How to Trade Stocks for a Living

Learning how to trade stocks for a living takes research, practice, and capital. Most people who decide to go this route are interested in becoming day traders, those who buy and sell securities within the same day. While day trading is different from traditional investing, it follows the same basic principle — buy low and sell high. The difference is that day traders buy and sell in a much shorter time period than long-term investors.

Research How the Stock Market Works

Potential day traders should begin by researching the market and learning how it works. You don’t need to become an expert, but learning basic market fundamentals is vital.

Essentially, the stock market is a huge collection of people buying and selling stocks, pushing the prices up and down. Everyone in the market shares a common goal — they want to make money by purchasing the stocks of companies they expect to do well. While this is a simplistic explanation, understanding this basic premise gives you a solid foundation to build upon.

Learn the Common Terms

Learn the terms used by day traders. Once you have this basic knowledge, your confidence will grow.

  • Securities: Financial assets that have value and are traded
  • Trade: Buying and selling financial assets in the stock market
  • Initial public offering (IPO): The first sale of a corporation’s stock
  • Broker: The intermediary who facilitates trades between buyers and sellers

These four terms are just a few examples, but understanding their meanings will give you a good start.

Best Practices

When you’re researching how to make money from trading stocks, don’t try to learn everything at once. Instead, find a strategy that works and repeat it over and over. Your strategy needs to include a way to enter the market, set up a stop loss, and take profits. Once you’ve determined a strategy, open a demo account, an account funded with fake money, and experiment. Don’t risk real money until you’ve practiced. This doesn’t have to take long.  Many people feel comfortable getting started after practicing for a week or two.

Create Investment Accounts

Once you’ve gained an understanding of how the market works, learned the terms involved, developed a strategy, and practiced, it’s time to open your investment accounts. Numerous brokerage firms facilitate day trading, and you’ll need to pick the one you’re most comfortable with. Keep in mind that by law, day traders in the United States must maintain a balance of $25,000 in their trading account. Due to this, many traders aim to maintain a balance of $30,000 to create a buffer.

Understand Tax Implications

The tax implications associated with day trading aren’t simple, but they’re not as complex as many people assume. The main point traders should understand is that they’ll have to pay short-term capital gain taxes on income generated from day trading. However, hiring a professional tax preparer who understands the nuances of tax law can save you money in the long run.

Trading for a living is a realistic goal, but it takes time and patience to achieve. Potential traders need to learn how the market works, some common terms, and the tax implications surrounding day trading. Once they’ve gained knowledge and confidence, it’s time to open an account and get started.

Cryptocurrency for Beginners: A Guide to Understanding the Most Basic Ideas

If you know next to nothing about the craze that is cryptocurrency, you’ve come to the right place. Here’s the most basic guide on cryptocurrency for beginners.

If you’re curious about cryptocurrency for beginners, we’ve got you covered!

It can seem like a strange new world, riddled with risk to the uninitiated. But it’s also filled with opportunity – and that’s what’s got so many people intrigued.

What is Cryptocurrency Exactly?

Cryptocurrency is a digital currency. It’s an alternative to paper currencies such as the pound, the dollar, the yen and so on. It’s also known as a virtual currency.

Although it’s a virtual currency, it can be used just like a real currency to buy goods and services. Companies such as WordPress, Microsoft, and Shopify accept payment via bitcoin.

Digital currencies are underpinned by something called a blockchain. A blockchain is the backbone technology of the currency. It allows digital information to be distributed but not copied.

Using blockchain technology means that there is no need for a third party (ie a bank) to be involved in a transaction. This cuts fees for people using the cryptocurrency, but it also opens up questions about tracking fraud and even spotting terrorism and money laundering. Banks and financial institutions play a vital role in these issues nationally and internationally.

Cryptocurrencies are globally traded, and when volatile times hit real currencies, many people put their money into cryptocurrencies instead. For example, Bitcoin’s value rose over $100 in a day after the UK’s Brexit vote in 2016. Similarly when Cyprus’s economy crashed in 2013, people turned to Bitcoin rather than the volatile national currency.

How to Get Into Cryptocurrency for Beginners

If you want to understand how to get started with cryptocurrency, or get an introduccion a bitcoin, you’ll first need a wallet. This is a virtual wallet where you save the unique codes and passcode information of your cryptocurrency. You can buy these online, and then you can buy your bitcoins or other currency.

Not all banks allow you to purchase cryptocurrency with their debit or credit cards, so check that first. Paypal is another option to pay for your cryptocurrency investment.

If you wanted to experiment, bear in mind that you could lose your investment. It is a volatile market. If you’re looking at this because you’re interested in increasing your income, you might want to check out these alternative ways to make money online.

If You’re Wondering Which Cryptocurrency to Invest In

There are over 1400 cryptocurrencies available. Your choice will depend on your openness to risk. More established cryptocurrencies such as Bitcoin or Ethereum are probably more stable (but buyer beware, as always).

That said, there is still a lot of doubt and negativity around cryptocurrencies. Citigroup, Bank of America and others do not permit their credit cards to be used for cryptocurrency purchases. Respected leaders such as JP Morgan’s CEO, Jamie Dimon, have even called cryptocurrencies a scam.

It is a new industry, and is still evolving – so the risks and the opportunities are great. If you invest, you’d be wise to only invest what you don’t mind losing if it fails.

Other Money Resources For You

If you’re interested in cryptocurrency for beginners, you might also be interested to read our article on saving money by going cashless.

 

Starbucks vs McDonalds: Which Should You Invest In?

Read more to take a closer look at the world’s 2 biggest franchises, Starbucks vs McDonald’s, and decide for yourself which is the better investing opportunity!

One boasts of billions served. The other sometimes has separate stores so close together they occupy the same block. Clearly, Starbucks and McDonald’s are both successful, but which one is the better investment?

The answer is more complicated than you might think. But we’ve analyzed the data, and we now present to you our guide to investing in two of the biggest fast-food stocks on the market.

If you want to forego commodities trading to invest in stocks, read our analysis for yourself below.

Efforts to Evolve

To begin our evaluation of which of these behemoths is worthy of your investment dollar, we wanted to look at what these businesses are doing to bring their food and their business models into the 21st century.

McDonald’s

McDonald’s has been focusing its efforts on value. Its Dollar Menu now has options at $1, $2, and $3. And it’s making ordering more efficient by offering mobile ordering and in-store touch-screen options.

McDonald’s has also worked hard to improve the image of the food itself. The way the store has done this is by highlighting the fresh beef in its burgers.

Starbucks

Starbucks has gone a much different route than McDonald’s when it comes to the direction of its business. The coffee company has focused on expanding its menu to new coffee roasts, new specialty drinks, and its popular blonde roast.

Starbucks has also launched a line of Reserve coffee bars and roasteries that cater to a hipper taste. These locations add a high-class feel to the brand.

Current Performance

McDonald’s is the more established company, and it’s no shock that the restaurant is the biggest player in the market when it comes to fast food stock stocks. But let’s look at the numbers more closely to see what we find.

McDonald’s

Right now, McDonald’s (MCD on the New York Stock Exchange) boasts a dividend yield of 2.43%. The company’s net common payout yield is 6.89%.

McDonald’s claimed more than $5 billion in fourth-quarter revenue last year, resulting in $1.71 adjusted earnings per share, or EPS, in the fourth quarter of 2017. Because the company’s operating costs rose, that’s actually a decline in quarterly revenues, but it is an increase in EPS.

Starbucks

Starbucks Corp. (SBUX on the NASDAQ) is currently sporting a dividend yield of 2.28% and a net common payout yield of 8.07%, beating McDonald’s in the latter category while trailing just a bit in the former.

The coffee chain reported revenue for its first fiscal quarter, which ended in December, north of $6 billion, with an adjusted EPS of $.65. The company’s revenue and EPS are up, though its operating income is down.

Future Forecast: Starbucks and McDonald’s

McDonald’s has had a dramatic stock turnaround in recent years, and it continues to boast robust numbers. It’s the number one fast food stock, and that looks to be the case for the near future at least. If you’re choosing the safer bet, consider buying McDonald’s stock.

But Starbucks is gaining ground quickly, and it seems to be the company better suited to adapting to changes in customer habits. Incidents like the one in Philadelphia earlier this year don’t help the brand, but the company has responded to such incidents quickly and decisively.

If you’re betting on the stock with the highest chance of reward, Starbucks might be for you.

Once you’ve settled the Starbucks and McDonald’s debate for yourself, take a look at our other investing tips.

How to Double Your Money with Your Investments in No Time Flat

You should get aggressive with your passive income, and we’ll show you how. Click here to learn how to double your money in no time at all.

According to recent research, debt is more common than ever. In fact, most people die with a whopping $62,000 in debt.

As a result, many people may be looking for ways to claw their way into the black. And you can do it with investments if you invest wisely.

In this article, we’ll talk about how to double your money with proven methods. In some cases, it may take several years, but the methods are pretty much foolproof.

Ready to go double or nothing? Read on!

How to Double Your Money with the Rule of 72

The rule of 72 is a classic way to double your money. While tried and true, this method could take a while, so you should be aware of that when you start.

This is a pretty simple rule. It states that the amount of time it will take you to double your money is the number 72 divided by the rate of return you have on your investment.

If your rate of return is 8%, you will divide 72 by 8. The answer to this equation is 9, meaning it will take you 9 years to double your money.

This method is fairly even and simple, even for those of us who aren’t math whizzes. And it’s proven to double your money, as long as you don’t touch the money you’ve invested.

Investing in Bonds

Bonds are slow to grow, but they’re a sure bet. You won’t strike it rich with a bond, and it’ll take you a while to double your money. Nevertheless, if you’re patient, you’ll earn a return.

These types of investments have almost no risk. The only way you could lose a bond is if a bank went completely bust a la the stock market crash of 1929. But since that’s relatively rare, you’re in safe hands.

Most bonds mature at a rate of about 4%, which isn’t great, but it’s better than nothing.

Doubling with the 50/50 Strategy

A 50/50 approach requires some risk in order for you to double your money. This one doesn’t guarantee you’ll double your bet, but it’s safer than plucking everything you have into a stock and seeing what happens.

With this method, you’ll invest 50% of your money into a bond or a CD. This way, you’ll surely have some money left over. Not only that, but you’ll have money that is actually actively earning interest.

Then, you’ll take the rest of your money and invest it in the stock market. Don’t be reckless and place it on a new company, but choose your stocks to invest in wisely.

If you get lucky, you might find yourself quadrupling your money, or even getting a higher rate of return.

You can use a money calendar to see where you’re at in your investments at any given time.

But, you do run the risk of losing everything you placed on the stock market, which is why experts suggest you leave 50% of your money untouched in the safety of a CD or bond.

Double Your Money with an Employee Retirement Plan

Some employers offer you a retirement plan that doubles the amount of money you’ve put into it.

While this isn’t as thrilling as stocks, or possibly isn’t even as satisfying as watching money mature in bonds, it’s a sure bet.

You can speak to your employer about your retirement package and whether or not they match contributions for you. If they do, this is a quick and sure way to make sure you double your money immediately.

If you still want to take some risk, you may want to put in 75% of your savings and have it doubled. Then, you can invest the rest on the stock market to play your odds. Who knows? You could walk away with a much bigger nest egg than you originally planned for.

Are Stock Markets Predictable?

While you can work with stockbrokers to try and invest in the very best stocks or the ones most likely to rise, you should be aware that nothing is guaranteed. While putting your money in stocks is a little bit safer than using your entire savings to buy lottery tickets, there is still a lot of uncertainty.

A recent study from Vanguard says that at least 60% of the stock market was unexplained after analyzing data from as far back as 1926. This means that educated guesses and using stockbrokers can only guarantee you so much. And that guarantee is about 40%.

As such, past success doesn’t seem to have much bearing on future success. Or at least, it only accounts for 40%. The rest seems to be up to an act of God. Therefore, there is a fair amount of luck involved in hitting it big on the stock market.

Because of this, you shouldn’t expect to double your money on the stock market, at least not right away. Instead, you have to think of it as a game of chess. You’re playing to win, not checkmate your partner on the very next move.

Padding Your Savings Account

After reading this article, you’ve likely learned that how to double your money depends on whether you want to play it safe or go out on a limb. Either way, doubling your money is totally possible, but it’s only guaranteed by going slow and steady. After all, that’s the only way to win the race.

Need cash now? Learn about the pros and cons of personal loans here.

4 Things You Should Know About Investing In a CD

A CD (Certificate of Deposit) is a financial product that is provided by financial institutions such as commercial banks or a credit union. When you invest in a CD, you are simply putting your hard earned money in a bank for a specified period of time that’s usually between 3 months and 5 years. Once the specified duration has lapsed, the bank gives you back your money with the accumulated interest. Most people use CDs to save money for a rainy day. However, some people confuse them with government bonds. There is actually a clear line between the two investment options. When you invest in a bond, you are simply loaning money to the government. But with a CD, your money is kept in a bank until the maturity date. If you are new to the world of CDs, it’s advisable you read the points outlined below to know more about this amazing investment tool.

  1. It’s a Low Risk Investment

This is definitely the good thing about investing in a CD. Unlike other investment options that depreciate with time or due to political and economic issues, an investment in CD remains stable regardless of the changes in circumstances. Even if the government announced an increase or a decline in interest rate, you would still make profit from your investment. The other advantage is that your investment can’t vanish into the thin air like a scam. This is because all CDs are protected by FDIC. You can therefore have peace of mind after you have put your money in such an account. It’s better to invest in a CD and earn a small interest than to venture into a risky business where the returns and seed capital are not guaranteed.

  1. You have to be Patient

A CD investment is not a get rich quick scheme. You can’t make money in an overnight just because you have put money in a CD. You must actually wait until the specified maturity date to be able to withdraw the principal and the accumulated interest. This means that you should never invest with money that you will need in the near future. Remember, the longer the investment period, the more profit you will make. Keep in mind that requesting for a withdrawal of funds before the maturity date attracts a huge penalty.

  1. It Yields More Returns than Checking and Savings Account

This one is a no brainer. A savings or checking account earns a very low interest when compared with a CD account. This is because you are allowed to access the money without any limitations. Regardless of the period you want to invest, the difference between the interest earned from CD and ordinary accounts is too big. A CD actually generates an interest that’s more than double the interest that’s earned from savings and checking accounts respectively.

  1. You can tell the Amount you will earn After Maturity

Most people prefer to invest in CDs because it’s possible to budget for the money before you earn it. In other words, you can confidently count your chickens before they hatch. This is due to the fact that the interest rate that’s allocated to your money is permanent. You can actually boost your earning potential by finding the best Jumbo CD rates. In fact, you can keep renewing your CD after it has matured as long as you don’t intend to use the principal amount in the near future.

The Advantages of Investing in Foreign Currency

The world is a large place that is made up of many different countries and each country has their own type of currency. There are currently over 164 different types of currencies in circulation in the world. Many countries will have more than one form of currency; some countries do not actually have their own money, and only use foreign currency. The most common types of currency are the dollar and the euro. The euro is accepted in 35 different states, and the dollar is accepted in 10 different foreign countries. The most traded currency is undoubtedly the US dollar. United States currency is used by 47% of people globally.

Forex is the world’s largest traded market. The market helps determine the current exchange rate. It is estimated that 87% of the market is contributed to US currency, and the euro comes in second place with a 33% daily turnover rate. There are many advantages when it comes to investing in foreign currency; if done right it can have huge rewards. One obscure type of currency that many are investing in is Iraqi Currency; there are a lot of different pros and cons when it comes to investing in foreign currency.

The Market is Always Changing

Many invest in the Iraqi currency because of its low-cost price point; one US dollar is currently worth $1,190,96 IQD (Iraqi dinar). Iraq’s economy is slowly starting to improve as the country continues to modernize by incorporating elements of the western culture and as they continue to work towards strengthening their economic relations with other countries. Investing in another country’s currency can produce huge financial gains if their currency rate improves. It’s always best for you to invest when the currency rate is at its lowest. Iraq is in the top ten countries of oil reserves in the world. The value of the Iraqi dinar was going strong up until the late 1980’s but its value diminished significantly during the Gulf War, and continued to decrease in value. The good news is the country’s economy has been able to recover substantially since the fall of the of Saddam Hussein’s regime. Iraq has since been able to rebuild many of its oil production facilities that were destroyed during the war with the United States. With a steady oil supply, the country’s wealth will only increase.

Explore and Evaluate Your Options

There are many other countries besides Iraq whose currency is worth investing in, such as New Zealand which usually has a high exchange rate. You could also consider investing in Singapore currency, also known as the Singapore dollar. It is currently one of the most stable currencies in all of Asia. Singapore continues to be a major international financial hub for investors and bankers, which is why the country has over 100 commercial banks. Poland is another promising country when it comes to investing. It may not be the most conventional option, but the Polish Zloty is in strong demand. Poland is a country with little debt and its economic growth continues to increase

The Pros and Cons of Investing

Pros

  • Low Cost: One of the greatest things about investing in foreign currency is, unlike stocks, you do not have to pay any type of brokerage commissions.
  • Fast Returns: Compared to every other type of financial market, the currency exchange market produces the highest value in liquidity with a market that is continuously rotating. There is never a risk of stock manipulation.
  • Short Selling: In many markets, short selling may be a bit frowned upon, but it’s a lot different when it comes to investing in currencies. Currencies have to be bought and sold as pairs, so if a trader decides to buy one currency, he’ll also be selling another.

Cons

  • The process of determining the price: Currency rates are influenced by a variety of factors, many times global politics will play a part in determining the valuation. This is why it can be a bit difficult when it comes to evaluating currency prices.
  • High Risk: There is a good amount of risk involved when it comes to investing in any sort of investment. You could invest one dollar and be 50 to 100 dollars richer, but you can just as easily invest 100 dollars and have it only be worth one dollar the next day.

Your Key to Success – Commodities Trading

Online commodity trading provides an opportunity for portfolio diversification from the conventional securities. Successful commodity traders invest in commodities as a way of shielding themselves from unusual stock market volatility. Commodity trading can also be done long-term, for physical commodities such as oil and gold to generate wealth.

What is commodity trading?

Commodity trading is an investment strategy that involves trading of physical goods as opposed to stocks. The most traded commodities in the world include metals such as gold and silver and minerals such as oil. Agricultural commodities such as soybeans are also widely traded commodities. With the invention of the internet, traders can now open and operate an online commodity trading account.

Commodities can be bought in an exchange market such as the New York Mercantile Exchange for an equivalent value of the commodity in monetary terms. Then, the trader gains or loses depending on whether the commodity increases in value or loses it. Regulatedbrokers.com is a website that offers excellent forex guides and forex broker reviews. Forex and commodity trading are related. Knowing the best broker to trade with is the starting point of a successful commodity trading.

What commodities are traded?

The commonly traded commodities in the financial markets include:

Agricultural

  • Coffee: the commodity has a huge global demand. It has a huge supply as well and generates an excess of 1.6% of GDP value in the US.
  • Corn: it is useful in livestock and human feeding and has an industrial application in the manufacturing of ethanol fuel. It is also added to soft drinks as a sweetener. The demand for food and energy is high and this means the commodity will remain significant in the commodity market.
  • Soybeans: The oil obtained from soybeans is used in the preparation of bread and cakes. Crushed soybeans provide livestock food. Soybean oil is also a product used in biofuels. As demand for fuel and food products increases, soybeans demand will also increase.
  • Wheat: wheat has been an important food crop globally for a long time. The prices of wheat are compared to its substitutes including corn, oats or barley. Variation in the relative prices of wheat and its substitutes determines the variation in demand between them and soybeans.

Energy

  • Crude oil: It has the most weighed impact on the entire world economy. Oil is a commodity extensively used in the transportation industry. It is also used in industrial production of synthetic textiles, computers, cosmetics e.t.c. The demand for this commodity is therefore very high.
  • Natural gas: has industrial and commercial uses. It is used in electricity generation and is a clean source of energy.US and Russia are the two main producers of this commodity.
  • Gasoline: It is the product of refined crude oil. It is mainly used in fueling cars and has an inelastic demand. Crack spreads are traded by commodity traders for the difference in the pricing of refined oil products and crude oil.

Metals

  • Gold: it has a high demand due to speculation around it. It is conceived as an alternative to paper currency. It has negative correlation movements to dollar currency. It is also useful in making jewelry or electronics.
  • Silver: It is weaker than gold but attracts massive speculation from traders. It is compared in form of ratios to gold to determine its relative strength. Has an industrial application in making jewelry e.t.c.
  • Copper: The metal has a significant indication on the overall global GDP strength. It is widely used in infrastructure building. Its use signifies a bullish speculation on global GDP.

What are the main trends of commodities trading?

Risk mitigation: Risk analysis has become essential for commodity traders to enable them to make wise trading decisions. Risk analysis has become a critical tool for the effective control of commodity market default risk.

Liquidity: With the invention of the internet and online trading, commodity trading has become widespread in the exchange markets. More traders now find it easier to trade which generates a higher liquidity for the global commodity exchange markets.

Complex Market Data: The market data for commodity prices has become diverse and voluminous. Therefore, timely data interpretation and management has become critical for successful commodity trading.

Consolidation: The exchange companies for the futures and other commodity products are becoming global through mergers or acquisitions. For instance, Tokyo Commodity Exchange established collaboration with Dubai Mercantile Exchange for the facilitation of energy products exchange.

Deregulation: The commodity market industry is increasingly becoming deregulated to allow for a global trade. This process has enhanced growth of commodity trade and creates good future prospects for growth.

What is the influence on this market?

The influence in the commodity markets is driven by the forces of demand and supply. Demand defines how much value of commodity traders are willing to buy at a given price. Supply is the availability of the commodity based on how much of the commodity a market offers. A shortage in supply drives demand up and vice versa.

World commodity traders are finding it easier dealing in commodities due to the invention of digital commodity trading platforms. With such a trend, commodity trading remains a viable business as long as the demand and supply factors continue to fall in place.

Why should you invest in the UK’s ‘Second City’ of Manchester?

Are you considering a UK buy to let property investment? Manchester is now leading the way as one of the most popular destinations in the world to source and secure a lucrative investment. Regeneration initiatives are rapidly changing the city’s skyline, transforming the city’s old glorified heritage into stylish, modern new builds, providing a diverse array of opportunities throughout the urban metropolis.

Experiencing a revival from an industrial graveyard to a thriving cosmopolitan district used for living, working and leisure, Manchester has quickly earned its reputation as the ‘second city’ in the UK after London, predicted to soar past the capital in the near future. Investors experience the hive of activity on Manchester’s buzzing streets, especially through the property sector.

Brimming with investment from regeneration schemes, a multitude of flagship projects has injected money into the city’s economy – Spinningfields is a £1.5 billion project which has been compared to London’s financial district Canary Wharf, MediaCityUK in Salford encompassing award winning digital and media corporations valued at over £1 billion, and NOMA, a heritage led project worth £800 million consisting of grade A office space, retailer and residential housing. Properties surrounding hotspot areas such as these can benefit from the biggest pull of tenants who are keen to take advantage of the burgeoning district.

Greater Manchester’s population is increasing exponentially, producing spikes in demand for residential accommodation. Undersupply of property is evident in certain areas across the city such as Deansgate, Castlefield and Ancoats which serves as great news for investors who can capitalise on the constant flow of tenants. Millennials are flooding to the area in order to relocate for work purposes, pushing up the demand for state of the art housing with premium facilities and amenities.

RW Invest property specialists have a diverse range of deluxe properties across Manchester offering tenants access to rooftop gardens, on site cinemas, gyms and more. Click here to view their full profile: https://www.rw-invest.com/manchester-property-investments/

Student property is amongst the most lucrative throughout Manchester as an excess of 85,000 students attend the University of Manchester, Manchester Metropolitan University plus the University of Salford. Similarly, there is a shortage of student property which fails to compete with the soaring student numbers in the area, underpinning investor’s strong desire to secure a robust investment with masses of tenant appeal.

Residential and student sectors across Manchester are some of the top performing sectors due to a number of factors helping properties achieve some of the best rental yields in the UK. Not only are these experiencing an all-time high, but developers place so much trust and confidence into the area that they assure the returns for several years. Luckily, Manchester’s yields are some of the most promising and come up above average when compared with other hotspots across the UK.

Price as well as yields provides a major attraction for the UK’s second city with lower initial costs compared to the capital of London, prices are set to increase as much as 20-25%, highlighting Manchester as a prominent city every discerning property investor should have in their portfolio.