Category: Blog

Would you like to become a better investor?

Would you like to become a better investor?

If you have a great plan about your savings and if you manage to stick with it, it might help you overcome cash crunches. But would that alone be sufficient to secure your future? For that, you should be able to draft a clear plan for your future financial goals and this could be used to plan your investments. Now that there are plenty of choices in investments you can easily find one that falls within your budget and timelines. There is no right or wrong choice when it comes to investment. So are you ready to become a better investor? Here are some ideas that would help you in your investment journey even if you are relatively new in this area-

It is ok to stick with the safe choices

If you are worried about taking risks and if you would like to steer clear of the stock market, it is totally alright. It is fine to play safe as long as you pick the trusted investment options. Mutual funds and equity trading, in general, can fetch big profits and there is no doubt about that. But these do involve the market risks and so there are many who prefer to stay away from them. A good investor would play safe but take the efforts to learn about all the available options in order to be ready to diversify the portfolio.

Do not make hasty decisions

If you wish to establish a steady investment routine then keep yourself away from hasty decisions taken at the time of unprecedented market movements. Good investors are those who wait for the right opportunity instead of keenly focusing only on the returns. Performance does matter but the strategy matters even more. When you stop making decisions based on your previous performance you would be able to increase the profits in the long term.

Besides doing everything you can do not limit your source of information. Seek professional help when required and the best financial advisors can give you an insight into the market patterns. This can give you an opportunity to get all your queries answered.

There is a new era that is coming up and that is one of the bots. Bots are used for automation in several areas and there are numerous trading bots available as well. You get to choose from the many bots in the market or you get to seek the help of a human financial advisor. Whichever path you choose, you can definitely become a better investor if you have a clear plan laid out.

Facts about Home Loan incentives that most of us didn’t know:

Facts about Home Loan incentives that most of us didn’t know:

Home loans are the biggest loans taking across the globe! Most people opt for this loan, just next to your personal loan. Sometimes, the promotional offers on low-interest rates, charges waived off or any other irresistible offers will make people go hazy!

But, its nothing wrong if you opt for a home loan. Its wrong only when you don’t utilize the offer it comes with!! Do you know that you could actually claim a tax benefit on the EMI’s paid, even if you had missed one in that year!

Similarly, there are many other facts, which you ought to know before you head to apply for a loan or in case you already have one!

Claiming tax benefit on interests paid, even if you missed one in the annual year:

The government has approved for tax benefits on interest paid for the entire year even though you didn’t pay a few EMI’s in between. Until the interest liability sits on you, you can claim this.

Repayment tax benefit of the principal is reversed if you sell house below 5year:

Yea, you heard it right!! The home loan you took, in the worst scenario if you have an EMI, and want to sell the home due to reasons, which is just 1-4-year-old, then you need to pay back the tax benefit that you got for the principal repayment. You need to hold the copy for any future references.

Tax benefits apply to loans from friends and relatives:

In cases of tax, the usage is very relevant than the loan purpose. So, for any business, if you have borrowed money from friends and relatives, the same amount can be claimed in tax. Not just for new property, you can even borrow money for reconstruction and get a tax benefit.

Have the name, claim tax benefit:

Any person who is willing to claim a tax benefit should have the property in their name, or at least as a joint holder. Its applicable to all, including your own parents. If you bought the home in your parent’s name and you pay the EMI, you are not eligible for the tax benefit, while your dad is!!

Pre-construction period interest for the claim:

Yes, this is such a relief!! If you are taking to construct a home or a building some 3 years, then the interest that you paid for the whole tenure can be considered for tax benefit up to 5 years from the date of completion of the project.

 

Turn Your Failures Into A Success

 

Everybody will agree to the fact that a business is full of uncertainties. Failures do happen. They may or may not be due to the negligence of the owner. Profitability of a business is based on a various factor such as product, competition, target area, people etc. Losing either of the above factors may result in a loss. An Entrepreneur must never give up his effort during a loss. Mistakes are realized only when it creates an impact. Yes, the quote “Failures are stepping stone to success” is 100% authentic.

Learn to handle failures in a business. If not, it would be challenging to sustain in the market and achieve a growth in the future. Know the following factors to gain success while handling failures.

1) Never give up: Business is a game of probability where either party succeeds or fail in the market. It all focuses on the mindset. Be prepared in advance about the business risk and the amount of loss that he/she might tentatively incur. Many of the entrepreneurs fail to take the loss in a positive way resulting in an emotional pain such as suicide or depression etc. It is always wise to give your business the best shot while expecting the worst. Identity the alternative plan available and try to achieve the same irrespective of business failures.

2) Personal failure: Don’t mix professional relationship with your personal. If you have been affected by continuous failures in your professional sector, accept them positively and never take them personally. It may ruin your life leading to a depression. Try to identify the reason for your failure and improve yourself to gain a successful return.

3) Analysis: Analysing every situation in business; be it profit or loss, is very important in a business. Analyze and identify the factors that resulted in business failure. Try to explore the factors that can be undertaken to ignore or eliminate such failures in the future. Questioning yourself and finding a solution for the same helps you gain a better understanding of the business and its psychology.

4) Take responsibility:  The business is yours and you are responsible for any action undertaken in the business. In fact, taking responsibilities is one of the effective ways to handle business failures. Learn from the mistakes and take responsibility to move forward without committing the same to achieve better results.

5) Practice: The famous quote “Practice makes a man perfect” is undoubtedly correct when it comes to a business. Attaining everything in one single attempt is impossible. Keep trying until you get the desired result and learn from your mistakes. Market like cryptocurrencies wasn’t popular when established. Even though bitcoins were introduced in 2009, it gradually developed market attention and attained massive success and market growth during the last three years. Continuous perseverance does lead to a triumphant return.

Handle your business most efficiently and effectively. Failures are temporary. The destiny is always yours. Decide your future and works towards the same regardless of the circumstances.

 Simple Steps to Trade Online

                                        

Looking for a long-term financial goal, then considering the financial markets, trading and investing is definitely on the cards, one can experience it all in the trading markets, the windfall gain, losses, it is so unpredictable, yet many want to grease their hands in trading effectively. The online marketplace is thriving in with online trading websites than more fishes in the ocean while investing in the stock market is more disciplined as an incorrect decision could wipe off the entire investment.

Guide to invest wisely

  • before entering the trading world, learning about all the financial terms, trading insights and other nuances that are available on the internet, as well as some good reads, are important as mistakes can cost dearly
  • selecting an online broker who is unbiased and gives the best trading strategy is necessary, the list of brokers, their winning ratio’s and complete profile along with their licenses are available online, once the broker is selected there is a lot of analysis, charts, and information they will share so that the trading is done smoothly
  • in addition to selecting a broker, they can give demo sessions to the investor who wants to do active trading with a small fee, the commission charged
  • once the trading account is open, trading can be started by picking the correct stocks, researching on the public information that is available including the financial reports, earnings, SEC reports, and other details that outside professionals give, to get the understanding about the stock of a particular company
  • investing can be emotional, particularly when a person is new to the investment fraternity, losing money can be frustrating and it is that time when the panic and stress starts building in, affecting the trade, similarly one winning streak could make the trader invest all the money into one stack that could be damaging, keeping out all the emotions while trading is key to succeed
  • making a plan for staying invested, then it is always better to stick to the rule of thumb, stop-loss sell should not be used, just by seeing a sudden price fall in a particular stock, the risk is inherent, and so is the return

Bottom Line

It is not always necessary to engage in stock trading to accumulate the shares, all of them in one nest, there can be a diversified portfolio, considering the amount of risk to be undertaken and then build on the wealth-generating assets including equities that can be traded for a short term.

 

Business ethics

Business ethics

Business ethics are the principles needed to run a business successfully. It will help the businessmen to have a better bond with the other stakeholders. Business ethics are classified into two forms.

  1. Normative business ethics
  2. Descriptive business ethics

For corporate companies and many specialized organizations, the ethics will be normative and for the business understanding, the ethics will be descriptive. The business ethics will definitely have a reflection in the profits and losses of the organizations. The business ethics was first used in the United States of America in the 1970s. It will make a change in the philosophy of the business which is generally used to examine the basic purposes of the organization.

The emerging issues in business ethics:

Every businessman will have a doubt whether the company is moving ethically or not. We can find out more about the business ethics from many websites. Let us discuss some emerging issues in business ethics.

  1. Fairness:

Fairness is just an activity to motivate the people. There are three main aspects of motivating them. They include equality, optimization, and reciprocity.

  1. Misuse of company’s rules and resources:

When an employee arrives at the office late, it will definitely affect the profit of the company. So, the misuse of company’s rules will make the company to lose some money. This will make an impact on the salary of the employees. So, arriving office at the correct time is the best ethic to be followed by all the employees.

  1. Consumer fraud:

Fraudulent activities are going on in many fields in many ways like selling stolen goods, return fraud, friendly fraud, and price arbitrage. Fraud is a main unethical activity that will affect the company’s profits and benefits given to the employees.

  1. Abusive behavior:

Abusive behavior is the most important one to be avoided by the employees in an organization. Many employees do harassing, threatening the other people around them. This will lead to unethical situations in businesses.

Importance of ethics in a business:

Ethics is an important thing to be followed in an organization or a business. The wrong decisions taken by the individuals in a company will make the company meet a great loss. The ethical behavior of the employees will absolutely make a huge difference in the benefits of the company. The ethics will attract the people to purchase the products thereby the company will yield a profit. It will improve the productivity of the company and it will make the employees stay back in the same company for more years.

Multi-sig in Ethereum network

The person dealing in the crypto world, multi-sig is a common term for him. The multisig wallet in the Ethereum network is used to secure token, ether stored in the wallet of an individual. This technology was deployed to save the person from hackers and ease his tension if he loses his private key.

The crazy part of multisig wallet that will leave you puzzled is it can be used on the normal wallet, but before getting further deeper into multi-sig wallet lets understand the basics of it. To use a multi-sig wallet certain number of people is required to make it happen and the group should abide by the set of rules before it starts to operate. The rules like how to accept either or how to submit a request, why to agree to a request etc. in lay man’s word we can say multi sig wallet is like a joint bank account which required signatures of account holders to withdraw the amount.

To make the above statement more clear we can take an example of three-person who shares their fund. The first thing they should do is to deploy a smart wallet with all three of them. Once they have the smart wallet or multi-sig wallet they can start using it as a normal electronic wallet that can be used to receive either from any other ether address. For every Ethereum transaction, it is essential to it is to be sent i.e., the Ethereum address and the amount that has to be sent.

The multisig wallets work in combination with smart contracts for the easy flow of the fund and provide security to it while interacting with other smart contracts. They are known as multi-sig as they require cryptographic consent from multiple authorities to validate the transaction. These authorities can be a single individual or multiple individuals, it can also be a hardware wallet or a cold wallet or even a third party. It can also be a permutation and combination of above-said wallets.

Multisig wallets work diligently towards the security of the funds, utmost care should be taken while transferring the big amount. The multi-sig wallet should maintain a good standard to store a large number of cryptocurrency. The multi-sig wallet should be user-friendly and secure as much as possible so that it can be used by anyone on the Ethereum network to secure their transaction even against a single point of failure. Please click on the link find out more to know more about multi-sig.

9 Short Facts About Bitcoin

 

The trading business has seen a huge rise ever since the introduction of Bitcoin.

What makes Bitcoin trading popular?

Bitcoin trading has become an ideal investment mainly because of its

  1. High volatility
  2. Unpredictable price movements
  3. Huge trading volumes per trading day

Facts about Bitcoin

  1. While the traditional currency is made from paper, copper, bronze, and gold, Bitcoins are principally a cluster of highly encrypted data.
  2. Bitcoin has become a part of the trading world and more specifically an important fraction of the fast emerging cryptocurrency market. Hence, it is not wise to waste your time pondering over news such as Crypto Code scam and similar others.
  3. Bitcoin transactions abandon all banks and other governmental intermediaries that claim to act as the mediator for all your monetary transactions involving cash and other finances. Rather, cryptocurrencies facilitate the direct exchange of money between the concerned individuals by making use of a highly secure technology called the Blockchain technology.
  4. Initially, the first cryptocurrency that made use of the Blockchain technology was none other than Bitcoin itself. This process emerged out to be successful and later resulted in the development of a new cryptocurrency under the title Bitcoin Cash and many others including Ethereum, Litecoin, and Ripple, all which had contributed to an improvement of the Blockchain technology in terms of costs, speed, and energy requirements.
  5. Fundamentally, the Blockchain forms a ledger of transactions that are maintained securely in its network and the processing of the digital currencies happens with the help of complex mathematical algorithms known as mining of cryptocurrencies.
  6. Therefore, the Blockchain network performs one important function, which is to record every monetary transaction using a highly secure and fast process. However, one drawback of using the Blockchain network to carry out transactions is that every transaction is chargeable.
  7. The present value of the overall cryptocurrency market is expected to have crossed the $700 billion mark and analysts expect this figure could further increase by the start of 2019. This is one of the main reasons that make Bitcoin trading an appealing proposition in 2018. Out of the entire cryptocurrency market, Bitcoin is the only one that makes up for more than half of its share.
  8. However, the huge net worth associated with Bitcoins is concentrated in the hands of only a few persons because Bitcoins are purchased in small fractions. Therefore, this provides a great opportunity for everyone to dabble.
  9. Investors of Bitcoins consider that Bitcoin trading marks the dawn of a new, better, and free world.

 

Facts That Make You Serious About Trading Margins In A Cash Market Segment

The Bitcoin Loophole trading margins can be categorized into three main types with respect to a cash market segment and include

  1. The VaR or Value at Risk margin: This is considered as the heart of the margining system which is exclusive for cash market segment.

 

  • VaR margin is involved in collecting information on an upfront basis like how likely the volatility factor is likely to move over next one day.
  • It is an effective technique used to predict the value loss probability of an asset or its group based on some statistical measures of historical price trends and movements.
  • Further, this sector has three basic components like time, a level of confidence and a loss percentage upon which the value of an asset or portfolio is calculated.
  • When relating to a stock exchange scenario, a VaR margin is something which is intended to cover the largest percentage of loss which the investor must face for his purchases or selling shares occurring within a day.
  • Additionally, a VaR is tallied using EWMA or Exponentially Weighted Moving Average methodology. For this the companies holding the shares should be further divided into three like how periodically their shares get a trade, how is the liquidity maintained and how an impact cost varies according to an asset.

 

  1. The Extreme loss margins: This includes all the losses accounting outside the coverage of VaR margins.

 

  • For any stock, the Extreme loss margin is always 1.75 times higher than the standard deviation of daily stock price returns or can be also calculated as 5 percentage of the position over a certain period.
  • Always this margin rate is fixed at the starting of each month which involves the price data analyzing on a rolling basis for the past specified time say for six months or so.

 

  1. And finally, the Mark to market margin:

 

  • MTM calculations occur at the end of a day on all open positions by readily comparing the transaction price with that of the closing price of the share for that day. If any kind of MTM loss occurs, then it is meant to be paid by the coming day.
  • If by chance, on a given day, the quantity amounted to buying and selling a shares falls to be same, then the quantity position is regarded as zero but still, there could be chances of a notional loss or gain which is also accountable as MTM payable.