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Top ways to create a powerful investment portfolio

If you are thinking of investing some of your spare money, then you would not be alone. The 60 major global stock markets are worth a staggering $69tn between them….

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If you are thinking of investing some of your spare money, then you would not be alone. The 60 major global stock markets are worth a staggering $69tn between them. They see a high volume of trade each day from people investing their money into shares. When you factor in the other major financial markets that are open to trade on, such as the foreign exchange market, it is clear that investing is something that a lot of people do now.

Before you jump in though, you need to know the key factors that will help you succeed. Chief among these is how to build a powerful investment portfolio that is structured to handle what the markets may throw at it.

How to build a powerful investment portfolio

If you need a few tips on building a robust portfolio, then the below advice should help:

  • Set clear goals – whatever individual assets you have in your portfolio, you need to have clear objectives around them. You should always know how you expect each investment to perform, what the risks are, and when it is time to get out. This will protect your portfolio over time and make it easier to track if everything is working as planned.
  • Do not overpay – price is one key thing to understand when building up a strong portfolio. One thing to really think about is the price at which you buy any stocks or shares. If you overpay, then even a well-performing stock will not provide the returns that it should. Always try to buy stocks that give value as well as future returns.
  • Diversify – a great tip from the investment professionals is that you should always have a mixture of assets in different sectors. This protects your whole portfolio and makes it more powerful to stand up to any one investment tanking. You are in effect not making the mistake of putting all your eggs in one basket.
  • Choose your sectors wisely – when thinking of what individual assets or stocks to put into your diverse portfolio, you should do your research. This should not only be into the individual company that you may invest in but also what overall sectors are doing well or about to explode. Technology, for example, is a hot sector now, and this kind of thinking will help you build a strong portfolio.

Keeping up with news is essential

The real power behind a successful portfolio is having access to the latest news and figures. This will help you take action if needed on your investments and always be up to date with what is happening in the markets. Most investors will do this on a daily basis but also with a more long-term weekly approach for the week coming. For everything you need to know about stocks this week, the internet has all the latest stories to check out.

Make your portfolio truly powerful

Many people will trade but not all will trade successfully. Make sure that you do win out in the long term by building a powerful portfolio that is strong enough to ride any market fluctuations. By doing this, you are giving yourself the best chance of trading success overall.

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The Benefits of Exchange Traded Funds

If you have been looking to gain trading exposure in a certain market or industry in Singapore, diversify your investments or hedge against your risk then you are in the…

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online trading platform

If you have been looking to gain trading exposure in a certain market or industry in Singapore, diversify your investments or hedge against your risk then you are in the right place. This is because exchange traded funds can be an added asset to your portfolio.

Investors who not only make use of exchange traded funds but also include them as part of their strategy for investing get to enjoy many of the benefits they have to offer. Here are some of the benefits of exchange traded funds.

Offers Flexible Trading

Exchange traded funds trade in the same way as equities do in the stock market. Therefore they are flexible since they trade throughout market hours. Exchange trade funds are sold and bought during the day when the trading markets are open. In addition, the pricing of their shares tend to be continuous during the normal exchange hours. However, share prices may vary throughout the day depending on the underlying asset’s intraday value in the fund.

If you are investing in exchange traded funds you will be able to know within moments just how much you have received after selling shares as well as how much you bought them for. Exchange traded funds can either be sold on margin or short the good thing being that the prices are continuously updated during the trading day.

Provides Accountability

On a daily basis, the list of assets in the fund are published by the creator, company sponsor and designer of the exchange traded funds. Even though a good number of mutual funds publish such constituents, they do it on an irregular basis. Therefore, mutual funds are not well known for being transparent. However, this is not the same case with exchange traded funds which provide for accountability.

Lower Costs

The commissions on exchange traded funds tend to be lower since are able to make one transaction per trade. This is opposite of that of an index which requires you to have multiple trades as well as a basket of stocks. Additionally, managing fees for exchange traded funds are lower as compared to regular mutual funds and there are no load fees as well.

There are many other ways you can use if you want to keep investing costs at a minimal with exchange traded funds. However, it is important to note that all managed funds in Singapore as the rest of the world are bound to incur operating expenses regardless of the structure.

Can Be Purchased Via a Single Transaction

Just like indexes can follow certain sectors of the financial market so do exchange trades funds. However, you can purchase an exchange traded fund using a single transaction. What this means is that by doing so you will be buying a mini portfolio instead of a basket of stocks as you would with an index.

This will make your life much easier especially if you are targeting a specific price. In addition, with exchange traded funds you will get filled on your complete order instead of chasing each individual stock when trading with indexes.

They are Simpler

Exchange traded funds are not only simpler in structure but also easier to understand. However, this is with the exception of inverse and leveraged exchange traded funds which happened to be a tad bit intricate.

Therefore, if you want to mimic the return of investment on an underlying asset or particular index or if you want to invest in a specified industry in Singapore you should be happy to know that you are only one step away to get started in financial trading with exchange traded funds.

There are many benefits that may come with including exchange traded funds to your investing portfolio. You should consider an exchange traded fund as weapon that you should include in your investing strategy. Also remember that exchange traded funds can be virtually traded on any major currency, asset class and commodity in the world.

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How many trades do you really need to execute per month?

Have you ever assessed your trading performance? Do you really know the number of trades executed by you per month? Most probably the answer is NO. Majority of the novice…

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Have you ever assessed your trading performance? Do you really know the number of trades executed by you per month? Most probably the answer is NO. Majority of the novice traders are biased with the profit factors of the market. They are always trying hard to maximize their profit factor to earn more money. On the contrary, the experienced traders never overtrade the market. They are more concern about their investment. Even if you find 3- 5 good trades per month, it’s enough to secure your whole month earning. You can easily lead your dream life by following this simple principle.

So how many trades do we need to lead our lives? If we say four trades per month is enough to bring change to your life what would you say. In reality, four quality trade execution is enough to establish your presence in the professional trading network. In this article, we will tell the exact way to make money by focusing on the quality trades.

As a currency trader, you need to eliminate the noise from your life. Majority of the traders are frustrated with their trading performance. They simply forget the basic rules of investment, quality matter over quantity. The professional traders don’t trade all day long to ensure a high standard of living. Neither have they had a super accurate trading strategy. They are simply using the probability theory and trading the market with high-risk reward ratio. Even if you trade with 1:2 risk reward ratio, you can easily make a profit with 60% win rate. But sadly the new traders close their profitable trades too early. But when it comes to losing trades, they make their loss much bigger than expected. They simply trade the market with hope and emotions. But emotions have no place in spread betting industry.

Advanced technique

You need to know the advanced use of spread betting platforms. Those who consider trading as their full-time profession knows the perfect way to use their trading tools. They don’t sit in front of their screen all day long to find the best trades. On the contrary, the novice traders seem to guard the market. But if they knew about the pending features of the market, they could have easily made a huge profit. In order to ensure decent curve of your equity curve, you must use the technology in a very precise way.

Let’s say you have executed 4 trades in a month. Out of 4 trade, two of them are losers. You followed 1:2 risk reward ratio in each trade. For every loser, you lost 2% of your trading capital. So for the two losing trades, your account is down by 4%. But for every winner, your gain was 4%. So for the two winning trades, you secured 8% gain. So if we calculate the gross profit, you will still make 4% profit on that month even after losing two trades. This simple formula can help you to master the art of spread betting.

Trade management

Trade management skill is the most important thing you need to know as a currency trader. Those who are relatively new to the trading profession, don’t know the perfect way to manage their losing trades. They are always trying to recover their initial investment by increasing the risk size. On the contrary, the experienced traders don’t have any emotional attachment to the outcome of their trade. They know very well, their trading strategy works in the long run. You have to stick to your trading system to make consistent profit from this market. Being new to this industry doesn’t mean you will have to lose money like the 95% of the traders. If you can understand the language of the market and trade with managed risk, you are going to become a profitable trader within a very short period of time.

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Awesome Apps for Managing Your Finances

We live in an age of constant stimulation; if you’re not being told exactly what to buy by the television, internet ads, blogs, and YouTube videos, then you it’s just…

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We live in an age of constant stimulation; if you’re not being told exactly what to buy by the television, internet ads, blogs, and YouTube videos, then you it’s just as likely that you’ll be consumed by work or addiction to online technology.

With this fast-paced lifestyle, it’s not hard to lose track of what’s going on in the background; namely, the state of our own personal finances. Thankfully, there’s a slew of great apps out there which we can use to keep tabs on how much we’re spending.

Today, we’re going to look at a selection of our favourites for doing just that.

You Need a Budget

Also known as YNAB within its community, this app is pretty spectacular. Its goal is to help you visualize your finances, so that you can stop living on a paycheck-to-paycheck basis. In fact, its emphasis on assisting you in tackling your debt and dealing with unexpected circumstances is a breath of fresh air in the free-flowing world of app releases; because, when all things are considered, the only thing better than an original app idea, is an original app idea that helps you to drastically improve your standard of living.

Instead of allowing users to set their own disposable spending limits, YNAB analyses your funds by gathering information about your regular income and expenditure, and then creates a budget around that. This means that, instead of merely having saving goals, you’ll be living within the most realistic income of all – your actual earnings! Genius.

Acorns

Another great tool for helping you to build your own nest egg is Acorns. By helping you to develop good financial habits, this simple app can let you start making the steps you need to build up a considerable nest egg.

How does it do this? Well, every time you make a purchase using a bank card which you’ve pre-configured with the Acorn app, it will round the amount to the next-highest dollar. By investing the difference between the price of your purchase and how much is actually deducted from your account into low-cost exchange-traded funds (and you can actually tell the app how risky you want your investments to be), you’ll start to see your rate or returns significantly grow.

After all, who doesn’t want to find an extra $500 or $1,000 in their investment account at the end of each year? We’re serious guys – try this one!

Microsoft Excel

Yes, it’s ghetto, but it gets the job done. In fact, in the years before the proliferation of genuinely useful mobile apps for managing finances, I used to manage all of my expenses using a fairly straightforward Spreadsheet I put together in Excel.

Even with the most rudimentary formulas, you can tally up how much you’ve been spending, how much has come in to your bank account, and identify those sinks where you’re spending too much money and take the necessary action needed to close them up.

Of course, there are countless ways to manage your personal finances using today’s mobile technology. In fact, for those of you who are really into it, you can combine several different tools to create a kind of monolithic, terror-inducing master method for saving money. However, for those of you who just want to save a little, any of the above options are going to get you on the right track starting today.

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