Posts tagged: trading

The Business Costs Startups Should Never Skimp On

invest in start upsAs a startup owner, chances are that you don’t exactly have a huge and unlimited pool of money at your disposal and it’s only natural, and sensible, that you should try to make savings wherever possible if you want to be in the best possible financial situation 12 months from now, but there are some things that startups just should not even think about skimping on.

Here are some examples of the kinds of things you MUST invest in if you want your business to be a success commercially and financially:

Reliable IT Services

So much of what we all do now is done at a computer, tablet or smartphone, and online is the space that modern businesses really need to conquer. What this means for you as a startup owner, is that you really cannot afford to skimp on reliable IT services. If you cut corners in this department, not only could you lose money when your network goes down, but you could actually risk losing sensitive data, and that could get you into a whole lot of trouble, not to mention cost you a whole lot of cash. It really isn’t worth the risk, especially when you can find great IT services which are moderately priced.

Data Backup

It’s also sensible to invest in a good data backup system, preferably in the cloud, so that should your website be hacked and your data lost, you will be able to instantly recover it. You can backup your data securely for as little as $10 per year, so it really would be foolish not to do so, especially when a loss of data really can cripple a small business.

Great Design

A lot of what determines whether or not a business will be successful, rightly or wrongly, is how attractive its brand is. Think of all the massively successful companies out there; your Google’s, Coca-Cola’s and Nikes and you’ll notice they all; have one thing in common – an instantly recognizable brand. If you want to be in their league someday, you need to invest in great design for your website, logo, business cards and, where applicable. Your products.

High-Quality Web Hosting

A lot of small business owners opt for the cheapest web hosting package they can find available to them. This is understandable, after all, hosting is hosting, right? Wrong! Very wrong! You see, a lot of the cheaper hosts go offline a lot, and when your website is down, that means you are losing money. Not only that, but a poor host could mean a slow website which will put customers off and prevent your media from effectively loading. Factor in the time you spend sorting it out, and the losses to your company could be huge.

Web Design

As well as putting a great web hosting package in place, you should also invest some of your startup capital in creating a website that looks beautiful and performs flawlessly. In the 21st Century, your website is often the first thing about you that the consumer will see and if it looks awful, well, they’re hardly going to have much confidence in your products and services are they? Don’t make the mistake of using a basic template when even just a little investment in a custom solution can be all that it takes to make that sale!

Creative Content

Naturally, you’ll want to put some content on your website so that people can actually find your company. If you want that to happen, it pays to invest in high-quality content written by professional copywriters, either on staff or freelance. If you do this, you can bet that you’ll make your money back and then some in the fullness of time.

Customer Service Training

Most startup owners are so focused on the future and how they want their business to be a year, two years or even ten years down the line, that they often lose sight of the things that need to be done now to get them there. One such thing is high-quality customer service training.

You see, although customer service might not seem like your most pressing issue right now, or even something you can justify using the business credit card on, it is actually one of the most vital tools in your arsenal. After all, your customers are the people who will make or break your business, and without them, you won’t even have a business at all. Once you realize this, it’s well-worth taking the time to invest in the right training so that your employees always treat your customers right.

Legal Counsel

We all know that legal fees are expensive, lawyers aren’t exactly known for being poor, after all. However, there is absolutely no way of getting around the fact that, if you want to start a successful business and avoid future financial difficulties and even bankruptcy, you need to invest in good legal counsel when you set up your business. If you don’t do this, you could end up making a mistake somewhere down the line and getting sued and, as I’m sure you will know, the cost of litigation, not to mention the cost of compensation should you lose a case, can be astronomical.

Great People

You can try, but I would bet against you starting a successful new company without a few good people by your side to help you along the way. Every company’s biggest cost is its payroll and hiring more employees than the minimum or those who don’t exactly come cheap might seem like a good way to cut business costs, but if you want your company to grow, you need to invest in the most creative, hardworking qualified people and you need to invest in enough people so that none of you are spread too thin.

As the old cliche says “Sometimes, you have to speculate to accumulate.” This is something that is certainly true in the startup world, and especially when it comes to these particular things.

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Thumb Rules of Investing in Stocks

investment in stockMaking profits in the equity market is not based on your luck. With a disciplined and research-based investment approach, you may be able to earn high returns. In addition, using some basic thumb rules based on the experience of other successful investors will help you earn profits.

Here are five thumb rules for investing in stocks

1. Do not try to time the market

Predicting the tops and bottoms in the equity market consistently over several cycles is almost impossible for seasoned investors. In reality, most people who try to time the market lose money.

2. Take a disciplined investment approach

Historically, great bull runs have also had their moments of panic. The volatility in the equity market has resulted in people losing money even during bull runs. However, if you follow a disciplined investment approach with long-term goals, it is most likely that you may avoid losses.

3. Invest in a broader portfolio

It is recommended you invest in different stocks across various sectors. Furthermore, you must include several asset classes to reduce your risk exposure. The different types of instruments that may be included in your investment portfolio primarily depends on your risk appetite and financial goals.

4. Monitor your portfolio regularly

The stock market is not only affected by domestic happenings. International occurrences also affect the equity market today. Therefore, it is very important that you monitor the performance of your portfolio regularly and make modifications as required. In case you are unable to track your portfolio at periodic intervals due to lack of knowledge or time, taking the help of an experienced financial advisor is recommended.

5. Avoid leverage

To ensure you do not face financial difficulties, you must invest the money that you can afford to lose. It is vital that you do not take on debt for stock market investing. In case the stocks do not perform as expected, there is a huge risk of losing the borrowed money and repaying the same may have adverse results.

Stock market investing may be highly profitable. However, you must do your research and make informed decisions. Furthermore, you must never let your emotions control your decisions and be realistic in your expectations.

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Getting Ahead with the Top 10 Binary Options Brokers

options-brokersWhen you are active in the binary options market, the specific brokerage service that you use can make a huge difference in the kinds of profits that you can generate through your trades. There are more than a thousand brokers that you can find online, but it can be tricky to know which ones are going to offer the right services, tools, and terms to help you to be successful in your investments.

If you’re looking to work with one of the top 10 binary options brokers, consider some of these basic guidelines that can put you in touch with the right firm:

Regulatory Controls

Not every broker is licensed to operate in the country that they serve. In some cases, this is not a major problem. For example, many traders choose to work with European brokerage firms that are not licensed to work in the United States, but who accept traders from the U.S. However, these firms may be controlled by the corresponding entity, CySEC, in the country that they operate in and may hold a license that correlates to it. There is some manner of risk in using a service from another country, since funds are not guaranteed to you in the same way that a service from your own country might be, but it is still possible to work well with a broker from another country.

However, you’ll want to make sure that the firm does hold a license from a regulatory body, not just marketing themselves as being regulated, and that you understand the kinds of regulations that might affect the firm, so that you can protect your investments.

You’ll also want to explore the terms of the brokerage service prior to committing funds into an account. Some firms charge excessive fees or have lengthy retrieval times for profits that are made using the service.

While the specific brokerage firms that can be counted among the top 10 binary options brokers are constantly changing and new brokers are being added to the market continuously, it is possible to find and partner with some great service providers who help to make it easy to generate profits. There will always be some degree of risk in the binary options market, but having the right kind of binary options brokerage service on your side can help you to navigate the waters with a little more ease.

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Investing In IPOs

stock investmentsIn the often confusing world of the stock market – and its fondness for acronyms – an IPO is an initial public offering – simply meaning when a company sells shares of its stock to the public for the first time. Before it becomes an IPO, a company is said to be privately held, meaning its ownership falls into the hands of a select few, and it isn’t listed on any Stock Exchange or traded by brokers such as CMC markets, you can look but you won’t find.

So how and why does a company decide to become an IPO? The reason is usually a financial one – a large company stands to make a lot of money from the sale of its shares, although many smaller companies also issue IPOs. The company will try to anticipate exactly how much profit and what the capital will be used for – for example to fund expansion or development. The company’s management decides on a particular day that the shares will be made available, and of course the anticipated asking price, with guidance from at least one investment firm. The 1990s saw many small start-up companies selling large amounts of stock through usually well-publicized and successful ventures, which has made the IPO popular among small and large investors alike.

Investing in IPOs can be risky and unpredictable though, and many investors advise against it unless you are particularly experienced and knowledgeable. One of the difficulties is that there is no existing track record as to how the shares will perform over time. Much of the profit and risk potential of buying shares in an IPO depends also upon the state of the market that particular time, the level of interest and even the general economy.

So how does one try to make a profit from these investments? Sometimes it depends on who you know as well as what you know. If you are lucky enough to work for the company in question, you may be offered a number of shares at a substantial discount or even have them given to you. Many IPOs are heavily oversubscribed, meaning there are more offers to purchase shares than there are available shares; in this situation, an employee or client would be given preference. This is one of the drawbacks of IPO’s – the majority of the shares may be allocated or offered first to employees, retirees, clients, etc. rather than the general public.

Do some research on the company that is intending to put out an IPO. There are many different financial newspapers, journals and web-sites that provide information and forecasts. The company is also required by Federal law to put out a prospectus detailing the offer, although this can be a lengthy and confusing document. Pay particular attention to the most recent earnings of the company as well as their projected earnings. Is the company you are planning to invest in solvent? Do they borrow money heavily to repay debts? Find out what the company’s product or service is, who its competitors are and what percentage of market share it has. A company whose product or service is seasonal or temporary might not be a profitable long-term investment.

One of the most attractive features of IPOs is that the shares offered are usually priced very low. In fact, the stock price of many companies can increase significantly during the day that the shares are offered, occasionally as much as 500 %. If you are fortunate enough to move quickly and buy the shares as soon as they are offered, you can sell them again that same day for at least a small profit. Many ‘speculative’ investors are more interested in this short term profit potential rather than any long term gains. If you are what is known as an ‘income’ investor, you are more concerned with the company’s long term profits and dividend potential.

Some serious investors advise that rather than buy shares when the company is first launched, you should wait a while – say a period of several months – even years – to get a better feel for how the company is doing financially. The share price usually ‘settles down’ after the initial excitement, and you can get a better idea whether it’s a good buy or not. In the long term, this can be a safer way to make a profit rather than buying at once.

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How The Information Age Turned Investing On Its Head

investment mattersI’m sure you’ll agree that the internet is one of the most revolutionary leaps forward in history. How many times have you used an internet connection today? How much harder would your life be without that? Pretty much every facet of our lives has been influenced by the world wide web, and investing is no exception. In this post, we’ll take a look at how the dawn of the information age has changed the way we invest.

With the sheer size of the internet these days, it’s pretty tough to explain exactly what it is. At the core of it, it’s one giant bank of information. The internet has made information more accessible than ever before, and stock traders have benefited from it exponentially. Before the internet, an investor’s job was incredibly long-winded. Every time you wanted to find out about a company, you’d have to head to a library and sort through stacks of financial journals. Lengthy files on the history of stocks and bonds would have to have been leafed through until you found what you were looking for. The only alternative would have been calling up a company and asking directly for a financial report. This would not only cost a lot in the way of postage, but would also take a lot of time to gain any benefit from. You would have to wait for the report to be printed and posted. After that, you’d start again with the process of sorting through all the information yourself!

The internet immediately sped up this entire process. These days, you can get onto the SEC website in a matter of seconds, and view company reports in detail as soon as they’re updated. Lengthy, detailed documents on financial histories can also be downloaded in an instant. Then, you can easily search for keywords, figures and specific topics. With the erratic nature of the stock market, these quick updates became an essential for any successful investor. Many modern companies also keep up investor relations web pages. Here, you can find all the same files, presented in a clear, simple way. This created a pretty significant shift of power in the world of investing. Before the information age, investment managers and brokers had a huge advantage over investors like you and me. They had immediate access to detailed financial reports, without having to go through the same trials as investors. This has completely been turned on its head now! Some online resources will provide information for an affordable fee. Others even offer their valuable information for free! Perhaps the biggest change technology has had on investment is lowering investor’s fees. This has been seen in precious metals, FOREX and everywhere else in the world of investing. Retail investors have benefitted the most from this however. These days, it’s completely common for online brokers to charge a mere £6.00 for a trade.

As the internet has become more widely used, the power has gradually transferred to the little guys. Let’s hope that future technology continues to do so!

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