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Investing

The Will Smith Index: 4 Reasons Why You’re Losing Money By Ignoring It

Celebrities are on pedestals in every industry. You want that dress, that car, that new makeup she’s endorsing, that soda he’s drinking in that funny commercial. It’s the celebrity selling point, the Will Smith Index: if they endorse it, you should invest in it.

The Midas Touch

Midas Touch

Image via Flickr by missmareck

Look at Will Smith. He’s one of the biggest stars in the world. He can’t fail; even when he makes a bad choice, such as making Wild Wild West instead of The Matrix, he keeps people talking. He’s planned his career every step of the way, from creating clean raps to tackling TV to becoming one of the hottest actors ever. His movies routinely gross millions and he is a billionaire. Every A-list actor has something in common with Smith at the moment: whatever they touch turns to gold.

If Will Smith appeared on TV tomorrow endorsing a car that runs on Pepsi, everyone in the world would run out to buy both the car and as many cases of Pepsi as possible. If Angelina Jolie, his female counterpart in terms of talent and top billing, strutted the red carpet wearing mom jeans, women would break their necks to buy a pair—or ten. If a celebrity is popular and pleases the public, they make no wrong choices. Everyone wants what they have.

People Want to Become Celebrities

Regular people long to become like their favorite celebrities. They see fame, riches, the ability to travel anywhere and buy anything. They want that. They see plastic surgeons asking for Angelina’s lips and Scarlet Johansson’s cheekbones. When George Clooney premiered Caesar bangs, guys everywhere asked for the same look.

If Bruce Willis steps up for a brand of beer, the stock goes up. When Drew Barrymore says she loves CoverGirl, stores sell out of their cosmetics. In an effort to become more like their favorite celebrities, the public believes what they’re selling. The trick is this: rather than losing money by buying a celebrity endorsed product in bulk, start investing in that company. If Jennifer Lawrence, the new It-Girl, comes out for Doritos, don’t buy the chips, buy the stock.

Celebrities Inspire Big Emotions

The biggest actors and singers are popular for many reasons, but it mainly comes down to what they inspire. They make people feel things—happiness, sadness, anger, desire. Will Smith makes people happy. Angelina Jolie makes people feel sexy and smoldering. Ryan Gosling makes them feel romanced. Financial investors can and should prey on those emotions, because what do people do when they’re emotional? They buy things. Look for tips from a Fisher Investment Forbes Contributor and it instantly becomes clear: the more emotional a person is, the more likely they are to spend.

Influential Stars Influence the People

The biggest reason to take advantage of the Will Smith Index is because he influences people. Influential celebrities influence their fans. When a celebrity endorses a product, the fans buy. If the star makes it look believable, fans buy even more. Invest in those stocks and you’ll make more too. You’ll have to know how long to stay in before you unload what you have, but take advantage of that sweet spot and the money is yours.

Financial investors and planners need to make the most of star power. Once they do, then in theory, they become star makers themselves.

Investing

Forex: the Trading Option That’s Taken the World by Storm

Forex or foreign exchange is the process of buying and selling currency. The simplest way to think of forex (or FX as it is sometimes known) is to think of a travel agent. When you go on holiday you buy the currency of the country you’re going to and sell the currency of the country you’re in. Essentially, you’re trading currency and this is very similar to forex trading.

What is Forex?

The forex market is one of the most liquid financial markets in the world and the daily volume of trade is around $4 trillion. This is because currencies have to be traded constantly in order for business to be conducted between countries. There’s no central forex location due to the global nature of the markets and its size means that it cannot be influenced by a single person or company. Realistically, it can only be shaped by world events.

Buying, Selling and Exchange Rates

Forex trading involves the simultaneous buying of one currency and the selling of another. Each transaction has to happen in a pair and each currency has an abbreviation e.g. EUR for the euro. The ability to trade these currencies stems from the fact that the value of both currencies in the pair is constantly changing.

In forex, any exchange rate between currency pairs are labelled as the bid price and the ask price. The difference between these two prices is known as ‘the spread’ and this is how your forex broker will make its money. As with any business, prices will vary between brokers, so shop around to make sure that you get the best deal.

Points and Pips

In order to turn a profit, you have to know exactly how spreads are measured. So, let’s look at an example:

If USD/EUR has a bid price of 1.400 and an ask price of 1.403 then the spread is three points or, as they’re known in the world of forex volume indicators, three ‘pips’. A ‘pip’ is the smallest denomination that a currency can move by and this is the same for all currencies the world over.

How Often Can You Trade?

Due to the fact that the forex market is global and doesn’t have a central base, you can trade whenever you want from anywhere in the world. The forex market does not open at weekends, however, and this is the only time that you cannot place a bet. Just think of it being open 24 hours a day, 5 days a week. This means that you can trade at practically any time you want.

So, Why Invest in Forex?

If you regularly keep up with the news and follow the latest financial announcements then you have the opportunity to make a profit from forex. There’s no experience required and you can start from scratch whenever. Try watching some educational videos on trading basics to learn more and, if you think that forex is right for you, find yourself a broker and start investing.

Investing

A Warning About Buying Penny Stocks

Penny stocks are, as the name suggests, stocks that trade for a few pennies. Technically, a penny stock is any stock whose price is less than $5, but it is usually used for stocks that are a few cents or a little more than a dollar. No matter the classification, penny stocks are cheap and some people find them to be very profitable. They carry higher risk than normal stocks because if the stock of the company is faring very poorly, chances are the company might just fail or never really recover. On the other hand, if it does recover, then the profits can be astronomical. This is what a lot of investors find attractive.

Before you start investing in penny stocks, you should understand the risks. True, you might not make as much with a Google or Microsoft stock, but you are sure these companies are not going to fail tomorrow.

The first thing to remember in penny stocks is that it is very speculative. The price of penny stocks can be inflated from pure speculation because it is easy to do so. It is a common strategy used by investors – they find a cheap penny stock and buy it at a low price. Through the internet, it is easy to spread the word that this is a great stock. A number of people keep buying and the stock keeps growing in value. The initial speculators simply sell off and all the other investors are left with inflated price of a stock that is essentially worthless. You should always avoid buying penny stocks at their speculative peak. This is why, in trading penny stocks, timing is very important.

Because speculation easily drives up the prices, you will find a lot of free or paid information on the internet. Every so called expert is out there shelling out his wisdom and showing you a foolproof and guaranteed way to make money. Just remember that all of it is just not true. Penny stocks are like any other stock in that the price cannot be predicted. On the other hand, since their price can be manipulated, it is good to play safe. Do not buy just out of speculation. Research the company and invest wisely. The traditional rules of investing hold – invest if you think the company is solid and can pull it off despite difficulties. If you can spot such penny stocks, you can invest well in them.

That being said, not all stock picks are bad. If you understand how to use them and not buy simply from these picks blindly, you can make good use of them. You can, for example, research the companies that are mentioned in the stock picks. There are several free and paid services related to penny auctions. Before you invest your money in stock tips, make sure it is worth the money. There are a lot of scams out there on the internet so it can be hard to find genuine and legitimate stock tips. Make sure the person has a proven portfolio and experience in trading penny stocks.

I’m not an expert on stocks. Do not listen to me. You will lose all of your money.

Investing

Binary Options: Money saved through lesser liquidity requirements

Except for a job, doing any business or investment venture requires that you maintain working capital. In a job you don’t have to set up a supply chain, pressure debtors to pay full and quick, or think of delaying tactics when paying creditors. However, when you are doing any business, you need to maintain cash or bank to continuously fund running core operations until a profit is attained. Insufficient funds just halt to a grinding stop any business.

In the same manner as any business, trading derivatives also requires maintenance of “working capital”. This is particularly the case in trading regular options. Whenever a trade starts to go bad, you have to make good the margin calls to avoid closure of your position in a loss. Even so, you never know for how long or deep the loss position will go on. And until you find an amicable position, you need to keep funds at the ready. In regular options trading, you decide at the inception of any trading account the leverage you wish to use. The higher leverage you use, the greater will be your funding requirements in case of an ongoing loss.

Trading binary options would also require one to keep his funds at the ready. However, the requirement is never as intensive as it is in regular options trading. You do not have to worry about margin funding once you run a loss; when you run a loss, it’s a loss. You do not have to maintain liquidity for margin funding. In this aspect, binary options save you money inherently. For example, unlike regular options trading, if trades get deeply out of the money, traders borrow from the broker or banks at very high interest rates to remain liquid.

So what exactly do you need the working capital fund in binary trading? The answer is, to make more trades. You have to remain liquid enough to make trades whenever you see the “technicals” on your interface blinking an opportunity. If a 10 minute binary option leads you to a loss, it does not matter. If the loss is a one way slide, make another trade with the funds available and may be use a shorter trade time frame. This way you can always recover your losses quickly and save your money.

Consider a situation in regular options trading. You make a loss by big margin, that leads to a margin call. You have no other way but to close you position with a higher amount of loss then your original investment. You have to start over again to recover all those losses, “capital plus what you lost in margin call”. Now if this was a binary options trade, your position would have expired in a short period leaving you a loss of your invested capital. However, you minimize your loss and save money quicker, by making another trade considering the market slide; there is no requirement to recover “capital plus loss in margin call”.

Therefore, it is comfortably proved that operating a binary options trading portfolio, practically requires minimum liquidity maintenance, and hence save you quite a lot of money.

Investing

Investing in Gold by Collecting Gold Coins

Have you ever considered buying coins as a hobby or for investment purposes? If you haven’t, then you should start doing that now. Today, our bank and stock trading accounts are present online. Moreover, most of our purchases happen electronically. Nowadays, we hardly get to see our money as a tangible object. For this reason, buying and investing in physical or solid gold such as gold bars and coins gives you an extreme sense of satisfaction. So, how can you buy the aforementioned-gold and use it for investment purposes? Let’s find out.

Why Invest in Physical Gold?

One of the few investments that you can physically store, gold is able to preserve or increase its value over time. So, you can investment in gold by simply buying it. For investment purpose, you can buy physical gold such as gold bars or coins. Buying and investing in physical gold such as gold coins is a sensible thing to do due to the following reasons:

  • When other investments decline, gold tends to go up
  • Gold provides a defensive wall against inflation
  • Until you sell the it, you don’t have to pay tax on the gold you hold
  • If you want, you can keep your gold assets/investments a secret
  • You can use the physical gold owned by you buy and sell in case there’s massive currency devaluation or other similar adverse financial situations

The astounding increase in gold and silver prices has led many people to buy platinum, gold and silver coins. You can buy these investment instruments at a fair market prices form a reputed coin dealer. However, you should thoroughly research the dealers before buying from them as there are many fraudsters looking to sell you the coin for much more than it’s actually- worth.

Before you buy the coin from any dealer, find out as much about the dealer as you possibly can. To ensure you aren’t paying ‘more’ for the coin, find out how the price of the coin offered by dealer compares to the price to the coin offered elsewhere.

How to Make an Informed Decision

When buying physical gold, it is important to ensure that you’re purchasing the gold at a fair market price. By doing this, you’ll brighten your chances of making a profit on the gold in the future. Now, to make an informed purchase, you need to consider three crucial factors. The first is the actual cost per ounce of the coin, the second is the timely delivery of the metal and the third is the collector’s value of the coin versus the bullion value. By considering the aforementioned-factors, you’ll be able to make an informed purchased which in turn will help you make a profit on your gold investment in the future.

Collecting coins made from gold is a good way to invest in gold. Using the aforementioned-information, you can buy the coins in a way that allows you make a profit from your gold investment in the future.