Category Archives: Personal Finance

What should you know about retirement stocks?

The phase of our lives when we are old should be free financial pressure and that is why a question that arises among people is how someone should invest in the long run in order to keep its savings safe and also generating returns. How ordinary people invest should be put into question since most of the time they do not manage to achieve the desired results.

With that being the case, in this material, we will give some hints on how someone should determine whether a particular stock should be a good investment for retirement.

Long-term investments

When it comes to long-term investment it cannot be treated like online trading. You are not constantly buying and selling things, so a different approach is required.

One of the first things to consider when picking up retirement stocks is to look after those companies that have the following characteristics:

  • They are the biggest in the sector of activity (the so-called“blue chips”);
  • They have a measurable performance in the past (you can notice that the way stock performance, in the long run, has a certain repetitive structure);
  • The culture of the company is focused on growth and constant improvement.

You must understand that when it comes to retirement stocks you are trying to aim a return of a few percentage points per year.

Diversification

In order to spread the risk across a handful of assets, you should not focus on just a single stock. Try to find at least five and if you have a bigger budget, you can expand your holdings to other asset classes, as well.

Monitor on a constant basis

Simply buying those stocks without constantly monitoring them won’t be enough. You should be updated with all the news related to those companies you have invested in. We know that some of you have jobs and might find it difficult to allocate time for this activity.

Do it at least on a quarterly basis, if you can’t once a month. Your portfolio should not be fixed and any time you notice something is wrong with one of your holding, shifting to other stocks could be the best decision.

Although you might work in other areas, keep in mind that a little economical background (which can be acquired without going to college) is necessary, so make sure to dedicate yourself as much as you can so you will learn all you need about stocks.

 

Beginners Guide to Online Trading

It is a fact that online trading could be a good investment opportunity, but in order to be successful in this field you have to do a lot of work. However, we do not want to start heavy on you and also, this material is designed for those who are at the beginning and are just starting to learn about online trading.

Without further a due let’s start and talk about some of the things you need to do as a beginner.

#1 Start with your mind

Education is the most important thing in online trading and most of the traders out there fail to understand that. Your mindset and the way you think will have a huge impact on the results you will have. And because of that, you must begin by laying a good foundation in the journey of online trading.

Try to understand yourself and decide what particular markets you would like to trade. Maybe you like the forex market, or the stock market, or the commodities markets etc.

#2 Master the art of technical analysis

If you want to be an online trader, understanding price movements using technical analysis is one of the most crucial skills you will need. There any many ways you could use it. Since you are at the beginning with online trading, price indicators are a good start. Bollinger Bands, Fibonacci levels, moving averages, etc. are all tools that can work in any type of market with proper education.

#3 A deeper understanding of the fundamentals

Economics are influencing the markets and thus you will need to master fundamental analysis. Each type of market has a certain set of indicators and you need to spot, understand, and monitor them on a constant basis in order to be able to anticipate the market moves.

You must be fully aware that the economic calendar affects your strategy and by ignoring the fundamentals you are going to face some unwanted situations.

#4 All about the mathematics

If you are interested in online trading you must also understand this is risky. Since you are dealing with risk, you must also be aware of some risk management principles that are crucial for your long-term performance.

By understanding the mathematics in the process of trading you can take measures and be proactive in order to avoid losses and keeping you capital safe in the long run.

How to Invest Online

Online trading is the most popular form of investing, and provides you with the fastest and most reliable way to execute your trade.  If you are old school and want to call your broker to place a trade, it will likely cost you more and it will definitely take more time.  Wait time for popular brokers can be 5-15 minutes, where online orders can be executed in seconds.  Here are some of the steps you need to take as you begin online investing.

Opening your account

  • You will need to register, supplying information such as your name, email, and phone number. In some cases you will need to supply your address, proof of address or even your social security or national identification number
  • Many brokers want to know about your trading experience to determine what types of products you are eligible to trade. Many reputable brokers want to avoid providing customers with tools that will allow that to lose all their capital.
  • Once you are registered, you need to fund your account. There are several ways to fund your account including a bank wire, a check, a debit card or even a credit card. This will depend on your domicile. For example, in the U.S. you cannot fund your account with a credit card.

Evaluating Trading Tools

Once you open your trading account, it’s important to evaluate the tools that are available to help you make your trading decision.  This could include evaluating the charting and graphical packages that your broker has available. In addition, many reputable brokers supply clients with economic research including a financial calendar that shows all the different important data points that will be released during the week or the month.

You also want to see if your broker has an education section. Here you might be able to find many different trading strategies and how to use them.  Check to see if your broker offers technical analysis tools and an explanation on how to use these tools to enhance your trading. Your broker might also offer news and analysis. The more information you know the better your trading decision will be.

Order Execution

Each broker will have a different trading platform. Before you risk real capital, make sure you understand how trades are executed.  Many brokers have demo accounts that allow you to execute traders without risking real capital. If your broker has this capability, give it a try so you become familiar with executing a trade. There is no harm with making a mistake with demonstration money.

If you plan on using your broker’s trading app platform, make sure you also take this for a test drive before you execute a trade. If you are on the go, you want to make sure that you can see your balances and position on all platforms offered by your broker. For example, the trades you make on your PC should show up on your mobile device.

Summary

Trading online is the most efficient and cost effective way to execute a transaction. After you register you should evaluate the trading platform before you deposit capital.  Test drive all the platforms you plan on using to make sure you understand all of the nuances of your brokers trading platform.

How to Save Money without Noticing It

Saving money is one of the greatest issues people face. In a world that tries to stimulate consumption as much as it is possible, you will find a lot of temptation to spend all your hard-earned money. Most of the people are not even noticing that they are sacrificing their long-term well-being for some things that gives them satisfaction for a short period of time.

If you are reading this article, it is clear that you think different and you want to do things in a smarter way. You are also probably searching for some tips for personal budget  and that is why we want to give a simple and effective way to save some money. Although the sums might be small in the short run, you will see that in the longer run results are better than you would expect.

The 10% rule

Let’s say that you are currently earning 1k per month. This number is below average and we’ve choose it with purpose, because we do not want to artificially inflate the numbers, so they will look better. Make sure to receive your salary on a bank account, not cash. You’ll see in the following statements why.

Open a savings account

The next step would be to open a savings account. A private pension account would also be a good idea. Preferably, your bank account and your savings account should be opened at the same bank, so it will be easier to make the next step. We won’t recommend any bank, it is up to you to choose one that you think fits the best. Do a little research, find out what feedback other customers are offering and only then open the account.

 

Set a monthly transfer to the savings account

You have the possibility to set a monthly payment from your bank account to your savings account. Make sure to set a date that is after the date you receive your salary, so you won’t encounter any issues. Set your account to automatically send 10% each month to your savings account.

If you do the math, for a 1k account, 10% means 100, 100 multiplied by 12 equals 1200 and in 10 years you will have 12,000. Simple enough to save a decent amount of money and improve your personal budget.

Meta description: Find out an easy way to save money in order to be able to manage your monthly expenses. See how you could do that for free. Find out more in this material.