Have you always been wanting to grow, expand, and increase your money but don’t know how to do it?
While saving money can give you an ample amount of cash in the future, investing it instead will help your cash double, triple, or even quadruple in amount. Are you ready to take your savings to a higher level and make them grow through investments?
Investing doesn’t always mean building your own business/company or tying up with a business partner and having some large operation to manage.
You can easily invest your money in stocks and increase your savings basically overnight. Many people are starting to do this instead of just letting their money lie in the bank collecting dust.
If you want to invest in the stock market and you think that you still don’t know how to play the game of stocks, here are some of the basic tips that beginners need to learn on how to start growing funds and become a great investor in the stock market.
A Beginner’s Guide To Investing
The Concept of Buying Shares
Shares when talking about stocks means the number of pieces or the amount that you own in the company. When you buy shares of a company in the stock market, it means getting a percentage of ownership in that business.
For example, an established company needs $500,000 to expand its business. The corporation divides the company into 5,000 pieces. The pieces are what we call “the shares” that will be sold to investors. In this example, each piece or share costs $100. If you want to invest in that company and you have $2,000 at hand, you can purchase 20 shares of that business.
Profiting from Shares
Let’s assume that you spent all your $2,000 in the example company to buy 20 shares. If the company earns $250,000 in one year, the profit will also be divided into 5,000 which means that each share sees a $50 profit.
Now, you have 20 shares, so your $50 is multiplied by 20, and you’ll gain an increase of $1,000 from your stock market investment. The profit you gain depends on the number of shares you bought.
Buying Shares from Different Companies
Investing in the stock market doesn’t constrain you to invest in only one company. You have many options to choose from, and you can try putting your investments into many baskets. However, remember that different companies have different performances and so, they gain different profits throughout the course.
Some may be higher, some may be lower, while some may not gain any profits. Before putting your money into a company, you need to check the financial portfolio and see if it is worth your investment.
You may put your savings into one company and gain all the profit when the income boosts, or risk your investment when it doesn’t grow. You may also want to distribute your investments and buy a few shares in many companies.
Start Investing Now
They say that the best time to plant a tree was 20 years ago, and the second best time is now. So unless you like to spend your days Googling how much is Deion Sanders worth or what is Nick Cannon worth, then you should be looking at how to increase your net worth and take action. Expand your savings. Learn the basic steps of stock market investing. Seek advice from experienced professionals. Invest in stocks today and increase your value.
Since Donald Trump came into the presidency, the stock market has seen a sudden boost. Many are calling this dramatic, sudden boost a bump in the stock market. Many have decided to start calling this the ‘Trump Bump.’
The stock market has boosted already about $3 trillion. Many investors have been reaping the fruits of the Trump Bump and are taking advantage of it. Many have also been saying that the momentum will continue for the rest of the year in 2017. But how long will the Trump Bump economic boom really last?
There has been much speculation about how long it will continue to rise. Some say that the stock market rally will go on in 2017, while some experts don’t believe so.
How Long Can The Trump Bump Last?
One stock market expert strategist stated that the stocks are most likely going to keep on increasing because of the momentum they have made during the first two months of 2017. They saw a nearly 2% gain in January, while in February, it reached to a boost of nearly 4%. Currently, the stocks have been continuing to increase to about 6% presently.
Stock market strategists also said that the boost in January and February was the 27th time that the stock market index rose in those same two months since the year 1945. As they study the pattern of this bump in the economy since 1945, they have seen that those years always ended up profitable and did not have any losses.
The Pattern in The Stock Market and the Trump Bump Feaver
With those same patterns, there were some situations where the stocks did end up dropping. Those three years were in 1987 when there came a fairly large “stock crash”. After that, it took more than two decades to occur again. That case was seen in 2011 when the stocks steadily increased in the first months and went down during the last month of the year.
Although, it was safe to call it a flat year where there were essentially no profits nor were there any losses. And the latest occurrence was in 2016 when the stock market index fell in the first two months at 6%. Nonetheless, the market was resilient and returned fairly decent numbers as the year ended, boosting up to 13%.
During the years when the stock index rose in the first two months, they have seen that it kept on rising until the end of the year. They have also found out that the stock returns in the course of the entire year have been averaging about 24% which means that investments can turn almost a quarter higher once claimed.
Because of this pattern that stock market experts have found, it could most probably be that the Trump Bump campaign that President Donald Trump can be credited with. This trend should carry on and will last until the end of the year. Consequently, it could also be the right time for investors to put their money into stocks and reap the benefits at the end of the year.
To Invest or Not to Invest
Though there have been many stock market predictions made by many different experts, the actual flow of the gain or loss can’t really be determined. Although it is not 100% clear how long the Trump Bump will run, the trend that the strategists have found may prove those predictions to be true.
Trade, or commerce, involves the transfer of goods or services from one person or entity to another, often in exchange for money. A network that allows trade is called a market.
The original form of trade, barter, saw the direct exchange of goods and services for other goods and services. Barter is trading things without the use of money. Later one side of the barter started to involve precious metals, which gained symbolic as well as practical importance. Modern traders generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.
Trade exists due to the specialization and division of labor, in which most people concentrate on a small aspect of production, but use that output in trades for other products and needs. Trade exists between regions because different regions may have a comparative advantage (perceived or real) in the production of some trade-able commodity—including production of natural resources scarce or limited elsewhere, or because different regions’ size may encourage mass production. As such, trade at market prices between locations can benefit both locations.
Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, online or by mail, in small or individual lots for direct consumption or use by the purchaser. Wholesale trade is defined as the sale of goods that are sold as merchandise to retailers, or industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or Over The Counter (OTC) market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market. The main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency’s absolute value but rather determines its relative value by setting the market price of one currency if paid for with another. Ex: 1 USD is worth X CAD, or CHF, or JPY, etc..
The foreign exchange market works through financial institutions, and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as “dealers”, who are actively involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the “interbank market” (although a few insurance companies and other kinds of financial firms are involved). Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Because of the sovereignty issue when involving two currencies, Forex has little (if any) supervisory entity regulating its actions.
The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the United States to import goods from European Union member states, especially Eurozone members, and pay Euros, even though its income is in United States dollars. It also supports direct speculation and evaluation relative to the value of currencies and the carry trade speculation, based on the differential interest rate between two currencies.
In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency.
Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different sub-categories: public finance, corporate finance and personal finance.