Financial Investment Services

Financial Services

Financial Services is a term used to refer to the services provided by the finance market. Financial Services is also the term used to describe organisations that deal with the management of money. Examples are the Banks, investment banks, insurance companies, credit card companies and stock brokerages.

It is part of financial system that provides different types of finance through various credit instruments, financial products and services.

These are the types of firms comprising the market, that provide a variety of money and investment related services. These services are the largest market resource within the world, in terms of earnings.

The challenges faced by the these Services market are forcing market participants to keep pace with technological advances, and to become more proactive and efficient while keeping in mind to reduce costs and risks.

These Services have been able to represent an increasingly significant financial driver, and a significant consumer of a wide range of business services and products. The current Fortune 500 has listed 40 commercial banking companies with revenues of almost a $341 trillion, up a modest 3% since last year.

Importance of Financial Services:-

It serves as the bridge that people need to take better control of their finances and make better investments. The financial services offered by a financial planner or a bank institution can help people manage their money much better. It offer clients the opportunity to understand their goals and better plan for them.

It is the presence of financial services that enables a country to improve its economic condition whereby there is more production in all the sectors leading to economic growth.

The benefit of economic growth is reflected on the people in the form of economic prosperity wherein the individual enjoys higher standard of living. It is here the financial services enable an individual to acquire or obtain various consumer products through hire purchase. In the process, there are a number of financial institutions which also earn profits. The presence of these financial institutions promote investment, production, saving etc.


Customer-Specific: These services are usually customer focused. The firms providing these services, study the needs of their customers in detail before deciding their financial strategy, giving due regard to costs, liquidity and maturity considerations.

Intangibility: In a highly competitive global environment brand image is very crucial. Unless the financial institutions providing financial products and services have good image, enjoying the confidence of their clients, they may not be successful.

Concomitant: Production of these services and supply of these services have to be concomitant. Both these functions i.e. production of new and innovative financial services and supplying of these services are to be performed simultaneously.

Tendency to Perish: Unlike any other service, financial services do tend to perish and hence cannot be stored. They have to be supplied as required by the customers. Hence financial institutions have to ensure a proper synchronisation of demand and supply.

People Based Services: Marketing of these services has to be people intensive and hence it’s subjected to variability of performance or quality of service.

Market Dynamics: The market dynamics depends to a great extent, on socioeconomic changes such as disposable income, standard of living and educational changes related to the various classes of customers. Therefore financial services have to be constantly redefined and refined taking into consideration the market dynamics.

Promoting investment: The presence of these services creates more demand for products and the producer, in order to meet the demand from the consumer goes for more investment.

Promoting savings: These services such as mutual funds provide ample opportunity for different types of saving. In fact, different types of investment options are made available for the convenience of pensioners as well as aged people so that they can be assured of a reasonable return on investment without much risks.

Minimizing the risks: The risks of both financial services as well as producers are minimized by the presence of insurance companies. Various types of risks are covered which not only offer protection from the fluctuating business conditions but also from risks caused by natural calamities.

Maximizing the Returns: The presence of these services enables businessmen to maximize their returns. This is possible due to the availability of credit at a reasonable rate. Producers can avail various types of credit facilities for acquiring assets. In certain cases, they can even go for leasing of certain assets of very high value.

Benefit to Government: The presence of these services enables the government to raise both short-term and long-term funds to meet both revenue and capital expenditure. Through the money market, government raises short term funds by the issue of Treasury Bills. These are purchased by commercial banks from out of their depositors’ money.

Capital Market: One of the barometers of any economy is the presence of a vibrant capital market. If there is hectic activity in the capital market, then it is an indication of the presence of a positive economic condition. These services ensure that all the companies are able to acquire adequate funds to boost production and to reap more profits eventually.


What Is The Difference: Investing VS Trading

Investing vs Trading: What is the difference?

This is a commonly asked question that beginners have when they want to start managing their own brokerage accounts. Since most people are interested in stocks, I will use equities to explain the difference between these two strategies. Realistically, this goes far beyond equities, and there are many investment or assets types that I could use as an example.

What is an Investor?

A simple explanation of an investor is someone who buys stock in a company to make money off the companies operations. You commonly hear the terms Dividend Investor or the Buy and Hold Forever Strategy. This is someone who buys a stock because they think the company has the potential to grow in the long run. In macroeconomics, the long run is defined as over a year or more than one operating cycle. An investor will have a long-term outlook and some investors like Warren Buffet will buy and hold the same company for a lifetime.

What Does A Winning Investment Look Like?

A smart investor will look at the accounting and the fundamentals of a company because that is the way to see how a company has done in the past. Then they can speculate on how this company will do in the future.

The fundamentals of a business can be anything that gives a business an edge over their competition. For some companies, this won’t be things that directly show up in their financial statements. For example, I invested in a REIT because they had the best management team. This management team was more experienced than their competitions and this investment outperformed all the other REITS.

From an accounting perspective, a good investment will have an increasing net income, a balance sheet with improving assets, and a great looking cash flow. You don’t need to go to school and learn everything about financial statements but knowing the basics will help you with making informed investment decisions.

When someone holds a stock they want to make a profit through growth or get paid through dividends. This makes fundamentals and accounting important because they will tell you that this company can increase in size, continue paying you a dividend, or have a growing dividend.


A trader is someone who will buy and sell stock due to price volatility. Price volatility is the short-term price changes. This means that a trader will look at the short term trends instead of how well the company is doing over the long run. A trader will focus less on fundamentals and accounting. Instead, their focus is on Technical Analysis and other short-term price drivers.

The timing of a trade will be much shorter than an investor’s time frame. There are a few basic types of traders. One is a scalper or Day Trader who has extremely short term trades. By definition, these are people who hold a trade for less than a day. Another example is a swing trader. These traders hold an investment more than one day but will sell the trade off the trend swing which is normally less than a week.

What does a Successful trade look like?

This is really simple. A successful trade is when someone’s trade hits their intended price target or they hit their profit goal. Since traders are in a trade for less time they are in the market and out of the market as quickly as possible. A trader wants their trade to hit its price target as quickly as possible.

Another important thing is that they will set price goals. A trader will go for a small gain at a time. An equities day trader might want 1 percent gain a day where a swing trader might set a goal of 5 percent a week.


Brexit and Trump Were Shocks – Here’s What’s Coming Next

It started with the Brexit vote in the UK, and then Trump’s victory in the US. These two votes sent shock waves throughout the world, as none of the political elite could ever have imagined such results could possibly happen. But they did happen, and there are plenty more shock waves to come. Over the next couple of years we will likely see many more ‘black swan’ events, promoting pro-independence, and even outright separatism movements. The curtain is being pulled back further, exposing more of the establishment status quo.

First the UK, then the US, and now the next big ‘shocks’ will come from Europe, We have just spent the past four decades living in an ‘age of entitlement‘, with governments offering handouts every election, treating its voters like heroin addicts, their motto being “just promise them more stuff, and they will be happy.” It didn’t matter which party, they all did the same thing. The problem was they didn’t have the money to pay for all these freebies, and now it’s the day of reckoning.

Those in charge have run global economies into the ground, initiating monetary policies that included creating trillions of dollars out of thin air, to even forcing negative interest rates onto consumers. They have robbed the seniors of any return on their savings, and have now jeopardized pension funds, which have now incurred massive funding gaps thanks to low rates.

What we have seen in the last year has been quite remarkable, but what’s about to happen is going to make the last couple of years seem docile. There are a number of big political events coming in Europe in the next year. The next big date is December 4th, when we have both the Italian referendum on constitutional change, and the Austrian Presidential election. With anti-EU sentiment rising throughout Europe, either one of these events could be the domino that triggers a contagion, with more dominoes falling. sending entire continent into a state of terminal socioeconomic collapse.

The European Union is at great risk of unraveling, and the potential financial repercussions are massive. Those Europeans who have converted Euro to US dollars on any Euro rally are in a very good position today. Investors need to understand the big picture on what is coming in the global economy. Once you have the big picture, then devise strategies on how to profit from it.

The number one priority is to protect our wealth. Many lost a fortune in the real-estate crash in 2006, and the stock market crash in 2008. We are very concerned that these same people are going to get hit extremely hard in the coming global Bond Market Crash.

You must understand that all markets are connected. When investors in Europe saw rising unemployment, and escalating violence, they didn’t want to leave all their money in that economy. They looked around and even though the US economy was not growing rapidly, it was growing. They also knew that the US dollar was the world reserve currency, and that the US equity markets were the most liquid in the world. So they started to open US dollar bank accounts, and invest in the US stock markets. Investors from Russia, China, and all over the world are doing the same thing, they are moving their capital out of perceived risky areas, into the perceived safety of the US dollar, North American real estate, and equity markets.

So while we have seen a lot of volatility in the past two years, it is nothing compared to what is coming. We are already starting to see the consequences of negative rates. Bonds are now being sold off. This is happening in government bonds and corporate bonds. This is a major trend change, one that is going to deliver massive losses to many investors.

Things are heating up and you will need to navigate through this fast approaching, massive trend change. It will impact everything in your life: your finances, your currency, your mortgage, and your ability to sleep at night. These changes will hit the currency, equity, precious metal, oil, bond, and real estate markets. If you understand what is coming, and have a concrete plan on how to nimbly maneuver your investments as each phase is triggered, that’s good. But if you do not a plan, get help before the coming tsunami of economic changes.


Millennials Are Gonna Pay Big

My friend L wants to live out of a van.

For the moment, she works for Whole Foods and walks dogs for extra cash. The rest of the time, though, she climbs – indoors or outdoors, it doesn’t matter.

Every time she’s able to put together a few days of paid time off… she’s off scaling mountains in Kentucky, West Virginia, Tennessee or Colorado.

And now she’s ready to take this hobby to the next step.

A month ago, L told me she’s going to commit to climbing – all the time. That means living out of a van, one she’s been outfitting herself. It’ll have a bed, a mini-kitchen, gear storage – everything she’ll need to live life on the open road.

Now this might seem like an unusual choice, but L is 25 – she’s a millennial. And her generation is increasingly able to make decisions like these because millennials are incredibly adept at exploiting the new technologies that make them possible.

In fact, these technologies are setting up to make investors a fortune…

One of the potentially biggest technologies that L will be taking advantage of is mobile banking.

The reason is simple: Since she’s living on the road, she’s going to need to “gig” for money while she travels.

A gig is a job with no employment arrangement. That could mean quickly helping someone with a fast home-construction project or acting as a research assistant to people like me who need information quickly for an issue. Other gigs are more sophisticated, like writing a small part of a computer program.

In some instances, your client could be someone in Singapore, Dubai, New York or London.

After you complete the gig and it comes time to be paid, the client simply sends you the money using a smartphone app, such as Venmo, PayPal or Dwolla. So it’s easy for people like L to make money while they’re traveling in pursuit of their passions.

As a result, this type of payment platform is gaining wild popularity.

Follow the Millennial Money

Remember, L isn’t the only one doing this. Her entire generation – the millennial generation – sees this way of living as a viable option because they’ve grown up with smartphones and the Internet, which have become just as vital as electricity and water to them.

As you may know, millennials are between the ages of 18 and 34 today. This generation numbers a whopping 92 million people in just the U.S. alone. That makes it the largest generation in history, overtaking the baby-boom generation, which numbers 77 million.

Globally, the millennial generation is estimated to be as large as 2 billion people strong.

And many of the habits of U.S. millennials are shared by their peers in Australia, the United Kingdom, China, India, Brazil, Russia, etc.

In other words, if you travel, it won’t take you long before you run into a millennial who, like my friend L, is pursuing a passion – in outdoor rock climbing, surfing, scuba diving, mountaineering, volunteering, etc.

Most of them depend on mobile payments to get paid while they pursue their passion. And other millennials who are still rooted in one place use these services as well. They may use a platform such as PayPal for everyday activities, such as transferring money to a friend or paying for their Uber rides.

In fact, a recent survey showed that 15% of millennials use mobile payments multiple times per day. Another 10% use it once a day. And 29% use it several times in a week.

It’s no wonder then that mobile payment growth is skyrocketing higher. For 2016, growth is expected to hit 183.3% – and it’s expected to double in 2017. By 2020, total transactions are expected to hit $314 billion, growth of 1,034%!

That’s where you want to be as an investor – in explosive growth trends just like that.

Banking on a Powerful Trend

I’m expecting similar gains for the millennial-based stock recommendation I’m releasing this month.

Now, I can’t give this stock away for free here. And right now, there isn’t an ETF that is liquid enough for me to recommend for you that would capture this millennial mega trend. However, keep checking back, and I’ll be sure to let you know once I find a good ETF to recommend.

In the meantime, I suggest following companies that benefit from millennial trends, such as mobile payment services. Because that’s where the big money is going to flow.


How to Manage Your Investment Holdings

The uncertain condition of today’s economy is not encouraging investors. This lowered investment trend can be traced back to the past 5 years where investments have been slow with subscriptions to how to manage your investment holdings magazines taking a dip. Many investors are uneasy over investing their money into a volatile market as stocks have been plummeting in value in recent years, with small rebounds here and there, now and then. This does not give investors enough confidence although there are many investing associations that offer courses or tips on how to manage your investment holdings.

Good Monitoring of Investment
It is crucial to monitor your investments especially in this time of market uncertainty or volatility. Choosing the best investments is no guarantee of positive returns, much less huge returns, if you are not tracking the movements of your portfolio. As in any investment, there will be profits and losses; you can waste a lot of time and your hard earned money if you do not have good tracking habits or strategies such as proper record keeping. It is essential for any serious investor to review their portfolio’s performance when you are serious about how to manage your investment holdings for good returns.

There may be taxes that are incurred, retirement computations which may lead you to make further decisions on your portfolio or opportunities that come by your way to grow your wealth. There are now many online resources for your picking to assist you on how to manage your investment holdings by keeping careful records on every investment you make, be it stock, bond, mutual fund or security. Once the easy setup is done, you will only need to commit to a weekly or bi-weekly check up on the performance of your portfolio. This way, you will not be taken by surprise on any adverse news as you monitor the organizational news of your portfolio.

Online Investment Services
Online investment tracking services will update your portfolio automatically to reflect any price changes on a daily basis with a re-computation of your assets. They also assist in comparisons of your investments to your targets and the expected returns of your portfolio. These online investment services also alert the investor on potential purchases to add on to your portfolio. They may even have tips on how to manage your investment holdings that will benefit you.

Self-directed investing
This is for those who want to manage their own portfolio; those of you who might be retirees and are keen on how to manage your investment holdings can consider monitoring your own investments with a sufficient bit of basic understanding of the various investment types available for your own consideration. You will need to be familiar with tax consequences as well as investment earnings and related costs with any investment you plan to undertake.

You will need to be computer savvy if you are engaging technology in your own monitoring of your portfolio as well as be comfortable with the investment terms and conditions.

Self-directed investment requires online accounts monitoring, evaluation and understanding before an investment transaction can be performed. There may be a substantial online research required to confirm or refute financial assumptions.

Other factors
There is still a need to engage an investment company or professional broker to perform some of your trades or investments. An online broker may charge certain fees for his services. You should check out the reputation and performance of online brokers first before engaging their services.

When you get going on how to manage your investment holdings, you may need to consider it as a long term goal so that you are able to pace your time and effort on the portfolio that you are going to set up. A good investment plan is usually for the long term to enjoy its good returns. Discipline and patience are two virtues that are required when you want to manage your own investments as most stocks do not bring in huge returns in the short run. It’s a great commitment to those stocks which you think will fare well in the long run.


Young Investers

Since youth are the dominant contributors to the Gross Domestic Product (GDP), they make a great difference to the economy. All the major concern center around young population. As compared to the past, today the individuals are more financially potential and independent and it is all because of steep rise in tertiary sector. Now-a-days spending a few bucks on coffee or on shopping has become a casual activity which was very rare some time ago. It is all because of changes in lifestyle and adoption of western culture not the youth of today hardly think of ‘savings’ for the future. There is a need to focus on the disability of savings despite the fact that there are insufficient earnings.

There are just few things we should understand and minor changes we should bring to inculcate the habit of investment to bridge the gap between income and spending. One should know the sum of money earned in the form of salary and the avenues where this income is spent. Now what is salary? It is the amount working people take home after deducting the tax and contributions to EPF from gross income. This balance is also called net salary. Thus, to save you need to deduct expenses from salary.

Analysing goals-
Goals are basically the personally set standards which one wants to achieve to reach the target. These are our milestones which can help in taking right decisions. Goals can be set for different time periods say-
a) For one or two years, called the short term goals. They require immediate attention.
b) For five or seven years, called the medium term goals. They give us time to wait and analyse things between investment period and return period.
c) For ten or fifteen years, called the long term goals. These are meant for retirement.

Opting for a suitable investment plan-
Investment plan means channelising your money in the most efficient method. Since various plans are available in the market but only right plan can reap benefits in the future and for that an expert advise is highly appreciable. After selecting an appropriate plan start your investment considering the retirement because a small amount invested today can make your future bright.

Investment planning is not a one time phenomenon but it needs to be received and readjusted according to the present need and trend to make investment successful. Thus, it is high time that the youth of our country should be made aware about the best investing options and its benefits for them in the long run. Also since the young generation is the representative of the present and future economic condition of the country so they should be driven by the right motive and prospective.

1. Investment – A thoughtful task making investment is not an easy task so it requires a careful analysis of its pros and cons. You should know the purpose and need for using your hard earned income in the most profitable venture. Don’t be convinced by what your friends or neighbours or relative advice you to invest in because all have their own needs. Besides realising your need you should also be aware about the risk associated with investment plan. As it is said that more the risk, higher the chances of returns, so to earn more profit you should make careful decision about your risk taking ability. Let us consider a situation where we want to buy a bungalow in next seven-eight years so for that traditional method of investment would not be efficient rather we have to invest in stock or mutual funds for an additional advantage.

2. Get insurance – Financial goals can only be fulfilled when one lives a healthy and secured life. You should not get a term plan which has a greater coverages and last till 75 years at least. It should also increase with increase in income. In case of change in job where insurance facilities are not available on increase in coverage becomes essential. At any stage of Life you can suffer from health problems so you should try to get the best facilities and the most efficient as well as reliable term plan. Investing in health or life insurance not only protect you but also your family from unpredictable circumstances. The young generation should set up an emergency fund that would benefit them in long run. Thus, the youth are not that young that they do not know how to increase their earnings or make better returns. They are responsible for their own expenses and with other demands or commitments in their pay check it becomes more important to do systematic investment planning at a young age to secure life after retirement.

So, it is essential to invest in better and profitable plans to lesser the risk of losing money. Also for some people investment is a means of growth as it keeps up with inflation. By calculating your ROI you can get better idea about how well planned your investment is.

ROI=Investment Gains/Costs

Since investing is not an easy task and requires the help of an expert so for that you need to pay them fees but with your efforts and research you can minimize it. Even you have to pay taxes on investments made. So considering all the pros and cons of investment at a young age one can make provisions for the ins and outs of funds. It won’t be always successful but then one learns from one’s mistake and experiences.

Making investments at the earliest has an additional advantage and that is devoting time because if you lose your site, you have the time to make up for the loss. It is advisable not to use your short-term money for investment purpose because you would not like to block your money during the time of need. Investing at the right time and in the right plan is your ladder towards becoming rich.


The young investors should invest in equity because it benefits them to fulfil their long-term goals. Also they should not ignore the risks associated with it. It is better to start a SIP on a mutual fund scheme if you do not want to invest directly in equities.


The Guts of the Trans-Pacific Partnership Agreement

Senator Bernie Sanders voiced his disagreement to President Obama’s big trade deal. Organized labor in the U.S. argued, during the negotiations, that the trade deal would largely benefit corporations at the expense of workers in the manufacturing and service industries. The Economic Policy Institute and the Center for Economic and Policy Research have argued that the TPP could result in job losses and declining wages.

Obama was granted fast-track authority to negotiate this and other trade contracts with various countries. Obama contended that this authority was important to completing the TPP then sending it to Congress for a vote. The Senate won’t have the ability to delay the TPP and lawmakers will not be able to change it. Supporters say that the TPP would force China to increase standards and regulations.

The Trans-Pacific Partnership or TPP has become additionally politically combative with groups worried about trade contracts. The TPP is not the only one, but it is a very big one and the negotiations are complete.

It began with a trade contract between Brunei, Chile, New Zealand and Singapore that came into effect in 2006. That arrangement detached tariffs, intellectual property, and trading policies on most goods traded between the countries. The TPP has grown into a giant free trade deal between the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. TPP wants to extend economic bonds between these nations, cutting tariffs on goods and services, and raising trade to increase growth. The 12 countries have a population of about 800 million and are accountable for 40% of the world’s GDP and 26% of the world’s trade. The deal is a notable achievement given the very different approaches and standards within the member countries mention the special protections that some countries have for certain industries. That makes it roughly the same size as the Trans-Atlantic Trade and Investment Partnership, another trade contract currently being used. The contract could make a new single marketplace like the EU.

After too many years of American foreign policy being bogged down in the Middle East, the Obama administration is aiming its focus on Asia. The TPP is the focus of the US economic re-balancing and a stage for regional monetary integration. Some say the TPP goes further, as an effort to contain China and provide a monetary counterbalance to it in the area. Many parts of the TPP are designed to exclude China. The TPP is thought to be a strategy to keep China contained.

Most of the disapproval for the TPP has been for the mysterious consultations, in which countries were planning to be bringing in large changes for the countries’ futures without voters’ knowledge. But much of what has been exposed involves changes to intellectual property, state owned property, and international courts. The TPP, as well as other trade deals, have a wide array of regulatory and legal concerns that make the deals influential on foreign policy and US lawmaking.

Information on the TPP’s effect on intellectual property has exposed that the U.S. has been forcing tougher copyright security for music and film, as well as more comprehensive and longer-lasting patents. The TPP would also increase the difficulty of the approval procedure for generic drug makers and extend protections for biologic medicines, which has concerned members of Congress. Public health and internet groups have campaigned hard against the TPP for a long time about these matters because it may restrict public access to knowledge.

Many TPP governments basically own huge portions of their economies. Discussions have intended to limit public support for public sector businesses in order to raise competition with the private sector. But some assert it gives companies the ability to sue governments that change policy to favor public-provided services. The TPP will is also said to increase competition between nations’ work forces.

After World War II, investors were concerned about investing money in 3rd world countries, where the legal systems were not as reliable. They were concerned that an investment is made in country one day only to watch a dictator repossess it later. Enter the provision called “Investor-State Dispute Settlement,” or ISDS. The ISDS was installed in previous trade contracts, and is installed in the TPP, to encourage foreign investment in countries with weak legal systems. The ISDS could lead to huge penalties in the event that steps are taken of a country confiscating corporate assets. The ISDS provision in the TPP would also tip the balance of power in the US further in favor of huge multinational corporations and weaken U.S. autonomy.


Is a House a Good Investment For You?

Are you among the crowd who is still thinking of where to invest the money they earned from years of working hard? There may have been unsolicited advises convincing you to put your share on various networking companies. Some may have even told you to put up a startup company. But is this the most practical thing you could probably do to your money? Perhaps, yes, if its your choice.

However, investing has its ups and downs depending on the industry you’re going to delve into. Yet, do you know that buying a house or owning one is one of the most intelligent investments you would probably make. Why?

Homes can be turned into rental properties. With necessary adjustments and with proper leasing or rental documents, you can turn your house into an additional income stream. What’s even good is rental fees tend to increase on regular intervals. There are persons who often move because of job changes. They constantly look for homes which they can rent, and yours can be their next rental homes.

Depending on a home’s location, it can also be a perfect vacation house. Typically, families, especially those with children, and those which embrace the concept of extended families – do love to have vacation houses. During specific periods of the year, the house can serve as a reunion spot for relatives to gather. So, thinking of having a vacation house? Should it be near a beach, the woods, or perhaps one that offers mountainview or cityview otherwise?

Home values typically increase. Thus, if you’re going to put your house for a resale – chances are you’re going to get good profits. So you better ask your local real estate agent which areas have markets in which home prices experience surges. Commonly, these areas include those where professionals flock because of employment opportunities.

Buying a house is also seen by financial houses as a better investment than credit cards. This is one reason why there are many lenders that charge low-interest rates on home mortgages.

Are these reasons still not enough to convince you how good of an investment is owning a house? Another bonus benefit of owning a house is the local community attachment you’re going to build. You’re start to have acquaintances who’ll later become your friends. Your neighbors will likely become close to you like family. There will be some sort of emotional attachment.


10 Essential Investor Tips For Successful Investing

Trading and investing into the financial markets has never been more popular. More and more people are starting to see the benefits of taking a little time to, first invest in themselves through a trading and investing education, but also using that knowledge on the financial markets.

Whilst traders may take quicker positions and investor will most likely be holding positions for much longer, perhaps months or even years. So, if you fancy investing into the financial markets successfully, and profit from companies you already know about like Google, Facebook or Microsoft, then these are the ten essential things that an investor must do and know before they start. Let’s take a look…

1. What are your goals?

It sounds simple but many people start investing into a trillion dollar market without any type of plan which, let’s face it, is essentially a gamble. Whilst it can be very simple to invest profitably for the long-term you must define your goals as this will align your expectations correctly, so you don’t kick yourself in the teeth if you don’t hit a million dollars in one day. For example, knowing whether you are investing for the next five or twenty-five years can make a huge difference to how you decide to invest.

2. Start early for compound interest

The single biggest reason to the success of most billionaires is the power of ‘compound interest’. Even Albert Einstein regarded this as the ‘eighth wonder of the world’. It basically means that your money makes you money as all the gains you make you put back into an investment so it compounds and builds over time. Sounds good right? It definitely is! The earlier you start the better but no matter how old you are it’s never too late to start but imperative that you do actually start!

3. Every little helps

No matter how little or how big you can invest, it is well worthwhile investing on a regular basis. It sounds so simple but most people don’t see the point in investing just $10 per month. However, if you look to the future by the time you’re very old that amounts to a lot especially if you parked it into some good investments over the years. Of course, most people have a ‘spend today and save tomorrow’ mentality and that’s the trap folks. Save and invest regularly to reap the rewards in the long run – you’ll be glad you did.

4. Diversify

It’s imperative to spread your capital across a wide range of investments to reduce your risk and increase potential returns over the long-term. Whilst some investments are doing poorly some others may be doing great, thereby balancing it out. However, if you’re fully invested into just one thing then it’s either 100% right or wrong. There are thousands of markets across currencies, stocks, commodities and indices so the opportunity is there.

5. Educate yourself

By far the most important tip. You must educate yourself and learn your craft. After all if you’re investing your hard-earned capital it makes sense to do your homework. Even if you read all the articles here and watched all the videos you’ll be doing far better than the majority of investing wannabes who simply give away their money to the markets.

6. Have practical expectations

Of course, we all want that million dollar investment and for many it will come at some point. But you can’t plan for that, if it happens great if not then you still need a plan to survive and to reach your goals as discussed in the first tip. Remember it’s the journey that’s the most beautiful part and what you do on a daily basis that makes the difference.

7. But don’t limit yourself

It’s important one must remain conservative in deciding which investment to take. However, that shouldn’t limit you to just what you know. Be creative and find opportunities no matter how uncomfortable they may be. After all if it was that comfortable everyone would be doing it. Be adventurous in finding opportunities but be conservative in deciding which ones to take.

8. Manage your risk

Successful investing is all about managing risk. If you have $1,000 to invest then there’s no point in putting all of that on just one investment. You’re basically saying it has a 100% success rate… which of course is highly unlikely. If you follow the steps above, like making sure you diversify, then you’ll be on the right path.

9. Review constantly

A very simple step to achieving more from what you are already doing is to review your investments constantly. However, this does not mean to look at your profit and loss of a five-year investment every single day – you’ll never make it to the fifth year as markets move up and down. But it’s important to review what investments have worked and have not worked. Concentrate on doing more of the stuff that has worked and find out where you’re going wrong with the stuff that hasn’t.

10. Have fun!

Sounds simple but most people forget that are best work comes from when we enjoy the process. Whilst investing is a serious process you are allowed to enjoy it too. In fact the buzz of finding an opportunity, researching it, investing into it and then seeing the result is exciting in itself.

There you have it ten essential tips for successful investing.


How Genuine Is Your Home In Terms Of Investment?

Different people follow different types of life style. Some are always busy trying to earn hard money so they can think of investing in future plans. Thousands of people around the world make money for their future investments. The moment you go out and speak to the professional investment agent, most of them might give you different advices. Some of them might also advice you to try and invest all your hard earned money in different types of networking companies, bonds or financial institutes. Some of them might also advice you to invest in real time business by setting up a small or a big production of servicing unit. This depends on your choice where you want to make your best investment, but these certainly are not the only and the best options available.

Even before investing any money, you need to get familiar with all possible ups and downs of the investing industry. The factors may depend on the area of your interest. For many people around the world, who are also successful investors, investing money in real estate and home is a smart way to invest your money. One of the main benefits with real estate is that you can always have an option to rent it for more profits. This is not a very difficult task as you just need to make a few adjustments to the property and ensure that all possible documentations are valid.

Rental homes certainly are considered to offer you with a better income stream that is consistent for over a period of time. Apart from this, depending on the present market conditions, you can always expect the rental amounts to go much higher with time. Many people always look around for new rental homes as they are on move because of their jobs. Apart from renting home to a salaried person, you can also try and convert it into a nice vacation house. There are many people who try getting away from the busy schedule of their job and often look around for perfect escape vacation home.

The cost of rental can change according to the location of the home. So if you have invested in a home that is located in the deep forest, you always have a better chance to earn money. Also people with joint family always look out for extended homes for their loved ones and so you can try and come across to rent your home to them. If you are in contact of any social club then you can also try and offer your home as a perfect reunion spot.

As the value of real estate keep on increasing after regular period of time, you can always ensure to get best resale value after few years of investment. For many people, homes are always the best investment options as they get a chance to generate big profits over a period of time. As for homes, it is much easier to convince ourselves that they are always the best investment plans for anyone. So a smart investor always looks around for opportunities to invest in genuine real estate.