PMTG-Finance

World Finance

Author: Michael Widianto Page 1 of 57

What is a Financial Investor?

What is a Financial Investor?

Put quite simply, a financial investor is a person who invests some initial capital in the hopes of gaining a return on this money over time. Such investments could be incredibly simple, such as buying a certificate of deposit for 100 dollars and getting paid back 105 dollars in a year. Investments could also be much more complex, such as investing in an old, broken down house, and putting some time and effort into the house and selling (or flipping) the house for a lot more money. Both these ventures require financial investors to make them happen.

Am astute investor in modern terms is usually a person with high levels of education, such as graduate school or other intense training. These type of financial investors generally is thought of as a person who works on wall street for a large investment company, although this is not always the case.

In reality, a financial investor is a very broad term. From wall street guru’s to personal lenders, almost everyone can become a good investor. Some people start out very small, investing a little bit of money into several stocks and bonds, while others take on much more risky ventures, such as giving an entrepreneur a large amount of startup money. Generally, a financial investors return (how much money they make on their initial investment) is directly proportional to the amount of risk they are willing to take.

We have quickly taken a look at what constitutes a person who seeks to earn money through the correct usage of their existing capital. This can be accomplished through stocks, real estate and other forms of investing. Of course we haven’t covered everything related to financial investments. But we have touched on the ones you should know to begin making better financial decisions. And if these decisions are tempered with a little experience you should be able to make them work for you.… READ MORE ...

To Become A Successful Technical Analyst, One Has To Study It For A Long Time

To Become A Successful Technical Analyst, One Has To Study It For A Long Time

I don’t understand why on earth anyone that has followed a couple of tutorials, read one or two books, could proclaim themselves as “technical analysis experts”. If you compare to any other profession, you will see that most requires at least a five-year course in order to be recognized, by society, that you are a professional at what you have studied and that you are now, able to make money out of it.

Many neophytes get in the market expecting to make a killing in the first year of their technical analysis career. Then, when they don’t duplicate their money in their first three months, they put their tail between their legs and run for the hills. Technical analysis work as any other job or profession in the world: you need to give it some time to really see some good results.

The problem is that you do not have a set course that is mandatory for you to take in order to be able to use technical analysis to bet on the market. If you want, you could read what a spinning top candle formation is and then go out there and bet all your money on that with the help of your home broker. The internet makes it far too easy to get in and get out of the market at any time. While this could an amazing and good fact, sometimes and for the majority of the population, this actually acts as a hindrance rather than an aid.

Don’t believe me? Just take a lot at the statistics and see how many people are able to profit CONSISTENTLY for a long time. I don’t believe it gets even at 10%. 5% seems like a more real figure. Sure you can earn now and then, make a killing tomorrow, but the problem for the majority is that they win only to lose it few days later. Winning consistently is the key and there are not many people who are able to do that.… READ MORE ...

Intraday Vs. Interday Trading: Everything You Should Know

Intraday Vs. Interday Trading: Everything You Should Know

Thousands of traders seek to make profits in the stock market every day. But stock trading is not everyone’s cup of tea, and losing money seems to be a lot easier than booking profits. So, investors apply intraday and interday trading strategies to make the best use of their resources.

A trading strategy is chosen on the basis of the investor’s risk appetite and investment horizon. The choice also depends on the type of security the investor wants to deal with. Each of these trading strategies has different rules.

Intraday Vs. Interday Trading: Everything You Should Know

Basics of intraday trading and interday trading

Intraday trading relates to trades being settled in a single trading day. In contrast, interday trading involves trading that takes place over more than a single day. Both these trading techniques are short-term trading strategies. So, they focus on short-term trades.

However, the two strategies are distinguished by their respective approaches towards trading, time horizons, and risk profiles.

Before you start trading, it is essential to open a trading account with a broker like Kotak Securities. Now, you can decide on your goal and set the trading strategy accordingly.

Differences between intraday and interday trading

In case of intraday trades, the trading horizon is much shorter and usually lasts a couple of hours. Here, investors buy securities after the market opens and square off the position before it closes. For this reason, it is popularly known as day trading.

Interday trading has a longer trading horizon. The securities are held overnight and even for a few days. Traders following this strategy select stocks based on fundamental analysis.

Facts to consider

Intraday trading is widely chosen by investors looking to make quick profits from small fluctuations in stock prices. They make profits on opening and closing stock prices. The accessibility of margin loans makes it a lucrative trading strategy. A day trader can easily fetch up to 10x leverage compared to an interday trader.

Benefits of intraday trading

  • By using margin loans, you can purchase shares without paying the full price.
  • Brokerage charges are lower for intraday trades as opposed to interday trading.
  • Intraday trading allows you to short-sell stocks and earn profits without owning them.

Drawbacks of intraday trading

  • Whether the company performs well or not, you should sell the shares within the same trading day.
  • You need to closely monitor the market as well the company you have invested in. Any event-driven factors can impact the stock price.  
  • To make substantial earnings, you need to purchase a large volume of shares.

Tailpiece

Are you looking to reap profits as quickly as possible? In that case, it’s advisable to go for intraday trading. The goal is to gain a little on each trade and then compound those over time. On the other hand, interday trading is about more than analysing the movement of stock prices. It requires a lot of research as well as fundamental analysis.  So, this type of trading would be suitable for you if you have the patience to accrue … READ MORE ...

Asset Finance: Deals With Elusive Assets

Asset Finance: Deals With Elusive Assets

As the ever increase in competition and the scrupulous mechanism of every organization, every company needs regular amount of flow regarding capital and cash that ensures all the mechanism and related details are running smoothly or not. In any type of business, competitor always looks forwards to get a chance to become the leader in that race. That’s why it becomes very important to make sure about the adequate cash and capital ready when ever there is a need to use them.

Capitals may be required for many reasons like buying commercials vehicles, machinery, used and new equipments and some other important things. It’s not possible for any business owner to extract money every time from the company’s account as it directly affects your working capital. That’s the main reason why asset finance comes into role. Asset finance is very useful as it helps in raising the amount of money for buying the assets and the money can be returned back to the finance company through several installments over a contracted period of time.

Hire purchases, lease purchases, finance leases and operating leases comes under asset finance and they are very common and used by most of the business owner to run their capital amount smoothly. Asset purchase is the most common form of this. Hire purchase is very useful as it permits the owner for preparing a contract than deposit the contracted percentage of money and then the monthly hire fee for using the equipment. Once the amount has been repaid by you than there is an option for you whether you choose the equipment or return back it to lender. Lease purchase is almost similar to hire purchase but with a slight difference that you can pay money in several installments rather than paying the upfront percentage that is available in the hire purchase.

Another category of asset finance is financial lease, in this the finance company is the owner of the asset. You can take the asset form the finance company on rent for a particular period of time. In this you don’t have the rights to sell your asset as you are not the owner of the asset, in other word means you can’t sell your asset without the prior permission of the company as you are not the owner of the asset. In all Asset Finance plays a very imperative role and it is totally independent of the size of the company.… READ MORE ...

Financial assets and benefits

Financial assets and benefits

What is Asset Finance? Basically it is a financial arrangement with which you have the power to buy a company, a new car, used equipment, machinery or other office equipment. You can get this loan quickly because the process is not as long as other loans have. Many companies now use such loans to expand their infrastructure and this adds more choices to the growing popularity of affordable financial solutions.

Some of the main benefits of using Asset Finance are as follows:

1. It helps in saving current capital. Buying new equipment definitely requires a massive capital investment which sometimes prevents company owners from investing in other projects. But if you save less rent than can be used in several other projects or in other activities. This will definitely direct the company to adopt new businesses quickly and provide new opportunities.

2. It also helps open up many ways to respond to opportunities. It makes you stand during unwanted circumstances. This is very valuable to businesses, especially so they need easy financing solutions to keep pace with technological developments.

3. With asset financing you can easily manage your budget. It also helps facilitate regular payments for a fixed period, which makes you relatively free from other inflationary pressures or changes in interest rates. Therefore it becomes easier for companies to plan their budgets and capital.

4. It also plays an important role in maintaining existing credit. It also helps you in maintaining other existing credit from banks or other financial institutions. Another major benefit is that if necessary you can use other banking services simultaneously.

5. Another benefit of this is the flexible nature which is very useful. In addition to each agreement there are careful arrangements given to lenders’ requirements.

6. There is no need to deposit anything with the loan. To request such a loan there are no hard and fast rules so that the borrower only needs to make regular payments to repay the loan under a certain tenure.

Financial assets are the best way to handle financial situations. You can use according to your needs as needed to improve your business. The following are the types of asset financing: a. Rent Buy b. Rent Buy c. Lease Contract d. Financial Leases e. Operational Leases

Overall, there are many benefits to using asset financing because this is an opportunity to finance your business. You can save a lot of capital that you can use in several other projects.… READ MORE ...

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