Author: Admin

Should You Invest in Forex or Stocks?

With an increased variety of financial investment options, investors can now lay their hands on more financial assets traded on the markets. Modern traders have access to instruments ranging from companies’ shares to ultra-liquid Contracts For Differences (CFDs) and forex markets. But making a light-hearted choice as to which type of trading instruments to invest is not a good idea because there are a few important factors for consideration.

The decision on whether to invest in forex or stocks is highly dependent on the individual’s risk tolerance levels and also trading style. Someone with a buy-and-hold strategy might be more suitable to enter the stock market, whereas a short-term trader, scalper, or day trader could search for markets with increased volatility.

The forex market is by far the largest financial market worldwide with daily trading volumes reaching sometimes more than $4.5 trillion. A lot of investors prefer forex markets because of the high liquidity they provide, their constant opening times (day and night) during weekdays, and also the quantity of leverage offered to traders.

Reputable stocks, also known as blue chips, are shares from long-operating and financially healthy corporations. They are sometimes strong enough to give profits during times of economic instability, and are known for paying dividends on a regular basis. These characteristics imply that these types of stocks are less volatile compared to many alternatives and are included by investors in their portfolios because of generating stable growth.

Volatility quantifies the level of fluctuations of financial assets’ price data, and it is vital for scalpers to be present and in high levels because they rely on volatility to make profitable short-term trading positions based on quick price swings. On the contrary, more risk-averse traders seek to invest in financial assets which are less volatile. Therefore, short-term traders have a preference in forex markets whereas longer term traders chose to place their funds in blue chip stocks.

Leverage is also a big deciding factor in deciding which financial market to invest in. Whereas stock traders are offered sometimes with 2:1 leverage on their investments, forex brokers offer to their traders considerably higher leverage ratios reaching even 400:1. However, bear in mind that leverage is a double-edged sword because even though it provides the opportunity to make substantial profits with minimal investment, it can also wipe out your trading account instantly when the market slightly turns against you.

Another important factor in choosing the right financial asset type for you is the trading hours. Stocks are usually limited to trading hours that are similar to working hours, around 09:00 to 17:00 on weekdays except holidays. On the other hand, forex markets are open for trading on a 24-hour basis because 3 trading sessions (Asian, European, and North American) are open in different times of the day and they provide around-the-clock trading activity.

The modern world of electronic trading gives the opportunity to investors to invest in more financial markets. The decision to enter stocks or forex markets is dependent to risk tolerance, availability of funds, and convenience. If a prospective investor is not available to trade during working hours, then the forex markets would be a more suitable option. But traders who have a more long term strategy and want to earn a steady stream of dividends might find that the stock market, and especially blue chips, could be the right choice. Before making this important decision of where to invest your hard-earned money, take a few moments to understand what your risk tolerance is and what your overall strategy is.

This article was written By David Parker from  www.easy-forex.com

How to Choose a Credit Card

As somebody who pays for things almost exclusively with credit cards (easier tracking, easier payment, loss prevention), I am quite choosy with which credit card I choose.

I’ve had a handful in my life, which is a far stretch from the dozens that many card hackers will have to get the most out of their cards, but I still do quite well for myself when it comes to card hacking. Earlier this year I posted about travel hacking through credit cards and my success with the ability to get free trips this way.

Because each credit card that you either apply for or open can have an effect on your credit score, it’s advisable to limit the amount of cards you open and focus on good quality cards.

Here are a few tips on how to find the right credit card:

Know Your Intent

What is the purpose of your wanting a new credit card? Will you actually be using it for purchases that you can’t afford? Or are you looking for a credit card to make it easier to track your spending and expenses? Maybe you want to be able to hack your way to a free trip or electronic.

While this does seem obvious, it’s apparently not; I caught myself one time thinking that I didn’t want to open a credit card that had amazing travel rewards because the interest rate was super high. I never carry a balance on my card and the purpose of the card wasn’t to go into debt because of it. I’ve never incurred interest charges anyway. I wasn’t thinking about the purpose of the card.

If you are a student and you need to put your tuition on a card so you can pay it back (bad idea by the way), then get one with an incredibly low interest rate. If you want one that will track your expenses well, you have to look into the provider.

Know the Best Timing

Timing is everything if you want to capitalize on credit card rewards. I have opened all of my cards because of their sign up bonuses (in conjunction with really liking the rewards). But just because a card has a great sign up bonus this month, doesn’t mean that it will have the same one next month. Be aware that the sign up bonuses are often limited time offers. If your preferred card doesn’t offer one, wait and see. 

Sometimes the timing will just afford you the annual fee being waived, and sometimes it’s something like free cash or a flight. It’s worth it to hold out, as you’ll see with this Money Crashers article.

Consider Acceptability and Ease of Use

Something to always consider when looking at which credit card to get is whether the card is widely accepted globally, and if it’s easy to use. When I say easy to use, I mean that the fine print should be legible and not too complicated, the platform that the company hosts the card on electronically should be easy to use, and you should be able to pay it off whenever you choose without penalties.

 

These are just a few things that I look for before getting my credit cards. What about you? 

 

Financial Roundup: Big Things Edition

It has been so long since I’ve done a roundup of any sort, but I’ve been reading along with my favourite blogs and I figured it’s time that I finally do something!

Part of the reason why I’ve been slacking off for awhile (thank GOD for my wonderful staff writers) has been because there are so many big things coming up.

On May long weekend (Victoria Day – a Canadian holiday) my best friend/maid of honour came over from my hometown and we hung out. Last weekend was my bridal shower. I had my hair done on Tuesday. This weekend I have a lot to do with blogs, another side hustle I’ve started up, and some friends. On Tuesday I have my first dress fitting for my wedding dress, and  next weekend I will be in Los Angeles. Then we’re looking at the big scramble, considering it’s a month from my wedding.

Throughout all of this, we’ve had quite a large re-structure in my department at work, so I’ve been finding out about things like where I’ll be working in about a month from now, with whom, and which duties will change. I went on an interview last Friday for a position that could be pretty risky.

So yeah, there is a lot going on around here.

I’m going to stop the madness now though and roundup all of the posts that I enjoyed over the past few weeks!

Links!

At Color Me Frugal, Dee posted a story about a job she once had and something her sales director said to her that stuck with her: “people can afford anything they want to afford”. It’s something to ponder with your own finances.

DINKS Finance posted: “You did what for that cash?!”, which includes an interesting story and makes you think about how far you’d go for a few bucks.

Michelle from Fit n Poor wrote about what they’d do with $1000 extra per month. If I had an extra $1000 a month, it would definitely go toward fast tracking our mortgage payoff.

I love Clever Dude’s posts about his wife, and this one about a bad purchase decision that was made is no exception.

Debt Busting Chick came clean about her debt on her blog, complete with a Judge Judy gif which made me smile.

The Broke and Beautiful Life has been posting some pretty controversial things lately. I really enjoyed Stefanie’s post about tithing on welfare. 

Also pretty controversial, Save Spend Splurge had a piece about drawing the line with cultural customs.

There was discussion at Million Dollar Ninja about asset allocation and where to invest your cash that was pretty interesting.

Shauna from Money Misfit posted about what to do with side hustle money. Normally, mine would go into my savings.

Syed from the Broke Professional points out that you are your own worst enemy.

Kalen at Money Mini Blog posted about 20 ways to give back. 

I liked this informative post from Canadian Budget Binder about asphalt sealing for the driveway and how to DIY, which is something I can’t believe I am interested in now, as a home owner but that needs to be done 🙂

 

Finally!