yourlinkedin.com http://www.yourlinkedin.com My WordPress Blog Thu, 11 Apr 2019 09:36:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.1 WHAT IS THE INVESTMENT (FINANCIAL) LEVERAGE? http://www.yourlinkedin.com/2019/04/11/what-is-the-investment-financial-leverage/ http://www.yourlinkedin.com/2019/04/11/what-is-the-investment-financial-leverage/#respond Thu, 11 Apr 2019 09:36:19 +0000 http://www.yourlinkedin.com/2019/04/11/what-is-the-investment-financial-leverage/

Certainly most people who are interested in finances have heard about the concept of investment lever (in other words, leverage or leverage) . It is thanks to her that we do not have much capital, we have a chance to make a lot of profits by investing in, for example, the FOREX market or the derivatives market. But on the other hand, through the leverage, our invested funds can also be quickly lost. Let’s check whether it is worth using the investment lever.

What Is The Investment (Financial) Leverage? 

What Is The Investment (Financial) Leverage? 

Let’s start with what the investment lever is and how it works. The easiest way to say is that it is a loan granted to us by a broker or by another entity that gives us the opportunity to use leverage. Thanks to this, having a small amount of capital, we can conclude transactions based on a much larger amount than we actually have. In Poland, the highest available level of leverage is 100: 1, but among brokers from other countries, we can find levers even at the level of 1000: 1.

Let’s assume, then, that we have 1000 zlotys to invest. When we use the 100: 1 leverage, we will be able to trade 100 times more capital, or 100,000 PLN. However, this involves a risk. For if our investment does not prove successful, the losses count not from PLN 1,000 but from PLN 100,000. So if the value in which we invested, will change by only 1% in the opposite direction than we assumed, we will lose the entire 1,000 PLN. If it changes more – we will be on debit. Of course, when we invest well, our profit will also be very large.

 

Can we somehow secure ourselves against a negative balance? It turns out that some brokers guarantee protection against negative balances. This means that when investing, we lose only money that we have deposited with our broker. If we do not choose this option, we can get into big trouble. According to specialists, the vast majority of investors investing with leverage loses their money or even needs to contribute to the investment. So when we do not have any protection against a negative balance, and our investment goes in the wrong direction, and so often happens, the broker will call us to top up the deposit, and when we do not have it, we will be left with a loan that will have to be given back.

Thanks to the investment lever, we can earn a lot of money. But on the other hand, we can also lose a lot of money. Therefore, before we start investing in this way, let’s think about whether we want to take such a big risk.

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Stock exchange – how not to get carried away by emotions? – Financial portal – deposits, bank accounts, loans, loans http://www.yourlinkedin.com/2019/04/04/stock-exchange-how-not-to-get-carried-away-by-emotions-financial-portal-deposits-bank-accounts-loans-loans/ http://www.yourlinkedin.com/2019/04/04/stock-exchange-how-not-to-get-carried-away-by-emotions-financial-portal-deposits-bank-accounts-loans-loans/#respond Thu, 04 Apr 2019 09:22:02 +0000 http://www.yourlinkedin.com/2019/04/04/stock-exchange-how-not-to-get-carried-away-by-emotions-financial-portal-deposits-bank-accounts-loans-loans/

Effective investing in the stock market is based largely on the analysis and appropriate selection of financial instruments that will bring profit to the investor, although the risk of loss should also be taken into account. An equally important element of investment success is the skillful management of the asset portfolio, which is not possible if we can not manage our own emotions. So how do you invest in the stock market so you do not get carried away by emotions?

Pay attention to the objective market measures

Pay attention to the objective market measures

Greed and fear are two basic emotions that govern the stock market. Unfortunately, standard economic models do not include them. What’s more, they do not take into account the fact that economic decisions made by investors do not have to be rational. Even if historically high rates of return tempt us with promises of achieving above-average profits, it is worth limiting greed.

In this respect, it may be helpful to analyze the objective measures of the market, in particular the valuation indicators. They include, among others, an indicator showing the relation of the share price to the profit that falls on it. The golden rule of investing warns us against excessive optimism. High valuation ratios should therefore be of our caution. They mean that the shares of a given company are simply expensive.

Of course, such an interpretation is a great simplification. It does not pay attention to the reasons why the index has reached such and not another value. A high share price to profit ratio may mean that investors expect to achieve an even higher return on investment in the future. Nevertheless, as mentioned, high valuation ratios should cool our expectations.

Analyze sentiment indicators

Analyze sentiment indicators

Worth noting are also various sentiment indicators. They set the level of optimism among stock investors. If their values ​​approach the level referred to as extreme optimism, one can assume that the market is already largely bought.

Conversely, the sale of the market signals the value of the indicator approaching the level of extreme pessimism. Thanks to the analysis of sentiment indicators, we will not make the basic error that greed and fear force us, that is, the purchase of shares at the very top of the bull market and their sale in the stock market hole.

Do not fall into the trap of fear and partly pass your position

Do not fall into the trap of fear and partly pass your position

The investor’s decisions are particularly adversely affected by the bear market. From day to day, market sentiment deteriorates, and advancing declines cause investors to panic. It is talked about the collapse of the financial system and counts down the bankruptcy of the state, which further aggravates the difficult situation of investors.

In addition, there is usually a lack of willingness on the part of the investor to implement the loss, as a result of which the position is held for too long, which is associated with further losses. The exit from the impasse is a partial liquidation of the position, which allows you to regain mental comfort. In this way, in conditions of strong stress in the market, the investor is able to return to the cold calculation of events.

Act according to plan

Act according to plan

In order to avoid emotions dominating over rational analysis when making investment decisions, it is worth acting based on a well-thought-out strategy. Already at the beginning of our investment route, when we set up a brokerage account, it is worth knowing what level of risk and how high the loss, we are able to accept if the prices of financial instruments begin to fall.

Similar predictions are worth describing in relation to the profit that satisfies us. This will help us to keep common sense and not succumb to greed in a situation where bull market and excessive optimism of investors prevail.

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BASICS OF INVESTING ON THE STOCK EXCHANGE -BANK ACCOUNTS, LOANS http://www.yourlinkedin.com/2019/03/24/basics-of-investing-on-the-stock-exchange-bank-accounts-loans/ http://www.yourlinkedin.com/2019/03/24/basics-of-investing-on-the-stock-exchange-bank-accounts-loans/#respond Sun, 24 Mar 2019 09:37:13 +0000 http://www.yourlinkedin.com/2019/03/24/basics-of-investing-on-the-stock-exchange-bank-accounts-loans/

 

The Stock Exchange tempts many with its profits. If we invest our money well, it will turn out that our profits can be very high. Therefore, many people with financial surpluses are wondering whether to start multiplying them with the help of the Warsaw Stock Exchange. Is making money easy? Definitely not. If that were the case, everyone would invest their money on the WSE and everyone would only count their profits. The risk is very high here and you can easily lose your money. However, for many people the risk is not so important and they decide to start investing. If you belong to this group, read what you need to do to “enter” the Stock Exchange and make money from it.

What is the Stock Exchange

What is the Stock Exchange

The Warsaw Stock Exchange is a place where we can buy or sell various types of securities. We include shares, bonds, pre-emptive rights, etc. The Warsaw Stock Exchange started its activity in 1991, and today it is one of the largest stock exchanges in Central Europe.

How to start investing on the Stock Exchange

How to start investing on the Stock Exchange

If we want to start investing on the Warsaw Stock Exchange, first of all we need to know all the mechanisms that drive it. That’s why we have to read a few articles on this topic, learn the most important terms with which we meet during the trade (action, bull market, bear, technical analysis, fundamental analysis, etc.). Let’s find out what companies are entering individual stock market indices. Look how stocks behave over a longer period of time, what is their turnover, etc. Without this basic technical knowledge, there is nothing to start investing on the WSE.

Open a demo account

Open a demo account

On the Internet, we can meet many websites offering free demo accounts on which we can trade virtual money on the Exchange. We will be able to include transactions of all kinds as in the real world, but we will not expose ourselves to possible losses due to inaccurate investments. Of course, our possible profits will also be virtual. Such a demo account will allow us to get to know all the mechanisms operating on the Stock Exchange and what is important, such a learning does not involve any risk.

Open a brokerage account

Open a brokerage account

In order to be able to buy and sell shares listed on the Stock Exchange, we must have an open brokerage account. Simply put, it is an account where all information about our transactions is saved and the number of shares we have. So in order to buy shares, we need to supply our brokerage account with the appropriate amount of money and then buy it. A brokerage account can be opened in a bank or brokerage office.

Start buying and selling shares

Start buying and selling shares

If we already have an open brokerage account, nothing stops us from purchasing shares. The whole problem with investments on the stock market is related to choosing stocks that are cheap and will probably increase their value in the future. There is no answer as to how individual securities will behave, so buying them always involves risk. Therefore, by buying and selling shares, we can either earn a lot or lose a lot. For sure, therefore, an investment on the Stock Exchange is not recommended for people with weak nerves.

Is it worth investing money on the Warsaw Stock Exchange? Everyone has to answer this question himself. Certainly, it is a very risky investment, so you should consider well whether it is worth multiplying our money in this way.

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A Guide to Debt Consolidation Loans http://www.yourlinkedin.com/2019/02/07/a-guide-to-debt-consolidation-loans/ http://www.yourlinkedin.com/2019/02/07/a-guide-to-debt-consolidation-loans/#respond Thu, 07 Feb 2019 21:25:47 +0000 http://www.yourlinkedin.com/2019/02/07/a-guide-to-debt-consolidation-loans/

Should you find yourself overwhelmed by debt, you can consider debt consolidation loans. These loans are designed with the person in debt in addition to their funds in mind, allowing for repayment of outstanding debt while combining multiple payments into a single affordable monthly payment. sensant.com has details

Debt consolidation loans can be sought at most banks and lending institutions, with some even specializing in debt restructuring and consolidation.

Debt consolidation loans consist of a loan that is equal to either the total amount of your outstanding debt or to a significant portion of it, and allows you to pay off the debt so that you have only one debt back… the loan itself.

Security and considerations

Security and considerations

Since looking for debt consolidation loans means that you have some amounts of debt you want to consolidate, there is a good chance that your credit is less than perfect. If this is the case then you will probably need some type of collateral or property that you raise against the loans that the lender will be able to sell to get their money back in case you don’t pay the money back.

Security for debt consolidation loans can be a clear car title, lap for a house or other real estate or other forms of valuable property (though cars and houses are the most common forms of collateral).

When applying for debt consolidation loans, you first need to decide exactly how much money you need to borrow… normally, this will be either the total amount of your debt or the sum of the greatest debt you have.

The amount you need will help determine which type of collateral is appropriate for your loan and will also be an important factor in determining the interest rate and monthly payment that you receive in order to repay the loan.

Debt consolidation restrictions

Debt consolidation restrictions

Different lenders have different rules for debt consolidation loans … some have a minimum amount that you can borrow, and almost all have maximum amounts (which is usually based on the value of your security.)

Many lenders who specialize in people with less than perfect credit will offer very flexible terms for debt consolidation loans as this is where they get a lot of their business. Unfortunately, you often tend to have a slightly higher interest rate when dealing with these flexible terms.

Ultimately, debt consolidation loans can be a god’s gift to those who may have felt that there was no way out of their financial problems. The loans can get your debt under control, so you have a single payment to make and maybe even help you avoid bankruptcy … a place no one ever wants to go.

Thanks to the ease of consolidating your debt with debt consolidation loans, you don’t have to.

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