Category / Investing

Investing

Is Investing In Precious Metals A Rewarding Investment?

Saving a few bucks out of the hard-earned money and investing it for future returns’ sake is every earner’s dream. There is a host of popular investment options for investors such as real estate, stock shares, and mutual funds. Similarly, there is a significant fraction of people who like to invest in strong performing global currencies. Aside from that, investing in precious metals too is considered as a good way to generate significant returns on your savings from a long-term perspective.

Gold, silver, and platinum are the most sought-after popular options when it comes to investing in precious metals. The gold and silver prices for 2017 are likely to maintain precious metals as therelatively less-risky option as compared to other areas of investment. This is because they are less prone to suffer the consequences of the economic market decline and their prices tend to hike, even when markets and oil prices are crashing and the value of leading currencies is falling due to economic recessions, as observed in the economic recession of 2008.

Modes of Investment

Generally, there are two methods of investing in precious metals. The investment can either be made in the form of jewellery or coins or in the form of Exchange Traded Funds (ETFs). ETFs are special stocks whose prices are determined as per the current value of the metal. ETFs are similar and equal to investment in the form of metallic coins or jewellery in terms of returns and benefits.

The Pros of Investment

Precious metals are considered as a good investment since their price trends are generally upward inclined. Even if certain factors such as increasing interest rates or the price of US dollar casts an adverse impact upon the price of gold, silver or platinum, the pricing patterns of these metals have a great tendency to absorb the shock and resume their upward inclination.

Precious metals are a physical commodity, unlike stock shares which are an abstract paper investment. This provides the investor an enhanced sense of security. Furthermore, these precious metals are limited commodities and despite their consistent production through mining, neither will they ever be available in abundance in the market and nor will they be generally affordable for everyone. This eventually implies that these metals will retain their value and preciousness, and their prices will incessantly increase over time.

The Cons of Investment

Aside from the multiple plus points that make precious metals a promising investment choice for investors, the investment comes with certain downsides attached to it. The prices of gold, silver, and platinum are determined on a daily basis. These price trends are extremely volatile in short-term perspectives, and the fluctuation in prices may reach up or fall down by as much as up to 50% in a single year, as observed in the recent decades.

In a nutshell, investing in gold, silver or platinum can be a wise decision provided you do it with some prior research. Before making the investment, it is essential that you get some expert advice about the market trends and forecasts to get a realistic insight into the efficacy of investment and the market drivers that might affect the value of these metals.

Investing

How To Know When You’re Ready To Invest

Stock Market

When I was about 20, I decided to take a trip into the world of investing. I knew a little about it after researching investing tips and such on the internet. I ended up opening a Sharebuilder account and purchasing some stock with my tax return. After a few months I became low on cash and wasn’t financially prepared with a budget or emergency fund. I ended up selling the stock and put up my investing shoes. During that trip the stock actually lost money and I also had to pay a fee to sell it. As you can tell I wasn’t prepared to invest at all.

Do you have a budget?

I went the wrong way on the financial railroad. I should have first set up a budget to get my spending straight. I was definitely not spending my money on what I should have been and didn’t have any money to save at the end of the month. Now that I have a budget set up to follow and I’m not spending frivolously, I’m one step closer to be ready to invest again.

Do you have an emergency fund?

When I became low on money I had no place I could pull money from other than my investment account. What I should have had was an emergency fund. If I had just $1000 in a savings account I would not have had to sell my stocks.  Having a cushion to keep you from selling stock to survive is important. Now that I have that available to me I’m about ready to invest again.

Do you have any consumer debt?

At the time I didn’t have any credit card debt so I didn’t have to worry about this. But if you have any consumer debt it’s much more important to pay down than to invest.

Now it’s time

Once all of that is taken care of you can start learning to invest. Research on the internet the different types of stocks and once you feel comfortable that you know what you’re doing then open up an invest account and start investing.

The fees to invest can get high so if you don’t have much money to set aside like me, you can put a little bit of money into a savings account every month and in a couple of months make a stock purchase. That way the fees don’t take as much out of your investment as if you were to purchase stock every month.

If you’re interested in learning the stock market, check out my eBook Your Guide To Investing

Have you had any investment mistakes you’ve learned from?

Investing

Binary brokers – Why you should know about them

Binary option trading has become one of the most sought after forms of trade in the financial markets. With a wide array of assets to trade with and a number of options as far as expiration time and date is concerned, you can expect to earn handsome profits from it. Many traders invest a lot of money in this trade form and it won’t be wrong to say that they have earned even a fortune from binary option trading.

Since  you are investing your hard earned cash, it is important you know how the trade works and what you can do to maximize your returns from the trade or rather improve your ROI or Return on Investment. So, you can refer to the online educational resources that promise to educate you by the time you are ready to take the plunge and trade in real time. The fact that many trading platforms are offering demo accounts has also made it easier for traders to get good returns from the trade. Amidst the hullabaloo, there is one aspect that we certainly cannot ignore and that is the role of the binary option brokers.

Binary brokers in the financial market

You will come across several brokers in the binary market. While some have been in the market since years, others have just started off and trying to carve out a niche for themselves. Whatever be the case, it is certain that you cannot do without one. As such, you ought to stay abreast with the latest developments that are taking place in the world of binary brokers like, which new broker has started operating in the market, the services and products that the existing brokers offer, the fees they charge for using their trading platform, and the bonuses and payouts that they shell out for traders. And the only way you can do so is by visiting different websites that will offer all this information in the same website. For instance, one such website that will surely meet your requirement is topbinaries.com. So, if you are looking for more information on brokers, you can read more on Topbinaries.com.

What to expect at Topbinaries.com

When you browse through this website to read more on the brokers, you will be able to know the following about the trading platforms. Check these out.

  • First and foremost the names of the trading platforms
  • How each binary broker differs from the other in terms of services and products?
  • The types of assets that you can select from if you are signing up with a broker or trading platform
  • Whether or not the broker is offering the provision of practicing with demo accounts
  • The minimum amount of money required to trade on the platform
  • Types of expiration time and dates on offer for clients
  • Whether or not a particular broker deals with US traders
  • And if you want to know more about the particular trading platform, you can as well visit their official website. All you have to do is just click on the “Visit Website” button and you will be directed straight to the individual official websites of the binary brokers. 
Investing

How Penny Stocks Can Mean Big Profits

In the traditional investing world, penny stocks are looked upon with disdain. The pink sheets or OTC stocks, names thrown around with derision because of how penny stocks have always been looked at. Smaller cap companies were listed on actually pink-colored sheets back in the day and old school Wall Streeters looked the sheets and over-the-counter stocks as beneath them. Because of that, though, they have always had kind of an appeal for outsiders and mavericks.

Which is a great for day traders. Those labels fit day traders perfectly. Day traders by nature go against the grain and they are always searching for outliers. And volatility. Which you can get a ton of when you are trading penny stocks. Penny stocks are notorious for their volatility. The price goes up and down very often, due to fluctuations that can be discerned into a pattern. If you spend enough time looking at the screens.

Screen time is very, very important when you are trying to learn how to become a day trader. In the old days, logging screen time as a day trader meant putting some cold, hard cash into a brokerage account and trading it. No classes, no practice, no safety net. Just real, actual risk for your nest egg. Day traders in the late 1990s and early 2000s put their money on the line, took their lumps and learned on the job. Penny stocks were a way to make money for them, but they had lose money on penny stocks first, in order to find out what not to do.

That does not apply anymore. Today, you can use a day trading education site like Warrior Trading to get out into the world of day trading without actually risking money. You can take the online classes to understand strategies and techniques for finding the best penny stocks to trade. Then you can hang out in the chat room in order to understand how traders actually do it and talk about it on a day-to-day basis. And, best of all, you can spend time paper trading, which means getting into a simulated trading environment and trading virtual currency at the speed of the real market.

But before you do all that you want to be able to find penny stocks that are ripe for big gains. First off, what is a penny stock. It does not actually cost pennies. Penny stocks are generally thought of as companies that trade between $2 and $10 per share. That share price range can cover a whole range of companies, from fintech and biotech to mining concerns and low-level media companies. The range of business is huge. But the good thing is, you do not have to be an expert in those industries in order to trade the stocks. You just need to be able to look for patterns and jump on the trades early and ride them to the right result.

Profit/loss ratio is important and so is overall risk management. You can’t be right on every single trade, so you need to be prepared to be wrong about 40% of the time. Just try to make the profits at least double the losses so that the 60% success rate will leave you in the black.

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, 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.