Tag: investing

All investing related articles are found here. Educative, informative and written clearly.

  • How To Learn About Trading and Master it?

    How To Learn About Trading and Master it?

    1 min read

    How To Learn About Trading?

    How to learn about trading or investing? First of all, don’t worry, you are not alone.

    I’ll start by telling you, there are a lot of people who are trying to make money online. You can find a very good way to make money online and for free.

    To be honest, I am not a fan of pay-to-be-rich-quick scams online. In other words, I think trading or investing is permanent learning. And life goal is to be successful in this field for a long time. 

    For new investors wanting to take their first steps, I offer great answers to the simple question.

    “How do I get started? How can I learn about trading?”

    The first step on how to learn about trading 

    Your first step should have multiple sources of a good education. Trying and errors combined with the ability to continue will finally lead to success.

    Read books, read articles, find a mentor or advisor, study the greats. Also, read and follow the market, consider paid subscriptions and be careful. 

    For some starting level investor, the stock market can be a lot difficult to understand. Without a good knowledge, no one is capable to dive into it.

    There are two main schools of thought regarding how to choose stocks.

    The first called fundamental analysis and second called technical analysis.

    How To Learn About Trading? 1

    The first refers to the use of a company’s financial reports and public statements to analyze the strength of the business. Balance sheets, income statements, yearly and quarterly earnings, and news releases are all important tools for fundamental analysis. You can find those reports online, as are tutorials on how to read them.

    The second refers that swings in stock prices follow sample that traders can learn to detect and profit from.

    Technical analysis

    Technical analysis is not as widely accepted or practiced as fundamental analysis.  Therefore many traders use a combination of the two techniques to choose stocks.

    Choosing a company with healthy fundamentals and then from time to time trading on a technical indicator is a safer strategy than relying only on technical indicators.

    How To Learn About Trading? 2

    Before you decide to buy or sell any stock, you should completely research the company, its leadership, and its competition. There are various sites which offer excellent compilations of news stories, financial statements, and stock price charts. Stock sites also show professional analysts’ ratings of a given stock, which indicates whether that analyst advises a trader to buy, hold or sell a stock. 

    Before you enter the trade

    Before you begin buying and selling stocks, you have to decide which online trading service you want to use, firstly. 

    Choosing your brokerage partner carefully can directly affect your bottom line.

    The best advice I got as an online trader is to choose my brokerage partner with open eyes.

    What you have to do, how to learn about trading:

    Practice with an online stock simulator: Using these allows you to practice your skills with zero risks. Many come with tutorials and forums to discuss investing strategies.

    However, keep in mind that simulators don’t reflect the real emotions of trading and consequently are best used to test theoretical trading systems.

    Trade penny stocks: You can find companies offer stocks that are traded for a very low cost. This wonderful opportunity to practice leveraging the market without a lot of risks.

    Trading penny stocks mean trading outside the major stock exchanges. You can trade them on the over-the-counter-bulletin-board (OTCBB) or through daily publications called pink sheets.

    The bottom line

    In conclusion, educate yourself about financial performance indicators.

    Read the news and financial websites. Listen to podcasts or watch online investment courses.

    Join a local investment club to learn from more experienced investors.

    Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web.

    Risk Disclosure (read carefully!)



  • How to Buy Stock Options??

    How to Buy Stock Options??

    HOW TO BUY STOCK OPTIONS? 1
    Buying and selling stock options isn’t just new territory for many investors, it’s a whole new language, new world.

    By Guy Avtalyon

    Let’s see how to buy stock options. They are not new, there are historical findings that confirm their use during the Antiquity period.

    You might suppose these options markets are another superfine financial instrument that Wall Street gurus created for their own dishonest purposes, but you would be wrong.

    Actually, options contracts did not originate on Wall Street at all. These types of instruments exist for thousand – long before they began officially trading in 1973 under the name of the Chicago Board of Options.

    Since you have a better understanding of what options are (calls and puts) let’s look at how to buy a call option in a more detailed explanation.

    How to buy stock options

    At first, place, how to buy a call option. To buy a call you must first recognize the stock you think is going up and find the stock’s ticker image.  

    When you get a quote on a stock on most sites you may click on a link for that stock options chain which lists every actively traded call and put option that exists for that stock. 

    Let’s go step by step:

    1) Identify the stock that you think is going to go up in price
    2) Review stock Option Chain
    3) Select the Expiration Month
    4) Select the Strike Price
    5) Determine if the market price of the call option seems reasonable

    Are there the options for all and every stock?

    Well, this is a fantastic question because options cannot be traded for all stocks. Some of them don’t have the options. You can buy options for only the most popular stocks. They are tradable. Also, there is no possibility to always buy a call with the strike price that you want for some options.

    Strike prices are generally, in intervals of $5 e.g. $30, $35, $40. Occasionally, you can find $34,5 or $32,5 available for popular stocks.

    Also, there is no possibility to always find the expiration month you are looking for on the option for which you want to buy a call. Most of all, you will see the expiration months for the closest two months. Then every 3 months thereafter. Surprisingly, if you find the option that you want to buy a call on, you still need to make sure it has enough volume trading on it. Just to provide liquidity so that you can sell it if you decide to.

    Are options frequently traded on the most stocks?

    The most stock options are infrequently traded. Therefore have a higher bid/ask spread.

    To buy a call you have to understand what the option prices mean and you have to find one that is reasonably priced.

    If trading is at $22,5 a share in September and you are looking to buy a call of the November $32 call option, the call option price is regulated like a stock, fully on a supply and demand basis.

    If the price of the call option is $0.5 then not many people are expecting to rise above $60; and if the price of that call option is $4,00, then you know that a lot of people are expecting that option to rise above $60. The most important thing to understand when you want to buy a call is that option prices are a function of the price of the underlying stock, the price, period left to expiration, and volatility of stock itself. The volatility and the expected volatility of the stock are keeping traders in different opinions and hence drives prices.
    The most important\ thing to understand when you want to buy a call is that option prices are a function.

    The function of the price of the underlying stock, the price, period left to expiration, and volatility of stock itself.

    The volatility and the expected volatility of the stock are keeping traders in different opinions and hence drives prices.

    Many genuine investors and traders wake up in the morning and sneak a peek at the stock futures to anticipate where the market will open in comparison to the previous day’s close.

    What are the main characteristics of call options?

    – The security on which to buy call options.

    Suppose you think XYZ company stock is going to rise over a specific period of time. You can consider buying XYZ call options.

    – The number of options contracts to buy.

    Each option contract holds 100 shares of the underlying stock. Buying 3 call options contracts, for example, grants the owner the right, but not the obligation, to buy 300 shares (3 x 100 = 300)

    – The strike price.

    Strike price refers to the price at which the owner of options can buy, let’s say the stock when the option is exercised.

    For example, XYZ company ‘s 100 call options allow the owner the right to buy the stock at $30, regardless of what the current market price is. In this case, $30 is the strike price (this is known as the exercise price too).

    – The trade amount that can be supported.

    This means the maximum amount of money you want to use to buy call options.

    – The expiration month.

    Options do not last forever. They have an expiration date.

    Say, if the stock closes below the strike price and a call option has not been exercised by the expiration date. It expires worthless. And the trader no longer has the right to buy the underlying asset and the trader loses the premium paid for the option.

    Most stocks have options contracts that last up to nine months. Traditional options contracts typically expire on the third Friday of each month. So, you must be aware of how to buy stock options.

    –The price to pay for the options.

    When you buy the stock for the stock price, you buy options for what’s known as the premium.

    Premium is the price to buy options. In 100 XXX call options example, the premium might be $4 per contract.

    It means the total cost of buying one XXX 100 call option contract would be $400 ($4 premium per contract x 100 shares that the options control x 1 contract = $400).

    If the premium were $6 per contract, instead of $4, the total cost of buying 2 contracts would be $1,200 ($6 per contract x 100 shares that the options control x 2 total contracts = $1,200).

    – The type of order.

    Options prices are constantly changing, like stocks. So, you may choose the type of trading order with which to purchase some options contract.
    There are several types of orders, including market, limit, stop-loss, stop-limit, trailing-stop-loss, and trailing-stop-limit.

     

  • Investment Opportunities – How To Identify

    Investment Opportunities – How To Identify

    How To Identify Investment Opportunities
    It isn’t easy to find investment opportunities and anyone can fall into many traps while seeking that. Here is how to avoid them.

    By Guy Avtalyon

    Someone would say: We all know the basic words to successful investing: Buy low and sell high. But it isn’t so easy to find good investment opportunities.

    What else or different you can tell us?

    First of all, I have to tell you that investors need to have rules.

    Otherwise, the common saying can be difficult to perform, especially when many of your friends and colleagues are doing the opposite. If you don’t have a solid structure and order you are predestined to fail.

    Investing or trading is like a robotic work, without emotion and always strong adherent to your rules.

    You can find more and more investment opportunities opening themselves up to the investors. But not all of them are good investment opportunities. In fact, so many opportunities have drawbacks. First, you can be confused and may not pick the right one. Second, you might want to pick too many. That is dangerous per se. You can end up running like a headless fly, monitoring too many stocks, with investing more than it is reasonable. Hence, you may neglect something very important for your investment goals and financial security. The consequence easily could be your empty bank account or you’ll end up in debts.
    The following are things to look for when finding an investment opportunity.  If some investment opportunity has most of these things or all of them, you are looking at one that is likely to bring you wealth.

    For example, if you don’t see yourself owning stock in a company you are looking for in the next ten years, then you should stay away from investing in that company. Most of the money made in business investments come from owning stock in the company. Investors are leaving it alone until the value rises and reinvesting your dividends versus rapidly buying and selling your stock in a business. That is the so-called long-term viability.

    You have to measure the risk involved in a market investment against the potential reward. A good ratio is one to three. After that, you should set up a maximum acceptable loss.

    What is the first rule of investing?

    BUY LOW!

    Determine the baseline value for an investment or trade, and wait to buy it until the price is below what is reasonable. When the stock market declines and other investors panicked and start short selling, that is the best time to look for buying opportunities. Ideally, you want to purchase an asset after the price falls significantly, with the expectation that it will rise again in the future and produce a good return.

    All rules of investing

    The second rule of all investment is to SELL HIGH!

     

    After the price rises dramatically it is time to consider selling an asset. This is often a time of stock market growth when many people are impatient to buy into a rising market. When some investment shows significant gains, this is the ideal time to cash out and lock in your return. You could gather the income into a secure investment or look for a new underperforming asset and try to repeat your success.

    How to find investment opportunities?

    The golden rule is to LEARN FROM YOUR LOSSES! Yes!

    In trying to buy low and sell high, you are forced to make some mistakes. If it is easy to buy low and sell high, everyone would do it. Try not to lose sleep over it or give up investing altogether when you lose money on some investment. Maybe you just have to take a break for a while and later capture market returns with an index fund. Or you will learn to more carefully research investment before putting more than you can luxuriously afford to lose on the line. Your fears can’t be the limiting factor that mutes your potential. Let that storm be the fuel that moves you to success.

    Where to find investment opportunities?

    Use your fear to produce better outcomes!

    You should have a list of the investments you have made in the past. Think about what you could do to produce better outcomes in the future. You can get colossal insight from physically writing down outcomes you would like to avoid. That can prevent you from making emotional investment decisions. If you have a financial planner or adviser or someone else who will look over your investment ideas, that adds gravely deeper layers of reliability and responsibility.

    You have to have a plan to avoid later regrets!

    Of course, that large loss can cause you to regret because of bad investment decision. There’s also the regret that comes from watching other investments got wings. When you have a good plan of inventorying and you analyze your investment options often, that can help avoid a negative result. Writing it down makes it easier to stick to a plan.

    Ultimately, investing is about finding the lifestyle that you want to live. So, you can’t do that if never find good Investment opportunities.

    Choosing wisely may produce enough wealth to allow you to retire sooner or walk away from an annoying job. All you need is to use logic and stick to a financial plan to successfully build wealth.

  • Avoid Bad Investment Moves – Strategies that work

    Avoid Bad Investment Moves – Strategies that work

    2 min read

    Strategies to Avoid Bad Investment Moves

    It is possible to avoid many bad investments.

    If you know what “catches” to look out for and which clarifying questions to ask.

    Most bad investment scenarios can be avoided by following simple rules.

    First of all, you have to avoid emotional and personal investing mistakes, wisely avoid.

    Many investors, even the well learned, can confirm they made a rushed and impulsive decision and didn’t avoid a bad investment.

    Also, many have made decisions while high on emotions so as to score instant satisfaction.

    The danger of making bad investment choices cannot be overemphasized. You can use an extensive set of control strategies that people use to limit bad decisions.

    What are some of the bad investment choices you can make?

    * Failures of rationality – This represents the lack of possibility to see the bigger picture. The investor considers decisions in isolation and doesn’t include their impact on an entire portfolio.

    The consequence is that you can invest too much in a single asset class, industry, Or geographic market. Yes, because you know a lot about it and are comfortable with such decisions. 

    * Using a short-term decision horizon – when an investor is ignoring the appropriate goal of long-term wealth accumulation.

    The favor is short-term returns. 

    But you are here to stay. Right?

    The consequence is that losses are more likely in the short run. Much more than over longer time periods.

    People are twice as sensitive to losses as to gains. This behavioral phenomenon is known as “myopic loss aversion”. And their inclination to take short-term risks is too low.  So they often make the wrong investment decisions.
    Strategies to Avoid Bad Investment Moves 3
    * Buying high and selling low – means doing what’s comfortable amidst either bullish or bearish market conditions. The consequence is that when you are buying while markets are high or selling when markets are low is a risky strategy that fails to take advantage of market opportunities. A buy-and-hold strategy turns out to be superior.

    * Trading too frequently – this is the result of multiple emotional and personality-driven characteristic. That produces an irrational tendency toward action.

    The consequence is that investment costs are higher.  As the frequency of making the other types of poor decisions is increased.

    Strategies to Avoid Bad Investment Moves 4
    The experts recommend these seven self-control strategies. They can help counter your tendencies to make bad decisions and avoid a bad investment. The use of these strategies was not limited to investments and often included other behaviors and other important lifestyle decisions.

    Here are the seven strategies and their application to financial decisions:

    1. Limiting options – Purchase illiquid investments to avoid the urge to sell investments when the market is falling.
    3. Avoidance – Avoid information about how the market or portfolio is performing to stick to a long-term investment strategy.
    4. Rules – Use the rules to help make better financial decisions, such as only spending out of income and never out of capital.
    5. Deadlines – Set your own financial deadlines aiming to save a certain amount of money by the end of the year.
    6. Cooling off – Wait a few days after making a big financial decision, before executing it.
    7. Delegation – Delegate your financial decisions with others, allow your investment advisor to manage your portfolio.
    8. Other people – Use the help of other people to reach their financial goals. Make some appointment with your financial advisor to make and execute a financial plan. Certainly, you don’t want all your money in just one kind of investment. So you can safely choose a single advisor or firm to handle a range of investments.

    The stock market’s tendency to produce large gains and losses. So there is no shortage of faulty advice and irrational decisions. 

    As an investor, the best thing you can do to pad your portfolio for the long term is to implement a rational investment strategy. The one you are comfortable with and willing to stick to. 

    If you are looking to make a big win by betting with your money, try the casino.

    You should be proud of your investment decisions in the long run. In that way, your portfolio will reflect the solidity of your actions.

    You would this: Bargain Hunting – The Holy Grail of Investing

    Risk Disclosure (read carefully!)

  • Forex Trading is Profitable. Right or wrong?

    Forex Trading is Profitable. Right or wrong?

    2 min read

    Is Forex Trading Profitable?

    Forex trading is profitable but the market isn’t endless, you have to know that.

    The size of your trade has an important impact on how you can bring a trade out.

    Don’t look at the percentage of what a so-called pro-trader does. People like to think in percentages way too much.

    Percentage of what?

    When you start, you can have someone who would be your ideal or paragon. But you always have to keep in mind that such trader is already experienced in trading.

    She or he does some things spontaneously, and you are the one who just stepped in on this scene. But if you’ve mastered some trading skills and have tested them well on some free demo account, you may have even one advantage.

    The experienced traders have more money, it is a blessing and a burden at the same time. But you can be more flexible to trade with high precision very close to how the market moves.

    What I want to say is, you should never underestimate a “small” position. Forex trading is profitable even in that situation.

    For the FX market, you can be small fish.  

    But that “small fish” can make a couple of hundred USD per pip. Is it good enough for you? Well, that’s why comparing percentages without comparing the actual pot is an unnecessary exercise. 
    Is Forex Trading Profitable? 1
    But it isn’t easy. Hard and smart work lies behind it. Of course, you have to involve a bit of luck to find the right stocks, right things while your motivation is still on the top. But when you make any success, you will see it is worth it.

    But you have to be dedicated to trading in order to be able to trade when markets move the most. If you live in a European time zone it is from the early morning to the afternoon. But if you live in some other part of this lovely planet I would recommend to your attention, one of my older posts.

    Some traders said: I’m trading short term on the 1-minute candlestick chart.

    Take this as a recommendation:

    Average holding time depends on what the markets offer you but it is rarely under 6 minutes and rarely over 20 minutes.

    Stay focused on reversal signals and have pay attention to good ones and fake-signals apart. Support/resistance areas play a role but you need to practice to be good at it.

    You have to treat trading as a profession or a business.

    Only in that way success will come.

    Why I’m saying this to you?

    Is Forex Trading Profitable? 2I have a friend. Forex trading has been an expensive venture for him, indeed. In his first 2 years of trading, he lost $30k. He almost went bankrupt because he was naive and greedy. His main problem was, he entered at the wrong time and exit at the wrong time. No matter what he did he was always on the wrong end. At that moment we couldn’t talk about how forex trading is profitable, right? This improved drastically when he found his own method. (And maybe this is the secret of any successful trader.) Now he has been profitable for over 15 months.

    Forex trading is profitable but not for everyone

    But I’ve seen a numerous amount of people lose everything in trading.
    Hundred and thousand times you should ask yourself:

    Why do I trade? To become rich? Is it a hobby?

    Do I love it or I hate it? Is forex trading harmful to me?

    Why I am forcing myself to all of this? Just for a chance to be a member of the profitable 5% club?

    Did you ever hear the saying: “If you don’t know who you are, the market is an expensive place to find out.”

    And the most important question is: Is trading really worth the effort invested?

    Trading attracts mostly because of the freedom it provides.


    Trading Forex isn’t a “get rich quick” method.

    With constant profits in order to make enough money not only to live but to build up a constant surplus.

    So, you can move on with your plans and plan your life. Maybe your focus on how much money you can make per year isn’t the best.

    You may think you can see better, you know better and you can believe in that. But that is a great paradox and tiny line.

    If you cross it, it can be the biggest tragedy. In every single moment, you have to take care of risk control.

    It doesn’t matter what you see or you think you know.

    Risk control! Double-check! Opened eyes! Use the excel.

    Sometimes, even the things you wrote before can be very helpful. Having some downloaded system is useful but money management is KEY to success.

    To gain knowledge of how to make a profit is much much more than what you can learn from a job in the corporate world.

    The knowledge has to be the goal.

    Yeah, I know. Time is money.

    Forex trading is profitable for me.

    Is it worth it? Yes!

    Should you continue trading? Yes!

    Should you continue with your studying? Yes!

    Should you continue looking for a job? Yes!

    Can you manage to do all of these things at the same time? It is up to You.

    The main factor for success is your permanent education and training. You have to believe in yourself and find what works for you.

    The only thing that brings you to your failures may be your ego.

    And if you aren’t ready to keep going after a series of losses, Forex probably isn’t for you.

    Risk Disclosure (read carefully!)

  • Investing in Cryptocurrency – The Pros and Cons

    Investing in Cryptocurrency – The Pros and Cons

    2 min read

    The Pros and Cons of Investing in Cryptocurrencies 2

    Investing in cryptocurrencies is generally a risky investment. Investing in cryptocurrency could be a good investment, or it could not. It depends on you and your attitude. In crypto’s early days there is no yes or no answer about the wisdom of investing in cryptocurrency. With this in mind, we will cover some pros and cons and give friendly advice. Remember, this isn’t professional advice, we don’t offer professional legal, investment, or tax advice.

    If you don’t just want to buy, sell, or invest in cryptocurrency. If you want to invest in cryptocurrency, you have several options.

    First comes first: You need to start investing in cryptocurrency with some flexibility. You have to be prepared to lose everything you invest in cryptocurrency. It probably won’t happen, but be careful. The least risky coins are the coins that are present the longest time and have the highest market cap and highest volume. Anything other than Bitcoin, Litecoin, or Ethereum is riskier. Bitcoin is the current top coin for resilience, market cap, and volume. Also the most expensive.

    There are several pros and cons to review before investing in cryptocurrency.

    CONS:

    The cryptocurrency market has been very volatile since its beginning. The price of Bitcoin can swing up or down hundreds of dollars in one day. We have already seen a few bubbles and busts in the past. There is a risk of the venture on a given coin even if cryptocurrency is prosperous. Even if cryptocurrency is a good long-term bet, we don’t know if any coin will be the one that sticks around. Even more true for the countless less popular coins with smaller market caps.

    The Pros and Cons of Investing in Cryptocurrencies 1Those with low-risk tolerance have a difficulty; they are inclined to getting weakness and pulling out at a loss while the market is fixing up or going down. An investor needs to be prepared to take a loss or sit on a loss for a while if the market goes down. That requires a certain type of mindset and expendable funds. There are some psychological factors to consider along with economic ones.

    The only way to trade cryptocurrency on the stock market is to buy GBTC (Grayscale Bitcoin Investment Trust), which trades at a premium. The simplest way to buy a cryptocurrency for a novice aside the stock market is via some company. They charge some fees for that, but the lowest fees are on the open exchanges of the internet. Between premiums and fees and finding a broker, all options for trading have costs and it isn’t easy to calculate.

    Spirit level of crypto investors is changeable. Like the Moon. Bad news in term of regulations can send crypto value to drown in one day. But the same news another day may have no effect. If you join some cryptocurrency group on social media, and you’ll note it goes from hot-to-cold with the weather. The market is a bit fussy, I think.

    PROS

    The cryptocurrency market is still young, and the most optimistic investors are predicting future prices, some of them claim that it can be for e.g. Bitcoin, $220,000 by 2020. Cryptocurrency is a very risky but potentially rewarding bet. More, if cryptocurrency is in a bubble, the trend could very well be toward cryptocurrency being an important medium of exchange and store of value in the future if the current price is lower than the highest price we will ever see. That makes it a good long-term bet. You can often buy high low and sell high. There is money to be made.

    The Pros and Cons of Investing in Cryptocurrencies 4
    Despite all its risks, crypto is possible the most exciting asset 21st century. It is decentralized, works on blockchain technology which is here-to-stay. You can find billions of motives about why everyone has to be excited about crypto. As much as reasons to be conservative in your investment.

    Don’t dump your whole saving into crypto, but don’t hesitate to put a small investment you are ready to lose, just to learn and have fun on your beginning. Later you will have the know-how.

    TIP

    If it is the bubble, then pop it!

    One of the reasons for taking extreme caution is the current potentially high price. If the price goes back down to 2015 levels, then the number of PROS will increase. The unknowns and high price and volatile market make it risky, but there are plenty of reasons to be excited despite all that especially long-term.

    Investing in cryptocurrencies is very risky, markets are volatile and the technologies are still quite young.

    But, they are still a great opportunity for anyone interested in investing.

    Treat them as you would any investment and do your own research.

    Step into this new world while is time.

    Risk Disclosure (read carefully!)

  • The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock marketWhat rules every investor should follow if want to be successful? Read to the end.

    By Guy Avtalyon

    Every field has golden rules, so this one has too.

    Fast money and easy earnings are mostly what young people want to succeed in the business world.
    They are attracted by exchanges, money is invested in shares.

    WOW!

    However, there are many curves, curvatures, spirals, and twists that, and if you don’t know how to avoid them, your trip to the stock market can be very short-lived.

    What are the golden rules for investing in the stock market, which should be known primarily to beginners in this business, but also to more experienced stock traders?

    Create a portfolio one of the golden rules

    You can do this in a simple way. There are many free portfolio managers on the Internet, so use some of them to make a free account.

    Create a fictitious portfolio in which you would potentially invest and monitor the situation for a while, a minimum of one month. This will give you the best insight into market volatility.

    Before you take the first step, the goal is to create a profitable fictitious portfolio as an investor on the stock market. This is really the golden rule.

    Among other Golden rules: Read business magazines 

    In order to successfully start investing in the stock market, you need to be aware of the world’s stock market. Also, what are the social events that affect the rise or fall of the price of shares?

    There are many respectable business magazines dealing with this topic (Forbes, The Economist, Kiplinger’s are some of the most famous ones).

    Follow the events in the global economy and finance and you will be able to swim more easily in the very turbulent waters of the stock market.

    Buy stock from a field you know well 

    Before investing money into something, you should understand the business the company is dealing with.

    The first stock you will buy on the stock market should be from the sector you understand and it is familiar to you.

    For example, if you know the banking sector, try to explore the market and find a bank whose stocks are good and worth investing.

    Never invest in the action itself, but in the company. This is one of the best golden rules I ever got. 

    Have realistic expectations

    There may be a problem if your financial goals are based on unrealistic presumption. Try to be realistic in your ambitions and goals. This will the most important golden rule for novices. 

    In this way, there are fewer chances to lose money or be disappointed in your stock market business.

    Do your own research one of the most important golden rules

    You will hear from people who are dealing with the stock exchange that they have bought some stocks. Just because the same was done by their friend or family member who understands this business.

    Accept everything with reserve. Before buying a stock, do research. If some stocks brought in earnings in the past doesn’t necessarily mean that this trend will continue.

    Always believe more to yourself than other people’s estimation.

    The stock exchange is NOT a money-making machine 

    This is one of the Golden rules. Most of those who want to participate stock market, have an unrealistic desire to double or triple investment in the short time frame.

    If you are one of them, then that’s not a job for you. For those who want to invest, 10 to 12% of the earnings for a long period is quite a good investment.

    You need to realize that you are just a small fish in a big lake and that your success depends on many factors. Some traders became really successful when they realized this golden rule. 

    Follow the clues and make conclusions.

    3 or 4 good stocks are enough 

    Don’t overplay is truly a golden rule. Especially because you are a beginner in this business. More than 10 stocks are a good portfolio, but for investment funds.

    It is true that they make more profit. But if you make a smart and wise decision you will earn enough money. Golden rules should be known to beginners in this business.

    Don’t try to predict the stock price

     Not even the biggest billionaires and owners of the largest multinational companies in the world are doing this.  No one is able to predict, at least for a longer period, several stock market cycles.

    Ability to guess the moment when the stock will have the highest value is still a myth. Even for those who have an insight into the business of some companies. Therefore, for successful business and investing in the stock market, you need to acquire certain knowledge and skills.

    According to many kinds of research, the risk of investing in the stock exchange is most often taken over by young people who have just finished college.

    But, like in every other business, the experience you get, will help you to be wiser in making decisions in the future. 

    That’s how it works!

  • What Is better: Trading or Investing and what are the differences?

    What Is better: Trading or Investing and what are the differences?

    2 min read

    Let us explain the differences between traders and investors, at first.

    Stock traders are individuals (or entities) engaged in the trading of equity securities, or the transfer of other financial assets.

    They work either for themselves or on behalf of someone else.

    They may operate as agents, hedgers, arbitrageurs, speculators, or investors.

    Stock investors are individuals (or entities) who use their own money to buy equity securities. The goal of the stock investor is to gain returns, which come in the form of income, interest, or appreciation in value also known as capital gains.

    DIFFERENCES BETWEEN TRADING AND INVESTING

    Investing and trading may often be classified together.

    But, they are both different ways of attempting to profit from the financial markets.

    The goal of making investments is to progressively increase wealth over a long period of time by using the buying and holding of a portfolio of stocks, mutual funds, bonds and other methods of investment.

    Trading involves short-term buying and selling of stock and commodities such as currency pairs and other instruments. The goal is earning profitable returns which outperform a traditional buy and hold investing.

    For example, while most investors may be satisfied with a 10% annual return, traders may seek to achieve this per month.

    Period of acting

    Return on investment and payback period seem to be the two most commonly used financial metrics for making sustainability investment.

    Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! The trader holds stocks until the short term high performance.

    On the other hand, investing is an approach that works on buy and holds a principle.

    Investors invest their money for some years, decades or for the even longer period. Short-term market fluctuations are irrelevant in the long-running investing.

    Growth of capital

    Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks.
    So we can say, trading is the skill of timing the market but investing is an art. 

    The real art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the market.

    Risk of both fields

    Both, trading and investing, include risk on your capital.

    But trading involves higher risk and higher potential returns. The price might go high or low in a short while.

    Investing takes a while to develop. It involves comparatively lower risk and lower returns in the short run. But might deliver higher returns by putting together interests and dividends if held for a longer period of time.

    Daily market cycles do not affect much on quality stock investments for a longer time.

    Essentially differences

    Trading is a one day match while investing is a championship.  

    Similarly, traders are skilled, technical individuals, they learn market trends to hit higher profits in the stipulated time. It is related to the psychology of the market.

    Investors, on the other hand, analyze the stocks they want to invest in. Investing also includes learning business fundamentals and commitment to stay invested for a longer-term.

    It is related to the philosophy that runs the business.

    Traders put money in a stock for a short-term,  buy and sell fast to hit the higher profits in the market. Missing the right time may lead to the loss.

    They look at the present performance to hit the higher price and book profits in the very short term.

    Investors keep themselves away from the trends and invest in value.

    They invest for a longer period of time keeping the attention of the stocks they hold. They wait till the stock reaches its potential.

    You are the one to decide is your goal  trading at a higher price making a smaller profit in a short time. Or holding/investing on and sell at much higher price in the long run is what you aim for.

    A key rule of trading is to only do so when you are certain that there is an upcoming future event which is predicted to drive the stock value of an organization or entity higher.

    When trading, there are certain strategies which must be put in place.

    Traders should take note of the news and use it to make an educated decision which will hopefully enable them to make a profit afterward. This shows the difference between trading as a short-term investment and investing as a long-term method of gaining wealth.

    When investing, the goal is to bank profits over the long term.

    With dips in value simply providing the opportunity to buy more of the commodity in question. Investing means sitting it out when the commodity rises in value as there will likely be more good news ahead for the company and more profits to be made.

    If you are new to the world of investing and trading, it’s important to know which you are going to choose.

    The imperative to increase your financial gain is what defines it.

    Knowledge of the subject is important. 

    If you are knowledgeable about the stock market but have little idea about how to trade Forex, for example, you will naturally head over to the stock market for your first investment.

    General advice: Don’t get investing and trading confused – it could seriously hurt your portfolio!

  • Trading Stocks Platform – How To Find The Best

    Trading Stocks Platform – How To Find The Best

    2 min read

    (Updated October 2021)


    The best trading stocks platform must be available from the beginning of the signup process.

    Trading stocks platform is simply software for trading, it’s a kind of online broker. It is very important for any investor. And the most powerful tool in your hands. Every trader has it’s own investment style of trading. An abundance of brokers’ offers allows individuals to choose what best fits their needs.

    If you’re an active trader looking to try your hand at beating the markets, you probably have a good idea of what you want from a brokerage: low costs, premium research, innovative strategy tools, and a rich with features trading platform.

    trading stocks platform

    This era of trading stocks platform makes the world as high-risk/high-reward investing accessible to the wide public. Profitable investing takes time and hard work. It also requires you to use the best trading stocks platform that fits your investing goals, educational needs, and learning style.
    If you are new investors, selecting the best trading stocks platform can make the difference between a great new income stream and an inevitable frustrating handover.

    You have to know one thing, there’s no sure-fire way to guarantee investment returns. But there is a way to set yourself up for success by selecting the right trading stocks platform that best suits you. I’ll try to show you all the important things you should be looking for in your ideal brokerage on your path to find the best online broker.

    For a starter, take a moment to focus on what is most important to you in a trading platform, before you start clicking on brokerage ads. You’ll be surprised!

    Recognize your needs when choosing a trading stocks platform.

    You must know them.

    If you are a novice, you may prioritize things such as basic educational resources, large glossaries. Also, you might prefer easy access to support services. Maybe the ability to have practice trades before you start playing with real money is more important to you.

    For example, an experienced investor, possibly someone who executed hundreds of trades already but is looking for a new trading stocks platform. Such will prioritize advanced charting capabilities, conditional order options, or the ability to trade derivatives, mutual funds, commodities, and fixed-income securities, as well as stocks.
    Trading Stocks Platform - How To Find
    And you have to be honest with yourself about where you are right now in your investing tour and where you want to go. Do you want to try your hand at day-trading but don’t know where and how to start? Maybe you like the idea of tailoring your portfolio, or you want to pay a professional to provide it done right?

    For now, I suggest you start with this crucial deliberation as a way to determine which of the brokerage features would be the most important to you.

    To help yourself to find and use the best trading stocks platform be honest when you are answering these questions.

    a) How much do you already know?
    b) What kind of trades will you want to execute?
    c) Are you an active or passive investor?
    d) What kind of help do you need?
    e) Define your goals

    Be brutally honest with yourself about how much time, energy, and effort you are willing to put into your investments. Your answers may change over time, no one can anticipate all their needs and goals for the rest of their life. Just start with where you are right now.

    Pay attention to several things while finding the best trading stocks platform



    * Does the brokerage website offers two-factor authentication
    * Do they clearly explain how they use encryption or “cookies” to protect your account information and how they work?
    * Try searching the web for reviews of the brokerage, using keywords like “insurance claim”, “fraud protection”, “customer support”, “chargebacks”, “easy withdrawal”
    * Will the company reimburse you for losses resulting from fraud? etc.

    And then test it!

    Every brokerage should have a decent description of what kinds of tools and resources it is trading stocks platform offers. But sometimes the best way to evaluate platform quality is to give it a test drive. For brokers that allow you to open an free or demo account. It might be worth the effort to go through the signup process just to access and test the trading platform.