A Personal finance blog to get rich
Increasing your annual returns by just 1% over 30 years could raise your total returns by nearly 32%, while a 2% improvement would result in a 72% increase. These small improvements each year are powerful because of the magic of compounding.
Whether your ultimate objective is income generation or long-term growth, you can benefit from using three key methods to boost your returns. Most investors fail to use these approaches and miss out on easy gains.
Are you new to trading and investing? If so, you’ve probably curious about what types of things you can trade. Besides standard forex currency pairs, there are actually plenty of interesting choices for new and established trading enthusiasts.
This is true whether you are primarily aiming to invest and grow a long-term portfolio or make a profit on short-term activities like swing or day trading. Regardless of your personal preferences, budget, location, or experience level, the world of investing is diverse, interesting, and wide open.
Hope you haven’t frowned seeing the title. Many invest in stocks out of compulsion or impulses. This article is for those. I generally tend to write about people who are like me, middle class, having some money to enjoy life but, mostly trying hard to maximize money’s worth.
People like us, do not usually have money for buying stocks on impulse. Still, it almost happened to me last week. I was on the verge of buying into Facebook on an opening day.
In the end, I did resist buying Facebook stock. Not that Facebook is a bad investment but, the whole affair was nothing else than impulse buying. I didn’t study the valuation, I wasn’t reading analyst reports. I was just buying it, for the sake of it. Giving in to the hype and hoopla.
I am sure you’re anxiously seeing the stock indices volatility and gross downturn past few weeks. Is it abnormal? Naturally, stocks do vary. For example, there are dividend stocks or defensive stocks. A good beginning stock is dividend stocks which give buyers a long-term return. A defensive stock is a good beginning stock for a long-term investment like water, electrical, or utility stocks.
I am not panicking with the recent market downturn. Neither should be you. We need to understand how these markets work. The loss you are seeing now re all paper loss, you don’t make a loss till you sell your positions. I am holding tights on to my stocks and funds.
I personally trade stocks very rarely and try not to advise my readers to trade. But those who can afford to trade, that is taking on more risk, can do well by reading about the trading first before venturing into the field. it’s always better to do your homework before you start stock trading
There are a lot of stock trading books out there which could already equip you with all the things you need to know about the stock market and the career in itself. In this article, we highlighted the top six books on stock trading that every successful trader has already read – and you should, too!
I was once an avid self-investor. I used to be the investment advisor for my colleagues. I was successful at it, till I compared my return with that of some mutual funds I bought on the side. It was a pleasant awakening; I was nowhere close to their performance. Then came 2008 when I watched my investments in Washington Mutual bank stocks disappear within few minutes, in front of my eyes!
It didn’t take it long to realize I was not a great expert in stock picking. Fund managers were far better. Since then all of my new investments have been either in Mutual Funds or in Exchange Traded Funds. Not only these two, there’s another kind of fund that is still out of my reach, for not having enough investible asset, the Hedge Funds.
Trading penny stocks is considered a risky business for many and there are reasons why this is true and reasons why it is still a good option for making money. Experts define penny stocks as company shares below $5 each. Even though beginners start trading with these cheap stocks, they experience the volatility and risk immediately. However, before you start investing, take heed of these common precautions to start trading in a prudent and reasonable way.
Trading in itself is a risky proposition, trading in penny stocks is more so. Low liquidity, dependence on momentum and manipulative nature makes penny stock trading a riskier option than normal stock trading on stock exchanges through your broker.
To date, my biggest stock trading mistake was to put all eggs in one basket, meaning I invested in a single company again and again, Washington Mutual to be particular, while the price was falling down. When the WaMu was declared bankrupt I had a major loss. I attribute the loss to speculation and over confidence – too big to fail confidence. I had a dream of being rich with WaMu shares, one day!
Although practically everyone who decides to start trading goes in with dreams of success, there are plenty of common mistakes that traders of all levels make. Discover these four deadly stock trading mistakes to make sure you know what not to do when trading to increase your chances of success.
If I say finance is pretty much a mind game, would you agree? You are financially as fit as you manage the balance between your income and spending. Your future will also depend on how well you manage risk to get higher return of your investment. Saving the money in retirement account or going for an expensive vacation is all about mind game. Similarly buying individual stock vs. buying index fund is also a mind game.
So, when you start with online stock trading, how well you’ll perform depends on how well you play this mind game. Resisting temptation to buy one particular stock, which may be a risky decision, is a difficult mind battle you’ll have to win. One of my biggest financial mistake was to repeatedly invest in a falling stock, which ultimately went for bankruptcy.
Few months back I talked about forex trading, here is a guest post which compares Forex trading with stock trading. I am personally not a big fan of either. I am better off with index funds and mutual funds. Enjoy the post if you have risk appetite for trading.
Forex trading chart
Forex trading and stock trading are two different forms of financial trading. They may both represent two different ways to make money from the financial markets, but they have some subtle differences which may or may not work in the trader’s favor.
