Finance Weekly Updates

The NIR Group LLC. Diversifies

By Staff Editor | February 18, 2019

PIPES used to be a novel and innovative financial sphere, yet over the years it has become one of the run of the mill investment fields. The NIR Group LLC., headed by Corey Ribotsky, has diversified its activities into fields of social and philanthropic involvement, and also into the world of Hollywood.

Ribotsky and his group have produced two Hollywood movies that were released in 2007, and he is one of the first – if not only – top financial and investment experts to be interview on MTV.

Corey Ribotsky relates to Groundhog and American Cannibal in this MTV interview – click here.

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Who will be the next Soros

By Staff Editor | February 15, 2019

World-famous investor George Soros is said to have made a billion dollars by shorting the british pound in the 1980’s. Since that time the pound climbed back up to 2×1 against the US dollar. But in recent weeks it has fallen sharply, along with most European currencies. Now the big question everyone wants to know is: “How low can it go”?

Of course you can never know what will happen for certain. But there are strong indications that the financial crisis, may lead to a longer and deeper recession in Europe than in the USA. Even before the crisis hit, many felt that the pound was overvalued and that real estate values in the UK had reached unreasonable levels from which a fall was unavoidable.

So for all you aspiring billionaires out there, this may be your chance to short the pound and be the next Soros!

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Obama on Trade

By Staff Editor | February 12, 2019

US President-elect Barack Obama is widely hailed as representing a new, more humble American approach to the rest of the world. He has been hailed in many nations as a visionary of globalization and more receptive to collaboration with a wider range of partners.

But does this necessarily mean he’ll encourage free trade?

His voting record is actually far more protectionist than one might think. For instance, he has come down in favor of a variety of tarrifs on goods imported into the US. He’s also been known to use withholding of trade as a lever to enforce other values such as human rights, as in the case of Columbia, or to punish other nations for manipulating their currencies, as in the case of China.

So although he has been hailed as the embodiment of global progress, there is reason to be concerned that, especially during tough times, he may adopt a more isolationist economic policy in order to benefit us US businesses and workers. Whether this policy will be effective or backfire remains to be seen.

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Leveraged Investments |Day-Trading | Current Economic Crisis

By Staff Editor | February 9, 2019

Is Leverage Dead?
The liberal use of leverage was a major factor in the current economic crisis.
However, use of leverage can sometimes be justified for short-term, technical traders,
provided it is paired with appropriate position size and a responsible, automated stop-losses policy.

Leverage, a euphemism for borrowing money to invest in risky ventures, was the turbo-charge behind outsize profits in the boom years. And it was the fuel that made the fires flare that much higher when investment banks crashed and burned.

Have we seen the last of heavily leveraged investment?
For the short term, it would seem so. Even if some investors are still brazen enough to play the leverage game, it appears that for the time being banks and other sources of capital are unwilling to be so free with their money.

There will not be money available to borrow for risky ventures in the same quantities as in the past.But in the longer term, we can expect to see leverage making a comeback. One particular area where leverage is very useful is in day-trading based on technical analysis. Technical analysis is notoriously unreliable as a determinant of long-term price movements. Yet without leverage, it is not realistic to use technical analysis for intra-day investment positions, because the fluctuations are far too small to generate returns that justify the investment of time and energy inherent in active trading.

By heavy use of leverage, investors can amplify the quantitative impact of small intraday technical fluctuations, which are actually the most reliable technical trading opportunities. The use of leverage per se should not be viewed as an inherently risky approach. The critical question is what percent of an investor’s available capital would be lost on a given position in a worst-case scenario. When heavy leverage is used, the investor should check to be sure that he could not lose more than 1 percent on the same position, or on parallel, concurrent positions, which are expected to act in concert.

Setting an automated stop loss and refusing to readjust it is critical to enforcing discipline in this regard; without it, an investor is risking all of his principal in every position.

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Technical Analysis, Technical Traders, Automated Trading

By Staff Editor | February 6, 2019

Basics of Technical Analysis
Technical analysis is the evaluation of patterns in the historical price of a stock, currency pair,
commodity or other financial instrument in order to determine likely future moves.
This type of approach is distinguished from fundamental analysis, that focuses on studying the forces currently at play and likely to influence the value of the asset.

A fundamental analyst would examine the balance of payments and profitability of a corporation,
along with industry factors that appear likely to impact upon the sector in which the corporation is active.
In the case of a currency, a fundamental analyst would consider a far wider range of considerations impacting upon the viability of the state’s government and economic systems.

A technical analyst disregards all of these factors and studies the asset price alone.
A historical chart is generally the easiest format in which to make sense of price data.

While there are a number of elaborate theories about Fibonacci numbers, stochastic indicators,
and other mathematically complex approaches, some of the simpler technical analysis tools are much more intuitive and seem to reflect the basic elements of group psychology that are active in a trading environment made up of a large number of individuals.

For instance, technical traders consider certain price points to be support/resistance levels.
A price that has in the past been difficult to exceed, or to fall below, can function as a moment of reflection for the masses of traders.

So if a stock has risen repeatedly but failed to exceed $47, it is likely that when it touches that price, it will pause. Should it break through even a little, it will continue on rising until it encounters another resistance point. Support levels serve the same function for a falling price.

With the advent of automated trading, it became possible for investors to give an automatically triggered order that takes effect when a price exceeds a given level. This allows sellers to acquire an asset the moment it exceeds a resistance level, when it is strongly expected to continue its upward trajectory.
This is known as trading breakouts.

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