fbpx

How An Investor Could Get Through Corona Virus Markets

Ok, so Corona virus has hit us hard in so many places, and it has certainly made the investment market very wobbly. If you’re someone who has investments in the markets and are being affected by what is going on at the moment it can seem like a bleak, uncertain and unnerving time. But, what exactly are you supposed to do to get through this difficult time?

How An Investor Could Get Through Corona-Virus Markets - computer screen stock market image
Photo by Lorenzo from Pexels

Let’s have a look at some of the thing you can do during this uncertain time: 

Don’t Do Anything

So, the value of your current portfolio has already declined. One option you have is to do nothing, if you sell now you are converting your paper losses into real ones. 

Stop Constantly Checking 

We all know that times are bad for investors at the moment, and constantly checking the value of your portfolio isn’t going to change that. Turn off your notifications, it’s probably already too late for you to change anything now. You might make a bad situation even worst if you keep looking, you might feel forced to sell when you shouldn’t from nerves and anxiety. 

Stick With Your Plan 

If you already have an investment plan in place where you use tools like MetaTtrader 4 for mac, stick with it. Try to keep investing as you normally would. For example if you have money that goes into your retirement plan every month or two weeks continue to do that. 

Remember To Stay Calm

You need to remind yourself to think like an investor, just because time are uncertain at the moment doesn’t mean you should jump if the market jumps or falls dramatically. Especially if it’s happening over a day or the course of a week. You need to think rationally and leave your emotions behind. It’s much better for you to sit back and ride the storm, wait until everything calms down before you make any significant decisions. Remember you can never pick the market bottom or turnaround and just jump in. You need to fight the impulse of thinking this is good. 

If You Feel Like You Have To Do Something 

If you get the feeling you really, really need to do something, try to use this as a learning moment. If you keep hold of individual stocks, you can take the opportunity to review those holdings and review what could have happened with them. 

This may all fall on deaf ears, especially for those who want to use this crash as an opportunity to buy low and sell high. Using this time as the buy-low opportunity. If you absolutely have to buy in the current market make sure it is in a rational and disciplined manner, think about how much you can risk losing as this is only the beginning and things could get worst before they get better

Do you have any other tips that you could share in the comments below?

Grow your Funds with these Tips

Money makes the world go round, or so we are told. Unfortunately, not having enough money can certainly be an uncomfortable place to be. It puts a strain on your life and relationships. Everything becomes about money, it is all you can think about. This is a sad fact of the world we live in. A lot of what we do depends on money, where we go, shop, who we are friends with. It really does seep into almost every facet of life. However, there are ways you can make the money you have work better for you. It’s not all doom and gloom. Okay so here are some tips to help you grow your money and have a better future:

Grow your Funds with these Tips - The Financial Fairy Tales blog image of money growing in a jar
Source Pixabay

Acceptance

The first thing you need to do above everything else is accept where you are in life at the moment. You cannot go about living a champagne lifestyle on ginger beer money. It is unsustainable. The truth of the matter is, it does not actually matter what you earn, it matters what you do with it. If you earn $15000 a year and save $100 a month, you are better off than the person who earns $100,000 a year but spends $120,000, meaning they have a considerable debt. When the next financial crisis happens, who is going to be better off? However, the only way to save is to live within your means. So, be honest with yourself, what can you buy? What should you buy? Who cares where you got that coat from anyway? If friends are judging you because you haven’t got branded clothes, are they really your friends? Make changes to how you shop with the intention of saving something every month.

Stocks and shares

Before you look to make any sort of investment, you need to do a bit of research. Perhaps, have a conversation with a financial expert, or a few experts to gain as much knowledge as possible. Read as much as you can online, learn as much information as you can before you look to put your savings into any sort of investment. Even the most sturdy stocks are not without risk. The whole reason people make money on the stock exchange is because it is marred with risk. However, there are ways to mitigate the risk and research is one. You also need to choose what type of investment you want to make. Long term or short term. High-risk, or low risk. Think about dividends and what sort of returns you can get in that aspect. Maybe you are inspired to invest based on ethics. Whatever you end up doing, remember that you need to diversify. Never put all your money into one type of stock.

Spread-betting

If you have not heard of financial spread-betting, you may be missing out. This is a form of investment which is done using the stock market. However, you do not buy stocks. What you do is place a bet on the likelihood of a particular share price rising or falling. Instead of a straight-up bet, it is more informed as you are using your knowledge of the stock market to mitigate the risk involved. There is a lot of money to be made in this sort of thing, just as there is potential in making money by searching for the latest casino offers

Start a side hustle

Another way to maximise the money you have is to start a business on the side, while keeping that full-time regular job. Think about what you would like to do and maybe it could be a little money earner. There are so many avenues you could go down. If you are one for bargain hunting, perhaps you could open up something on eBay or Amazon and start doing it semi-professionally. What is stopping you? If you have a passion and know a lot about something, you could make money selling your knowledge. Perhaps you could write blogs on the side, or turn your make-up skills into a vocation. When you start thinking down the entrepreneurial road, the world opens up, and there are many opportunities. The added bonus with doing something like this is the feel-good sense you get from it. You have created something on your own for yourself, and no one will ever be able to take that away from you. And if this side hustle kicks off, you may end up doing what you love full time and being your own boss. Life is what you make of it, and sometimes it is through struggle that we achieve. 

8 Reliable Ways to Predict Movement in the Forex Market

The ability to skilfully predict changes in the forex market can be the difference between a trader making profit and losses. To survive and thrive in the forex market, it’s important to grasp the factors that cause changes in the price value of currencies. These eight factors will help you forecast any changes in the forex market, allowing you to gain an edge in the trade.

8 Reliable Ways to Predict Movement in the Forex Market - market screen image
Pexels

The Consumer Price Index (CPI)

This is the measure of the prices of consumer products and services, such as food, transportation, automobiles, and healthcare. The measure helps a country keep a leash on prices by indicating when prices are rising (inflation) and when they are falling (deflation).

As a forex trader, you should keep updated with current inflation rates so as to accurately predict market movements. When inflation rates are stable, then you know you can go ahead and trade that currency pair. However, with high inflation rates, trading in that country’s currency will lead to losses.

Trade and Capital Flows

With forex trade being a global industry, the capital or trade flows in and out of a country can increase or decrease its currency value. Before predicting a currency’s performance, check whether its country is heavily dependent on exports, because in the event the exports drop, the currency will fall.

Capital flow is the money investors inject in the country. A currency value is hurt if investors flee from a country, for instance, due to political upheavals, lack of political goodwill, etc. It is thus an important factor when pondering how to predict forex markets.

Economic Growth

8 Reliable Ways to Predict Movement in the Forex Market - stormy seas image - analyse the markets image
Photo by Lukas from Pexels

The performance of a country’s economy has an impact on its currency. Generally, a stronger economy creates the environment for a stronger currency. This is because; the higher the economic growth, the more opportunities to invest and conduct business in the country. This increases the demand for the local currency, lifting its value.

Interest Rates

Just like with economic growth, the more the interest rates of a country increase, the more its currency becomes stronger. This is because higher interest rates attract investors to save their money in bonds, stocks and savings accounts, causing an increase in demand for the local currency.

Geopolitics

Any disturbance of the political scene in a country causes a shake-up in the forex market. Since a currency is representative of a country, government politics and global relations will often determine its stability or its fall in value.

Mergers and Acquisitions

This factor is useful when predicting the short-term movements in forex trading. When a foreign country firm purchases or consolidates with a company in a particular country, it causes an economic ripple on the local country, causing a change in currency value. Any savvy forex trader will keep an eye open for this sort of movement and either lean in to capitalize on it or avoid investing, depending on the economic effect the move causes.

Natural Disasters

8 Reliable Ways to Predict Movement in the Forex Market - stormy seas image
Photo by GEORGE DESIPRIS from Pexels

Catastrophic natural events on a country, e.g. earthquakes, hurricanes and floods usually impact a country’s currency, and not in a positive way. The aftermath of such events, from national apprehension to damaged infrastructure – which is the backbone of any country’s economy, to loss of life, causes a currency to depreciate.

Wars

Much like natural disasters, war can have a devastating impact on a country’s economy. Apart from the destruction of infrastructure, wars can devalue a country’s currency value by the ripple effect of the massive rebuilding efforts – which cost massive amounts of money. This is because reconstruction efforts require capital obtained from very low-interest rates, diminishing the value of the local currency.

Forex traders should be on top of any such development so as to be able to predict the direction of forex movement in the country. If a widespread war occurs in a country whose currency is part of your currency pair, then you’ll know to hold out until the economy stabilizes.  

Summary

Forex traders have information at their disposal to assist them more than ever before. Taking calculated risks is the key to making maximum profit in the forex industry, and that starts with watching out for events that may rock their currency pair’s exchange rates. This information will enable you to strategize even better; by having an accurate idea of when to enter or exit the market.

Your Checklist: 5 Brilliant Investment Tips That Will Generate You Millions

In today’s modern society where debt is national and public debt is higher than it’s ever been, and no matter how much some of us don’t like it, money is the tool for achieving freedom and allows us to do what we want, it’s no wonder so many have their eyes set on the 1-million-dollar milestone.

Investment tips - compass image

Having this amount of money in your bank account will typically mean you’ve reached a level of financial security and you can focus on the more positive aspects of life. One of the best ways to do this is to invest your
money now and get the return in the future, but you’re probably wondering how to do this.

While there are plenty of ways to invest your money, today we’re going to explore the five most brilliant investment tips you need to know in order to hit seven digits in your bank account.

#1 – Don’t Worry About Small Losses

It’s easy to get caught up in the trap of checking your investments every second of every day. However, this a sure-fire way to caught up and disappointed with your everyday losses, which are to be expected when you’re on an investment plan.

This can then cause you to make rash decisions that are going to leave you worse off in the long-term. Instead, remember to play the long game and remember that small losses are expected on your way to large wealth.

#2 – Avoid Penny Stocks

The common problem with investment is the temptation to invest your hard-earned money into penny stocks. After all, surely there’s less to lose over the long-term? However, this just a misconception because even if your $10 stock plunges to zero, mathematically, you’ve still lost 100% of your original investment.

This means the risk is just the same, but you’re not opening yourself up to the opportunity of earning more profit back on your original funds. Penny stocks also tend to be less regulated than higher earning stocks.

#3 – Don’t Chase the Highest Tips

During your time in the investment industry, you’re going to be presented with ‘tips’, or ‘hot tips’ that are going to try to persuade you into buying into certain stocks or shares for maximum, lucrative returns.

While these tips could be right, never take them at face value and always do your own research prior to investing your hard-earned money. The more you know about an investment yourself, the safer the bet will be.

#4 – Have an Open Mind

One of the most important things to remember is that you need to go into your investment strategy with an open mind. There are a ton of smaller stocks out there, especially in tech or in other industries that may be small now but have a huge potential to become blue-chip clients in the future.

Again, do your research and get as educated as you possibly can. The more informed you are, the more likely you are to get the best results.

#5 – Stick to Your Guns

When you’re investing your money, most of the time you’ll have a strategy, whether that’s one you’ve made yourself or developed using a professional financial advisor, like this Sydney finance broker. Strategies are designed to work well over the long-term; and if you panic and keep changing it, you’re never going to get the results you’re aiming for.

Summary

This is just scratching the surface of what tips are out there when it comes to turning a small fortune into millions. The best way to go is to get as educated as you can on the subject and use a professional advisor to help you make these all-important decisions.

Branching Out: How to Choose the Best Investment Broker for Your Needs

For people who have taken the audacious step towards investing, you cannot do so without first owning a brokerage account. Technological advancements coupled with the way the internet has infested every nook and cranny of day-to-day financial institutions, and there has never been a better time to invest your funds.

Competitions are rife amongst brokerage firms, with every broker offering new deals, the ability to trade stocks, and even involved in options trading—all of this done to convince you to join forces with them.

Choosing the right broker for your investment should be as important as choosing the right bank for your transactions. One should not outweigh the other. As a young investor, for you to become successful in the journey of investment, you need to properly deliberate on what services and products these brokers offer that will suit your needs. Many investors have fallen prey into nefarious brokerage firms in times past due to the lack of proper information

So, how do you choose the best investment broker that is right for you—in a sea full of brokers?

We’ll be looking at some of the factors that should aid your decision in selecting a broker for your investment. You can view here for more information regarding investments. 

How to Choose the Best Investment Broker for Your Needs - online broker image

Cost per trade

This is a necessity in every brokerage firms. Since the costs can be compared with other competitions, you should take out your time and look at every cost per trade each broker offers. The importance of this cannot be overemphasized. Take your time and investigate all the costs. There are some brokers that have minimum commission off trades from stocks but will not be suitable for you if you mostly invest mutual funds where the commission may not be attractive to you.

Investment options

Flip through the list of brokers and check out the variety of investment options they provide. A young investor should be armed with this information; a good broker offers you the options of investing an assortment of assets, be it bonds, treasury securities, exchange-traded funds (EFTs), options, stocks, futures, real estate investment trusts, and even certificates of deposits. For investors planning to only invest in ETFs, you need to choose a broker that will offer that service, the cost of that service and the possibility of spreading your wings in the future.

Referrals

No matter how convincing a broker ad may be, there are things that may not be apparent to you. Hence, before making the decision to create an account in a brokerage firm, you need to reach out to those who are currently investing in that firm or have been in times past. In the same vein, be careful of relying on opinions of such brokerage comparison sites, as some of them may, in reality, be an affiliate of the brokerage firm you’re planning to join. The best way to spot them is to look at how they present the information. If they provide unrealistic information, donating 5stars to brokers, your suspicion should be piqued.

Minimum Initial Investment

Most brokers have minimum initial investments that run into thousands of dollars. However, there are some brokers with little low minimum initial investments in hundreds of dollars. You should check for the clause in the minimum trades and also the penalty of not abiding by the requirements.

Types of Retirement Account

It is best to confirm the many types of retirement accounts a broker offers before signing up with them. If you want to set up a regular account with plans of opening an IRA or a custodial account for your kids in the future, you need to check if the broker can meet this need. This will not only save you unnecessary research time in the future but will make your decisions easier to make.

Direct Investment Advice

Before you sign up you with a broker, you need to find out if the broker offers direct investment advice, and if there is a charge for that particular service. Most brokers provide limited investment advice and offer you the opportunity of having full unrestricted direct investment advice for a fee. Also, there are brokers that’d charge you for broker-assisted transactions or for advice on a need-to-know basis. You should understand that the reason why most brokers offer low transaction fees is that they offer little or no assistance. You should inquire into the handiness of such services from brokers before settling on anyone—being aware that it could change the structure of charges should you choose them. 

Interest on Uninvested Funds

While some brokers offer interests on funds that have not been invested, some don’t. Look out for the ones that do while checking with the other parameters listed above before making a choice.

License.

Perhaps the most important factor to note down is to check if the broker is properly licensed with regulatory bodies like the Securities and Exchange Commission, and the Commodities Futures Trading Commission and other state commissions.

Experience

You need to find out the wealth of experience of a broker before choosing to sign up with them. This also involves finding out the number of training he or she has, plus the strategy and manner they approach investment.

Customer service

Finding a broker who is easily accessible and can attend to your questions and needs should be a top priority when choosing a broker. Check for the variety of customer support (direct phone, live chat, email) before making a decision

Visit Local Office

You can also pay a visit to the local office of the broker and talk to an executive there. If you are impressed with your findings there, you can make the choice of signing up.

When you place all these factors into consideration, choosing a brokerage firm that will meet your needs will not be difficult. Always remember that if you are not satisfied with the services of a broker, you are free to close down your account and choose another broker who understands your needs and gives you value.