Why You Should Invest in Gold in the Current Market

Gold has been around for a long time. It supersedes the currency that any country uses at the moment. This might be why many investors are reluctant to let go of this yellow metal. Its sheer ability to survive and even shine in a changing economy is an impressive feat by itself. If you have kept an eye on the news, you would have discovered the hype surrounding this precious metal.

As the rest of the global economy is clouded in confusion and instability, the yellow metal is making a reemergence. Everyone is making gold investments as they are tentative about what else they can finance. This means that everyone is hedging their bets and putting their faith in the precious metal. Here are a few reasons why you should as well:

Increase in Demand

When something increases in demand, you want to be the person having an adequate stock of the item. This way, you can take advantage of the increase in price. Well, this is just one of the reasons that you should get a decent stock of the yellow metal. The demand for it has been increasing in 2016. As mentioned, everyone is flocking to this precious metal as they believe that it can help them ride out most tough economic situations. Due to this, there is larger number of people involved in the commodity. As such, there are more people willing to pay for it as well. All in all, it is a good idea to have some on hand.

Counteracting Currency Depreciation

Many people have the tendency to invest in the yellow metal whenever they feel that the U.S. dollar is slipping in value. Of course, the American dollar is not the only currency of importance. Many people are also watching the performance of the Chinese economy as well as its currency. Due to the economic slowdown faced by China, its currency too has taken a bit of stumble. After the Brexit in Europe, the British Pound also decreased in value. This is yet another reason why people are finding solace in the precious metal. It retains its value even when currencies tend to fall. As such, it is a good way to ensure that you always maintain some form of investment that is valuable.

Diversifying Your Portfolio

If none of the other options appeared appealing, at the very least, you should buy the precious metal to help diversify your portfolio. By doing so, you are ensuring that you protect at least a small portion of your overall portfolio. Gold offers a great way to do this. This is because the yellow metal is inversely proportional to most asset classes. This means that when other assets perform badly, the precious metal increases in value. Thus, it acts as a safeguard in the event that the rest of the market hits dangerous lows. As this is something that has been occurring for a while now, it really is a good security option.

These are just a few reasons why you should consider buying the yellow metal. It will serve you well both now as well in the future. This is certainly something that you should consider.

The Initial Brexit Effects on the Pound’s Trading Relationships

The Brexit announcement came as a surprise to many, and even though a lot of traders had hedged their investments before the referendum, the currency markets still saw a lot of action in the immediate aftermath. Plenty of uncertainty still remains, especially around the pound’s value, offering many future trading opportunities through Oanda. However, it was in those first few days that the Brexit result had a huge impact on the pound’s value and trading relationships.

GBP/EUR

Pound Sterling (GBP) exchange rates saw a general weakening against most currencies it is partnered with. As the euro is one of its major partners and used close to home, the initial impact was understandably that the euro strengthened as the pound dropped to its lowest value in 30 years. The euro remains bullish against the pound, with the Bank of England expected to cut interest rates in an attempt to strengthen yet the Eurozone’s inflation has provided a good boost for the euro.

GBP/USD

The USA is another of Great Britain’s premier trading partners and the USD/GBP is one of the major currencies traded across the world. Immediately the US dollar strengthened in light of a Brexit victory, with many traders and investors viewing it as a safe choice for once. Since then the pound has stabilised a little, with the announcement of a new Prime Minister, which has helped it to edge a tiny bit higher against the dollar, but is still nowhere near pre-Brexit levels.

GBP/JPY

While not one of the major currency pairs, the Japanese yen and Pound Sterling are two of the most traded in the world. As a traditional go-to choice for traders and investors during times of uncertainty, it was of little surprise to see the yen make huge gains before and after the UK’s EU membership referendum. The yen has also since improved against the US dollar, even though it too holds a level of uncertainty.

EUR/USD

The euro and US dollar both strengthened against the Pound Sterling after the Brexit vote, and current forecasts are for a move lower. The remaining uncertainty in the markets with potential effects of the UK actually leaving the EU could see them both benefit further as well. The relationship between the two has stayed fairly stable, with the US dollar having a slight edge for the most part. Either way, uncertainty in the currency markets appears to be the new normal, offering ample opportunities for traders.

5 Key Steps To Mastering Online Trading Platforms

Today, the Internet has made it possible for anybody to trade on the world stock exchanges and the forex markets, but that doesn’t mean online trading is something that you should enter into lightly. It’s a complex business and, as every seasoned trader knows, acquiring the skills and discovering a winning formula takes time and effort. But, if you do your research and get to grips with the fundamentals, it’s surprising just how fast you can become a competent trader.

Who knows? With dedication, you could even become a full-time trader.

1. The tools of the trade

The first step on the path to being a successful online trader is to learn the basics – without losing money. Fortunately, most online trading platforms offer mock trading trials and simulators where you can experiment, get a feel for trading and discover whether or not it’s for you.

Once you’ve got to grips with the basics of online trading, the next step is to acquire the tools you need to take your trading skills to the next level – before you start buying and selling for real. Again, there are plenty of sites out there to help, such as CMC markets, which offers platform trading tools, dealing with CFD, binary and Forex trading. With tools, guides and even webinars all designed to help you hone your trading skills and identify those all-important trends behind successful trading, tools such as these are essential if you are serious about online trading.

2. Accept that you aren’t going to become Warren Buffet overnight

No matter what anyone tells you, playing the markets is not a quick route to riches. You have to be in it for the long term. The markets go down as well as up and, just as with any form of speculation, you shouldn’t don’t risk cash you can’t afford to lose.

For many, this means starting out small. While there are platforms like The Share Centre that will allow you to trade in amounts as small as £7.50, it’s a good idea to make sure you have enough capital for at least several months of trading. It’s unrealistic to expect to be successful immediately and transform a £20 pot into a million quid. A much better strategy is to develop a trading plan and save your money towards a solid fund of several thousand pounds, while learning the basics and honing your game through mock trading and simulators.

3. Learn the art of discipline

Just as important as learning the fundamentals of online trading is learning the art of discipline. This is at the core of any successful trading strategy. Be consistent, do your research, use stop losses and don’t be tempted by gut instinct even though that gut instinct will be proved correct from time to time.

Successful trading is a combination of experience, analysis and informed timing. Your early mistakes in the world of trading should tell you this and help you formulate a strategy that works. Develop a plan based on your experience and experimentation stick with it. Don’t succumb to short-term fear. Online trading is not a short-term thing. Be patient and persevere for long-term rewards.

4. Expand your skills and knowledge

Even as you become more successful, you shouldn’t rest on your laurels. Never stop learning. Online trading is a hugely complex subject. Choose the niche that suits you best, whether that’s Scaler, Day or Swing trader and become an expert in what you do best. For example, do you favour fundamental analysis or technical analysis? Discover the trading styles that you excel at and delve deeper. Read books and industry publications, listen to the experts and look for new sources of information and inspiration.

5. Diversify

At the same time, while you might have your own trading strategies, always diversify. Online trading, no matter how good you are at it, is notoriously unreliable. Don’t put your eggs all in one basket. Instead, distribute your capital among a wide choice of commodities.

Online trading demands time, energy, commitment and, of course, hard-earned cash from your day job. However, for those that can invest all of these and learn the skills of the trade, the rewards can be great.