Important Information

You are visiting the international Vantage Markets website, distinct from the website operated by Vantage Global Prime LLP
( www.vantagemarkets.co.uk ) which is regulated by the Financial Conduct Authority ("FCA").

This website is managed by Vantage Markets' international entities, and it's important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:

  • You will not be guaranteed Negative Balance Protection
  • You will not be protected by FCA’s leverage restrictions
  • You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
  • You will not be protected by Financial Services Compensation Scheme (FSCS)
  • Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.

If you would like to proceed and visit this website, you acknowledge and confirm the following:

  • 1.The website is owned by Vantage Markets' international entities and not by Vantage Global Prime LLP, which is regulated by the FCA.
  • 2.Vantage Global Limited, or any of the Vantage Markets international entities, are neither based in the UK nor licensed by the FCA.
  • 3.You are accessing the website at your own initiative and have not been solicited by Vantage Global Limited in any way.
  • 4.Investing through this website does not grant you the protections provided by the FCA.
  • 5.Should you choose to invest through this website or with any of the international Vantage Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.

Vantage wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.

By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Vantage entity.

I confirm my intention to proceed and enter this website Please direct me to the website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom

By providing your email and proceeding to create an account on this website, you acknowledge that you will be opening an account with Vantage Global Limited, regulated by the Vanuatu Financial Services Commission (VFSC), and not the UK Financial Conduct Authority (FCA).

    Please tick all to proceed

  • Please tick the checkbox to proceed
  • Please tick the checkbox to proceed
Proceed Please direct me to website operated by Vantage Global Prime LLP, regulated by the FCA in the United Kingdom.

×

Watch Reborn a Trader

row

View More
SEARCH
  • All
    Trading
    Platforms
    Academy
    Analysis
    Promotions
    About
  • Search
Keywords
  • Forex Trading
  • Vantage Rewards
  • Spreads
  • facebook
  • instagram
  • twitter
  • linkedin
  • youtube
  • telegram
4 Ways to Use Your Red Envelope Money as a Trader

TABLE OF CONTENTS

4 Ways to Use Your Red Envelope Money as a Trader

4 Ways to Use Your Red Envelope Money as a Trader

Vantage Updated Updated Thu, 2024 January 18 03:49

Lunar New Year is a major historical and cultural festival celebrated by millions of people around the world, particularly the Chinese, Vietnamese, and Korean communities. One of the most notable customs associated with Lunar New Year is the practice of giving and receiving red packet or envelope which contains cash money and are typically given by married adults to children and unmarried juniors, or elderly as an expression of filial piety. The use of red envelope is so deeply rooted in societies that celebrate Lunar New Year to which red envelope is also commonly distributed outside of family occasion during house visits, company or commercial events as a symbol of good luck and blessing, making it the quintessential Lunar New Year gift.

For traders, the red envelopes received as a blessing of the new beginnings could also mean extra money to fund your trades. As a trader, here are 4 ways you may bring the most value out of your red envelope money instead of splurging it away.

1. Size up their trade position

The red envelope money can be used to increase your holdings for existing trades. This additional capital, if generously gifted, gives traders the financial muscle to potentially capitalise on favourable market conditions. It could be a small boost to your cash reserve, earning you the liberty to size up or average down your positions. Having a larger trade size can help to potentially increase the returns you make for each trade, although this could also mean greater risk for potential losses as well. 

2. Diversification

One good way to consider using your extra red envelope money is to diversify your portfolio by investing in asset classes which have low correlations to one another. Diversification helps to reduce your risk profile and mitigate the adverse impact of a single event on the overall portfolio performance by lowering the risk associated with individual positions. Having said that, it’s important to note that no matter how diversified a portfolio is, the inherent risk of trading can never be entirely eliminated. 

There are multiple ways to diversify your portfolio. This includes diversifying across: 

  • Different products within the same asset class 
  • Different industries and sectors in the market
  • Different geographies 
  • Different product types
  • Different trade directions

Diversifyyourinvestment

3. Open a new trading account

If you have yet to step foot into the trading market, you may open a new trading account with your newly acquired red envelope funds. There are often perks offered for new traders with minimal deposit amount.

For example, when traders open an account with Vantage, they are eligible for a 50% deposit bonus promotion and an additional 10% Credit Deposit Bonus for all subsequent deposits. Traders can learn more about the promotion here.

Apart from just additional perks, traders can also access the brokerage’s tools and resources when signing up for the trading account. Some brokerages offer different research tools and educational resources to help traders make better-informed trading decisions. With Vantage, traders can find educational articles from the Academy and even get the latest market news and analysis from experts in the industry.

4. Improve your trading skills

Money spent on self-improvement is always a wise investment. Your red envelope money could be enough to be used on taking extra trading courses to improve your trading skills. Traders who understand the markets well are better prepared to develop a well-planned trading strategy that aligns with their goals and risk tolerance.

For example, a course on technical analysis could help traders to read charts better and identify potential trading opportunities, while a course on fundamental analysis can teach traders to understand the financial statements of a company to evaluate it better.

Ready to further improve your trading knowledge and bring your skills to the next level? Visit the Vantage Academy now and gain access to our extensive library of articles. You can also read all about latest market news and analysis from the industrial experts to stay informed.

Conclusion

Not all those who celebrate Lunar New Year will receive the same amount of red envelope with the same value of cash money in it. Regardless of how many red envelopes there will be, what matter the most are your blessing and how you would manage your newly found wealth wisely and practically, albeit rather insignificant in value. Be ready to count your blessing and your paper cash in red envelope as we usher in the Year of the Dragon.

  • vantage academy open account

    Open Trading Account

    Discover the endless trading possibilities with our cutting-edge platform, designed to empower both beginners and seasoned traders alike.

  • vantage academy app

    Download Vantage App

    Trade on the go with the Vantage All-In-One Trading App, where smooth execution and market access come together in the palm of your hand.

  • vantage academy start trading

    Start Trading

    Are you an existing user? Login to your account to start trading 1,000+ products including forex, indices, gold, shares and more.