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Factor That Impact Credit Score

Factor That Impact Credit Score

Credit Usage

This is known by another name, credit utilization ratio which plays an important role in credit score calculation. By maintaining the ratio less than 30% you can keep your credit score up to the mark. Keep your trading skills up to mark and learn more about it. We can say that the balance kept should be as low as possible on the credit card since it will be good for the credit score. Credit usage is will have a notable impact on the credit score as FICO makes use of this to decide how responsibly you make use of credit.

If you want to keep your credit usage low you can do the following things:

  • Keep the balance in the credit card low.
  • In a month make more than one payments.
  • Keep your credit limit high.

Derogatory Marks

The list of derogatory marks is as follows:

  • Tax Liens
  • Collections
  • Bankruptcies
  • Debt settlement
  • Foreclosures
  • The judgment that is due in civil court regarding your report.

All the above-mentioned marks will impact in a negative manner on the credit score and they will stay on the report for seven year or 10 years and sometimes more than that. It is of high importance that everyone has a check of their credit report at least every year once.

It was found that one in every five customers had a fault on either one or multiple credit report according to the study done in 2012 by the Federal Trade Commission. Suppose you notice that there is some error or there is something wrong with your credit report you can hire people from credit repair services who will help in resolving the issue.

One can have a check on their credit report through a website that is free known as Annual Credit Report and here they need to have a check at least once every year on the following things:

  • Equifax credit report
  • TransUnion credit report
  • Experian credit report

There is also a credit monitoring service that you can purchase which will provide assistance and help the customers in protecting their identity and solve disputes.

Length of Credit History

It is important to have some sort of credit history if one wants to have a credit score. Having a credit history that is short will be unpleasant to the credit score, however, the only thing you can do is wait as there is no other way. If you want a good credit score, having a credit of five years to six years is advised, but if you have a credit of more than seven years it is outstanding.

Blockchain simplified

Blockchain simplified

Bitcoin is gaining popularity lately everyone from barber to trader of the stock market is talking about blockchain. Although this article is not about how to make money using Bitcoin we will talk about the underlying technology that helped Bitcoin to reach the top of its popularity and how the technology will be useful in the coming days.

Looking back into the history

In October 2008 a white paper was released by a person named Satoshi Nakamoto explaining his approach on sending money directly from the sender to the receiver without involving any financial institution. This paper gave birth to the concept – Bitcoin. Bitcoin uses some cryptographic concept as its underlying principle so the name cryptocurrency evolved. The financial transaction is the only purpose why Bitcoin was created but the researchers decided to harvest the underlying technology to build robust technology. This underlying technology was named as “Blockchain”.

A real-world analogy of blockchain

Let us assume that you live in a city that has the capacity to park 200 cars at a time. The gate of the parking space opens only when the cars move in or out. Now you may think why to park your car in this parking space because it will provide:

  • Security is the prime reason, your car will be safe from thieves
  • Price is another reason, as the maintenance cost of the parking space will be borne by the owner of the space.
  • Centralized: as all the cars in the town are in the same building so can call it centralized.

Now lets the do some modifications to the scenario and assume that in the city there are 200 houses ad each house has two parking spaces and people decides to rent out the extra space, this way it will solve the problem if there are more than two hundred cars. Now let us analyze the situation.

  • Price: they can rent out the extra space the cost of that extra space will be low compared to big parking space.
  • Security: each car will be secured as they will be locked separately.
  • Decentralized: compare to the above model, here the cars will be distributed all over the city hence decentralized.

The above analogy provides the simplest model to understand the technical infrastructure of the blockchain.

Parking model to technical model

The above example gives a very basic idea about the blockchain in real-world language. Now let us match the parking components to the actual technical model.

  • The big multiple car parking spaces are the centralized system.
  • Data and application are the cars.
  • Distributed car parking is the decentralized system.

The blockchain idea is simplified to make it easy to understand for the beginners. learn more about it to know more.

 

 

 

Crypto risk and gain

Crypto risk and gain

Over the last few years market has given a lucrative return on investment on Cryptocurrencies like Bitcoin, Ethereum, ripple etc.  The amateur investors became millionaire overt night has created it a center of attraction for the market enthusiast. The cryptocurrency has the immense possibility to grow not only as an investment medium but also it can become an alternative to the traditional currencies.

The government of various countries has started to accept it as a legal tender, this has also increased the interest among the common people. The acceptance of bitcoin by the various big business house has also added to its boom. The growth of digital currencies was no path of roses but it has faced many ups and downs, there have been more losses than gains in this journey to the success. the volatility of the market can be understood from this growth curve. For instance bitcoin, the king of the market was leading in $20,000 last December but its value came down to $7000 at the beginning of the February this year, it is not the story of Bitcoin alone but the scenario is similar for other Cryptocurrencies as well.

Seeing this downward trend in the market any of the leading banks have restricted their customers from using credit cards too but Cryptocurrencies.  Many developing nations are framing strict laws to the use of Cryptocurrencies. With every new invention comes to risk and reward so one should be very careful before accepting this new technology into the business.

Accepting digital currencies into the business gives many advantages including lesser transaction fees, fewer chances of fraud, more transparency etc.  But it adds some challenges that need to be solved before adding it to the business. The volatility of the market is a big concern for the business to accept it as a mode of payment. But before accepting it as a payment mode one should comply with KYC and Anti Money Laundering regulations.

The technologies used behind these Cryptocurrencies like a private key or smart contract have the chances of getting hacked, in January this one of the big exchange got hacked and more than $500 million cryptocurrencies got stolen. Despite the hacking risk people are still interested in trading these Cryptocurrencies, so the companies want their customers to use hardware wallets and cold storage wallets for the safety and security of their funds. See this review for more information.

 

 

Stock Market Investment Strategies

Stock Market Investment Strategies

Markets are always based on predictions of the future. There have has been past records of great performances and poor shows that have bought someone up or put them down. Stock markets are volatile and even the latest crypto market is no less! They are much more competitive than the stock markets, more volatility.

If you are thinking of investing in crypto markets, then do so with automated pilot robotic systems, that will help you in executing trades without any knowledge or experience yet gives you good returns. Among the many existing, bitcoin trader looks good and genuine, legal too.

Well, here we give you some strategies to help you sail and invest in stock markets, with minimal losses, as there is not much robotic system here that gives you 90-95% returns.

Invest in value not price:

Yes, there is a lot of difference between price and value. Value is something that goes up over the period of time, while the price is something which keeps fluctuating. We often look to buy stocks and things that are cheaply available, while their price is what matters to us, we never bother about the effects it gives. The penny stocks that we call, might always give you bad returns. Because it’s just a penny, you tend to buy in bulk and later regret, while the whole lot fails.

Instead concentrate on businesses which are doing great, though their prices are high, they will have value anytime in the market. It’s advisable that you opt for those stocks, its ok if you can’t buy more, buy one at a time and invest for the longer term. Those stocks will give you handsome dividends and returns in the longer run.

Past and future needs time:

In markets, we analyze the past data and invest in the future of the stock. There is no present concept, we predict the future of the trade in the current time. So, these two quantities and qualities should be analyzed better and given due time.

You can’t predict future if you don’t have past, and without correct past data, the predictions won’t be right. Hence, it’s important that you source the data right, analyze and sort out data, and then predict. No matter what is the market scenario, a value company will sail through them, they have the foundation right and the path chosen is also right, along with good managerial operations and skills.

 

Tips To Be Financially Stable

Tips To Be Financially Stable

Each and everyone wants to be financially stable in many situations in life. To be stable, we have to be very careful while spending money and there are some tips to follow to be financially stable always. When we are stable financially, we can definitely lead our lives without any stress or burden in mind. Everyone has money in their hands, but keeping them and spending them in the right way matters. Let us take a closer look at those tips for the stability in this blog and we can also click Bitcoin Trader to get tips from the professionals.

  1. Budgeting:

Budgeting is the most important thing for the financial stability. We should know what money is coming in and what is going out of our wallet. We should be very careful while spending money and the budget will help us to know how much we have to spend on what things. The budget will not only help in our personal lives, it will make a huge difference in our business life.

  1. Don’t go for debts:

We should try to manage our funds wisely without going for any debts with the very high rate of interest. It is very difficult to pay the principal amount when the interest rate is high. This will make us get more tensed and finally, we will be in a worried condition thinking of the debts and how to repay it. So, it is better to avoid getting debts, instead of that we can reduce spending money on unwanted things. The debts we get will spoil our physical and mental strength. It will even spoil the relationship between the lender and the borrower.

  1. Save money for the future:

Savings is a very good habit of everyone from the child to the adults. So, always try to save money so that it will become a very huge amount and will help in future when an emergency occurs suddenly. The little amount we save will become a very big amount tomorrow.

  1. Setting a goal:

Goal setting is the major thing in life because once we set a goal for ourselves, we will definitely give our best to reach and achieve it. So, here to be stable financially, we can set a goal to work overtime and earn more money. That money will definitely help us in future when we are in an unstable condition.

Conclusion:

Thus concluding that the above tips will help us to be stable financial wise and we should have always tracked the amount we spend on a daily basis so that we can have a better idea about the future.

Points To Note While Choosing A Mutual Fund Scheme

Points To Note While Choosing A Mutual Fund Scheme

Everyone should invest their money earned in order to enjoy a secured future. A mutual fund is a good choice to invest your hard earned money. Today, there are thousands of mutual fund schemes available in the financial market and picking the right scheme can be quite mind-boggling.  Listed below are a few of the key points that one should know of before investing in the mutual funds.

Key points to take care

The objective of investment- Every scheme of mutual fund whether it is debt or equity has an investment objective.  The objective of investment helps the investors in deciding which asset class to choose and in what proportion. For instance, if your objective is long-term capital appreciation and you are willing to take up risk, then you should opt for mutual funds that are equity oriented. Likewise, if at all you don’t like to take up much risk, then you can choose debt schemes.

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Fund performance- In order to analyze the performance of the mutual fund one should conduct a detailed study of its past performance. However, you need to keep in mind that past performance should not be kept as a single parameter in deciding the mutual fund scheme.

Expense ratio- Every institution incurs expenses, it is the same in the case of the mutual fund house. It also incurs expenses like management fees, administrative costs, etc to run the business. Percentage of assets which go towards the annual expenses is known as the expense ratio.  The expense ratio will be borne by the investors.  Costs are immediately incurred and get deducted, but the investor has to wait for years to earn the return on the investment. Hence, one should choose a scheme that has a low expense ratio when compared to others.

Transparency and investor service- The services offered by different mutual fund houses vary with each other. Some of the organizations are user-friendly when compared to others and they keep offering information from time to time. Hence you need to look for the mutual fund houses that adopt full disclosure norms. You would be confident in dealing with them as they are transparent in their dealings. It will help you in taking a wise investment decision.

Ingredients to a business plan

Ingredients to a business plan

Having a business? How’s It Working? Are you doing great, earning income above your expenses or as per your plan and expectation?

Well, every business owner dream of all the above, but unfortunately only a couple of them reach their goal and aim. Not all can achieve their goals, due to a lot of factors. There can be a problem in capital investments or liquidity needed to keep the business going, there can be employee shortage or payment problem that affects the employee performance or there can be business sales issues, or there can be even an issue in marketing.

But does all the business fail? If not, why the ones that fail, get there? What is the mistake that happens to bring the business down? Probably if you knew you can get it repaired, better late than never.

The aim of business for each one is to make it a source of income, nobody does it just for fun or spending free time, the motive would surely be to make money. Well, what if we said that you can also make money in your free time with crypto trading, using various online platforms, please check this out to know more about the platforms and the trading.

So, how can we repair the existing business? Making a better plan!! Yea, do you have a business plan? As we said, that many businesses fail and the reason is this!! Without a plan, things tend to fall apart, but the business needs to be a constant flow and a small stopping will surely push it against.

Here are few tips to make a good business plan that will work for you; the things which are a must in a business plan:

Summary of your business: this is the important part of your business. You need to give the summary of what are you here for, the company description, the kind of problems you solve as a business, the solution that you aim to provide and the path to it.

Description of the business: The idea of your business strategy, its future, and the industry impact.

Strategies: this one will need the way you run your business, your target group and your best performance in achieving the target.

Competitive analysis: this field requires you to provide the details of your strength and weakness and how you aim to target your competitors with your strength.

Design planning: all about the products or services you are here for, how and why and the budget part to be enclosed here.

Operations plan: how do you plan the business to function day in and out. And also, about your way of management. Well, we are sure, if you write down all of these, and go through when required you can reach heights.

Ways To Educationally Invest In Your Trading

There is a lot of fraud and swindles involved in the field of trading. However, some people are careful enough to identify and distinguish a fraudulent scenario from a non-fraudulent scenario but on the other hand, some people mistake a genuine trading tool to be a scam, for example, news related to QProfit System scam might mislead certain other people. Therefore, with the growing number of trading brokers, capital, software, and strategies, it is only wise to learn a few good tips to help you minimize your losses and increase your chances for a high-profit margin. Below are a few trading tips to keep in mind while trading online.

  1. Stay updated with the news – You do not have to necessarily read a newspaper or the financial times to know what is happening in the stock market. Your smartphones are a perfect little pocket-friendly newspaper that can keep you updated on what is trending and what is not. Moreover, the news is an excellent way to find out about government regulations, system hackings, price fluctuations, and another such related piece of information. However, news can also contribute to price rise. For example, if a company announces that it is going to incorporate cryptocurrencies into its business, then the value of cryptocurrencies can rise quickly. If you are aware of such news, then you could benefit from it by getting ahead of the market otherwise you are in for a loss. Hence, make it a habit to stay tuned to the fiscal
  2. Do a bit of technical analysis – It is not only profitable but also interesting to analyze past data and charts to identify certain trade patterns and understand profitable strategies. Although nothing is certain in the trading world, there are chances that history might repeat itself. Therefore, an understanding of historical data might be of an advantage if you are able to identify a pattern to predict future price movements.
  3. Time to brush up your metric skills – One important way of understanding what is happening in the trading world is to study metrics. If you are able to look through price movements, trading volume, and the current value of assets, then it is highly likely that you will be able to predict the next current value of the asset. Studying metrics will help you make informed decisions that are based on the present market conditions.
  4. Learn the art of trading in on margins – Another great way of increasing your profits is by trading on margins. For example, if you foresee a price shift, then borrowing capital to increase your anticipated profit is a wise decision. It is the most practical way to materialize your analytical predictions.

 

Understanding the types of orders in the trading

When you are a trader you would be placing orders in order to make the trade happen. Orders are placed either directly by the trader or by the brokers in cases of managed funds, or the mutual fund companies or by the trading bots like QProfit System. No matter who places the trade there are various types of orders that are placed.

1.      Market order

2.      Limit order

3.      Stop order

4.      Trailing stop order

Market order

This is the most common type of order and it also gets the name unrestricted order. It is the simplest types of orders where the trader places a request for the instrument to buy and the quantity of purchase. When the requested quantity of the assets is available the order would be executed at the price at that point in time. If the supply is less than the demand then the orders might take time to be executed.

Limit order

The method that is popularly called take profit order is one where a minimum price would be set for the broker to sell or buy an asset. The method mainly focuses on increasing the winning chances.

Stop orders

These could be stop-loss orders or stop limit orders. The maximum price level target is fixed. Order placement here happens after the price of the asset reaches a value beyond the set target. Stop loss orders are automatically placed if the asset price falls below a certain specified level. For those traders who wish to balance a stop order stop limit orders are favorable choices.

Trailing stop order

This again could be trailing stop loss or trailing stop limit orders. Trailing stop orders are where the traders would not just set the target amount but also a trailing amount close to each target.     Everyone wants to reduce the risks while also improving the chances of winning. For the trailing amount, there could be a fixed price or the trader can also choose to set a percentage value. When the stop loss or the stop limit events are triggered, there is the least possibility of making losses. In fact, trailing stop, orders are known to maximize the profit for the orders while also ensuring a good reduction in the losses.

 

For a trader to be successful it is important to understand the minor differences between each type of order and to know when to use each type. This would make the trader take better decisions.

Tips On How To Invest In An IPO

Even if you are an expert analyst you could still face a big challenge to know which a good IPO to invest into is. There are many risks involved in IPO investments and this makes them different from the regular stocks that are traded.

However, if you still decide to take the risk and invest in an IPO then take care to keep these important things in mind.

Research

It is tough to get information on companies that are about to go public. There are not many analysts that would be covering this company and thus there could be some crack here and there. Most of the companies will try to disclose every information in the prospectus still it is important to know that the prospectus is prepared by them and not by any third party.

Make sure that you research well on the internet about the company and its competitors. It finances, any news and past releases can help you decide. The information may be very scarce but it is your duty to learn as much as you can about the company. You may then come to know whether to or not to invest in the company. Check the source.

Check the brokers

Make sure to check who the underwriter of the company is. This is not a hard and fast rule but you could rely on the big banks to bring good companies to the market. If the company is being evaluated by a small broker then this should raise an alarm and you need to be cautious before making this investment.

Read the prospectus

Never ever skip reading the prospectus of the company. The prospectus could highlight a bit of the opportunity and the risks of the company. It would also highlight what it intends to do with the money that it has raised through an IPO.

If the money will be used to repay loans then you better not buy this IPO. However, if the company is going into expansion or research then this is a positive sign.

Overpromising and not being able to deliver are big mistakes that companies make. Thus you need to look out if the company is having an outlook that is over achievable.

Be skeptical when you want to plunge into the IPO market. There is lots of uncertainty when it comes to IPO investments because of very less information available. It is your duty to do thorough research before you buy an IPO.