Countdown To The EU Referendum: Can The British Government Avoid Brexit?

The countdown begins. Within a month, precisely June 23rd, the British will vote to determine its future within the European Union. This is coming in the midst of doubts of what the outcome of the referendum will be. The uncertainty is already being seen in markets across the globe. It needs to be determined how we all got here, the keys are now offered on a historical query that can trigger a process hitherto unexplored. No nation has ever left the EU block. How then will the block manage if the eventual outcome of the Brexit referendum turns out to be unfavourable to the block?

Who Can Vote in the Referendum?

All British citizens that are 18 years and above, Irish and Commonwealth citizens living in the UK , along with British citizens residing abroad  who have been on the electoral register in the last 15 years. European residents in the UK may not vote.

Can Spain Claim Gibraltar?

Although Gibraltarians are not lovers of the community project, but they are ready to defend themselves so long as it gives them a solution to the difficult relationship they have with Madrid. For this reason, all political parties of the Rock are campaigning within the EU block. According to the treaty of accession of the United Kingdom to the EEC in 1973, the Rock came as a "European territory for whose external relations the UK government is responsible for."

The Spanish has emphasized on several occasions that London does not want to leave the block. Although, according to British newspapers, if that scenario occurs, Madrid could take advantage of it to return to claim sovereignty over the Rock 

What is the Official Position of the British Government?

Given the popularity in recent years, the Eurosceptic UKIP were the ranks 'Tories' which pushed David Cameron to convene the referendum. The 'premier' is campaigning for permanence. But to avoid internal revolt, he was forced to give freedom to his people to defend the position that most convince them. Half of the Conservative MPs, including five ministers, are campaigning for the exit. The most significant case is Boris Johnson. The former mayor of London had always defended the European project, but now advocates leaving the club. According to analysts, more than conviction, by a sheer strategy to prepare his way to party leadership.

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Is it Possible to Make Currency Trading Your Career?

It all really seems easy enough doesn’t it? Especially if you consider the fact that it’s not every day that you run into someone who’s a successful forex trader, you automatically conclude that there mustn’t be very many people in this field and if there aren’t many people in this field, it would be easy to rise to the top with the proper knowledge and training, correct? Well, I hate to rain all over you parade but the fact of the matter is that despite the fact that not many people make trading currencies their profession, the ones that do, are so powerful- we’re talking Soros- billionaires kind of powerful that you can’t hope to bring down or accompany on the top. So whatever leverage you think you might have over everyone else just because you thought of this brand new way of earning- forget about it because you and your five hundred dollar bank account are not running into any quick money any time soon.

The forex market is fluid which means that it’s constantly changing- experiencing fluctuations and such. It’s fast and unpredictable and sure, this may mean that you can make money fast, but what it also means is that you can lose money just as fast- if not quicker. Because they’re ever changing, it’s hard to predict much in the forex market regarding currencies and government laws unless you’re one of those big shots with insider connections.

With the rise of scammers and manipulation it’s quite easy to fall for the whole get rich quick ordeals and schemes, instead of wondering whether or not you should take the opportunity and run, you need to ask yourself (and the person offering the opportunity to you) why you’ve been given this opportunity and why you of all people. If the answers you give yourself or get from them do not seem legitimate enough, take that as your clue to opt out of the whole ordeal right then and there.

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How to Expertly Sell a Losing Position

Let’s say you’re a stockholder who wants to sell your stock for whatever reasons - usually the reason is that your stock is losing its value- but can’t fathom selling your stock at a time when losses might be larger. There are certain rules and regulations that if followed by traders can lead to great profits rather than selling at a loss.

Having a Compliant Selling Strategy
When choosing a suitable selling strategy, the nature of the company needs to be taken into consideration, there are many different types of investors with many different objectives and not all those objectives can be achieved all together- compromise must always be made. General strategies cannot always be used like the pricing strategy when other strategies such as the stop-loss strategy can be employed, however the stop-loss strategy has the tendency to become less and less useful as the investment time frame extends itself.

The 3 Fundamental Questions
To learn more about yourself as a trader and your investing style, you need first answer the three fundamental questions the first being why you bought the stock in the first place, what changed since then and whether or not that change alters your reasons for investing in the company. If your stock has gone down in price there is probably a reason why, you need to pinpoint that reason and understand how that affects the way in which you trade and why you trade with a specific company.

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Prospect/Loss-Aversion Theory

Prospect theory is a behavioral theory in economics which describes the way in which people tend to choose between probabilistic alternatives that involve risk and cases where the probabilities of outcomes are known. According to this theory, people- in this case forex traders make decisions based on the latent value of losses and gains rather than the ultimate outcome foreseen.  Practically speaking, it seems all too justified to expect a forex trader to prefer a sure investment rather than an unsure one, however what Prospect theory suggests is that traders reserve specific quantifiable emotions over losses and gains separately for each one.

Loss Aversion
Loss aversion refers to people's inclination to avoiding losses rather than acquiring gains, psychologically speaking, a lot of studies show that losses are more powerful than gains however due to human psyche and greed, when traders evaluate an outcome comprising parallel gains and losses, they prefer avoiding losses rather than making gains.

The Endowment Effect
Accordingly, originally, loss aversion was proposed as a justification of the endowment effect, which is the fact that people place a higher value on a good that they own than on an identical good that they do not own, as is the human psyche. Loss aversion and the endowment effect go against the Coase theorem which states that "the allocation of resources will be independent of the assignment of property rights when costless trades are possible.”
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The Trader’s Cure – Stop Overanalysing

Every trader, at least once in his career has come across a trade setup that looks perfect at first but then when they start to analyse it, they begin to feel less and less sure about that trade. Unquestionably, it is good to study and analyse every trade setup before entering it but overdoing this process and overthinking about it can become a problem for you.

This is quite common in the trading world, traders often over-analyse themselves right out of a good trade setup and it can become a huge problem that can have several negative consequences on their trading performance.

The solution for this problem is simple, ignore these influences. You should focus more on mastering your strategy, sticking to your plan and accept the fact that those external influences only hurt your actions.

The next problem is psyching yourself out of a good trade. One of the worst feelings a trader can have is when he/she watches the very trade they left, take off in their favour. The sole reason of them not entering it was that they thought ‘too’ much about it. All the traders have been in this scenario once in their careers and the cure for this problem is again, simple, don’t think so hard about it.
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How to Prevent a Trade From Breaking Your Trading Account

Due to the nature of the forex market, it’s easy to make or break your trading account depending on how you trade, and the nature of the trade. And because human beings are sensitive and emotional it’s quite easy at times to practically hand all your money over to the market by overtrading. Here are some ways that you - as a trader- can ensure that you don’t end up breaking your trading account all for one trade.

Know What you’re Looking for in a Market
To make sure that a trade doesn’t end up breaking your account, you need to know the functions of the market well enough to understand and predict its changes. You have to understand yourself enough to know how you want to use the market to your advantage while trading.

Refrain From Trading Emotionally
Once a trader wins a trade and gains profit, his demeanor tends to change, he starts to think that he’s an undefeatable big shot and nothing can ever drag him down well this over confidence is exactly what brings most traders down. Instead of letting feelings of greed and cockiness get the better of you, you need to remain immaculate in your behavior no matter how many losses or profits you might have made previously.

Do not Take too Many Risks
The euphoria of winning a trade often blinds traders and makes them take on opportunities they wouldn’t normally take because of all the risks involved. The more risks you take, the more potential there is for a loss, if you’re uncomfortable with the amount or volume of risks you’re taking its most likely that you’re setting yourself up for a loss.
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Top 7 Rules You Need to Follow as a Trader

Rules are everything, this statement may sound tedious and overused but as a trader, the faster you realize this, the better off you will be. There are always certain guidelines that one must follow to achieve the things he wishes to, following rules will not only be of financial benefit to you but it will also help you attain status amongst other traders and make you seem like someone of principle.

Don’t Put Impulse Over Logical Thinking
Unless you are someone who has been in the market for a long long time and has mastered the art of trading with his gut, make sure you don’t let your impulse take away your profits. Even if you’ve been winning for a long time and think you know your way around the market, you need to understand that one wrong, illogical move can cause you to lose twice as much as you have gained. So listen to your mind and brain rather than what you feel like you should do on impulse.

Don’t Look at Trading Scientifically
As a trader understand that no trade set up is ever 100% correct and you can’t look at it like a lab experiment, trading is an art that takes time to perfect and master, you can just look at all the quantitative data and draw conclusions of your own.

Understand the Pairs
While trading, the trader always buys one currency while shorting the other, always dealing in pairs. To be a successful trader, you need to pair the strong currency with the weak currency as economic trends are always changing.

Never Risk More Than What You Can Afford to
In most cases it’s likely that your common sense works enough to tell you this, but putting too much of your money out on the line rarely ever ends well. You should set a 2% stop loss for every trade and thus ensuring that you limit your losses.

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