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Asset Allocation and Diversification Explained

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  Where there is money, there is always risk. Any investment can suffer a loss, and the value of a pure cash position will be subject to gradual erosion by inflation. While risk cannot be eliminated, it can be adjusted to suit an individual’s specific investment objectives. The concepts of asset allocation and diversification play a key role in determining these risk parameters. Even if you are new to investing, you must have some idea of the principles behind them; after all, they have been around for thousands of years. In this article, we will provide an overview of the concepts of asset allocation and diversification and how they relate to modern money management strategies. What is asset allocation and diversification? The terms “asset allocation” and “diversification” are often used interchangeably. However, they differ slightly in terms of risk management. Asset allocation is used to describe a money management strategy that outlines how money should be allocated to the vari...

5 Basic Indicators Used in Technical Analysis

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Traders use technical indicators to gain further insight into the price behavior of assets. These indicators make it easier to recognize patterns as well as spot buy and sell signals in the current market environment. There are many different types of technical analysis indicators, and they are widely used by day traders, swing traders, and sometimes even long-term investors. Some professional analysts and advanced traders even create their own indicators. In this article, we will briefly introduce some of the most popular technical analysis indicators that are suitable for any trader’s market analysis toolkit. 1、Relative Strength Index (RSI) The Relative Strength Index (RSI) is a momentum indicator used to show whether an asset is overbought or oversold. It does this by measuring the magnitude of recent price changes (the standard setting is the previous 14 periods, e.g. 14 days, 14 hours, etc.). This data is then displayed as an oscillator, which can have a value between 0 and 100. A...

Blockchain use case: prediction markets

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  When we happen to see the terms blockchain and marketplace in the same sentence, we undoubtedly think of the ecosystem of trading platforms that facilitates the flourishing of cryptocurrency trading. Blockchain technology is extremely versatile and is the foundation upon which all types of markets are built. Financial assets are either tangible physical objects or intangible digital products. Regardless of the type of asset, as long as there is value in holding it, there is bound to be a potential market for it. In this article, we take a look at a particular market that significantly benefits from blockchain technology, the prediction market. What are Prediction Markets? Prediction markets are speculative markets where market participants do not trade options or cryptocurrencies, but rather information. To be precise, investors bet on the outcome of future events. There are all sorts of events that can be bet on, provided that the broker is willing to include them in the sales l...