Category Archives for Investing

Foreign Exchange Trading – Another New Investing Method

Another type of investing strategy. Forex trading or foreign exchange. If you don’t know this is currency trading. When one currency is traded against another for a certain time period, it is then traded back (at ideally a profit.)

FX trading

Forex trading is a relatively new investing medium. Although it has been around for a long period of time, the original amount of capital you would need to make a profit from trading currencies was very high. This meant that this investing technique wasn’t available unless you had £500,000+ to trade with, which 99% of people didn’t and hence it was a very unique and also frowned upon trading medium.

LeverageBut with the introduction of the internet and faster trading methods there was something that changed, this was the LEVERAGE that certain companies offered. You can see leverage explained here. Leverage essentially is brokers giving you 2/4/10x the amount you deposit into an account. The reason why brokers do this is they make money based on the spread of a currency pair. Similar to how you don’t actually get the trading price when you go on holiday, and when you come to “sell” your money back if you have any left over, you’ll know that you get a highly reduced rate. This is how brokerages make their money. And hence the more you “bet” against the spread the more money you will actually earn the broker and hence the more money they will give you to trade.

The Reason Why Leverage Works So Well

WIN WINBecause its potentially a win win – When the broker offers you 2/1 leverage for example, this means if you deposited £10,000 you could now trade with essentially £20,000. This means that if you make a profit on a percentage of your bankroll, that profit would be greater than if you simply traded with £10,000. (That’s a win for you.) and the broker will make more money because when you trade on a spread, regardless of whether it goes up or down the broker makes money from the spread difference (that’s their win) and hence the process benefits both parties.

But remember using leverage can work against you too, so until you are a experienced trader I would recommend staying to very low leverage, or even avoiding it altogether.

We have recently partnered with a number of companies, in the search to try and generate long term profits from forex. But it is the very early days for us so we have no solid profit yet and hence cannot recommend a process either way. We will be reporting on our progress in the coming months, strategies and systems we thought were useful, others which didn’t seem quite right, as well as everything inbetween. Remember that as with investing there are people looking to scam you. Be very careful when you are a beginner. We’ve found this beginner forex website amongst others, I think its a good place to start your fx journey. Best of luck and let us know how you do.

A New Type Of Investing – Amazon?

Amazon investing dataSo the title might be a bit confusing.

Amazon as a type of investing?

Are we talking about investing in Amazon the company? No.

What we are talking about is investing in their FBA platform with your own products. This is something that anyone can do, even if you never have looked into business or Amazon in the past. But there are 3 elements we recommend if you are to be successful in this industry:

  1. Capital – You must have $10,000+ to invest in this business model. If you don’t then you simply don’t have the capacity to scale this quick enough to generate a high ROI. If you do have this capital there is no reason why you can’t make 300% a year on SEMI autopilot (more on this in a second.)
  2. Knowledge – Ideally knowledge of a specific set of products or niche. For example if you are incredibly interested and knowledgeable about ski equipment or baseball or screw fittings, LEDS or ANYTHING. You just have to have more knowledge than most about a niche. This is the niche you will be going into.
  3. Contacts – As you will be outsourcing a lot of the tasks you will need contacts you trust. You will also need people around you that can do specific tasks related to the business.

The Basic Business Model

Step 1 – Find a product that you can sell on Amazon. This is extremely important and I could write 1000s of words on this process alone. But if you don’t know how to do it, you have 2 options 1.) You can pay someone to do it for you, or 2.) You can learn how to do it yourself. Remember this is a lot of work upfront but once you have your product set-up it is very passive income in the long run!

Step 2 – Create an Amazon account + legal/accounting stuff. I say to do this now as you don’t want to have to deal with this later in your business life. Sort all this stuff out now and you can just worry about your investment later on.

Step 3 – Listing the products and launch processes. As you probably already know Amazon is very competitive. Launching a new product is very expensive and difficult and if done incorrectly you will simply lose money. Here is where I highly recommend you hire an Amazon digital marketing consultant to do it for you. It might cost a few thousand dollars but it will save you upwards of hundreds of thousands in the long run!

Step 4 – Scale – Generate new products and scale the process!

That’s it!

Once set-up you will profit.

How To Start Investing With A Small Amount Of Money?

Many people give up the investing because they don’t have required funds. Contrary to popular belief, you don’t need thousands of dollars to start your investment. You can always start slowly, building your investments and profit. The important thing is to have good saving habits and to put some money aside every month. Along the way, you will be in a much better financial situation. Here are the 5 ways which can help you.

Cookie jar is a good approach

Saving and investing are two closely connected operations. If you want to invest some money, you either have to save it or already have it. If you think that saving takes long, then you are very wrong. If you haven’t tried this approach before, you can start by saving $10 every week. In a year you will have $500. Over the time you can increase this amount. The thing which is similar to a cookie jar is a bank account. Open a separate checking bank account and put your money there. You need to have a firm hand and avoid all temptations.

Sign in employer’s retirement plan

If you are running on a tight budget, a retirement plan may seem unachievable for you. But there is a way to enroll in a retirement plan. That would be a small amount; you won’t even feel it. For example, you can start by investing 1% of your salary into a retirement plan. Once you commit to this, you can increase this amount over the years.

Investing-moneyChoose investment software or good broker house

Most software based on a short inquiry you need to fill in make a decision how to invest your money. The most important thing here is to find a good and trustworthy software. People mostly choose this option because is cheaper. The software is a machine, and that’s the only downside of this, but they are usually very accurate. If you choose a broker house, you will be working with experienced brokers, which will give you a good insight.

Use low – initial investment mutual funds

It is perfect options for beginners; this gives you an opportunity to invest in stocks and bonds and single transactions. The only trouble of these funds is that minimum investment is between $500 and $5000. If you are a beginner, with limited funds, this option might be out of reach. But some companies will grant you investment if you commit to investing between $50 and $100 on a monthly level.