Try To Trade The Market With A Balanced Trading System

Your trading performance works well when there are some proper plans ready. The environment has to be somewhat inspiring you in the process. Then the planning and strategies will be proper for trading. This is because a-relaxed mind works more efficiently. 

Unfortunately, traders will have to work for the proper environment of the trading business too. A retail account will not be okay for multiple traders to work in this business. So, the traders will have to manage their business procedures in such a way which can make good outcomes from the markets. 

In this article, we are going to talk on the topic of making the approaching plan for the trades right. The following parts will denote the necessary topics for the proper maintenance of your own trading profession. So, read it carefully and try to modify your own trading business accordingly.

You cannot take too much tension with a profit target

For all of the trades from your account, there will be proper preparations needed. The trades will be placed inside the markets and in between the trends as well as the major swings of the market. 

For that, the traders will have to prepare the proper condition of the trades. We are talking about the position sizing of the trades. Because it helps the traders with proper execution of the trades, it is very much necessary. If you forget about it any time in your career, there can be a good tragedy. 




Winning can be a sudden chance provided to you but it will not come all the time and not for all of the traders. The trends are uncertain for all of the traders. That is why the traders will have to stay organized so that they can take immediate actions for certain conditions of the markets.

Focus on premium trading environment

New traders in the United Kingdom don’t really understand why they should trade the market with a well-regulated broker. The low-end brokers will never give you the precise price feed. Most importantly they might scam you and you will have nothing to do. 

The moment you think to become a fulltime trader in the Forex trading industry is the very moment you should start working hard. Try to find a well-regulated broker like Saxo, so that you know you have access to the premium trading environment.

The market analysis with have to be proper for trades

Like the proper position sizing, traders will have to be good at doing the market analysis. Because trades are going to be placed in the markets based on the analogy of the markets. Basically, the trader’s will be ensuring the position sizing in the key swings and trends of the markets. 

For that reason, all of the traders will have to know about the proper analysis of the trends and swings. For that, you can take advantage of the support and the resistance points. They will be acting as the reference of the traders. Even there is a tool called based on the Fibonacci rule for your help. 

You will just have to learn how to use it for analyzing the past signals to understand the future of the markets.

Work with a very little risk which is easy to handle

For safety, traders will have to maintain the business with decent trading risks. Because the market’s volatility is very much uncertain for all of the traders. There is not a good sign for you to make money. But still, some pro traders happen to manage the proper trading performance with the right approach. That is possible when there will be very fewer risks to work with. The mind will not get any kind of pressure for trading. If you want to make every trades proper, this is a thing you should do in this profession.

4 Techniques for Financial Success That Will Surprise You

The secrets to financial success are not actually that secret. They can simply just be difficult to achieve. These four surprising techniques for financial success will put your finances on the right track.

Invest

Investing is a very practical skill and how most people with significant amounts of money got rich. Its sheer influence over financial success is what will surprise you. There are many different kinds of investments you will need to understand, including stocks, funds, bonds, and more. Know your risk tolerance. 

Remember that, in most cases, you don’t lose or gain any money until you actually withdraw investments and that values will change over time. To be successful at investing you will have to take the time and learn how it works to make the best possible decisions.

Save for Retirement Early

Many, many people neglect their retirement savings. Would it surprise you to learn that just about every age group has far too little in retirement savings? You will likely not be able to live on social security alone when you retire. 




Take advantage of any employer-sponsored retirement savings accounts from the moment you get your first job. You can also utilize investments, outlined above, to grow your retirement savings so you can enjoy your golden years while having enough money to live on.

Watch Your Credit

Your credit rating and score are essentially a history of your financial reliability. Credit checks are done in a large variety of circumstances, including by landlords, mortgage companies, insurance companies, and employers. 

Odd things such as closing accounts, not utilizing credit, credit reporting errors, and getting parking tickets can affect your credit score. If your credit is poor, there are ways you can improve it, including fast credit repair services, working hard, and budgeting well to get your finances back on track.

Budgeting

Perhaps the single best thing you can do to achieve financial success is to have a budget and stick to it. Doing so means you are less likely to overextend yourself by borrowing more than you can afford. 

It will help you set up good financial habits such as paying all bills on time and putting a little into savings each month. While budgeting is hardly a surprising financial tip, its effectiveness certainly is.

In most cases, financial success comes from using the money you do have wisely. These tips may not be revolutionary but they will surprise you in their effectiveness. Don’t make your financial situation more complicated than it needs to be. With a solid foundation of good practices, you can achieve financial success over the course of your life.

5 Things To Consider While Buying A Car For Investment Purposes

Your latest automobile purchase must have burned a hole in your pocket, but that doesn’t mean buying a car is always an investment. A wise investment is when you expect a return on the original amount of money you put in the asset. For example, the value of a house is more likely to appreciate over time. Stocks pay a dividend and appreciate.

However, unlike other expensive assets, a car starts to lose value the second you drive it off the parking lot. Most cars are high-maintenance and need regular services like gas, oil, repairs, and insurance. Usually, a car’s value depreciates every year and is worth less money as time passes.

But that doesn't mean you shouldn’t buy a car. Almost everyone buys cars several times throughout their adult years. Today, we are going to discuss different ways that can ensure that purchasing an automobile is a good investment for the long haul. Here are X things to consider to make sure that your next car purchase is a wise investment for the future:

Buy a used car

You will be surprised to know that buying a used car can often get you the best deal. Visit scrap car buyers or used car dealers if you’re tight on budget and looking for an essential vehicle in the least amount of money. 





A late used car model means that you can save some extra bucks through reduced maintenance and warranty coverage. However, these factors are only applicable if you have done adequate research beforehand and gotten the used car inspected from a trusted mechanic. Which brings us to our next point...

Do your research

If you’re looking to buy a car for investment purposes, then you can’t skimp on a thorough investigation. Make sure you have evaluated some hard data about various kinds of car models before you approach a car dealership.

Invest in classic cars

Thanks to the internet, there are lots of classic car auction sites that can help you spot a great classic car. Many websites offer valuation tools and a classic car newsletter to help you stay updated. Buying a classic car has a lot more emotional value and is considered a better investment than owning stocks and bonds.

Choose a reliable brand

Another big factor to look while investing in a used car is to make sure that the automobile brand is reliable. Focus on brands that have a relatively high-reliability element, such as Honda and Toyota. Research consumer reports about the reliability of a particular model and also study how the cost of spare parts will affect your car insurance later on.

Reliability is critical because it will minimize your car’s repair costs in the long run and will also give it a longer life on the roads. Both scenarios will put back cash in your pocket.

Start saving today

The last tip of this article is that if you're planning to buy a car for investment purposes, start saving now instead of taking out a loan. You don’t want your savings to go down back on returning the loan.

Conclusion:

We hope these tactics will help you in dealing with the pain of buying a car for investment purposes. Start applying all these rules together and you will notice that your yearly vehicle expenses will reduce significantly over the long run. This means you’ll have a car that not only runs better but also has smaller monthly payments and you might land up with some savings!

Do you have any tips and tricks that can help people buy a car for investment purposes? Share your best-kept used car buying secrets with us in the comments below:

AUTHOR BIO

About Erica Silva. Erica Silva is a blogger who loves to discover and explore the world around her. She writes on everything from marketing to technology. She enjoys sharing her discoveries and experiences with readers and believes her blogs can make the world a better place.

Find her on Twitter: @ericadsilva1

Make 2019 Your Best Year Yet For Investing

For many years, I've found that sensible investors display a prevalent characteristic: discipline. No matter how the current market moves or what all-new investing trend hits the headlines, those who remain centered on their objectives and tune out the noise are
set up for long-term success. 

Saving

The initial groundwork to investing is saving, and you do not usually become a saver without a strong dose of discipline. Savers decide to sock away part of their income, which means spending less and postponing gratification, despite how difficult that might be. 

Self Control

Of course, self-disciplined investing extends beyond diligent saving. The financial markets, basically, are uncertain. I have yet to meet the investor who can time them perfectly. It takes self-control to withstand the desire to go all-in when markets are frothy or to retreat when things look grim. Staying put with your investments is one strategy for handling volatility. 

Rebalance

Another is  rebalancing, it needs even more discipline since it means maneuvering your money away from stable performers and towards poorer performers. Additionally, persistence, a form of discipline is the friend of long-term investors. Much higher returns are the possible reward for weathering the market's turbulence and unpredictability.

We have been savoring one of the longest bull markets in history, but it will not continue eternally, as we have been seeing lately. So get yourself ready now for how you will respond when volatility returns. Do not panic. Don't go after returns or look for solutions outside the asset classes you trust. And be sure to rebalance routinely, even when there's turmoil. Even if you're a master of self-discipline, get a boost from technology, or collaborate with a professional adviser, know that discipline is necessary to get the most out of your investment portfolio. 

So make 2019 your best year yet with your investing. Stick with what works. Avoid the fads and stick with tried and true investing techniques. Good Luck.

Can Your Money Make Money? How to Save for Retirement through Investing

If you have started planning for retirement, you may have already estimated your financial need for the future. This estimate may be based on a projected budget in retirement as well as the use of online retirement calculators. 

If you are floored by the huge amount of cash that you need to save between now and your desired retirement date, you are in good company. The good news is that your money can actually make money for you when you invest it wisely. These are some of ways that your cash can multiply over the years.

Interest

Today’s savings accounts have fairly low interest rates. In some cases, they barely keep pace with the rate of inflation. However, when you stash at least some of your money in a savings account, your bank will make regular interest deposits in your account. 

You will notice that your account balance grows slowly over time as a result even if you do not contribute any additional money to it. Because the rate of return on a savings account is low, however, you should also consider putting some of your money in these other investment vehicles.

CDs

The rate of return on CDs varies by financial institution, the term length and the amount of money that you invest. You will generally enjoy a higher return when you buy a CD with a longer term and a larger investment. 




However, if you cash out the CD prematurely, you may lose money. Therefore, only buy CDs with money that you know that you will not need until the end of the term.

Dividend Stocks

While stock prices fluctuate dramatically, the stock market in general has trended upward over the decades. With all stocks, you profit when you sell them at a higher price than what you purchased them for. This is only one way to profit from stocks. Some companies may a regular dividend on their stock. 

A quarterly dividend is most common, but this varies. You can request dividend reinvestment, which means that you will buy additional shares of the same stock with the dividend that you receive. You can also receive the dividend as cash in your investment account.

Real Estate Investments

Real estate investments can also be lucrative, and rental property is among the most common way to profit from real estate. Real estate investors make money through property value appreciation, and this can be realized when the property is sold or when the investor takes out a cash-out refinance loan. 

If the property is income producing, the investor generally will receive monthly cash flow. Another way to benefit financially from real estate investments is through tax deductions.

As you can see, there are numerous ways for your money to make money for you. A smart idea is to fund your savings account with a reasonable amount of money, and this can serve as an emergency savings account. You can then purchase other investments to create a diversified, balanced portfolio.

Being a Clever Trader Can Benefit Your Trades

What does being clever in a profession means? It is making money and creating a treasure chest for yourself? Or is it being a good performer and efficient thinker in your job? If you go for the first one, there is a possibility of you to make some money. 

But you would not make much and it would not be consistent for any profession. Whereas, if you go for the first one, there should be no problem with making money and holding a good position in your job sector. With good performance, you can get to a great position and stay in that place. 

But, with thoughts of making money, your career would not see good improvement in position. Instead, it can be ruined if you greed too much about money making. In the business of trading, it is the same. 

Here being clever also means having the target of performing properly. In the following, we are going to show you some ways to run your business with this motto.

Conserving energy for the next mission

Trading is not about how much you have made in a single trade. It is about the consistent performance of an individual. If any person saying that he or she have made a good profit at a particular trade, you must think, that trader is not doing good overall. 

Now he or she is being excited with a singular win. This excitement can even cause that individual to make wrong decisions for the next trader to be opened. So, you must learn to preserve energy for yourself. If any emotional dilemma comes in the way, you should not fall for that. 

And work should also be done to reduce a headache and pressure on money management. Thus your trading approach will be solid. Whether you make money or not, the statistics of your trading performance will be good overall. And soon, you will be able to make a lot of money.

Learn to cut your losing trades

Many people in the United Kingdom often says dealing with the exchange traded funds industry is extremely risky. To be honest, they are saying the perfect thing about this Forex market. 

Though the number of active traders in the online trading industry is rising at an exponential rate the success rate is still around 5%. Most people don’t know the proper way to cut their losing trades. As a Forex trader, you have to cut your losing trades early and stick to your winning trades.

Being highly adaptable to the markets

In this business, the markets are always changing with time. It is due to the economic changes in different regions. So, there is no chance for any trader to know the future and place a trade accordingly. 

You can just be strategic and place run your own business with proper planning. Don’t try to make skeptical decisions, as they are not good for helping traders. There are a lot of tools for helping traders to understand when to place a trade. 

Such things as supporting levels, pickup, and resistance point techniques, the Fibonacci charts and time frames etc. these are common to many people. With the help of these tools, you must be adapting to the markets like a price action trader.

This business should be a part of you

If any profession can be a part of someone, it can bring him or her a lot of joys. Whether it is money or having a good career, it is possible by having a good bonding with your profession. When you make your job a habit, it becomes a part of your life. 

And your thoughts also adapt to the profession. Money tension and greed does not stand a chance in this bonding. As a result, your career and performance can experience a good result in any profession you like as well as the trading business.

An Investor’s Guide to ULIPs and ELSS

Choosing between Unit Linked Insurance Plan (ULIPs) and Equity Linked Savings Scheme (ELSS) through SIP can seem confusing, as both are investment options that offer the benefit of tax deduction under Section 80C of the Income Tax Act. 

It is essential to know the difference between SIP and ULIP since you can opt to invest in an ELSS scheme through a Systematic Investment Plan (SIP) route. 

The choice between the two should be based on your individual financial goals, risk appetite and investment horizon. Before making a decision, let us delve deeper and decode these two products.

What is ELSS?

Equity Linked Diversified Schemes or ELSS is primarily an equity diversified mutual fund scheme that invests in stocks from various sectors and of different market capitalisations. 

You need to lock in your investments for three years in an ELSS. You can claim up to Rs. 1.5 lakhs as a tax deduction against your investment in an ELSS.

What is a ULIP?

A ULIP is an insurance cum investment product, where one part of your investment is directed to give you a sum assured, upon maturity while the remaining is invested in securities such as equity, debt, money market depending upon your preference. 

You need to lock in your investment in a ULIP for five years. Here’s the guide how to choose ulip plan that you can follow to know more things before invest. 

During this timeframe, however, you can choose to switch from equity to debt or hybrid, in case there is a change in your investment objective. You can also claim a deduction of up to Rs. 1.5 lakhs on your investment in a ULIP.

What you should know before investing in ULIPs vs ELSS

Specific factors that make ULIPs a unique investment product are as follows: ULIPs offer you the power of insurance or a security cover along with investment benefits.

Initially, the premium you pay for a ULIP is used for various charges towards life insurance such as mortality charges, fees towards fund management and administration expenses.

Post deductions the remaining premium is divided between providing you a life cover and buying fund units for investment. 




What you should know before investing in ELSS vs ULIP. Certain factors that differentiate ELSS from other investment products are as follows:

ELSS is the only mutual fund product that offers tax benefits under Section 80C of the Income Tax Act.

It has the shortest lock-in period of three years as compared to other tax savings products that come with a lock-in of five years and more.

You can invest in ELSS through a SIP throughout the year, to avoid last-minute tax planning woes.

Since it is an equity-diversified scheme, you can continue to invest in it post the lock-in of three years.

ELSS schemes invest in equities. Thus, the risk involved in ELSS investment is higher as compared to other tax savings instruments, but the returns are potentially higher as well.

Differences between ULIPs and ELSS:

1- Essential feature:

ULIP: Insurance cum investment product that can help you in long-term wealth creation

ELSS: Pure investment product that aids in long-term wealth creation

2- Tax benefits:

ULIP - Annual premium amount is eligible for Tax deduction under Section 80C. Policy pay-outs (death benefits) are exempted under Section 10 D of the Income Tax Act.

ELSS - The amount invested annually in ELSS is eligible for tax deduction under section 80C of the Income Tax Act.

The invested amount in ELSS falls under EEE category. This means it is exempt from taxes at the time of investment, taxes at the time of investment, accumulation and withdrawal

3- Applicable charges:

ULIP - Multiple charges are applicable on ELSS. These include mortality charges, premium allocation charges and administration charges. However, it is not very easy to access information about the premium breakup.

ELSS - Fund management charges and exit load (if you redeem your units before maturity), are explicitly specified in the scheme information document, before investing.

4- Liquidity:

ULIP - ULIPs have a lock-in of 5 years.

ELSS - ELSS has a lock-in of three years.

To read the difference between ULIPs and SIPs, click here.

Which one should you choose?

Both investment products have unique features and are long-term in nature; hence, choose your option purely on your investment objective. However, along these two schemes you have one more choice to invest, i.e: sip. 

You may follow this guide to know more about how to invest in sip. For instance, if your aim is to invest in a single product that takes care of your insurance and investment needs, then ULIPs can be the ideal choice. 

On the other hand, if you wish to compartmentalise insurance and investments and are looking merely for a tax savings product, an ELSS fits the bill.

Bajaj Finserv can help fulfil all your insurance and investment needs. With attractive investment options offered in a convenient and hassle-free manner, you can save on cost, time and effort. 

An entire range of financial products including home loans, personal loans, business loans and more offers instant finance, without any forms, queues or processes involved. All you need to do is share some details and check out your pre-approved-loan-offer here.

How to Manage Your Investment Income With FD for Senior Citizens

Most people’s lives are spent in working their days off to save money for the future. However, as the future comes near they are faced with an important question – how to manage all the income coming from their lifelong investments? 

Another important question that arises in their minds is – do we have enough money which would be able to give a decent amount of returns? Also, as they age, there is a certain feeling of independence that becomes stronger as well. 

As we grow, our financial situation changes and may or may not worry us – depending on the way in which your money is invested. 

However, but the savings and returns you have accumulated can grow by investing in investment instruments including FD for senior citizens, special saving schemes, mutual funds etc. Before investing your income, keep some of these tips in mind:

Come up with an expenditure plan for yourself and then plan a pay-out strategy which would offer a safe option to keep your funds flowing.

Diversification of the investment income is extremely important, so that you can withdraw liquid cash if any emergency or unexpected circumstances arise.

Regularly reviewing and revising these diversified investments is an important pre-requisite to keep a check on the amount of returns you are earning.

Here are some ways in which you can manage the income from your investments:

Saving Schemes

There are many investment schemes for senior citizens like Senior Citizen Saving Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), Varishtha Pension Bima Yojana (VPBY), The Pradhan Mantri Vaya Vandana Yojana (PNVVY), Rashtriya Vayoshri Yoajana (RVY) that offer steady monthly income to senior citizens. 

All your money from provident funds, small savings accounts and employee provident fund can be transferred to these schemes. POMIS offers a fully taxable interest rate of 7.8% per year which can either be invested by a single person or in joint ownership. 




The capitals for both types is Rs. 4.5 Lakh and Rs. 9 Lakh respectively. SCSS is another great investment for senior citizens whose maximum duration is 5 years with an annual interest rate of 8.6% per annum – extendable up to 3 years once matured.

Fixed Deposits

Fixed Deposits for senior citizens offered by many banks and companies provide them the liquidity of easily available funds whenever they want to withdraw money. This advantage of having a FD for senior citizen helps them to invest in various different FDs, instead of parking all their funds in just one. 

Companies offer an interest rate of 8.75% - higher than the rate provided by banks. The tenor of these FDs ranges from anywhere between 12 months to 5 years divided in cumulative and non-cumulative interest rates. 

The cumulative interest rates for a period of 24-35 months at a minimum amount of capital Rs. 25000 is 8.50%, whereas, the non-cumulative interest rates for monthly, quarterly, half-yearly, and yearly range from 8.23%, 8,28%, 8.35%, and 8.50%, respectively.

Investing in Fixed Deposits gives you flexibility of distributing your investments in multiple FDs that you can choose based on tenor or interest rates. 

If you are not sure about the amount of returns or interest you are going to earn with an FD, you can compute it through an FD interest calculator which would show you the exact amount at the maturity and the interest you would be earning. Based on that, you can plan out your investments starting with the short durations and re-investing as they mature.

How to Invest in Cryptocurrency & What to Know Before You Do

Investing in cryptocurrency is a hot new trend that has already made some investors a considerable amount of money. If you want to invest in cryptocurrencies successfully, though, you’ll need to go about it in the right way. Here are four things you need to know about investing in cryptocurrencies.

Understand That Cryptocurrencies Carry Risks

Although many people have made money by investing in cryptocurrencies, these assets aren’t without their own unique risks. As with any other form of investment, you should only put money you don’t absolutely need into your cryptocurrency portfolio. 

You also need to carefully evaluate the price movements and overall qualities of different cryptocurrencies before you invest, as jumping in prematurely can increase your chances of losing money.

Some Cryptocurrencies Can’t Be Bought Easily

Though major cryptocurrencies like Bitcoin and Ether can be traded directly for traditional money, not all cryptocurrencies work in the same way. If you want to invest in altcoins that are less prominent, you may have to resort to exchanging Bitcoin for them. 




Luckily, you can do this buy Bitcoin with Visa or another credit card, then use an online exchange to trade the Bitcoin for the currency you want. Be sure to research the coins you plan to invest in extensively and figure out what cryptocurrency exchanges support them so that you can buy without any difficulties.

Know the Laws of Your Country

Though many people still think of the cryptocurrency market as being an unregulated open market, the truth is a little different. At the moment, there are only 96 countries where Bitcoin usage isn’t restricted in some way. Make sure that you know and follow the laws of your country when it comes to cryptocurrency investing.

Build a Diversified Portfolio

One mistake that many new cryptocurrency investors make is to invest in only one currency, usually Bitcoin. While it can be appealing to keep things simple in the beginning, relying on a singly cryptocurrency makes your portfolio more risky. 

Try to find at least two or three good cryptocurrencies that you believe will make good investments in order to create a more strongly diversified portfolio.

By keeping these things in mind, you’ll be better prepared to get started with cryptocurrency investing. Before you actually put money into the markets, make sure that you track the prices of your chosen currencies for a few weeks to see whether or not you can accurately predict their price fluctuations. If you can, it’s a good sign that you’re ready to invest.

How to Master the Art of Forex Trading Profession

This is one of the most popular articles on the internet but sadly no one gives you clear information to learn to trade the market. 

But if you read this article very carefully you will understand how to make a huge profit from this market without losing your investment. As an investor, you need to follow some basic rules. Trading is often called as the most complex business in the world. 

You need to fight with your emotions to execute the best trade at the most extreme market conditions. Now let’s learn about the key steps which will help you to become a profitable trader in the Australian trading community.

Do you really want to become a trader?

This is is the most important question you need to ask yourself? There are many challenges you need to overcome to become a successful trader. 

Can you really take this heat? If so, trading is the right profession for you. Though 90% of the traders are losing money there is nothing to be afraid of. 

Those who trade the market with 2% risk factors will never blow their account. But there a slight change to the universal 2% rule of risk management. Instead of risking 2% per trade you need to risk 2% per week. 

By this way, you will be able to stop overtrading the market. Focus on quality trade execution in the higher time frame.

Find a professional trader

Finding a successful trader is very hard. But if you want to become successful within a very short period of time you need to find an expert Aussie trader who will guide you the initial path. 




Things are really very easy in the Forex market but if you don’t trade with discipline it won’t take long to blow your account. This is where the professionals will help you. 

Forex trading is nothing but dealing with your emotions and managing your trades in a very organized way.

Demo trade the market for six months

You need to use the demo accounts for at least six months. Those who start trading with real money doesn’t really understand how this market works. 

Learning from your mistakes as a new trader by losing money continuously is very hard. But if you simply use the virtual dollar you can trade as long as you want. This is just like your practice field where you can learn about the complexity of this market. 

Some professional brokerage firms have limitations on the demo accounts but this is absolutely fine. Demo trade the market with the average brokerage firm to learn to trade. 

Once you develop a stable trading strategy switch back to your real account and start executing quality trades with managed risk.

Stop being a trade addict

You need to stop being a trade addict or else you will never succeed. Some traders always stick to their chart and things this will help them to better understand the market. 

But in reality, this things always make things worse. You have to trade in an organized way. Follow a trading routine and you will be able to learn the details of the market. 

Majority of the traders don’t know the importance of different trading sessions. They are always taking a huge risk at the wrong time. But if you chose the correct pair in the correct trading session you will have higher chance to win trades.

Forget about EAs and bots

Last but not the least you need to forget about EAs and bots. No bots have the capacity to predict the price movement with 100% accuracy. Those who will guarantee 100% profit, stay 100 feet away from them. 

Try to learn the manual trading strategy as it is one of the best ways to find good trades. Be a conservative trader and you will see significant improvement in your trading system.

Basics About ETFs for Beginners

Exchange Traded Funds (ETF) are not too popular instruments for retail traders and probably if you are new to trading you haven’t heard of them before. 

ETF trading had become popular in the last few years among institutional investors like investment banks, hedge funds, equity funds and even pension funds. 

Since the “big players” from the financial world had been eager to invest in ETFs, let’s see what exactly this assets are, so you can understand them better and decide yourself if it is worth to invest your time and money.

What is an ETF?

To understand an ETF, you should think about a basket with a few different products in it. An ETF is a tradable instrument which tracks the performance of a commodity, index, stock or a group of assets just like an index. 




The ETF market had been on the rise in the last few years and only in the United States, there is an annual trading volume of approximately $ 20 trillion just with ETFs, according to statista.com. That’s more than the annual GDP of the US and proves the high interest there is for this kind of instruments.

Why should someone buy an ETF?

There are several reasons why ETF trading might be good. First of all, it provides diversification. As we’ve mentioned at the beginning, you can buy a basket of assets, not just one. 

By doing this, you have the risk spread across a certain number of assets, not just one. If you buy a stock, for example, and the stock goes down, you are losing money. 

But if you are buying an ETF which tracks a basket of 5 stocks, your risk will be spread and even though one or two will perform poorly if the others have a good performance, the risk will be balanced.

Investing in a fund

It is also imperative to understand that ETFs are created by banks. When you buy an ETF you are basically buying a portion of the fund behind it. 

The fund is the one who invests in the assets contained by that particular ETF. We must also mention that ETFs are regulated instruments. 

Each bank that wants to create them needs to send the proper documentation to the Securities and Exchange Commission for approval. Only if they receive the approval they can move along and create the fund.

How Investing in Annuities Can Better Set You up for Retirement

In the world of retirement and estate planning, annuities seldom get the recognition they deserve. When set up and funded correctly, annuities can be a very sensible strategy for individuals heading into retirement. 

These insurance contracts share very few similarities with 401(k) plans and individual retirement accounts, but they are certainly worth considering. Here are four things you should know about annuities and retirement:

How to Understand Annuities

In essence, annuities are insurance policies that promise future payouts. One of the main differences between annuities and a homeowner’s insurance policy, for example, is that the payout is not contingent upon loss. 

You can purchase an annuity now with the full expectation of payouts later in life; you do not have to suffer a loss. The money you will receive in the future is agreed upon, and it may consist of a lump sum payment or periodic disbursements.

Advantages of Annuities

Unlike investment funds, annuities do not present future windfall scenarios tied to the potential performance of financial securities. While it is true that individuals who invested in 401(k) plans tied to the S&P 500 since 2010 have realized handsome gains, this is never guaranteed. 

Annuities are part of a more conservative type of financial planning. The goal of annuities is to generate future income after you retire. During bull market runs, an IRA plan will grow in value and allow you to make nice withdrawals; however, the opposite will happen in bear market conditions. 

Depending on how you structure your annuities, you will be able to enjoy greater certainty of your retirement income.

How to Buy Annuities

Since annuities are a mix of investment securities and insurance contracts, they can be purchased from banks, brokers, financial planners, and insurance agencies. Your best best is to purchase annuities from your financial planners. 

Annuities are marketable financial instruments, which means that you can sell them when the time is right, but certain fees and penalties may apply.

Types of Annuities Available to You

There are three main types of annuities: fixed, indexed and variable. The latter is regulated by the Securities and Exchange Commission while the former two are regulated by the insurance commissioner of your state. 

As its name suggests, you a fixed annuity guarantees a fixed amount of payouts for a declared period. An indexed annuity is tied to the performance of financial benchmarks such as the Dow Jones Industrial Average. 

With a variable annuity, you can choose to grow your money in various mutual funds, but the amount of your payouts may fluctuate.

In the end, you should strongly consider including annuities in your portfolio. As with other retirement planning strategies, setting up annuities at an early age is highly recommended.

Finding a Balance Between Spending, Investing and Saving

It can be difficult to decide what would be considered a ‘sensible’ use of money. Naturally, most people try to save whatever money they have left over after paying for all of the essentials each month. 

However, though saving money is important, it is not the only good use of each months paycheck. You need to find a balance between saving, spending and investing, so that you can get the best use out of your money. 

If you have never considered what benefits investing could have for you, or if you are wondering what the best way to save some of your money is, then here are a few tips for you.

Investing

Investing money is a great way to profit from your assets, with minimal work involved. To invest in the stock market, all you need is a small amount of start-up capital. 

From that starting point, you can then find a broker, and most of these are available online or even through apps nowadays. Of course, the stock market is not the only way that you can invest your money. 

You could instead invest in the real estate market, or in a local business or new startup company: where ever you feel your money is most likely to profit, with as minimal a level of risk as possible.

Spending

Of course, when you get your paycheck, you immediately factor in expenditure on the essentials: food, bills, items that the kids desperately need, etc. 

That is universally considered to be a sensible use of a person’s wages. 

However, sometimes it’s okay to put a little money aside to do something fun. After all, you work hard, and that deserves some reward! 

As long as you budget carefully, you might find that you can put fifty dollars or so aside each month to go to the cinema, treat the family to a fun trip out, such as to an Escape Room, or take everyone to a family dinner. 

Even if you don’t have enough to do that every month, you could always save some money over a longer period of time specifically for this purpose.

Saving

As well as saving up for family days out, it’s also important to keep saving for a number of other reasons. 

While saving won’t give you the same returns on interest as investing would, invested funds are a lot less accessible than saved funds, and you may need a store of money to turn to at one point or another. 

Perhaps the car breaks down, or the heating stops working: in these instances, you will need cash to hand in order to get the problem fixed quickly and easily. Therefore, make sure to keep some money aside which you know you will only spend in emergency situations, and that you are not going to invest. 

It is a good idea to keep this allocated money in a separate account, as that way you are less likely to spend it, either accidentally or on purpose.