The competitive and cut-throat market requires us to be on our toes to increase our earnings. Saving our earnings is no longer the way of the common man. Traditional means of saving money provide for a meager increase in the earnings. Today people are looking out for smart ways to maximize the returns on their investments. The current financial market also provides a host of innovative products to choose from. Investors are in a better position to make more informed decisions as lot of information is available all over the internet regarding how and where to invest their hard-earned money by minimizing the risk and maximizing the returns.
The gradual change in investment ideas
Smart ways to grow money has gained more importance in the current scenario of rising inflation and limited resources available at the hands of the investor. All investors are constantly researching how best to utilize the surplus money in their hands to enhance the potential returns. Today the emphasis is to take calculated risks to achieve more returns. This has been a major change from the old school investment ideas where investors were more concerned about the security of the capital rather than the returns.
Where do I invest?
Even with the available information and modern means, it is a great deal to pick on the right type of investments. Even before looking at the various options in the market it is advisable that the investor has a fair idea about the market he is about to invest in and also the extent of risk he/she is ready to take.
- Stocks – This means of investment still continues to be one of the most favored among investors. The market has its own ups and downs but people who are willing to take up the risks are definitely rewarded. The risk of losing all the money is always there as the market is subject to a lot of volatility. The rewards are in favor of investors who make judicious decisions in tune with the tone of the market.
- Bullion Market – This seems to be from the old school but is a quite lucrative idea of investment and all the credit goes to the soaring prices in the international market. The yellow metal is not only famous with jewelers and consumers but also among the investors who are eager to profit the skyrocketing prices.
- Cryptocurrency Investments – Of late this mode of investment has been stealing all the limelight. A lot of investors are coming forward to invest in these digital assets. Many online platforms are providing attractive means of investing in this newfound currency. Bitcoin Trader is one such online trading platform for cryptocurrency investments. Look here for more detailed information on how to get rich the digital way.
Get Serious About Your Trading Career
If you trade with the notion that it is just a gamble and all that you have to be is lucky to make money in the stock market, then you are not on the right track. Trading is a game of probabilities where the wealth gets transferred from one hand to the other. And the one who has an upper hand is the one who understands what is going on in the market and knows when to enter and exit a particular trade.
Get the right education
You need to spend some time to educate yourself about trading before you invest capital in the stock market. You need to understand what your trading style is and which instrument would you want to trade. You may be comfortable as a day trader where you look for small and quick gains. Else you may be an investor who stays invested in the market for a long time and aims for substantial gains. You need to have a clear understanding of this to start trading.
A Bitcoin Trader is the one who trades in cryptocurrencies. A stock trader is the one who buys and sells shares. A commodity trader trades in agricultural and non-agricultural commodities and a Forex trader trades in currencies. There are many other instruments that you can trade-in. The idea is to analyze which instrument you are comfortable trading in.
There are a number of books on theories about how to trade and the books also discuss some trading strategies. You need to be acquainted with these to invest your capital and start to trade.
Choosing a trading strategy
You will first have to develop a trading strategy that is sound and tested. The strategy should let you take advantage of volatility in the stock market. Pay close attention to the risk that you take on each trade. You should not jump into the strategy before do some backtesting and try it out for a few months using a demo account before you play this strategy with real money.
Set a year’s income aide before you start trading
Before you start to trade set aside at least one year of your income. You will need extra capital to trade with. The income that you have saved is for paying your monthly bills and to meet your living expenses. When you have this cushion it gives you peace of mind when you trade and you thus do not trade under pressure. You do not have to aim to make money in the market to pay your monthly bills. This lets you trade with diligence and you do not take any forced trades.
The Amplification of Business using Apps.
The latest advancements in technology and communication have definitely made businesses more viable and customer-centric. From 24/7 customer support to improved after-sales services are all part of the technological revolution. This has brought businesses closer to the customers and has also helped to reduce the ambiguity in the minds of consumers regarding a product or service. Internet has all the answers to the queries and concerns of the consumers. They can easily weigh the pros and cons of products using the internet before investing their money. Social media marketing is also gaining more importance as smart phones are becoming an indispensable part of our lives.
Businesses making hay while the internet shines brightly.
Businesses have already started making use of the numerous benefits of the advancements in the speed and access of the internet. Smartphones have become a basic necessity of life. From getting your favorite food to buying the most suitable home, we have apps for all the needs of an average human. We perhaps cannot think of going about our daily routines without the help of our phones or the internet. Apps are now easily available and can be modified to suit the varied needs of the businesses. These apps are also used as a branding tool to instill the brand image in the consumer’s mind by way of using catchy logos and slogans.
Apps are a great way of connecting and engaging with consumers. A good business always tries to keep in touch with the consumers and build a solid rapport to strengthen its prospects. Regular updates and interaction with existing and new consumers are possible by using the apps. They are probably the most convenient and cost-effective way of building a strong customer base provided the business offers good quality goods and services.
Innovation is also another key feature that will help in creating an everlasting association between the end-users and the business. In the world where there is an end number of alternatives and fierce competition, smart professionals will think of ways to innovate by providing additional services by taking into account the tastes and preferences of the target market. This is usually done by studying the buying preferences and the online purchases and activity of the users. Apps are definitely the best way to study the user’s consumption pattern.
We also have apps to make the work of trading investments easy and profitable. Bitcoin Trader is one such online trading platform that assures good return to the investors. Try this web-site to understand how investors are getting rich by trading cryptocurrencies.
Short Selling Stocks May Not Be For The Weak Hearted Traders
Short selling is a technique that is used by the advanced stock traders. The aim of the trader is to look for stocks that are not doing well in the market. This thus goes contrary to what is taught in the textbooks which are to look for stocks to buy that look promising to give returns in the future.
The short seller will look for the stocks that he wishes to sell. He will sell the stock that he thinks will fall in price in the future. The short seller basically sells the stocks that he does not own. When the price of the stock drops in value as he had predicted then he buys back the stocks and the difference between his sell price and buy price is his profit. Read this explanation to know how to short sell in Bitcoin futures.
Short selling a stock in the market
Suppose you think that the price of stock “ABC” is going to fall in the future. You thus sell short its stocks in the market. Your broker needs you to maintain a margin amount that is used to meet the requirements of deposit. The broker then sells your desired quantity of stocks ABC out of his own inventory. He may also borrow the shares from another broker or customer.
The broker needs you to keep the margin so that the original owner of stocks ABC share is protected. You will not earn any interest on this money. Also if the stock that you have short sold declares a dividend then the dividend amount does not come to you but to the owner of the stock.
Risks involved in short selling stocks
If you do not control the short sale of the stocks and the price of the stock rises dramatically then the broker with either force you to put more money into your account or he will forcibly buy the stock without taking your consent.
If the price of the stock rises in value then you can lose a lot of money. Without the broker, it is possible that you may end up losing unlimited money. If many short sellers are covering up their position in that particular stock then the stock’s price will go even higher. This is what is known as short squeeze.
A short squeeze is also possible when the traders who own the stocktake the stock from the margin to the cash account. This reduces the number of stocks that are available for the borrower and this lets the brokers buy the shares that the account holder has shorted. The expense is borne by the account holder.
Short Selling – The Risks And How To Select Stocks To Short Sell
Short selling in the
market is not a strategy that new investors should follow. Many would tell you
that short selling is not investing but speculation. It is not a secret to
making easy money because the truth is that there is no easy money in the stock
The short-selling strategy is used to get quick profits from the market. However, it is also a high-risk strategy. The idea of borrowing stocks from someone to earn money comes with huge profits but also the potential for huge losses. Here are some of the risks that are involved.
- If the stock is not easy to borrow then you will have to pay interest in order to borrow the stock from someone.
- Short selling is a strategy where the trader bets against the history of the market which is in an uptrend.
- There is no clear
way to predict when the stock prices will fall. The timing has to be perfect to
know when to short the stocks. Unfortunately, no one knows this exact timing.
Long term investors buy the stock and they can wait for days for the stock
prices to rise. This is not a luxury that the short traders enjoy.
How to pick up stocks to short?
Here are a few reasons why you should not pick up stock to short in the market.
- An absurd valuation of any company is not a good enough reason to short the stock.
- Do not short on stocks that have a strong movement upwards.
- Do not wait till the price of the shorted stock goes to zero. If a stock gets delisted then it gets very hard for you to cover your short trade.
Some signs that let you take a hint that a particular company stocks can be shorted are if you see bad management, a weak accounting, a weak balance sheet and other negative news about a company. You need to have a strong point as to why to short the stock which should be justified against all those who think that they should be a buyer in that particular stock. Use this link to short Bitcoin futures and make money.
Once you are comfortable trading in the stock market only then should you enter into the short selling strategy. A best way to figure out when to short stocks is to read the technical charts. Look at stocks that are close to their resistance levels and this is where you can short the stocks that are in a long term downtrend.
Averaging Stocks – Is It A Good Or A Bad Strategy?
Averaging the buy price of the stock is a strategy that is commonly used. In this method you lower the average cost of the stocks that has dropped in price. The question that now needs to be addressed is whether this is a good strategy or not? The answer to this question is based on many factors.
Good or a bad strategy?
You buy the stocks at say 100 and then when the stock price reduces to 80 you buy the stocks again. This lets you average the buy price of the stock. If the price of the stock rebounds after you bought it for 80 then this was a good strategy. However, if the stock prices continue to fall then you will have to keep averaging the price and eventually may have to take a loss on this trade. This gets us back to the same question on whether averaging the buy price of the stock is a good or a bad strategy? To answer this you need to know whether you are investing in a stock or in a company.
Investing in a Stock
When you are investing in stock then you need to look for buy and sell signals based on various indicators. You want to make money just on the trade and the fundamentals of the company do not bother you. All that you are concerned about is any news or any economic changes that could affect the stock price of the company.
You may not know a lot about the company whose stocks you have purchased. Thus you are not aware of whether the drop in the price is temporary or because of some serious condition. The best way to invest in stocks is to cut your losses and have a percentage below which you will stop averaging. This should not be more than 10%. When the price of the stock falls below 10% when you sell the stock and move to invest in some other stock. Check out this best site to learn how to average when trading Bitcoins. However you need to be very strict with managing risk.
Investing in a Company
If you are investing in a company and not in stock then you know what are the fundamentals of the firm and how it is performing. You are aware of whether the drop in the stock price is temporary or permanent.
If you think that the company is a good buy and the drop in price gives you an opportunity to buy more and average your buy price then it makes sense to accumulate more of the stocks at the lower prices.
However, take care to understand that you may not know everything about the company if you are a retail investor. If you see heavy selling in the company then this could be because of some information that you are not aware of.
ABOUT BITCOIN FUTURES
The existence of crypto currencies since 2017 is now becoming a challenging form of business amidst experts. The bitcoin futures play a major role and are always made available in the regulated exchanges. The growth of bitcoin futures affects other financial instruments in the financial world. The investors continue to speculate the possessing the real bitcoins in the hand. This action can be implemented by the bitcoin futures in a more effective manner. Along with this, these futures hedge along with the risks in spite of the fluctuation that prevails amidst the bitcoins. Click to investigate about the term futures in the financial world.
The definition of the bitcoin futures can be given as the contracts that theorize upon the price of the Bitcoin with the privilege of the owner without having to actually own the bitcoins. These bitcoin futures are easily dealt on the trading platforms like Bakkt. Such exchanges are being regulated by the CFTC (Commodity Futures Trading Commission). The physical delivery of the assets is given for the contracts. But, the purchasing party should directly buy and sell the crypto currencies. Apart from buying and selling, the bitcoins are even stored in their own wallets. The buying and selling occur under the expiration of the contracts. The regulations like CFTC are in general used for two purposes that are:
- Theorizing on the price fluctuations of the underlying asset: In this case, a futures contract can be purchased for any commodity. For example; oil is a commodity for which the price fluctuates and expiration date will be set. The person who purchases the commodity expects the rise of the commodity before the expiration date for profit to be experienced.
- A hedge of the risk: In this case, the future contract themselves are used as a hedge against the price fluctuations. In this case, the business goes on a steady basis. The adverse price fluctuation does not occur. Any heavy losses do not occur in this case.
The parties can preferably choose between the two positions in the bitcoin futures contract that includes:
- Long: It means that the particular party has agreed to buy the underlying asset for a fixed price.
- Short: It means that the particular party has agreed to sell the underlying asset for a fixed price. This occurs on the expiration of the contract in the future.
The bitcoin futures are the contracts that are executed in the same way as the other futures in the traditional financial asset.
EVOLUTION IN BITCOIN FUTURES
The bitcoin futures are the contracts with several advantages for the investors who indulge in bitcoin futures.
- The bitcoin futures are traded with the proper regulated exchanges. This makes the process more comfortable, easy and familiar for the investors to trade with. There is no need for the investors to engage with the normal crypto currency exchanges. This yields a higher level of security.
- It allows working theoretically on the underlying price of the asset. This does not involve the storing of the bitcoins. This automatically leads to some level of security because the people who are unaware of the bitcoins will not be able to deal with this business strategy.
- The trade becoming more familiar amidst the investors increases the liquidity in the market.
- The minimal volatility of the price of the Bitcoins and the investors are protected from adverse price fluctuations.
The bitcoin futures are traded on many platforms that are listed as below:
- CBOE: This turns out to be the largest trading center for the bitcoin futures. This stands the first one start such trading in the market. In the year of 2017 during the month of December was the first time the bitcoin futures were launched.
- CME: CME is the abbreviated form of Chicago Mercantile Exchange Group. As the name implies, it involves the usage of Chicago based derivatives and the Chicago platform for the purpose of trading. On a recent research, it was said that the bitcoin trading has risen to 119 percent in the year of 2018. Click to investigate more about this census.
- BitMEX: It is one of the largest crypto currency exchanges in this world. This even offers trading of the bitcoin futures. This exchange is not available for U.S. citizens.
- TD Ameritrade: It is the largest firm for brokerage in this world. They have recently launched and made the step into the trading with bitcoin futures.
- OKEx: It is a cryptocurrency trading platform that is Hong Kong based. They have also started offering to trade of bitcoin futures. This exchange is also not available for the U.S. citizens.
- NASDAQ: This is the 2nd largest stock market exchange in this world. It is said that a plan is being existed to start the trading on the bitcoin futures in a short period of time.
- Bakkt: It is the upcoming trading platform for the bitcoin futures. ICE, Intercontinental Exchange backs this Bakkt.
The equity market is also said so as stock market. It is nothing but the collection of buyers and sellers of stocks. It can also be defined as the weak network of transactions that is purely economic. The stocks can also be termed as shares. These represent the ownership of the business people. In terms of the countries, the United States has the largest stock market which is then followed by Japan and then by the United Kingdom. The financial entities can be traded through the stock exchanges. The entities can be shares of stocks, bonds, securities, and similar entities. The companies make their stocks listed both in the local stock market and international stock market (helps to draw the attention of the international investors).
The trade-in the stock market occurs by the transfer of stocks from the seller to the buyer. A smooth trade occurs between the two parties on an agreed price. This occurs with the exchange for money. Anyone in this world can involve themselves in this type of trading. This can range from small individual or group to the large investor or group. These people can be from anywhere in this world.
This type of trade is carried out in the exchanges. These exchanges are available in two forms.
- In the first case, the transaction occurs in the stock market with physical locations. The trading occurs on the trading floor. This type of trading is carried out by an Open Outcry method. It is typically a market where the trading occurs just by shouting or hand signals. In this way, the buyers and sellers are communicated. The place where this trading occurs is called pit.
- The other case is that trading occurs electronically. This means that the exchange works by the network of computers. One such method is NASDAQ. It is the second-largest stock market that is United States-based.
This equity market works with the flow of cash worldwide. There are several other markets that operate on cryptocurrencies. These are not normal currencies and they are not regulated by the central government. They are the digital asset. This market also works in a similar way as the equity market. See post to know in detail about the trading options of the cryptocurrencies. In this case, the trading occurs only electronically with the involvement of traders or brokers and investors.
DIGITAL CURRENCY EXCHANGE
A crypto currency exchange is something where trade occurs that allows investors to trade with the crypto currencies for some assets or the fiat currencies. A Bitcoin Trader is the one who actively participates in this type of digital currency exchange. This is purely an online business. This business works as the exchange between the traditional currency and the crypto currency. Being an online business, transactions occur fully electronically. It involves transfers through credit card payment, wire transfers and the like. Once these crypto currencies are purchased through the fiat currencies, they are being sent to the user’s personal crypto currency wallet. From this, the user can transfer their currency to the cards that can be used in the ATM available worldwide. Some of the crypto currencies available all over the world with varied options are:
- Binance: This platform serves to trade with 100 crypto currencies. In terms of the volume of trading, it is recognized as the world’s largest crypto currency exchange. This was founded in the year 2017 that has its head quarters in the Republic of Malta.
- Huobi: This exchange was founded in the year of 2013 with the head quarters being at the place of Singapore. This exchange was initially found in China and the offices are now found in Hong Kong, Korea, the United States, and Japan.
- Upbit: This exchange was found in the year of 2017 on October 24. It is the South Korean based crypto currency. The parent company of this exchange is Dunamu Inc.
- OKEx: It is an exchange that has it’s headquarters in Malta. It has its birth on April 11, 2018. It carries out trading worldwide. It has around 800 employees in the concern to serve the investors in a better way. In terms of turnover, it occupies the largest position in the world of crypto currency.
- Bithumb: It is the crypto currency exchange that belongs to South Korea. Many problems have been faced by his exchange in terms of finance and security.
- Bittrex: It is the U.S. based crypto currency exchange that had its birth in the year of 2013.
These exchanges have higher risks in the level of security. There are hackers who will find ways to intrude into the account and steal the bitcoins. So it is always necessary for the one to invest in such crypto currencies without a proper guide.
PROS & CONS OF ONLINE TRADING
In the world of internet, there is much business that is been run online. The online business is set up in the same way as the traditional business. Both of them involve same procedure to set up that goes through certain process. The process involves formulating the business plan, putting forward the mission of the business and handling of the administration related matters. Before a person enters into the field of online business; he or she has to know in detail about the pros and cons of online trading. There are many online businesses that involve fiat currencies and crypto currencies. Learn more here about the advanced online trading that is done through the crypto currencies. Every action in this universe has both pros and cons. It is in the hands of the people that how they tackle the situation in a more proactive way. The correct option can be chosen by detailed analysis and research. This can be done through gathering information from reviews, experts and the forums.
Some of the pros that make us prefer online business are as follows:
- Reduced costs: A physical set up of business requires more cost whereas setting up of the online business does not require that much fund as the traditional business. For instance, the traditional business requires a physical set up of the building; whereas the online business does not require such buildings. In this way, the online business can be said as they are more cost-effective.
- Limited staff requirements: In the traditional business, the staff requirements are immense; whereas in the online business, this staffing requirement is limited. For instance, in the online trading; purchasing an item just involves giving the card details without the intervention of any separate cashier and the like. This is also an important advantage in online trading.
- Wide range: Online trading makes the business available all over the world; whereas the traditional business is localized. In this way, the wide ranges of customers are covered as part of the business.
Some of the cons that make us prefer traditional business are as follows:
- Lack of interaction: The lack of physical presence affects customer interaction to a greater extent. This affects the customer and producer relationship to a greater extent. The face to face interaction helps to share the experiences either positive or negative for the improved business strategy.
E-Commerce is Electronics Commerce. It has made internet revolutionary. It is the way by which normal or traditional way doing the business is converted into the digital way of doing business. This can be said as doing business electronically. Like the internet that bought revolution in the field of information and communication; e-commerce has brought in revolution in the international or national fields of business transactions. Visit site to understand the transactions carried out nationally and internationally. For the developed nation, e-commerce is the point of capturing the world market. On the other hand, for the developing nation, e-commerce is seen as a tool to develop their financial status and compete with the developed nation. The period 1950 to 1990 was dominated by global trading from Japan. The first and the forth most reason for global trading to be dominated is excellence in communication and information. The period of nineties leads to the emergence of Internet with universal communication and information. This automatically led to the downfall of global trading organizations. Comparatively, there are many advantages of e-commerce.
- Like the trading organizations, the online business does not impose any fees or charge for conducting business.
- The speed of the internet has helped one to reach the nook and corner of the world being at the seat in their office. In this way, the global markets are easily captured at ease.
- One can work anywhere in this world. This is similar to work from home. Just with the click of the internet, one can operate at any time from anywhere.
- The business to a business relationship and the seller to buyer relationship is developed without the middle man or any broker or the traders.
- Internet shopping helps us select the products we need from the place we are with a wide variety of options from all the corners of the world.
- Apart from the banking and shopping sector, other areas that are being covered are education (syllabus, mock tests), politics (aactivity of the parties) and society and everyday lives of the people (day to day news).
- Unless like TV, radio, computers; the internet has reached the people at a faster rate due to its high penetrative and expansive power.
- It is time convenient too that is available all the time at all time zones. It is active all the time.
DEPTH OF TELECOMMUNICATION NETWORK
The in-depth meaning of e-commerce can be defined as the realization of products and the services through the form of telecommunication network. This digitalized information and the communication service that is purely internet-oriented is made use for performance of the online trading. This online business is comprised of 3 business formats in the names of e-commerce. These businesses format suits accordingly based on the business type. The business formats include business to business relationship, business to relation relationship and the business to governmental services. Going forward, business to a business relationship will gain dominance in the upcoming financial years. As a pre-step of the online business, both the sender and the receiver should have access to the internet. There are businesses trading with virtual currencies too. Going here is the trading options related to the crypto currency. The transactions over the internet for online business occur in 3 possible ways.
- A service whose transaction is completed
from selection to the end state of purchase (includes sale, ads, production,
and distribution) through the internet via a telecommunication network. This type
of transaction can, in turn, be categorized into 3 types.
- The initial searching stage is assisted with the interaction of buyers (consumers) and sellers (producers).
- Once the transaction is done, the ordering and the payment step interact.
- The final delivery stage is being executed electronically over the internet.
- The distributional services are the transactions where a product (that can be a good or the service) is selected and purchased over the internet. But, in the end, the delivery is done by the normal and traditional way.
- The transactions that involve the telecommunication transport facility. This even includes the provision of internet services.
Thus in crisp the e-commerce reduces the distance between the buyer and the market and the seller and the market. Moreover it provides a wide range of information about market opportunities and availabilities. The trader and the seller physical relationship is not compulsorily necessary for a business plan to be continued. Everything can be monitored online,and distribution to the end-user can also be made directly. The advertising options available the internet help the budding business to grow to greater extent and reach abroad contacts too. This is of great help to developing nations in terms of finance. So, e-commerce paves way for the developing nation to grow and attain greater heights.
OBSTACLES OF E-COMMERCE
An activity of buying or selling of either products or services over the world of internet is called e-commerce. It is of greater help and advantageous in various ways like reduced cost, limited manpower, lack of physical contact, banned middle man or brokers, consumption of less time, easy mobility and the convenient timings. Everything in this universe has both advantages and disadvantages. It is in our hands how we are using them. Everything needs help, so these online trading also need assistance and research before one plunge into the action. In this modern world, the trading can be carried with the virtual currencies even that is very different from the fiat currencies. Click to read the advice and experience of the experts and the achievers that they have shared related to the virtual currencies too.
In terms of e-commerce, both the developed nation and the developing nation face problems and the obstacles in some way or another. Here are the problems that are being sorted down.
- In the case of developing nation, the internet connection is very high. The Internet Service Provider is also available at high costs.
- The paperwork of the requirements of the business is made compulsory in many of the countries.
- Lack of compatibility between domestic and international trade requirements.
- The credibility of the business party should be seen mandatorily. Only after the digital signing of the agreement between the parties is done, the business starts.
- Due to the inadequate level of privacy regarding the credit card, there are many transactions that are completed only with the traditional way of payment which does not fully come under the concept of e-commerce.
- Customer trust is affected to some extent due to the lack of physical overview of the products or the services. This prevents the customer to check the quality, color, and similar attributes.
- Logistics problems occur at a higher rate.
- In developing nations, the bandwidth of the net connection is very poorly served. So, during a transaction; if the net connection gets disconnected; then it is of great issue as where the particular transaction is being interrupted.
There are many suggestions available to overcome these obstacles in one’s online trading. The suggestions available are:
- Support from the government
- Affordable low tariffs for the people
- Creation of awareness about the safety and security
- Improved bandwidth for the internet connection
EFFECTS OF E-COMMERCE ON TRADITIONAL BUSINESS
E-Commerce is the digital way of doing traditional business in a more advanced way. It has many benefits like the time spent is reduced, labour involved is limited, physical contact is reduced, middle man is eliminated and the similar benefits. Keeping the benefits aside; these benefits itself has become a curse to the traditional business in many ways. The effects of this e-commerce on the traditional business are wide and varied. Some of them are:
- In some types of business, a middle man plays a major role in the complete transaction. The introduction of e-commerce has completely eliminated the necessity of the middle man in all forms of business. This affects the relationships of the business to some extent. Adding to this point here raises the problem of unemployment.
- The importance of the logistics, infrastructure and other requirements have been reduced greatly. The requirement of online trading is just a telephone line for the internet connection.
- The mobility of the employees in the traditional is very much reduced in the online business. This automatically prevents and stops the man to man communication to a greater extent.
- The nation’s economic condition is affected drastically. For instance, consider the economic conditions of the places Singapore and Venezuela; the former was poor comparing the latter. But, once Singapore enters into the world of e-commerce, the economic status has raised to a greater extent.
- The problem of unemployment rises that affects the living condition of the people. But, on the other hand, the economic status of the nation is very much strengthened in terms of finance.
- In the earlier style of business, the papers or the documents are transferred through a post that leads to the increased time consumption. But in the digital business, the papers are transferred electronically at no cost and at no time. This results in the saving of the money and the time with the intervention of the new technology.
In general, online business affects the traditional business. On the other hand, there is an emergence of crypto currency trading which turns out to be a big barrier for the traditional business. A Bitcoin Trader should be very careful while they involve themselves in this crypto currency trading because of the many problems and the fraudulent being quoted in recent times. Whatever the business it might maybe, one should be very careful before investing. Choose wisely and act smartly.
POLICY ISSUES OF E-COMMERCE
The trade and the business occurring electronically gives rise to a number of legal issues. For instance, a service being sold over the internet across the different geographically location results in the legal issues. For an electronic transaction to occur, the essential things necessary are electronic contracts and electronic signatures. In some countries, these accesses are not being given. The countries that wish to commence electronic commerce should reform their legislative rules.
There are some 4 simple principles that guide people through the policies of e-commerce.
- The individuals should be given the freedom of determining the products and services over the internet.
- The government interferes in the areas of tariffs ad taxes in all types of business. Internet policies should always be market-driven and should be led by the industry.
- The internet policies should be neutral in terms of technology and the intervention of the government should be considered and encouraged.
- The internet policy always aims at the access of the internet at the universal level.
WTO aims at the emergence of the mode that concentrates on the delivery of products. The products include goods and services. In this policy, the products are being selected, purchased but delivered over to the end customers physically. But, on the other hand, the products that are delivered digitally also fall under several policy regimes.
ITU is the abbreviated form of International Telecom Union. It also plays its role and contributes its services to improvise the speed of e-commerce. Also, it has taken several steps and initiatives to promote the activity of e-commerce. One among such initiative is EC DC project. It is after this project is the ITU transfers it’s known and how in the electronic commerce to both private and the public companies. This is the condition that persists in developing countries. In the condition if such initiative persists then the problems and the obstacles get disappeared. This even boosts up e-commerce in developing countries.
ITC is concerned with the activities that are pre transactional. The activities are the supply of the information for the market research, promotion of the trade, providing publicity, research done on the electronic tenderness, legalized aspects of the electronic commerce and the activities related to the training for the government and the business. ITC has taken initiative to support the handcrafts business in developing countries. They have made revolution and yet to set the highest goal in the world of e-commerce.
All the traders face legal issues at some point or another. Adding to this, the Bitcoin Trader also faces similar legal issues in different way.
The financial market; as the name implies it is a type of market place that yields an avenue for a sale or a transaction and on the other hand purchase of assets occurs. The assets include bonds, stocks, foreign exchanges, and the respective derivatives. Based on the particular land and the financial entities being involved the financial market is called by different names like capital market or Wall Street. But all the terms represent the same constant thing. In simple terms, it can be said that; it is point where the investors and the businesses meet together to grow their financial level by making more money. It can be detailed as; consider a person who deposits a fixed amount in the bank. The bank, in turn, uses this money to lend loan to the other customers and gain interest. Here, the investors are also benefited and the bank itself is also benefited. This is said as the financial market.
The financial market varies from country to country. But every country has its own market place. Some of them are small while others are big that deals with the international transaction (like NYSE, New York Stock Exchange that deals with the trillions of dollars per day). Based on the needs and the type, the financial markets are categorized accordingly.
- Stock Market: A stock market is a place where the shares are traded. These shares are the financial entities issued by public companies based on their ownership. Each of these shares comes into the market with a price. The price fluctuates either rise up or goes down based on the market condition. In this way, the shareholders gain income. The important challenge in this stock market is choosing of the shares that will remain genuine and profitable. The investors keep on monitoring the stock market to know the status. The investor sees money if the shares are bought for an amount and the sold with the price higher than the price for which it is being bought.
- Forex market: The forex market is the largest market and is the most important liquid market in the world. They trade with currency pairs. In the midst of usual currencies, the crypto currencies are adding a new dimension to the forex market. There are various crypto currencies in use. Read full article to know in detail about the crypto currencies. These markets function all time irrespective of time and day.
FINANCIAL MARKET IN BRIEF
A financial market is a market where the people trade with securities like bonds, shares, currencies, precious metals and the securities. The term exchange comes to replace the term, market. For example, stock exchange or commodity exchange. This market may have a physical location (examples of such system are LSE-London Stock Exchange, NYSE-New York Exchange System, BSE-Bombay Stock Exchange, and the like) or may operate electronically (examples of such system are NASDAQ Stock Market). There are several types of financial markets in scene; some of them are:
- Capital Market: It is something that
- Stock market: It works by issuing the stocks or shares and subsequent trading thereafter.
- Bond market: It works by issuing the bonds and leads to subsequent trading thereafter.
- Commodity market: These markets trade in the primary economic sector. They deal with the trading of commodities. These markets are said to be practiced from the past.
- Money market: These markets provide debt financing and investment. They are usually short term. They provide short term funding schemes. Being a part of the financial market, these markets lend loans that have to be repaid back within a period of 1 year. This type of trading is done over the counter and in wholesale.
- Derivatives market: They are the markets that provide instruments for the purpose of managing the risk at the financial level.
- Futures market: These markets function by setting a date at the near future and trading occurs accordingly with the contracts being provided at the earlier times.
- Forex market: This can be detailed as the Foreign exchange market. These markets facilitate the dealing of foreign exchanges. In this type of market, the currencies are traded. It has numerous pairs of currency pairings based on which can be traded accordingly. It is a global market. It leads to huge trading volume, availability of varied options for trading, availability of leveraged trading business and similar attributes.
- Cryptocurrency market: These markets are the newly emerging style of business. This market deals with the trading of digital assets and the respective financial technologies. Bitcoin Trader is the one who deals with these crypto currencies. These currencies are not physically available. These are the online trading options available.
- Spot market: It is also said as the cash market. In this type of market, the trading is carried out instantly for the immediate delivery of commodities or the financial instruments.
OVERVIEW OF FINANCIAL MARKET
A financial market is the one where trade occurs for the shares, bonds, securities, foreign exchanges, and the crypto currencies that are now paving its way into this world of trade. These markets almost work all days in a week and all-time in a day. It is a place where the buyers and the sellers meet and trade with or without the help of middle man or the broker. There are several types of financial markets and some of them are as follows:
- Stock market: The stock market trades with the shares that are being issued by public companies. Each share has a certain price for it and will be available for purchase. These shares are bought and when the price increases the shares can be sold. This results in profitable transaction.
- Bond market: The bond market works in a similar way as the share market. In this bond market, the bonds are being issued by the companies. The person buys these bonds. After a desired amount of time, the companies return the amount of the bonds along with the interest for the bond. This also results in a profitable transaction.
- Commodities market: It is the market where the buyers and the sellers deal with the commodities or the products.
- Derivatives market: These markets are the financial market for dealing with the futures, derivatives, contracts, options and similar financial entities.
- Crypto Currency Market: This market deals with the digital assets for the transaction. Hop over to these guys who deal with these crypto currencies and are succeeded in the world of crypto currency doing the business in a more profitable way.
A person should be very careful in selecting the market before they start their business A guidance of the great business people and the researchers are very essential to choose any of these paths.
The financial markets improve the economic status of the nation and help grow the financial status. The functions of the financial markets are as follows:
- The savings that are put forth are being used in more productive use.
- The prices of the securities are determined by the financial market itself.
- In general these markets are liquid markets. The buyers and the sellers can any time sell and buy the securities at any time based on their wish.
- The transaction is done on no costs or with lower transaction cost.
EXISTENCE IN THE FINANCIAL MARKET
A financial market is something that pulls the attention from the investors to invest the funds who are in turn channeled to the corporations. This automatically leads to the growth of the companies. Without the existence of the financial markets, the lenders and the borrowers find very difficult to communicate and develop their business. There are many terms used in general in the world of financial market that includes:
- Lenders: The existence of the lender in the financial market is a crucial role. They are the one who lends their money and gets back the principal amount along with the extra amount in terms of the interest. In this way, the profit is obtained.
- Individuals and doubles: Many people do
not have knowledge about the investment. They are the lenders in some way or
another. A person lends money in the case of:
- When a person puts money in the savings account in a bank
- When a person puts forward amount for a pension plan
- When a person takes a step to contribute to the insurance company in the form of premiums
- When a person invests in the government bonds
- Companies: Companies are also a form of lenders. The surplus cash in the hands of the companies involves themselves to invest in the financial market for a short period of time. This amount is then returned back with the principal amount along with the interest.
- Borrowers: Borrowers are the one who
borrows money for a specific purpose.
- The individuals borrow money in the form of loans from the bank. This can be short term or long term based on the need and the amount.
- Companies: Like individuals, the companies also borrow money for the growth and the welfare of their own company. This money might be used for future development or the modernization.
- Governments: The government also borrow money for some needs. This is done on the behalf of municipalities, some public sector bodies, nationalized industries and similar concerns. This is carried out mainly by the bonds transactions.
Like the normal business going on, the cryptocurrency trade has also become normal and usual. Find here the terms and the terminologies that are being used in the world of digital currency. The financial market works in several names that serve several functionalities and meanings. These markets almost work all days in a week.
IN-DEPTH OF FINANCIAL MARKET
The financial market functions based on:
- Intermediary functions:
- Transfer of resources: Financial markets help in the completion of transaction of the economic resources to the borrowers from the lenders. In a normal business, financial entities like money, commodities, derivatives, bonds, shares, foreign currency are traded. On the other hand, the crypto currencies are now traded with the introduction of the digital asset. The article here details how these crypto currencies are being traded.
- Enhancement of income: Financial market supports the income to be grown. They help the individuals or the companies or the government to earn money from the invested principal. This, in turn, leads to the growth of the individual welfare, development of the company and the growth of national income.
- Productive usage: The enhancement of the national income and the gross national product is obtained by the productive use of the funds that are being borrowed.
- Capital information: Financial market paves way for the new channel of the country’s capital information.
- Price determination: The interaction between the buyers and the sellers helps to set the price for the financial entities that are being traded. In this way, a transaction is completed successfully.
- Sale mechanism: Financial market provides special mechanisms for the process of trading.
- Information: It even provides the information on varied areas that helps the buyers and the sellers to successfully carry out the transaction with the profit.
- Financial functions:
- Helps the borrower by lending money to perform their desire like personal development or financial development.
- Helps the lenders by providing them the principal and the interest at the needed time with the profit.
- The functioning of the financial market helps to provide liquidity flow in the market.
- Facilitates credit creation.
- Helps promotion of the savings.
- The commercial bank is funded with liquidity.
- Anyone can start an investment with a great investment.
- The economic growth of the nation is balanced.
- The trading floors are upgraded and made easily available for the buyers and the trades for the purpose of trading and transaction.
The components of the financial markets are:
- Based on the level of the market
- Primary market
- Secondary market
- Based on the types of securities
- Money market
- Capital market:
- Equity market
- Debt market
- Derivative market
- Financial service market
- Depository market
Can You Make An Earning Through Trading?
Is it possible to quit our full-time job and make money through trading? This is a question that is in the minds of almost everyone who has at least once in life invested in the stock market.
It indeed is a fascinating idea to quit your job and sit at home and see the stock market make money for you. However, most of them can be done only in the fantasy world and something that is absolutely not achievable. It would surprise you to know that it actually is possible to make money through training and there are many investors who do that too. Unfortunately, the career option is not easy and definitely not for the faint-hearted.
The plunge into stock market trading
The novice investors try out some paper trading strategies and they then plunge into the stock market with lots of confidence assured that the market is sure to give them a handsome paycheque each month. Very few, however, make it but the majority just end up blowing their account. Studies have shown that the day trading strategies mostly end up in a huge loss of capital from the trader’s account.
There are however traders who have made money and are doing so over years. The fantasy world does exist where some traders get the privilege to sit on a beach or up on the hills with a laptop and internet connection to make huge money from the stock market. Trading to earn a living gives you the freedom and you are your own boss, with full liberty to work when you want and from where you want.
To however be able to achieve this freedom you need to understand that trading is not easy and you need specific skill set and be able to tolerate risk to be able to make a lucrative return from the stock market.
To make money from the market you should also try out different asset classes. Each instrument has its own property and if you are not comfortable trading stocks then check this site out to understand how to trade in cryptocurrencies. If you are comfortable trading Bitcoin then you can make a lot of money.
You need to be diligent to trade
If you want to day trade in the market and make it into your full time career then you need to reach a level where you can be focused. You need to be on your toes the whole day when you are day trading in the stock market and a loss in focus could only mean huge losses in your trading account.