Tag Archives | investment

3 Advantages of the Forex Market

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Lots of investors prefer different markets for lots of reasons. There’s not really a single answer for why any market is better than another, but today I thought I’d share three advantages of the forex market:

1. Volatility

The volatility of the forex market is sometimes cited as its biggest risk–and I won’t try to tell you that’s not true. Volatility comes with inherent risk.  But just like any other investments, securities with the highest risk also come with the highest yield.

I remember my early days of trading when I’d place an order and go to sleep, only to wake in the morning and find that my hopes and dreams had been crushed overnight. Naturally, I blamed the market when I should have blamed myself. I now know that with proper risk management, as taught in Apiary’s curriculum, you can make the market volatility work in your favor!

 2. Volume

So how does the increased volume of the forex market afford you an advantage? If you’ve had any experience trading other securities, you no doubt are familiar with placing an order and waiting hours, or even days, for that order to be filled. With fewer buyers and sellers in a certain market, you might not always have someone looking to fill an order–so you wait.

But forex is by far the largest market, so volume isn’t an issue. With so many buyers and sellers out there actively trading, you’ll find that you never have to wait for an order to be filled.

 3. Leverage

I’ve written a bit on leverage before, but if you haven’t heard of it before, here’s a simple explanation: Think of leverage as money a broker lends to a trader to increase the trader’s buying power. In the United States, brokers can give traders fifty-to-one leverage. This means that for every dollar a trader puts into an investment, a broker will match it with forty-nine.

Leverage is a huge advantage to the forex market because it gives you more weight to throw around. Because Apiary works through a broker in New Zealand, our traders actually get 100:1 leverage. That means when a newly-funded trader starts working with a $2500 account, they’re really working with $250,000 worth!

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Tips for Managing Position Size

Large position sizeAt the heart of money management is the decision of increasing or decreasing your investment. To illustrate this, imagine you own a store that sells athletic equipment. Because no sport lasts all year, you’d find yourself changing your floor inventory based on which sports are approaching, which are in full swing, and which are ending soon.

When it comes to changing position size, the rule is to increase your position size during favorable market conditions for your product. In your store, you’d have more football equipment on the sales floor during the fall when you know conditions are favorable for that sport. The other side of this rule is to decrease position size during unfavorable conditions. As football season winds down and basketball season begins, the products in your store would decrease inventory to reflect the new season.

Small position sizeFortunately, in the market there are two seasons: highly predictive and less predictive. You’ll want to increase your position size in highly predictive conditions and decrease your position size in less predictive conditions. Controlling your investment size is key to keeping your losses to a minimum. This, in combination with other elements of money management as emphasized by the Apiary Investment Fund, will ultimately lead to profitable trading!

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Apiary Fund Launches Forex Trading Platform Globally

For the past two years, Apiary Fund has been successfully operating under the radar. During that time, we’ve worked out most of the bugs, ensured our training materials are effective in teaching potential traders, increased the number of full traders to more than 100, released an investor profile, built in transparency with our Apiary Promise, and will shortly launch our new Groups function.

Today the company launches the Apiary Capital Fund to the world! We’ve proven our trading concept works in helping people learn to trade and subsequently earn supplemental income with no investment risk. Now, anyone in the world can potentially become a trader.

The Apiary Fund specializes in developing investors. There is a huge difference between learning and doing. What the Apiary fund offers is a way for people to bridge the gap between the classroom and real life by letting them manage our money. The model is successful because trading activity is diversified among many traders, which helps to reduce risk.

People interested in participating with the Apiary Fund can register for an orientation and watch a video here.

Apiary Fund teaches participants how to trade in foreign currencies. The company charges tuition for its training and learning courses and an ongoing monthly access fee to Apiary’s technology platform and ongoing training. Associates practice with simulation accounts as part of their training. Apiary associates only need a computer and Internet connection to get started.

Apiary associates do not need to be experienced traders. Most of the successful traders have no previous experience and come from many backgrounds – retirees, single parents, students and people looking for supplementary income.

Once participants reach a level of proficiency, they can become traders using Apiary’s funds for real trades. There is no investment required and there is no investment risk.

In order to provide confidence and transparency in the fund, Apiary Fund recently released The Apiary Promise, and its Investor Profile, a personality assessment tool to help investors recognize characteristics that are beneficial or detrimental to their investment strategies.

When we think about where we have come over the past two years along with the hurdles we’ve overcome, we are very excited bringing the Apiary Fund to the world. We believe the future is bright for our company and we look forward to working with many people around the globe in helping them become successful traders and earning additional income.

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The Summit and Trading Groups

Well, the Traders’ Summit is over, and we couldn’t be happier with how it turned out! We heard great stories, valuable instruction, and, when the American and European markets overlapped, we saw some expert traders in action!

We also saw the announcement of Apiary’s newest feature: Trading Groups.

If you’ve ever resolved to lose weight and get in shape, then you probably know how easy it is to lose that resolve. It’s not easy to get up at the crack of dawn and hit the gym before work every day—especially if you’re by yourself. But when you go with a friend, you’re more likely to keep with it. It’s this feeling of accountability that helps you stay motivated in the face of hard or inconvenient circumstance.

With Apiary’s new Trading Groups, you can now have that degree of accountability and structure within the hive! To find out more about Apiary’s Trading Groups, give us a call at 1-801-701-1650!

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Apiary Fund – Does your Personality Affect Personal Investing?

Yes! There are so many variables to investing; often it is difficult for the average investor to know where to begin. To make it easier for investors to understand their personal investing type, Apiary Fund launched its Investor Profile.

The Investor Profile helps traders identify their individual strengths and areas for improvement when investing or trading. The personality assessment helps investors recognize natural internal characteristics either helping or hindering financial success.

The Investor Profile started out as a project aimed to identify what makes an investor successful. We quickly realized that every investor is different and success comes when you can identify your strengths and weaknesses and then play to them.

Motivation, confidence, commitment, self-esteem, reasoning, and emotions are all contributors to the inner qualities influencing your ability to make investment decisions.

The Investor Profile determines the investor’s personality through 28 questions that have them select one of four words with which they most and least identify. Each investor receives a primary and secondary personality type that will help identify their overall profile.

It focuses on four personality types of traders:

  • Aggressive – Quick to enter a trade, but may exit quickly when a loss appears
  • Intuitive – Relies on emotional intuition to get in and out of trades
  • Analytical – Analyzes every possible variable before taking action
  • Methodical – Likely to trade on a system, not much regard to gains and losses

There is no such thing as a ‘bad profile’ for an investor. The Investor Profile simply identifies characteristics that people should know about themselves before they invest. After the assessment, the investor can see traits they may need to adjust and how they might respond to market changes.

After getting the results of the Investor Profile, participants have the option to obtain an eBook that goes into more depth about each of the 16 possible profile personality types. The additional information includes areas such as how you view yourself, basic desires and motivations, behavior under pressure and possible areas of improvement.

Author: Shawn Lucas |

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How Does Leverage Work in Forex?

Traders new to the world of foreign exchange often don’t understand the very tool that makes their trading possible: Leverage. Though the concept of leverage has gotten some negative heat in recent years,  it’s one that makes the markets accesible to new traders with little funds!

Leverage is like a short-term loan a broker gives a trader to allow for more buying power. Laws vary around the world, but in the Unites States, brokers are allowed to give traders fifty-to-one leverage. This means that whenever a trader puts $1 into an investment, a broker will match it with $49. This leverage is a great advantage afforded to currencies traders, as it can significantly expand a trader’s profit potential.

Let’s take a quick look at how leverage works:

You see indications that the US dollar is going up in comparison to the Japanese Yen. So you want to purchase 1 regular lot, which is going to cost you $100,000. Your broker, however, has given you 100 to 1 leverage. This means that you can borrow $99,000 from your broker as long as you have at least 1% of the lot size in your account.

Since you were buying at a 1% margin, $1000 US dollars are set aside so that you can open up the trade. You now control $100,000 US dollars worth of Japanese Yen. Let’s assume the exchange rate does indeed rise one cent and you close your position. At first glance this might sound like just a slight increase, but that seemingly insignificant climb earned you a cent for every dollar you had leveraged. You made roughly $1,000 US dollars.

We can simplify this idea by thinking about a home loan. I don’t have the money to buy a $200,000 home outright, but I do have $20,000. I can use that $20,000, or 10%, as a down payment, and the mortgage lender will match it with the remaining 90%. Then, if the house’s value has appreciated in five years, I can claim a profit! However, if the house depreciates to $150,000, not only do I have to take the loss, I still have to pay back my loan.

Amplifying a movement’s effect works two ways; with greater profit potential comes greater risk, so losses can be very large as well. With this in mind, it’s not hard to understand why Apiary teaches strict risk management methods!

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3 Easy Ways to Find Extra Investing Cash

You have precious little time to make income in life. If you divide life into fourths, you only have a quarter of your life – or 20 years – to really grow your lifetime earnings. Lifetime earnings are the collective income a person receives through a myriad of sources throughout the span of their life. The primary source of lifetime earnings is your job, but experts say that may not be enough. It’s becoming more and more important to use investing cash as a significant source for lifetime earnings.

According to data received by the Census Bureau, the average per capital income in 2011 is a paltry $27,915 with households earning only $52,762. Studies show that the shortfall between lifetime income and lifetime needs is over $50 billion in America and inflation and taxes are making the trend worse. With the gap between lifetime income and needs growing, having some investing cash is important since its one of the only sources of income that is able to extend a person’s lifetime earnings without extending the amount of hours they work.

But let’s face it. Investing cash is hard to find – especially in our economy. With rising taxes and increasing inflation whittling at your wages, finding those extra pennies requires much more than a pinch.  Fortunately, there are ways of finding investing cash beyond your annual income. Here are some suggestions to help you get started:

Sell Some Assets to Make Investing Cash

Most homes have a tidy sum of investment money sitting in closets, out in the garage, or stuffed in a drawer. The expected ROI (return on investment) for a closet full of old clothes is much less than the cash equivalent invested in your favorite mutual fund. So have a yard sale and make a little extra investing cash!

Stop Going to McDonalds and Save Investing Cash

The size of the fast food industry in 2010 was $184 billion. Needless to say, the gap between lifetime earnings and needs could be drastically reduced with fewer trips to McDonalds. Saving $5 on fast food and convenience stores can add up to $25 a week, or up to $100 of investing cash a month.

Investing Groups Offer Free Investing Cash

Another source of investing cash is the financial industry itself. It is common practice in the industry to provide investment money to people who have a successful investing track record. The challenge is becoming successful without having the cash to prove it.  One solution might be Apiary Fund. Apiary Fund is an investor education company that gives people investing cash to manage while they learn from professional investors how to manage money. It’s kind of like on-the-job training. You must complete their training program, which requires a small tuition fee and practice in a simulated account, before they fork over the investing cash, but they pay cash for your share of the profits, so it’s a fantastic way to earn while you learn!

Look no further than a list of the world’s wealthiest people and you’ll discover that producing income from investing cash is an effective way to increase your lifetime earnings and you don’t have to be a huge wage earner to do it. Through small – yet effective – resources, you can pull together a nice sum of investing cash that you can put to work to grow your lifetime earnings.

Author: Shawn Lucas |

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Seven 2013 New Year Resolutions to Avoid Your Personal Fiscal Cliff

With Christmas 2012 now behind us, most people turn their attention to the new year. Many will make New Year resolutions to better themselves and their families. If one or more of your New Year resolutions for 2013 are financial related, we encourage you to consider seven possible resolutions to help you avoid your own personal fiscal cliff.

 

  1. Resolve to diversify your income. You can diversify your money by taking a small portion of your income and putting it to work for you in other investments. Doing so will put your money to work and give you additional forms of income in addition to your job earnings. Even $50 – $100 more per week in earned income can have a significant impact on your personal finance situation. It allows you to trade money for money instead of just time for money.
  2. Resolve to use leverage. Like any industry that uses tools, leverage is the tool of choice in the financial world. Using small amounts of collateral or money deposits to control larger amounts of investment gives your money a bigger bang for your buck. A lot of people don’t understand what leverage is or how to use it. If you resolve to learn how to use it properly, it can become a powerful tool to allow you to do things with your personal investments that you couldn’t do before.
  3. Resolve to diversify your risk. Risk diversification is key to financial success, but most people fail to diversify risk correctly by forgetting most of their assets are in U.S. dollars. Diversifying some of your assets in foreign denominated currency can add that last bit of safety you need in case of a deterioration of the U.S. dollar.
  4. Resolve to invest in yourself. You don’t need to eat the entire financial elephant in one sitting, instead commit to investing a small amount of time each week learning new financial strategies and concepts. In just a few short weeks, your new found knowledge can sharpen your financial skills and senses.
  5. Resolve to follow your personal investing style. Just as certain physical traits are more conducive to different sports or certain personality traits are helpful in different professions, each person has financial traits conducive to different styles of financial management – financial traits that are good for success. Learn what makes you tick and invest based on your personal financial trait.
  6. Resolve to always pre-calculate your risk of loss. Any time you put money to work, there is a risk of loss. Risk of loss should not be a problem if you correctly calculate the risk before you invest and are financially willing to accept some predicted loss. A good investment is one where the potential gain is greater than the pre-calculated loss.
  7. Resolve to mix-up your markets. There are more markets than just the stock market – or the mutual fund market. There are five separate and independent financial markets: stocks, bonds, derivatives, commodities, and currency. Not all markets move the same way at the same time. This opens up new opportunities for profit as well as protection. Learning what the other markets are and their structure and advantages can give you a leg up in your financial future.


Apiary Fund is a great source for you to use in achieving these and many other resolutions in 2013 that can help you shore up your finances and supplement your income. If nothing else, it provides great training and education on how to successfully trade currency. Once training is complete, you can supplement your income by becoming an Apiary trader. There is no risk, no investment required – you are given an account to trade Apiary’s funds and share in the profits of your successful trades.

We wish everyone a very happy and prosperous 2013!

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Finding the Right Proprietary Trading Firm

Proprietary trading is not a new concept. In fact, it’s been around for decades, though the structures of today’s proprietary trading firms are as varied as the selection of cereal at your local grocery store.  Generally, proprietary trading firms, or prop shops, are focused on finding professional traders who can manage the firm’s assets.  While the structure provided by a proprietary trading group is great for the professional trader who knows how the industry works, there are some hidden pitfalls for the semi-pro or greenie trader choosing a firm to work with.  In this post from the Apiary Fund, I’d like to go over a few elements common to most prop shops, and show you how the Apiary Fund’s unique model compares.

Capital deposit
It usually takes some capital to get through the doors of most prop trading firms. Afterall, you’re going to be trading the firm’s money, so why shouldn’t they hold a little to cover any potential losses? Sure, they put it into an individual capital account that is kept separate from other traders’, protecting you from their losses. But, if the company finds itself in some financial trouble, your money isn’t safe. Who’s really taking the risk here?

Training and various fees
While most proprietary trading firms require some type of training and education, some shops are simply fronts for education programs and offer little if any opportunity for trading. The training they offer is usually less than stellar, as the information offered in such programs is often generic and easily obtained online. Brett Steenbarger, prolific author in the trading industry, writes in his own blog that “very high education fees may be a sign that this is actually the way that the ‘prop firm’ is making its money…There *is* no prop firm, only the illusion of one to lure newbie traders into educational programs.”

There’s nothing wrong with the idea of a firm charging for a good, quality training program. The problems come when the tuition for these programs comprise the bulk of a firm’s revenue. A prop shop should have some vested interest in its traders. It’s a matter of principle, really.

If you’re going to teach me something, you ought to stand behind what you’ve taught me. Without any risk to the firm, there’s no incentive to provide quality training. The last thing you want as a new trader is to shell out a bunch of cash in exchange for something you could have learned on your own—only to be left high and dry. As I said before, a legitimate firm should have a vested interest in you.

Where does the profit come from?
Education fees walk hand-in-hand with commission rates. A commission is a fee charged by the firm for facilitating the trade. When a firm charges a commission, they usually mandate a high amount of trades from their traders. They push their traders into the markets and demand they make trade after trade. They take their cut off of every transaction, winner or loser, and the trader is fired if he loses. This model shows a lack of vested interest by a firm in its traders, and reeks of a scam. If they see profit only when you see profit, there’s some obvious incentive for them to help you become a successful trader.

The profit-payout model is preferable to commissions. A prop shop shouldn’t make money just for facilitating your trades. If that’s their model, why would they care whether or not you’re a successful trader? And if they don’t care about your success, why would they bother creating a worthwhile training program?

A firm operating under a profit-payout model will make its money on trader profitability. It will teach you how to be successful in the markets and split your profits with you. By sharing profits, the firm is not only showing its faith in its traders, but also validating the education it provides. A shop that’s truly invested in its traders will not capitalize on a trader’s losses. A firm that’s invested in its traders will teach them how to attain success so both parties can reap the spoils together.

Nobody wants to see a firm take an enormous chunk from their paycheck, but traders also have to be wary of firms that offer surprisingly high payouts. This is also a sign that a prop shop doesn’t rely on trader profitability. Charging hefty tuition fees and then taking virtually no profit from successful trades, these firms are unwittingly showing the intrinsic value of the training they offer.

These are some of the most fundamental ways in which the Apiary model differs from that of traditional proprietary trading firms. Having provided a comprehensive education in sound risk management, Apiary is confident in its traders. So confident, in fact, that they are willing to put their own fund at risk to see you succeed.

If you’re interested in learning more about the Apiary Investment Fund, feel free to call us at 1-801-701-1650, email us, or attend our Trader Orientation Webinar.

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