Author: Jeremy Terry

Don’t Make These Costly Mistakes While Banking

Don’t Make These Costly Mistakes While Banking

Knowledge is power, ignorance is a crime especially in the field of finance. It is important for individuals and business to know everything about banking because a single mistake can turn into a costly affair. Don’t make the below mistakes.

  1. As a conscientious individual, it is your responsibility that you never end up paying a maintenance fee for your checking account. It is within your capabilities to ensure that you maintain the minimum balance in your account. You can choose to have your salary deposited into this account or a better option is to choose a bank whose minimal requirements are meetable.
  2. If you are not alert you will have to pay overdraft fees when your account has insufficient funds; overdraft fees are always high. Irrespective of whether the bank approves a transaction or rejects it if you have insufficient funds in your account for a particular transaction you will end up paying a hefty To prevent this from happening to opt out of the overdraft protection. When this happens, if your debit card is not accepted due to insufficient funds you will not be penalized and dumped with a fee. But you cannot opt for overdraft protection in all transactions. The best option is to link your savings and checking accounts and ensure that the checking account has the maximum cash. Even for internal transfer of funds, banks will charge you fees.
  3. Even though using a credit card is an easy option, do not use it as overdraft protection. Not even when the immensely friendly and all-knowing bank representative tries to convince you to link your checking account to the credit card. While it will not be as costly as paying an overdraft fee it is still not cheap by any standards. In this case, you will end up paying several fees instead of one overdraft fee. You will pay:
    • Overdraft protection fee
    • Cash advance fee for the credit card because this transaction will be treated as a cash advance
    • You will also end up paying interest on the cash advance.

A better solution is to use the credit card directly for your purchases.

  1. Savings account must always have minimum balance because the interest rates are really low at 0.01%. But this is not true for all banks, some internet banks offer better interest rate.

Everything is in your hands. With prudence and sense of responsibility, you can avoid all the additional charges banks sneak into your fees all the time. Take the example of Crypto VIP Club, I invested in this trading system only after making sure that it is not a scam like several other systems online. See this to believe that all trading systems are not scams.

Make Profits Through ‘In The Money’

Make Profits Through ‘In The Money’

When the strike price of the call option is less than the price in the market of the underlying security or the put option’s strike price is more than the price in the market of the underlying security is known as “in the money”. It is said that if the option is in the money it has intrinsic value whereas if the option is out of the money will not have intrinsic value. If the trader is investing to trade in the money, it does not mean that they will make profits from the trade since to purchase an option it costs money. In the money will mean that the option can be exercised. All these options can be applied to crypto trading as well to know more go through this review.

If the stock option is worth exercising and has intrinsic value it means that it is in the money. Let us take an example:

Suppose a person by name Mathew purchases a call option on stock XYZ whose strike price is $15. Now the stock price is sitting at $20 in this case the option is said to be in the money because the option will offer Mathew the right to purchase the stock for $15 but he will be able to sell it instantly for $20 which will gain his profit of $5. Here every options contract will be representing 100 stocks, therefore, the profit that he will actually earn will be $5 x 100 which will be equal to $500.

In case Mathew would pay $5.50 for the call, there wouldn’t be any possible profits that he would gain from making this trade because he would pay $550 which is $5.50x 100 shares just to trade one contract which will lead to him benefiting only $500 so as you can see he is actually losing $50. However, in spite of this, here the option is considered as in the money since when the option expires it will be worth $5. If the strike price of the option would have been $21, in this case, it would be out of the money and hence they will not be of any worth when they expire meaning it does not have intrinsic value.

Out of the money in a brief

A call option is said to be out of money when its strike price is more than the market price of the underlying security or put option has a strike price that is lower than the underlying security’s market price. There is no intrinsic value in out of the money, however, it has extrinsic value or time value.

Effects Of January On The Prices Of Shares

Effects Of January On The Prices Of Shares

The price of the stock is increased due the season which happens in the month of January is known as the “January Effect”. Typically by the analysts assign this rally to growth in purchasing and this is followed by a price drop that is bound to happen in the month of December. The price drop happens when traders who are engaged in gathering tax-loss to the capital profits got from realizing offset and it prompts a sell-off. Another way to explain this is, the traders who want to make investment make use of the money got at the end of the year as a bonus to buy assets and they are bought on the month that follows.

The January effect is just a theory and similar to the effects that are related to calendar they also recommend that the market as a whole are ineffective because if the market was effective it would make this effect imaginary in a natural manner. The mid caps and large caps are not much liquid in nature, the January effect appears to have an influence on small caps. Since the start of the 20th century, it has been suggested by the data that these classes of the asset have performed better than the complete market in January. It performed significantly well during the mid of January. This outstanding performance was noticed first in the year of 1942 by Sidney Wachtel who was an investment banker.

The pronouncing of this historical movement has become less over the latter-days of the year because it seems like the market has got adjusted to this. A lot of people are making use of tax-sheltered retirement plans because of which the January effect started getting less and less importance by the year 2016 since analysts feel that in this case the asset need not be sold at the end of the year as there will not be any tax loss.

Apart from gathering of tax-loss and purchasing it again and also investing bonus funds into the market, there is another explanation for the January effect which is related to the psychology of the investors. It is believed by the investors that January is the right month to start making an investment in programs or sometimes they consider that this will be their New Year’s resolution to start making investments for the sake of their future to be secured. You can make another resolution to learn trading cryptocurrency using this software and read this review.

Educate Yourself Before Beginning To Trade

Educate Yourself Before Beginning To Trade

We all aim for betterment in life. This may be in various streams such as career, living, earning, happiness etc. Amongst all these aims, better earning is one of the foremost aims that we all think of. Channelizing our savings into proper investment is something one must be careful of. If your goal is to earn or gain more money, then investing in the stock market is the best option you could think for. People ignore investing in this market considering the risk factor. It is true that this market is uncertain and there are some rough tides. However, once you understand the strategies of stock market then you are the winner.

Here are few points to consider before entering the house of stock market to enjoy your trading and investment.

  1. Due-diligence: The stock market isn’t something to be learned or understood in a day. There are various factors that rule the stock market. Trading without knowing the basics of the stock market could result in high loss/less return. Search engines such as Google, Yahoo etc., help us to gather millions of information about any subject that we are in need of. Start questioning yourself and try to understand the pre-requisites for trading in the stock market. Stocks are listed under exchanges established in the respective country for eg. In India, we have Bombay Stock Exchange and National Stock Exchange. Understanding the basic will give you a clear picture to trade efficiently and effectively in the stock market.
  2. Understand the Strategies: Try meeting professionals who carry on trade on a day-to-day basis. Action always speaks better than words. You will understand better when you do some practical work or visit someone doing it. This will help you to face the pros and cons and prepare you to handle the situations. Learn the basic terminology of trading such as bid, sell, put, call, beta etc. Even though there are brokers who could help and work for you, it is always better to get educated and understand the strategies of the stock market.
  3. Explore opportunities: By now, you would know the basics of stock market. As you are aware, there are various types of investments depending upon risk and return. Analyse the options available and diversify your portfolio by investing in different options available instead of relying on one investment. Recently, many people are investing in cryptocurrency market considering the return. More than 20 million traders are dealing in this market. Click here to know more about investing your money in cryptocurrency market.

Trading always travels with emotions which may be positive or negative. One has to educate oneself on the basic working of stock markets including the market trends before entering the ocean of stock market.

 

 

TheTechnical Analysis Chart- Line Chart

TheTechnical Analysis Chart- Line Chart

Technical analysts look at the price charts to analyze the stock and to know when to buy and sell the stock. To plot the stock chart there need to be some price points. Continue reading to find the points:

  • The open is when the markets open to trade. This is the price at which the market opened
  • The high is the highest price that the stock went to in the time period
  • The low is the lowest price point till where the stock went during the time period
  • The close is where the price closed for a particular time period. This is an important price and you get to know the strength of the price at this stage. The closing price reflects the sentiment of the market

All these four points get plotted on the technical analysis chart to form a graph. The visual representation of the events of the market lets you take an informed decision.

The open, high, low and close of the market summarizes the trade completely. The chart displays the information and without a chart understanding, these prices could become very complex.

Theregularchartshowever does not work because of the plot just a single data point that is not suited for the analysis.

Charts used in technical analysis

The common charts that are used by technical analysts are the line chart, bar chart, and the Japanese candlestick charts. TheJapanesecandlestickchart is the most commonly used of the three because of its various benefits.

The line and the bar chart

The line chart is the basis of the charts and this chart uses only a single data point. The line chart only plots the closing price of the stock and dot is placed at each closing price. This is then joined to form a line.

So if the time period is 60 days then 60 closing prices are drawn to form a line.

The lien chart can be formed for various time periods. These can also be drawn for all the securities.

Line charts are simple to use and it just takes a glance to understand what the trend of the stock is. The disadvantage of the line chart is that the chart fails to give any additional details to the analyst. The line chart also ignores the open, high and low price of the stock.

The line chart is thus not used in the technical analysis because of its disadvantages. This led to another chart pattern that was seen as a better alternative to the line chart. This is the bar chart.

Understand The Assumptions That Technical Analysis Is Based Up On

 

Understand The Assumptions That Technical Analysis Is Based Up On

Technical analysis and fundamental analysis work differently. While the fundamental analysts are very concerned about whether the stocks are over or undervalued, the technical analysts do not bother about these. What technical analysts look for is the past data which is the price and the volume of the stock. They then analyze what information this data can give them that will let them analyze the future movement of the stocks.

There are some key assumptions, continue reading that technical analysis is based upon.

Markets tend to discount everything

This means that the technical analysts believe that all the information that is either known or unknown in the market is reflected in the stock price of the stock. This could be anything like say an insider who is buying stocks of a company or that there is some bad news about the company. Everything about the company is reflected in the stock price.

Why is not important- then how is

Technical analysts are not concerned about the why. They do not bother about why something happens or why did the insider buy the stock. All that the technical analyst is interested in is how the price reacts to the action of the insider.

The price always moves in trend

Everything major that happens in the market is because of the of-of trend. Thetrendisbasically what forms technical analysis. They believe that once a trend gets formed the stock prices will move in that trend.

History will always repeat itself

The price reacts in technical analysis and this happens because the participants in the market react to the news, in the same way, each time it happens. Thus when price moves in a certain direction once, it is believed that every time it will react similarly to the same event. Like suppose there is a downtrend then the market participants will sell in the market irrespective of how low the prices are. Human reactions do not change and this causes the prices to follow the same pattern each time.

Trade summary

As a participant in the market do you have to keep track of all the points where the trade was executed? No. You need to look at the different time scale charts to take trades. The market participant does not have to know the details of every different price point. All that he needs to know is a summary of the action.

Introduction to Bitcoin

World’s first cryptocurrency or digital currency is Bitcoin. It is also called “internet money”, “virtual money” or “digital cash”. Bitcoin is the currency that is virtually present but has value to it. So it is not an actual banknote or coin in your wallet but it is a digital asset in your digital wallet. It is not controlled or managed by any centralized system or is regulated by any government. It is decentralized.  The Bitcoin owners do not have account numbers, names or identification numbers linked in the system. It uses blockchain technology and cryptographic or encrypted codes to connect to its owners. It can be used to buy services and goods, but not every organization accepts it and is outlawed in few countries.

Because of the tremendous growth of cryptocurrencies, systems like Bitcoin Loophole have become an inevitable part of investor’s life. To know more about Bitcoin Loophole refer to the full report.

Bitcoin History:

Bitcoin was introduced as a Peer to Peer Electronic Cash System in early 2009 by Satoshi Nakamoto, an unknown person or group of persons.

How do Bitcoin works?

Bitcoin is a file stored on digital wallet app on your Smartphone or computer. All the digital wallets get a unique public address. This address is a 30 character long combination of number and letters. Owners can send or receive bitcoins or part of it in their respective digital wallets. All these transactions are recorded in a public ledger called Blockchain. Blockchain helps to keep the history of all transactions ensuring no one can duplicate, reverse the transactions or use bitcoins they do not own.

How do we get Bitcoins?

1) Buying: To buy Bitcoins we need to have a Bitcoin wallet. They are available on site like Blockchain.info or on mobile apps like Bitcoin Wallet for Android or iOS. Once we set up the Bitcoin Wallet we can buy Bitcoins using the traditional currency or the “real” money.

2) Selling: The best and easiest way to own Bitcoin is to ask the buyers to pay us in Bitcoins for the goods and services we provide.

3) Mining: Mining here means creating new Bitcoins using Computers. Extremely powerful and energy efficient computers are needed to mine the Bitcoins. In the mining process, the computers are required to solve extremely difficult mathematical calculations which keep on getting difficult in each step. When the mathematical problem is solved a new block of Bitcoin is created and the person/miner solving the problem owns the new Bitcoin. The process of mining was worthwhile earlier, but with recent advancements, it takes a lot of efforts, high-end computers and a lot of time (sometimes even years) to mine the Bitcoins.  Currently, there are 16.5 million Bitcoins and the maximum limit is 21 million.

Understanding The Importance Of Business Ethics

Understanding The Importance Of Business Ethics

We evaluate all kinds of factors when we plan to start a new venture and launch our business in the market. From ensuring the availability of funds to creating an informative website, all these aspects are dealt with appropriately so that there are no gaps later when the business hits the floor. However, the absence of some of the important traits in a business might actually have a huge impact on deciding the fate of the company. One of those essential aspects is ethics and morality.

What are business ethics?

Business morals and integrity basically comprises all the business rules and practices that might be related to matters like controversial subjects including corporate supremacy, insider exchange, corruption, discernment, corporate social responsibility and more. All these ethics are generally framed according to the law in the areas where the businesses would be functioning.  Otherwise, it also depends on the companies to create their own ethics that would suit the clients in a best possible way.

Why are business ethics essential?

It was back in the 1960s when people started to realize the significance of business as firms became more vigilant about the increasing dominance of buyer-based society and its related impact on the consumer environment. If spoken in terms of business ethics, then deeds and opinions are either wrong or right in a trade. There are no grey shades existing at all. All the practices done are to be according to the morals set for the company as that is exactly what the customers expect out of the deal. Ethics can be showed in different ways; importance mainly lies in its implementation.

If business ethics are upheld in a company, it is ensured that the kind of trust and support required between the buyer as well as the seller exists adequately. This implies that a person offering one service to a big investor should be offering similar service and dedication towards a small investor. These practices make sure that fair treatment is offered to the public and an unbiased attitude is kept towards the society.

Some appropriate lessons of business ethics can be learned from established and highly profitable companies like Ethereum Code. Such firms are living up to the expectations of their customers like a pro and have set outstanding examples for other start-ups too. You can find out more about this online crypto robot and see how amazing it is serving its clients without compromising even a bit in terms of integrity.

So, if you too own a business and are trying to figure out how to offer the most reliable services to your clients, remember that nothing else more than integrity and commitment is valued by the customers all across the globe.

Insurance And It’s Various Types

Insurance And It’s Various Types

Seldom have we known what the future holds for us, things happen that can disturb the financial stability in your life. We think we are prepared for situations like this but not always. We might face a situation where we need some financial backup. This is where the insurance comes in handy.  Insurance provides us with the most required financial support when other things are falling out. There are various types of insurances in the market but it can be difficult to choose the right one that suits your needs.

What are the different Insurance types?

There are many insurance policies for various causes available in the market. The main four types of insurance everyone should consider to have are:

1) Life Insurance: Many times it is only one person who is providing for his family, and if something life threatening happens to him the family is left behind without any financial support. Life insurance can support your family in case of your death. There are two types of life insurances:

  • Traditional Whole Life: This is the insurance policy you pay till your death.
  • Life Term: In this type of insurance policy you pay the installments for a set amount of time.

2) Health Insurance: Illness can cost a lot of money and sometimes without a strong insurance support we won’t be able to afford a lot of medical facilities. The affordable insurance policy is mostly the one your employer offers, but not all the companies have this facility. It can be difficult to find an affordable insurance policy without support from your employer, but it is important to have an insurance plan because the medical charges will be much higher than the insurance installments.

3) Long-term Disability Cover: We might face a situation where we are not able to work for a long duration. This could be because of various reasons like accidents, serious illness or permanent disability. At times like this, the long-term disability insurance can provide you with the financial support when you cannot go out and earn the money yourself.

4) Auto Insurance: Your car is also an important asset similar to your house. Without the auto insurance, the car owner may have huge expenses in case of an accident. Accidents not only can cause damage to your car but can be life threatening too. Auto Insurance can also safeguard your vehicles against theft, natural disaster, and spoliation.

Conclusion: Insurance can be expensive and need to put away some amount almost every month, but it can provide financial support in time of need. Apart from having insurance, you can also support your family with investments like trading.  Find out more about Ethereum Code on the link.

I am so glad that I documented my trading journey

I am so glad that I documented my trading journey

 

Ever since I have heard about online trading I have mixed feeling about it:

There have been times when I had nothing on me and my friends used to help me with small change. I used to wonder that if they do not work part-time and their finance back home is as good or should I say as bad as mine, how are they even able to save enough money to also have a surplus to aid someone.

Of course, this was never a guarded secret:

In the hostel in the university, every other student who could afford to have a personal smartphone or electronic device was trading in various derivatives. Some were handling stocks, some were keen on shares and some were into commodities like gold and silver.

A particular friend of mine was queerly making far more money than the others. On probing, he tells us that he is into cryptocurrencies or online currencies. These currencies do not have any form in the real world but they are very powerful in the virtual world.

So, it is a field with a lot of scopes:

Smith, my friend who was dealing in a cryptocurrency called the Ethereum was very confident that it would do very well. In a span of only six months, the cryptocurrency had a recorded growth of 300 times its original value. Smith thought that if the trend continues, there is so much scope that one can easily become a millionaire without having to do anything more than swiping their finger on the screen to trade it.

I was fascinated:

He introduced me to the trading world and also decided that I must document my trade journey in a blog. It was back then that I started with. Today, as I look back over the years and the journey of trading and trade blogging, I feel a deep sense of gratitude towards my friend.

I had started out on a program called Ethereum Code and fortunately for me, I am still on this very legit software because of its integrity and attitude for [putting their customer’s interests ahead of them!

Negative publicity galore:

A couple of weeks ago, I saw nasty reviews about this software. I know it is the work of someone who cannot see this portal’s integrity and is out to mud sling on its name. Any other person could have got provoked but I thought about the wonderful profits that I made over it over the years and smiled to myself. You can read and find out more about this fantabulous program from my blog the link for which is given at the bottom of the screen.