Category: Finance & Capital

For many people, they’ve thought about one day investing in the stock market. They understand that it is a place to make returns on their hard earned money and potentially strike it even richer. The problem most people come across is that it can be overwhelming, confusing, and complex to those who don’t know what they’re doing. Many people do not invest because they don’t know how it works and that makes it riskier for them. Luckily there are both simulated and real apps that will assist in a new investing approach.

Virtual Apps

The best way to get good at something is to practice. That seems like an impossible venture for those worried to invest in the stock market. If you don’t have a lot of expendable money or want to make risks, you can use pretend services as if you were really investing. Here are some of the apps that offer just that.

1. We Seed: A directory app that is one of the best stock market games on the Internet. It is a free application that allows you to invest with virtual pretend money, with zero risk. It’s a premier teaching app. The money is of course fake; trades are virtual but based off of real stock exchange conditions. You’ll be able to build a portfolio and practice varying investing strategies without having to use real money.

2. Wall Street Survivor: This is another fantasy stock market game. It uses a realistic learning platform to make trades on and signup is as easy as We Seed. The stocks page is where you create you and manage your trades. All the user has to do is enter in the stock symbol, quantity, action and order type to facilitate a trade. On the app is also a portfolio page to view current and open positions or initiate a sell off to close a position.

The idea behind both of these is to conceptualize real trading without the real risks. Once you are comfortable you can begin trading and utilizing the resources to put this into real practice on the open market with your money.

News Sources

Veterans and newcomers alike need a good source of information. Money Morning is a great source for looking at real time updates on major indexes and reading a host of helpful analyst’ articles.  There are apps out there and news sites like Bloomberg and CNBC. They all provide daily coverage with real time stock quotes, access to videos and full-length programs. Each app is easily navigable and streamlined so you can utilize the features you need and want.

Educational Investing App

Once you’ve made the transition to real markets from virtual ones, you don’t have to jump into the stock market unguarded. There are applications that both help you invest real money and educate you along the way. Think of this as taking off the training wheels, but still having a directed path to maximize investing returns.

3. SigFig: Unlike other investing apps, SigFig lets investors manage the entirety of their investments. Right when you begin, the application will give you a set of personalized investments. There is a minimum of $2000 to start an account and put you on the right investing track. If you don’t want to direct any of it yourself, there is a 0.25 annual fee that SigFig will take out to manage your account for you. Along with the management guidance, SigFig also educates you through current news and latest research.

4. Acorns: The foundation of this app is built around the idea of investing your spare change to get you successfully into retirement. The company calls this approach micro investing. Anytime you make a purchase, the price is rounded up to the nearest dollar and the difference is put into your acorn account. It’s a simple concept and can help you save while your investments have the potential of growing. There is a $1 a month fee for accounts under $5000 and 0.25 percent over $5000. Don’t make this your main retirement fund, but check it out.

Jumping in the Market

Once you’ve dabbled around with virtual games and invested a small amount of money, you’ll probably be ready to invest fully. Education is the name of the game for beginning investors. Knowing what and how you’re doing things can lead to more advanced strategies and being able to turn a profit in the market. You’ll be able to call yourself, an investor.

Amelie Holt jumped into the stock market several years ago, and soon got her fingers burnt. Since stepping back and slowing down things have been going much better! She shares her knowledge with others who are new to the trading game.

Starting a business is a daunting prospect, especially if you’re currently in employment. Giving up your full time job can be a difficult decision but it can be very rewarding if you get your new business affairs in order. One of the essentials of starting up is ensuring that you’ve got a good idea of how you’ll be raising capital to fund the running cost, stock and other expenses of the business. Conrad has put together a handy infographic over at Personal income where he talks about innovative ways to raise money for you business. Check it out and let us know what you think!

Please include attribution to Personalincome.com with this graphic.

Bio:
Conrad blogs over at Personal income where he takes small businesses and startup through the sometimes daunting prospect of starting up their business. He’s a great advocate for the lean startup method and welcomes any new thinking around startups, businesses and succeeding online.

Help with investing is often sought when people wish to dabble in the world of investment for themselves. Firstly, they want to know how the world of investment functions, after which they want advice on what they should invest their time and money into. Here are a few tips to help you out of both points.

Look towards books for solid advice and help

The information you can find in books may help you advance your knowledge a little. The information you read in published books is more likely to be correct, as publishers are often unwilling to invest their money in dubious books of this nature. The information you find in books (especially accredited textbooks) is more likely to be correct than the information you find online or via e-books/Kindle books.

Think about contacting an investment advisory firm

Advice is only worth as much as you pay for it. There are some good investment advisory firms and there are some bad ones. You need to find yourself a good one and start building your knowledge and your portfolio with their help. If they are good then they will help to make you richer so that you keep coming back to them for advice. A lot of people use CMC Markets for help investing, forex trading and so forth.

Consider schooling to improve your knowledge

If you are serious about investing, then why not go to college or university and start learning about investing and the business world. A simple course in economics will help you improve your knowledge of money in a way that will make you a much sharper investor. You also have the added benefit of learning correct information in a learning environment. You are unlikely to be spoon-fed misinformation such as you would be if you learnt about investing from the Internet or from friends.

Learn from people who are successful investors

People who have experience with investing and who are successful at it are the best mentors to take on. They are hard to find, as people who are successful are often unwilling to pass on their secrets. But, if you can find one then he or she may prove to be your most valuable asset. A good investor will know that having as many income streams as possible is a good thing. So, consider offering him or her a deal, where you donate a monthly percentage of your earnings to him or her, in exchange for good advice and mentoring. That way the mentor has a financial incentive to give you good advice without taking on any risks.

Monitor investments for months in advance

When doing initial research on an investment you are only exposed to the investment as it stands and its recent history. Monitor your investment for a few months first to see if it does what you expected it to do. The more you do this then the better at predicting investment outcomes, to the point where you will no longer have to wait months before investing.

Investigate your investments as fully as possible

No company is going to tell the world that is has a fatal flaw in its products, or that it plans to lay off 300 staff next summer. Companies will do all they can to protect their stock prices, so you need to do as much research as you can to find out every dark secret your potential investment holds. Find out if your newest property is going to have a highway built across from it in two years, or if it is built in a radon heavy area. Find out if the savings accounts you are going to open are in a bank that is on the edge of going under, and find out if your share prices are being inflated by good online marketing.

Investigating your investments fully takes a lot of work and an incredible amount of tenacity, but the rewards are often worth the time you invest. This is true, even if your research simply helps you to avoid making a bad investment.

How much are you paying for risk?

Great investment advice is only relative to how much money you are prepared to risk on it. Advice of any kind should always be treat with the utmost skepticism. However, here are a few pieces of investing advice that you may like to consider.

Great advice is only worth as much as you pay for it

This applies to any advice, since it is often given out so freely. Would you take dieting tips from a fat person? Or, dating advice from a lonely person? So, why are you taking financial advice from people who are not rich? If you want advice that you can place more faith in–then buy it. This does not mean that all the financial advice you buy will be worth the money (or valid), but it has a higher probably of being correct and profitable than free advice.

If you do not like watching a straight line for six months then do not invest in shares

Many investment advice websites fail to fully appreciate the mindset of the average investor. They do not remark upon the fact that it takes a certain type of person to be successful when buying stocks and shares. Many people are uncomfortable with keeping their money in their shares for five years, and many are disheartened by the fact that their volatile shares have started to level out. In other words, if you are not comfortable seeing your share price remain the same price for at least six months, then investing in shares is probably not for you.

Set put options when business is booming

When people start to see stock prices and profits rising, they often try to get in on the action. Many people try to get in and purchase whilst the company is just beginning to do well so that they can be on board as the company becomes more and more valuable.

However, the immutable rule of “What goes up must come down” is ever true. Set up put options in anticipation of the company falling flat. The financial rewards will be quite high so you may not have to put a lot of money into your put option. Many times the line will continue to rise, but every now and again, the line will plummet and make you a fortune.

Advice your parents should have told you

Here are some investment tidbits that you should know already. They are pieces of common knowledge amongst senior investors.

Never take up a standard bank product.

Insist upon a tailored investment suggestion that suits your needs, finances, future goals and the current economic climate.

Earn money from your liquid cash

Transfer any excess cash into a flexible savings account so that you are at least earning something on your petty cash/ liquid cash instead of letting it sit in a bank without earning interest.

Small and safe returns are not risk free

A smaller return may be safer, but it takes longer to earn, which means it is placed under risk conditions for longer. It takes longer for you to earn your profit; thereby there is more opportunity for something to go wrong.

If they advertise 6% -10%, they mean 6%

Targeted capital formation, such as that seen with life insurance and pension funds, often have returns on the bottom rung. They often have obscure rules and loopholes that mean they may advertise a potential return without having to deliver on it.

Join an investment club with your spare money

These clubs bring together lots of people’s intellect and drives in one arena. If your club is well managed then you can invest a little of your money and earn some back quite comfortably. Do not make the mistake of devoting all of your investment funds into the club, as this poses an unacceptable risk to your financial future.

Fees are key to your success

If you are investing in unit trusts then you must keep on top of the fees. The success of unit trust investments is often dictated by their fees.

 

When you have to deal with transferring currency, there is always a risk attached due to the huge fluctuations on the global market. This currency risk could lead to a significant loss on a trade, but fortunately, there are ways to mitigate this risk and ensure that you are getting the most for your money. Whether you are preparing for a trip abroad, paying a foreign client or trading in the Forex market; try these methods to reduce currency risk.

Consider Influential Factors

There are many factors which can impact the strength of a currency, with a few of these being relatively predictable. It is worth looking at the current political and economic factors of the country that you are dealing with, as events such as an upcoming election could impact the value of a currency. Use this information to determine when the best time to make a transfer is. As the Forex market is the biggest in the world, it means that there are endless resources online which will help you to make intelligent decisions.

Stop Loss and Limit Orders

If trading on the Forex market, it is possible to incur significant losses very quickly due to the high leverage (which is a double-edged sword). In order to reduce risk, stop loss and limit orders can be used. A limit order enables you to set the maximum and minimum exchange rate for buying/selling, whilst a stop loss allows an individual to select a price for buying/selling a particular currency.

Forward Contract

For businesses that need to make a foreign exchange at a future date, they can mitigate risk through a forward contract. This allows you to lock in a favourable exchange rate, which will then be used in the future when the transaction is made. Whilst this is beneficial if you predict the exchange rate to fall, it can also work against you if the rate improves as you have a locked in rate.

Use a Currency Broker

Instead of going to your bank to handle the transfer, it is much wiser to use a currency broker. Reputable brokers, such as Hantec Markets, typically offer much more favourable exchange rates and often there are no fees involved. Additionally, many of these specialists have fantastic resources, tutorials and tools to help you trade at the right time.

Extreme swings in the exchange rate can make dealing with foreign currency a huge risk whether you are an individual or business. Fortunately, the above methods can mitigate risk and ensure that you are making intelligent trades at the right time.

As the world’s largest market and one which sees a staggering $5.3 trillion dollars traded each day, Forex trading is a term which pricks the ear of anybody with an entrepreneurial spirit.

Forex trading involves the trading of one currency for another at an agreed rate; this rate fluctuates according to economics, geopolitics and many other factors. By speculating on whether a currency’s value will rise (appreciate) or fall (depreciate), Forex traders can earn profit on their investment. In Forex, leverage enables you to trade without putting up the full amount which can be both a risk and advantage.

There are both risks and rewards with Forex trading and it is important for anybody to understand these before starting.

Potential Risks

There is always risk when it comes to trading and Forex trading is no different. When trading on margin, traders can incur significant losses very quickly and particularly if no risk management strategy is employed. Whilst high leverage enables investors to earn large sums from small amounts, this is also a double-edge sword as you could make significant losses if the market moves against you.

Another risk is that news from around the world can shake up the market; this makes it somewhat unpredictable. This also means that if you are to succeed, you must be constantly up to date on global and daily affairs and the economy. This can be very time consuming and stressful.

Potential Rewards

As established, due to high leverage, it allows traders to large amounts off a small deposit as the rest is lent by a broker. With a thorough understanding of the market (there are endless resources and up-to-date news and advice online); you can mitigate risk by making intelligent decisions. When you do not invest more than you can afford to lose and have a great understanding of the market; Forex trading is a fantastic way to earn capital.

There is also no market risk as nobody can corner the market, you can profit when a currency is either appreciating or depreciating and there are far fewer choices than the stock market. Due to the market being extremely liquid, it also means that you can always trade throughout the day.

The market is also open 24 hours a day (the only market which is) and trading is made very simple thanks to clever trading platforms, such as OANDA. Through these platforms you can execute trades quickly and easily, plus get all the latest news and information.

These are the key risks and rewards with Forex trading. As with any trading, there is risk and the high leverage is a double-edged sword. However, with sound understanding of the market and making intelligent trades; it can also prove to be very profitable.