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Hi Johnw,

 

Thanks for the compliment... Yes, I developed the indicators myself (and to avoid the thought I'm trying to promote them here on this forum....they are not for sale)

 

Í'll give you a brief description what the indicators measure:

 

- Trend Filters (slow/medium/fast): These filters classify each bar with a certain degree of tolerance and measure the related swing length.

 

- Trend Index: This is the leading indicator I use for entering a trade. It measures the trend quality based on a dynamic oscilator length.

 

- Market Heartbeat: This is my version of the ADX.

 

- Market Power: Shows the gear-box of the market (same as a car).

 

very ingenious indeed

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Flex1975, the chart is too small (and can't be enlarged) to see what indicators you are using. Would you care to tell us what indicators and settings for each, you are using? And what time frame are you using? I would like to try to examine your use of these indicators and time frames, also. Thank you.

 

Hi Ricastein,

 

Please see my reply to Johnw for a description of the indicators. The settings of the indicators are all dynamic (inside the code)...so none of the indicators have fixed input parameters.

 

I don't use time frame charts. In my opinion time related charts are way too noisy so I use an alternative chart type. Another reason for using an alternative interval is because I'm a automated trader and writing profitable automated systems on alternative charts is less complex....

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One of the big decisions a trader must take early on in the game is to decide the frame type and size to be used.

 

Will it be a tick frame, or volume or range or a time frame

And will it be 100 tics or 5,000 contracts, or 4 tics or 5 minutes.

 

These two decisions have at great bearing on the outcome of the game.

 

And then a Trader must ask themself .."will I use the much proclaimed 89 tick frame, or will I take a huge risk and round it out to 90 ticks"

 

Once these decisions are taken, it becomes apparent that frames are synthetic interruptions to the flow of contracts through the Exchange at the Bid or at the Ask, solely at the convenience of the Trader.

 

The Close of each frame is a snapshot of the price at the regular intervals that the Trader has prescribed ... and the high and low of the frame may be untradeable depending upon the next tic, but that tic of course lies within the next frame.

 

This is the foundation that TA is built upon, and yet it invokes less discussion than TA itself ... not unlike architecture really, where the colour of the window frames is the source of much discussion, but the foundations hardly rate a mention.

 

So, let us say imagine for a moment that we are top-down Thinkers ... our primary goal of course is to make oodles and oodles of money on a weekly [ and one day on a daily] basis.

 

We repeat this mantra so many times to ourselves that it is chiseled into our DNA.

 

This is an excellent place to be in the game of Trading ... our hearts and minds are solely focused on making lots and lots of money.

 

Therefore it is perfectly consistent with our goal to ask ourselves at EVERY step of our journey .... "is this Indicator or derivative directly going to help me make big money"

 

It is a simple YES / No question ...just like our trades ... we win / we lose

 

How hard can that be ...

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I do have a few things to say about technical indicators when the timing is right, but this thread is NOT a forum to display all your favorite indicators, so please do that somewhere else. I'm trying to develop your sense of price action primarily, and I don't want to confuse readers of this thread with "the latest, greatest..."

 

'ppreciate it.

 

 

Luv,

Phantom

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Phantom,

I think what you are posting here is great. They way you trade conceptually is very similar to the way I approach the market. I can tell this thread is going to be a good one. I will be following with much interest and am looking forward to it.

Thanks

SRspider

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I promised to provide info (fodder) such that a previously clueless trader can get profitable; I never promised anyone profitability per se. That, of course, would be in violation of CFTC regs.

 

Please come here to learn, you're not invited if you're here to "stir the pot." Nes pas?

 

Au contraire you are not welcome here if you want to scam.

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hi Phantom,

 

I have just read your narrative with respect to your posted chart.

 

All very clear indeed to the point where even a person like I can follow and clearly understand

your thought process leading into your successful trade.

 

What I struggle with, is why you refer to Bolly Bands, 20 ema, MACD, Hammers etc,

when it is obvious that you can read price behaviour so clearly.

 

My thoughts too (particularly on the 'squigglies') . One doesn't need a BB to see price tightening up. One Doesn't need an MA to detect trend or a reversion to the mean. One doesn't need a MACD to see a new low is on less momentum to the last low.

 

I wonder if they can help as 'training wheels' until you can see these things with plain price bars? I guess they can also help with quantifying the magnitude of a phenomena (for automation or whatever).

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My thoughts too (particularly on the 'squigglies') . One doesn't need a BB to see price tightening up. One Doesn't need an MA to detect trend or a reversion to the mean. One doesn't need a MACD to see a new low is on less momentum to the last low.

 

One also doesn't need color to watch a movie (as opposed to b&w) but it sure makes the movie more enjoyable...

 

 

Luv,

Phantom

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Au contraire you are not welcome here if you want to scam.

 

If I ever intend on selling anything, I'll be sure to exclude you from the offer...that way, you won't feel scammed.

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One also doesn't need color to watch a movie (as opposed to b&w) but it sure makes the movie more enjoyable...

 

 

Luv,

Phantom

 

Well assuming price is what we are actually interested in watching it through inidcators is akin to watching a movie through time lapse photography that transforms the image as well :) Anyway I don't want to derail your thread and will be interested to hear about these crash rails later.

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If I ever intend on selling anything, I'll be sure to exclude you from the offer...that way, you won't feel scammed.

 

And there they are...the true intentions! Why not being honest from the beginning? All you had to say was...."Hello, I am Phantom and I am offering a paid coaching service for beginning traders. This is wat you will learn.........(and you make a reliable case of all information nuggets you're selling)".

 

Clear and honest...

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hi Phantom,

 

I have just read your narrative with respect to your posted chart.

 

All very clear indeed to the point where even a person like I can follow and clearly understand

your thought process leading into your successful trade.

 

What I struggle with, is why you refer to Bolly Bands, 20 ema, MACD, Hammers etc,

when it is obvious that you can read price behaviour so clearly.

 

Hi Phantom,

 

I made this post because I am interested to know why a person with your understanding of price behaviour, employs Indicators that are clearly derivatives of the price itself

... I am not including hammers because they are just name given to price within a certain frame... a descriptive name I will grant you, but never the less it is just a name.

I say this because if you were to rename "hammer" to say zebra, it would have absolutely no influence over the movement of the next tic.

 

And the movement of the next tic and the after that and the one after that is what we trade ...it is the game we call trading ...n'est-ce pas

 

As I say, I am looking forward with interest to your post concerning "guard rails" although I still cannot imagine how a person who can describe price behaviour so clearly as you, needs a derivative in any shape or form.

 

This is your thread of course Phantom and it must not be derailed, but I have come to learn along the journey, that anything that distracts a Trader from following price is in fact just that ......a distraction.

 

I know Indicators can be regarded as "training wheels" to be discarded at some later date,

but that is akin to giving up drinking tomorrow .... as the song says "tomorrow never comes"

 

I can tell from your subsequent posts that you are very passionate about this subject, which makes me anticipate the "guard rails" even more.

Edited by johnw

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Well assuming price is what we are actually interested in watching it through indcators is akin to watching a movie through time lapse photography that transforms the image as well :)

 

I, for one, couldn't care less about price...I'm only concerned with price direction, volatility and liquidity.

 

The indicators I use serve the function of amplifying price bar subtleties, when they exist, so I can more easily decide whether or not a market is doing what I want it to do prior to my entry. I don't necessarily use the indicators on every trade, but they are there for when I consult them.

 

Hope that clarifies things. If indicators don't work for you, so be it. I never said I was a "purist."

 

 

Luv,

Phantom

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The indicators I use serve the function of amplifying price bar subtleties

 

Please explain in detail what your definition of price bar subtleties are and how Bollinger Bands, an EMA or MACD are capable to highlight these "subtleties"...?

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Dearest Flex, Mighty Mouse, and anyone else who only visits my thread only to look for inconsistencies and spread quasi-malicious comments,

 

My posts are fully intended to be didactic in nature.

 

If, for whatever reason, my posts offend you, you are all certainly invited to refrain from coming here. I can tell by the sheer numbers of visits that some of the folks who frequent my thread are actually interested in learning something.

 

I just hope that the folks who are well intended are not put off by your comments because I intend to continue teaching in spite of all your off-color comments.

 

Furthermore, I will teach on indicators when I am ready, and refuse to be pushed around by the few of you who don't have the patience to wait, and don't know a good thing when you have it right in your hands.

 

Now go do something constructive with your time and leave us alone if you can't behave yourselves...

 

 

Phantom

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And there they are...the true intentions! Why not being honest from the beginning? All you had to say was...."Hello, I am Phantom and I am offering a paid coaching service for beginning traders. This is wat you will learn.........(and you make a reliable case of all information nuggets you're selling)".

 

Clear and honest...

 

How's this for clarity and honesty: my "coaching program" is unfolding right before your eyes, and its free of charge!

 

Pretty good deal, huh?

 

 

Luv,

Phantom

 

P.S. I do actually intend on getting back on subject soon. Sometimes a little housekeeping is necessary when running a project of this magnitude...

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I, for one, couldn't care less about price...I'm only concerned with price direction, volatility and liquidity.

 

The indicators I use serve the function of amplifying price bar subtleties, when they exist, so I can more easily decide whether or not a market is doing what I want it to do prior to my entry. I don't necessarily use the indicators on every trade, but they are there for when I consult them.

 

Hope that clarifies things. If indicators don't work for you, so be it. I never said I was a "purist."

 

 

Luv,

Phantom

 

Quite so. Whatever helps one make consistent decisions at the hard right edge. Your thread your rules :)

 

Don't tell anyone but I usually have an indicator or two on my charts, often ones I have written. Anything that 'frames' price like VWAP & SD bands or gives a proxy for order flow like cumulative delta or trade intensity. sshhh just don't tell.

 

Here is a chart of the DAX from this morning the VWAP SD lines frame price beautifully, great when I am feeling too lazy to hand draw S/R. Of course you still need to look to see what price is telling you at these levels but indicator it is.

picture3.png.8fc680bea3cc1b11253ad6e43259224e.png

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How's this for clarity and honesty: my "coaching program" is unfolding right before your eyes, and its free of charge!

 

Pretty good deal, huh?

 

 

Luv,

Phantom

 

P.S. I do actually intend on getting back on subject soon.

.

 

Yes please ... at the risk of putting you under pressure, it are the "guard rails" that interest me.

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How's this for clarity and honesty: my "coaching program" is unfolding right before your eyes, and its free of charge!

 

Pretty good deal, huh?

 

 

 

True and fair point...when it's free...a reader cannot complain about the quality...

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True and fair point...when it's free...a reader cannot complain about the quality...

 

Sure you can. Constructive criticism is no bad thing. Of course it would be his prerogative to ignore it. Mind you this is the first mention of 'quality'. Seems to be simply and clearly presented to me. What phantom is presenting is a pretty straight forward approach that is based on 'price action' that demonstrably 'works'. Sure you need some money management and it might be an idea to filter trades (times of the day when you can expect volatility to pick up for example), but at the end of the day its solid TA. Simple concept clearly presented?

 

I was going to comment on your first post. It seems that your approach is pretty radically different from phantoms. (of course I may be wrong) It would certainly seem to merit it's own thread if that is the case? I wonder if any 'criticism' is not really criticism, it's just you do stuff differently?

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I've never really been someone who spent much time in forums in the past... fact is that this is the first traders' website I've ever become involved with.

 

My background is in nuclear engineering but I've been day trading for a living since 1999.

 

I browse around the various topics and see a whole lot of information being passed that, at least to me, and I'm not the biggest rock on the planet, is very difficult to assimilate.

 

I devoted some of my time to this website and to you fellow traders because after breaking every trading rule in the bag MULTIPLE TIMES I had to create trading methods that were so easy that even a lazy, detached, bored, etc,, etc. guy like me could make money.

 

Please don't be fooled by the simplicity of my approach to trading the futures markets. The simplicity in my methods is paramount to my own ability to make big money, week in, week out. I've got 5 mouths to feed and not much patience for a losing trading program.

 

My hope is that at least some of you traders can relate...

 

 

Luv,

Phantom

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I've never really been someone who spent much time in forums in the past... fact is that this is the first traders' website I've ever become involved with.

 

My background is in nuclear engineering but I've been day trading for a living since 1999.

 

I browse around the various topics and see a whole lot of information being passed that, at least to me, and I'm not the biggest rock on the planet, is very difficult to assimilate.

 

I devoted some of my time to this website and to you fellow traders because after breaking every trading rule in the bag MULTIPLE TIMES I had to create trading methods that were so easy that even a lazy, detached, bored, etc,, etc. guy like me could make money.

 

Please don't be fooled by the simplicity of my approach to trading the futures markets. The simplicity in my methods is paramount to my own ability to make big money, week in, week out. I've got 5 mouths to feed and not much patience for a losing trading program.

 

My hope is that at least some of you traders can relate...

 

 

Luv,

Phantom

 

Hi Phantom,

 

Why not just stay with your original intent and do not allow yourself to be distracted.

If you quite correctly believe that simplicity is the key and yet you incorporate TA

on some sort of ad hoc basis, then I am as curious to follow your posts as I am to learn of "guard rails"

 

Just push on ahead

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Simple does not mean easy as the old cliché goes. Mind you if one can't make simple work the chances of making complex work are pretty slim. I don't think the problem is just assimilation, if there are too many variables and parameters involved it is much harder to be consistent at trigger time.

 

Edit: Yeah as JohnW says push on...I guess I am as guilty as anyone as decreasing the signal to noise ratio.

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Sure you can. Constructive criticism is no bad thing. Of course it would be his prerogative to ignore it. Mind you this is the first mention of 'quality'. Seems to be simply and clearly presented to me. What phantom is presenting is a pretty straight forward approach that is based on 'price action' that demonstrably 'works'. Sure you need some money management and it might be an idea to filter trades (times of the day when you can expect volatility to pick up for example), but at the end of the day its solid TA. Simple concept clearly presented?

 

I was going to comment on your first post. It seems that your approach is pretty radically different from phantoms. (of course I may be wrong) It would certainly seem to merit it's own thread if that is the case? I wonder if any 'criticism' is not really criticism, it's just you do stuff differently?

 

Hi Blowfish,

 

You're right...my approach is radically different but I also respect the approach of Phantom. The only thing that is important (in my opinion) when you choose to present an trading approach on a forum like this is to specify the conditions when you take the trade or don't trade.

 

For example....Phantom says he looks at volatility...is ATR, standard devation or something else leading...are there minimum volatilty values required....is there a minimum length (in bars, price or time) regarding the breakout before the hammer etc etc.... Only then you have a valid trade setup and that's something a lot of (newbie) traders simply do not understand...

 

If the trade rules are clear I can code a "Phantom strategy" and provide some test results for those who are interested...

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Subsequently, the price continued on that downward trajectory for about three months. However, things started looking up for Bitcoin from the 27th of October 2016 when price closed above the previous halving’s high of $664. Bitcoin later proceeded to smash its last all-time high of $1,167 on the 23rd of February 2017. This spike started the famous bull rally of 2017 through 2018, which witnessed a peak at $20,000 sometime in December 2017. 2016’s halving shot Bitcoin’s price from $664 to $20,000 which was a growth of 2,912%. Possible Outcomes of this Year’s Halving? In the crypto sector, the Bitcoin halving is undoubtedly among the most talked-about and anticipated occasions of the year. Presently, there are mixed expectations as to what the outcome of the 2020 halving may be. Many in the crypto sector are very optimistic and believe that, just as in the past, the price will soar dramatically either before or after the occasion. Creator of Kraken, Jesse Powell expects the price of Bitcoin to rise close to $100k or 1 million after the halving. The CTO of Morgan Creek Digital Assets also shares the belief of Jesse and expects Bitcoin to reach the $100,000 mark by 2021. He says that scarcity is a driving force for the demand of any commodity. He explains that the 2020 halving will cause Bitcoin to be more scarce. Other crypto players believe that this year’s occasion will not have a similar trajectory with past occasions and would, instead, mar the price of Bitcoin. Another possible scenario that has been observed over time is the “buy and dump” case. This scenario usually plays out when there is a highly anticipated occurrence. It works exceptionally well when the upcoming occasion is sure to have a quantifiable effect on supply and demand dynamics. The price of the asset in question experiences a huge spike just days or a few weeks to the main event. This transpires because investors stock up on the asset towards the event. After the event, however, the price of the said asset drops significantly. This kind of activity has transpired frequently in the cryptocurrency space. One such occasion was the Bitcoin futures trading releases for the CBOE and CME. Just a few days to the CME’s release, the price of Bitcoin rallied from $6,400 and peaked close to its all-time high of $20,000 in a day. Not surprisingly, the price dropped considerably in the period that followed those releases. Furthermore, some cryptocurrency experts believe that the aftermath of the halving has already been priced in. It has been observed that demand is “missing” in the Bitcoin market, this could be a clear indication that the halving has been priced in. Usually, months before a halving, a boost in demand and price of Bitcoin is always noticeable. This time, however, no increase can be observed in neither of the stated areas. In this case, it could lead to a lateral trading period which might be a good thing for traders. At the moment, Bitcoin is still struggling to break above the $7,200 mark and there are no signs of a reversal happening soon. Whatever the result may be one thing is for sure, the price of Bitcoin is set to experience drastic changes this year.   Source: https://learn2.trade 
    • Your All-Round Guide To Security Token Offerings Security token offerings (STOs) are one of the most revered investment options in the crypto space at the moment. It has even been termed the “future of fundraising”. But what exactly are STOs and what is the rave all about? This article aims to break down STOs, what it is all about, and how it can be beneficial to you. What Exactly is a Security Token Offering? STOs, simply put, provide a means of tokenizing fungible financial assets such as stocks, bonds, and REITs, and introduces the tokens to the public through regulated channels. STOs are a lot like ICOs as they generally involve the same processes. However, the differentiating factor between STOs and ICOs is in the tokens being sold. With ICOs, the tokens are usually non-descriptive and could range from anything digital currencies to utility tokens. With STOs however, the token is a “security”, meaning that it is exchangeable and possesses a set monetary value. Breakdown of Security Tokens Security tokens function as digital versions of the assets they represent. Here’s a list of some popular security token representations: 1- Capital markets: Firms can convert their shares into tokens, allowing investors to own parts of the firm. In some cases, owners of tokens receive dividends and can execute votes on the affairs of the firm. 2- Equity funds: Equity funds can also tokenize their shares for sale. 3- Commodities: Commodities like gold, natural gas, coffee can be tokenized. 4- Real estate: The equity of this asset class can be tokenized, much like how REITs function. STOs do not change the underlying securities, instead, it makes these assets more readily accessible on a digital platform. Unlike other digital assets, security tokens can only be traded on certain regulated exchanges. Some exchanges require interested investors to meet some set qualifications. Advantages of STOs STOs are formulated with regulatory-compliance in mind, unlike ordinary token sales. Security tokens provide its owners with several legally binding rights. Some security tokens even bestow its owners with rights to dividends or other defined streams of income. Security tokens are also beneficial to their issuers. From the onset, the entities issuing the tokens are aware that their tokens are being purchased by accredited and verified investors and so, they don’t have to worry about the credibility of their investors. Other advantages of STOs include: 1- It is adequately regulated: Entities issuing security tokens must operate under the guidance of designated regulatory agencies in the region like SECs and FTCs. 2- You can rest assured that STOs won’t falter in the future: Unlike ICOs that cannot be guaranteed, STOs are sure to always deliver because it is properly regulated. 3- STOs offer great convenience: Procuring security tokens is easy, straightforward, and stress-free. All you need to do is to adhere to the STO requirement in your jurisdiction and you’re good to go. 4- It can be programmed: Security tokens are programmable and can be facilitated by smart contracts. 5- Automated dividend disbursement and voting: Some security tokens are structured to send dividends automatically through smart contracts. Also, some security tokens provide the bearer with exclusive voting rights in the affairs of the entity offering the tokens. 6- It is a globally accessible investment vehicle: Investors across the globe can procure security tokens regardless of their location. 7- It is not susceptible to manipulation: Considering the mode of operation STOs are run by, big players cannot manipulate its movements. 8- STOs are very liquid: It is a very promising investment option as it has an impressive liquidity quality and can be traded easily. With benefits like these, STOs are for sure transforming the fundamentals of the financial sphere. Disadvantages of STOs As with every other form of investment, security tokens has its limitations and shortcomings. Some of these limits are: 1- It is considerably more costly than utility tokens: STOs, unlike ICOs, hosts many organizations in their fundraising campaigns. Also, regulatory fees are not cheap which makes it more capital-intensive to host STOs. 2- Investor Qualifications: Countries like the US have certain qualifications an investor has to scale before becoming eligible to engage STOs. According to the SEC to be an “Accredited investor”, you must have an annual income rate of $200k and above or a minimum of $1 million in the bank. 3- Specific trading conditions: STOs can only be traded on certain designated exchanges. Also, these tokens are time-bound meaning that you are allowed to trade these tokens between investors for a set period after the STO. The Howey Test Usually, tokens are said to be securities, by law, when they pass certain thresholds. One such way to identify a security instrument is by applying the “Howey Test”. But first, let’s look at a piece of quick background information on how the Howey test came to be. In 1944, a citrus plantation called the Howey company of Florida leased out a large portion of its land to several investors in a bid to raise funds for much-needed developments. The buyers of the land were not skilled or versed in citrus farming in any way and decided instead to just be “speculators” and let the experts do their jobs. The lease was made on the premise that profits would be generated for the investors by the lessor. Not long after the business transaction the Howey company was sanctioned and accused by the United States SEC of failing to register the sale with the authority. The SEC maintained that the company was dealing with unregistered security. Howey denied the claims however, assuring that what it offered wasn’t a security. After much debate, the case ended up in the Supreme Court, which later ruled in favor of the SEC that Howey’s land leasing were undoubtedly securities. It remarked that investors were purchasing land mainly because they saw an opportunity to make a profit off the deal. Howey was then ordered to register the sale. This was the story of the enactment of the Howey test. Today, per the Howey test, anything is deemed to be a security if it satisfies the following criteria: 1- The investment included money. 2- The investment was made on an enterprise. 3- Profit will be made from the efforts of the providers of the investment. The Howey test has become a stronghold name in the crypto space. In 2017 and 2018 (during the “Heydey boom”), many ICO providers were completely consumed with scaling the Howey test as it was a major determinant used in ascertaining the legality of an ICO by the SEC. Failure to pass the test meant the offering was illegal and was sanctioned by the authorities. Some ICOs even advertised their tokens as investment instruments that had no value, describing their tokens as “utilities” used only for interactions on the platform. The Inception of STOs The very first STO was released by Blockchain Capital on the 10th of April 2017. The release pooled about $10 million in one day. Several STOs have been released following the first event including tZero, Sharespost, Aspen Coin, Quadrant Biosciences, and many more. STOs have since gained widespread acceptance and relevance in today’s market. Understanding the Distinction Between Security Tokens and Tokenized Security Confusing security token for tokenized securities is a common trap that people fall into. The main distinction between the two is that the former is usually a recently issued token that functions on a distributed ledger system while the latter is just a digital manifestation of pre-existing financial instruments. Apart from similarities in appearance and nomenclature, security tokens have absolutely nothing in common with tokenized securities. What Entities are Involved in an STO Issuance? Assuming a business entity plans on issuing security tokens as an embodiment of equity in its establishment, the next necessary step for that business would be to involve certain players and follow certain directives. It has to formally contact an issuance platform to serve as a medium for issuing the tokens. Popular issuance platforms include Polymath and Harbor, which consist of service providers like custodians, broker-dealers, and legal entities to carry out secure processes. Who Can Invest in STOs? STOs are available to the general public for the taking, regardless of location. However, as mentioned previously, the US has certain rules guiding STO investments. In the US, it is mandatory to be an “accredited investor” before you can invest in this instrument. An accredited investor is an individual with an annual cash flow of $200k and above for at least 2 years or a net worth of $1 million and above. More nations are starting to adopt the United States’ classification method and have begun restricting certain classes from investing in STOs. It is advisable to always research on the STO rules and regulations of the jurisdiction you’re planning on investing with. Final Word STOs provide businesses with the prospect of raising funds in an easy and regulated setting. It gives both investors and issuers a good deal of benefits, while also ensuring insurances against fraudulent or malicious practices, unlike ICOs. Issuers are not limited to any industry, they can vary from several sectors including real estate, VC firms, and small and medium enterprises. Moving forward, we will likely witness prominent firms venture into the STOs.   Source: https://learn2.trade 
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