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The Importance of Setting Investment Goals

StrategyDriven Practices for Professionals Article |Investment Goals|The Importance of Setting Investment GoalsAlmost anyone can start investing nowadays, and they can do so without the guidance of a financial advisor, a stock broker, or any guidance at all. While novices are urged to start small and do their due diligence and research prior to getting involved with investments, there is a reason why some people choose to jump right in. The stock market is a big draw for novice investors looking for a big payday, and sometimes they do hit big. However, without a plan and investment goals, that one-time payout usually ends up being a case of beginner’s luck. The importance of setting investment goals should not be lost on anyone who will be building a portfolio of investments.

Setting a Healthy Financial Standard

There are various ways to make money and earn an income, with the majority of working age individuals choosing to seek out gainful employment. When you have a relatively steady income, you can estimate your expenses, and then live in a manner that allows you to stay within your means. Investing is one way of “beefing up” your finances, so to speak. If done properly, your investment portfolio will represent one of your assets that can be leveraged, liquidated, or transferred in the event that you need financial relief. In order to set a healthy financial standard, you have to look toward developing multiple channels of income.

Knowing What’s Going Out Versus Coming In

During the initial phase of investing, there will definitely be more money coming out of your bank account than going in. It doesn’t matter if you are investing $50 or $1,000 a month, as all investing plans should be developed with the investor’s budget in mind. Using the best Robo advisors will allow you to easily track the total amount you have invested and compare it against current total profits. Wealth Simple offers tools designed to help investors meet their personalised investment goals. Make your investments while operating in autopilot mode with Wealth Simple and you can always keep track of your investments made versus profits earned.

Having the Ability to See Consistent Returns

One thing that new investors need to learn quickly, is the term volatile. This single word perfectly sums up the stock, forex, and cryptocurrency markets perfectly, as anything and everything can happen. What all traders want, in spite of the volatility of the markets, are consistent returns. You can lose money on one trade, but quickly make up for it and then some on your next investment. Some investments will promise small, yet regular returns that can slowly bolster your portfolio. When you have investment goals, it is easier to see the act of investing as a long-term and large-scale plan as opposed to overanalysing individual trades.

Allocating Your Free Time

When you have an investment plan, you start to think about structure, resources, and time. While you are learning about investing and getting your first few trades underway, it’s okay to be as slow, careful, and methodical as necessary. Soon though, the amount of time you spend trading has to match up with the profits you are earning. Consider your work schedule and how it coincides with your salary. If you get hired at a set salary, then you would expect to make more money in the form of raises, bonuses, and other increases over time. So, someone hired in a position for $50,000 annually today would not usually expect or be okay with earning $35,000 annually, in a decade. The time that you spend investing works in the same manner.

Changing Priorities and Investment Goals

It is not uncommon to have set investment goals change. A change in income would definitely be reflected in your investment goals, while buying a home, getting married, or enrolling in college would also cause a change in your priorities as well as your investment goals. Don’t think that whatever you plan has to remain set in stone. It is actually a great thing to evaluate what your investment goals are from time to time, as the market and economy are going to change frequently, too.

Starting from Where You Currently Are

Some people are raised in families where everyone starts investing from the time that they are quite young. Parents may purchase stocks and bonds for their minor children, turning them over when they mature. As such, there are also many novice investors who have to learn everything themselves. Don’t worry much about where you are currently. Motivated investors can and do learn very fast. In addition, you don’t have to learn about investing on your own if you are also making use of all available resources.

Learning More as You Hit Your Investment Benchmarks

Investors who develop their portfolios with a goal in mind are simply more likely to hit their benchmarks. So, your ultimate goal might be to amass an investment portfolio worth $1 million by the time you retire. Logically, you will have several benchmarks to meet before you can even think about hitting that goal. The first benchmark may be $1,000, or $10,000 or some other relatively low amount. If it takes a very long time to reach those first critical benchmarks, then you will have to shift your approach in order to meet that end goal.

Guaranteeing You Won’t Take a Financial Loss

Setting investment goals helps you to avoid taking lasting financial losses. The fact of the matter is that all investors take losses. It’s just part of the nature of all the various trading and investing markets. Your losses might get offset by the close of the day, or you could be looking at making up that loss for months. Either way, if you have an investment goal, you will be focused on creating strategies to recoup your losses and not be caught up on one potentially dangerous plan of action.

Being Methodical About Making Investments

A good investor will always move methodically, which is what you can look forward to as you develop your investment goals. If an investment looks strong, you might purchase shares over the course of a few days, until you have a healthy amount. When selling, you will probably offload your shares in no particular rush. Biding your time might even help you to gain more profits than expected.

Determining What It Means to Take Calculated Risks

While slow and steady is said to always win the race, there are times when investors can benefit from the chaos that sometimes develops here. When you get an alert that a stock is way up or way down, you will probably pause for only a second before making up your mind and going for it. There are times when a risky move is your best course of action. With more experience in the stock market, you will come to know what those moves are and when you should be making them.

Remaining Calm During Market Shifts

Throughout a single day, prices are going to go up and down, sometimes quite sharply. The key to making good investments and creating intelligent investment goals is holding tight when the market shifts. Realise that major shifts in the markets ultimately lead to corrections in the polar opposite direction. So, if an investment you have just made goes way down unexpectedly, you have to remain calm until prices correct themselves. You have to know it will happen, even if the signs don’t seem to be there presently.

Gaining Confidence in Your Ability to Pick Profitable Investments

As you learn, trade, and build up your portfolio, you will feel much better about each subsequent decision. There won’t be that nagging feeling that you have done something wrong, and you won’t second guess yourself even if an investment does not turn out how you had hoped. The confidence that is gained during the course of you setting investment goals is going to change your perspective on a lot of things.

Being Sure That It’s Worth It

Whether you keep track of your investments by checking stock prices continuously while the market is open or utilise a suite of automated tools to collate data, what you gain on your investments has to be worth your time. People invest because they want to make money, build up their nest eggs, and have something substantial to rely on in case their primary sources of income dry up. Of course, you may need decades of investing to get there, but you will know along the way if your efforts have been with the reward.

You don’t need to be a stock market expert in order to make smart and profitable investments. In fact, you will learn just as much by actively investing than you will by reading predictions or finding out that a stock has skyrocketed after the fact. On the other hand, there are ways for you to learn about investing that don’t require you to blindly wager your hard-earned money. Check out various automated investment tools, including robo advisors and automated trading signals. Eliminate as much risk from your investment plan by taking advantage of all these resources and technologies.

3 Wall Street Terms You Need To Know To Play the Stock Market

StrategyDriven Entrepreneurship Article | 3 Wall Street Terms You Need To Know To Play the Stock MarketUnderstanding financial news is a key part of participating in the stock market. Unfortunately, Wall Street often describes business activities in less-than-clear terminology. Read on to learn more about three common business terms that will help you make sense of your investments.

What Are Advisory Firms?

Consulting and advisory firms provide various professional services to corporate clients. They help companies communicate better with customers and shareholders, conduct the research that businesses use to make decisions about their investments and provide clients with expert advice on improving their management and strategy decisions.

Many of these firms also work with nonprofits; for instance, Teneo’s Declan Kelly has a longstanding relationship with advocacy network Global Citizen. Declan Kelly, who founded the company, has years of expertise in international business, allowing Teneo to meet the needs of clients all over the world, a capacity essential for any advisory firm’s success.

What is Private Equity?

You’ve probably heard of several private equity firms like Blackstone or Bain Capital. These firms use investor funds to buy out publicly traded companies and take them off public exchanges or to make capital investments in private businesses. The “private” in private equity simply means that the capital isn’t listed on any public exchanges. Although there are many types of private equity, such as venture capital, you’ll encounter this term most often when it’s used to describe buyouts of struggling companies by larger firms that may be able to return them to profitability.

What is Venture Capital?

Private equity and venture capital both involve third-party investments, but venture capital is spread over several newer companies that demonstrate growth potential, and venture capitalists usually hold less than 50% equity in those companies, allowing the founders of those companies to retain some control. Private equity usually involves a complete takeover of a single company. Venture capital is also concentrated in tech startups, whereas private equity portfolios span broader industries.

Wall Street terminology might have a steep learning curve, but there’s no reason you can’t learn what you need to know to keep up with stock market trends and achieve your financial goals.

Bitcoin: The Future Global Currency?

StrategyDriven Editorial Perspective Article |Global currency|Bitcoin: The Future Global Currency?Bitcoin is the most popular cryptocurrency today. Similar to normal currencies, they are used in online transactions and paying for products and services in person. One key difference is that bitcoin is mostly decentralized and is not controlled by banks or governments. This has not cryptocurrencies from absolutely taking off, and notable futurists see the lack of regulation as driving their incredible growth.

Why Is It a Big Deal?

With everything in the world going more digital, the expectation is that bitcoin and other cryptocurrencies will come to replace standardized ‘fiat’ currencies. Bitcoin is a secure store of value that transcends borders. It can be used anywhere and the value of it is the same everywhere. This is a key attraction for many people.

Going Mainstream

Bitcoin maintains a degree of anonymity. Wallets (where the funds are kept), are void of a name as you would have on a bank account, and can instead be identified by their own individual ‘address’, made up of numbers and letters. Investing in bitcoin is basically made on the assumption that it will go mainstream eventually, and when it does start to get used in a more natural way, the value will rise.

A Limited Commodity

This idea is helped by the fact that bitcoin is a limited commodity. There are only 21 million bitcoins in total that will ever be in circulation, and there is no way to make more. The same cannot be said for fiat currencies. For these reasons and more, it has become one of the hottest asset classes in the last few years and has received huge amounts of investment from backers all over the world.

How Can I Get Involved?

In the past, investing in bitcoin was a difficult process as the technology was rather new, however, a lot has changed in a short space of time and the market has really opened up to the average consumer. Companies that back bitcoin not only offer easy ways to buy in but also ways of protecting your investment. Paxful lets you exchange bitcoin to PayPal, and will also give you a medium to securely hold and sell this bitcoin whenever you want to. This is one of the easiest ways to invest, and you will also have the added protection from PayPal when you exchange bitcoin to Paypal.

Investing in bitcoin may not be as stable putting money in the stock market, but it has seen some incredible growth over recent years, and you should be sure to check it out as many people genuinely believe it to be a future-proof, global asset.

 

This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.

The beginners guide to trading

StrategyDriven Professional Development Article |Trading|The beginner's guide to tradingAlthough millions of traders try their hand at shuffling within the financial market casino each year, only a few are likely to reach the optimal potential. This is because, in order to become a profitable trader, it is essential that you possess the basic skills that are required to turn the odds in your favour. If you are willing to go through the necessary activities that can allow you to rightly handle the financial market, then continue reading.

What is trading?

Trading typically refers to the exchange of goods and services, within an economy, between parties (producers and consumers). In international trading, exchange of securities mainly takes place between trading nations. Shares trading is the major type of trading buying and selling of company stock in the hope of making a profit.

Trading techniques everyone should know

Step 1: Registering for a trading account – The first and obvious rule is to open a stock brokerage account, by taking help of a good online stockbroker. It is typically suggested to have a separate professional trading account, apart from keeping a personal account. A professional account will allow you to learn virtual trading techniques offered by most online brokers. After you have become familiar with the account interface, you can then explore the free trading tools and conduct market research.

Step 2: Learning to read the market – To obtain information on the trading market, you can refer to financial articles or stock market books or look through website tutorials. You will be able to develop ideas and concepts that are related to the market, focusing on the aspects of the trading game. Studying the price action on foreign markets and following the overall market every day in your spare time, is also considered beneficial.

Step 3: Developing analytical abilities ? A basic knowledge of both the fundamental and technical analysis is required to figure out the best way to gain profits through trading. A good grounding on these analyses will provide you with a trading edge over those who ignore them, which will eventually help you survive as a trader. You must also become prurient in analysing the financial markets, their trends and trading ranges, as well as the properties that generate price movements.

Step 4: Practice, practice and practice – Practicing virtual trading will make you engage in real-time market actions, allowing you to make well-informed buying and selling decisions. You will gain the ability to determine challenges and address the concerned issues.

The trading courses will provide you with the right guide to help you learn trading around your busy schedule and start trading.