Thursday, April 25, 2013

Diversify Your Stock Or Bonds Portfolio By AutoCopying Best Forex Traders

During hard times, economic crisis and unstable markets it is a good idea to diversify your stocks or bonds portfolio. But people are asking what other diversifying options beyond stocks, bonds or commodities are out there. Before I explain the idea of auto copying best currency (forex) traders, let´s see what more classical diversification options you have for investing in 2013 and beyond.

REITs – Real estate investment trusts can provide you a stream of income as well property ownership.
Master Limited Partnerships – MLPs are mainly involved in the oil and natural gas pipeline business.
Preferred Stock – This is a hybrid security. It offers dividend payments and also limited voting rights, but is sensitive to interest rates and so you should monitor it for credit quality.
Annuities – These are contracts that will bring you an income stream over a certain period of time. They have an advantage that they can guarantee you a minimum level of return.
Precious Metals – Gold’s value is historically correlated to currency valuations over long periods of time. Over shorter periods, it is influenced by shifts in sentiment. If you do not wish to bother with buying physical metals, consider investing in ETF.
Commodities – A basket of well chosen commodities, like precious metals, energy (e.g., oil) or agricultural goods (e.g., wheat) provides a hedge against inflation. It also lowers the volatility of your portfolio holding only stocks.

– Foreign currencies can help protect your portfolio against fluctuations in the U.S. dollar. But they can also be used for a long or short term trading. Forex market is huge with billions of dollars traded on a daily basis. Traders are able to profit when markets go up (long positions) but also when markets go down (short positions) and thanks to a use of leverage their profits can be very lucrative compared to other investment vehicles.  But trading on your own can be very hard and risky if you do not know what you are doing.
And here comes your diversifying opportunity for 2013 and beyond.  If you simply do not know how to trade currencies or you do not have time to do that you can take advantage of fast growing and popular forex social investing networks. They allow you to create your own portfolio of best forex traders and auto copy their trades on your trading account.
One of the largest forex social investment networks is Zulutrade. This company was founded in 2006 and created bridge between forex traders (signal providers) and followers (people who copy other traders). There are thousands of signal providers you can choose from by different criteria like: overall profit, average pips/trade, maximum drawdown, number of open trades, minimum necessary equity, win% , number of followers and more. Each trader has detailed statistics that will tell you more about his trading style, strategy, risk and money management. Zulutrade uses advanced formula to rank all signal providers. Visit Zulu ranking to see best performing forex traders.
As this article is about diversification, I encourage you to check our other article published lately. It is about managing your risk by diversifying your investment by auto copying  more than one signal provider. It can be an eye opening reading that will show you how you can acheive returns like 300% p.a. while your risk can be very low.

Tuesday, April 23, 2013

Forex CashBack And Rebate Calculator

<a href="">Forex portal</a> Forex social trading and investing networks like eToro OpenBook or its biggest competitor Zulutrade are becoming more and more popular because they allow its members to follow and auto copy some of the best forex traders.

But there are also other copy platforms where you can follow profitable signals. One of them is ForexCopy System from one of the largest international and many awards winning brokers InstaForex.

This system can offer you something that can increase your forex earnings no matter if the trade you just copied was profitable or not. I am talking about forex rebate or cashback. If you open your trading account via this blog, you will get paid 0.5 pip back from spread you pay for every trade. No matter if you copy someone else or trade manually. Your cashback will be paid directly to your trading account daily. Just use our rebate calculator to see how much you can earn. Simply choose your lot size (mini or standard lot) and estimated number of trades you expect to execute on your account.

Example: Let´s say that you will trade a standard lot size and in average you execute 50 trades every month. Your rebate (cashback) rate is 0.5 pip/trade. These settings will make you $250 every month. That can be a very nice second income. And if you use those extra money to boost your trading bankroll and compound, your future earnings as well as monthly cashbacks will grow much faster.

Forex Live Trading News Today

Enjoy our live forex trading news feed provided by awards winning international broker InstaForex. News are updated every 30 seconds. <a href="">InstaForex portal</a>

Friday, April 19, 2013

ZuluTrade Strategy For Risk Free 300% Profit

Zulutrade is one of the largest social investment networks where you can follow (auto copy) trades of experienced and profitable forex traders (also called as signal providers). There are literally thousands of signal providers so it can be a hard work to choose only the best of the best. If you think that you simple check Zulu ranking and pick the top positioned trader you might get in trouble soon. History showed us that some signal providers are able to perform very well for some time so the climb to number one spot, but after some time they disapear as fast as they got there.

As you can see, there are tons of traders with ROI of 100% p.a. and more so following them can be very rewarding and profitable over some time. But on the other hand, high returns  often mean high risk. That´s why a task of choosing the right signal provider has to be taken very seriously. And even when you do it carefully, there is no guarantee that your money will be safe. Remember old saying regarding any investment that past performance doesn´t secure the same or similar results in future.
We think that the best strategy for choosing right signal providers in order to create a risk free but profitable Zulutrade portfolio is wide diversification. And we mean very wide. Other social investment network eToro allows you to copy 20 social gurus, but Zulutrade has no such a limit and you can follow and copy as many signal providers as you wish.  So we suggest you to choose many signal providers in order to minimize your risk.
To help you realize what your results could be, we have used an unique Zulutrade tool. Their simulator enables you to choose up to 40 signal providers and run a simulation of their performance. So we took current first 40 traders from Zulu ranking and simulated that portfolio results for past 12 months. Starting capital was $10.000 USD.


As you can see on the screenshot above, this portfolio would retun 300% profit after 12 months. Equity line is nice and smooth and drawdown is never more than 15%. So we can say that it is a risk free profitable strategy for Zulutrade.  Your lot size for each of traders would be only 1 micro lot, so even if one of them lost let´s say 2.000 pips, it would be only $200 and other signal providers would cover that easily. Here is the link for this simulation. Play with it a little so you can understand it better.

You can also create your own simulation portfolio if you go to Zulu Ranking, click on tab ” Simulate” and check tick boxes of your prefered signal providers. Remember, this tool allows up to 40 traders, but if you open a real trading account, there is no limit. Just make sure that your Margin o call meter in your Zulutrade account is below 100%. If you need to play with it little bit more, just try Zulutrade demo before you invest real money.

Thursday, April 4, 2013

How To Earn 100% ROI Profit Risk Free in 2013

Here is a quick tip that can earn you 100% profit in 2013. You can do it by copying other profitable traders on one of the largest forex social investment networks Zulutrade. There are thousands of traders (signal providers) to choose from, but to make 100% profit you can use a simple diversification strategy. Follow and copy first 15 traders in Zulutrade ranking. See the screenshot below for real data earnings. That would be your profit if you have followed those traders. (click on the image to enlarge)


Play with Zulu simulator yourself to better understand the potential. As you can see you would set your lot size for almost all selected traders to 0.01 (1 microlot) so your investment would be very secure. Also as you can see from the graph, your maximum drawdown for the full time period would be very low, always much less than 10%. You can also add more providers as Zulutrade has no limit how many traders you can copy. To select other signal providers click on TRADERS and then on SIMULATE. You can create your own investment portfolio that suits your risk preferences. You can choose more risky traders and your profit can be more than 100%.