Futures trading involves traders buying or selling contracts to trade assets at a predetermined price in the future. Traders should know about futures trading as it enables them to make profits from price changes in other markets, such as commodities, stocks, and currencies.

This article will look into the foundations of live futures trading and why every trader must have a clear comprehension of this sector at all levels.

5 Things Every Futures Trader Should Know

Trading futures can be complicated, but it can also be rewarding with the right knowledge and strategy. Here are five critical facts about trading futures:

1. Establish a Trade Plan

Futures trading necessitates establishing a trading plan. This involves choosing the objective of profit and exit strategy ahead of starting a position, which in turn manages risks and gives a clear path to your trades.

A well-defined trade plan can guide your decisions, helping you avoid impulsive actions based on market fluctuations. This is an active approach to trading that improves profitability while reducing losses.

2. Protect Your Positions

One way of securing your positions in futures trading is to have an exit strategy ready. This could be done by placing stop-loss orders that automatically sell your future contracts once they reach a particular price. It will help you minimize losses should anything wrong happen when the markets go down.

As such, it is a defensive measure that creates a safety net and facilitates effective risk management while allowing for continued ownership of assets.

3. Narrow Your Focus

It is important to narrow down one’s focus in futures trading and concentrate on a few select underlying assets and markets instead of trying to trade in many.

This would enable the trader to have a better understanding of the market dynamics, trends, and patterns, thus making informed trading decisions. This can lead to missed opportunities as well as mistakes due to spreading oneself too thinly.

By concentrating on fewer markets you may be able to fine-tune your strategy for trading so that it becomes more profitable.

4. Pace Your Trading

Trading futures is not to hurry into trades and well-thought-out decision-making. It’s about effectively managing your energy and resources to prevent burnout and maximize performance.

Trading is an intense and stressful practice. However, if you fail to pace yourself, you could make snap judgments that would result in a loss.

Pacing yourself helps keep your mind clear for better choices and sustains trading activities over time.

5. Think Long and Short

Thinking long and short in futures trading means being open to both buying (going long) and selling (going short) positions.

This flexibility allows you to profit from both rising and falling markets. It’s about not being biased towards a particular direction and being able to adapt to market conditions.

This strategy can provide more opportunities for profit and help diversify your trading portfolio, reducing risk and increasing potential returns.

Conclusion

Knowing the ins and outs of futures trading is your ticket to managing risks and broadening your trading options. Keep in mind the importance of staying consistent and disciplined.

If you wish to trade future contracts without much effort, then consider the Dhan Trading platform which is easy to navigate through and allows you to make well-informed decisions easily.

If you are trying to save, learn more about finances or want to take on some new techniques for your money then reading from those who have done it or are experts in the field could help you.

There is so much advise out there it can become overwhelming, when finding the book for you make sure it contains what you are looking for and won’t make it more complicated than necessary.

Below is a short list of books which could help you to invest, save, learn about finances and help you build better habits. Pick up one of these helpful reads for world book day and learn more about your finances.

ISA stands for Individual Savings Account and allows you to save whilst earning interest and is tax-free. You can save up to £20,000 in a tax year tax-free. Having an ISA helps people to save for things like a house deposit as this a great, money-efficient way to save large amounts.

Cash ISA

This is similar to your regular current accounts as you are paid interest on your balance in the account. This is a simple way to save tax-free in a secure account for your money.

Cash ISA’s have interest rates of 5% or more currently.

Those over 16 can set up a cash ISA.

Stocks and Shares ISA

You can save up to £20,000 tax-free each year and your money is invested into various stocks and shares. This could help your account grow however there is a chance the value can go down as well. You can either choose where you money is invested or the bank will randomly invest your money into different stocks.

Only once you are 18 can you set up a stock and shares ISA.

Lifetime ISA

These are used to help you pay for your first house or alternatively to save for retirement.

This can be in the form of a Cash ISA or a Stocks and Shares ISA where you can save up to £4000 a year tax-free. The government will then add a 25% bonus which has to be used to help you buy a house such as pay for a deposit or for a retirement fund only. If you use this account to pay for anything else then there will be a 25% penalty rather than a reward at the time of withdrawal.

Only those between 18-39 are eligible for a lifetime ISA.

Withdrawing from your ISA

Your ISA will have certain rules regarding when you can withdraw as this is an account specifically for saving.

If you have an instant access Cash ISA you will be able to withdraw money at any time without any changes to your tax-free balance as this account will be for short-term savings.

If you have a fixed rate Cash ISA this will lock the money for a certain length of time and usually the interest rate for these accounts will be higher.

Then, there is the flexible Cash ISA here you will be able to make a limited number of withdrawals without losing any benefits of the ISA.

For the Stocks and Shares ISA you will usually be able to withdraw money at any time as long as you have cash in the account. If you want to withdraw money and you have no cash then you will have to sell shares at the current market price meaning you be losing money.

Why should you have an ISA?

If you are saving for something in particular and can afford to have savings which are in effect untouchable then having an ISA will be very beneficial to you. The money in your ISA should be separate from your personal savings in order for your ISA to be saved for your first home or retirement fund and to reap all the benefits.

With an ISA you are saving more with less.

Mark Lyttleton is an experienced angel investor, speaker and business mentor who specialises in providing early-stage businesses with the support they need to grow and scale. This article will provide pointers on investing in the stock market for novice investors, exploring the different options and considerations for a sound investment strategy.

Investing in stocks involves purchasing shares in publicly owned companies. If the company performs well or is taken over, these shares may rise in value, enabling the investor to earn a profit should they decide to sell. An individual investing in stocks is essentially hoping that the company will grow in value over time. A popular way for novice investors to become involved in the stock market is by placing money in an online investment account. This money is then used to purchase shares in public companies or stock market mutual funds.

Many brokerage accounts enable customers to start investing for the price of a single share. Some brokers also allow and encourage users to start by paper trading, enabling them to use stock market simulators and practice buying and selling stock without risking any real money.

For those keen to start investing in the stock market, the first consideration is how hands-on they want to be with their investments. They then need to set an investing budget, open an account, choose their investment strategy and focus on the long-term, managing their portfolio as necessary. It is good practice to build a diversified portfolio, enabling the investor to stay invested in the long term. Diversification reduces the risk of the investor panic selling should a particular stock or market see a sudden dip, as they have spread their portfolio across different companies and industrial sectors.

All investors start trading to grow their money over time. Yield can be an important component of the overall return and can vary significantly from one investment vehicle to another. Although rates on bank savings accounts have seen some upward momentum recently, this is still below the current level of inflation. Because of this, many investors are turning to the stock markets. However, investing in stocks always incurs an element of risk, since investments can go down in value as well as up.

Take for example the S&P 500, an index made up of 500 of the largest American companies. Since it started in 1957, it has produced an impressive average annual return of 10.7%. Nevertheless, looking more closely, as well as seeing sharp spikes, the S&P 500 has also taken some terrific tumbles – such as during the financial crisis of 2008, returning -43% in the 12 months ending February 2009.

A key consideration in devising an investment strategy is risk tolerance. Stocks are categorised in various ways, for example, value stocks, aggressive growth stocks, small-cap stocks and large capitalisation stocks. Each has its risk level. Once the investor assesses their risk tolerance, they can set their sights on stocks that are compatible with their risk appetite.

Another important consideration is the investor’s stock trading goals. Someone just beginning their trading career may simply seek to increase the money in their account. Alternatively, they may be saving for a deposit for a house, to pay off student debt or to fund their retirement. An investor’s goals will evolve, so it is important to review them periodically to ensure investment choices align with their current objectives.

In terms of investment approaches, these can vary considerably from one investor to the next. Some investors prefer a hands-on investment style, while others are happy with an automated, or passive, approach. An investor who is confident in their investing knowledge and capabilities may choose to build and manage their investment portfolio on their own via traditional online brokers, investing in a combination of stocks, index funds, mutual funds, bonds and exchange-traded funds.

For a novice investor with little or no trading knowledge, enlisting the help of an experienced financial advisor or broker would be prudent, helping them to make investment choices, monitor their portfolio and make changes as necessary. Another option that is growing is a robo-advisor, presenting an automated, hands-off approach that is typically more economical than working with a financial advisor or broker. Once the investor has outlined their risk tolerance, investment goals and other details, the robo-advisor can automatically start investing for them.

Another way of investing is by opening a pension or retirement account, with many presenting the opportunity to invest in stocks. These may include stock mutual funds, exchange-traded stocks or individual stocks and often have the additional benefit of tax breaks, although usually with some restrictions as well.

Diversification is a critical consideration for investors and an important concept to understand. When an investor spreads their portfolio across a range of different assets, they reduce the risk of one investment’s poor performance jeopardising their entire investment. Essentially, diversification involves the investor not putting all of their eggs in one basket, instead spreading their investments across various companies, markets and asset classes.

For many people, investing in the stock market is an effective means of building wealth, Nevertheless, it is important to understand that stock value can also decline, leaving the investor at risk of losing some or potentially all of their investment capital should a market dip or company go bankrupt.

Legends abound of people making massive amounts of money as beginner traders in a single trade. Trading chatrooms are full of people bragging about how they had a hunch and took a chance that led to a sizable win. But professional traders need to be wary of such stories and concentrate on their craft, warns Warrior Trading founder Ross Cameron.

“A lot of people, unfortunately, treat trading very similar to playing the lottery,” said Ross Cameron. “They buy a ticket, they buy some stock, and they say, ‘Let's just see what happens.’ And really to me that is not even day-trading. It's gambling in the stock market.”

How People Talk About Trading Shows How They Think About It

“When I hear people call a trade ‘a play,’ that feels very akin to betting. And that, to me, just speaks to that mentality [of gambling],” said Ross Cameron. “But the fact is, I guess, enough people made money doing that during GameStop when stocks just kept going up, and [during] COVID, [that] some people thought they could just keep it up, and started upping the ante and taking bigger and bigger and bigger risks.”

But ultimately most of these “traders” didn’t keep their trading up, because at some point their luck ran out.

“The people that survived until now have only done so because they figured out a way to manage their risks,” said Ross Cameron. “They figured out a way to increase their probability.”

These traders are more like semiprofessional poker players, he said. Just like in poker, their trading “game” has reached a point where it's no longer a gamble.

“It's no longer betting if it’s no longer a game of chance because you have a strategy that has historical data,” Ross Cameron said.

Ross Cameron Sees Similarities Between Poker and Trading

Ross Cameron said he can see comparisons between poker and trading the markets. Participants in each can start as gamblers. But as they gain experience — and with a bit of luck on their side — they start to formulate strategies based on their understanding of the intrinsic nature of the game and other players at the table.

“They’re playing a game that produces consistency for them,” he said.

It wasn’t how he started trading. Ross Cameron always came to the job with analysis and strategy, treating his trades as anything but bets. But he can understand how others might have come to trading in such a way. The ones who stay, he says, do so because they change their mentality from gambler to professional.

Part of the transition comes from understanding the various success stories in the trading community and identifying which ones have the most teachable lessons. Stories of sudden success rarely do. Those of hard-earned gains over sustained periods of trading are the ones to take note of, he said.

It's about the type of success story: effort and intelligence over luck.

Success Stories Can Be Inspiring — but Dangerous

“I’ve been trading for over a decade because of a lot of hard work and a lot of consistency and strategy, whereas the success of someone who made millions on GameStop with an out-of-the-money options contract was a gambler,” Ross Cameron said. “He bought a lottery ticket. There is nothing wrong with winning the lottery, but let’s call it for what it is.”

Following the strategy of a guy who bought a lottery ticket isn’t a strategy for a sustained career in trading, says Ross Cameron. For every one of those people, millions made nothing — and thousands who lost their shirts.

Ross Cameron says beginner traders need to take note and temper their expectations. Very few people win the lottery.

“The first thing that traders need to expel is the notion that they will find any sort of quick success because that is just not how it works,” stated Ross Cameron. “While there are certainly exceptions to that, the typical experience is that people come in, they go way too big too soon, they blow up their accounts, and then they're gone. Knowing that most people do not find success, the first thing beginner traders may want to ask themselves is: What is it that most people are doing that’s causing them to lose?”

A lot of them are wrapped in the excitement of trying this new thing.

“They're jumping in with real money right away and very quickly they get in over their head. Maybe they have a little beginner's luck, which then follows by a period of overconfidence, which then creates a very quick and very real loss of capital,” explained Ross Cameron. “Then that feeling of sunken cost makes them think they’ve invested so much that they can't walk away and must continue to try to recoup.”

And oftentimes these beginners never did any real training or had any real education, so they don’t know what they’re getting themselves into.

Those Who Don’t Know What They’re Doing Are Gambling

“You can't just jump into trading with almost no experience, because you will almost certainly lose,” said Ross Cameron, who recommends that rather than looking at trading as a fun gamble in which you could make a quick million, look at it as an opportunity to learn about the financial markets.

“There's no better way to learn about finance than throwing yourself right into the market by active trading, because you learn about the function of the market, and you learn how it works,” he said.

But that doesn’t mean throwing away thousands on your first trades without any experience. That’s still simply a gamble. Instead, Ross Cameron says beginner traders should take courses, read trading chatrooms, and trade first in a trading simulator where real money isn’t on the line but valuable experience can be earned.

Trading doesn’t have to be a gamble. And for the professionals, it isn’t. 

Disclosure: Sponsored content. Sponsorship may include, but is not limited to: payment for placement to the publication, to the writer for their time, or other arrangements.

The stock market is known for being quite complex, filled with jargon, and with a high level of risk. However, with some knowledge and research, anybody can get started with investing in stocks and potentially make a profit from it. If you are a beginner to stocks, keep reading to find out more about the basics of stock market investing and how to get started. 

What are Stocks?

Stocks are essentially shares of ownership in a company. When you buy a stock, you’re buying a small piece of the company and becoming a shareholder. Once you are a shareholder, this gives you the right to vote on certain company decisions and receive a portion of the company’s profits in the form of dividends. How much your stock is worth may rise and fall depending on the company’s success and the overall stock market performance. 

How to Choose the Right Stocks to Invest In 

There are several factors to consider when choosing the right stocks to invest in. Some of the most important things to think about include:

• Company financials: Consider things like revenue, earnings, and the overall financial health of the company. Companies that have strong financials and a positive outlook are generally considered to be wise investments. 
• Industry trends: Think about the overall health and growth of the industry the company operates in. If it’s in an industry that’s performing well and seeing a lot of growth, the stock is also more likely to perform well. 
• Management: Who leads and manages the company can have a significant impact on its success. Spend some time researching the track record and background of the management team to get an idea of the direction they are taking the company in. 
• Dividends: Some stocks pay out dividends, which are regular payments to all shareholders. If you’re looking for an investment that will provide you with a steady stream of income, these stocks might be a good choice. 

How to Start Investing in Stocks

Once you’ve got a clear understanding of what stocks are and how to choose the right ones to invest in, it’s time to get started. Some of the main steps to follow are:

1. Open a brokerage account: To start investing in stocks, you’ll need to open a brokerage account with a stockbroker. You can do this online or through a traditional brokerage. Spend some time researching your options and comparing the various fees and services before you decide. 
2. Fund your account: You’ll need to transfer funds into your account to start investing once you have an open brokerage account. You can do this in several ways, including transferring money directly from your account or setting up automatic monthly transfers. 
3. Choose your stocks: Once your account is funded, it’s time to choose which stocks you want to invest in. Consider the various factors outlined above, stay updated on volatility, and do your research before you decide. 
4. Place an order: Once you’ve chosen which stocks to invest in, you can place an order. There are several types of orders you can choose from including market orders, stop-loss orders, and limit orders. 
5. Monitor your investments: Once you’ve invested, it’s crucial to regularly monitor the performance of your stocks and make adjustments if necessary. 

The stock market is known for being complex, but with a basic understanding of how stocks work, how to choose the right ones, and how to invest in them, anybody can become a successful investor. 

Traditional options that don’t include crypto investments are nearly always favoured by the investor as a “safe bet”, with many investors shunning the infamous volatility of cryptocurrencies.

Despite the well-documented peaks and crashes - not least the recent crypto crash this year that will be at the forefront of all our minds - investors who choose to invest their assets solely in stocks and shares could be missing out on what could be the greatest investment opportunity of our lifetime. This is not about scaremongering or adding to the FOMO (fear of missing out) culture that shrouds crypto investments but based on my experience, I firmly believe that where there is risk, there is also great opportunity for those willing to educate themselves and take advantage of the possibility of high returns.

Cryptocurrencies aren’t going anywhere

Since the debut of Bitcoin in 2009, the volatility of trading in crypto has been no secret. Even 2022, which was predicted to be one of the best years for crypto investment, has been rocked with bad PR for the blockchain industry, as it battles the FTX scandal amongst other issues.

The crashes and booms documented on a chart are dramatic in their peaks and troughs - but looking at the bigger picture, what is clear is that as each storm is weathered, the industry bounces back with even more fervour. For investors, this is our opportunity to gain. For example, shortly off the back of the latest crash just this year, the news quickly broke that the world’s largest asset manager, BlackRock, partnered with the world’s biggest Crypto exchange, Coinbase. It’s clear in my mind and the minds of those who follow the market, that cryptos are here to stay. Once investors are prepared to acknowledge this, the possibilities are endless but to ignore this, is possibly missing out on lucrative investment opportunities it provides.

It's also worth noting here that crypto is the currency used in the metaverse – another indication that crypto could be the currency of the future.

Ride with the ups and down

Volatility can seem scary but can also be a benefit for traders. As one of the fastest-growing markets that we are likely to witness in our lifetime, the possibility of losses has to be taken into account alongside the equal possibility of high returns - higher than could ever be gained through traditional investments. Prices can collapse and rise again at the drop of a hat, but these fluctuations can help investors earn significantly. The sky is the limit for those who watch the market closely and hold their nerve. One of my favourite quotes by Warren Buffet encapsulates this: “Be fearful when others are greedy and greedy when others are fearful.”

Portfolio diversification

Diversification of investment portfolios has always been one of the most important pieces of advice I encourage traders to follow. Cryptocurrencies naturally lend themselves as a new and different option independent of traditional investments, which might not always follow the market. It makes sense for traders to have such an alternative within their portfolio. This gives them the opportunity to not put their eggs all into one basket, which is a big benefit when expanding into cryptocurrency investment.

Easy, fast, secure transactions - accessible 24/7

One of the key selling points that arguably triggered some of the early success of cryptocurrencies is the ease and security of transferring funds. With no third-party intermediatory like a bank or credit card, almost anyone can complete a transaction almost anywhere. In addition, investors are no longer tied to weekdays and business hours. Crypto markets can be accessed at all hours of the day or night. This accessibility opens up the world of investments to a new type of trader who might not have had the opportunity to do so otherwise.

Crypto is an opportunity not to be missed

With opportunities for high returns, diversifying portfolios and taking advantage of easy, secure and fast transfers, it’s hard not to see why crypto investors believe that those avoiding the market altogether are missing out on the opportunities and benefits offered by cryptocurrencies over and above traditional investments.

As we enter a new era of instability across all markets, it seems ever pertinent to take stock and review our preconceived notions of what it means to invest in cryptocurrencies.

I am very much looking forward to seeing how this plays out over the next few months and what’s in store for the cryptocurrency market in 2023.

Marcus’ Top Tips

For investors looking to take the first step into crypto investment, here are some quick dos and don’ts to get you started:
1. Start small – there’s nothing to be gained from putting all your investments into one pot. A small percentage of your overall portfolio invested in crypto can start you off.
2. Appreciate your appetite for risk – the up-and-down nature of crypto investment might not be for the faint-hearted. Once you understand your own personal appetite for risk this can help you make informed judgements rather than snap decisions in the heat of the moment.
3. Education - take 20 minutes of your day to educate yourself on investment. Follow the market closely as you would with traditional stocks and shares. Get interested in new and emerging coins and be prepared to immerse yourself in the cryptocurrency world. It’s important to understand that what drives the price of crypto is very different to what drives the more traditional markets.
4. Hold your nerve. You don’t need to sell just because the market is dipping.

About Marcus de Maria

Renowned stock market and wealth educator, investor, and entrepreneur Marcus de Maria is the founder and chairman of Investment Mastery, one of the world’s leading investment and trading education companies.

A sought-after keynote speaker on wealth creation who has shared the stage with some of the world’s leaders in business, success and philanthropy, Marcus has gained mutual respect from many high-profiled individuals including Richard Branson, Robert Kiyosaki, Tony Robbins and Brian Tracy.
Marcus is also the author of three books including The Lunchtime Trader, a guide on how to build indestructible wealth by trading stocks for just 20 minutes a day.

After experiencing financial difficulties, Marcus went from being £100,000 in bad debt and sleeping on his brother’s floor to taking control of his financial future and learning strategies to become financially fit, building multiple pillars of wealth for security. He now uses all he has learnt to help others follow this path of wealth creation.

About Investment Mastery

Founded in 2003, Investment Mastery is a premium training and education company delivering easy-to-follow and profitable trading and investing strategies.

Today, Investment Mastery delivers training seminars and workshops, online and live in-person, annually. They have educated thousands of people across 25 countries, while also developing and delivering industry-leading online support and training that is delivered in three different languages.
Led by founder and chairman Marcus de Maria and his expert team of real traders and investors in the fields of stocks, cryptocurrencies and forex, Investment Mastery’s training education is influenced by the exact same proven techniques that Marcus uses to trade and invest his own money.

The team at Investment Mastery do not just help clients to strengthen their finances, but their mindset too. This helps clients uncover, address and break through their limiting beliefs behind wealth creation and find their reasons ‘why’. This unique approach is what sets them apart from other wealth creation educators and is why clients achieve such incredible results.

https://www.investment-mastery.com/

Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.

Home Depot

Home Depot is the multinational giant of home improvements, tools, building materials and a paradise for DIY enthusiasts. The first wave of the Covid-19 pandemic might already seem like a lifetime ago to some, but Home Depot was one company that did in fact benefit from the Covid-19 lockdown restrictions.   

The pandemic ‘DIY boom’ that occurred as a result of populations being restricted to their homes sent shares in the company soaring, with the earnings per share (EPS) metric initially peaking at $4.02 in Q2 2020. The performance of shares since has remained respectable, albeit erratic with quarterly EPS fluctuating between $2.65 in Q4 2020 and $4.53 in Q2 2021. 

The share price has recovered from the lows and is testing resistance, with the 200-day moving average not out of sight either.

Q1 2022 proved to be better than expected: earnings per share reached $4.09, up from $3.86 a year earlier and higher than analysts’ predictions of $3.69 per share.

However, it remains to be seen whether this solid performance can continue. As housing markets across the US and Canada continue to slow, how robust will the demand for home improvement be? 

It’s not only a matter of choice. In the red-hot pandemic housing market, many buyers waived the usual due diligence and checks to get ahead of the pack and ensure their offer was accepted. In further good news for Home Depot, home improvement isn’t solely driven by the cycle of the housing market, especially in today’s new working paradigm when working from home has become far more commonplace. 

As much of the current slowdown in the property market has been attributed to the increase in mortgage rates, this could also incentivise people to stay put, ride out the storm, and improve their existing homes rather than looking to trade up and pay a higher mortgage rate.

For Home Depot, it doesn’t really matter what their customers’ motivations are. If they’re still making improvements, they’re still buying. Therefore, the bigger risk is a downturn in consumer spending altogether; likely the biggest headwind with inflation continuing to rise across the globe.

There’s been plenty of talk of ‘squeezed’ consumers, but companies haven’t yet reported a huge squeeze on profits this earnings season, with consumer spending having held up far better than expected. 

Home Depot surpassed estimates for its quarterly results, published on 15th August. Investors have eagerly been anticipating this upturn to continue and are expected to home in on the company guidance, both from the consumer perspective and the profitability point of view. Many raw material and input costs have fallen back from their peaks, which could relieve concerns about profit margins soon coming under pressure. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 

Not investment advice. Past performance does not guarantee or predict future performance. 

Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.

ARKK

After years of quiet performances, ARKK rose to prominence just before the Covid-19 pandemic and by the end of 2019, the Ark Innovation ETF had returned 165%, proving to be the best performing fund.

This stellar performance coupled with the trading boom witnessed during the pandemic sent the ARKK ETF soaring throughout 2020, ending with a record high just shy of $160 in February 2021.

Currently, the ETF has fallen to below the pre-pandemic high and is down just over 68% from its height.

Given that ARKK’s business model is to acquire shares in businesses that are ‘disruptive innovators’, the lack of good investment opportunities in a low inflation environment pre-pandemic helped to fuel ARKK’s early success.

The economic market trends we’re witnessing now, including the recent inflation surge and increase in interest rates, have undoubtedly contributed to the downturn in ARKK’s fortunes.

However, with many speculating that we’re going to enter a period of deflation, investors may be hopeful that ARKK will get a much-needed boost, along with other growth stocks. Typically, growth stocks tend to outperform as we move towards the end of a bear market, however, investors should remain wary that we’ve never seen a market as volatile as it is now.

When tech stocks do stage another recovery, the shares of ARKK will likely rise again, but it’s a high-risk option that requires caution and consideration. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 

Not investment advice. Past performance does not guarantee or predict future performance.

Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.

PayPal

With companies well into earnings season, this week alone will see 152 of the companies in the S&P 500 report their earnings.

Given the macro-economic climate, these results should reflect a slowing economy. However, PayPal is one company that has been struggling for the past year, even before these market trends came into play.

In fact, PayPal shares lost over 78% of their value from peak to trough, and when their Q4 2021 earnings report was published in February 2022, their shares went down by 25% on the day – wiping $50 billion in market value.

However, investors should consider the impact of higher inflation, consumer spending and supply chain issues on PayPal’s performance. This was also heightened when competitor eBay launched a payment service, in turn taking eBay sellers away from PayPal.

Despite these factors, PayPal is set on improving its profitability. Last month, it was reported that Elliott Management, a firm known for its tough tactics to improve profitability, had taken a stake in the company.

In turn, PayPal expects to reduce costs by $900 million this year, with annualised benefits from the cuts and other changes set to save the company $1.3 billion in 2023. For investors, this focus on capital efficiency will likely see shares rise, up on the 13% already gained on Tuesday after the company posted stronger than expected second-quarter results. 

Overall, investors shouldn’t write off the company completely, especially given PayPal has posted better than expected revenue and user growth for Q1 2022. However, they should remember that consumer spending in the post-pandemic age is extremely difficult to predict. 

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 

Not investment advice. Past performance does not guarantee or predict future performance. 

What You Must Know About Tokyo Stock Exchange

It is worth pointing out Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan, headquartered in its capital city of Tokyo. It was established in the 19th century. As of Sept. 14, 2021, the Tokyo Stock Exchange had 3,784 listed companies.

The country's largest stock exchange is operated by the Japan Exchange Group and is home to the largest Japanese giants with a global presence—including Toyota, Mitsubishi, and Honda. Furthermore, the Tokyo Stock Exchange offers specific trading information, real-time and historical index quotes, market statistics, and information about and from specialists. 

Just remember that the acronym TSE for the Tokyo Stock Exchange should not be confused with Canada's Toronto Stock Exchange. Its acronym is TSX. As a reminder, at the peak of the Japanese asset price bubble in Dec. 1989, the Nikkei 225 index jumped to 38,916. 

Following this, the Tokyo Stock Exchange's combined market capitalisation shrank dramatically over the next two decades, as the country's economy struggled with a recessionary environment and the Nikkei plunged in value. 

Interestingly, when the above-mentioned stock exchange first opened in 1878, some of its first customers were former samurai. They needed a market to trade bonds that had been issued to them by the government.

BitiCodes and its capabilities 

Have you heard about BitiCodes? 

It is a complete crypto auto-trading software designed to help both beginner and expert traders make accurate and profitable trades. Importantly, BitiCodes offers quick as well as easy access to some of the most popular cryptocurrencies. With more than 560,000 current active users, BitiCodes has made its place in the industry as one of the most reliable as well as accurate auto-trading software.

Furthermore, with BitiCodes innovative technology, you won't need to have prior trading experience to make a profit. People should take into account that the software is designed to catch opportunities in the market, and thanks to its highly accurate technology, it's considered much safer than trading on your own.

Tokyo Stock Exchange and other major international exchanges

In addition to the Tokyo Stock Exchange (TSE), other major trading exchanges worldwide include the London Stock Exchange, New York Stock Exchange (NYSE), and the Nasdaq. Each of them has specific listing requirements that owners must meet prior to offering their securities for trading. For example, some market participants have complained that over the years, the Tokyo Stock Exchange has become too large as well as complicated compared to other global exchanges. The country's largest stock exchange consists of five sections. For example, the first section lists the country's biggest companies, and the second section lists medium-sized companies. Combined, the first and second sections are called the "main markets."

Furthermore, there are two sections dedicated to startups. Notably, these sections are called the "Mothers" (Market of the High-Growth and Emerging Stocks) and the Jasdaq (which is separated further into standard and growth sub-sections). Lastly, the final section is the Tokyo Pro Market, which is for professional investors only.

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Michael Kamerman, CEO of Skilling, shares his opinion on what stock you should watch this week.

Apple

With a massive earnings week ahead in which 175 companies in the S&P 500 will report their earnings, Apple is perhaps the great unknown in the pack.

Despite shares falling almost 30%, the company managed to recover around half of that drop and now eyes the 200-day moving average in the $158 zone.

However, as with any company regardless of its size – Apple is not immune to the effects of global market trends. One of the current headwinds is inflation, which can decimate purchasing power over time as well as result in a major pullback in consumer spending for households.

Given that Apple’s products are towards the higher end of the pricing bracket, we could see these consumer concerns begin to come to a head.

Whilst this may perhaps concern some investors, they should also consider Apple's innovative approach, exemplified by their focus on health data and the launch of Apple Pay Later, when assessing their investment strategy.  

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 

Not investment advice. Past performance does not guarantee or predict future performance.