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Nasdaq Trading Hours & Basics: How to Trade the Nasdaq 100

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NEW YORK CITY - JAN 2: Times Square, New York street night life January 2, 2008, New York City. New York City, which is the largest and most populous city in the United States.

Anyone who is looking to find ways to use their money to make money has probably heard about the stock market. There are lots of different stock market exchanges to choose from. While the New York Stock Exchange is one of the most popular, another option is the NASDAQ Stock Exchange. The NASDAQ is a global electronic marketplace where investors are able to buy and sell different types of securities. In 1971, the NASDAQ Market was created by the National Association of Securities Dealers. The purpose of the NASDAQ is to enable investors to trade Securities using a fast, transparent, and computerized system. Also referred to as the NASDAQ Composite, this is an index that contains more than 3,000 stocks that are listed on the exchange. Some of the biggest companies in the world, including some from Hong Kong, are traded on the NASDAQ Stock Exchange. A few of the biggest examples include Intel, Amazon, Microsoft, Apple, Google, and Oracle. For this reason, anyone who would like to learn more about this stock market and the exchange should keep a few key points in mind.

NASDAQ Trading Hours: An Overview of Regular and Extended Hours Trading

When it comes to trading on the NASDAQ Stock Exchange,  it is important to know the market hours of the exchange. Like most other stock exchanges in the local area, the NASDAQ is open for six and a half hours per day. Regular trading hours takes place from 9:30 a.m. to 4 pm. There are also extended hours available as well. The extended hours trading takes place before and after the hours listed above. Pre-market extended hours take place from 4 a.m. to 9:30 am even though most pre market trading takes place closer to 9:30. After market hours trading takes place from 4 p.m. to 8 pm. This is a great opportunity for traders to buy or sell that last stock during an extended hours trading opportunity. In this manner, the NASDAQ provides added stock trading flexibility using additional hours trading sessions.

Even though most people are only able to place orders during normal trading hours or regular hours, there are also ways  for people to get approved to execute stock trading outside of regular hours. Those who are interested in swapping stocks outside of regular trading should speak to a professional about lengthening their trading day. Next, it is important for everyone to learn the different stock market order types of taking place on the NASDAQ.

The Types of Stock Market Orders Placed on the NASDAQ Composite

In general, when it comes to the NASDAQ exchange, there are two major types of orders that all traders and investors should keep in mind. They are referred to as a market order and a limit order.

Market Order

The most common type of order is the market order. In the eyes of most people, a market order is the most basic type of trade that could be executed. This is an order to either buy or sell a stock immediately and at the current price. If someone takes a look at the ticker symbol of one of the companies on the NASDAQ and likes the price, then he or she could place a market order to buy it immediately. In general, when people place an order for a stock, they are going to purchase that stock at or near the posted asking price. On the other hand, if someone is getting ready to sell a stock, then he or she is going to receive a price at or near the bid that has recently been posted.

It is important to note that the most recently traded price is not necessarily the price at which the market order is going to be carried out. While it is fast, if the market is particularly volatile, then the price at which the order is filled, or executed, could deviate from the most recently seen price. Therefore, market orders do not necessarily guarantee a price, but they do make sure that the order is carried out as quickly as possible.

On the whole, market orders are popular among individual investors who are trying to buy or sell a stock without experiencing any delays. The good news is that the NASDAQ is traded electronically, ensuring that orders are carried out as quickly as possible, even on Friday. The biggest advantage of trading using a market order is that the trade is guaranteed to be filled quickly. Even though the investor might not know the exact price at which the stock is going to be purchased or jettisons, market orders that are likely to trade tens of thousands of shares per day are going to receive prices that are very close to the post a bid or ask.

Limit Order

The other big category of order that someone might place on a NASDAQ is referred to as a limit order. Also called a pending order, this allows investors to place orders that are carried out at specified prices in the future. This order is not going to be carried out until the price of the stock reaches a specified level. If the price is not reached, then a limit order could end up expiring.

There are four different types of them at orders that someone might like. These include:

  • Buy Limit: A buy limit order is placed to purchase a security at or below a specified price. This means that the order is placed below the current bid of that specific stock. If a stock falls to that price, the order is carried out.
  • Sell Limit: A sell limit order is placed to sell a certain stock at or above a specified price. In order for this trade to be carried out, the order has to be placed above the current posted price. 
  • Buy Stop: This is an order that is placed to purchase a certain stock above the currently posted price. This stop order is only going to be placed once a certain price has been reached, also known as the stop level. 
  • Sell Stop: A sell stop order is an order to sell a stock at a price that is below the current price of the stock. This order is only going to become active once the specified stop level has been attained.

This is a brief overview of the various orders that someone might be able to place on the NASDAQ Stock Exchange. It is important to think about these orders carefully when deciding when to carry them out.

The NASDAQ Stock Exchange as an Investment Vehicle

Overall, the NASDAQ is a large stock exchange that has thousands of investment opportunities for investors. It is a good idea for investors to become familiar with the stocks that are traded on this stock exchange, as it is one of the biggest exchanges in the world. Those who are able to plan their Investments carefully have the opportunity to generate significant returns using the stock market.

 

How to Day Trade Cryptocurrencies Without Losing All Your Money In the Process

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With the cryptocurrency reaching new heights in the past months, both long-term investors and day traders have entered the crypto market.

 

While long-term traders see the potential of holding their coins for extended periods, numerous investors are now seriously considering cryptocurrency day trading as the more lucrative option:

 

  • Cryptocurrency has high price volatility and trading volume.
  • The Crypto market is open 24/7.
  • Multiple trading opportunities occur in a period of a few hours.
  • Trading of cryptocurrencies allows for massive trades with minimal overhead.

 

In truth, trading Bitcoin (BTC) is now considered more rewarding than any other traditional asset, including stocks, gold, & oil. Since BTC is highly volatile compared to other assets, multiple trading opportunities come up in a single day–creating potentially lucrative outcomes.

 

Day Trading Cryptocurrency means entering and exiting market positions in less than 24-hour periods.

 

Put simply, day traders use strategies and analysis to predict market movement and make profits only within a few hours, sometimes as fast as a few minutes or seconds. This is called intra-day trading.

 

Well-researched day traders can successfully exploit short-term price movements and volatility to maximize their profit.

 

Since the crypto market allows multiple intra-day investment opportunities, it can be made into an extremely lucrative career. That being said, it is also a high-risk business.

 

Financial analysts recommend investing no more than 1% of an investment portfolio on a single trade.

 

What does it take to be a crypto day trader?

 

Successful day traders know that thorough research and understanding of the market is critical to pull a sizable profit. Before engaging in the market, investors must have a solid plan established–based on meticulous technical analysis that considers volume, chart patterns, price movement, and other technical indicators.

 

Day traders will aim to profit on market volatility. High liquidity is critical for these lightning-speed changes in positions. A few seconds delay in a single trade may cost a day trader thousands of dollars.

 

Potential Earnings

 

While it is certainly a risky business, this strategy has the potential of being significantly profitable and lucrative.

An essential factor to consider in your earning potential is if you are an independent trader or work with an institution such as a bank or a hedge fund.

 

Day traders that work in an institution have access to advantageous information and tools. On the other hand, individual traders have limited access to platforms and software while risking their own capital.

 

It is hard to estimate potential earnings as it will depend highly on your starting capital. An ambitious estimate would be a capital return of 100 to 200 percent per month.

 

A Few Notes Before Getting Started

 

Before diving into crypto day trading, be sure that you have a firm understanding of how the market works.

 

  1. Watch out for relevant news

 

Crypto trends are sensitive to relevant news such as institutional support, hacking,  and government regulations. Take advantage of the current news to make appropriate decisions on your portfolio.

 

  1. Practice different methods of analysis

 

Technical analysis of previous price charts is necessary to recognize patterns and successfully predict future price movements. This will give you a considerable edge when making intraday transactions that require rapid decision-making and execution.

 

  1. Do your research

 

There is no shortcut or magical solution for successful investments.

 

It is also crucial to study trading performance and metrics. To make sound predictions and informed decisions, it is necessary to carefully consider the number of active/inactive wallets and the current trading volume.

 

Before making your first trade, remember to consider these cryptocurrency characteristics:

 

High Volatility

Day trading can be a very lucrative business due to high price volatility. Since cryptocurrencies are a new asset class, significant price movement can occur within a short period.

 

Before making a move, be sure to have made a thorough reading on price volatility.

 

High Liquidity

Before choosing to trade Bitcoin or an altcoin, ensure that you have done a thorough analysis of its liquidity.

 

High liquidity will allow investors to make instant changes to their market position. Missing the right timing due to low liquidity can lead to substantial slippage and massive losses.

 

Crypto Day Trading Strategies

 

It is critical to develop the instinct for recognizing rapid profit opportunities. Unlike the traditional investor looking for long-term growth prospects, intra-day traders should learn to leverage solid strategies for rapid, short-term gains.

 

Here are time-tested strategies to ensure capital gains:

Swing trading calls for a combination of day trading and position trading, focusing on technical analysis. Investors should be on the lookout for resistance or support levels, then try to recognize bearish and bullish trends on the brink of reversal before striking the market.

 

The right timing is key for the successful execution of this strategy. While the Swing strategy may promise massive returns, it is also highly risky. It may be better left to investors with more market experience.

 

Scalping involves taking advantage of small price movements within a short time frame. These may occur as gaps due to liquidity, the bid-ask spread, or any other price discrepancies.

 

Investors who use this strategy often trade on margin or futures contracts to increase their leverage. Proper assessment of margin requirements and position sizing is key to using this strategy effectively.

 

Order book analysis and volume heatmaps are common tools for analysis.

 

This is an extremely fast-trade and high-risk strategy and may be best for experienced investors.

 

Range trading is a straightforward strategy that may easily be applied by beginners. It involves a simple candlestick chart analysis and the consideration of support & resistance levels. Support and resistance are key concepts to exercise proper risk management.

 

Traders will most likely buy the support level and sell under the resistance level. Range traders anticipate when the market breaks out of range; setting- up a stop-loss limit is necessary to prevent any significant losses if prices suddenly drop.

 

Crypto day trading requires rapid decision-making and execution. The process may be stressful and demanding due to the high risk involved.  A deep understanding of the market and thorough risk-assessment is necessary to become a successful investor.

 

Why Should Someone Work with an SEO Company?

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Today, when someone is looking for products and services, they tend to use the internet for help. Therefore, it is critical for companies to make sure they have a strong presence in the online world. This is where search engine optimization can be helpful. Usually shortened to SEO, this is the process of crafting an online presence that is attractive to search engines. Because people tend to click on one of the first few links in their search results, it is important for companies to make sure they land as high on this list as possible. At the same time, a lot of businesses are deciding to outsource their digital marketing and SEO needs to professional firms. What are some of the advantages of working with an SEO company?

Working With a Professional SEO Company Saves Time

One of the first reasons why businesses are deciding to partner with a professional SEO company is that this can save them a lot of time. There are a lot of changes that are taking place quickly in the world of search engine optimization. It takes a lot of time and effort to keep up with these changes. Business managers have a lot on their plate and they would probably like to free up the time of their professionals to work on other aspects of their business.

That is for working with an SEO company can help. By outsourcing SEO needs to trained professionals, businesses can focus on recruiting talented employees, stocking up on inventory, and brokering more business deals. The most valuable resource of any business is time and it is important for professionals to use their time wisely.

Improve Branding in the Digital World

Today, the digital world is all about branding. There is never a second chance to make a first impression. As a result, businesses need to make sure their first impression is a good one. This is where branding is helpful. A trained SEO agency knows how to brand a business appropriately. By taking a look at a wide variety of SEO factors, an SEO company can figure out exactly how a company is branding itself. Then, they can take a look at the company’s online reputation and decide what steps should be taken to improve it. By improving the branding of a company in the digital world, they will drive more traffic to the company’s website.

Increase Sales with the Help of an SEO Agency

Finally, the biggest reason why many companies are relying on a professional SEO agency is that this increases their sales. An SEO agency can help a company land at the top of the list consistently for keywords that matter. With more traffic heading to the company website, there are more leads generated. This increases conversion rates, leading to more sales. All of this can help a company improve its revenue. Businesses that are looking for ways to boost their sales numbers should work with a professional agency.

Consider Working with a Professional SEO Company

These are just a few of the biggest reasons why so many companies are deciding to work with a professional SEO agency. If you run a company and you would like to get more out of your digital marketing investment, then you should consider working with an SEO company as well. This can free up time that you can spend working on other areas of your business while you maximize the return on your digital marketing investment.

Marketing and Investments Go Hand in Hand: Growing a Business

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There are a lot of challenges that come with getting a business off the ground. It is not easy to start a small business and being an entrepreneur comes with its obstacles. Therefore, it is important for everyone to understand a few basics when it comes to starting a company. One of the most important points that people need to consider is that marketing and investments go hand-in-hand.

The Future of Marketing Is Digital

One of the most important points that people need to keep in mind is that the future of marketing is digital. Even though it is important to approach marketing from a comprehensive perspective, digital marketing needs to be at the core of most marketing plans. The reality is that the vast majority of people are going to turn to the internet when they are looking for products and services. They are going to visit a search engine, enter a query, and see what comes up. Therefore, for those who are starting a business, it is critical to have a strong online presence.

There are a lot of components that have to be included when it comes to a digital marketing campaign. This includes search engine optimization, content marketing, website design, pay-per-click campaigns, and social media marketing. It is critical for everyone to think about how they are going to allocate their marketing resources. They need to make sure they target the right market. Even though businesses would like to make a customer out of everyone, companies that try to target everyone are going to simultaneously target no one.

Marketing Also Targets Investors

Another major obstacle that companies need to overcome when they are starting out in bars capital. The reality is that companies are not going to be able to get off the ground if they do not have capital. This is another area where digital marketing is helpful. Digital marketing is a great way to communicate information about new products and services that a company is offering. In addition to using this information to recruit customers, this is also a great way to catch the eye of potential investors.

Companies that are able to put their best foot forward when it comes to sharing information about their products and services could pique the interest of powerful investors. This can provide companies with the money they need to conduct more product research, increase the inventory, and put more money back into the digital marketing campaigns.

Increase the Power of Digital Marketing with Trained Professionals

One of the biggest challenges that business owners are going to have to overcome involves the limitations on their time. It is going to feel like there are never enough hours in the day. Therefore, a lot of business owners are outsourcing their marketing needs to trained professionals, such as the team from GR0.

The world of marketing is changing quickly. Search engine algorithms are changing all the time. Keywords are changing constantly as well. Because the expectations of customers are higher than ever, it is important for companies to make sure they rise to meet them. This is why working with trained professionals in the world of digital marketing can be helpful.

Growing a Business Is a Rewarding Experience

Nobody has said that starting a small business is easy. At the same time, business owners that are able to rise to meet this challenge will find that this is a rewarding experience.

How Can I Succeed in Starting a Small Business Today?

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There are lots of people who are looking to start a small business. The reality is that it is an incredibly fulfilling experience to build a small business from the ground up. At the same time, the vast majority of small businesses are going to fail. Even though the numbers might look bleak, everyone has an opportunity to succeed. Therefore, before starting a small business, potential entrepreneurs need to make sure that they placed themselves in the best position to be successful. How can entrepreneurs build a small business that succeeds in today’s environment? There are a few key points to know.

Understand Your Strengths and Weaknesses

Every entrepreneur has to make sure that they understand their own strengths and weaknesses. Then, they need to find a way to build a business that place is their strengths in a position to be at the forefront of the company. Furthermore, entrepreneurs also have to make sure they conceal their weaknesses either by hiring other people to handle these issues or by outsourcing them to a specialized third-party.

For example, the vast majority of marketing takes place on the internet. Without a background in Information Technology, many entrepreneurs are not going to understand the ins-and-outs of the internet. Therefore, a lot of small business owners decide to outsource their digital marketing needs to trained professionals, such as the team from GR0. That way, they know their digital marketing needs are being taken care of it while they free up their time to focus on other issues.

Build the Business Around Your Passion

Building a small business takes time, there are going to be lots of long hours, late nights, and weekends that are missed. Therefore, it is critical for everyone starting a small business to make sure they construct their small business around something they are passionate about. For example, those who are passionate about physical fitness to try to build their small business around this passion. Entrepreneurs who are passionate about food should try to start a small business with this at the forefront. There is a saying that if someone loves their work, then they do not work a day in their life. This is the approach to take when it comes to starting a small business.

Focus on Your Target Market

The goal of every small business is to make money. Therefore, it is important to recruit as many customers as possible. At the same time, businesses that try to target everyone will simultaneously target nobody. With this in mind, small business owners need to figure out who their ideal customer is. This includes age, gender, socioeconomic background, and occupation. Then, they need to target these individuals with their marketing strategies. In some cases, small business owners may need to ask for help to conduct target market research. There is nothing wrong with that. Every business owner needs to make sure that their capital is being spent wisely.

Build a Small Business from the Ground Up

These are a few of the most important tips that everyone should keep in mind if they are looking to build a small business. No business owner should be afraid to ask for help. Even though there is something special that comes with building your own business, nobody is able to succeed without the help of others. Small business owners need to focus on their strengths and build the company around them.

 

How Should I Use the Money I Get from My Investors?

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For those who are looking to build a small business, there are a number of obstacles that have to be cleared. One of the biggest challenges of getting a small business going involves raising capital. Without capital, even the best of ideas do not have a chance of succeeding. Lots of entrepreneurs who are starting a small business dip into their personal savings for assistance. They might even ask family members and friends to loan them money. Eventually, the money is going to run out. Then, they are going to turn to investors for assistance. How should people use the money they get from investors to grow the business? There are a few key points to note.

Do Not Overlook the Importance of Marketing

One important part of growing a company involves marketing. Marketing is just as important today as it has been in the past. The reality is that marketing takes money. Whether this involves TV commercials, radio ads, or billboards, this is going to come with overhead expenses. In this situation, it is a good idea to partner with professionals to understand the ends and outs of digital marketing. Today, the vast majority of marketing takes place online. By partnering with specialists in this field, such as a team from GR0, businesses will be able to let everyone know that they have a high-quality product or service they can provide.

Look for Potential Real Estate

Most companies are going to need a physical location out of which they operate. Therefore, it is important to use some of the money that comes from investors to invest in real estate. Every business has slightly different needs when it comes to commercial real estate. Some people might be looking for an isolated location that provides privacy. Other businesses might be looking for something that is located in a strip mall. Regardless, it is important for small businesses to make sure they have enough space to run their operations. Remember that as the business grows, real estate requirements are going to have to scale up as well. Make sure to spend this money wisely, as real estate is a valuable investment for most companies.

Increasing Inventory

In addition, it is important for companies to make sure they have enough inventory to meet the needs of their customers. Particularly for those who sell physical products, it is important to make sure they can fulfill orders as quickly as possible. No company wants to keep their customers waiting. If customers are kept waiting for their orders, they are likely to turn to a competitor instead. With this in mind, entrepreneurs need to make sure they take the money they get from investors and build up their inventory. There is a delicate balance between having too much inventory and having too little inventory. Therefore, it is important to take a look at historical orders and find the right balance when it comes to inventory.

Spend Money From Investors Wisely

Every business requires capital to stay afloat. Often, this capital comes from investors. It is critical for small business owners to think carefully about how they are going to spend this money. After all, if a business proves that it is able to generate a solid return on the money it gets from its investors, this is only going to recruit more investors to the table. This is how a business can grow.

What Are the Red Flags To Look For When Applying for a Job with a Company?

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Applying for a job is never easy. People have to send in an application, go through multiple rounds of interviews, and then negotiate for fair compensation. In addition to companies interviewing their candidates thoroughly, it is also important for candidates to interview the company thoroughly as well. Even though everyone wants to make sure they get a good job, nobody wants to end up in a job they hate. Therefore, there are a few red flags that everyone should look for when they are in need of a job.

A Job Description That Is Incredibly Vague

One of the most common red flags that people need to look for involves a job description that is vague. Everyone has to make sure they know exactly what they’re going to be doing before they apply for a job. After all, this is the only way they are going to know whether or not they are qualified. Furthermore, it is important for people to have a clear description of their scope of duties. That way, the company cannot come back later and ask them to expand their scope unfairly. Therefore, if the job description is vague, and this is a sign that it might be a good idea to stay away from the position.

An Opening That Has Been Up for a Long Time

There are a lot of people who do their job searches online. Sometimes, it is possible to see how long an opening has been available. If the opening has been there for a long time, and it is important for everyone to figure out why. Sometimes, a job might have been available for a long time because people simply do not want it. Why would someone not want to take the job? At the compensation and appropriate? Is the company incredibly picky about who they want for the position? Similar to a house that has been on the market for a long time, a job that has been open for a long time could be a red flag.

A Lack of Communication

When someone understands that they are in the mix for a potential position, it is important to make sure there is plenty of communication. If there is a lack of communication, then this could be a sign of an unprofessional company. If a company is unable to communicate regularly with its candidates, how is the company going to be able to keep in touch with its employees? What does this mean for the people who work there? These are a few of the key points that people need to note as they go back and forth with a company. On the other hand, if the company is open with their communication, such as the team from GR0, this is a good sign.

A Company Culture That Focuses Solely on Work

Every company wants to be productive; however, this productivity cannot come at the expense of the health and well-being of its employees. Therefore, it is important for every job candidate to get a feel for what the company culture is like. If the company culture focuses solely on work and nothing else, then this is a sign that there is a poor work-life balance with the company. On the other hand, if the company is flexible and willing to meet the needs of their employees, then this is a sign of positive company culture.

5 Reasons Why Cryptocurrencies Seem to Be Making a Comeback

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While the coronavirus outbreak continues to uproot traditional stocks and assets, cryptocurrencies have only proven to be resilient during these unpredictable times.

 

As the pandemic continues to worsen, and businesses are forced to follow stricter regulations, how does the cryptocurrency market continue to thrive despite social, political, and financial unrest?

 

  1. Cryptocurrencies Prove Resilience from the Global Pandemic

 

Although Bitcoin value decreased along with the sudden dip in the global economy in March, Bitcoin was able to bounce back faster than any other global asset.

 

Bitcoin value significantly increased by 40% since the height of the pandemic and has consequently gone up by 24% since the beginning of the year.

 

This digital asset was able to find a natural bottom. It was able to recover and normalize price movement in the following weeks– proving to be a highly resilient and self-correcting market. This encouraged investors to start converting their traditional assets into digital assets.

 

The cryptocurrency monetary system allows it to be immune to economic fluctuations.

 

This asset continues to make transactions directly between buyers and sellers only, making it impossible for assets to be controlled by third party organizations and the government. This makes cryptocurrencies highly resilient from social and economic instability and unrest.

 

Additionally, the logistical constraints and lockdowns concerning the coronavirus pandemic may even be favorable to cryptocurrencies, as transactions are completed online. Investors who have previously chosen to make physical transactions via cash find trading bitcoins online the safer and more convenient option.

 

 

  1. No Barriers For Entry

 

For investors having difficulty entering the market, digital assets are a viable investment option as it involves minimal restrictions and requirements.

 

While several brokers and assets would require a minimum capital outlay, cryptocurrency investments allow small trades–sometimes as low as a single share.

 

Unlike stock trading, no certificates and licenses are required. Opening and maintaining an account is easy and user-friendly– simple visit one of the many available cryptocurrency platforms online.

 

  1. Trading is Simple and Consumer-Friendly

 

Trading cryptocurrencies is extremely simple and consumer-friendly. Direct and personal transactions take place between the buyer and the seller.

There’s no rocket science involved– buy or sell a bitcoin, or choose to save it up in your waller.

 

Transactions and liquidation are also instant, unlike stock trading. This is an essential characteristic for investors who need to make time-sensitive decisions of entering and exiting the market.

 

Several trading platforms and online brokerages have made it extremely easy for consumers to make transactions through applications and websites. These were specially designed with the consumer in mind, allowing for multiple types of digital assets, currencies, and deposit methods.

 

The existence of these platforms also allows cryptocurrencies to be a highly liquid market. Cryptocurrencies can instantly be traded into cash, making it a stable option for either short-term or long-term individual trade.

 

  1. Wall Street Is Going Crypto

 

Wall street legends claim that cryptocurrencies have provided a significant hedge against the predicted inflation caused by the coronavirus pandemic. Household names under the investment industry claim to have converted at least a quarter of their wealth on Bitcoin and cryptocurrency investments.

 

According to the Grayscale Investments Q1 2020 Earnings report, 88% of all Bitcoin investments in the past quarter were made by institutional investors.

 

JPMorgan, the largest bank in the U.S., has made headlines after the company recognized the considerable long-term potential of the cryptocurrency market. The bank now processes cryptocurrency transactions and has offered banking services to leading crypto exchange platforms, Coinbase and Gemini.

 

Paypal also made headlines as the company launched a new service that enabled users to buy, sell, and store cryptocurrency directly from Paypal accounts. Cryptocurrencies may now be used to pay for purchases at over 28 million stores worldwide.

 

Financial analysts continue to vouch for the potential of cryptocurrencies in the global market. This is further strengthened by the 2020 record inflows of Grayscale’s cryptocurrency funds, with capital inflows totaling $503.7 million.

 

A Grayscale Bitcoin Trust of $388.9 million has also made it more attractive for institutional investors, allowing the purchase of bitcoins to be as reliable as any other over-the-counter asset.

 

  1. Feasible Long-term Investment

 

Cryptocurrencies (particularly Bitcoin) have proven to beat other assets, including gold, stocks, and oil, in year-to-date returns, proving to be an investment that is worth giving considerable notice.

 

Cryptocurrencies are still considered a highly volatile market, so short-term investors of 5 years or less should look for a different option. This means that price movement is rapidly changing, and conditions are highly likely to fluctuate in a short amount of time.

 

On the other hand, asset value can also dramatically improve and bring considerable profit.

 

It is essential to remember never to invest more than you can lose—only trade cryptocurrencies on safe and reliable trading platforms that provide security and insurance. A sudden drop in price movement can only be tolerated by long-term investors with considerable savings.

 

How to Build a Long-term Cryptocurrency Portfolio

 

Before building your portfolio, remember to carefully analyze the market and make a careful decision on a potentially rewarding investment option.

 

  1. Choose a Cryptocurrency

 

While core cryptocurrencies such as Bitcoin continue to make a mark, many other alternative options are worth taking into consideration.

 

Look for a digital asset that suits your particular financial needs and goals. Make sure to carefully look into its reputation and social networks.

 

2. Analyze and research market trends and approach

 

Before going into any investment, remember to look into the brand’s vision, approach, and development.

 

3. Check market capitalization

 

The higher the market cap, the lower the risk for investors.

 

4. Portfolio Diversification

 

Successful investments are possible by carefully making decisions on different assets that can benefit your portfolio in the long run. For long-term investors who can handle the financial risk of cryptocurrency volatility, incorporating several crypto assets into your portfolio will ensure that you have your bases covered.

 

Remember, though, to never bite more than you can chew.

 

5. Use a Cryptocurrency Portfolio Tracker

 

Numerous websites and applications have now made it extremely easy for consumers to get real-time and insightful information on their assets.

 

These platforms were specifically designed to be comprehensive and consumer-friendly tools for the general public, providing multiple options in terms of currency and deposit methods. Aside from easy application and account maintenance, liquidation is also instantaneous.

 

While investment in cryptocurrencies may daunting due to the risk of volatility, long-term investors who can handle the financial risk should seriously consider incorporating digital assets into their portfolios.

 

Cryptocurrencies are a good investment for investors willing to take a chance on the inevitable emergence and potential of financial technology.

How to Invest In a Bitcoin IRA (Pros and Cons of Bitcoin IRA)

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While the coronavirus outbreak has continued to uproot traditional stocks and assets, Bitcoin (BTC) and other cryptocurrencies have only proven their resilience during these unpredictable times.

 

Investors are taking advantage of this seemingly resilient nature of BTC and other cryptocurrencies while fluctuations in the global economy are affecting traditional stocks.

 

Since the beginning of the coronavirus pandemic, more than half of U.S. investors (55%) are inclined to start investing in BTC. This would roughly translate to a potential U.S. market of 32 million Bitcoin Investor Households.

 

While BTC investments have increased by 83% since the beginning of the year, investors are still reluctant to include cryptocurrencies in their retirement plans due to the apparent volatility and erratic price swings of digital assets.

 

Though this is the case, several financial services are now seriously looking into cryptocurrencies as the ideal investment for retirement through self-directed Individual Retirement Accounts (IRAs). This is due to the apparent volatility and erratic price swings.

 

Since 2016, Bitcoin IRA– the trailblazing platform that allows the purchase of digital assets into their retirement accounts– has processed a staggering $400M in cryptocurrency transactions and has opened over 50,000 consumer accounts.

 

Considering the potential risk of cryptocurrencies and the sensitivity of retirement accounts, let’s dive deep into the real question: Should you be investing your money in Bitcoin IRA?

 

What is Bitcoin IRA?

 

In simple terms, Bitcoin IRAs allow investment in digital assets (cryptocurrencies) using retirement savings. These types of IRAs are self-directed retirement accounts offered by financial services in the U.S.

 

Bitcoin IRAs allow investors to diversify their retirement funds through a wide range of asset classes–from alternative assets such as gold, real estate, and cryptocurrencies to traditional stocks and bonds.

 

A Tool for Diversification

 

More than anything, cryptocurrency provides diversification to an investment portfolio.

 

Cryptocurrencies, unlike other diversification tools, are highly asymmetrical investments. This means that the potential for reward or upside potential is much higher than the downside risk. This makes cryptocurrency a highly attractive option for risk-tolerant investors looking to invest a portion of their portfolio to a high growth asset.

 

No Relation to Third-Party Organizations

 

All cryptocurrency transactions are controlled personally by buyers and sellers. This means that cryptocurrency values cannot be controlled by third party organizations and the government.

This makes cryptocurrencies highly resilient from social and economic instability and unrest.

 

Resilient to Economic Fluctuations

 

Since the initial dip in the global economy at the height of the COVID-19 pandemic in March, the Bitcoin value increased by 40% and has been found to have outperformed a significant number of global assets.

 

While Bitcoin prices dropped in March, it quickly bounced back faster than other traditional stocks and assets. A report by Coinshare emphasized that Bitcoin markets are highly resilient and self-correcting.

 

In a stress-test report by JPMorgan, BTC proved to be a viable long- term investment class.

 

As the coronavirus situation continues and businesses are forced to implement further restrictions, investors believe that Bitcoin is expected to see a bull run. It is noted to be increasingly correlated to the performance of the U.S. equities market.

 

As continued cryptocurrency price volatility continues to make headlines, cryptocurrencies are now ultimately associated with only a long-term growth potential. These investments would best be made by long-term investors who can ride out the significant price fluctuations.

 

Security and Privacy Regulations

 

As the cryptocurrency industry gains further market, The Office of the Comptroller of the Currency (OCC) and Securities and Exchange Commission (SEC) expressed its willingness to provide policy development and regulatory clarity to investors of cryptocurrencies, particularly stablecoin reserves. This is to provide cryptocurrency inventors some security from price volatility.

 

Tax Benefits

 

Bitcoin IRAs offer significant tax benefits.

 

Once you’ve set up a self-directed IRA, it is possible to maximize your retirement benefits by utilizing your tax-deferred returns. This means having a choice between trading bitcoins or saving it up for a long-term investment.

Under Section 1256, capital assets are taxed at 60 percent long-term and 40 short-term for capital gain or loss, regardless of the taxpayer’s holding period.

 

Decentralized System

 

Unlike most transactions that require chargebacks from middlemen, Bitcoin is completely decentralized. This makes it easier to verify all transactions since each fund transfer is only given the go signal after your permission.

 

A Quick Word of Caution about Bitcoin IRAs

 

Remember that Bitcoin IRA accounts are still undergoing development, and making this investment comes with an apparent risk.

 

Setting up your Bitcoin IRA may be done through two approaches:

You may opt to pursue a do-it-yourself approach when setting- up your Bitcoin IRA.

Only investors with significant background knowledge on cryptocurrencies, self-directed IRAs, and IRS regulations should pursue this option.

 

Partnering up with a professional company to set- up your Bitcoin IRA is recommended, especially for long-term investments.

 

Aside from price volatility and the erratic price movements, extra precautions should be taken concerning the following:

 

Cybertheft and Fraud

 

Setting up your own Bitcoin IRA account will put you at a greater risk of cybertheft and hacking. Professional companies may provide you with additional security from theft, fraud, and hacking.

 

Remember to go with a company that is fully-insured with each deposit.

 

High Fees

 

Fees concerning establishing and maintaining your account can significantly balloon. You should keep in mind the additional charges linked to opening an account, monthly or annual maintaining fees, purchasing assets, and fund transfers.

 

Additional charges concerning security and custody requirements should also be kept in mind.

 

Unpredictable and Speculative Investment

Cryptocurrencies are still considered to be an extremely volatile investment. These wide price swings make cryptocurrency investment a risky option for something as sensitive as retirement savings.

 

Enter at Your Own Risk

 

Many of the pitfalls can be successfully avoided by carefully doing your research on reliable bitcoin IRA providers.

 

It is essential to look for companies with strict cold storage protocols and full insurance policies to protect your investments from fraud, cybertheft, and hacking. Make sure that your IRA provider supports full insurance with every deposit.

 

Remember to always keep a well-diversified investment portfolio that specifically caters to your situation and financial goals:

 

  1. Short-term vs. Long-term Investors

Given the volatility of the cryptocurrency market, short-term investors (5 years or less) would best steer clear of this as a retirement investment.

 

An unexpected dip in price movements could ultimately delay your retirement and cost a considerable portion of your savings.

 

  1. Low-risk vs. High-risk Investors

Investors who can confidently allocate a small portion of their assets to a high-risk/high-reward should consider investing in Bitcoin IRA.

 

These accounts should only be handled by investors who can confidently afford to lose some of their finances should the asset take an unexpected dip in price movement.

 

Handling a Bitcoin IRA account would involve careful planning and research. Considerations based on security, compliance, and IRS-compliant transactions should be of greatest concern.

 

Bonds vs Stocks – What Are the Differences? Where Should You Invest?

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Investors are at all times suggested diversifying portfolios (between a bond and a stock), however, how are these two sorts of investment different from each other? These two, from time to time, have been paired collectively whenever being dealt with investments; however, yields, market behaviors, and possible risks own stark distinctions. And these terms in the finance world can at all times trigger confusion.

 

So, before placing your cash into either bonds or stocks, you must achieve a level of awareness of the differences between the two, so that you will know which of them you have to choose. We are here to guide you in your decision-making process. We will define the essential terminologies for you, and guide you along with the distinction between a bond and a stock on probably its most basic level yet.

 

An Overview

 

It’s time to radically transform your money into a worthwhile and profitable investment. But how precisely do you plan to make allocations of your cash?

 

Remember, portfolios that maximized the diversity approach had been constantly acclaimed prior to beginning to purchase yourself assets consisting of either a bond, a stock, or both. Remarkably, both had been considered as possibly the most number of traded assets recorded. They’re obtainable from several completely distinctive platforms, with the help of reliable brokers, or through various markets. Though these terms are frequently triggering confusion, stocks and bonds possess certain features, uniqueness, and distinctions that make each of them enticing to traders.

 

Selecting what’s the best mixture of bonds and stocks is a fundamental decision an investment has to come up with, yet the decision-making process an investor will have to go through is quite complex. Overall, stocks’ function is at supplying investors with growth potential that will keep on progressing in the coming years, while the bonds’ function is at offering investors new income streams.

 

When deciding which to choose between the two, ask first yourself, which of these investments are well suited to your own strategy. So, let us get to know deeply about these investment strategies.

 

What are Stocks?

 

Once a trader purchases shares of stock, the trader is buying a portion of ownership in the business enterprise. It is given that the worth of stocks of the corporation is always inclined to mirror the earnings of the corporation — both during the business’ highs and lows; profitable times and times of tremendous losses. In general, if an investor wants bigger yields and higher returns, then he or she must expect even higher risks.

 

‘Blue chip’ and ‘small cap’ are two terms you have to familiarize yourself with within the stock market. These two are kinds of stocks offering you different rewards and risks. If you wish to have stocks that were issued by companies, then buy ‘blue chip’ stocks. These were founded and stabilized really well in different industries. Their prominence is accounted for having withstood long periods and hold great credibility in producing earnings and releasing dividends to their holders.

 

In contrast, ‘small cap’ stocks signify shares in a company that are less established, meaning the small cap poses an unpredictable potential for income growth, and which can mean bigger returns for traders. But accompanying this is the fact that the small cap has undeniable potential for depreciation of value than those of reputable business entities.

 

Stocks have distinct characteristics. These include style and sector or industry. Style pertains to the stock either as a value investment or a growth investment. Growth investments have earnings and are anticipated to have prices that increase quickly. Value investments, on the contrary, are underpriced stocks yet with great value.

 

The second characteristic is about the industry and/or sector. This refers to how stocks are classified according to sectors (financial sector, healthcare sector) or industry it’s belonging to (food and drug, banking, construction, etc.)

 

What are Bonds?

 

More than ever, bonds will play a significant role in boosting your investment portfolio today. Bonds refer to loans that investors engage themselves in with business enterprises, companies, or even with any branch of the government. These entities issue bonds in order to attract capital without the need to give up their control management.

 

Those who own bonds (commonly called ‘bondholders’) do not have a share of the profits the company will yield. Instead, they will be paid a fixed return of investment. This return is termed ‘coupon rate’, which is the interest rate on the bond.

 

The time element is essential to bonds. Once the bond has reached expiration, the original investment had been paid back to the investor, which means to say that the bonds had reached their maturity. Most bonds may expend upmost thirty-long years for them to mature. The number of years for the bonds to mature, coupled with the ability of issues to pay its obligations, are distinct considerations an investor has to examine when choosing for bonds.

 

Bonds are embedded with certain risks, especially that not all payments will be released punctually, or fully. Therefore, transactions in bonds are filled with uncertainties. As the uncertainty element increases, so are the desires of investors for remarkable returns (since they embraced high risks).

 

If you are interested in buying bonds, be sure to evaluate first the credibility of the issuer for debt obligations. You do this by checking first the rating of the said issuer. The higher the rate, the better, because these ratings reflect the likelihood of the issues to repay its investors.

 

But just like stocks, the price of bonds can also fluctuate especially when an investor sells prior to its maturity. There’s a tendency that it will have high gains or great losses in comparison with its original value.

 

If you cannot fully fathom the risks of bonds but are still interested in engaging in bonds for the reason that it can promise you higher returns, then you may as well ponder on investing in safe bonds, such as those being offered by the government or any government agencies. They may or may not be insured like corporate bonds, but they are backed up by the government. Additionally, there are also securities that the government backs up. So all you have to do is make some research and background checks of the issuer.

 

Another form of bonds is corporate bonds with firms, companies, and industrial corporations as issuers. Most often than not, the returns will even be greater as compared to government bonds, but of course, they are riskier, especially when these firms get bankrupt.

 

How are Bonds and Stocks Different?

 

The primary distinction between a bond and a stock is that stocks refer to ownership in shares of the business enterprises, whereas bonds refer to a kind of debt that an issuing entity guarantees for repayment to an investor in a designated time. Once balance and stability had been carried out between these sorts of investments, an ideal capital suited for business structure has been attained. To be specific, listed below layouts essential distinctions of the two investments:

 

Rights to Vote. Stockholders may additionally vote on specific company issues, which includes the election of the management’s directors. Bondholders are deprived of any right to cast any votes.

 

Periodic payments. Commercial entities are entitled to a choice to award and distribute dividends to its shareholders, meanwhile, it generally should distribute payment of interests periodically to bondholders for particular and certain amounts. A number of bond agreements permit postponement or cancellation of interest payments by issuers, however, this feature is not at all typical. Late and canceled payments might minimize the number of money investors might be interested in cashing in for the bond.

 

Priority of repayment. During business liquidations, stockholders will have the final claim on money that is residual, meanwhile, the bondholders will be issued with a fine deal of priority, primarily established based on their bonds. An implication can be drawn from this: stocks possess bigger risks compared to bonds.

 

Bonds and Stocks: What Do They Share in Common?

 

Bonds and stocks possess variations that they both also share in common. Particularly, several bonds keep and preserve conversion features permitting its investors to modify and convert these bonds into stocks instead at specific pre-determined ratios (stocks to bonds). A choice like this will be beneficial to the investor considering the value of the stocks as significantly increasing, further enabling bondholders to reap direct capital gains. Changing from the bond to stock will moreover grant a trader with vote casting rights for certain company issues.

 

Both investments can also be traded for public exchanges. It’s a typical incident especially for bigger open-to-public companies but is way uncommon for minor companies that have no desire to endure the unwarranted cost of being publicly-held

 

What’s a Bond Market?

 

Beginners in this realm of investment crowd themselves to conduct trading (through buying or selling) debt securities, importantly government or company-issued bonds. This had been dubbed as ‘debt market’, and oftentimes titled as ‘credit market’. Many securities were granted in this market including various debt types. Simply by purchasing credit or a bond, or even debt security, one might be lending cash for a specific period of time, then shall be charging reasonable interest— it’s identically like how financial institutions deal with their debtors.

 

This had offered investors a steady and secure income source which is regular and standard-based. Quite a few scenarios were reported wherein traders have been distributed with bi-annual activity payments, an example of which include Treasury bonds that are issued through a federal government.

 

Various traders decided to select bonds for their portfolios since it’s a strategy to financially prepare for their future retirement years, for the future education of trader’s offspring, or for distinctive needs they may meet in the long run.

 

The bond market enables traders to grasp an extensive selection of research, analysis, or evaluation tools to be aware of additional facts or information about bonds. One useful tool is Investopedia which will list down and simplify the fundamentals of the bond market, including the diverse sorts of securities that are available for investors.

 

There are several sources that investors can utilize like Morningstar and Yahoo! Finance’s Bond Center. Through these tools, traders may be furnished with current information, news updates, thorough market evaluation, and dependable market studies. Further, investors additionally can have other details and particulars about bond choices through brokerage accounts.

 

Where Do Investors Trade Bonds?

 

There has been no centralized trading place in the bond market. This means that bonds have been in trade primarily through over-the-counter. Traders aren’t occasionally taking part in this market; but those traders that do take part are notably big institutions including foundations for pension funds or endowment foundations, investment banks, asset administration firms, and other funding firms. Meanwhile, some traders prefer to take a position here because of the aid of a bond fund accomplished with the help of asset managers.

 

For sale, securities are set up and operated on the ‘primary’ market. Meanwhile, other trading transactions shall be held on the ‘secondary’ market. The latter serves as a venue for all traders to sell or purchase the securities they already own. Securities like these have fixed-income may vary from notes, bills, and bonds. It is via supplying these securities in this market that issuers secure their essential funding for any projects they wish to pursue or expenses they need to budget.

 

Entities Participating in the Bond Market

 

Here are three of the best and notable groups of investors who are usually into the bond market:

 

Participants: They are known to transact bonds and other associated securities. A participant can issue loans, and at the same time, can have an interest in return. As soon as this investment matures, the bond’s price is rewarded again to participants.

 

Underwriters: They often spend time to think about all the threats naturally present in this monetary world. Within this market, underwriters secure securities from their issuers, then resells them to accumulate more profit.

 

Issuers: They establish, advance, record, and promote instruments on the bond market. They may be any business firm, a corporation, or a government sector. One example is the well-known United States Treasury which is reputable for its Treasury bonds issuances, prominent to be long-time securities offering payments of interest to traders twice in a year, and the said securities mature in the next ten years. Accordingly, it is having lesser investment threats as compared to stock investments since the latter is inclined to increased volatility.

 

How Bonds Are Reviewed and Evaluated

 

Ratings are what categorizes the bonds. They’re typically being evaluated with ‘investment grades’. An agency for bond-rating is regarded as in charge of assessing bonds, then giving them scores. Standard & Poor’s, and even Moody’s are just two of the famous agencies known for bond ratings. Investment ratings are presented by way of letter grades. Because of this, traders are regularly informed as to the quantity of default risks every bond possesses. Ratings are “AAA” or “A” for great quality bonds; “A-” or “BBB”  for medium or average risk, and “BB” or less are thought-about to be high-risk bonds.

 

The Stock Market

 

A stock market serves as an avenue for traders to make trading transactions like buying-selling of equity securities. What does purchasing stocks or equity securities suggest to an investor? It means that an investor had just secured his/herself ownership in a corporation, even though it’s just a very minor possession, however it yields top-notch results. It can be noted that for individuals who invested in the bond market, they lend cash having interest; meanwhile, stocks investors or also known as “equity holders” purchase portions of companies — those they believe to be excelling and whose value of shares will surely grow in value in the long run

 

The stock market’s most essential feature is to provide a venue for traders to gather together in a well-managed, regulated, controlled, and fair environment which ought to keep them trading safely among each other. Due to this, traders are stuffed with confidence that there is transparency in their trading, and the price of stocks is just, truthful, and reasonable. This feature of the stock market boosts investors’ awareness and trust. Even corporations are attracted to this market. Further, it is believed that as the stock market keeps its high performance and vigor, the economy flourishes as well.

 

It possesses notably dual components: primary and secondary markets, just similar to a bond market. The primary market is proposing the first-run equities and is recognized for its issuance of initial public hearings. The one setting up the initial prices of securities is the underwriter. Meanwhile, the second component of where almost all of the trading is being held. Here, equities are released up to the public and are transacted thereafter.

 

Bond Market and Stock Market: What are their Major Differences?

 

Bonds and stocks have several main differences. The first key distinction between them is that the stock market is renowned for having central locations or exchanges, whereas stocks are being marketed and purchased.

 

Another major distinction pertains to the risks embedded when one invests in either of the two. In stocks, traders have been observed to have higher exposure to risks that encompasses politics and country/geography-related risks, risks on liquidity, rate of interest, current and overseas money. These will all have an impact, not the company especially relating to debt and the money it has on hand. On the contrary, bonds pose further vulnerability to risks corresponding to interest and inflation rates. Therefore, bonds can easily be affected by economic issues.

 

Whenever the rates of interest go up, the prices of bonds are likely to decline. However, if ever the rates of interest are elevated and it’s essential for a trader to sell his/her bond earlier than its maturity, chances are that the investor will find his/herself eventually receiving lower than the price by which he/she purchased the bond.

 

But in the event that the bond is bought from an organization or corporation that has not been financially stable and self-reliant, the investor is exposing his/herself to credit risks. In this case, the bond issues are in no position to distribute and release interest payments, leaving the bond open to default.

 

Lastly, both investments are measured differently. The stock market’s efficiency is broadly measured by utilizing indexes like the Dow Jones Industrial Average, or the S&P 500. In a similar manner, bond indexes use Barclays Capital Total Bond Index so that it can be of better assistance to traders in the observance of bond portfolio performance.

 

Stocks: Its Advantages and Disadvantages

 

The greatest advantage when you pick stocks over bonds is that the historical past reveals, shares are more inclined to gain greater than bonds. In addition, stocks can provide higher profit once the company’s progress is exponential, enabling the investor to potentially earn millions from the initially minuscule investment. For traders who are prepared to embrace the risk, stocks can yield greater than bonds in terms of returns because the company’s stocks are expected to keep on rising.

 

But still, stocks are generally not all the time the perfect option.

 

In terms of drawbacks, stocks guarantee no specific future returns on initial investments. As a result of this market’s unpredictability, it’s vitally simple to lose cash by investing in the wrong stocks. Consequently, stocks are now-and-then thought to contain greater risks compared to bonds.

 

Bonds: Its Advantages and Disadvantages

 

Professionals and experts in the trading world can easily distinguish bonds from stocks since bonds possess lesser risks, attributable to their fixed interest rates for loans. Also, these rates are preferred due to their resilience to economic adjustments in interest rate fluctuations. This results in owning better assets during the most unclear periods.

 

Nonetheless, bonds do not promise higher income potential when matched to stocks (because the latter have the potential to expand in value in just a single day.)

 

Examining the Risks

 

What are the Risks in Investing in Stocks?

 

The greatest risk of stock investments is the price of shares slowly declining after being purchased. There are several causes why these prices fluctuate, but in simple terms, once the performance of a specific company cannot cope up with the anticipations of its investors, then the value of stocks will eventually drop in value.  Given the different causes of a company’s downfall in business, stocks are definitely riskier compared to bonds.

 

But, greater risks mean greater potential for high returns.

 

What are the Risks in Investing in Bonds?

 

U.S. Treasury bonds have better stability within the short term than stocks, but lesser risks mean lesser returns, as well. Government bonds are free from risks.

 

Meanwhile, corporate bonds possess extensively various amounts of yields and ranges of risks. The higher the vulnerability of a corporation is to bankruptcy and its inability to keep releasing interest, the greater bonds it will have. Also, it will be a lot riskier compared to those with a very less to zero chance of bankruptcy. Furthermore, the capability of a business enterprise for debt payment is usually reflected by using its credit rating as a reference. These ratings are out of the evaluations of agencies.

 

How to Invest in Bonds

 

When you invest in bonds, it will be crucial to initially choose what variety of bonds you would like to purchase – the primary kinds include municipal bonds, treasury bonds, and company bonds.

 

In relation to investment, an important step is studying completely the various types of bonds, then selecting from them the investment that is suited for you and your budget or monetary capabilities.

 

How To Invest in Stocks

 

A lot of traders maximize stockbrokers’ assistance when they purchase stocks in the stock market. Well-known corporations utilize electronic brokerages for easier and more efficient access to the market.

 

Finally, the instant you already have decided to purchase stocks, it’s necessary to grasp enough information about the stock market’s status and performance. These background knowledge and updates will help you come up with the best investment decisions.

 

Which is Right for You?

 

A lot of investors wish to diversify their investments, instead of choosing just one. So if you feel like diversifying your portfolio, then decide first the mixture of bonds and stocks you will have. In getting the right mix, take into consideration several following factors: financial objectives, risk tolerance, and time horizon.

 

In connection to the time element, you must understand that bonds and stocks do not grow, diminish, or fluctuate in price at the same time. Some stock prices will be fluctuating rapidly, thereby resulting in anxiety or panic to older investors who are reaching their retirement years; hence, they desire to gain higher returns in a shorter period of time. Because of tendencies like these, the best choice is to mix up more bonds.

 

If you have started investing in your early years, then you still have more glorious years to go. A lot of time could be an advantage to you. If ever you see a weak market and purchase some stocks when the value drops, who knows, in the succeeding years, the stocks might catapult into great gains.

 

Aside from time, consider your goals, What are your financial goals or objectives? Always keep those thoughts with you as you come up with investment choices. At the end of the day, your journey to financial independence will depend on your personal visions (or financial objectives). Do a lot of planning and reviewing the steps you will take so that you can reach your financial goals. Monitor your individual progress, and keep track of where you are, where you have been, and where you are going in your financial journey. Create a road map to success for yourself.

 

Every investor has differing levels of risk tolerance. If you are unfamiliar with your ‘risk appetite’ just yet, try to ask yourself: How tolerant are you of risk? How willing are you to take risks? Risk tolerance refers to how much market risk you can be resilient with, how much can you withstand, and how do you behave considering these risks. The best financial planners are those who are certainly aware of how much they can take and how willing they are to make that leap of faith for the sake of potential gains.

 

By knowing oneself, you will master techniques in recovering from market volatility. Are you an aggressive investor or a conservative investor?

 

What is the Best Allocation Strategy that Works for You?

 

Going back to the million-dollar question: Where should you invest: bonds or stocks? If your answer is BOTH, then learn how to correctly diversity your portfolio for it to possess the perfect mixture of exposure to stocks with greater potential gains, and to bonds with secured and stable growth.

 

A great method to decide on the proper mixture of investment in your portfolio is to think about the amount of cash you think of investing, and your age, too. It is advisable that you consider your age as the percentage of your portfolio if you plan to invest in bonds. To illustrate, if you are 20 years of age now, 20% of your investment should be on bonds, whereas the remaining 80% should be on stocks.

 

The formula to this may vary, but regardless, this method holds the same general idea: the younger you are, the better should be your focus on stocks. But if you are quite aged, then put most of your attention on bonds.

 

What is the reasoning behind the age-related allocation method? This is in consideration of the total number of time you will have to grow your funds. Your investment has to grow with you. Young investors have an additional and longer time to compound their investment gains and have even a lot of time left to recover the capital they have lost in wrong investment decisions. So, young investors are advised to accept more risks and gain more rewards in the future.

 

But if you are nearing your retirement years, it is extremely essential that you prioritize stability, lower volatility, and lower risks. So, it is recommended that you cash into bonds more since it ensures security to your investment.

 

Takeaways

 

An investor’s portfolio is comparable to a puzzle; bonds and stocks serve as the two most crucial and life-changing pieces that will complete it and form it to be well-diversified. Regardless of the risks that stocks naturally offer, but they still provide you with unlimited opportunities for larger gains. Meanwhile, bonds will safeguard you from tremendous losses.

 

So if you wish to begin your financial journey now, remember to consider the age-related allocation strategy. Using this method will assure you of great gains, and guards you against unbearable risks. Eventually, your funds will grow for you, even before you need it.

 

So, what now? Where will you invest: in bonds, stocks, or both? Have you decided on how many percent you would be putting in each?

 

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3 Less Popular Commodities That Might Be Worth Adding to Your Portfolio

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A practical stockholder comprehends that you cannot place all your bets in a single basket. Though it will possibly not take out the risk completely, varying your stock portfolio can benefit your investing plans by making the best out of the resources in the market. Currently, we have loads of diverse investment opportunities you can select from, take for example we have stocks, we also have bonds and then there are currencies which can be fragmented down further by joining together resources that have similar features.

And don’t overlook the commonly unkempt commodities that can potentially and eventually be convertible into high value products or any dependable services. Know that there will always be a wide range of diverse commodity choices for fresh as well as veteran traders. But wait, don’t you get too excited just yet to start out and make a move.  You have to know a handful of significant things for you to be able to dive into buying commodity stocks, from the finest ones up to the less common ones.

Investing in commodities is not a new venture, it is a centuries old business endeavor even before the inception of bonds and stocks. It serves as a very significant industry, connecting diverse civilizations to individuals together regarding where you are right now, from east up to the west side of the world trading silks, spices or others. Up to the present day, commodities remain a prevalent vehicle of investment.

Commodity investment has several advantages that investors must learn. A major payback is that most commodities are inclined to safeguard stakeholders against several upshots of inflation. A typical pattern includes a growing demand for certain commodities which seems to heighten during times of increasing inflation that shoves up market prices. It serves to be a reliable bet versus American currency because whenever a dollar falloffs, the price of the commodity upsurge.

Since you are an investor, you have to contemplate on playing safe and invest on strong and popular commodities such as natural gas, oil, gold, platinum or silver but there are less common commodities in the market that could still give you high dividends. We have here itemized the three less popular goods which are also worth a slot in your portfolio.

 

  1. Sand

This is just sitting around in beaches, rivers, deserts and in many other locations, so who would intend to release some cash for this commodity? Well as a matter of fact, tons of businesses are companies producing chemicals, gas and most of all,  energy.

Sand has a significant role in fracking which is a drilling technology where energy companies inject it into rock formations underground to extract water, gas, oil, or energy. U.S. Silica Holdings is considered as one of the leading suppliers of this type of sand. They excavate, trade, process, and sell over and above hundreds of unique varieties of silica in numerous structures, purity levels, and proportions.

In the same manner, it is also known to be a logistics corporation. The reason is that sand must reach promptly, in order not to keep costly rigs and crews expecting for a long time. U.S. Silica Holdings is getting bigger through procurement in the Permian basin and Texas. Through locating capacity in the Permian, the said company was able to cut down costs in transportation and saved so much time. Several sand contractors transport even to states geographically far from the location of the sand.

 

  1. Base Metals

Base metals which include aluminum, zinc and copper seem less popular to investor’s eyes when compared to gold, silver or platinum but they can be worth a shot. Even though metals finished quite low in the last few months because of the threats of the COVID-19 pandemic to the manufacturing industry, forcing some factories to shut down momentarily throughout the world, a hope can be seen from afar for this industry. There could be a silver lining for these base metals in the forthcoming years.

JPMorgan Global Manufacturing, a company that follows manufacturing activity all over the globe, declared a 47.8 during the month of June. Even though that doesn’t reasonably point toward positive growth, it denotes that factories are also being in contract at a much sluggish proportion than they used to be in the two months preceding June. Amazingly, June’s positive progress is the sturdiest on record for a lone month demonstrating an eventual bounce back is in motion. Basing by country, the demand for these metals in manufacturing industries was sturdiest in Brazil, China, Italy, United Kingdom, and France.

 

  1. Palladium

This is a glossy, silvery element giving off a white gold its color. It is a vital component of fuel cells and catalytic converters. It was discovered in the 1800’s and was named after a known asteroid. It is worth noting that even though it’s not that popular palladium is rarer than gold or platinum. This earth metal has gained a reputation subsequently after the 2008 financial crisis; its uses vary and can be tremendously flexible, and it’s relatively safe when you contemplate that it’s not significantly shaken by political affairs or even inflation. Its cost has been increasing slowly but steadily for several years now, and there have been more and more stockholders appearing and decided to put their cash into this rare earth metal. Some market professionals say that 2020 will be the year of palladium, but other analysts prefer to stay careful.

 

Summary

If you have contemplated your investment already, you may need to do some research to distinguish the production level of your preferred commodity across the globe, if there are any new sources of supplies or maybe there’s a likelihood that something will be discovered. It also won’t hurt to look up with a knowledgeable stockbroker, especially if you’re fresh to the stock market.

The moment you have decided to go and invest your cash on a certain commodity, well-known stockholder Jim Rogers advises you to reflect on the following queries. Your answers shall dictate if it’s worth your cash.

  1. What is the present status of producing the commodity globally?
  2. Are there newer and more innovative commodities circulating and arising in the digital platforms?
  3. Are there any explorations undertaken for the said commodity at present?

Do not limit yourself with the three commodities on the list. There are several other commodities that you might want to think about as worthy investments include other valuable metals such as lithium, cotton, and less popular but emerging food products including sugar and cocoa beans. With all these judgments in mind, nevertheless, conduct your own research online and study or ask with a veteran broker.