More Than Finances

Get your finances in order!

By

What is Financial Trading?

When you want to make money in financial markets, there are two major ways to do it. You can invest or you can trade. Investing plays out on a longer timeline of years and decades, while trading is focused on months, weeks, days or even hours. Financial trading is tough and intense business and it takes a long time to learn how to do well. You need risk management skills, acumen at reading and disseminated through news of a financial nature and the ability to work with numbers and spreadsheets.

When you make the call to get into financial trading, you want to educate yourself. Build yourself a trading library, so you can be no more than an arm’s length away from viable and expansive tomes on the nuances of making money in the markets. Being an autodidactic learner is extremely profitable in this particular situation. Being able to learn on your own, without subjecting yourself to a class or coursework is valuable.

What is financial trading? It is the act of buying a stock, bond, commodity or other financial instrument in the hopes of the asset rising in value. You are a hedger, a speculator and a bettor. You are looking to gain insight and knowledge into the markets and then use that to make a profit. Traders are interpreters of information, with the work done a move towards making more money than you started with.

You need to be well versed in whatever financial instrument you are planning to trade. If you want to trade stocks, you want to be able to understand what a stock is and how you can project its value. A stock represents a piece of a company or corporation that is bought and sold on an exchange. Companies issue shares so that they can raise money to do their business. If you think the company is well run or poised to grow, you can buy a certain amount of stock and sit on it as in an investment. That is what many people do.

Other people, known as traders, buy and sell shares very quickly, in order to make a profit off of short term spikes in the price of the shares. It can be a day trading situation or a swing trading situation, where a trader holds a stock for a longer period of time. Financial trading is generally thought of as a much more active pursuit than other investment activity. That means always being on and being engaged with the markets. You can employ tools to keep your accounts in check when you need a break from the screen time, but it is an intense job.

Beyond stocks, traders can operate in derivatives and commodity markets. Derivatives, such as spread betting, options, contracts for difference and futures, to name a few, are derived from actual financial assets. When you are trading derivatives, you do not actually take ownership of the underlying asset. You are just speculating on the value of that asset. It can be riskier than some other types of trading, if it is not done with caution.

The commodity market is somewhat similar, because you are essential trading contracts for the actual goods, such as coffee or cocoa, so you are not owning the goods. But it is a very specific type of derivative. Commodity markets have been around for most of human history, predating even the most rudimentary stock market exchanges.

For more tips on financial trading and risk management, look to this resource for picking the right platform that will match your risk appetite and strategy.

By

7 Reasons To Start Repairing Your Credit This Year

Many people believe that a bad credit merely keeps them from getting a loan or credit card. Wrong! It can go much further. A bad credit score may leave you jobless, carless, or even homeless. This is because an increasing number of businesses want to use your credit in order to make a “good” decision for you.

If you are still not sure if it’s the right time to start fixing your bad credit this year, check out these 7 reasons for credit repair.

  1. Get lower insurance rates

Whether you got a home, auto, or life insurance, your credit can significantly affect insurance premium. If you have a bad credit score, you will have to pay more for your insurance than you’d otherwise pay with a better credit.

2. Avoid paying high security deposit

Before giving approval for establishing service, every utility service provider will check your credit. Most of those providers are charging a deposit to offset the default risk. You are required to make your payments regularly and on time in order to get back your deposit. If you don’t want to pay the high security deposits altogether, make sure to improve your credit score.

3. Cut down on your interest expense

Higher interest rates typically go hand in hand with low credit scores. If you have a bad credit score, chances are high that your credit card balance involves a higher finance charge. On the other hand, a good credit score lets you get a more affordable interest rate and thus save money on interest.

4. Increase your credit limits

Most creditors will be willing to give you a higher credit limit if you’ve always paid your bills on time. However, they are going to examine your credit score first. That’s a good reason to repair your credit.

5. Stop paying in cash

Borrowers with bad credit score often have difficulties when they want to get a credit card. Don’t be one of them! For everything you need, you will have to pay in cash. That could be a problem for you when needing to pay for something big such as a house or car.

6. Start a new business

Getting a loan is often necessary when you want to run a new business. No lender will give you a loan for business if you have a bad credit. That’s why you should repair your credit before applying for a loan.

7. Stop collection agency harassment

Debts in collections may have a great influence on your credit. Until you pay off your debt collection accounts, you’ll face harsh letters and calls from your debt collectors. Even worse, those accounts transfer from one collection agency to another in most cases. When your debt accounts get into the hands of a new collector, you will experience harassment over again.

For all these reasons, it’s worth repairing credit. This is where credit repair companies come in. However, you should be cautious when hiring such companies since they often involve different tricks. Check out this blog to find out what things you must pay close attention to before signing up.

 

By

7 Sustainable Frugality Tips That Will Help You Long Term

Learn sustainable frugality tips.Want to learn how to save money and stick with it? Here are some sustainable frugality tips.
Read More

By

Beware of Free Google Play Credit Scams

Most free Google Play credit offers turn out to be scams. Unless it’s an enticement to try out TokenFire, you could be opening yourself up to a malware campaign if you click on it. Read More

By

Just Say “No” to State Lotteries

If you know enough to skip buying state lottery tickets, you’re a bigger winner than any jackpot could ever promise. Read More