July 25, 2014

The Difference between Trading and Investing: Which is a Better Fit for You?

Investing and trading are two different ways on how you can make your money grow through profiting from the vast financial markets. You may find that these two concepts sound similar when you are asked whether you are spending money on stocks, or in an entire company. What makes them different anyway?

Long-term Investment

A person is considered an investor when his resources are being placed on a certain company or product for a long time, in hopes that these resources would expand over time. You are considered to be an investor when you make profit by buying and holding portfolios that may involve stocks, bonds, mutual funds, and other similar instruments. Investors improve the amount of money they may earn through reinvesting the profits that they have already earned, or even dividends from investments, to get additional stock shares.

Investors are people who are more concerned about the fundamental movements in the market, and how the companies they put their resources on are being managed. They are also the ones who make critical analysis on the potential of a company, because their resources are most probably to be locked in on a single product for a very long time. They are also the ones that are concerned about market falls of stocks, and they aim to determine if it is a long-term occurrence or not, so they can move their resources elsewhere. Investors would normally enjoy 10-15% return of investment in a year, but that would get better if the product or company that they invested on thrives.

Trading or Stocks Investment

Trading would require you to spend a considerable amount of money on stocks or commodities, but that does not necessarily mean that you would hold on to them for a long time. Trading is termed as such because it involves buying and selling based on the price movement of these items. Traders generate profit by seeking a 10% return each month, which they get by buying at a lower price then selling at a much higher price in the near future. While trading seems profitable, people who delve in this trade also experience losses when they sell “short” on certain markets to experience a relatively low return of investment on falling markets.

Traders often use certain tools to analyze their selling position in the market, such as moving averages, to determine the best trading setup to use. Some brokerages provide great tools to support both active traders and investors, if you are an active one you might be interested in checking this Optionsxpress review. Their selling style are also best determined by the amount of time that they hold stocks, commodities, and other instruments that they purchase, for them to sell these for better profit. Position traders are those who hold on to their goods for months or years, while swing traders are those who would hold their positions for only a few days or weeks. There are also more frequent traders, such as day traders, who would only hold and sell their commodities within the day, and scalp traders, who would only hold their goods within minutes. The selling style would largely depend on one’s ability to predict risks, accompanied with the attitude they have towards their movable investment.

Conclusion

Investing is most probably for you if you want to have a more lucrative profit by waiting out a certain company to grow, but if you are the kind of person that would rather make smaller amount of money but in quick successions, you may want to make a living instead on buying and selling stocks. The type of investment that you would do would largely depend on your needs and personality – if you like to think about how relaxing your retirement is, you may want to start building empires through large investments, but if you want to make the most killing now, trading is probably for you.

How do Binary Options Work?

Trading in the binary options market is one of the ways you can trade and investment different assets. Binary options provide traders and investors a variety of benefits that can help them earn a hefty return.

How do binary options work?

Binary options provide traders with a fixed return when a payout occurs, but it can also yield nothing once the trading day comes to a close. There are two distinct types of binary options, the asset or nothing option or the cash or nothing option. The asset or nothing binary option yields a return that is equivalent to the value of the security or asset purchased, while a cash or nothing binary option yields a fixed amount of money once the option or asset purchased expires. Trading in the binary options market will lead to only two possible results, a payout (in cash or assets) or nothing. A binary option is also known as digital option, fixed return option, or all or nothing option.

Trading in binary options is quite simple. The potential return that a binary option yields is already determined before the trading begins or before a purchase is done. Binary options can be purchased in either direction of a trade by purchasing a put/down or call/up option. Binary options have a definite expiry time that can be as short as 60 seconds or at the end of a trading day. In a binary option trade market, if a trader thinks that the market will rise, the trader can make a ‘call’.

On the other hand, if the trader thinks that the market will sink, the trader can purchase a ‘put’. Traders in the binary les options market rely on the proper prognosis of the market. If a trader makes the proper prognosis he or she will get a fixed return, and if the prognosis is incorrect, he or she will also lose a fixed amount or everything. For example, if you invest $90 on Microsoft stocks’ growth, if the stock gains one point, you will be guaranteed a payout of more than 85%. On the other hand, you will also lose more than 85% of your investment if the stock you purchased loses a point or more.

What are the benefits of trading in binary options markets?

There are quite a few benefits in investing in binary options. Here are some of the benefits you can get from investing in binary options:

  1. There is less risk when you invest in the binary options market. A trader investing in the binary options market will have prior knowledge about the potential yield and risk before starting the trading day. A trader can always adjust the amount of money invested if the return is too small or if the risks are too great.
  2. Binary options also provide high payouts, if a trader plays his or her cards correctly. If a trader makes the correct prognosis about the market, he or she can get a yield of more than 85% of the initial investment.
  3. A binary option can be traded daily or even hourly. The short time trading of binary options allows traders to choose the expiry time of the assets or options they purchase. A trader can choose at the end of the hour, end of the trading day, or end of the week.
  4. The low capital requirements of binary options allow traders to start at $25. The low investment capital allows even newbie stock traders to invest in the binary options market.
  5. Traders in the binary options market have access to multiple asset classes in various markets around the world. A trader can access these assets as long as a market is open anywhere in the world.

Set your Mind in the Right Direction to Ace your Next Job Interview

Do you agree that doing the grind for a job interview can be exhaustive especially if you’ve done it for quite a while with no promising results? It’s easy to get discouraged after just a few of that. Oftentimes you tend to blame yourself for something you believe you are doing wrong. Then again, you know you can’t stop going for an interview because that’s the only way to get a job.

Set your mind straight

The right mindset is just what you need. You’ve got to learn how to lift yourself up even if you feel like nothing is happening. Look for inspiration and focus on that. For instance, think of the many challenges you once had in your career and how you overcame that. These thoughts would help you encourage or convince your interviewer how well you can do the same in their company once hired. Another is focusing on the reward of getting the job or that promise of higher salary.

Believe in yourself

Unless you feel this way about yourself you won’t have the guts to apply for the best jobs out there. You’ll be surprised that some hiring managers hire applicants even if they are short of skills for the job because they show the enthusiasm to learn on board and show a great personality that will make him a good team player. So even if it’s true that you’re short of one or two skills, try anyway. Don’t think of it as a waste of your time because you can always learn from the experience, and experience is priceless.

Learn to fight your battle

Going for a job interview is a battle if you’d really think about it; otherwise why feel nervous or anxious every single time you’re seated in that interviewee chair. Knowing that this is so will force you to prepare for it and arm yourself with the right knowledge on how to pass it. That said, you should at least know:

  • The background of the company you are applying for
  • The “pain” of the company or department you will work in and highlight the “solution” you are going to contribute to solve the problem
  • The business that the company conducts. Knowing the target customer of the company will allow you contribute for more challenging work beyond what you just applied for – and the hiring manager will feel this about you

Practice! Practice! Practice!

By anticipating what your interviewer will ask and how you will answer will give you an advantage already. You can easily refer to your own collective experience for these. Nothing frustrates the interviewer more than an applicant who came in for interview unprepared. A job interview is time consuming to him as much as it is to you, so helping him save time by giving the right answers to his questions may just earn you 5 stars in his card.

Display a sense of professionalism

Unless you’re an individual with a hyperactive personality you would need to keep your body and yes, tongue language too, in check. Be professional. Dress up well showing less skin as much as possible, light fragrance only, hair neatly combed, no tapping fingers on the table, no chair swiveling, no too much leaning forward that show a sign of desperation and the maintain the classic eye contact. Avoid being too casual with your interviewer even if he is to you; sometimes thus is just their way of making you feel comfortable. Always play safe with the words you speak and pause a little before each reply.

Remember to keep a good attitude with a smile. This may somehow provide an air of mystery to your interviewer, and who knows, you might just get that job!