4 Ways To Be A Better Investor

4 Ways To Be A Better Investor

Intelligent investors are always looking to learn new things. The stock market can’t be perfected, which means that there are always new strategies to practice and habits to adopt. Even the world’s most successful financial traders would back this up, even if they’ve developed some of their own methods to get where they are today.

Keeping all of this in mind, we wanted to briefly cover a few steps you can take to be a more effective investor. These tips don’t deal with charts and numbers so much as habits and psychological strategies, but they can help you to manage any money you might have in investments more effectively all the same.

1. Learn Assets, Not Charts

Don’t misunderstand this as a claim that it’s not necessary to learn how to read patterns and charts if you invest in the stock market. Rather, it’s an assertion that learning about the actual asset or company you’re investing in is the foundation for good financial decisions. Legendary investor Warren Buffet has made this claim, saying that people should buy into businesses they understand.

As he explains it, you should think about each asset as if you were going to put your entire family’s net worth into it. Does that inspire confidence? Or would you prefer to find a business or asset you know more about? This is a simple thought process that should guide you through investments, but also inspire you to learn more about a broader range of assets.

2. Keep A Trading Journal

Commonly recommended for forex traders, but helpful for any type of investor, a trading journal is a tool to help traders learn from past successes or failures. It’s not a complicated idea, but it’s one that more investors ought to be taking advantage of.

There aren’t exact standard parameters for a trading journal, but the idea is that it’s a log of buying and selling activity that can help to illuminate one’s own habits for purposes of learning and improvement.

3. Guard Yourself From Advice

This doesn’t mean that advice is bad, but it does mean you should judge each tip on its own merits. Venture capitalist Mark Cuban has made the point before that if a broker could make every client a millionaire, she’d be charging a lot more.

A lot of people who speak from a position of expertise in finance may not necessarily be experts on your own situation—or even in general. Advice is invaluable given the aforementioned fact that investors should always look to learn new things, but you still need to be careful about who you listen to and when and why.

4. The Market Is Wild; Stay Calm

Finally, don’t get hung up on volatility. Financial markets are always moving, and a lot of inexperienced traders and investors can become frustrated trying to track movements and time their transactions perfectly. The longer you stay involved with this sort of financial practice, the more you come to understand that the markets are always volatile and wild. The most important thing you can do as an investor is to keep calm and carry on.

5 MNCs That Started With Small Investments

In the contemporary corporate world, the blooming successes of multinational corporations (MNCs) have captivated our minds, and we want our businesses to be just like them – famous and worthy. But what we often forget is that everything big was once something small. So without further ado, here are 5 MNCs that started with small investments:

Small Investments making it HUGE!

  1. Apple Inc

apple-inc

Founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, Apple Inc started with the production of a personal computer kit called Apple I. What makes Apple Inc worthy of being mentioned here is not just the minor start-up capital of $1,020 but also the fact that all Apple I kits were solely built by Wozniak. Over the years, hard word and dedication paid off which is why it’s operating in around 17 countries with 478 retail stores as of now.

  1. Adida

adidas-originals-img

Since Adolf Dassler’s father was an ordinary worker in a shoe factory, Adolf and his brother – Rudolf began making their own sports shoes in 1924. Their venture started in their mother’s laundry in a time when electricity supplies were inadequate. Despite the hurdles, Dassler Brothers Shoe Factory AKA Adidas prospered and is currently serving its products worldwide.

  1. Ford Motor Company

ford-motor-company

Rendering its services worldwide and currently valued at approximately 28.64 billion USD, this automotive tycoon was founded by Henry Ford in 1903 with a capital of $28,000 from just 12 investors. Back then, only a handful of cars were produced per day with 2-3 men working per car in the factory. And now? Its manufacturing operations are performed worldwide from the USA to Africa, suffice it to say!

  1. Hewlett Packard

hewlett-packard

Although now defunct, HP is still worthy of being mentioned due to its long history that’s packed with lessons to learn. The pioneer of IT business, HP was established by William Redington Hewlett and Dave Packard in 1939 with an investment of a mere 538 USD. Then, the scale of operations was confined within Packard’s garage and after successfully flourishing till 2009, HP’s worth eventually began to decline to the point where it split into two companies in 2010.

  1. Cadbury

cadbury

Cadbury, a confectionery tycoon was established in 1824 by the Cadbury brothers namely John and Benjamin. Although the amount of their initial investment is unknown, it can be fathomed that Cadbury began with a small investment since its operations were limited to selling tea, coffee and drinking chocolate in Birmingham. Also, when it was taken up by John’s sons in 1861, only 11 employees were still working. After skyrocketing progress, Cadbury was finally bought for 11.9 billion pounds by Kraft in 2010.

So if you’re hoping to start your own business venture but are being laughed off because you don’t have sufficient capital, follow your heart and pursue your ambition! Eventually with hard work and dedication, your success story will become their moral for years to follow!

The Power of the Dollar: Solid Performance from a Leading Currency

forex market profitsThe forex market is never the most stable or reliable entity, as its derivative nature is susceptible to volatility and rapid change. This was drawn sharply into focus recently by the Greek financial crisis, as a potential default by the stricken nation and subsequent negotiations with the International Monetary Fund (IMF) has caused huge fluctuations in the market.

This has triggered a difficult past week for the forex market, with the Euro gaining after months of decline after it was announced that an agreement had been reached between Greece, the IMF and a selection of European creditors. It subsequently pared against the dollar, while traditionally strong currencies such as the dollar and the pound have rebounded.

A Secure Haven in a Challenging Market: The Strength of the Dollar

In this respect, the last week has seen the dollar in particular emerge with its reputation as an investment safe-haven intact. Even though it may have edged away from the two-month highs recorded against the six major world currencies just weeks ago, it has remained on track to deliver a solid performance at the end of a turbulent 96-hour period. This has primarily been triggered by a shift in investor focus, as thoughts turn away from the Greek crisis and towards a proposed hike in U.S. interest rates.

This is to be expected, as investors cannot act authoritatively on the recent Eurozone events until the Greek authorities accept the terms of their proposed agreement and commit to tough austerity measures. Positive and robust data sets from an improving U.S. economy offer far more security to investors, especially those who are active in a volatile space such as the foreign exchange. With interest rates set to soar and the job market performing well, the USD / EUR is set for considerable games in the coming weeks.

The Bottom Line for Currency Traders

To support this, the dollar index was up by an estimated 1.5% at the end of last week while the Federal Reserve confirmed that interest rates would rise later in the year. Listed at 97.496 on the index and 0.2% down on previous highs, it is important to note that a subsequent break above 97.775 would recapture these gains and re-establish the dollar as the world’s primary currency.

In terms of basic forex trading, this is relatively good news at a time when the market is experiencing more pronounced volatility than usual. While the Euro may have pared and remains likely to fall further until a firm resolution is achieved in Greece, the Dollar and to a lesser extent the British pound have rebounded and create a strong option for investors. This is also good news for businesses, as it is likely to drive positive sentiment and create greater economic growth.

Markets.com Review

trading platform graphicMarkets.com, founded in 2006 is headquartered in Cyprus, and is owned and operated by SafeCap Invesments Limited. It is regulated by the Cypriot body CySec, along with the UK’s FSA. Markets.com is not available to U.S. customers.

Platforms

Clients of Markets.com can choose between four separate trading platforms regardless of account type:

The MetaTrader (MT4) which is the industry’s most popular platform; the Markets.com Trader which is a downloadable, Windows-based platform that is easy to install and operate; Markets.com Java Trader is for traders who may not always be at home while accessing the markets and can benefit from the excellent security features of a JAVA-based platform;  and the Markets.com’s Practice Trader or demo account which allows beginner traders to trade in a live account with virtual funds.

In addition, the Markets.com Mobile Trader is an application designed specifically for the iPhone and other mobile devices. [Read more…]

Mutual Fund Types and Investment Tips

If you are interested in mutual fund investment or already started to invest in the market, then this article can help you with better investment tips. Mutual funds involve some tricky financial terms and you need to understand the basic concept of mutual funds. Mutual funds are basically collection of a small tranche of money from individuals and later this collective amount is used to invest in different big avenues to earn money. Due to high transaction volume, mutual funds entertain lower transaction benefits.

Additionally, investors are provided with expanded portfolio with mutual investment as mutual fund houses invest the collective amount in several sectors and diversified businesses. Mutual funds are the best option for the person who has just started his share market activity. Even if you don’t know a thing about Stock market, mutual funds offer you a safer side. Your investment is less vulnerable of market crash due to use of your money in different companies. Even few of those companies dip due to market crash; the rest investment will save you or minimize your loss. [Read more…]

How to Spot a Hot Property Investment Opportunity

investment property opportunitiesIf we had the ability to predict the real estate market, that would be a skill that would make all our dreams come true. Unfortunately, that is just what it is; a property investor’s dream. Instead of making a calculated guess as to where the best spots would be to purchase an investment property, you can actually choose areas classified as hot spots. Hot spots are areas where the value of the investment will increase significantly in the future. There are certain factors which point to areas deemed to be property hot spots.

Infrastructure

The population mass lives in the city or within close proximity to the city. This means that transport needs to be easily accessible. Suburbs that have regular transport services such as trains and buses should be looked at. If there is a modern motorway, tunnel or link to the city, that is a great bonus for commuters.

Lifestyle

Any property near water always attracts buyers. People love the lifestyle factor of beaches, canals and lakes, so these properties are always a good investment. Golf courses and modern shopping facilities will also attract buyers in the future.

Government urban renewal

Watch out for disused former industrial areas, especially on the waterfront. Governments have converted these run down warehouses into upmarket exclusive living spaces consisting of secure waterfront apartments with landscaped walking paths. This style of accommodation is popular with people earning good incomes.

Worst suburbs

Certain suburbs have gained bad reputations and have been shunned by buyers for years. However, these suburbs are now being looked at because they are affordable. If they are well positioned with adequate infrastructure, there is the potential for that suburb to change and become a trendy hub. Near city suburbs in capital cities have undergone enormous transformation due to market trends and not government renewal programs.

The ripple effect

Prime suburbs always seem to hold their price, even if the market is sliding elsewhere. However, this also puts them out of the price range of many property investors, as these prime suburbs will often become too expensive. So the smart thing to do is look at the bordering suburbs and surrounding areas. This is known as the ripple effect.

A wise investment can set you up for a secure financial future. As well as selecting a hot property in an area that has the potential to boom, it is equally important to select the correct mortgage for your needs. Saving money on your mortgage will mean you can pay off your loan sooner. There are many straightforward loans available to property investors. AClear Path Home Loan from BOQ has a low interest rate and it is worth having a look at this loan when doing your loan comparisons. Investment properties are a way to securing financial freedom. Always have a goal and a plan in place before proceeding with any large purchase.