Category Archives: Investment Ideas - Page 2

Terms You’ll Need To Know Before You Start Investing

While many people are interested in investing, there are a variety of things that can stop them from doing so. One of the more notable of these is the terminology that’s used in the niche that can often make it quite confusing.

Though the majority of experienced investors will consider many terms somewhat basic, they can be overwhelming for many people who are new to the niche. As such, they can pose somewhat of a barrier to entry for many of us, although this doesn’t have to be true.

While there are quite a significant number of things that you’ll want to be aware of before investing, there are a few basic terms that you should be mindful of. By doing so, you’ll then be able to start building the foundation for your future investment success.

Below I will try to break down all the different terms you will need to know before you start investing, I understand this can be a difficult task so I recommed you take a look at great investment resources at DrWealth.

What Are Gap Up Stocks?

The term gap up stocks may seem confusing to many people; the act itself is much simpler than you might suggest. Gap up stocks refers to stocks that open at a higher level than they did on the previous day of trading, with this increase being referred to as a gap up.

Related to this is the term: full gap up. This is where a stock opens noticeably higher than it did on the previous day. As you may expect, there’s also the term partial gap up. This is used when a stock opens marginally higher than it did in the previous trading day.

There can be quite a significant number of things that affect this and can often make the process seem overwhelming. Should there be a variety of gap up stocks, then this is typically an indication of a bull market.

What Is A Bull Market?

Speaking of a bull market, this is a term that’s used a significant number of times when referring to the stock market, although the majority of newcomers may not know what this means. Typically, this refers to a market where prices are either rising or expected to rise.

Since prices can fluctuate regularly, the term is usually used for when stock prices rise for a large amount of time. In many cases, bull markets can extend for months or even years. Alongside this, it’s typically only used when a large number of stocks are rising.

What Is A Bear Market?

A bear market is something related to a bull market, although it means the opposite. However, this doesn’t mean that it will be used anytime stock prices fall. In contrast, it’s typically used to refer to a market where the stocks have fallen 20% or more.

This is usually accompanied by widespread pessimism in the market, although whether the drop comes first or second can vary. Perhaps the most notable bear market in recent memory is the Great Recession, where stocks dropped and remained low for 17 months, between 2007 and 2009.

What Is Volatility?

Volatility is something that can play quite a significant role in the stock market, though it’s something that many people may be confused by. This is the statistical measure of a stock’s or security’s dispersion of returns. Typically, the higher the volatility, then the riskier the stocks.

While these can often pay out large dividends, it’s recommended that new investors avoid them when they first start in the niche.

What Is Leverage?

The term leverage is something that many people may be familiar with, although its definition can vary somewhat depending on where it’s being used. In stocks, it’s used to refer to the ratio of a broker’s credit to a trader’s funds, making it a borrowed asset that’s typically used to increase potential returns.

In many cases, this leverage is several times larger than the initial invested capital.

What Is Diversification?

Diversification is the process of reducing the overall risk of your investment portfolio by spreading your investments across different asset classes, industries, and geographic regions. This involves making different kinds of analyses and understanding the most favourable choices to balance out the risks involved in investing your money.

When you set out to build a strong and well-planned portfolio, you need to factor in the long and short term, as well as growth and returns. For stable long-term growth, you could consider finding some discount properties in Toronto, or a place of your choice. Purchasing reasonably priced properties could better enable you to create a source of rental income through tenant rent and lease, but will also serve as leverage against inflation.

You should also seek to formulate a collection of short-term assets that bring you high returns. These include stocks, options, futures, and more that tend to have a high-risk factor, and should be analysed well to make profitable and well-informed decisions.

What Is A Spread?

While the term spread can have a variety of meanings in investing, there are a few definitions that are much more common than others. The most notable of these is the difference between two prices, with this typically referring to the asking amount of a stock and a bid, with this often being called the bid-ask spread.

While there is a variety of other things that you’ll need to know before investing, it can be essential to know the basics before doing so. This will ensure that you’re able to properly research and understand the stocks that are on offer before you invest.

Peer to Peer Investing

In the past decade, many forms of peer to peer investing have developed in countries around the world. Among these various forms of investing, peer to peer loans are the most common. This industry has attracted hundreds of thousands of investors and billions of dollars, making it one of the fastest growing investment options. Read on to find out more about the pros and cons of this investment opportunity, as well as how to develop a good lending club strategy Read more »

5 Ways to Save Money on Your New Home Buying Process

The purchase of a home is the single largest financial expenditure most Americans make. This is why it’s important you only go to the best realtors to make sure you’re getting the best property for your money. You should go to RTT Home Group for everything in Grayhawk, do your research into all the local real estate agents, and make sure the realtor you hire has your best intentions in mind. Because, at the end of the day, you’re the one living in this new house for decades to come so it’s got to be right for you.

Along with the size of the transaction, there are a whole host of other fees and costs associated with buying a home. These costs can be burdensome for new and old homeowners alike, and if you are on the line for getting approved for a mortgage they can push your application over the lending standard limit. Not qualifying for your loan due to added costs may cause you to lose your dream home. Luckily there are several methods you can use to save money on your new home buying process. Read more »

Keeping Your Memories Alive with Mixbook

Mixbook is a robust design tool. It aids in creating fully customized photo products such as cards, books, wall canvases, and calendars. The free online editor of Mixbook is easy to use and gives you the opportunity to have an unlimited option of templates.

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How to finance a real estate development

Real estate developments can be a great way to create additional wealth. They offer long-term revenue and can be a more stable way of investing money when compared to stocks and shares. With the help of professionals like Lincoln Frost, you will be able to successfully navigate the world of real estate development and everything that comes with it. However, not many people have the necessary capital to be able to complete a real estate development – so how do you finance a real estate development? Read more »

Not all Diamonds Are Created Equal: 5 Things To Know Before Your Big Purchase

Diamonds are in high demand the world over – who doesn’t like a little bling? Their value comes from the tightly controlled diamond supply the world over. As an investment, they have advantages too – the value stays constant or appreciates, and they are highly portable.

But, before you start buying diamonds, you need to know a few important details about them. If you don’t, you could end up getting a very bad deal. In fact, when it comes to using diamonds as an investment vehicle unless you are an expert on the subject, it would be better to invest in real estate. Read more »

Would Bridging Finance be an Option for me and my Property Chain?

With the economic climate being what it is, only a lucky few can say, with a sigh of relief, that they’ve sold their old property and moved into their dream home. With mortgage terms and credit checks stricter than they’ve ever been, all it could take is one bad mortgage application for the whole chain to collapse.

Due to the problems that can arise due to mortgages not being approved or the amount you need being declined, some companies have started to offer short term bridging loans to allow you to move forward with buying your home.

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Top Reasons to Invest in Real Estate Right Now

What is Real Estate?

In common language, a property consisting of land and buildings is termed as real estate. Along with the land and the buildings; real estate also includes the natural resources present on that very property. Read more »