What Is The Best Investment?

 

 

The creator of bitcoin is never going to be poor again. As at the time of writing this, Satoshi Nakamoto is worth more than 15 billion dollars. If all the positive predictions about bitcoin prove true, he could be worth a lot more, and even if things do not go as planned, he would still be worth several hundred millions or a few billions.

This is not the first time a guy would create something, and then become a billionaire after his creation received massive adoption.

The guy who created Microsoft stayed as the richest man in the world for 2 decades, before “losing his position.” He is still one of the wealthiest and most influential men in the world – he is a pioneer investor in many technologies of the future.

                            What is the Best Investment?

The best investment is the one you have created. That is the simple truth of the matter. When you create something out of nothing, you have control over it. This is a rarity in today’s world – for a person to control his own wealth.

When you create something out of nothing you become the biggest investor; the biggest stakeholder. As the biggest stakeholder you make the decisions, and dictate the direction of the project or idea.

Of course that is a big responsibility because if things go bad then the whole world puts the blame squarely on your shoulders. But what entrepreneur, innovator, or investor wants to fail, and be labelled an idiot by every financial paper in the world?

Part of this investment would be hiring the best hands available so as to make the project successful. Yes, the idea should be starting to form in your head by now. The best investment is an enterprise. An enterprise is like a living, breathing organism.

What are some examples of investments you can control?

A book or a publishing house: A book can be a truly great investment; it is a good example of creating something out of nothing. When a person pours their thoughts and ideas into written form and publishes them, they become reality.

When the book becomes a best seller, it becomes an enterprise. It could be translated into several languages, be adapted for movies, and even have a whole series made out of it.

The author retains the rights, and retains control of the enterprise; the author decides what becomes of the book, and the direction it takes. Several millions of dollars can be made from books, and they can even make the authors billionaires.

Authors can have offices with many people working in them. They can even establish publishing houses of their own, and then go on to have many authors under them. It is the same thing; you will have to select the best authors, and editors and everyone else to make it work.

But just because you do not have a talent for writing does not mean that you cannot build an investment you can control. Here is something you might have the talent for.

A recipe, a restaurant, food: If you know how to cook, then you may just have the key to wealth in your hands. People will always need food, although sometimes it is not about the need – but about pleasing the palate.

A special recipe can build an empire; it can help one create a famous restaurant which will attract people from all over the world, and make a fortune for the owner. People can even make a fortune without a special recipe, although that may be attributed to something else.

Another possibility is creating a food item, or a variant of an existing food item that will be shipped to the buyers’ location. Maybe pizza, maybe a burger, maybe rice and chicken. If it is unique in taste then it is your creation. You made it, you invented it.

The recipe can be your closely guarded secret. You can even mix the flavors in a different location so as to ensure that your trade secrets do not fall into the wrong hands.

Software: software companies typically have more than one type of software. Even if you start out with one software right now, as soon as it becomes successful there is no doubt that you are going to hire a team of developers, so as to improve your current creation, and also to create new software.

There is no shortage of ideas to choose from; software can help people secure their homes and cars, help people sleep better, help people exercise, eat better, type faster, help people access the internet, and so on. Someone just became a billionaire by developing software to help people schedule appointments.

There is no reason why you cannot do something similar, or even better. The idea has to be yours, and you can gradually bring it to life. With that success will come a change in your financial status; technology is money.

A Trading system: for those who want to know more about trading, here is a free ebook on trading. A unique trading system is a great asset; many have already become billionaires by creating their own trading systems.

It all starts with an understanding of the underlying assets; currencies, crypto, commodities, stocks and so on. With that understanding comes a desire to find a way to trade it successfully. After find that way, you need to test it out for some time.

Some even get a loan to make it possible. By the time the test is over, you will probably have some investors looking for you, either to hire you to trade for them, or to partner with you. It is usually a good idea to ignore them.

Find your own way; build your own enterprise. Trust computers as little as possible; at least until you are successful enough to make sure that your computers are hack proof; and that your office cannot just be broken into, and your information stolen.

You can build your own investment house; and have investors trust you with their money. You help them make money, and you keep some for yourself.

What do these investments have in common?

Control: this has already been mentioned more than once in this piece, but it will not hurt to mention it once more. With these kinds of investments, the idea and execution are all in the hands of the person who created them.

In contrast you can buy stocks in a company and have absolutely no control of that money or investment. If everything goes well you will not mind too much, but if the CEO goes crazy and drives the company aground your money goes to smoke.

Movability: in most of these types of investments, the success lies in an idea, not in some building. Therefore, if the government of your country makes it hard to do business, you can just pack your bags and your laptop, and go to another country to set up shop.

In contrast to this, a real estate business is immovable; all it takes to kill it is a signature from the president or any other high ranking individual. You imagine that there will be protests, and that is true. Nevertheless, the notion holds true; a president can kill a real estate business on a whim. The whim may not even be targeted at the real estate business – it could be an economic policy, and it could wipe out the real estate market and many other markets in the economy.

The bottom line:

Stocks, gold, real estate, and business are all good investments. However, what we have attempted to decipher here is the best out of all the available options. Many people actually have these keys in their hands, but are too lazy or unimaginative to turn them into wealth. Hopefully, reading this post will give you the impetus to make the move.

Can you really trade forex with 20 dollars?

 

 Assuming forex and binary options are the same thing, this question applies to both forms of trading. In fact, it also applies to crypto, and to any form of trading at all. How much is enough? Can you start with 20 dollars? If yes, then how does one go about it, and if no, then why do many brokers offer opening balances as low as $5?

Well, there are many key points to consider before arriving at an answer. Be warned; this post will have what may be described as an overly positive note. Probably because the writer has done it – more than once.

Doing it has provided some clarity as to what is possible and what is not, and also about what circumstances make it possible to trade with such a small opening balance.

You Can Trade With 20 Dollars If

You have the patience: patience is a necessary quality for successful trading; it is what helps you wait until the right conditions are met before entering trades. With patience you are not in a hurry to enter trades, regardless of how inviting they may be. With patience you are also not in a hurry to double your balance.

That calmness of mind is a key ingredient because you wait for the trades to come to you, rather than rush into them – leading to losses.

Have a strategy: Know how to win trades. A strategy is an approach to the market – it is how you read the charts, and how you identify opportunities in the market. Of course, there are literally hundreds or thousands of strategies out there; most of them are developed by individual traders as their own cheat sheets in this business.

Your strategy should not be only about making money – it should also be about managing losses. Losses are part of the business of trading. They cannot be avoided. It is also important to ensure that the strategy helps you to manage your funds along the way.

Have experience: with luck it is possible to flip $20 to $200 in a short time, but the difference between luck and experience is that the former soon runs out while the later continues to increase. With luck the money may soon be lost, while with experience the trader may continue to break more records.

The problem with experience is that it is only gained through pain. While one may trade with $20, and then turn it to a huge amount, it is unlikely that it can be done at the first go. It may be done after several goes, meaning that the trader must have made several losses before this current success.

That means the trader is not really starting with $20, but with the sum total of his previous losses, plus the current $20. In some cases, that could amount to several hundreds of dollars.

Have a good broker: this may be a bit of an irony because most of the best brokers have higher minimum balances. Nevertheless, it is possible to find some decent brokers who will accept even $10 as a starting balance.

Finding a good broker is necessary because this business is hard enough as it is. Having to deal with thieving brokers can make it a mission impossible. Thieving brokers can manipulate the charts so as to ensure that traders lose, and then they take the money. They can even refuse to pay successful traders. Just imagine going through all that stress, only to find that you cannot withdraw your earnings.

Have a good psychology: many traders focus on having a good strategy, forgetting that a strategy is only good if you maintain a calm head long enough to use it. Therefore, it is just as important to build the mental muscle needed to keep following your strategy no matter what the markets throw at you.

A good psychology is as good a tool as any other; it is what empowers the trader to make the best of the markets, and to trade for the long term. This psychology may be obtained by reading books and other instructional materials, but some insist that it only comes through pain. The pain of experience.

The Bottom line:

The goal should not just be to trade $20 into $200 or more, and then lose it – it should be to trade successfully. Trading successfully means reaching your full potential as a trader; building a business around what you do, and changing lives. Making money as a trader is the basic thing, but sadly, it is something that most people never quite manage to do.  

That's right; even with $2000 you are more likely to lose your money than you are to make profits in the long term, unless you are an elite trader. 

Free Ebook On Trading

 

This is my special gift to those who want to start charting and trading. Whether forex, or crypto, or binary options or stocks. As long as the goal is to profit from the price movements of assets, then trading is trading.

This work will not appeal to those who think they will double their capital in a few days and start driving Lamborghinis; but it is meant for those who wish to make trading a profitable vocation that can help them cater to their needs, and have something to give to those who are in need.

Trading is like a hard nut with delicious juice inside. The trouble is getting to the deliciousness. It takes a lot of work and a lot of suffering. In fact, it seems that there is a prerequisite amount of pain that one must endure in order to become successful at it.

A fresh person with no experience whatsoever in trading will not find this book very useful because it skips the rudiments of the trade.

However, even with some experience it can still be very hard to make any money in this business. Therefore, this is a compilation of some facts which when put together, can mark a turning point in the trading career of any trader.

It will help you make money, and keep making it until you get used to making money from trading. However, these are the things to keep in mind.

Trading Starts In The Mind

In the beginning, I prayed for a way to make 1 dollar every day. That is quite a small amount of money, but it can amount to something considerable over time. 1 dollar per day is 365 dollars in a year, a lot more in ten years, and something different over a lifetime.

One dollar for me could be five dollars for you, and a thousand dollars for someone else. It is not the exact amount that matters but the mindset behind the prayer.

What I was in fact wishing for was a way to make small amounts of money on a consistent basis. Trading with that wish in mind means that I have a certain approach to the markets. No matter what the market does, I aim for my one dollar, and as soon as I have it, I go away.

There will always be another day to trade. The markets will always be there. True, it may change in form, but it will still be there. In the future we may no longer trade currencies against each other; it may be cryptocurrencies against one another. But it will still be trading.

This kind of mindset will likely require some good capital so as to avoid the adrenaline rush that has made many a trader go “all in” on the markets. All in is something you do with gambling not with trading. If you can go all in, then you are a gambler at heart, not a trader. You need to acquire the mindset of a trader, which is what will keep your account safe.

The mindset is king. It is even more important than having the skills. One may have excellent skills and yet fall short because the mindset is not there. For example, who told you that you must make a profit every day or every week? That would make you a king or a god of the markets. Such arrogance!

The mindset of a winner in trading would allow you to take a loss with dignity. Walk away today; live to trade again tomorrow.

This is pretty much the best kept secret about trading. Success is not calculated by how much money you make – it is calculated by how long you can keep the money. Many people make a lot of money with trading, and then they make videos online in which they call themselves kings of the trade. Alas! They often lose that money soon afterwards.

“Flipping an account” which means doubling or tripling the balance in a short time – is a very attractive, and very interesting, but it is also something that you never hear professionals doing.

Have A Strategy

In order to survive in trading for a long time, one needs to have a strategy. This means having a particular approach to the market – a set of rules under which you buy or sell. The strategy must also tell you how to manage losses.

Otherwise, you will be proud and happy during a winning streak, but will lose everything as soon as a losing streak happens.

Having a strategy is just like having a plan. It gives you an idea of why you are here, what you want to achieve, and how you want to achieve it. However, having a plan is not all it takes. In fact, anyone can have a plan.

The problem is following said plan when things don’t go the way you planned. “whatever course you decide upon, there will always be someone to tell you that you are wrong. There are always difficulties arising which will tempt you to believe that your critics are right. To map out a course of action, and follow it to the end takes courage -” Ralph Waldo Emerson.

Ralph Waldo Emerson was not a trader, but he was a philosopher – a very good one! His words are just as relevant in trading as they may have been in military affairs, as well as anything else.

Bad days will come, and when they come, you will doubt your strategy. You may start to amend it; this way or that, thinking that you are making improvements to your trading strategy. In truth, that is desperation. Emotions can run wild sometimes during the heat of the trade; and unconsciously one may want to make a big win to recover the losses.

Sometimes, that can work. Most times that can lead to ruin. That is like jumping off a cliff and learning to fly as you fall. Generally a bad idea.

A good bird should train before the big flight, and should stick to the rhythm of flapping its wings. Even when the air is turbulent, it should continue to fly in its pattern. It may take shelter for some time, but the storms always pass, and so life always goes on.

There is nothing wrong with a trader taking shelter and resting his wings. However, changing your system on the fly is a very bad idea.

They often say no system is perfect. That means changes will often need to be made to a system, even if the system is profitable. Well, such changes will have to be made after testing, and being sure that they are beneficial.

Without adequate testing over extended periods of time, these “improvements” could burn your account.

Therefore, it is a lot more professional to have a strategy, and then stick to it. An additional strategy is an added boost, but that is only after passing it through the normal process of testing.

Have your Own Way Of Seeing Charts

One of the biggest lies of trading is “candle charts.” The markets do not work in four hour cycles. They do not work in one hour or fifteen minute cycles either. The markets are fluid, and they move in a fluid, flowing manner.

Candle charts can be useful for analyzing historical movement of prices, but as a trader you are not trying to analyze historical movements of prices, are you? You are trying to profit from movements that have not yet happened. Candle charts can help you do that with some training, or if you are very intuitive.

To make them work for you on the long term, you need to have your own way of seeing the charts. Some people turn them upside down, others superimpose other charts on them, while others use trendlines.

The bottom line is that you need to see the charts differently than what the chart shows.

There is an argument about using the MT4 platform. Some argue that it was created to make money for the creators, not the users. Of course, others argue that there are traders who successfully use that tool, and who owe their success to the developers of that trading platform.

Nevertheless, for trading to work, it has to be done on your terms. You have to decide your entry independent of a chart.

Have you ever wondered why some professional traders use multiple screens? They do so because they need to see the price movements through different systems. They understand that one chart may not be enough.

You need to understand that as well. While multiple screens may not be feasible for the average trader, but at least multiple charts can be. While looking through candle charts, you can still look at other charts.

Most importantly, you must also look at the charts in your own way, through your open eyes, and with your own mind. This is the only way to trade for the long term.

Of course, this brings us to the topic of indicators. Are they good or bad?

Indicators Are Good For Decorating Your Screen

Indicators are many, and they come with many different features. However, relying solely on indicators to trade will ultimately need to ruin. For one thing, they are based on rules and strategies – someone else’s rules and strategies.

As a person who has simply purchased the indicator, it is impossible to say you fully understand it, and how it works. In most cases, people do not want to understand how it works; they just want something that tells them when to buy or sell.

They want something that eliminates the thinking process – the need to exercise their brains. Thinking is hard, and most people want to avoid it. People actually pay as much as several thousand dollars for some kinds of indicators, so naturally it had better be good.

The problem is that it cannot be good forever. Indicators are built on strategies, and strategies are based on how the markets are behaving now. They can change behavior at any given moment – meaning that any systems built yesterday can suddenly become obsolete today.

In that case, the shiny colors on the indicator can be good for decorating the screen – they can make it look good and even impressive.

If something impressive on your screen is what you want, then it doesn’t look like there is a problem. However, as profits are the main thing, it seems that indicators alone cannot do much to help a trader in the long term.

Alone. But they may work when combined with something else?

When combined with an intrinsic knowledge of what you are trading and how assets move, indicators can be a very good working tool for traders – they can give the trader a different perspective; help them see angles to the markets which they may otherwise miss.

Some traders trade signals that are combined with other market conditions. Monitoring both situations can be strenuous and time consuming. With an indicator, the trader can greatly reduce both the time and stress involved in trading this system.

Sometimes trading comes down to making split second decisions. Indicators can offer one the advantage of speed; therefore ensuring that the trader enters into the trade on time, therefore making the profits.

Indicators can even help one monitor the win rate. However, it is important to keep something in mind regarding win rates. 

You Don’t Have A Fixed Win-Rate

That is one thing that traders, especially new traders seem to be missing. The win rate is unpredictable; it can change so quickly. An indicator that shows an 80% win rate today will probably show a 20% win rate tomorrow.

Remember that win rates are based on strategies. A win rate is like a performance report; indicating how well a strategy is doing at the moment.

Also remember that strategies – like indicators are likely to fail at some point; they are likely to go out of sync with the markets. Sometimes, the out-of sync (ness) could last a short while, and other times, it could last for very long.

Sometimes, strategies that are out of sync can come back into fashion and become profitable again. Other times a strategy is gone and gone forever.

The important thing to take away from all this is that a win rate is not fixed – it could change, and could quickly go from positive to negative.

It is therefore a good idea to keep its frailty in mind. Making trading decisions based on the win rate may not be a very good idea. For example; taking very big trades.

If a win rate was constant, then one could double a losing bet. However, it is not – which means martingale is fire. Fire like hell.

There Is A Special Place In Hell For Proponents Of Martingale

By all means increase your lots/stake but not when you are losing… do this when you are “sure.” This is exactly the opposite of what the martingale strategy preaches. Martingale encourages people to double their lots with each loss.

The idea is to keep doubling the lots until you win. Theoretically, this should work because the win should come in the end, no matter how long it takes.

It could take quite long. The trader should keep in mind the fact that the markets can act irrationally for quite a long time, and you cannot continue to double your lots indefinitely. With the martingale strategy it is very easy to go from 1 to 100 very quickly.

If you have an uncommonly large purse, and can keep doubling your lots then you should be fine. All it takes is one win to recover all the losses, and even to make a small profit.

Before using this strategy it is important to ask oneself if one has an uncommonly large purse. Can you keep going for as long as it takes?

The martingale strategy encourages one to risk big for the chance of a small profit. It is stupid, and can only be propagated by wicked people who want to see small traders burn. If there is a hell, rest assured they are going there.

Closing

If you have not yet passed through the pain phase, then you are uncommonly lucky. Maybe you will never pass through it. if it comes, however, you will have to bear it with grace. It will burn away your impurities, and make you worthy of the money that one can make through trading.

Remember that trading starts in the mind. The approach you have to this business is the biggest factor that will determine whether you make it or not.