#brokerfirm

When it comes to online trading, one of the biggest decisions traders face is choosing between a prop firm and a brokerage firm. Both offer unique advantages, but understanding how they differ can help you decide which one aligns best with your goals.

Understanding the Difference

A prop firm (proprietary trading firm) provides traders with company funds to trade in exchange for a share of the profits. You don’t invest your own money but must follow firm rules, trading limits, and profit targets. The benefit? Access to large capital and potential high earnings without personal risk.

A brokerage firm, on the other hand, allows you to trade using your own funds. It acts as an intermediary between you and the financial markets, offering trading platforms, analytical tools, and market access. While you keep 100% of your profits, you also bear all the losses and trading risks.

Which One Should You Choose?

If you’re a disciplined trader looking to scale without risking personal capital, a prop firm might be ideal. However, if you prefer full control and flexibility, a brokerage firm is a better match.

Before choosing, always read prop firm reviews and brokerage reviews to ensure you’re dealing with reliable and transparent platforms. Look for clear payout terms, regulated brokers, and positive trader feedback to avoid scams.

Make Smart Trading Decisions with Brokers Reviewer

What is a Marubozu candlestick pattern?

A Marubozu candlestick pattern is a stock chart pattern that can help investors gain insight into market sentiment at any time. Although Marubozu's model performs quite well when spotted, it remains relatively unpopular with investors. We take a look at the basics and key features of the model so you can start harnessing the power of this little-known stock market predictor. Marubozus are full-bodied bullish or bearish candlesticks with no upper wicks or lower shadows. Marubozus are usually green or white when they are bullish and red or black when they are bearish on stock charts.

What are the pros and cons of using the Marubozu candlestick pattern?

An important point to keep in mind when researching Marubozu candles is that while you should never trade in the same direction as the candles, you should definitely trade against them. Given the trading activity that is driving this pattern, if the market continues to move in this direction, you may feel crushed. History has shown that price rarely reverses immediately, consuming the movement of the candle. In this sense, the Marubozu model is excellent for demonstrating the market sentiment behind a currency pair. As these patterns develop, they can help traders gauge how forex traders view this pair overall, which plays a critical role in determining the price action of this pair in the near future.

However, sentiment is only one of the factors that influence exchange rates. For this reason, the Marubozu can be a frustrating source of false signals that incur costs for forex traders, deflecting potential price moves and setting up their trades for huge losses. For this reason, Marubozu models should be combined with indicators and models that assess trading opportunities based on other key metrics such as trading volume and/or resistance levels.

Why use charts to track stocks

Stock market charting activity is not a new idea. Analysts were charting long before the New York Stock Exchange (NYSE) was created, albeit in a more rudimentary form than it is today. Charts are used to create an easy-to-understand visual representation of stock market activity. Regardless of the reasons for decline or growth, graphs track changes and show activity over time. Even a casual investor can read charts once he understands the basics of what he is tracking. This gives the investor the information that he may need to make decisions based on what is happening in the market. Using charts, they can see what is overbought or oversold and decide whether to follow those trends or try to take advantage of less popular assets or dump high-demand assets.

Keep in mind, however, that the charts can track many different features. So be very careful with the information you see broken down. Some charts cover daily activity, while others may track weeks or months. To get a bigger, more complete picture, a trader may want to look at many different charts to see short-term and long-term changes before making decisions.

What does a Marubozu pattern tell you?

The Marubozu sends a strong message: the market is moving in one direction. If you break out the candle, you can see that the price of the asset is trading in one direction throughout the session.

This feature applies to both open and closed Marubozu candles, despite the small wicks on both sides, as the buying or selling interest was so strong that it overwhelmed the other side of the market. For bearish Marubozu candles, the pattern indicates that sellers are in full control as they dominate the session in the desired direction, and vice versa for bullish Marubozu candles. Marubozu is especially important when the candlestick is near resistance or support levels, as it can open on one side and close on the other, further amplifying the current trend  Read More...

Stochastic Oscillator Explanation

The Stochastic Oscillator is a momentum indicator that can be used to determine entry and exit timing based on the overbought or oversold condition of the underlying financial instrument. Originally by Dr. Developed by George Lane in the 1950s, the concept was to compare the current price to the price range over a period of time. The indicator has three inputs based on the following formulas:

calculation

Slow% K = 100 [Sum of (C - L14) for the deceleration period% K / Sum of (H14 - L14) for the deceleration period% K]

Slow% D = SMA of Slow% K

OR:

C = final diploma

L14 = Lowest low of the last 14 periods

H14 = higher for the same 14 periods

% K deceleration period = 3

Overbought vs oversold

One of the biggest problems and mistakes in trading is the misinterpretation of overbought and oversold. Now we will take a look at these phrases and see why there is no such thing as overbought or oversold. The stochastic indicator does not show oversold or overbought prices. Show momentum. Generally, traders would say that a stochastic above 80 means that the price is overbought, and when the stochastic is below 20, the price is considered oversold. And what the traders mean is that an oversold market has a high probability of falling and vice versa. This is wrong and very dangerous! As we saw earlier, a stochastic above 80 means that the trend is strong, not overbought, and is likely to reverse. A stochastic high means that the price can close near the top and continue to rise. A trend with the stochastic staying above 80 for a long time indicates that momentum is high and you should not prepare to sell the market. The following image shows the behavior of the stochastic in a long uptrend and a downtrend. In both cases, the Stochastic went "overbought" (above 80), "oversold" (below 20) and stayed there for a while as the trend continued. Again, the belief that stochastic indicates oversold / overbought is wrong and you will quickly run into trouble if you trade this way. A high stochastic value shows that the trend has strong momentum and is NOT overbought.

2. Deviation

Divergence occurs when the price of the security reaches a new high or low that is not reflected in the stochastic oscillator. For example, the price reaches a new high, but the oscillator does not move to a new high as a result. This is an example of a bearish divergence that may indicate an impending market reversal from an uptrend to a downtrend. The fact that the oscillator did not reach a new high during price action suggests that the momentum of the uptrend is weakening. Also, a bullish divergence occurs when the market price reaches a new low, but the oscillator does not follow it and moves to a new low. A bullish divergence indicates a possible bullish reversal in the market. It is important to note that the stochastic oscillator can give a divergence signal at some point before the price movement changes direction. For example, if the oscillator gives a bearish divergence signal, the price may continue to rise for several trading sessions before falling. For this reason, Lane recommends waiting for confirmation of a market reversal before initiating a trade. Transactions should not be based solely on divergences.

3. Crosses

The crosses refer to the point of intersection of the fast stochastic line and the slow stochastic line. The fast stochastic line is the 0% K line and the slow stochastic line is the% D line. If the% K line crosses and crosses the% D line, this is a bullish scenario. In contrast, the% K line, which crosses the% D stochastic line from top to bottom, gives a bearish sell signal. Limitations of the Stochastic Oscillator The main disadvantage of the oscillator is its tendency to generate false signals. They are especially common in turbulent and highly volatile business conditions. For this reason, it highlights the importance of confirming the Stochastic Oscillator trading signals with indices of other technical indicators. Traders should always keep in mind that the oscillator is primarily designed to measure the strength or weakness, and not the trend or direction, of price movement in a market. Some traders aim to reduce the stochastic oscillator's tendency to generate false trading signals by using more extreme oscillator readings to indicate overbought / oversold conditions in a market. Instead of using values greater than 80 as a dividing line, they only interpret values greater than 85 as an indication of overbought conditions. On the bearish side, only values of 15 or less are interpreted as a sign of oversold conditions.

conclusion

While momentum oscillators are best for trading forks, they can also be used with stocks that follow a trend as long as the trend is in a zigzag format. Pullbacks are one of the bull trends zigzagging upward. Rebounds are one of the downtrends zigzagging downward. In this regard, the stochastic oscillator can be used to identify opportunities in line with the broader trend. The indicator can also be used to identify turns near support or resistance. If a security is trading near support with an oversold stochastic oscillator, look for a breakout above 20 to indicate a bounce and a successful support test. If security with an overbought Stochastic Oscillator is trading near resistance, look for a breakout below 80 to indicate a pullback and resistance failure. The stochastic oscillator setting depends on personal preference, trading style, and time period. A shorter lookback period creates a shaky oscillator with many overbought and oversold readings. A longer look-back period provides a smoother oscillator with fewer overbought and oversold values. As with all technical indicators, it is important to use the Stochastic Oscillator in conjunction with other technical analysis tools. Volume, support / resistance, and breakouts can be used to confirm or reject the signals generated by the  stochastic oscillator read more.

What is Cryptocurrency? And what to keep in mind before investing?

What is Cryptocurrency? And what to keep in mind before investing?

Over the past few years, technology has totally changed the world and how the things around us work. Everything has changed and so does the way of investing.

Introduced in 2009 and the current hottest investment instrument cryptocurrency is also a gift

of technology.  Probably everyone has heard about Bitcoin by now. It was the first cryptocurrency to be introduced. But now there are more than

2,000 different types of cryptocurrencies, and more are developing each day.

Before investing in crypto, let’s learn what is crypto first.

A cryptocurrency is an encrypted form of digital currency. Cryptocurrencies use blockchain technology and don’t depend on financial institutions to verify transactions.

The main aim of crypto was to fix the problems of traditional currencies by putting the power and responsibility in the currency holders’ hands.

Cryptocurrency got its name after the way it works. Cryptocurrency uses encryption to verify every transaction. This means advanced coding is involved in storing and transmitting cryptocurrencies between wallets and to public ledgers.

The aim of encryption is to provide security and safety to the investment made by people. With Bitcoin (BTC) being one of the most renowned cryptocurrencies, some of the other emerging currencies are Ethereum (ETH), Dogecoin (DOGE), Binance Coin (BNB).  

Lately, a lot of investors have started investing in crypto as a part of their investment strategy.

And the things you should know before investing in crypto are:

Crypto is unstable, so never invest more than you can afford to lose: With the power of investing, the risk of losing comes alongside.  There’s no denying that crypto is unstable, and theres’ a risk in investing. Someone sneezes and the price drops!

But with the right strategic and research-based investment, the risk can be minimized, the risk tolerance can be maximized and the benefit of potentially high returns can be availed.

Conduct your own research: One should conduct thorough reasonable research before investing in any instrument. And investing in crypto is no different. Before investing in any coin one should:

Understand the market capitalization of the coin they are planning to invest in.

Understand the Use Case of the coins you are investing in.

Diversify Your Investments: Investing in just one coin is highly risky and one can even end up losing all the invested capital. The best strategy to avoid this situation is Diversification.

Investing in multiple coins rather than just one will minimize the risk and can even get you good returns.

Never act based on FOMO: Investing on the basis of FOMO is one of the biggest mistakes one can make while investing.

With aggressive PR campaigns to celebrity endorsements, the hype about the coin is created which makes a lot of beginner investors jump in blindly without conducting proper research.

Like every investment, both risks and rewards are associated with cryptocurrency. You should look at all of your options before deciding. To try out forex without risking any real money,  

open a free demo trading account to practice and once you feel comfortable, go ahead and get started with Capital Sands.

History of cryptocurrency

A cryptocurrency is a digital or virtual currency protected by cryptography. It is a decentralized digital currency based on blockchain technology forex market. According to Coin Lore, there are more than 5,000 different cryptocurrencies in circulation. Bitcoin was the first cryptocurrency and everyone thinks it was invented by Satoshi Nakamoto in 2008 and Satoshi disappeared into the best currency trading  company in 2011best Forex Trading company . In total, only 21 million bitcoins can be mined. Currently around 18.5 million Bitcoins have been mined.

Why are cryptocurrencies so popular?

Cryptocurrencies like Bitcoin are considered the currency of the future and they are now rushing to buy them, probably before they rise in value. Other proponents like the technology behind cryptocurrencies, blockchain, because it is a decentralized registration and processing system and can be more secure than traditional payment systems.

Are cryptocurrencies legal?

They are legal in the United States, although China has basically banned their use and ultimately it is up to each country if they are legal.

How to mine Bitcoin?

Software wallet, for example Electrum, Coinbase, Trezor, etc.

Bitcoin is made up of mathematical and algorithmic equations.

Heavy servers to solve these equations.

Solve equations and get Bitcoin as a reward

Cryptocurrency Benefits

Inflation protection

Self-managed and managed

Safe and private

Currency exchange is possible without any problem.

Decentralized

Type of economic transaction

A fast way to send money

Disadvantages of cryptocurrency

Can be used for illegal transactions

Loss of data can cause financial loss.

Decentralized but still managed by one organization.

Some currencies are not available in other fiat currencies.

Negative impact of mining on the environment.

Vulnerable to hackers.

No refund or cancellation policy.

China's negative stance on digital currency and in particular Facebook's Libra currency

Cryptocurrencies must be centralized by the government. or central bank.

It is a threat to the sovereignty of China and other developing countries.

Libra's disapproval of Facebook is a cash flow risk.

Rejection of Bitcoin due to the volatility of its market.

In 2019, it plans to introduce its own Digi currency called Digital Currency Electronic Payment (DCEP).

Cryptocurrency in India

Cryptocurrencies are not legal tender in India and although the exchanges are legal, the government has made it very difficult to operate the best Forex Trading company in the Globe.

In April 2018, the RBI informed all financial institutions on how to deal with currency holders and virtual exchanges.

Cryptocurrency exchanges have complained against RBI

In March 2020, SC lifts the ban and declares that it must pass the proportionality test under section 19 (1) g.