs, is a fast-growing industry. While most industries are growing at a rate of 5% over 10 years, the Bureau of Labor Statistics estimates that financial management is growing at a pace of 16%. This outlook is good news for anyone working toward a job in that field.

For someone with a passion for finance, it can also be an incredibly fulfilling job. The CFO oversees the financial strategy of the company and can have a role in guiding the company’s long-term goals. They can be a considerable part of their firm’s success.

Despite the benefits of the CFO role, there are tradeoffs as well, as there are likely to be with any job. First, there is a significant amount of experience (10 or more years) required for getting a job as a CFO. Many CFOs also have costly degrees that got them to that role.

The industry is also highly competitive. Not every company has a CFO, which might limit the number of CFO jobs available. This limitation increases competition for those jobs and might require a candidate to relocate to find a job as a CFO. The compensation is also going to vary widely from one company to another. A CFO at a mid-sized regional company isn’t going to get the same salary and benefits as someone working at a Fortune 500. CFOs also often get a lot of their compensation from bonuses, which may shrink if the company’s performance goes down.

Finally, the job of a CFO brings with it a significant amount of responsibility. The CFO reports to the CEO who reports to the board of directors. There’s a lot of pressure on CFOs to make sure the company is excelling financially and that profits are increasing.

What is the difference between CFO and CEO?

The CFO and the Chief Executive Officer (CEO) are two of the top executives in any company. And while the two work closely together, they have very different responsibilities. The CFO oversees the financial aspects of the company, whereas the CEO oversees everything in the entire company.

The CEO is the highest-ranking executive in the company. The CFO is typically the third highest-ranking executive, after the CEO and the Chief Operating Officer (COO), the person who is responsible for overseeing business operations. The CFO reports to the CEO, and the CEO reports to the board of directors.

Like the CFO, the CEO focuses primarily on big-picture goals. CEOs delegate most of the detail tasks and instead work with other company executives to craft the overall vision for the organization. One of the executives they work with is the CFO to help meet the long-term financial goals of the company.

The two executives also have very different public images. The CFO builds relationships with other people in the financial industry, such as banks, investors, and financial institutions. The CEO usually plays a much more public role in the company — They are essentially the face of the company.

C-Suite executives (aka those with the term “chief” in their title) tend to be some of the highest-paid in any company. Being the third-ranking executive, the CFO is generally the third highest-paid employee. The median CEO salary in the United States is just over $750,000. The second-highest-paid is the COO, with a median salary of just over $450,000. Finally, the median CFO salary is just over $360,000. C-Suite executives are unique in that a large portion of their annual pay typically comes in the form of bonuses and other cash incentives. Therefore, the salary doesn’t tell the whole story.

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How To Trade Trend Lines

How to trade trend lines. Trend line strategy explanded.

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Trend lines are one of the most versatile tools in trading. You can use it in day trading, swing trading or even position trading.

However, most traders get it wrong.

That’s why in this detailed guide on trend lines, you’ll learn:

  • What is a trend line and how does it work
  • How to identify a trend line correctly (that most traders never find out)
  • How to use trend lines to identify the direction of the trend — and tell when the market condition has changed
  • How to trade the trend
  • How to ride massive trends using a simple trend line techniques

The vast majority of this consistency will rely upon your ability to quickly and accurately identify trends and then position your entry and exit points effectively within them. Remember, “the trend is your friend”. It’s cliche, but it’s true.

What is a trend?

Okay, so first things first, we need to define what a trend is before we can spot one.

At its most basic level, a trend is the general direction in which the market is moving

There are typically three main trends in which we would look to identify, an uptrend (bullish), and downtrend (bearish), or a sideways/flat trend.

There is no set time for which a market must be moving for it to be considered a trend, however, the longer a trend remains valid then the more solid and qualified the trend becomes.

How do you identify a trend?

The simplest way of identifying a trend is to pull up the chart and watch the price action of the currency pair.

Price action is shown on most charts in the form of candlesticks. These candlestick display historic price movements of an asset over a given time frame and are plotted on a chart.

This allows us to easily visualise trends and determine what general direction the market is moving in.

For most, if not all of our trading strategies, we will be looking to trade in uptrends or downtrends.

There are certain situations in which you may enter into a sideways market but these are few and far between and have a lot more risk attached. It’s better to stick to clear uptrends and downtrends and enter your positions with more confidence in the direction the trend is moving in.

Let’s break each one down and look at what qualifies as an uptrend or a downtrend.

Types of trend lines

As you may have noticed already, the market does not move in perfect straight lines. It is always fluctuating and oscillating, creating new highs and lows all the while.

It is for this reason that we must learn how to draw trend lines on a chart so that we can have a better chance at predicting where the new support and resistance zones will be.

Trend lines are likely the most common out of all the forms of technical analysis that you will see forex traders use. They are simple but very effective.

The two most common trend lines that we will draw on our chart will be on the uptrends and downtrends that we spot in the market – that way we can more easily visualise the trend.

Uptrend

As I am sure you have already guessed, an uptrend describes the price action of the market when the overall direction is considered to be upwards.

If you can see that the price is clearly moving up over a period of time, then the chances are you are looking at an uptrend in the market.

The fully qualify as an uptrend, each peak and trough of the price action should be higher than the previous peaks and troughs. In other words, we would need to see a series of “higher highs and higher lows”.

As you can see from the example above, the peaks of each movement in the price action are higher than the previous highs. We can also see that each low is higher than the previous low.

This indicates an upward momentum and the market is being pushed higher.

In general, we should be looking for opportunities to go long and try to ride the trend out. 

Downtrend

There are no points awarded for guessing what a downtrend is. Yep, a downtrend is what describes the price action when the overall direction is considered to be downwards.

When we see that the price is clearly falling over a given period of time, you will most likely be looking at a downtrend.

In direct contrast to an uptrend, we identify a downward trend by spotting “lower highs and lower lows” in the market.

We are looking for when each trough drops a little lower than the previous low and when each high looks to be weakening when compared to the last high,

This signifies that the market may be running out of steam and we have hit some buyer exhaustion. The market is now bullish and the trend is downward.

In general, we should be looking for opportunities to short the market on this occasion and ride the trend downwards.

How to draw a trend line?

Luckily this is pretty simple. All you have to do is find two major tops or two major bottoms in the market and connect the two points. It really is as easy as that.

Here are a couple of examples:

Uptrend

For an uptrend, we draw the trend lines underneath the structure along clear support points that we observe the price to rebound from.
 

Downtrend

In a downtrend, we draw the trend lines on top of the market structure along the clear resistance points that we observe the price to rebound from.
 

Not all trend lines are made equal

It is important that you understand the validity of the trend lines that you’re drawing. Just because you have connected two points in the market it doesn’t mean that this will be an obvious point of support or resistance.

In fact, most traders would not consider the trend to be valid until the price hits the trend line at least three times.

Here are some simple rules to keep in mind when assessing the validity of your trend lines:

  • The more times that the trend line is tested and successfully holds, the more valid it becomes. Imagine that the line becomes stronger each time it successfully resists the price movements.
  • You need two clear tops or bottoms to draw a valid trend line, but this is the weakest possible trend line you can get. It takes at least three to form a valid trend line.
  • Horizontal lines are the strongest. The steeper the trend lines become, the less likely the are to hold their level.

TIP: Do not force trend lines onto your chart. Far too often people will draw trend lines to try and support their own theories. These should be OBJECTIVE lines that clearly fit onto the chart. If you’re forcing it, then it almost certainly is not a valid trend line.

The trend is your friend

We have already mentioned this famous cliche once in our course, but it’s worth mentioning again. The trend IS your friend – seriously.

Many novice traders will try to predict moments of market reversals by constantly trade AGAINST the market. As trading is technically a zero sum game, it may seem counterintuitive to “follow the crowd” and trade with the trend but that is exactly what you must do if you are to be successful.

Typically, traders will see that the market is rising and will assume that this cannot and will not continue for much longer. If it is going up, it must come back down. And while that is true, it is exceptionally hard to pick a point of a reversal.

Put it this way, it is extremely difficult to predict a trend in advance when compared to identifying one that is already there.

This often goes against a lot of traders grains, which is potentially why so many people end up losing money in the market.

Experience shows that it is MUCH easier to profit by taking advantage of a current market trend rather than trying to accurately predict a new one. Why make it harder for yourself when you don’t have to?

Channels

When we draw a trend line, we are simply drawing one line on the chart to identify and uptrend or downtrend.

To create a channel, we draw two lines for the same trend, these act as the upper and lower trend lines. These upper and lower trend line signify the market support and resistance zones.

 
We use channels to gain a better perspective on the market structure and it will usually signify logical points to enter and exit our trades. These can be some of the easiest and most profitable trading situations that you encounter, you just have to be able to spot them accurately.
 

Note: For a channel to be valid, both of the trend lines must be parallel to each other. Most chart software will have a channel drawing tool to help you do this.

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What is a Forex Pip?

What is a Forex Pip?

This guide provides a quick overview of the fundamentals of Forex pip values, Forex pip meaning, what a pip is and how to calculate profits and losses in pips. By the end of this guide, you will understand how to calculate pips when trading forex currency pairs.

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If you’ve done even the slightest bit of research into the Forex (FX) market than you’ve probably heard of the terms “pips,” “points”, pipettes,” and “lots” thrown around a lot. If you are new to trading currencies this may all seem extremely confusing and alien-like terms. 

We put this guide together to explain what pips are and show you how pip values are calculated. By the end of this guide, you will have a solid understanding of what a Forex pip means.

Note: Please take your time with this information, as it is required knowledge for all forex traders. Don’t even think about trading until you are comfortable with pip values and calculating profit and loss. 

Here is where we’re going to do a little math. Don’t worry it won’t get too complex.

What is a pip?

A “Pip”, short for point in percentage, is the unit of measurement used to express the change in value between two currencies forex market. 

When we make a trade, we normally target a predetermined number of pips for our entry points and stop losses. A pip (percentage in point) is the unit of measurement that we use to express the change in value between the currencies in our currency pair.

To be exact, a pip is a standardised unit and is the smallest amount that any currency pair quote can change. Because of this, a pip is usually the last decimal place in a currency pair.

A pip is a standardised unit and is the smallest amount by which a currency quote can change. It is usually $0.0001 for U.S.-dollar related currency pairs, which is more commonly referred to as 1/ 100th of 1%, or one basis point. This standardized size helps to protect investors from huge losses. For example, if a pip was 10 basis points, a one-pip change would cause greater volatility in currency values.

As a rule of thumb, most of the currency pairs in the forex market are quoted to four decimal places. In this instance, the fourth decimal place is the pip, as shown below.

What Does Pip Stand For?

Some say that the term “pip” originally stemmed from Percentage-In-Point, others claim it stands for Price Interest Point. Whatever the origin of the term, pips allow currency traders to discuss small changes in exchange rates in readily understandable terms.

The value of a pip varies based on the currency pairs that you are trading and depends on which currency is the base and which is the quote currency.

Most currency pairs go down to 4 decimal places, but there are some exceptions like Japanese yen (JPY) pairs, which go down to two decimal places). For example, 1 Pip for EUR/USD is 0.0001, and for USD/JPY, it is 0.01. As shown below:

Calculating the value of a pip

Let’s take a look at some examples of market movements in terms of their pip value.

Example: one pip move

If the value of the GBP rises against the dollar by one pip then we would see a move like this.

In this example, the value of GBP has risen by 1 pip against USD. If we were longing on this move, we would have made a 1 pip profit.

Example: 100 pip move

If the value of the GBP rises against the dollar by 100 pips then we would see a movie like this.

Why are pips different between currency pairs?

The value of one pip is always different between currency pairs because of differences between the exchange rates of various currencies. A phenomenon does occur when the U.S. dollar is quoted as the quote currency. When this is the case, for a notional amount of 100,000 currency units, the value of the pip is always equal to US$10.

Now I know what a pip is, what is a Pipette?

There are forex brokers that quote currency pairs beyond the standard “4 and 2” decimal places to “5 and 3” decimal places. They are quoting FRACTIONAL PIPS, also called “pipettes.”

If you found the concept of a Pip a confusing concept, we are about to make you even more confused and point out that a “pipette” or “fractional pip” is equal to a “tenth of a pip“.

For instance, if GBP/USD moves from 1.30542 to 1.30543, that .00001 USD move higher is ONE PIPETTE.

Average pip movement in the market

On average, forex markets usually move anywhere between 80-100 pips per day. Of course, this differs between each market but that is a reasonable average to draw from.

Now, this may not seem like much, and on the grand scheme of things it isn’t, but when we include the use of leverage and margin trading, we can profit quite significantly from these kinds of moves in the market. More on that later in this unit.

Summary

You should now have the answer to the question of ‘what a pip is in trading’. Being conversant with the unit of measurement for changes in FX rates is an essential first step on the path to becoming a proficient trader. If you enjoyed this discussion of FX pips in investing, why not take a look at our article on the best currency pairs to trade in Forex?

What Are The Best Currency Pairs to Trade?

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