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Short term trading

How you can make money on short term trading and why it is better for inexperienced investors to forget about this method.

An investor can earn on the difference in quotes in two ways. The first is a long position. In this case, the investor plays long and buys shares in order to then sell them at a higher price. A short term trading means that when trading securities, the investor earns on the fall of the stock. In this article, I will tell you how traders make millions on such transactions.

How to make money on depreciating stocks

A short position is of interest to the investor, since, as a rule, shares become cheaper faster than they rise in price, and with the right choice, the profit of a bear can be really serious.

To open a short position, an investor borrows shares from a broker against the security of money in the hope that the securities of this particular company are overvalued and their value will fall in the near future.

The investor then buys the shares at the current price and then waits for them to fall in price. It is assumed that when and if the share price does fall, then the investor buys the same amount of securities that he borrowed, but at a reduced price.

Before choosing a company whose shares can be shorted, a competent investor thoroughly studies its history, financial statements and finds the key risks that threaten the company.

The investor receives profit from the difference between the purchase price and the sale price. That is, you could borrow shares from a broker and sell them for $10. The stock then went down to $5, at which point you sold it. So your profit was $5. True, from this profit you will pay a small commission to the broker. In addition, if you suddenly return the shares when they pay dividends, the broker may require you to pay them too.

It is worth noting that selling shares from your own portfolio cannot be a short position. When you sell shares that you bought earlier rather than borrowed, you are closing out a long position.

Shorting pros

An experienced investor who correctly predicts the behavior of the securities of a particular company can earn very serious money on shorting. A textbook example of successful shorting is George Soros’s game against the pound sterling in 1992. Soros managed to earn $ 1 billion on the “black environment”.

What are the risks of short term trading

The problem is that a short position cannot be opened for a long period. This means that after the expiration of a predetermined period, you will still need to return the borrowed shares to the broker – regardless of whether the securities have fallen in price or not. Therefore, if the shares that you bought at $5 rose in price to $10, then in this case your loss, not profit, will be $5.

This is one of the main risks of a short position. When you buy stocks in the hope that they will rise in price, then your losses are limited – if you spent $100, and the securities fell to zero, then you will not lose more than $100.

In the case of a short, your loss can be anything, because the stock can rise in price from $100 to $1000, and you will have to buy them at this price in order to repay the broker.

An example is the recent situation with investors from Reddit. They specifically bought large quantities of shares of companies that, according to investment funds, should have become cheaper. Due to the actions of the participants in the popular forum, the value of the shares of companies such as the AMC cinema chain and the game retailer GameStop, on the contrary, began to rise.

GameStop

According to some estimates, shorts have lost about $5 billion due to the rise in GameStop stock alone.

Tesla

Another example of an unsuccessful short is the story of the relationship between investor Jim Cheinos and electric car manufacturer Tesla. Cheinos has been betting Tesla shares for five years. According to the investor, the first four years everything was not bad. Then in 2020 the shares of the company headed by Elon Musk have risen in price by 700%. “It was very painful,” admitted a well-known short who made $500 million shorting Enron stock in the early 2000s.

In addition, going short is not only risky for the investor, but also for the broker who lent you the stock. Therefore, the broker may set certain conditions for the borrower. For example, a broker determines how much money a client’s brokerage account must have in order to open a short position. Moreover, the broker can forcibly close a short position if the stock suddenly starts to rise. The share price at which the position can be closed forcibly is also negotiated in advance.

Another nuance is that not all stocks are open for a short position. The short trader’s choice is limited to the most liquid securities.

What is short term trading squeeze

Such a situation, as in the case of GameStop, can lead to a short squeeze.

A short squeeze occurs when the stock of a particular company suddenly rises in price, and several short sellers are forced to close the position at once in order to minimize losses.

This can push the price even higher, which will attract the interest of ordinary investors to the securities, who are also starting to buy. In this case, the remaining short sellers are forced to buy shares even at a completely unfavorable price. Thus, the price can rise for a long time, and short sellers will find themselves in a very significant minus.

How to protect yourself when use short term trading

It is better for a novice investor not to try to make money on a short position, as this is simply too risky an option.

To avoid big losses, experienced investors use stop-losses – exchange orders that allow you to automatically sell shares when they reach a certain price.

Also, the same rule applies to a short position as to investing in general – don’t invest more than you can afford to lose.

FAQ

What is short term trading, or short?

A short position, or “short”, means that when trading securities, the investor earns on the fall of the shares that he borrowed from the broker.

How much can you earn on shorts?

An experienced investor who correctly predicts the behavior of the securities of a particular company can earn very serious money on shorting. A textbook example of successful shorting is George Soros’s game against the pound sterling in 1992. Soros managed to earn $ 1 billion on the “black environment”.

What are the risks of a short position in trading?

The problem is that a short term trading cannot be opened for a long period. This means that after the expiration of a predetermined period, you will still need to return the borrowed shares to the broker – regardless of whether the securities have fallen in price or not. Therefore, if the shares that you bought at $5 rose in price to $10, then in this case your loss, not profit, will be $5.


Disclaimer: This article is not investment advice. Assess the risks yourself before making any investment decisions.
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The most stable currency in the world. Dollar Alternative.

Rising rates in the US, rising inflation and political instability are putting pressure on the dollar almost more than the effects of the pandemic. What currencies can claim world dominance instead of the dollar?

The tighter US monetary policy becomes and the further the world moves away from the quantitative easing policies that were actively pursued during Covid, the more discussion about further dominance arises. In this article, I will try to figure out whether the dollar can be considered stable, which currencies are the most reliable now, and how to treat cryptocurrencies.

How to determine the stability of a currency

A stable currency is an asset that you can invest in for several years without the risk of losing all of your investment. But the price of stability is low returns. However, a post-COVID shock can affect even the most stable currencies known to us.

So, at the beginning of the year, the euro was predicted to grow. However, the war in Ukraine, which began in late February, brought down the stable currency of the eurozone by 4% – to a local minimum of $1.06 per euro. By April, the euro recovered to $1.08, but still pulled back to $1.07 amid statements by the European Central Bank (ECB) that it was curtailing the economic stimulus program in 2022.

The Japanese yen felt no less strange. In mid-April, at auction in Tokyo, the national currency reached a 20-year low of 126 yen per dollar. This happened against the backdrop of a statement by the governor of the Bank of Japan Haruhiko Kuroda, who promised to continue to ease monetary policy while other countries are tightening it.

Against the background of Kuroda’s decision, analysts have already predicted the yen to fall to 130 per dollar – and, in their opinion, it can go further: to 133.

Judging by these signals, even those currencies that we used to consider reliable are experiencing a serious shake-up in 2022. Let’s try to figure out which currencies still have prospects to remain stable, despite the post-COVID and geopolitics.

What is happening with the dollar today

The stability of the US currency is measured by the dollar index – an indicator that shows the value of the USD against a number of currencies. Its base level is 100. Anything above this means that the dollar appreciates against other fiats. By mid-April 2022, the index stood at 101.

The dollar strengthened against the background of the aggressive monetary policy of the US Federal Reserve. Analysts at Goldman Sachs believe that in 2022 the rate will be raised as much as seven times. The next meetings of the US Federal Reserve System (FRS) are scheduled for May 4 and June 15. Most likely, the rate at both meetings will increase by 50 basis points, which will again send the dollar into growth. Also, traders should monitor the correlation of the dollar with bond yields and inflation.

Most stable currencies 2022

Swiss Frank

In 2021, FXSSI analysts named the Swiss franc (CHF), which is officially used in Switzerland and Liechtenstein, as the most stable currency. At the time of writing, 1 CHF was worth $1.06, or €0.98.

The stability of the franc is due to the strong Swiss economy and a highly developed banking system. The “safe currency” status also supports its peg to gold, analysts add. In addition, the inflation rate in the country over the past few years has averaged 0.6%, although in February 2022 it reached 2.2% amid geopolitical turmoil and rising oil prices. The average inflation rate in the country in 2022 is expected to be 1.8%.

Investors believe in the reliability of the franc so much that after the start of the war in Ukraine, they rushed to buy this currency, because of which it temporarily broke parity with the euro. However, the Central Bank of the country gave a clear signal: if the franc continues to rise in price, it will intervene in the situation.

Norwegian Krone

Another currency that is traditionally considered stable is the Norwegian krone. Although it is not an expensive currency, the economic situation in Norway makes it reliable: the country has virtually no external debt.

However, geopolitics also put pressure on the krone: the price of the currency has already fallen several times along with oil prices. And the decision of the Norwegian Central Bank in April to buy foreign currency for 2 billion crowns a day in early April collapsed the national coin by 1.6% against the euro and 2.1% against the dollar.

Singapore Dollar

For a change, consider another currency that has nothing to do with the eurozone, but constantly gets into the annual lists of the most stable. Singapore is attractive to investors as a rapidly developing financial hub with a loyal tax system. It is there that big business from China has recently been fleeing from restrictions.

In addition, there is no wealth tax in Singapore and it opens up access to investing in Asian markets. Perhaps that is why Bridgewater founder Ray Dalio and Google co-founder Sergey Brin have businesses in this country.

The most promising currency 2022

In light of the toughest anti-Russian sanctions in history and the redistribution of trade flows, analysts’ eyes are turned to the Chinese yuan. Experts unanimously say that the yuan can become the new world currency, but for this, China will have to significantly change its tough approach to the economy and carry out reforms.

Baizhu Chen, a professor at the University of Southern California, quoted by Markets Insider, is confident that the military conflict in Europe will be the key to many countries wanting to move away from the dominance of the dollar:

“The yuan will inevitably be used more and play a much larger role in the world. Some countries are afraid that their economies may become hostages of US policy and dollar hegemony, and therefore they want to diversify risks.”

In Africa and the Middle East, the yuan is increasingly being used for transactions. So, Saudi Arabia even plans to pay China directly in yuan. In addition, the latest report from the International Monetary Fund (IMF) states that central banks around the world have been diversifying their assets over the past 20 years and are increasingly opting for the yuan and reducing the share of the dollar. All this can lead to a redistribution of the influence of the world’s largest currencies in the near future.

How stable are cryptocurrencies

The creator of bitcoin (a person or group of people under the pseudonym Satoshi Nakamoto) wrote a manifesto for cryptocurrencies in 2008. He wanted to create a world where people could transfer money to each other without resorting to banks and intermediaries, and revolutionize the world of traditional finance. In the years since its launch, Bitcoin has truly changed the way we think about money, and its price has soared to unprecedented heights.

However, skeptics still believe that the excessive volatility of bitcoin makes it difficult to consider it a stable asset. The head of investment bank Oppenheimer, Ari Wald, told CNBC in an interview that the volatility of cryptocurrencies must be accepted: it will remain in this sector for a long time.

BTC is falling as sharply as it is taking off: Bitcoin is now worth $40,000. Although back in October, the first cryptocurrency broke the value record of $66,000 and overtook the Swiss franc in terms of capitalization.

Better things are with the main competitor of bitcoin – ether. Its cost is kept in the region of $3 thousand. Ethereum’s growth is due to the growing popularity of decentralized finance (DeFi) and the fact that large banks and companies are interested in the Ethereum blockchain.

FAQ

What is the most stable currency in the world?

The strongest currency in the world is the Swiss franc, which is used in Switzerland and Liechtenstein. The stability of the franc is due to the strong Swiss economy and highly developed banking system. The status of a “safe currency” is also supported by its peg to gold.

What’s wrong with the dollar?

The dollar is still the most popular currency in the world. However, against the background of the war in Ukraine and the redistribution of trade flows, the Chinese yuan is strengthening, which can compete with the dollar for its hegemony.

What is the most stable cryptocurrency?

Cryptocurrency and stability are not yet compatible. This market, on the contrary, is characterized by high volatility. But, unlike stable currencies, cryptocurrencies give the trader a chance to earn.


Disclaimer: This article is not investment advice. Assess the risks yourself before making any investment decisions.

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ARIBUKA.COM

Ⓜ️ Today I have added a new investment project to my blog – ARIBUKA.COM. Welcome on my blog of earnings. I continue to give you the best place for earnings. This investment platform started 16.09.2021. A new project that caught my attention. A very high quality website with a unique design. Platform start today – 16.09.2021. Investing at the start is always an advantage for all investors.

Basic information of this investment project

  1. Platform with an average up to 0.2% – 1.3% earnings daily;
  2. Daily accruals, 7 days a week;
  3. Five investment plans with different profitability;
  4. The possibility of investment for 1, 3 months, as well as on an unlimited basis;
  5. New promising project;
  6. Instant payments;
  7. Nice and convenient personal account of the site;
  8. This platform is well prepared from the technical side and has unique design.

Project legend

Investment platform is a new generation accessible to everyone. Collaborative work for two years has shown results that have exceeded all expectations. By diversifying our capital into six areas, we have been able to reach the average monthly rate over 20%. At the moment we invest in such instruments as: IPO – the first public sale of shares of a joint stock company. ICO is the initial placement of new cryptocurrency units. Startup – young and promising companies that have recently started their activities. Offline business – buying a pool or share in a large business. PoS Mining is an online mining option without the need to purchase expensive equipment. Pre-ICO – a sale of company tokens before the oficcial ICO is held.

Benefits of ARIBUKA.COM

  • Professionals in their field
    Our team consists of specialists with longstanding experience;
  • Maximized profit with low risks
    Careful selection of investment instruments and diversification gives excellent results;
  • License to operate business
    Our company has all the necessary documents to legally engage in investment activities.

You can read how to get RCB here.

❗️ However, do not forget that all investments on the Internet are high-risk. You can both earn and lose your money. Do not expect super profits or hope that you will make a profit forever. Any investment projects can stop payments at any time.

If you need to exchange currency, then you can do it here.

ARIBUKA.COM Marketing

This platform offers us five investment plans. The amount of income you receive depends on the amount of your investment. I would advise you to invest and do not be afraid of any tariff plan. This platform pays out a profit in the instant mode. Let’s take a closer look at all of them:

ELEMENTARY

This tariff plan is suitable for novice investors who want to get to know our company. The investment period is only 1 month. You can return your deposit at the end of the investment period. Average daily profit is 0.3%. At the “Elementary” tariff, your funds work in one of the most profitable areas – Pre-ICO.

Short information on this plan

  • average daily profit is 0.3%
  • the total profit is 9%
  • investment period is 1 month
  • daily acrual ofprofit
  • you can withdraw the deposit after the end of the deposit term
  • minimum deposit $ 20
  • maximum deposit is $ 100000

SHORT

Your investments are in the fund’s turnover for 90 days on the short tariff plan. The average profit of investors is 0.5% per day. You will be able to withdraw your deposit after the end of the investment period. With the “Short” tariff, your funds work in the Pre-ICO area.

Short information on this plan

  • average daily profit is 0.5%
  • the total profit is 45%
  • investment period is 90 days
  • daily acrual ofprofit
  • you can withdraw the deposit after the end of the deposit term
  • minimum deposit $ 20
  • maximum deposit is 50000

Conservative

On this tariff, based on the past results, we expect an average profit of around 0.7% daily. “Conservative “represents it self investments in prospective areas such as: POS Mining and Offline Business. There is also a yield graph on the investors page. In it you can see the profitability for the month as well as for all the time.

The minimum deposit on this plan is only $ 20. You will receive profit every day, 7 days a week.

For example: if you invest $300, you will receive about $2.1 every day, 365 days a year. After the end of the deposit period, you will receive about 255% profit. Of this profit, 100% will be the return of your deposit. And also you will get 155% profit.

Balanced

On this tariff, based on the past results, we expect an average profit of around 1% daily. On the “Balanced” tariff your funds work in such high-potential areas as: IPO, ICO instruments, as well as invested in perspective startups.

The minimum deposit on this plan is $ 500. You will receive profit every day, 7 days a week.

For example: if you invest $3000, you will receive about $30 every day, 365 days a year. After the end of the deposit period, you will receive about 365% profit. You will get back about 11000$. Of this profit, 100% will be the return of your deposit. And also you will get 265% profit.

Aggressive

The most profitable tariff plan presented by our company. Investing with us you will be able to receive an average up to 1.3% daily. In the “Aggressive” tariff your funds work in 2 directions: Startups as well as IPOs.

The minimum deposit on this plan is $ 2000. You will receive profit every day, 7 days a week.

For example: if you invest $10000, you will receive about $130 every day, 365 days a year. After the end of the deposit period, you will receive about 475% profit. You will get back about 47500$. Of this profit, 100% will be the return of your deposit. And also you will get 375% profit.

Also, on the graph of each tariff plan, we can see how much the investor has already earned. This information can be viewed on this page.

Payment systems

This investment project provides big numbers of payment systems. You have the opportunity to open a deposit through the Bitcoin, Ethereum, Litecoin, Dogecoin, Tether (ERC20), Tether (TRC20), Tron, BNB BEP-20 , Shiba Inu BEP-20.

The following limits on the minimum and maximum amount of the deposit are set for the tariff plans.

Minimum amount: 20 Tether TRC-20 , 150 Tether ERC-20 , 0.002 BitCoin , 0.05 Ethereum , 0,15 LiteCoin, 80 DogeCoin , 230 Tron , 0.036 BNB BEP-20 , 1000000 Shiba Inu.

Maximum amount: 250000 Tether TRC-20 , 250000 Tether ERC-20 , 5 BitCoin , 78 Ethereum , 1430 LiteCoin, 80 DogeCoin , 3000000 Tron , 3.58 BNB BEP-20 , 3571420000 Shiba Inu.

How to register in ARIBUKA.COM?

  • You need to follow my link to register on the platform
      • After switching, in the upper right corner of the site you need to find the “Registration” button;
      • You need to enter all the necessary data to create an account. It will need you each time to log into your account in the future. Next, fill in the two checkboxes at the bottom of the window.

      ❗️Be sure to check your invitation – Monetka.

      How to open a deposit?

      Using the username and password you entered during registration, log into your account. Click the “Invest” button. Firstle you need to choose a tafiff plan and click to invest.

      Advice from Monetka. You can also make a reinvestment from the balance. The main advantage of this promotion is that there is no commission for transferring money. Also, a big plus is the smaller amount of opening deposits on tariff plans. For example, you can make reinvestment for the most profitable plan “Aggressive” at 0.006 Bitcoin. While the minimum deposit amount is 0.042 Bitcoin.

      How to order a payment?

      Before withdrawing funds, check the correction of your payment wallet. If you have not added a wallet, do it by going to the “Wallets” section of your account.

      In order to withdraw funds, you need to go to the section “WITHDRAWAL”. Then you need to choose a payment system with an available balance for withdrawal. Enter the withdrawal amount and click to the button “Withdraw Funds”.

      Do not forget that there are minimum payments on the platform.

      The minimum withdrawal amount is: 10 Tether TRC-20 , 150 Tether ERC-20 , 0.002 BitCoin , 0.03 Ethereum , 0.1 LiteCoin, 60 DogeCoin , 60 Tron , 0.02 BNB BEP – 20, 250000 Shiba Inu.

      Affiliate Program

      Invite friends and acquaintances by your referral link and you will receive a bonus from the profits of your partners.

      By helping other people get the opportunity to increase passive income in Aribuka, you will not only increase the benefits of increasing the income of the company’s clients, but also get an additional source of capital growth.

      The best part is that you can become a company’s partner without even having your own deposit on platform. That is why you can make money with Aribuka with zero investments from your side and no income limit.

      On this platform, you can receive up to 50% of the referral commission from the profit of your referrals.

      Social networks

      This platform develops its social networks. This is a big plus. We can follow the news of the project. There they put out information about the weekly earnings. In my opinion, it is very convenient to follow the development of the project.

      The project has such social networks as: Facebook, Instagram, and Telegram channel. Join and you and stay informed.

      ARIBUKA.COM security

      You can further protect your account from hacking. You can connect Two-Factor Authentication. To do this, you need to download the application to your phone. Then enter the code or scan the quar code. After adding, enter the code digit to synchronize the settings.

      Questions Answered

      If you have any questions, you can always write to the online support of the platform. The consultant will quickly answer your questions and help with any problems. And you can always write me. Also, you can search for the answer to your question on the FAQ page.

      Conclusion

      The administration of this platform has already given my referrals money many times. This time shouldn’t be an exception. The project is well prepared from a technical point of view and also has a beautiful and user-friendly design. In my opinion, the platform has a great future. I recommend this platform to add to your investment portfolio. I see the potential for great growth and development.