Chart Your Success – 3 Forex Chart Mistakes to Avoid

by Mrs Money

With up to $5 trillion worth of foreign exchange trades occurring daily, you won’t be surprised to learn that the Forex markets can be a lucrative place to do business. With many new online trading platforms such as ETX Capital, it is easier than ever to get involved and to try your hand at stock trading, making money without leaving your house! In this high stakes arena, there’s the potential for huge gains, but also for heavy losses. So, what can you do to optimise your chances of success?

Traders use charts to monitor the markets and to help inform decisions about when to buy or sell stock. Being able to read these charts effectively is of critical importance and here are three tips to help you avoid making mistakes and thus losing money.

See the Bigger Picture – Chart Time Frames

Charts show you what is happening to stock prices over time and you can change the time frame you are looking at, So, for example, you can look at a charts progress over one minute, five minutes or an hour. New or inexperienced traders can make the mistake of only monitoring short time frames and therefore don’t see patterns and trends that have happened over longer periods of time, stock may look over or under-priced and good to trade, until you look at the bigger picture and realise that in fact it isn’t.

Parabolic or Diabolic – Don’t Use Too Many Indicators

Indicators, such as, ‘Moving Average’ indicators, can help you to analyse what is happening on a chart, but having too many indicators up on screen at the same time can lead to confusion and you can spend too much time trying to work out what they are all telling you instead of watching what is happening to the stock price. Using just one or two indicators will mean you are less likely to loose focus of what is really important – when to trade or when not to trade. ‘Moving Average’ and ‘Bollinger Bands’ are two good indicators to use.

The Top and Bottom of it – Support and Resistance Levels

Support levels indicate a price that stock is unlikely to fall below and resistance levels is a price that stock is unlikely to rise above. It is important that you don’t ignore these because they can be a useful indication of when to buy or sell stock. If you want to “go long”, or in other words buy stock in the hope that the price will go up, you want to buy the stock at the lowest price you can. If you want to “go short” then buying stock at a high price means you will make money when the price falls.

Forex trading is fast and exciting and knowing how to use charts effectively can help you plot your way to success.

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The New Help to Buy ISA: A Win-Win Situation for First Time Buyers

by Mrs Money

In 2013 came the Help to Buy scheme, a government initiative to help first time buyers secure a home with just a five per cent deposit. What followed was many first time buyers using the scheme to purchase their first homes, and the Help to Buy scheme has generally been well received.

However, many people who want to take advantage of the Help to Buy scheme are still struggling to raise enough money for a deposit. In recognition of this, from the 1st December 2015, first time buyers can now open a Help to Buy ISA which exists to support people who are saving for the deposit on their first home.

‘A No-brainer’

According to Money Saving Expert’s Martin Lewis, the Help to Buy ISA is ‘a no-brainer if you’re a first time buyer saving for a mortgage deposit’. With the new ISA, first time buyers can earn up to 4% interest tax-free, with the government adding an extra 25% on top of this. The Help to Buy ISAs are effectively allowing those saving for their first deposit to maximise their money, offering the opportunity to add an extra £3,000 to their sum.

Opening a Help to Buy ISA

These ISAs can be opened through banks and building societies, and anyone over the age of 16 can open one, as long as they have never owned a property before. Even if you’re only thinking about the possibility of buying a home in the future, it’s a good idea to open a Help to Buy ISA for your savings anyway. If you choose to use your savings for your first house deposit in the future, then you’ll benefit from the government’s 25% bonus. If not, then you still benefit from the ISAs high interest rates, but you won’t be eligible for the bonus. Either way, it’s a win win situation.

Are There Any Cons?

The Help to Buy ISA almost seems too good to be true, and whilst it’s a huge help for many people, it doesn’t offer the perfect solution for everyone. The Help to Buy ISA is strictly for first time buyers, which means if you’re saving as a couple and your other half has already bought a property, then they will not be eligible for the ISA. It’s not all bad though, as you would still be eligible as an individual, so half of your combined savings would benefit from the boost of the ISAs interest rate, as well as the 25% bonus from the government.  Find out more about the Help to Buy ISA on the House Network website.

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