How Investment Banks Make Their Money

 

There were a lot of people who requested for this answer from a few e-mails I have been receiving, so I figured I will conduct an article which explains it. Investment banks have numerous methods in which they receive revenue. Just to inform you, the major investment banks are JP Morgan, Goldman Sachs, Meryll Lynch and Morgan Stanley. These investment banks have proven to be government backed, due to the size of the company’s operations and the how their overall performance impact our economy. An Investment Bank is exactly how it sounds. They handle other corporations, hedge funds, governments and individual investor’s funds, and also give them investment advice. Primarily, they have a number of top shareholders that invest huge sums of capital to the investment bank with expectations of the company’s stock to rise in the future, which will yield the investor a profit. These banks have traders and investments managers within its firm for various other methods of other financial gain.

Read More

The ‘Do’s and Do-Not’s’ When Trading The Financial Markets

 

The surprising fact about trading the financial markets independently is you first have to go through what doesn’t work in order to establish a method that does work! Every self-taught successful trader will tell you the same thing.

Firstly, the things not to do when trading the financial markets is attaching emotions when making trade decisions. As humans, we naturally have that attachment to money, the loss of it affects us in various ways. One of the worst ways is when making a loss on a trade without the structured risk management plan that is highly advised. This leads to the beginner losing 10-20% of their account and sometimes more. The next obvious thing in the beginner’s mind is to at least cover their loss by breaking even. As you would expect, this then makes the trader enter into riskier trades, without no set ups and worst of all still without no risk management. I mean, the ‘lucky’ ones actually manage to get their accounts back to square one (even though they suffer with potential heart attacks sitting behind their screens in the process). However, when the majority of beginners do this they begin to lose even more money – picture a mouse attempting to catch its tail.  This then programmes into their minds that trading is ‘gambling’, then why are others making ridiculously sums of money from it? 

 

Read More

Our View on Crypto Currency

Within the last few months the crypto currency markets have been the talk of the town, everyone is speaking about it and also trading it. Some understand the world of crypto/blockchain and how it works, but most don’t. For this specific reason, I have decided to construct an article explaining the pros and cons of the revolutionary crypto currency, and the Golden Seeds FX general view on this current speculative market. Due to Bitcoin’s substantial 108,107% increase reaching highs of $19687 it has been the main crypto currency that everyone seems to somewhat be interested and eager to be involved in. This is not the only crypto currency that is available for exchange, in fact there is actually currently 1,381 crypto currencies. However, there are currently 6 main crypto currencies with the highest market cap and volume and they are..

 

Read More

The Difference Between Money and Currency (Our Monetary System Explained)

Throughout this article I will be referring to what we call “money” in today’s society as currency as this is exactly what it is, not money. The money that we use for exchange for goods and services in today’s society is just a worthless piece of paper (or plastic if you want to include GBP plastic £5 and £10 notes).
Our paper currency we use today is commonly entitled as fiat currency. The word ‘fiat’ is latin for ‘’let it be done’’. Most of you that are reading this will think I’ve lost my mind in saying this, and may find my previous statement absurd. However, I will thoroughly explain the reasoning for my statement throughout this article. Be sure to absorb all information in this article until you have understood it because if enough people can understand this system that we are living in, it can surely change our worlds monetary system.

Read More

The Difference Between Trading and Gambling

I am sure that this is the topic that the majority of people would be interested in reading, as there are a number of individuals who still  class financial trading as ‘gambling’. I can understand why people refer to trading as gambling due to the small similarities they both have such as a stake size, however they are both completely different.

Read More

Why Choosing Your Broker Carefully Is Crucial

This is an extremely crucial topic due to the simple fact that when we deposit funds into our brokerage account, we are putting our trust in them.

There are various brokers you can choose for spread betting or CFD services with. Please bear in mind that you are putting your trust in your broker by depositing your funds into your brokerage account.

Read More

Trade What You See, Not What You Feel

 

This is a topic which I find very crucial, especially on my journey towards becoming a successful trader. It is extremely important to trade what you see, not what you feel and also not to listen to what other traders have to say about which direction they feel price is going. Remember, retail trading is an individual game where each individual is risking their own capital.

Read More

Perks Of Being A Trader

Successful trading invariably comes with all kinds of perks from freedom to spend more time with your family or friends, to beneficial trading knowledge and information. Sounds like the best job ever right? I mean it is, when you have the right mentor to educate and guide you on the necessary information and techniques you have to incorporate and implement. The Foreign Exchange market collectively has a market capital of over $6 trillion if you calculate all of the currencies around the world, hence the liquidity currency trading holds – which is also the evident reason why currency trading is very lucrative and consists of a high level of frequent fluctuations.

Read More

Risk Management

 

It is crucial to treat your trading account just like your bank account. The only significant difference is you have the benefits of increasing your account size with a controlled risk management rule. Controlling your risk is the most important part of trading, this is what differentiates the winners from the losers in the world of trading in the long run.

Read More

Economic releases and impacts

Despite the fact that I view the markets in a technical perspective for pin-point trade entries, it is extremely vital to ensure that I am up to date with fundamental news, and most crucially when it will be released. It is crucial to stay away from entering into the market with knowledge of high impact news being announced due to the fact that market participants react predominantly from the consensus of economic releases and ultimately the actual data that is released.

Read More