Sell Limit: 1850.46 | TP: 1819 , 1780 | SL: 1909

Please note that foreign exchange and other leveraged trading involve a significant risk of loss. It is not fit for all investors and you should make sure you realize the risks involved, seeking independent advice if necessary.

Forex trading doesn’t take place on a regulated exchange (like shares or other assets do), as it occurs between buyers and sellers from anywhere in the world, through an over-the-counter (OTC) market. To be able to access this market, you need to use a Solid broker.

As this market is not centralized, you’ll quickly realize that you can access different exchange rates and trading conditions, depending on the broker you use. For this reason, choosing the right broker for your trading style is essential in becoming a successful Forex trader. It’s important to note that even if there are many brokers out there offering similar products and services, there are a few things you should check before deciding which one to use, to be sure you’ll be giving yourself the best chance to succeed.

You need to be sure it offers the right kinds of trading platforms and trading accounts for your trading style – not to mention other details such as trading conditions, spreads, minimum deposit, payment methods, main currency of the account, and the availability of the technical support.

Another very important thing to consider when choosing a broker is what type of broker that they are, as they are different kinds – predominately, Market Makers and ECNs.

Market Maker vs. ECN broker
Understanding the definition of a Market Maker is pretty straightforward – it’s a broker that “makes the markets” by setting the bid and the ask prices via its own systems. Then, they display these prices via their platforms, so that investors can open and close trading positions.

Usually, a Market Maker broker will not hedge its client positions with other liquidity providers like an ECN broker would do. Instead, what Market Markets do is they pay winning client positions out of their own accounts. It also means that when a client has a winning trading position, a Market Maker broker loses.

An ECN broker stands for Electronic Communication Network (ECN). Solid ECN provides its traders with direct access to other market participants via interbank trading prices. This network allows buyers and sellers in the exchange to find a counterparty of their trading positions.

Solid ECN uses different liquidity providers, we are able to allow prices from these providers to compete in the same auction, which usually means that traders get better prices and cheaper trading conditions. Moreover, by using an ECN broker, traders usually trade in a more efficient and transparent environment.

Solid ECN Securities makes money with the trading volume of its clients, charging a commission on each position.

Buy: Current price | TP 1: 1861, TP 2: 1900 | SL: 1785

Trend-Following Tool
It is possible to make money using a countertrend approach to trading. However, for most traders, the easier approach is to recognize the direction of the major trend and attempt to profit by trading in the trend's direction. This is where trend-following tools come into play.

Many people try to use them as a separate trading system, and while this is possible, the real purpose of a trend-following tool is to suggest whether you should be looking to enter a long position or a short position. So let's consider one of the simplest trend-following methods—the moving average crossover.

A simple moving average represents the average closing price over a certain number of days. To elaborate, let's look at two simple examples—one long term, one shorter term.

The chart above displays the 50-day/200-day moving average crossover for the euro/yen cross. The theory here is that the trend is favorable when the 50-day moving average (in yellow) is above the 200-day average (in blue) and unfavorable when the 50-day is below the 200-day. As the chart shows, this combination does a good job of identifying the major trend of the market—at least most of the time. However, no matter what moving-average combination you choose to use, there will be whipsaws.

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Understanding different stock types can benefit your portfolio
When most people think of stocks, they typically think of publicly listed shares traded on the stock exchange. However, it's important for investors to know the different types of stocks available, understand their unique characteristics, and be able to determine when they may represent a suitable investment. Below, we outline the various stock categories, aiming to take the confusion out of differing stock classes on offer to investors.

Common and Preferred Stock
Common stock—sometimes referred to as ordinary shares—represents partial ownership in a company. This stock class entitles investors to generated profits, usually paid in dividends. Common stockholders elect a company's board of directors and vote on corporate policies. Holders of this stock class have rights to a company's assets in a liquidation event, but only after preferred stock shareholders and other debt holders have been paid. Company founders and employees typically receive common stock.

On the other hand, preferred stock, or preference shares, entitles the holder to regular dividend payments before dividends are issued to common shareholders. As mentioned above, preferred shareholders also get repaid first if the company dissolves or enters bankruptcy. Preferred stock doesn't carry voting rights and suits investors seeking reliable passive income.

Many companies offer both common and preferred stock. For example, Alphabet Inc Google's parent company - lists Alphabet Inc. (GOOGL), its Class A common stock, and Alphabet Inc. (GOOG), its preferred Class C stock.

You can trade the common stock market at Solid ECN Securities.

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Growth Stocks vs. Value Stocks
As their name suggests, growth stocks refer to equities expected to grow at a faster rate compared to the broader market. Generally, growth stocks tend to outperform during times of economic expansion and when interest rates are low. For instance, technology stocks have significantly outperformed in recent years, fueled by a robust economy and access to cheap funding. Investors can monitor growth stocks by following the themed exchange-traded fund (ETF), the SPDR Portfolio S&P 500 Growth ETF (SPYG).

Conversely, value stocks trade at a discount to what a company's performance might otherwise indicate, typically having more attractive valuations than the broader market. Value stocks—such as financial, healthcare, and energy names—tend to outperform during periods of economic recovery, as they usually generate reliable income streams. Investors can track value stocks by adding the SPDR Portfolio S&P 500 Value ETF (SPYV) to their watchlist.

Income Stocks
Income stocks are equities that provide regular income by distributing a company's profits, or excess cash, through dividends that are higher than the market average. Typically, these stocks—think utilities—have lower volatility and less capital appreciation than growth stocks, making them suitable for risk-averse investors who seek a regular income stream. Investors can access income stocks through the Amplify High Income ETF (YYY).

Blue-Chip Stocks
Blue-chip stocks are well-established companies that have a large market capitalization. They have a long successful track record of generating dependable earnings and leading within their industry or sector. Conservative investors may top-weight their portfolio with blue-chip stocks, particularly in periods of uncertainty. Several examples of blue-chip stocks include computing giant Microsoft Corporation (MSFT), fast-food leader McDonald's Corporation (MCD), and energy bellwether Exxon Mobil Corporation (XOM).

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They're easy to invest in, have low fees, and often perform very well

With a net worth of more than $82 billion, Warren Buffett is one of the most successful investors of all time. His investing style, which is based on discipline, value, and patience, has yielded results that have consistently outperformed the market for decades. While regular investors—that is, the rest of us—don’t have the money to invest the way Buffett does, we can follow his one of his ongoing recommendations: Low-cost index funds are the smartest investment most people can make.

As Buffett wrote in a 2016 letter to shareholders, “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds.”

If you’re thinking about taking his advice, here’s what you need to know about investing in index funds.

What Is an Index Fund?
An index fund is a type of mutual fund or exchange-traded fund (ETF) that holds all (or a representative sample) of the securities in a specific index, with the goal of matching the performance of that benchmark as closely as possible. The S&P 500 is perhaps the most well-known index, but there are indexes—and index funds—for nearly every market and investment strategy you can think of. You can buy index funds through your brokerage account or directly from an index-fund provider, such as BlackRock or Vanguard.

When you buy an index fund, you get a diversified selection of securities in one easy, low-cost investment. Some index funds provide exposure to thousands of securities in a single fund, which helps lower your overall risk through broad diversification. By investing in several index funds tracking different indexes you can built a portfolio that matches your desired asset allocation. For example, you might put 60% of your money in stock index funds and 40% in bond index funds.

The Benefits of Index Funds
The most obvious advantage of index funds is that they have consistently beaten other types of funds in terms of total return.

One major reason is that they generally have much lower management fees than other funds because they are passively managed. Instead of having a manager actively trading, and a research team analyzing securities and making recommendations, the index fund’s portfolio just duplicates that of its designated index. Index funds hold investments until the index itself changes (which doesn’t happen very often), so they also have lower transaction costs. Those lower costs can make a big difference in your returns, especially over the long haul.

“Huge institutional investors, viewed as a group, have long underperformed the unsophisticated index-fund investor who simply sits tight for decades,” wrote Buffett in his 2014 shareholder letter. “A major reason has been fees: Many institutions pay substantial sums to consultants who, in turn, recommend high-fee managers. And that is a fool’s game.” What's more, by trading in and out of securities less frequently than actively managed fund do, index funds generate less taxable income that must be passed along to their shareholders.

Index funds have still another tax advantage. Because they buy new lots of securities in the index whenever investors put money into the fund, they may have hundreds or thousands of lots to choose from when selling a particular security. That means they can sell the lots with the lowest capital gains and, therefore, the lowest tax bite.

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A long-term investment strategy is one that entails holding investments for more than a full year. This strategy includes holding assets like bonds, stocks, exchange-traded funds (ETFs), mutual funds, and more. Individuals who take a long-term approach require discipline and patience, That's because investors must be able to take on a certain amount of risk while they wait for higher rewards down the road.

Many market experts recommend holding stocks for the long term. The S&P 500 experienced losses in only 11 of the 47 years from 1975 to 2022, making stock market returns quite volatile in shorter time frames.1 However, investors have historically experienced a much higher rate of success over the longer term.

In a low-interest rate environment, investors may be tempted to dabble in stocks to boost short-term returns, but it makes more sense—and pays out higher overall returns—to hold on to stocks for the long term. In this article, we show how you may be able to benefit from holding stocks for a longer period of time.

Long-term investments almost always outperform the market when investors try and time their holdings.
Emotional trading tends to hamper investor returns.
The S&P 500 posted positive returns for investors over most 20-year time periods.
Riding out temporary market downswings is considered a sign of a good investor.
Investing long-term cuts down on costs and allows you to compound any earnings you receive from dividends.

Better Long-Term Returns
The term asset class refers to a specific category of investments. They share the same characteristics and qualities, such as fixed-income assets (bonds) or equities, which are commonly called stocks. The asset class that's best for you depends on several factors, including your age, risk profile and tolerance, investment goals, and the amount of capital you have. But which asset classes are best for long-term investors?

If we look at several decades of asset class returns, we find that stocks have generally outperformed almost all other asset classes. The S&P 500 returned an average of 11.82% per year between 1928 and 2021. This compares favorably to the 3.33% return of three-month Treasury bills (T-bills) and the 5.11% return of 10-year Treasury notes.

Emerging markets have some of the highest return potentials in the equity markets, but also carry the highest degree of risk. This class historically earned high average annual returns but short-term fluctuations have impacted their performance. For instance, the 10-year annualized return of the MSCI Emerging Markets Index was 2.89% as of April 29, 2022.3

Small and large caps have also delivered above-average returns. For instance, the 10-year return for the Russell 2000 index, which measures the performance of 2,000 small companies, was 10.15%.4 The large-cap Russell 1000 index had an average return of 13.57% for the last 10 years, as of May 3, 2022.56

Ride Out Highs and Lows
Stocks are considered to be long-term investments. This is, in part, because it's not unusual for stocks to drop 10% to 20% or more in value over a shorter period of time. Investors have the opportunity to ride out some of these highs and lows over a period of many years or even decades to generate a better long-term return.

Looking back at stock market returns since the 1920s, individuals have rarely lost money investing in the S&P 500 for a 20-year time period. Even considering setbacks, such as the Great Depression, Black Monday, the tech bubble, and the financial crisis, investors would have experienced gains had they made an investment in the S&P 500 and held it uninterrupted for 20 years.

While past results are no guarantee of future returns, it does suggest that long-term investing in stocks generally yields positive results, if given enough time.

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Have you ever wondered what happened to your socks when you put them into the dryer and then never saw them again? It's an unexplained mystery that may never have an answer. Many people feel the same way when they suddenly find that their brokerage account balance has taken a nosedive. Where did that money go?

Fortunately, money that is gained or lost on a stock doesn't just disappear. Read to find out what happens to it and what causes it.

When a stock tumbles and an investor loses money, the money doesn't get redistributed to someone else.
Essentially, it has disappeared into thin air, reflecting dwindling investor interest and a decline in investor perception of the stock.
That's because stock prices are determined by supply and demand and investor perception of value and viability.

Disappearing Money
Before we get to how money disappears, it is important to understand that regardless of whether the market is rising–called a bull market–or falling–called a bear market–supply and demand drive the price of stocks. And it's the fluctuations in stock prices that determines whether you make money or lose it.

Buy and Sell Trades
If you purchase a stock for $10 and sell it for only $5, you will lose $5 per share. It may feel like that money must go to someone else, but that isn't exactly true. It doesn't go to the person who buys the stock from you.

For example, let's say you were thinking of buying a stock at $15, and before you decide to buy it, the stock falls to $10 per share. You decide to purchase at $10, but you didn't gain the $5 depreciation in the stock price. Instead, you got the stock at the current market value of $10 per share. In your mind, you saved $5, but you didn't actually earn a $5 profit. However, if the stock rises from $10 back to $15, you have a $5 gain, but it has to move back higher for you to gain the $5 per share.

The same is true if you're holding a stock and the price drops, leading you to sell it for a loss. The person buying it at that lower price–the price you sold it for–doesn't necessarily profit from your loss and must wait for the stock to rise before making a profit.

The company that issued the stock doesn't get the money from your declining stock price either.

There are investors who place trades with a broker to sell a stock at a perceived high price with the expectation that it'll decline. These are called short-selling trades. If the stock price falls, the short seller profits by buying the stock at the lower price–closing out the trade. The net difference between the sale and buy prices is settled with the broker. Although short-sellers are profiting from a declining price, they're not taking your money when you lose on a stock sale. Instead, they're doing independent transactions with the market and have just as much of a chance to lose or be wrong on their trade as investors who own the stock.

In other words, short-sellers profit on price declines, but it's a separate transaction from bullish investors who bought the stock and are losing money because the price is declining.

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The XRPUSD pair continues to trade within a wide descending channel, but this week it attempted an upward trend, as did most of the cryptocurrency market.

Currently, the token price is consolidated above the middle line of the Bollinger Bands (0.4070), but to start a more serious growth, it will have to overcome the 0.4395 mark (Murray [1/8], upper line of the Bollinger Bands). In this case, the targets will be the levels 0.4883 (Murray [2/8]), 0.5371 (Murray [3/8]) and 0.6 (Murray [4/8], Fibo retracement of 23.6%). The key support zone for the "bears" is still 0.3900-0.3650, the breakdown of which will allow the quotes to continue moving to the area of 0.2930 (Murray [-2/8]) and 0.1953 (Murray [2/8], the lower boundary of the descending channel).

In general, a serious movement of quotations is possible in the near future, as indicated by the consolidation of the Bollinger Bands and the price at around 0.4100, but its direction has not yet been determined. The MACD histogram is shrinking in the negative zone, and the Stochastic is directed upwards, but it approaches the overbought zone, which does not exclude a reversal to a downward movement.

Resistance levels: 0.4395, 0.4883, 0.5371, 0.6 | Support levels: 0.3650, 0.2930, 0.1953

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Another major factor in annual returns for an investor in the S&P 500 is when they choose to enter the market. For example, the SPDR S&P 500 ETF Trust (SPY), which basically duplicates the index, performed very well for an investor who bought between 1996 and 2000 but experienced a consistent downward trend from 2000 to 2002.

Investors who buy during market lows and hold their investment, or sell at market highs, will experience larger returns than investors who buy during market highs, particularly if they then sell during dips.

It's clear that the timing of a stock purchase plays a role in its returns. For those who want to avoid the missed opportunity of selling during market lows, but don't want the risk of active trading, dollar-cost averaging is an option.

What Is the S&P 500 Index?
The S&P 500 Index is a collection of stocks intended to reflect the overall return characteristics of the stock market as a whole. The stocks that make up the S&P 500 are selected by market capitalization, liquidity, and industry. Companies to be included in the S&P are selected by the S&P 500 Index Committee, which consists of a group of analysts employed by Standard & Poor's.

The index primarily mirrors the overall performance of large-cap stocks. The S&P 500 is considered by analysts to be a leading economic indicator for both the stock market and the U.S. economy. The 30 stocks that make up the Dow Jones Industrial Average were previously considered the primary benchmark indicator for U.S. equities, but the S&P 500, a much larger and more diverse group of stocks, has supplanted it in that role over time.

It's difficult for most individual investors to actually be invested in the S&P 500 themselves since that would involve buying 500 individual stocks. However, investors can easily mirror the index's performance by investing in an S&P 500 Index exchange-traded fund, which duplicates the index's holdings in its portfolio and so corresponds to its return and yield. Since ETFs are frequently recommended for beginning and risk-averse investors, the S&P 500 is a popular choice for many investors trying to capture a diversified selection of the market.

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Solid ECN gives multiple account types on the MetaTrader 5 trading platform to help individuals and corporate customers to exchange Forex and Derivatives online.

All Retail, associates, and White-Label clients have the possibility to access various spreads and liquidity via state-of-the-art automatic trading platforms. Solid ECN grants an exceptional type of account options that clients can choose to experience a tailored trading experience that perfectly fills their needs.

United with excellent trading conditions and lightning-fast execution, Solid ECN provides all the tools and aids required for clients of any level to accomplish their trading goals.

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