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November 12, 2018, 9:26 am

Do you really need a fancy trading strategy

by: The Financial Blogger    Category: Investment, Market and Risk

In any kind of businesses, people have to spend a lot of their investment in the setup phase. For a production business, the spending is going to be a lot.  You have to spend money on the production factory the workers and if it is a new product, marketing is a must for it. Even when you are willing to get rid of all the hassle of the production-based business and opt for distribution based business, the costs will be present there too. It may be less but, you won’t be able to overcome this issue. As with those ones, the trading business also requires a trader to spend some for his or her setup. But that does not require to be too much expensive. In this article, we are going to talk about being okay with a minimal trading setup and do just fine.

No need to invest huge amount of money

Like any other businesses, you may be thinking trading requires investment. Some even think they need a lot of money for the investment in their trading account. This kind of mentality creates problems both before and after the start of your trading career. In earlier cases, traders fear about investing too much money into a trading account. Those who have almost no idea about the trading process, literally forget about joining this profession. They lose hope and courage for doing anything in this business. After having the courage for investing too much and managing big trading accounts, the traders start dealing with too much risk. From that, they also lose too much money in the trades. If you want to join this business and don’t have too much money in your pocket, it is the right place for you.

A simple system is always the best

The institutional traders in the United Kingdom are dealing with millions and making millions in profit at the end of the year. They don’t rely on the fancy trading system rather they use the simple support and resistance level to find quality trades. Financial spread betting is a very sophisticated investment business. You can’t afford to make things complex as the market is already overly complicated. Try to keep things simple so that you can easily decipher the complex price movement and find great trades. Develop your trading skills by using a demo account and preparing yourself to be a full-time trader.

Spend less on trading platform

The trading business also requires traders to spend money on things apart from their trading account. There are several things in which you have to spend money in. it is not much though. It is the trading platform we are talking about. It consists only a few things like a computer, an internet connection and a program that will help with your trading executions. These things are not required to be too much fancy because there is no need for that. You will just have to be right with your strategies and place a trade right. For that, a decent computer and an internet connection capable of handling normal browsing are enough. The trading software will be provided by your broker. Hope you will think about it while joining the trading business.

Always stay in the safe zone

Some traders may think about this business as a jackpot machine. They probably have the information about the daily transected money in this platform or they might have heard about this is the biggest financial marketplace in this world. For those people, this is natural to think about money.. Their trades will be aggressive and have a lot of risks. Thus, possibility of losing will be higher. For those who want to survive in this business, we would tell them to be secured with their trading capital and risks. Because the less you spend, the more money you will save.

 

Image source: Pixabay

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October 31, 2018, 7:23 am

#IGForexChat 3: What does the next year hold for emerging market currencies?

by: The Financial Blogger    Category: Investment, Market and Risk

  • IG presents ‘IG Forex Chat 3’ – a live discussion focused on what the next 12 months hold for emerging market currencies
  • Presenter Sara Walker will be joined by trader Paul Bratby for the chat
  • Watch live on Facebook, Twitter and YouTube at 6.30pm (UK time) on Thursday 1 November
  • Viewers can submit questions for the Q&A using #IGForexChat on social media

 

Emerging market (EMs) currencies have been particularly volatile in 2018 due to the rise of the dollar, which has increased the cost of dollar-denominated debt and contributed to crises in Argentina, Turkey and Venezuela. These effects could soon spread to other EM currencies such as those used by Chile, Poland and Hungary, which all have a large amount of US debt. Meanwhile the future looks uncertain for the Chinese renminbi and Russian ruble, which are at risk from the effects of Trump’s ‘trade war’ and international sanctions respectively.

With so much potential for volatility, forex trading provider IG is taking a look at what the next 12 months could hold for currency pairs including USD/CNH, EUR/RUB and USD/TRY. The firm’s presenter Sara Walker will be speaking with professional trader Paul Bratby to discuss a broad range of related topics, including:

 

  • The EM currencies to watch over the next 12 months
  • How the dollar’s valuation will affect EM currencies
  • The effects of changing commodity prices
  • How the value of the US dollar, Chinese renminbi and Russian ruble will change

 

There will be a live Q&A during the session, so viewers can put forward any topics they’d like Paul to discuss, or any questions they want answered. They can post questions to the #IGForexChat Community page, or by using #IGForexChat on Twitter or Facebook.

To watch the live video stream, tune in at 6.30pm (UK time) on Thursday 1 November via IG’s trading platform, or the company’s YouTube, Facebook or Twitter pages. For more information, please contact Irene Castaneda (irene.castaneda@ig.com).

About IG: IG empowers informed, decisive, adventurous people to access opportunities in over 15,000 financial markets. With a strong focus on innovation and technology, the company puts client needs at the heart of everything it does.

IG’s vision is to be a global leader in retail trading and investments. Established in 1974 as the world’s first financial spread betting firm, it continued leading the way by launching the world’s first online and iPhone trading services.

IG is now an award-winning, multi-platform trading company, the world’s No.1 provider of CFDs* and a global leader in forex. It provides leveraged services with negative balance protection, and offers an execution-only share dealing service in the UK, Australia, Germany, France, Ireland, Austria and the Netherlands. IG has recently launched a range of affordable, fully managed investment portfolios, to provide a comprehensive offering to investors and active traders.

It is a member of the FTSE 250, with offices across Europe, Africa, Asia-Pacific and the Middle East – plus the US, where it offers on-exchange limited risk derivatives via the Nadex brand.

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

* Based on revenue excluding FX (published financial statements, February 2018).

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July 27, 2018, 1:28 pm

What You Need to Know About Taxes on Precious Metals

by: The Financial Blogger    Category: Investment, Market and Risk

If you’re new to buying precious metals then you may be wondering what your tax situation is when it comes to selling the bullion for a profit.

There are individual state tax laws, as well as federal laws to abide by. This means that you need to talk to your accountant or a tax advisor once you’ve bought your gold bars from this website.

The IRS treats precious metals as capital assets

As a result of this, gold, silver, platinum and palladium may attract capital gains when they’re sold at a profit. The IRS also views precious metals as a collectible, so they can have tax levied on their profits up to the maximum of the 28% capital gains tax (CGT).

The taxes aren’t calculated and applied until the metal is actually sold, because the capital gain hasn’t been realized until then. So, say you buy 10 ounces of gold at $1,100 per ounce and place it in a depository for several years. While it’s in storage it appreciates in value to $1,300 per ounce. You decide to sell it at this price, which realizes (as in, makes real) the capital gain of $2,000.

Do I owe tax on this $2,000 profit?

You need to calculate the original cost of the metals, which in this case was $11,000, and then the selling price, which was $13,000. This makes you a profit of $2,000. Your federal tax bracket will determine whether you owe tax on some or all of this profit, which is why you need to speak to an advisor. There are also several special conditions that you need to factor in.

If you’ve inherited the metal things may change

If you’ve inherited the metals then a different calculation method is used to work out the cost basis – the cost basis in this case is the market value of the metal on the day of your benefactor’s death.

If you’ve been gifted the metals

The cost basis is calculated by the market value on the day the person giving you the metals bought them – not the day you received them. Sometimes the market value is less than the amount the person actually paid, in which case the cost basis is worked out from a fair market price from that day.

In short, though, you probably will owe tax on some or all of the profit.

What rates might I have to pay?

This depends a lot on your usual income tax rate and the length of time you’ve had the metals before selling them. You already know that the IRS sees precious metals as collectibles, so you’ll possibly have to pay the 28% CGT. It also matters whether you’ve held the metals for less or more than a year as less that a year counts as a short-term gain, which is taxed differently.

When is the tax due?

You report your capital gains from your metals in your yearly tax return and then pay any tax owed in due course.

What if I sell at a loss?

Hopefully you won’t, but if you do, then you have a capital loss, not a gain. You can offset capital gains from other sources against this loss either in the same tax year or in future tax years or you can offset it against your ordinary income (with some restrictions). Ideally, you need to speak to your tax advisor for the most up-to-date advice.

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June 25, 2018, 5:08 am

Get The Best Price When You Sell Gold Coins

by: The Financial Blogger    Category: Investment, Market and Risk

Investing in gold coins can’t be a one-way street. You need flexibility and the ability to trade gold coins back and forth to respond to market changes and adjust your portfolio appropriately. A smart investor doesn’t just sit on their portfolio. Even passive investors need to make adjustments to meet their investment goals. But when your portfolio includes gold coins (which it should), how do you sell gold and get the best possible price?

Expect Spot Prices on Gold Coins

If you’ve done your research on gold coins and invested strictly in bullion gold coins, expect to sell gold coins at or near spot prices at the time of sale. That’s the price you would pay if you bought gold coins today, plus premiums, so expect it when you cash in. There will likely be fees such as shipping and insurance, which should always be factored into your earnings calculations before you sell. Always know the exact gold contents of your coins, including purity and weight.

Sell Gold Coins to Online Gold Sellers

Reputable gold sellers should be the first place you go to sell your gold coins. If they operate online like Silver Gold Bull, it’s even easier to do business with them. Always do your research into gold buyers. Check their credentials and reviews online and make sure they’re the real thing. Here’s what happens when you sell gold to a dealer like Silver Gold Bull:

  1. -Fill out a quick online form with product details to get a quote
  2. -Get a shipping label with insurance from the company once you’re approved
  3. -Get paid as soon as your gold coins are verified

If you’re selling bullion gold coins, never go to a pawnbroker or a cash-for-gold business. These are better options if you’re selling gold jewelry that will fetch a smaller price. That’s because gold jewelry is typically melted down for bullion, incurring higher costs. That process doesn’t need to be done for bullion gold coins.

Hold onto Gold Coins

Successfully investing in gold coins means carefully watching the market. You have to take your portfolio’s needs into consideration when you decide to buy or sell gold coins. If you need to cash in to fund another investment and balance your portfolio, it’s time to take the profits. However, gold often does best in the long-term and it can be risky to sell off your insurance policy. You may want to hold out for higher gold prices in the long-term rather than opt for marginal gains today.

Trade Gold Coins for Silver

When you trade in your gold coins, you don’t necessarily have to do it for cash. With online gold sellers like Silver Gold Bull, you can easily exchange gold coins for silver or vice versa. Why would investors swap gold for silver? Both precious metals tend to move in tandem, but silver rises and falls at a greater rate than gold. On a positive upswing for metals, you may want a higher exposure to silver, but then trade silver for gold coins to protect yourself from downsides.

With these rules in mind, you’re ready to sell your gold coins.

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June 18, 2018, 11:21 am

The Most Successful Investments Made by Poker Pros Revealed

by: The Financial Blogger    Category: Investment, Market and Risk


Image: Pixabay.com
Caption: From small poker acorns do big businesses grow

What’s the best way of turning money into even more money? Investing it. That’s what some of the legends of the poker industry have successfully achieved with their profits made at the tables. When you consider just how much prize money is on offer in the poker industry today, it’s unsurprising the very best in the business choose to diversify their profits by investing in initiatives outside of Texas hold’em. Last year’s World Series of Poker (WSOP) Main Event saw the third-highest prize pool in the history of poker tournaments, with $67,877,400 up for grabs. The top ten professionals in terms of live career earnings include the enigmatic Phil Hellmuth, who just so happens to be one of the shrewder investors of his poker winnings, as we will explain in more detail shortly.

There are many poker icons that have successfully diversified their poker fortunes into even more profitable business ventures. If you’re familiar with the world of poker, you’ll almost certainly have heard of this trio of poker gods-turned-entrepreneurs:

Jerry Buss: Successful owner of the LA Lakers

For a number of years, entrepreneur and philanthropist, Jerry Buss was a high-stakes Texas hold’em cash game player. He had been a major player in the Los Angeles and Las Vegas card rooms and then became a regular entrant in the World Series of Poker (WSOP) events in the 1990s. Buss’ best-ever finish was a third-place finish in a seven-card stud WSOP tournament, followed by a runner-up finish in a World Poker Tour (WPT) invitational event back in 2003. A charismatic individual, Buss was also invited to play on NBC’s Poker After Dark television series, as well as the High Stakes Poker series on GSN.

Using much of the revenue he had generated from the cash game and tournament poker tables in the late 80s and early 90s, Buss then invested heavily in professional sports teams in Los Angeles. He spent $67.5 million on acquiring the World TeamTennis side, the LA Strings, the NBA giants, the LA Lakers and the NHL outfit, the LA Kings. Undoubtedly, Buss’ most successful investment was his purchase of the Lakers, where he was able to attract a string of big-name stars to the Lakers roster; namely Magic Johnson, Shaquille O’Neal and Kobe Bryant. It was his desire to provide world-class entertainment for the fans that led in the Lakers’ ‘Showtime’ era. His financial contribution to basketball was marked by an induction to the Basketball Hall of Fame in 2010 prior to his 2013 death.

Dan Harrington: Real estate riches with Anchor Loans

72-year-old Dan Harrington, nicknamed ‘Action Dan’ in the poker fraternity, is best known for winning the WSOP Main Event in 1995. Harrington had been a successful bankruptcy lawyer for a number of years prior to entering the world of poker and business. Harrington learnt his trade playing poker at the Mayfair Club in the 1980s, sitting alongside some of the other household names of professional poker in Erik Seidel and Howard Lederer. Harrington made the final table of the 1987 WSOP Main Event, finishing in sixth place and started to generate solid revenues from his love of tight-conservative Texas hold’em.

Harrington began to dabble in real estate and stocks and shares before co-founding an enterprise of his own with two of his friends in the world of poker, Stephen Pollack and Jeff Lipton. In 1998, Anchor Loans was established, providing short-term loans to ‘fix-and-flip’ real estate investors. The company has funded more than $5.3 billion in short-term loans in its 20 years of business. Harrington retired from the business in 2010 but is still a shareholder in the company. Harrington has a long and proud history as a poker author, publishing a string of books on online and offline cash games in Texas hold’em no-limit, suitable for beginners and intermediate players. Although he penned a book on ‘Modern Tournament Poker’ in 2014, he hasn’t gone as far as writing about some of the latest poker room incarnations such as SNAP poker that is fast-fold and offers instant gratification for millennial players. Although Harrington’s live tournament earnings are barely a quarter of Phil Hellmuth’s, it’s obvious that Harrington has diversified his poker revenues impressively into real estate and publishing.

Phil Hellmuth: Book publisher extraordinaire


pp-ed-how-good-phil-hellmuth” (CC BY 2.0) by Chingster23

Caption: Poker Brat turned publisher for the sharp-tongued American

Phil Hellmuth is one of the larger-than-life characters in the world of professional poker. The aptly-named ‘Poker Brat’ has never taken kindly to losing at anything in life, most certainly not at the poker tables, and his will to win has helped him become one of the most respected poker pros on the tour. As of last year, his live tournament earnings were in excess of $21 million, sitting eighth in the all-time winnings list. Hellmuth also holds a record 14 WSOP gold bracelets and also holds the record for the most amount of cashes at WSOP events, standing at 108. These landmarks further serve to commemorate the commitment and passion Hellmuth has held for his poker craft through the years.

Hellmuth has always had a passion for telling stories and, in 2009, as the poker boom started to decline somewhat, he opted to set up his own publishing house with a view of allowing fellow poker professionals to tell their own accounts of life at the tables and away from the felt. The book, Deal Me In: 20 of the World’s Top Poker Players Share the Heartbreaking and Inspiring Stories of How They Turned Pro, written by Stephen John and Marvin Karlins, has proven to be extremely successful among the poker community. Amateurs and semi-pros alike have found it particularly inspiring to see how even the world’s most powerful poker stars had to work hard to build their bankrolls from the outset. It also reinforces that those who have the courage to dream big can, and often will, succeed.

Poker is a gruelling and demanding profession. Even those who stick at it for many decades will look to have downtime away from the tables to keep fresh. What better way for successful poker players to take their heads out of the game than to invest some of their riches in generating more income on the side.

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