Category / Investing

Investing

How To Create A Binary Options Trading Strategies To Profit From Simple Market Trends

If you have spent any time reading about financial trading then you will no doubt have come across references to the trend. The trend is the directional basis in which financial markets move and is considered to be one of the most important factors when identifying future market moves.

Analysis of the trend is used by all styles of traders.  It can however prove particularly powerful when combined with binary options trading methods. The ability to identify whether a market will move higher or lower when combined with the Call and Put digital contracts available in the world of digital options can make for a simple strategy from which the individual can earn high profits.

Trends basically refer to the dominant direction that the price of an asset has moved over time. This is driven by a strong momentum and demand from either buyers or sellers in the marketplace. It is commonly observed that once a trend is in place, it is more likely that it will continue than break down. In most trading approaches it is assumed to be better to always trading in the direction of the trend in order to gain the backing of the market. This not only lowers the potential risk, it also gives a greater chance of the opportunity proving successful.

When analysing an asset it is important to realise that trend can exist across all different time periods on the chart. While trending on higher time-frame charts will determine the overall direction that the price of an asset will move over time, many shorter term instances will also exist. These will be the result of price rallies and short term changes in sentiment towards the asset. What this means is that it is possible to trade both long and short term strategies using these signals.

As the trend signals the direction in which a market is most likely to move, it provides a power indicator which can be used to create basic binary option trading strategies. If the market has been moving higher, then a ‘Call’ option contract can be used to profit. Similarly if the price is heading downwards then the binary trader can make use of ‘Put’ contract to capture the move. When trading in this way the ‘Intra-day’ market trend should be the focus of the trader. However results can be improved by keeping a close watch on the wider market picture and dominant direction that the market is moving.

There are many technical indicators which can be used to identify the trend of the market. The most common of these is known as the ‘moving average.’ This indicator is plotted onto the chart and is able to calculate the  market direction by using a basic mathematical calculation. This takes into account the preceding daily price movement of the asset to provide a view of the average gain of the price. By configuring the parameter settings it is possible to find out the direction that the price has been moving over a set number of preceding days.

One way that is often used to capitalise on this movement is to find opportunities by waiting for a low time-frame moving average to cross one from a higher time frame. Once this happens it is taken as a signal to enter the market in the direction that the cross occurs. Essentially this provides a signal that the near term market direction is gaining increased momentum.

Trading with binary options brokers provides a modern and easy way in which to speculate on the price movement of assets. Unlike many methods of trading you only have to forecast a higher or lower movement in price to earn a high fixed return. For this reason they are particularly suited for use with strategies which can identify strong market momentum. By predicting whether the market will finish higher or lower, simple strategies for binary options can be created which exploit the use of the trend.

Guest Post provided by Phil Moore. Phil is a full time trader and investment contributor for the website BinaryOptionsProfits.net. You can visit the site now by going to http://www.binaryoptionsprofits.net.

Investing

Different Options for Loans That Financial Experts Suggest to Clients

Managing financial is the most critical thing, and we acknowledge this statement as a fact. So, career in the sector of finance is not at all easy. A lot of challenges are there, waiting for the people who have chosen the job of financial advisor. If you are passionate enough, you shall definitely enjoy these challenges. For a financial expert, it is absolutely important to be passionate about his job. You must love your job and you must be ready to face new challenges. Financial advisors face trouble, when it comes to suggesting the right kind of loan to clients.

Both individuals and organization need to opt for the loans for many reasons. In general, it can be stated that people opt for loan in order to deal with unexpected financial crunches. In many cases, people opt for loans, when it comes to purchasing an asset. For example, you may need to go for a loan if you are planning to have a brand new car or property. A business needs to opt for loans, when it plans to expend or buy new business assets. A professional financial expert should analyze needs and financial conditions of the clients before suggesting right type of loan.

Studying Client’s Credit History

The most important thing is studying credit history of the clients. If your client is thinking of opting for a loan, he should have good credit history. This means he should be punctual about paying the credit card bills on time or before the time. Making a habit of paying bills late will create bad reputation. As a result, it would be hard to find a suitable lender for that person. Moreover, bill payment on time will improve credit rating. This rating has been taken into consideration by banks when it comes to scrutinizing loan application of a person.

Loans for Good Credit

A financial advisor has limited service to provide to those, who already possess exceptional credit score or rating. Such persons can get loans from banks for personal reasons or business reasons without facing any hiccups. Some formalities are required to be maintained, and that would help to obtain the desired loan amount. Having good credit score will give you good sleep as well.  The rate of interest on repayment premiums shall be low as well as affordable. Thus, there should not be any hassles when it comes to repaying the loan with perfection.

Loans for bad Credit

Problems start appearing when a person has bad credit score and bank turns down loan application of such person. Financial advisors can provide different kinds of solutions to the clients in such cases. They can advice to go for the payday loans. Payday loans UK is an excellent option to get small amount personal loan without undergoing the hassles of credit checking. The application can be made online anytime. Applications also get approved within 24 hours usually.

Author bio

Trafford G. Marx has been as a loan recovering agent since a few years now. In this post he has shared some simple points for those who are planning to take a loan. He has suggested Payday loans UK to the readers owing to its quick approval procedure and easy application system.

Investing

A Brief Summary of the Dodd-Frank Act

The Dodd-Frank Act, formally the Dodd-Frank Wall Street Reform and Consumer Protection Act, is a federal law in the United States which became official statute on the 21st July 2010, when it was signed by President Barack Obama.  The impetus for the bill was the economic crisis of 2007 and 2008; in the wake of the financial trouble, the US government were keen to introduce new regulation, in an attempt to prevent such a repeat.

Dodd-Frank ushered in the most sweeping financial regulatory reform since the Great Depression in the 1930s, with nearly every part of the United States’ financial services industry facing changes due to the bill.  As with most financial regulatory legislation, Dodd-Frank has its critics and supporters.  Some argue that the law is not tight enough and, as such, will not be able to prevent another financial crisis. Others say it is too restrictive on financial institutions and will therefore restrict economic growth.

Dodd Frank

Image Source

Dodd Frank was part of reactionary US financial legislation sought to ensure that such a financial crisis would not reoccur.  The final bill that was signed into law was intended to ultimately protect consumers and the general public, by promoting stability in the financial markets.  The law improves accountability and transparency in the financial system, ends bailouts of “too big to fail” institutions, and protects against abusive financial services practices.

Watchdog

Dodd-Frank created the Consumer Financial Protection Bureau.  The Bureau is an independent watchdog group housed at the Federal Reserve.  It has the authority to ensure that consumers and the general public have access to clear and accurate information with regards to mortgages, credit cards and other financial products.  It also protects against hidden fees, abusive terms, and deceptive practices from institutions.  Such transparency is intended to end predatory lending and ensure that consumers will not find themselves in insurmountable debt.

Bailouts and Supervision

Another aspect of the regulation ends taxpayer funded bailouts.  Rigorous standards and supervision are established to protect consumers, investors, and businesses.  Individual institutions are no longer eligible to be propped up with bailouts.  The Federal Reserve can still provide support throughout the financial system as a whole, however, tough new capital and leverage requirements are instituted which means growth is restricted. Failed financial firms are now able to liquidate in a safe manner.

Other Features

Other features of Dodd-Frank also eliminate loopholes that allow risky and abusive practices to go unnoticed and unregulated.  Shareholders are now afforded an influence on executive pay and corporate affairs.  However, these votes are non-binding.  Stringent new rules on credit rating agencies, which create transparency, have been designed to protect investors and businesses.  A council has been created to identify and address systemic risks before reverent bodies are able to cause a threat to the stability of markets and economies.  Regulators are given strong oversight powers to aggressively pursue fraud, conflicts of interest and manipulation of financial systems, which are deemed to be at the expense of the American public.

In general, the reaction to Dodd-Frank is generally thought of as a win for consumers and consequently, a loss for banks and financial institutions.  The overall aim of the law is to hedge against the next financial crisis.  This will be the ultimate test for Dodd-Frank.  But one thing remains clear: the provisions of the law will (at least for now) protect consumers, increase accountability and the transparency of banks and financial institutions.

Sources: http://www.lseg.com/markets-products-and-services/post-trade-services/unavista/regulation/dodd-frank-swaps-confirmations-documentation-reconciliation-and-compression, http://www.sec.gov/spotlight/dodd-frank.shtml, http://www.cftc.gov/lawregulation/doddfrankact/index.htm

Investing

5 Reasons to Look at Fixed Term Savings

As the knowledge towards sound investment opportunities grow, more and more people are finding it hard to resist the pull of fixed term savings rates bank accounts; and why not? This investment asset carries a number of advantages over other forms of investment. If you are looking for the perfect blend of low risk-high reward bank instruments, it is hard to look past the value that fixed term bank savings accounts offer. 

Here are 5 reasons why one should pay attention to fixed term savings accounts: 

  1. Risk mitigation. Sure, it is also sexy to invest in assets like stocks, mutual funds, or binary options among others but it does not mean those assets will assure you of solid returns. In fact, if there is any important lesson that one should take note after the 2008 economic crisis, it is that safer investment choices are in vogue, unless until the economy has fully recovered. Fixed term savings accounts offer minimal risks in terms of investment without compromising your money’s potential to earn.
  2. Profit. Fixed term savings accounts offer earning potential of up to 5% per year while savings accounts barely crack 1% and higher. Investors looking to balance risk and profit should take a good long look at fixed term investments to see if there is any other option that provides just as much return without incurring bigger risks.
  3. Fixed Term investments preach fiscal responsibility. The fact that money is tied up in fixed term investments mean people are less compelled to go out to spend it. This is advantageous for people looking for a reason to save, and not spend.
  4. History. Fixed term savings investments are not new; hence, the system has been tested again and again by many investors. Who says you have to reinvent the wheel to earn? By selecting more proven investment methods, you are more likely to reap the rewards of a sound investment.
  5. Competitiveness. There are many banks that offer fixed term savings accounts and these banks tend to outdo each other in terms of the attractiveness of the offer. Of course, that can only mean good things for the investor. Find the best offers and you’ll put your money in a better position to succeed. 

Fixed term savings accounts are great ways to save money without embracing unnecessary risks. Take a good long look at the offers and pick the one that’s best for you. 

Investing

Acquisition and Sources of Real Estate Investing

Property investment is the involvement of management, purchase, rental, sale, or ownership of a property that can be used as profit. Property development is the improvement of a specific realty property as part of the strategy in the investment of real estate. This is generally considered as a real estate sub-specialty. Relative to the other investment kinds, real estate is a form of asset that has fixed liquidity.

Real estate also is also regarded to be capital intensive and is highly dependent on cash flow. These factors must be well managed and understood otherwise the investor gives himself risks. One of the primary causes for investment to fail in working with real estate happens because the investor experiences a zero cashflow for a long time wherein the amount can’t be sustained, this will result to a forced reselling of the property gone into insolvency.

Acquisition and sources

Acquiring and searching for sources of real estate isn’t hard even though real estate markets in several countries aren’t that efficient or organized when compared with other having instruments of liquid investment. Individual properties are not interchangeable and are unique by themselves. This presents one big challenge to investors who wish to evaluate investments and price opportunities. This is one reason why when looking for properties wherein one can invest in, it involves competition and substantial effort among the investors to be able to purchase properties.
This will be variable with regards to the availability of knowledge. This gives a lot of opportunities for the investors to acquire properties at cheaper prices but poses an increased risk in terms of transaction. Investors of real estate usually use a number of appraisal methods to be able to figure out the value of the property before the purchase.
Sources of properties for investment include:
• Investment Property Companies
• Agents of real estate
• Market listings
• Private sales
• Public auction
• Wholesalers
As soon as a property fit for investment is found, the investor will negotiate a sale price and terms with the one selling the property, then after the business talk, the contract for sale will be executed. In order to be assisted in the process of acquisition, the investors can sometimes employ attorneys or agents having the knowledge about real estate. This is due to the deal that acquire a real estate posses a lot of complexes which might lead to a very expensive deal if executed improperly.

During property acquisition, the investor makes an offer to buy the reserve of the investor’s right to complete their transaction upon satisfactorily negotiating with the latter. This reservation money can be refunded or not and is a sign for the investor’s willingness and seriousness to purchase the property.

The terms for the offer in investing in property include several contingencies that allow the investor sufficient time to complete diligence and acquire financing before the final purchase. Throughout the contingency period, the one investing usually reserve the right to abolish the offer with no attached penalties and accomplish refund on money deposits. Once the contingencies expired, rescinding usually requires the forfeit of cash deposits and may sometimes leave penalties as well.

That is why, to prevent such penalties, the investor must have a great deal of understanding and knowledge on the venture that he has to overcome. Legal advises from people having investing backgrounds will greatly help to lessen the risk.