What is a Stock?

A stock represents ownership in the assets and earnings of a company. A company issues stock through equity financing, which is the process of selling an ownership interest, or a “stock”, to raise funds for business purposes. This is what differentiates a stock from a bond: bonds are raised through debt financing, in which a company promises money in return for investment. Stocks give one a share in a company’s profits, while bonds are essentially interest on a loan. Additionally, stocks give owners one vote per share to elect company board members, whereas bonds do not give owners the right to vote.

Types of Stock

The two main types of stock are common and preferred. Like the name states, common stocks are the most popular type of stock and contain all the features described in the last section. In contrast, preferred stock provides a fixed dividend. In the case of liquidation, preferred stockowners are paid off first. However, since preferred stocks don’t contain the risks of common stock, they also don’t have the potential for high yields. With their fixed dividends, preferred stocks are similar to bonds.

Common stock can also be divided into classes such as Class A and Class B. The most common reason for doing so is because the company wants voting power to remain within a certain group. For example, Class A may have more voting rights than Class B.

Why Buy a Stock?

People buy stocks for capital gains. Presently, bank accounts and bonds pay out low interest rates. This is why people turn to stocks for income. Stocks are also bought to diversify investments. For example, if someone has a lot of real estate, they may seek to balance this with the purchase of stocks. The same is true if one has money in art, antiques, etc.

How to Make Money on a Stock

The main way to make money on a stock is through appreciation, which is a fancy term for the old maxim: “buy low and sell high.” For example, you buy a stock at $100 and hold onto it until it sells for $200.

Another way to make money on a stock is through dividends, which are additional cash and stock payouts that do not reflect the stock’s overall value. For example, a company may issue a 5% stock dividend, which grants stockholders 5% more stock than they already own.  However, not every stock grants dividends. Just because a company has issued dividends in the past does not mean it will do so in the future.

Types of Investors

Before you invest in stock you must decide what type of investor you are going to be. The traditional type of investor is long-term, or a buy-and-hold type. Before buying a company’s stock these people take a careful look at the company and ask themselves: what is this company’s plan, how will it earn money, how long will this continue and what are the risks? The buy-and-hold investor pays special attention to a company’s management team. All companies encounter problems, and great companies have managers who can solve these problems.

Other people invest in stocks simply to short them. This means that the investor sells borrowed stocks, and hopes that the price will decline so he can buy it back at a lower price. An example of shorting a stock is selling a borrowed stock at 20, and buying it back at 10.

Skilled investors also purchase stocks in the short-term. For example, there are hedge fund owners who buy stocks at opening, ride them up, and sell them by the end of the day. To emphasize, this is something that only skilled investors should practice.

When deciding what type of investor you will be, please keep in mind that Warren Buffet, the most successful investor of our era, buys stocks for the long-term. His ideal holding period is forever.

How to Analyze a Stock

The simplest way to analyze a stock is through its balance sheet. The left side of a balance sheet contains assets, and the right side contains liabilities. The way to calculate a company’s net worth is to subtract its liabilities from its assets. Although net worth is usually positive, occasionally even well-regarded companies such as Clorox Wipes displays negative net worth. For example, Clorox Wipes has solid assets and earns money for its stock holders but has shown negative net worth in the past due to heavy borrowing and depreciated assets.

One can also analyze a company through income statements and cash-flow statements. An income statement shows how much money a company is earning, while a cash-flow statement shows how much money a company is receiving.

Although it is important to analyze a company before buying its stock, one should also keep in mind that stocks trade based on perception. If people think a stock is doing well they will buy it, and if they think a stock is doing badly they will sell it.

How to Buy a Stock

The most common way to buy a stock is through a broker. All you have to do is tell your broker which stock to buy, and how many shares. The broker will then execute the trade on your behalf, and receive a commission. An alternative is to go online and execute the trades yourself and pay a lower commission.  You can check out a great review on online brokers for Canada and the USA here.

A stock may be purchased at “market order” or “limit order.” Market order allows you to buy the stock at its current price while limited order allows you to wait until the price has reached a certain threshold.

This concludes our short guide to stocks. We hope you use the information and tips contained in this article for prudent and profitable investing. If you are looking for a more in depth guide, Stocktrades provides a great article on how to buy stocks in Canada.

Stocktrades provides stock,personal finance and investing information to beginning and intermediate investors. Started by Dan Kent and Dylan Callaghan in 2016, they aim to bring solid investment solutions to your desktop. You can check them out at http://www.stocktrades.ca

Originoption: Technical Analysis and Binary Options

Want to make money trading binary options? The first step is to find a reputable and regulated binary options broker like Originoption. Originoption is based in Australia, regulated by the Australian Securities and Exchange Commission (ASIC) and even offers all clients free demo accounts so you can practice and refine your binary options trading strategy.

Technical analysis is the science (or art!) of studying charts of market prices and using historical data to attempt to determine where the market is likely to move next. In this piece we will take a look at some popular forms of technical analysis that can be applied to binary options markets in order to turn a profit.

The trend is your friend

Trend following is a time honoured and proven technical analysis strategy popular in the forex and stock markets. Traditional ‘buy and hold’ trend following strategies can’t be applied to binary options due to the short term, binary nature of the contracts, but binary traders can still gain a significant edge by trading in the direction of the trend.

The first step is to identify the direction of the trend:

  • An up, or ‘bull’ trend, is characterized by a series of higher lows and higher highs
  • A down, or ‘bear’ trend is characterized by a series of lower lows and lower highs

Once you have identified the trend, the aim is to look for trading opportunities in the direction of the trend. In a bull trend you will be looking for buying, or ‘Higher’ opportunities, and in a bear trend you will be looking for selling, or ‘Lower’ opportunities. You could look to trade a breakout, or continuation of the trend, or another option is waiting for a resumption of the trend after a structural correction.

Candlestick patterns

Candlestick charts were developed centuries ago in Japan and came to dominate western charts in the mid 20th century. Candlestick charts are far superior to a simple line chart as they show you all the information you need to analyze a particular market: the high, low, open and close (line charts only display the closing price). Candlesticks aren’t just a great way of displaying market data though, a savvy binary options trader can use what’s known as candlestick patterns to predict markets.

A candlestick pattern is a distinctive candlestick, or series of candlesticks, that usually leads to a reversal or continuation of the market trend. Reversal patterns are likely the more popular of the two as they help the trader adhere to the age-old adage of ‘buy low and sell high’. There are far too many candlestick patterns to list here but we will name a few of the more popular ones that all traders should familiarize themselves with:

  • Bullish Engulfing – A bullish reversal candle that occurs at the end of a downtrend, closing above the open of the final bearish candle.
  • Bearish Engulfing – A bearish reversal candle that occurs at the end of an uptrend, closing below the open of the final bullish candle.
  • Bullish Hammer – A bullish reversal candle that occurs at the end of a downtrend. A new low is set initially, but the candle eventually closes slightly above or below the open, leaving a small body and long lower wick that resembles an upright hammer.
  • Shooting Star – A bearish reversal candle that occurs at the end of an uptrend. A new high is set initially, but the candle eventually closes slightly above or below the open, leaving a small body and long upper wick.

Candlestick patterns are extremely popular amongst Originoption traders as they can be very reliable for predicting the next market move.

Chart patterns

Chart patterns are another popular method of technical analysis used by Originoption traders. Where a candlestick pattern is usually only comprised of 1-3 candles, a chart pattern is comprised of a multitude of different candles, which together, form a larger pattern. Just like candlestick patterns, chart patterns are very reliable and can signal both trend reversal and continuation.

The most widely recognized and reliable reversal pattern is the Head and Shoulders bearish reversal pattern. This pattern appears at the end of an uptrend and is characterized by a series of three highs, with the middle being the largest, vaguely resembling a human’s head and shoulders. The trader enters short on a break below the ‘neckline’, the line connecting the two shoulders.

Another related pattern is the Inverse Head and Shoulders, which is the same pattern but flipped upside down and which occurs at the end of a down trend. Once again, the trade signal occurs on a break above the neckline.

If you’d like to know more about candlestick and chart patterns, be sure to check out Bulkowski’s thepatternsite.com which has pictures and performance statistics for each and every chart and candle pattern.

This was just a quick introduction to technical analysis in binary options, as you can see there are many different approaches which suit different people and different strategies. It’s also worth noting that these approaches aren’t necessarily used in isolation and are often welded together by the most successful traders. Want to get started? Come over to Originoption today and hone your analysis and trading skills on a free demo account!

How to Get a Month Ahead on Little Income

We know trying to get ahead when you do not make a ton of money can be difficult each month. You want to save, but also want to have money to do what you want to do. What are the steps that you can take to live the life you want?

Here are four steps you can take that will get you ahead on your monthly bills, and offer you some savings in the meantime.

  1. Take account and budget

One of the best ways to getting a month ahead on little income is to create a budget that you can actually stick to. Take an accounting of all of your monthly bills that need to be paid. Rent or mortgage, credit cards, cell phone, utilities, and any other bills you get on a monthly basis. Determine how much all of this costs.

As a tip for getting ahead, you will want to take a close look at all of these bills. Is there anything you can cut? Is there anything you can get reduced or switch to a cheaper option? There are a lot of competitors out there for various industries. Make sure you are getting exactly what you need, and not more. No one wants to pay for what they do not use!

Once you have this solid number of bills, you will want to subtract that number from your net income. The rest is what you have to work with on a monthly basis. From there, you can determine your budget.

Image source: Pixabay

  1. The biggest money percentage

Did you know, besides rent and mortgages, your food budget is usually your biggest expense for the month? Going out to eat, even fast food counters; add up to more than going food shopping every week. The key here is to plan. If you can plan every meal, even do all of your cooking on Sunday if possible, then you can save money and get ahead. Cooking together as a family is fun, there is no need to spend money on restaurants.

The rest of your budget can go towards other household items needed, like paper towels and laundry detergent. But look for other options as well. There are many recipes for cleaners that are cheaper to make than the pre-bottles stuff, and just as if not more effective.

  1. You can still have fun

There is a way to plan into your budget a night out once a month since going out all the time takes away the special feeling off it. Plan a great weekend night out and set a budget for it at the beginning of the month. Also look into free events, live flea markets and museums that can be a great time without spending a lot of money.

  1. Individual investor programme benefits

Employing these tips here can help you get ahead on your monthly bills, but you will want to create savings as well. Avoid the costs of commissions by investing in an individual investor programme. These individual investor programme benefits can help you get ahead with your investing, and save you money for the long term. These programmes offer benefits including unbiased, actionable investment education. With these types of programmes, you will learn how to invest your individual assets, whether your goal is retirement, choosing winning stocks, or finding the best mutual funds, the benefits of these types of programmes is endless.

You do not want to pay for someone else to do the work you can do yourself. You make the decisions about investing your hard earned money with individual investor programme benefits.


If you want to get ahead on your monthly bills with little income, just follow these tips to start, and figure out a budget that is right for you. With your saved money, invest it to earn more, but do so in a way where you get the most benefit out of it with individual investor programme benefits.

About the Author:

Elena is a Finance Content Executive at http://www.maltasothebysrealty.com/.  She is a passionate blogger and an avid traveler. Outside of work she helps young adults get a better understanding of how they can stay out of financial troubles.

How to invest in your passion

Passion is an integral ingredient of success, so turning a passion into an investment is as rational a pursuit as it is emotional. Those who can hone their strategies with as much skill as Rodin once honed marble tend to enjoy financial benefits, too. Photographer, Brassai said, “One must have the courage of one’s vocation and the courage to make a living from one’s vocation.” The fun will automatically follow. Whether purpose is found in the arts or corporate finance, entrepreneurship or gaming, there are techniques that will attract returns.

Where Collecting and Asset Building Unite

Collecting won’t turn a profit tidy enough to retire on, but hobbyists who are passionate about the pursuit will gain enough entertainment value to make the mediocre financial returns well worthwhile. Forbes calls collectibles an ‘emotional asset’ in that the time investment is significant and the general return is equal to what one might make from a savings account. Inflation-adjusted returns over a century generate about 6.4% across a huge array of collectibles, which is significantly lower than the returns on equities.

Collecting requires knowledge, and the internet makes that easy to acquire. The savviest way to handle collecting is to buy before an item has value and sell it once that piece has enough years behind it to deliver significant returns on auction. Alternatively, prowl auction sites to build complete collections that sell for far more than each individual part does. Anything from clocks and glassware to art and toys can gain enough value to become an investment. Gifted buyers might even discover the instrument of a legendary musician or a vintage motorcycle. Auctions are the purest market because they operate per basic supply and demand. Navigating them profitably entails buying when demand is low and selling when it rises.

Career Investing

A stock performs the same regardless of how the investor lives, but invest in the right career path, and the returns can be magnified exponentially through hours of hard work. An elite degree can earn $900, 000 over 20 years, and a wisely chosen field will produce the kind of returns money can’t buy. Confucius said, “Choose a job you love, and you will never have to work a day in your life.” Even so, research is required to remove risk. Choose institutions that deliver the highest returns and use sites like PayScale to make sure that chosen career path will pay in the long-term.

Source: Pixabay

Gaming the System

They say life can’t all be fun and games, but learn to play poker like a pro, and the probabilities are your financial outlook might get a lot brighter. Whether the hobbyist’s idea of fun is learning a few strategies to keep the mind sharp or truly anteing up at a poker table, there are three ways to monetize this kind of career:

  • Brands will sponsor gamers who’ve already built a name for themselves.
  • Gamers with a gift for entrepreneurship and public relations can brand themselves as weblebrities or well-known personas.
  • Partnering with teams that already have established marketing campaigns lets gamers leverage the brand power of others.

It’s also possible to bolster this investment further by running workshops, monetized blogs, and YouTube courses. The basic principles of turning games into an investment apply across sporting, strategic table games, and even video games.

Source: Pixabay


Starting a business in a field you love can be a superb investment or a nightmarish one depending on how impressive your entrepreneurship skills are. Bill Gates crashed so badly in the Nineties that his product was eventually given away free of charge. Determination is often all that separates failure from success. Business owners who bury themselves beneath their own failure never get far enough to open a company as legendary as Microsoft.

Like any investment, business ownership is romanticized in the minds of laypeople. The same strategies that apply to equities apply here: unrealistic expectations and greed will be an entrepreneur’s downfall if he lets them be. Building wealth is time consuming. Success must be gained one small step at a time rather than overnight. Hard work is required, but an education is just as critical to success. Business management, marketing, and even economics knowledge will add to returns. Those who are disciplined enough can even do free online Oxbridge business courses.

Picasso was pragmatic about his passion. He paid as much attention to the pricing of his art as he did to its composition. That’s why he was one of the few who succeeded in his own lifetime. Crowd funding has only made it easier for hobbyists to invest in their passion. All that’s required is an internet connection and a dream. Angel investors will handle the rest of the initial investment. Once that’s done, all that’s needed is a strategy and a stubborn insistence that dreams can, indeed, come true.

How to Prevent Delays From Destroying Your Business

Any kind of delay can harm your business. Whether the delay involves late product delivery, lack of response from your customer service team, or overdue payments, the end result is the same: loss of revenue. The goal of any business owner is to strategize ways to stop allowing delays to hurt your bottom-line.

Production Delays

All companies want to deliver the best product possible to their customers. However, during production, delays are often inevitable. Although you don’t want to deliver a second-rate product, how do you manage to satisfy customers who have been anxiously awaiting the product’s arrival? The key is to avoid making promises your company can’t keep. Although you might be anxious to introduce a new product or service to the masses, keep things under wraps until you have a firm release date.

If you have experienced delays in the past with the delivery of products and services, take a close look at what went wrong. Learn from past mistakes to avoid them in the future. If you keep clients waiting too long, they may just take their business elsewhere.

Payment Delays

One of the biggest threats to your business is payment delays. Making a sale is a good start, but collecting on that sale is what truly matters to your company’s sales ledgers. Not collecting your payments on time can affect the cash flow for your business. Suppliers, staff members and taxes must still be paid regardless of your payment woes. Worse yet, a business with too many outstanding payments can end up folding under the strain.

Although you should have cash reserves to keep your business afloat, you don’t want late payments to become a consistent headache. Your goal should be to help your customers make their payments easily and on time. One way to achieve this is through the use of faster payments software. Faster payments software paves the way for safe and secure electronic transactions. Instead of waiting weeks for payments, your company will have debts settled the same day. Users have 24/7 access to a cloud-based software program and can make their payments at their convenience. Due to the speed of the programs, companies always have the latest account data.

Project Delays

One of the highest valued qualities for employees is punctuality. Employers want staff members who show up on time and deliver their work within the expected timeframe. Some procrastinators within your company may be hurting your company by consistently missing deadlines and always having an excuse for why their projects are delayed. Although your gut reaction may be to clean house to solve the problem, there are strategies you can use to inspire employees to get their work done on time.

  • Be clear and concise in instructions. Allow the employees to have options, but make sure the options abide by any time constraints.
  • Focus more on the start date, then the end date. Once employees get going, the end is already in sight.
  • Ask employees to seek out feedback frequently. Don’t ask only for the final product. If employees are forced to check in, they will feel more obligated to stay on top of deadlines.
  • Be flexible to a point. Some delays are foreseeable and you may have to be accepting of them.

Customer Service Delays

However you feel about it, there is a common belief that the customer is always right. And customers want timely service. Delays devalue the service you are providing. Scientific research supports this idea. In a 1989 study published in Advances in Consumer Research Volume 16, researchers found that customers’ perception of service was more negative during delays that occurred in the pre-process and post-process phase of a restaurant.

Not all customer problems can be fixed right away. The ideal strategy is to keep them well informed. Let them know the lengths you’re going to as a way to resolve any issues. Receiving a customer email and not responding for days will not inspire customer loyalty. If you receive a high email volume this can be problematic.

In this case, use an email ticketing system to manage responses. This will at least let the customer know his or her email has been received and your team is working on the issue. If any kind of resolution seems far off, shoot off a quick email to let the client know the cause for the delay. Your customer is likely to be much more understanding if they are kept in the loop.

Stay on top of any company delays to reduce financial and help your business thrive.

Are Canadians making Embarrasing Financial Decisions?



According to a recent Ipsos survey commissioned by LowestRates.ca, Canadians are jumping into big financial decisions too quickly.

Canadians, in general, are committed to finding a bargain. But when it comes to the most important personal financial decisions, many are not conducting their due-diligence. The average Canadian, for example, spends less time choosing a mortgage provider than planning a vacation.

I found these survey results of the personal financial habits of Canadians, pertaining specifically to major decisions, like choosing a mortgage provider, very interesting!

It is interesting comparing how much time we spend thinking of vacation destinations and paint colours versus shopping for a good mortgage rate or insurance premium!

It’s hard to fault people for allotting more time to more enjoyable tasks in life. Part of the fun of vacationing is the planning. It’s something people like to do. Selecting a paint colour isn’t necessarily fun in the same way, but it is a decision that impacts people in a tangible manner, on a daily basis.

Whereas premiums and monthly payments might make us cringe they are something we only face once a month (or less), and oftentimes the action required to make those payments is automated. The paint in our bedroom is something we see everyday, which in that sense, certainly makes choosing one we like looking at seem like a monumental decision.

But of course this perception is skewed to favour immediate, visible gratification. Choosing a mortgage provider or auto insurer may be strenuous, boring or even painful, and the results of that decision are not quickly obvious, yet still, the actual impact of choosing one mortgage provider over the other will have a far greater impact than saving a $100 on a flight. And it goes without saying that the money saved by choosing the most cost-efficient mortgage provider puts the money in your pocket to indulge a little more with travel or home decor. The irony!

Here is a link to the official survey results.

Choosing an Online Stockbroker

In the past, many people considered stock trading as a complicated endeavour that no one could attempt without enlisting the assistance of a broker. Today, however, the situation has changed. Online stockbroking platforms such as CMC Markets have contributed greatly to the levelling of the playing field.


There had always been a mysterious perception of the traditional stock brokerage industry. Many people assumed that you were only qualified to directly trade in the stock market if you possessed certain special skills. This discouraged many people with just the right potential to make it big in the industry from making any effort. Only the unperturbed ones sought to pursue their investment dreams at a great cost in paying brokers to manage their trades as well as offer financial advice.


With technological advancement witnessed all over the world, stock market investors now have their future in their hands. Not only can they make independent decisions on the kind of trades they want to put their money on, they can also do it more efficiently and cheaply. All you need now is the amount of money you would like to invest and an internet-connected device such as a computer, a phone or a tablet. In the end, you realise that the benefits of choosing to work with a brokerage site outshine those of using a traditional broker by far.


Better Control


Despite putting forward the notion that they were taking care of every individual investor’s needs, traditional brokers were in real sense looking after their own gains. For instance, they would seek to promote particular mutual funds that had a certain partnership with them. On the other hand, online stockbrokers will not try to force you into any special strategy simply because they have nothing to gain from doing it.


It is always smart to seek the assistance of an experienced hand in stock trading. However, all some people want is to place their trade and be done with it. With online stock brokerage, your decision is entirely your own. If you succeed or fail in your trading, it’s all your own doing. The greatest advantage is the fact that you won’t have someone telling you what to do and what not to especially when you feel that you don’t need any second opinion.


Trading What You Want, When You Want


In the traditional stock trading setup, you could not just wake up and decide to place your trade. In most cases, you would have to contact your stockbroker and probably arrange for a face-to-face meeting. This not only resulted to loss of time but you could also be misled into trading wrongly or rejecting a trade that could have earned you great profits. In addition, there may not have been enough time for consulting your broker and you would lose a promising trade altogether.


In the world of online trading, you can access your portfolio from anywhere in the world, anytime of the day. All you need is internet connection and a web portal provided by your online brokerage firm. Among other executions, you can check prices, place a trade or effect some changes to your portfolio without having to rise from your sofa or interrupt a vacation in a faraway resort.


Quicker Access to More Reliable Information


The main reason for contracting a traditional broker was to use his knowledge and experience in the industry in making confident and informed trading decision. However, stock trading is a complex industry with loads of new information coming up by the hour. To succeed in it you need easy access to a lot more information than one or even two people can provide.


With the introduction of technology in stock brokerage, the availability of information is unlimited. The internet is full of new information and educative material on any kind of subject. In addition, you can get access to expert analysis and insights into the trade market. You don’t even have to pay for it in most cases.


Bottom Line


Advances in technology means a lot of transformations in people’s lives including the running of such industries as stock trading. To put it straight, traditional brokerage is fast becoming a thing of the past as it is replaced by a more efficient way of doing business. However, the most convincing reason for signing up with an online brokerage firm is the cost. While it will vary from one broker to another, it should be much lower than the amount a traditional broker would charge you.


Important Tips For Hiring a Financial Advisor

Important Tips For Hiring a Financial Advisor


If you are trying to plan for your retirement, want to try your hand at the stock market, or plan to do other important financial planning, having a financial advisor would be in your best interest. A financial advisor will ensure you put your money to the best use. If you have never had a financial advisor and aren’t sure what you should be looking for, know these important tips for hiring a financial advisor.


Consider Pay Structure


Different financial planners work on a different pay structure and you want to make sure you understand what it is and consider it before you hire anyone. Some advisors are commission-based, and that’s something that you want to avoid. When a financial advisor works on commission, that means they’ll make more money if you purchase certain insurance packages or invest in some mutual funds. You don’t want a financial advisor that is constantly pushing certain types of investments and insurance on you just so they can make some more money. You want a financial advisor that will work in only your best interest. Of course, fee-based financial advisors still have their drawbacks. Typically, this type of advisor earns about 1% of your annual assets. This means the advisor might encourage you to buy an expensive home or property that you don’t particularly need. However, it might be easier for you to pass on a house that you know you don’t need than pass on an insurance package that you don’t quite understand. If you can find an affordable financial planner that charges by the hour, that would probably be in your best interest. They make the same amount of money, even if you opt out of insurance packages or a private island. These planners have the purest motives, and you don’t have to worry about anyone pushing you to buy things you don’t need.


Check Their Background


When you hire a financial planner, don’t forget that they’re working for you, not the other way around. Many people hire services like this and feel like they need to be submissive. You should be interviewing the advisor. Ask to see the license and ask the advisor to write down references that you can call. The person you are hiring is going to have some control over your money, and you need to make sure that it’s someone you can trust. You wouldn’t put your hard-earned money in the hands of a stranger on the street, so you shouldn’t put it in the hands of a stranger behind a desk.


Ask for Recommendations


The most simple thing you can do is ask around for recommendations. Asking friends and work colleagues if they recommend anyone is your best bet. If there are people you trust who have been seeing the same financial advisor for years with success, it’s a good indication that it’s an advisor you would want to work with. It’s best to avoid a financial advisor no one knows. It doesn’t mean they won’t be good at the job; but when it comes to your money, it’s better not to take any chances. Check if a company has won any awards for being the best in their field. You can find top-ranked financial advisors by searching on the internet. For example, Fisher Investments is ranked a Top 10 RIA on InvestmentNews.


Verify Credentials


Just looking at credentials doesn’t prove anything, you need to verify them. The financial advisor should be a certified financial planner (CFP) or publicly registered. If certified financial planners get into any trouble, their disciplines become public knowledge. These disciplines can include a suspension, letters of admonition, or even a license revocation. The good thing about this public knowledge is that it’s very easy to find. You can simply go to the website, click on the state, and there are lists of names under each type of discipline. Make sure you look through the list and ensure the financial planner you are looking into isn’t on it. If they are, move on to the next person. You can also verify the certification on the same page. All you have to do is fill out the person’s information and you will know for sure.


Avoid Guarantees


You might find a financial advisor that continues to brag about performance and guarantees you certain returns in investments. There are rarely guarantees in the financial world, so this is a huge red flag. When you interview your financial advisor, pay attention to everything the person is saying. Make sure he or she isn’t promising a market-beating performance a certain return after a certain amount of time. If the person seems overly confident, it would be in your best interest to thank them for their time and walk away.


Hiring a financial advisor is a great way to manage your money. Just make sure you find someone you can trust so your money is in good hands. Follow these tips so you can be confident in your decision.

Managing Expectations with Forex Trading

There has always been a certain amount of sensationalism in regards to financial investments. In fact, you may have stumbled across online articles which promise “get-rich-quick” Forex strategies.


You could have read accounts of traders who amassed tens of thousands of pounds within a few months thanks to their secret “sure-fire” strategies. Many novice traders have become enamoured by such high expectations only to find that their profits are not nearly as stellar as they had initially hoped. How can you effectively temper your expectations against the reality of the Forex markets?


Understand Smoke and Mirrors


There are literally hundreds of marketing schemes which claim to provide you with a single strategy to capitalise on Forex positions. While this is a tempting dream, the reality is that such spurious promises are more marketing schemes than truth. Appreciate that the concept “one size fits all” does not exist within the currency markets. In the very same way, patience and time breed results. There is no doubt that a few lucky traders have enjoyed massive windfalls from time to time, but these individuals represent the exception as opposed to the rule.


Managing Greed


Expectation is dangerous word, for it can frequently cause unrealistic hopes to override logic. Much like in the real world, financial freedom tends to be the result of hard work and dedication. This same concept should be embraced when embarking upon any Forex trade. Think big and trade small. You will be pleasantly surprised at how seemingly meagre profits will conglomerate into larger gains as they add up. Greed has been the downfall of many currency traders. Avoiding this habit from the beginning will provide you with a stable foundation into the future.


The Role of the Trading Platform


The trading platform plays a critical role in the success of any investor. Not all are created equally. It is foolish to expect great things from mediocre software packages. Only choose systems which provide the transparency and tools necessary to gain an electronic edge. CMC Markets has specifically tailored such architecture around the needs of the modern trader. With such levels of clarity, it is much easier to cement realistic goals and mute the natural risks associated with currency trading.


Reality Check


The simple truth is that those who enter into the Forex markets expecting to become overnight millionaires are destined to be disheartened and disappointed. While there are trillion of dollars of volume within this sector every day, nothing but hard work (and the occasional setback) will pay off. Wealth takes time and thankfully, time is on your side. Always have a goal in mind and utilise each successive trade to navigate one step closer. Reality can be a potent friend in such cases.


Common sense should always moderate your expectations. Keeping a positive outlook is essential, but refrain from assuming that a million-pound trade is just around the corner. This will help you to avoid mistakes while over time, sustainable wealth becomes reality as opposed to a far-off myth.

All about Insurance – different perspectives involved

Nowadays, it is very much essential to pay insurance for every asset one possesses. Cars, home, life, health and much other insurance are available. The highlighting point is that, though everybody is paying insurance, many of them hardly understand the complete meaning and purpose of insurance. On the other hand, insurance people who deal in selling them to public know how difficult it is to make people buy their policies.

Insurance concept

Different Perspective in purchasing insurance

Of course, people do not trust the car dealer in showing the best car within their budget and advise them on how to spend wisely. They very well know that it is up to them only to find the best car that suits them. Likewise, a real estate agent cannot be relied upon completely by people for showing the best house in the area to buy it. Even a child knows that sales and marketing people will want to dispose their product to the person who got attracted towards it.  But in the case of insurance companies, it is totally a different scenario.  People trust the insurance companies and buy policies to cover their expenses. Of course, there arises a question why and how this is possible.

Promise in return

State mutual Insurance is one among the most popular health insurance policies. These are the companies that accumulate large wealth through selling mutual insurances to their policy holders. Actually, when people pay money to buy a product or a service, they get that product or avail of the service. They can easily realize the conversion and understand the transaction. However, when a person buys an insurance policy, what he gets is just a paper of promise and nothing else. This promise of protection during a loss becomes a great feature when that person avails of the claim. At this particular period when the policy holder utilizes it, the rates are far higher than the amount used for actual purchase.

Beware of insurance when it becomes a waste

However, not all insurance companies are reliable and trustworthy. There are many insurance companies that have proved to be a scam. They run their business only for the purpose of getting more money from the public than necessary and become wealthy in the fast method.

American way of insurance

The cost involved in health insurance of USA stock carriers is a definite one. The policy cannot be assessed. However, this does not include the stock companies. Hence most of the mutual insurance companies are expected to provide non-assessable policies only. The next aspect is the definite contract. The contracts carry the following paragraph:  “The Company is a perpetual mutual corporation owned by and operated for the mutual protection and benefit of its members in accordance with law and in accordance with the charter and bylaws of the company as now in force and as the same may be amended from time to time.”

Hence the policy protection terms may vary from time to time. However, reasonable changes and the by-laws affecting them only can be accepted.

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