Investments in the stock market in 2021

The future ones investment strategies will be based on the stock markets evolving over the next ten years. If you want to take advantage of new opportunities in the future, you need to understand where to put your money in the near and distant future. 

Investments in the stock market in 2021

Resources and their importance

There are a number of different resources that will affect your investment decisions. One resource is market capitalization. Other investment resources include: 

  • Dividends; 
  • Market cap; 
  • Price to earnings (PE); 
  • Price to sales (PS);  
  • Market capitalization ratio.

Market caps

Market caps provide investors with a means of predicting where the value of the stock will go in the future. Market caps are typically updated every six months and are designed to provide regular estimates for future market cap values. Dividends are an investor’s way of earning interest on their stock investments. Dividends yield less profit for each share but have lower taxes as compared to dividends paid by stockholders. The reason for this is that dividends are more easily distributed by companies because they fall under the income taxes.

Price to earnings

Price to Earnings (PE) is a commonly used ratio to compare future stock market value against current stock price. It represents future earnings per share, or the company’s annual profit. Market cap provides investors with information about market cap. Both of these ratios are used as factors in determining future investments that could create financial risk.

Market capitalization

Market caps and market capitalization both fluctuate in accordance with the overall health of the American economy. However, many factors affect the long term health of the market capitalization index. One of these factors is interest rates. When interest rates rise, so does the market capitalization index. Many experts believe that the best time to make an investment in the future market capitalization index is during an uptrend.

If you’re thinking about investing in the stock market in the future, you should know what to look for in an ideal company. Experts recommend you to consider companies that have at least three decades of experience. This ensures that the business is stable and will be around for the long haul. Additionally, it helps to determine if the company makes the right kind of profits in the future. Long term investments in the stock market in the future are only ideal if the stocks have a decent valuation. A company that has a high market cap won’t be so profitable in the long run.

Ways to invest

There are many ways to invest in the future stock market. You can invest through companies that deal directly with the future industry. For example, you can invest in mining stocks if there is an increase in the demand for minerals. 

Another good way to invest in the future of the market is through derivatives. Derivatives are financial products whose values increase over time.

You should also invest in the future by buying shares of companies that are well known and have a strong market share history. These stocks are more likely to increase in value in the future. As you probably know, the stock market trends greatly depending on the state of the economy. 

What you should never forget?

However, you should do your best to stay informed and be on top of the current events. Stay abreast of what’s happening in: 

  • Politics; 
  • Finance; 
  • In the world. 

These are the most important things to remember, if you want to become a successful investor.

Your future financial security is highly reliant on the market you are investing in. It is therefore important that you invest in companies which can guarantee their future profitability. You mustn’t stay in the darkness while the company you are investing in flounders in the market. Remember that it is important to make 100% profitable decisions when it comes to investments in the future. You should never rely on data provided by unreliable sources, so try to find out about the best sources.

Prop firm challenge for Forex

I cannot believe that this is my first blog post of the year. I really should have continued to share my experience. I did not document that does not mean I stopped my journey to be financially free .

I shall be counting money like this soon 😉 Photo by Karolina Grabowska from Pexels

Talking about freedom, I think nowadays it is even easier to make big money than before . You don’t even need your own investment to risk. We have so many prop firms offering us so many opportunities. Granted these are not easy to win but at least the opportunity is there.

I myself am in the middle of a challenge now. I’m taking the test for 5%ers. I’m not doing very well but it is still an ongoing project. I still got 6 more months to prove if I would get the investment. It would be wonderful to win the challenge.

So right now I have two strategies . Swing and day trading. I’m honing my day trading skills still but I feel I’m ready with swing trading so my prop firm challenge is on swing strategy. It took me 6 months to develop my strategy . However, right after I took the challenge, I was slapped with the worst drawdown ever. Market was in consolidation mode so I took a big hit . Now I’m trying to get out of it with a few tweaks.

I will definitely share my experience on this journey .

Meanwhile I’m also working on my day trading strategy . This is the one which I’ve been trying for many years. I’m ok with it but not worthy of taking the challenge in the prop firm as yet. I feel day trading is more suited for prop firms and gives more bang for your buck .

So as you can see, things are moving on my side, slowly but surely.

I sincerely hope that I can make it to the next level.

Wish me luck

Happy pippin’

Fear is the enemy of Forex

A bit pissed for my last week trade. I have been doing the same mistakes over and over again , not able to get out of it seems. I’m ok with technical expect of my trading but psychological part is taking a toll on me. I’m feeling constant pressure of winning, therefore, I’m unable to give away pips, in other words, afraid of losing.

If i don’t give pips how would i able to gain pips ? Big problem. 

So next week, I’ll have to tweak my mind not to have fear of losing. 

After all these chaos, i still had a very small profit which I’m happy about. I’m delighted that i’m able to carry on winning streak consistently for a 6th week in a row now. never in my life had i had this sort of success in forex. 

Starting this year, my philosophy was to take care my “down”, “up” would be automatically taken care by the market. Which was ok up until this point but i guess I’m just thinking of my down way too much. I need to get out of it real quick. 

Fear is the enemy of Forex. 

So here I’m after 3 years, still doing mistakes and learning from mistake. 

I’m totally aware that it is a vicious cycle. It will continue to go on like this till i get better at this. Still up on the month , hopefully i can finish this month on top. 

Good luck for the last week of march traders 

Process over outcome, winning formula

Happy to report that i had yet another winning month. March was smaller than Feb but a profitable month nevertheless. I’m very excited about my achievement. so 2 months win, which means 8 weeks in a row and i suffered no losing week. Yes the wins are very small but these feelings are foreign to me.
my confidence is growing. Finally i’m seeing light at the end of the tunnel. Is my trading business going to work out ? am i on my way to become a pro profitable forex trader ?

Oh my god ! thinking of it giving me goose bumps. It’s been 3 agonizing years that i’m trying to make this work. At age 40, i had no time to look back. Time is important for me. I just can’t imagine to start something new at this point of my life. so feeling great over all.
As you know i’m a day trader, i trade 3 days a week for now. Usually other traders with my strategy trades 4 days a week but 3 days fitting me very well. so my first trading day is Tuesday. Most of the Tuesday’s i’m starting the week with a loss but these days are different coz of my mindset shift that i’m able to climb up from hole.

I’m taking trades fearlessly and just following process over outcome. I know, in the long run, i’ll come out as winner. This is a great tonic to master.

There are things in the market which i never saw before. perhaps i’m gaining lot of experience therefore i’m able to filter out bad trades. I was checking my journal on my ipad and was flipping through my old trades. I found many bad decisions, reckless trades and fear. Now i have put up a great system.

There are many expect of trades which i have done right. Like the money management, i didn’t blow any account. I was realistic at all time, never believed in quick money.
i have stuck to my strategy , i never system hopped. NEVER.

It seems all these hard work paying me off now. i know 2 months win in a row ensures nothing. i’ll have to prove myself at least for the next 6 months. i’m still on my early days. i do have a plan to share my verified myfxbook records after few months.

So , this month April, i’ll be trading less as my sister visiting me from the UK. I’ll perhaps trade just 2 weeks. I’m also increasing my position size from this month. This is very big for me. we will see how it goes.

Thanks so much for reading my story and see you next week traders !

Will forex give me this lifestyle ?

I have taken 2 weeks break from trading in the mid of April. My sis was visiting me from UK so i had to give her time. It was a welcome break for me to collect back my thoughts. I have been out of the city to an awesome island name Koh-Chang and we had really good time. 

This is where i want to live forever once i’m A pro forex trader 🙂

I was lying down on the beach-bed seeing the vast big blue ocean right in front of me. At that moment, I thought to myself YES this is the lifestyle i want to build for my self. 

Isn’t what I’m longing for ? Work offshore at my own terms and able to make money online ? 

Forex trading shall definitely  allow me this lifestyle. Although i was there for a short period of time but I just had a glimpse of the moment what i should get if i success in the business that I’m pursuing. This let me to work more hard and accelerate my process. 

So i managed to finish April on the high with little profit. What important is i did not lose the month so that was my 3rd winning month in a row. 

Right now we are in the middle of May. I’m still learning. It is about that 1% tweak that i needed to do every single day. Good news is I’m doing very little mistake nowadays. 

I feel i have become pretty good at controlling my losses. As they say once you can control your “down”, your “up” would be taken care automatically. 

I still have some small niggles to take care like I’m taking my profit way too early and leaving money on the table. But now I’ve learned how to check price action across board and determine if it was about to reverse. So hopefully next week would be better. 

Last week was -10 pips losing week for me however I’m still up for the month by 40 pips. However, because of commissions and losing too many trades, I’m still on break-even money wise. But i still have 2 more weeks to make some money for sure. 

The market was pretty bad this week. Even my peers and coach ended the week with very less profit. Really this is great pleasure for me to have someone posting their result on twitter daily basis which allows me to compare my performance. This way i don’t get into the negative zone knowing everyone else’s have had a bad week. 

It was the market, not us. 

All i had to do is trust my system and execute my trading plan. 

Cheers

No volatility in the Forex market , difficult to make money

The volatility in the market seems non-existence at the moment July-2019. There is absolutely no volume to drive the charts. No chart movements, no money.

This is my 3rd year of active trading but i have never seen such slow market day to day basis . I don’t know the fundamental behind it, don’t want to know as well. There are no follow through to make pips.

Forex Market now really compressed

so i think patience is the key now. Many traders may not trade during this summer time. But as a day-trader, my approach is different than regular swing traders. I like to follow my daily process and work my way. I don’t want to speculate but to trade what i see at that very moment. I show up at my trading desk exactly the same time everyday and ready to trade.
I trade what i see, not what i think. I’ll take what market offers me.

I will never complain the market. It is what it is. Remember not losing is WIN.

To tackle the slow market, now i have added meditation to my arsenal. I would meditate about 5 minutes before i start my planning session. I guess this helped me a lot to calm-down. There is a great app name Headspace to help for meditation.

I should not have a fix-mind rather i should have a growth-mind. I need to grow along with the market change.

Since i didn’t have any experience how to work during this slow market, i took 100 pips loss in JUNE. Even percentage wise it was pretty big loss. I should have made my position size smaller but lack of experience forced me to trade as before. Had i made my position size smaller, i could have had smaller loss (percentage wise). So even though it was a loss in the painfully slow market, i still learned something.

This week (July 22th-25th) i made just +37 pips which is of-course better than a loss. I’m getting really good controlling my loss.

I believe that if i can survive this market, i would be able to tackle any market in the future.

Profitable month in Forex but still disappointed

so i ended july with +1.59% profit. Am i happy? absolutely not. I think i have left a lot on the table. Profit or not, does not make me delighted these days. what makes me happy if i’m following my process 100%. I couldn’t follow my process last month, mainly due to fear, speculation and others. I’m really strong with my journal, i have detailed journal of what i do during my trading hour. so here are something that i have spotted.

i’m punching out early from the market.
since i trade NY session , especially the time when it overlaps with London. But i’m calling the day early therefore missing out the main action. It seems i’m happy to bank few early pips and closing down my trades even before NY opens. however, i tend to stay in the market if i’m losing and trying to come to break-even. Which is good anyway, Before i would never try to make it up even if i’m losing for the day. That is an improvement from my side. But now i need to graduate to the next level and suck out as much money as i can from the market.

Noticed big moves but didn’t pounce on it.
Last week of July, we finally saw some big moves from GBP and Yen. I Saw the move but again took early little profit and bailed out. I could have made a lot had i stayed with my trade.
How long i would trade for the day depends on price action, not by hours. There was no indication of price reverse and it was going my way. And yet, i would close down the trades. really need to work on my mindset here.
i should act according to the market and earn big wins.
i have already bagged few pips in my account for the month but i was too focused on saving those instead of making more pips . I did not take action when the market offered me money with open hand but i just denied in fear of losing what i have. Not a good approached least to say.

Speculation, acting what i think.
Big part of my strategy is to play according to market. I don’t suppose to speculate. I shouldn’t act on what i think is right. I should play what the market is offering me. Last week of July, market was moving and i should have stuck to my trades (given there was no reversal), instead i ran out to hide myself in the hole in fear of losing my pips. Amazing !

Things have to change from my end. I need to fix my mindset. I should not have fear of losing . In order to win BIG, i have to give a small loses away.
Shifting my psychology is key here.

Disappointing Month of July but atleast i should cherish the small win.
Let see how August goes….

How was my Forex trading in 2019 ?

Mixed Feelings. not what i have anticipated. When i first started trading in 2017 seriously, I really thought 2019 would be my professional trading year and that i would be earning a ton of money. That did not happen. I’m still far from it.

Although last year was the best Forex year i had in terms of pips income, but i’m still far way from being consistently profitable trader. I haven’t had 3 months in a row profit yet. It seems there still many things to learn.

The moment i thought i have learned it all, the next day market would smash me out of the park. While i’m taking notes of every mistake i’m encountering, truth to be told, i was bit frustrated through out the year. I felt pressure to be successful in trading. I had fear. I had confusion. Many times i thought , is it all worth it ?

Number wise, it was a great trading year. Yes i’m still not tracking my income but in terms of pips, it was a good learning year. It was perhaps the most productive year. I feel i’m really close to be successful. Just need to tweak few strategies. Last year, there was time when i thought i had nothing to learn anymore and that i should trade full position. Every time i decided to go full pro, i was smashed in the head the next month. Lesson learned.

today is January 6th, i will be starting my trading from today. i have taken good 2 weeks off due to Christmas and new year. I had gone through my journals , rechecked the chart screen-shots , read many articles so i’m feeling positive again. I sincerely hope i won’t be thrown out of the comfort zone again.

This year, i’ll be trading small account and work on my strategy to further bullet proof it. If i can make 3 consistently profitable months in a row, i’ll go big with big investments.
Most important, i should gain the confident to make it.

2020 would be good year (hopefully)

Work hard, stay disciplined and be patient, my time will come

This blog is my journey in forex . From day 1, I vowed to stay transparent about my progress. I feel really sad when i succumb to loss and therefore at times , i don’t even feel like blogging.

But that has to change. I need to overcome my fear and confront it. I have to follow my process no matter what. I know process over money or anything shall lead me to success.

Last week, we have seen some volatility especially with European currencies . I don’t care about the fundamental so i don’t know the reason exactly but i feel volatility is coming back in the market.

We have seen big movement however we did not see any follow through. There was no direction. I could not figure out which currency was the leader. It was a massive whipsaw it seems. And in the process , i lost money. I guess I’m almost 4% down last week.

Here is another fear, when i lose, i tend not to see my progress graph. I completely omit it which hurt me in the past. Now that i know, i adjust my position size accordingly. In the past,  after big loss, i was a firm believer that a big win is in the corner and shall wipe off all my loses. Needless to say, that never happened. I would go even more deeper.

However this time around , i knew what was coming. I lowered my position size in accordance to my account size. 

This way, my loses are not that big like before.

I would only up my position once i get back to where i was. Now that i know i won’t have a big loss money wise, so it won’t affect my natural flow of taking trades. I should trade what i see, not what i believe is right.

Trading is incredibly difficult job. It is not like other profession. I say trading is even harder  than achieving  PHD or being a pilot. At least these jobs, you are bound to success if you work hard. Trading, no mater how hard you work, if your mindset is not right , you are destined to FAIL. Very few people can maintain that level of discipline.

So after a losing week, i had gone through my trading journals. I checked each and every trade, also read what I have written at the time of entering trade. Just one mistake I’m doing over and over again, punching out early from the trade. The moment i decide to punch out, in seconds i notice the trade would go my way like massive move. This is very frustrating.

On Monday last week, i made the same mistake. It was supposed to be a winning day for me but because i bailed out early, i lost.

After that, rest of the week i could follow not to punch out early and i guess i got the fruit of it instantly.

On Thursday at one point, i was down -43 pips. It is a lot in my world but i could finish the day just -6 pips as AudUsd has given me +30 pips. If i was the old trader, i probably would have taken my trade out early. Thanks to me, i held on it.

Also My blog has been featured on FeedSpot blog. Thanks to Anuj Agarwal for kind gesture. They have list of the best 200 forex related blogs on his site. Check’em out, ton of resources.

So, good things are coming ahead for sure. I know one losing week means nothing , but I’m once again pumped up for the next week.

Bring it on !!

Turning Crisis into opportunity, forex trading update Q1 2020.

It’s been a while since i have written last time. Not that I’m out of Forex business just that i have been focusing on trading and didn’t want to think otherwise.

A lot has changed ever since. First the big news, I’m now a new daddy. It is perhaps the best thing ever. I’m enjoying the moment. My boy works as stress reliever for me. On the hindsight , it also means i have new responsibility. More than ever before, i really need to make this Forex work.

And it is Kinda working ….

Q1 just finished. I did not registered a losing month for the last 5 months since December.
Here it is what it looks like :

Q1 result

Yes you got it right, i have been trading for many years however i have only been serious for the last 3 years or so. I had to cross so many emotional hurdles to reach where I’m today. Not that I’m successful but i think my ‘slow and steady’ approach finally seeing some light at the end of the tunnel.

I will never give up trading Forex. It is the stubborn me who always thought I’m an inch closer to success.

During this covid pandemic, I’m working from home for my real job. I’m so blessed that I’m able to work from home really. Working from home has given me ample hours to think about forex. I’m trying to use this time to turn crisis into opportunity. NO NETFLIX.

This situation has given me new realization : what if i had lost my job ? How important it is to have a second income stream ? How important it is to have a skill? I’ll write in details about my thoughts in the next post.

Result wise, last 4 months could have been much better had i not done some silly mistakes. But i have no regret. It is what it is. However, I’m constantly checking myself and my thought process through out the trading session. Everyday is a battle. Every day i fix my mindset.

I cannot stress enough how important it is to document your journey. I have extensive journaling process to document my trading. The next day after the session, i would go through my journal and find out what i could have done better. Turns out, i do the same mistake over and over.

Fixing mindset is perhaps the most difficult task you might come across. It is the most important area that i struggled the most. Every problem that i have, is in my mind. I’m responsible for it, market is not to blame.

Market will do it’s thing, and I’m here to beat the market.

Till then,

Stay home, stay safe and stay blessed.