Why do some traders fail when they start doing online trading?

Some traders fail when they start doing online trading. Why is it happening? How can they avoid it?When we say that some traders fail when they start doing online trading, we do not mean to lose money: everyone who trades can lose money, this is part of the rules of the game. The traders who fail are those who lose (very little, no matter), they are discouraged and stop trading. Why is it happening?

Not everyone was born to do online trading

Online trading can be a source of great earnings but you should not think about trading as a machine to make easy money. When you start, the online trading does not take a big capital (you can start with a capital of just 10 euros) but it takes courage and winning mindset.

Making online trading means doing market operations, many transactions. Some of these will close in loss, others with earnings. Even millionaires traders lose money on some operation.

Those consider any loss as a tragedy, they are not really fit to do online trading. Better for them to do something else.

The winning trader is not the one who knows complex strategies, after all the strategies you learn or you can copy automatically using a social trading broker. The winning trader is the one who is capable of dominating the emotions.

And unfortunately not all are capable of it. To avoid loss as a trader is important, then, do an analysis of your personality to figure out whether you are able to withstand trading stress or not.

The wrong trading platform

Needless to go around: The online trading platform that you use it really makes the difference. In many cases, you can lose money because of a wrong choice.

The most striking case is that of unauthorized platforms: choosing a platform like that means losing all your money, because in most cases they are real scams.

scam-tradingBeware of scams

The worst way to start doing online trading is to believe the promises of easy earnings. Systems such as 1k Daily Profit, safe and instant gains. In fact, they are systems that do not work and that, indeed, they make you lose all the invested capital.

Those who start doing online trading should never believe, for any reason, to that kind of promise. They are fake and deceptive promises, designed to drive the trust and money of the less experienced.

Online trading is not a way to make easy money: to earn it requires an authorized and regulated platform, it takes commitment and takes time to devote. Anyone say something different, probably, is trying to cheat.

Author: Editorial staff of 70 trades reviews blog


Stop loss: what is it and how to use it

Stop loss are a tool to control trading losses. You can lose with online trading, you have to remember it always. Even the best traders, those who can make millions, are not immune to losses because no one can control what the market does. Good trades are not afraid of losing money, simply using the best tools to control the risk. The best tool to control the risk of loss is called stop loss.

Using stop loss is absolutely necessary if you want to keep track of your losses. It is a simple tool but must be thoroughly understood.

A stop loss is the maximum level of loss that a trader is willing to accept. As you open a position on a trading platform, it is always advisable to fix the price level at which the platform automatically closes the position. It’s a really simple procedure, even for those who do not have much experience and so always recommend doing it.

stop-loss-chart-explainHow to set stop loss

The novice trader who has come to this point of the article is surely thinking that stop loss is a great idea (he is right) and has already figured out what the right loss threshold is willing to accept: 0. And here you are wrong.

The problem is that the price of an asset on the market varies continuously and so if you stop the loss to zero you seriously risk that your position is closed immediately because there is a small loss. In practice, if you set the stop loss at zero, many operations would be closed immediately. Online trading would be a waste of time. Most of the operations would be closed before they could generate profits.

It’s obvious that fixing an excessively large stop loss also has negative effects because the expected losses could be excessive. Fixing stop loss is an art that you learn with practice.


The incredible story of Vitalik Buterin, the young inventor of a Cryptocurrency

Bitcoins are not only cryptocurrency but for sure, Bitcoins are the first, most well-known, widespread and profitable virtual currency currently available on the financial markets and one of the most interesting online investment ever.

We have already wrote an article about the most interesting digital currency (Bitcoins: All You Need To Know About it) available for savers and traders, but today we want to focus specifically on the currency known as Ethereum.

crypto-currency-70-tradesThis is a currency, but it is also a platform used not only to carry out criptocurrency transactions but also to create and publish smart contracts applicable in all areas of human activity. In fact, these are  computer protocols that optimize, speed up, verify and control the actual performance of any type of contract registered, avoiding having to resort to a contractual clause.

However, in order to be truly operative on the system, these smart contracts must pay for the use of computer power offered by the P2P network, through the unit called Ether, which works both as a virtual currency and as a power source for the system.

The network is based on the same principles that characterize the other criptocurrencies, so it is open source software accessible to everyone thanks to Blockchain technology that it can offer anonymous, immediate and completely secure transactions without, however, central or supervisory body as it has no physical location. In practice, unlike other digital divisions, the Ethereum network is not simply a network for credit exchange, but it is a revolutionary network to turn different types of contracts in a secure and shared way.

As mentioned, smart contracts are not confined to the financial sphere, but can potentially include electoral systems, domain name registration, crowdfunding platforms or intellectual property. In this sense one can well understand why Ethereum possesses long-term prospects even more good than the Bitcoins.

A revolutionary that was recognized as one of the best online investments and also has brought fame to the world’s youngest founder of the Ethereum network. He won the prestigious World Technology Award in 2014. This guy is Vitalik Buterin, a Russian boy of 1994 who grew up in Canada since 2011 with a big interest in criptocurrencies, he founded the periodical Bitcoin Magazine.

During this time, he came for the first time to the idea of a platform that exceeded the limits of the Bitcoins. In 2013, therefore, it begins to develop the structure of the first Ethereum network, creating the core self-regulatory code that will be the framework of the system. Since then, Ethereum Buterin has also contributed to numerous similar open source design projects for criptocurrencies platforms and is still dependent on KryptoKit, a Canadian company that is the founder of a Chrome app.

The Ethereum platform, however, undoubtedly remains its greatest success. In 2014 the crowdfunding campaign is know as the most successful crowdfunding up until then. Meanwhile, the versatile platform created by Buterin has evolved and improved, taking its place right in the markets and attracting the attention of technological giants such as IBM and Microsoft.

Author: Editorial staff of 70 trades reviews blog