Category: Trading

The Essential Guide To Building An Investment Portfolio

investment portfolioThe idea of having an investment portfolio may conjure up images of suited and booted individuals, well-coiffed, pinstriped and ready for a day on the trading floor. While you may wish to invest in stocks and shares, you don’t have to be a professional to do it. Many novice investors are now choosing to speculate on a range of financial ventures rather than allow their tasty little nest eggs to accrue only the minimal interest as they wallow in savings accounts. Take a look at these options that you could explore to build your very own investment portfolio.

Property

Nearly everyone has a friend nowadays who has purchased a second property to rent out. Becoming a landlord is getting easier with the emergence of companies like 719Rent.com who will allow you to relinquish the practical responsibilities of being a landlord and just recoup the financial rewards. For a small fee, they will screen your tenants, sort out any maintenance issues and always remain up to date with current relevant legislation.

All you need to worry about is sourcing the property in the first place. It’s a good idea to stick to well established rental areas with high-quality housing stock. If you can purchase the worst pad on the best street and carry out some minor renovations, you can also outperform the market. Long-term, property is a sound investment if you ensure that the rental payments you receive each month cover your mortgage costs.

Cryptocurrency

While you won’t want to place all of your monetary eggs into the bitcoin basket, you could still jump on the cryptocurrency bandwagon by using an exchange like the ones mentioned at techradar.com. The rollercoaster ride is not for the faint-hearted as daily falls in value can be as much as 35%, but equally astronomic rises have also been well documented. With Bitcoin ending 2017 at a value of nearly $20,000, it’s obvious why novice investors want a piece of the action. If you do invest in Ripple, Ethereum or Bitcoin, you need to keep abreast of the fluctuations daily and buy and sell at the right time. This is made difficult by a volatile market and no accurate way of forecasting values in the future.

Wine

The idea of investing in wine may seem like a novelty and a tad odd, but people have been doing it for decades. If you can do your research and locate a decent vintage year such as a 1982 Beaujolais or a 1991 Riesling, you could be onto a sound long-term investment. Buy a case or two, store it at a central facility and sit on your investment of wine. As the vintage becomes more scarce, it will gain an antique like quality, and plenty of wine collectors will pay top dollar for your rare bottles.

Having a portfolio of investments means spreading your risk. While you might want to have a dabble down all of these investment avenues, ensure that you hold some money back in your savings account for a rainy day and always keep your eye out for new and exciting ventures.

Why Is You Business Going Downhill After Years Of Success?

business statusIf you drew a graph of everyone’s life, you’d find that it’s never just a straight line. No one has a straight line constantly moving upwards showing them get more and more successful from the day they’re born. Likewise, no one has a line going downwards all the time or staying level. Instead, we all have moments where things are steady, then they get worse, but then they might get better.

The same can be said of any business venture ever. If you’re reading this, then I bet you’ve been a business owner for some time. In the beginning, things were how they are in most businesses; it was steady, and you were just treading water. Then, you found your feet, and things took off. You saw a lot of success, with lots of customers every day. Now, for some reason, everything has gradually come to a halt. Your business is going downhill, and you have no idea why. You’re looking for answers, and you’ve come to the right place.

While every business is different, and your failures could be caused by things specific to you, there are plenty of common reasons that businesses start going south when they used to have a northern trajectory. Take a look at these reasons below, and see if they apply to your company.

You’re No Longer The Best

Often, small businesses see initial success because they’re the best at what they do. When you started up, you were the only company offering certain services or products in that area. You mopped up the market, and everyone came to you. Naturally, other entrepreneurs see your success and want a piece of it. So, established businesses alter their approach and try to rival what you offer. New businesses pop up trying to compete – and succeeding. In the end, you’ve now got way more competition, and you’re no longer the top dog. Here, you need to alter your approach and start being proactive. Assess your new rivals, figure out their weak points, and use them to your advantage. Don’t just do the same thing and expect things to change. People have outsmarted you, it’s time to be twice as smart as them.

You’re Outdated And Old

A lot of small businesses start failing because they’re seen as outdated and old. Online companies may have websites that just don’t fit with the times, or don’t offer the high level of security that others now do. Retail stores may not have an updated POS system that accepts card or contactless payments. Every business has elements to it that can become outdated and replaced with modern things. Sure, plenty of companies want to try and stay as traditional as possible. I get it, that might be your thing, your USP that makes you different from everyone else. Well, as we already discussed, that USP isn’t working anymore. So, you should start thinking about bringing your business into modern times, and also prepare for the future. A tech-savvy business tends to do a lot better than one that’s still using outdated methods, machines, and everything else.

You’re Offering Things That Are No Longer Desirable

This last point merges in with the second point about being outdated. There, I was talking more from the perspective of technology in that your business isn’t modern, it’s old. Here, I’m talking more about the products/services you offer. The first point spoke about other businesses offering what you offer, but better. This point is about instances where your product/service just simply isn’t desirable to the consumer anymore. The best example of this is a shop that sells a particular type of clothing. Let’s take things to the extremes and say you opened a store that sold fur coats. There was a time where this was highly desirable to consumers. Now, real fur is looked down upon and seen as unethical so no one will buy your stuff anymore. The same applies to service-based businesses; a service that was desirable five years ago might not be desirable anymore. I have a potential future example of this with web design companies. Who knows, in a few years there could be software out there that fully builds sites better than any designer can, meaning this service is no longer needed. You get the picture, and the only way you can improve things is to completely change what you’re selling. Think of something new and exciting that fits current market trends. Don’t force yourself into a small box where you’re restricted in what you can do.

The bad news is; your business is going downhill because of one of these reasons (or all of them). The good news is; you can fix things and start that upward curve on your success graph once more!

What You Need to Know About Cryptocurrencies in 2018

money coins mattersIf you’re at all interested in investing and using your money to its maximum potential, then right now, you really do need to know about cryptocurrencies. It might turn out that they aren’t the right thing for you, and it might turn out they are the perfect way for you to use your money, but you won’t know that unless you know a few things about them first…

Cryptocurrencies are Pretty Volatile

Before you even think about investing in Bitcoin or other cryptocurrencies, take a look at this Bitcoin Blog, and you will see that cryptocurrencies are very volatile which means you can see a huge rise or fall in price every day or even hour, depending on the market. This means you can make huge profits, but you can also make huge losses too. So, if you’re risk averse, they probably aren’t the best investment option for you. However, if you’re willing to play the long game, adding some digital currency to your portfolio probably isn’t the worst idea.

Cryptocurrencies have No Backing

The money you have in your bank account, wallet has backing from either the government or central bank, who regulate it. This is not true of cryptocurrencies, which not only means they are more easily lost, but they are also more difficult to quantify in terms of value. That being said, the fact that they are so deregulated and about as anonymous as you can get does have it’s advantages when you’re looking to manage your money as effectively as possible.

Bitcoin isn’t the Only One

Bitcoin was the first cryptocurrency, and as a result, it is the one that most people have heard of, but it isn’t the only one. There are more than 1,300 cryptocurrencies currently available, although Bitcoin does account for more than 54 percent of the market’s worth. What does that mean for you? If you want to make big profits, it may well be better to look at up and coming cryptocurrencies over Bitcoin. The Cryptocurrency Facts website is a good source of currencies. Check it out and see which currencies seem most likely to make a profit for you.

Blockchain is Where the Profit Is

There has been somewhat of a frantic rush to invest in various cryptocurrencies, most notably Bitcoin, and although lots of people have made pretty good profits investing in it, where the real profit is in the Blockchain technology itself. If you invest in the creation of better Blockchain technology you’re more likely to make money with less risk than if you just invest in the currencies themselves.

You Can Mine Them

Something that novices to cryptocurrencies don’t know is that you don’t necessarily have to buy them – you can mine them too. However, in order to do this, you need to invest in a lot of expensive computer equipment and use a lot of energy, which means that unless you have a huge stake and you plan to treat mining like a business, it’s probably not for you.

Now that you know a bit more about cryptocurrencies, are you tempted to invest in them, or would you rather stick to more traditional means of growing your money?

3 Strategies To Increase Your Stock Returns In 2018

money stocksImproving your investment results is no easy task. The stock market is not for the faint-hearted and emotions can get the better of us as investors. As 2017 comes to an end, you may have noticed that your investment portfolio doesn’t look as healthy as it originally did. However, there are tools in which you can use to your advantage and boost your stock returns to the numbers you want to achieve. These are three strategies to receive more financial gain.

Value vs growth method

With the use of index tracking, value companies have outperformed growth companies in the U.S. and international stock markets. Focusing your investments on value instead of growth companies will increase your chances of receiving higher returns.

By doing this and using financial tools such as a covered call screener, you are more guaranteed to get an increase of returns in 2018. Even though value companies have lower stock prices than growth companies, several value firms will offer stock brokers an annual dividend payout. Dividends are particularly useful if the price of a stock has slow appreciation during a time period.

Rebalancing strategy

Inevitably, your investment portfolio will decrease from its original asset class percentages and won’t appear as healthy as it first did. The method of adjusting the portfolio back to its original allocation is known as ‘rebalancing’.

There are a couple of ways in which this can be accomplished. These are: adding money to the under-weighted section of the portfolio, selling a portion of the over-weighted section and adding this to the under-weighted piece, or, taking withdrawals from the over-weighted assets.

By rebalancing, you are enhancing your portfolio performance and making it look more financially appealing to potential sellers. Not only does it do this, but it puts your investments back to the original level of risk tolerance. Keeping an eye on your portfolio and ensuring that each investment is being efficient with beneficial results is key to selling high and buying low. This means that you’re more likely to make profits than losses.

Prioritising equities and bonds

Before we go into detail over this strategy, let’s first establish the difference between an equity and a bond. Equity is essentially another name for a stock, where investors buy them to generate growth. The ideal equity is one which increases in price over time which allows the investor to sell their share for a large profit. However, a bond doesn’t give much opportunity to grow in value and instead, provide regular portfolio income.

Even though investing in equities can be more volatile and risky, the stock market has consistently outperformed the bond markets over the past decade. But, by carrying out a manageable combination between the two within your portfolio, this can offer better stock returns.

Let’s round it up

As an investor, you can see just by reading these simple strategies how boosting your stock returns and improving your portfolio can be easily done. The key rule is to prioritise your portfolio by keeping it balanced and consistent. Don’t get carried away with the influx of money and lose your main financial vision.

Advice For A First-Time Business Owner

time for businessIf you have entrepreneurial determination then that’s a good starting place for a business. Of course, it’s only one component of many. You need to think about your own experience or expertise regarding the management of a business, how you’re going to fund such a venture, how many other people you might need to hire to help you with this company, and, most importantly, what type of business you’re going to start. Money is probably the biggest worry on your mind but if you focus on making sure all other components of your business are running smoothly then the profits will look after themselves. Here’s some more detailed advice for any first-time business owners out there.

Become a real boss.

You might have an innovative idea and qualifications in a certain line of business but that isn’t going to be enough to transform you into a successful business owner. When you’re the boss of a company, you need to be an all-rounder. For example, if you’re running a legal business then it isn’t enough to simply have a qualification in law. You need to know how to manage finances, marketing, and, most importantly of all, people. If you want your business to get off the ground then you need to learn how to manage your team and fill them with the same passion for the company that you feel. Making that step will transform you from somebody with a great idea into somebody with a great business.

Research the market.

It’s your job to drive the direction of the company. You might have a good business plan at the moment but the market is always changing. You need to update your approach in order to adapt to a changing industry. You need an enticing and widespread online presence in this digitally-driven era of business, as we’ll discuss in the next point, so you might want to look into online companies such as Youi Pty Limited, who deal specifically with buying and selling goods online, for a little insight into their credit ratings and financial situation.

It’s important that you take note from other companies, whether they’re in your industry or not, so as to not only get an idea of what they’ve been doing well but what they haven’t been doing well. The great thing about being the second or third business to dive into a certain industry is that you don’t have to make the same mistakes as the companies that took the plunge first. You can save yourself a lot of money and time by figuring out how to cut straight to “Successville”.

Get your online marketing campaign right.

As touched upon in the point above, you need a strong online marketing approach in order for your business to succeed. You might not be a marketing expert but you should certainly get marketing professionals to help you if that’s the case. The “build it and they will come” mentality doesn’t always work because there’s a lot of competition offering the same products and services as your business. You need to stand out from the crowd if you want consumers to come to you. Figure out how to optimize the content on your website and social media pages so as to climb the rankings on Google and other search engines. That’ll get you in front of your target market.