Investing Archives - Page 2 of 4

How Does Social Trading Affect Your Portfolio?

Social trading is one of the best things to happen to an investor. This growing trend combines the aspects of social media with that of a broker, making it much easier to buy, sell and trade. Using social trading, binary options can be an easy way for new investors to get started since it allows people to engage in an active community, rather than having to research on their own. Social trading can also help seasoned investors perfect their skills learn more about the market and eventually make more money.

Learn from the Best Investors
One of the biggest advantages to socially trading is transparency. Users can easily see what their more successful peers are doing and choose to copy their actions. This allows beginners to learn quickly from some of the best investors, rather than struggle to figure out which companies to invest in on their own.

Different Platforms, Different Features
Much like social media, there are a wide range of networks aimed at investors. Each on has its own advantages and disadvantages, so there is no perfect platform. The benefit of having so many choices is that it makes it easier for investors to find something that works for them and suits their needs. Most of the platforms available will offer one of these features:

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How to Trade Forex like a Professional

The forex markets are volatile, tempestuous, and complex, yet many would-be traders are drawn to them thanks to the extensive opportunities that they offer. For those who take the time to learn their art and master its intricacies, trading can be incredibly profitable and highly exciting, and its accessibility only adds to its allure.

However, mastering the forex markets is no easy task. The jargon and tactics that are fundamental to the foreign exchange often take time and a great deal of focus to wrap your head around, and adopting the right strategy is essential. Still, most will find themselves capable of prospering if they’re willing to devote the necessary toil and effort to completing their endeavour.

So, if you’re looking for some tips to help you get started, then here are three straight from the professionals…

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What Can you Buy with Dividends

This post idea came to my mind as I was washing dishes, and I thought of at least 10 things I can buy with dividends. What can you buy with dividends? Well it depends if you actually are in a position to receive them. If you are like some people who believe the government will take all our investments, then you clearly don’t invest in the stock market. What can you buy with dividends is the topic of the hour and I love this topic.

Lets play a little game and think of the possibilities available for the investor who can successfully receive 5 thousand in dividends and doesn’t need the additional income to live off of. Now you can visualize all the fun you can have with an extra 5K annually.

What Can you Buy with Dividends?

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4 Main Obstacles to Creating Wealth

Though many people would like to be wealthy, not many people actually obtain wealth. In some instances this is due to a lack of ability, knowledge and resources; however in other cases it occurs due to people not overcoming certain obstacles. Take a look at four of the main obstacles people face that reduce their chances of developing wealth.

1. Debt

It is important to understand that there is a difference between debt and bills. Everyone has bills that must be paid in order to properly support and sustain their lives. However, not all debt is necessary. In fact, many of the debts that people create for themselves tend to be unnecessary, such as the difference between buying a certified used car verses a brand new vehicle, or using credit cards to buy name brand items instead of paying cash for regular or store branded items.

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The Dividend Challenge

I am obsessed with growing dividends and seeing them compound every year. Well now I am doing a crush the dividend challenge. (#dividendchallenge) The purpose is to well increase the dividends in 2015 and surpass what was received in 2014.

If you make the gap bigger between last year and this year you will experience year over year growth. The benefit of dividends will not only give you a greater sense of return on your money, but it will also provide the opportunity to get even more shares going forward. If you do this, you will invest on purpose for increasing dividends aka icing on the cake in my opinion.

Imagine getting 10K a year from dividends in 2015 and letting things compound. By the year 2020 can you imagine how much you will get from dividends? Its safe to say it will be more than 15 thousand dollars of free money just for holding an asset.

What in life gives you free money for holding it? Nothing does and only investments do. Now are you ready to crush the dividend challenge?

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Don’t Invest all Money into Index Funds

Don't invest all money into index funds

Index funds are great because of the simplicity behind them and how dirt cheap (Fee Wise) they are compared to other mutual funds. But please don’t invest all money into index funds.

I will let you in on a little secret why I will always invest part of my money away from index funds. Index funds are considered a passive investing strategy as you can place your money, forget it and realize on average a 4-8% return on your money. Index funds usually mirror the broad based market like the S&P 500, NASDAQ or a plethora of other indices.

The main issue I have is that the returns of Exxon, Apple, IBM, Johnson & Johnson is by far greater in a 20 year time span compared to that of long running Index funds. If you find a calculator that can go back in time and give you what a 10,000 dollar investment over 20 years made in any of the companies I referenced above. You will be amazed to find the amount will be staggering. The returns I’m talking about should be in the hundreds of thousands of dollars. If you compare the same 10 grand into an average index fund investment, it will not even come close.

Now why is the figure so drastically different from the individual big blue chip stocks to an average index fund? I will attempt to be an investing guru, and provide you with the details as to why.

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Bullish Vs. Bearish: Clearing the Confusion for New Forex Investors

Are you a “bull” or a “bear?” Do you even know what these terms mean? It’s understandable and perfectly OK if you don’t. Many forex traders struggle with them. It’s a holdover from the stock market, and it defines your basic view of the marketplace at any one given time.

Contextually Important

It’s important to realise that the terms “bull” and “bear” are contextual. This means that a person who is “bullish” or a “bull” in one market environment may not be a bull in another. The same is true of a “bear.”

One of the many forex trading challenges is determining whether a “bull” or “bear” market exists and then what to do about it. Money can be made in either market, but some traders prefer to trade in one market over another.

So, being bullish isn’t necessarily an investment philosophy, but rather a view of the market itself – but only a view of the market as is currently exists.

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Real Estate Investment Trust

This is not a new investment opportunity as it has been around for a long time now. The problem is if you are not into investing and do not read investing books, you probably never heard of this type of investment opportunity. What is a real estate investment trust? Exactly what you might think it is when you read the title. They are companies that invest in real estate holdings, offer shares to investors so that they can own a piece of the pie. This in turn provides the company with the influx of cash to invest into more properties. Now the secret sauce to this deal is that by law these REITS must pay out about 90% of all the income they make back to shareholders. If they make 1 million dollars a year they have to pay out 900K to all the owners. Usually all the dividends are paid out on a monthly time schedule. Now what company you know gives almost all of its profits back to the owners? (None I’ve seen)

I am a big proponent in holding some REITS long-term, as it can provide a substantial amount of income and the ability to diversify nest egg money away from the usual U.S. large cap equities. The REIT market on average provides yields of about 5% and this is not including any capital appreciation on the price of the stock when you decide to sell. For a few examples of REITS in the market today see below:

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