Maccablo

Category: Money

  • Investment on Stocks and Shares -Pros and Cons

    Investment on Stocks and Shares -Pros and Cons

    Today investment is so popular as everyone wants to increase their assets.But finding the right choice of investment is quite difficult . Short term investment or long term , and where to invest all this buzz every investors head. Investment on Stocks and Shares is always the popular choice.

    Investment on Stocks and Shares 

    Let us take a look on the Investment on stocks and shares to understand which is the right investment choice .

    stocks-and-shares

    But all have a confusion where they have to invest – Is it on stock or on shares. In order to answer this you should the pros and cons of stocks and shares.

    Read Also : Short term Investment Plans – Pros & Cons

    What is Stock?

    You might have heard the term stock not only in financial sector but in many fields where purchasing is involved. In financial sector, Stock is nothing but a general term which is used to describe the ownership in a company or corporation. It is issued by means of certificates which are called ‘Stock Certificates’. To put it in simple words, stock is a collection of shares.

    stock

    Stocks can be either Preferred or Common. If someone is holding a common stock in a company, they can attend the board meetings and participate in the voting for decisions taken on various issues. On the other hand, if someone is holding a preferred stock, they can’t vote. But Preferred stock holders are eligible for receiving dividends from the company.

    What is Share?

     We are hearing daily about the share market in the news section in TV channels. Share is nothing but the smallest unit of a stock and it is specific to the company. For eg. “I bought N shares of C Company”. Here N indicates the number of shares bought and C is the name of the company. Unlike stock, share can be measured in numbers. If a person has bought more number of shares of a particular company, then he/she becomes the shareholder of the company. Generally companies will release only certain portion of their shares to public.

    share

    Here you have seen stocks vs shares . Now to know more in detail you should know the pros and cons involved in both investment to take a wise decision. Investment decisions is based on the risk involved and the preference of risk. So you have to decide your investment choice by evaluating the pros and cons.

    By just knowing what a stock is and what a share is you cannot take any major decision on Investment on Stocks and Shares. So know further to increase your knowledge on investments.

    A .1 ) Stock – Pros and Cons

    Pros:
    • Dividends: If someone buys a preferred stock, they will get dividends from the company which can be used for reinvesting again.
    • Passive Income: Any income from the stocks is passive as you don’t have to put any effort for getting money.

    stock-pros-and-cons

    Cons:
    • No Minimum Guarantee : As the stock market is fluctuating, there is no minimum guarantee for profit. You cannot predict the interest amount as compared in other financial sectors like banks.

    So here you are understanding investments and stocks . This will give you key idea on stock but to take a final decision of investment you should know the pros and cons involved in shares as well.

    A .2)Share – Pros and Cons


    Pros    :
    • Passive Income: Share trading is a good source of passive income as you are getting money without putting any effort.
    • Qualification: You don’t need any great qualification for investing in shares but a basic knowledge about shares are enough to start with.
    • Travel: You don’t have to travel or do any physical work for investing in shares. It is very flexible and you can work at your own timings by relaxing and  sitting at home.
    • Less Investment: As shares are available in various ranges of prices, you can buy shares with less value and you don’t have to spend more money which is especially helpful for beginners.

    share-pros-and-cons

    Cons:
    • Share Buying : Buying wrong shares may result in heavy loss which will affect you physically as well as mentally.
    • Quarterly Results: When a company announces its quarterly results, you can see a drastic change in the price of the share. If the results are bad, then your share price will go down.

    So here you are having 50 % knowledge about Investment on Stocks and Shares. Moving to know further on stocks and share will help you to decide better on investment .

    Read Also : Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

    Top 5 Factors to Consider When Selecting a Stock

    • Always choose stocks that offers dividends as it is more beneficial for your future investment.
    • Find the market cap for the stock you are buying. Mid cap stocks are usually better than other stocks as they provide best return on investment stocks .
    • Find out whether the price you are paying for the stock is really worth. Sometimes we may spend more money for the items than their actual price. 
    • Find the enterprise value of the company from which you are going to buy the stock. It will help to find the true value of the company.
    • If you want to become a long term investor for a company stock, you should gather all information about the company like products/services offered, top level management, future projects, profit/loss balance sheet etc.

    stocks-vs-shares

    Factors to Consider When Selecting a share

    • Before buying the share of any company, add the company to your watch list for a week or so and observe its rates daily. There are many free portfolio trackers available online. You can subscribe for one and start analyzing. Also gather information about the company’s performance and its growth.
    • Divide you share investment equally into shares that grow quickly and constant growth shares. Oil company shares are quick growth shares as the oil prices are changing often. Shares of Banks provide a constant growth as there is no sudden change in their policies.

    You should analyse the risk to take an investment choice and it differs from one person to another .So you should know this before buying stocks and shares.

    Investment on Stocks and Shares should be analysed by knowing the risk involved in it . Some of you may be risk lovers and some o you will be risk averse. So which gives you the lesser standard deviation you can go for that when you think about increasing your asset.

    Risks in Stocks

    • Losing money – Loss of money is the biggest risk in stock trading as there is no minimum return guaranteed as the stock market is fluctuating.
    • Credit Rating – If the credit rating of a company goes low, it will affect the price of the stock because the company is getting its financing or loans based on it. A low credit rating means the company is not able to pay its debts in time which indicates a poor performance of the company.
    • Media – If a company is making a news to the media often even if it is a rumor, it will affect the price of the stock badly.

    Read Also : Gold purity and hallmark -Buyer’s Guide to choose the Pure Gold Jewellery

    Risk in S­­hares

    • Fluctuation: The biggest risk in share is instability as the price of the share is not constant and changes daily. On the positive side, you will get profit in short time if the price of your share increases. But if falls drastically, you will suffer a heavy loss if you hold more number of shares of that particular company.
    • Health factors: You may have to monitor the price of a share daily if you are investing huge amount of money. You cannot sell the shares if the prices has dropped and have to wait till it goes high. This may affect your sleep in the night as you will be thinking what will happen tomorrow.
    • Choosing Right shares: If you are beginner in share trading and doing it without the help of any financial advisor, it will be difficult for you to choose the right shares as you don’t have much knowledge.
    • External factors: There are many external factors which decide the price of a share without your involvement like change of government, change of directors of the company etc. Suddenly the company may go bankrupt and you will get zero money as return, in such scenarios.

    Conclusion

    Investing in shares and stocks are not free from risks. But if they are analyzed and invested correctly, you can yield high returns.So you can now decide about Investment on Stocks and Shares according to your choice.

  • Best Low Cost Fund Transfer Methods An Overview

    Best Low Cost Fund Transfer Methods An Overview

    Money is all about its liquidity .Today fund transfer is not a distant term as it was before as there are numerous methods to transfer money. But what is the  Best Low Cost Fund Transfer Methods is still a confusing part for many of us.

    The need to transfer money internationally or domestically may arise due to various reasons. You may require sending money home, or making payments, or purchasing foreign real estate. The list is not exhaustive. You look for various means to carry out a Best Low Cost Fund Transfer.With advancement in the field of banking and technology, you have a sea of options to choose from.

    best-low-cost-fund-transfer-methods-an-overview Based on your requirement you can narrow down the most appropriate Money Transfer service for yourself.However, there may be restrictions. PayPal which is a very established money transfer app may not be available in certain countries.  You may have to resort to sending money like they did before Smartphones. Yes, I am speaking of Western Union Money transfer.

    Before effectively selecting your convenience of transferring money, keep in mind the following:

    1. The cost for the entire process( transfer fees)
    2. Exchange rates of currencies
    3. Amount of money to be transferred.
    4. Need for faster time of completion of payment

    The cheapest way to send money online across the globe may also be the slowest in terms of execution.

    Best Low Cost Fund Transfer Methods available.

    Let us look at some of the best ways to send money internationally as well as domestically.

    1. PayPal

     This is best when you are looking to transfer less than $10,000 within the US. Although it is quite similar to other online money transfer apps in terms of pricing, what makes it stand out is its worldwide user base. It has over 188 million active accounts. You can use the app or the website to transfer your money.

    paypal-safe-fund-transfer-methodMaximum amount per transfer is $10,000. This does offer one of the cheapest ways to transfer your money, it allows the transfer through one PayPal account to the other. This transfer is free of charge. However the charge is when the person tries to cash the amount. In general it is a Best Low Cost Fund Transfer method.

    For every $3000, a charge of 2.9% of amount along with .30% per transaction charge is remitted.

    International transfer charges are higher.

    1. TransferWise

    TransferWise consistently provides one of the best exchange rates available in the market , along with competitive transfer charges, user friendly interactive interface and fast completion. Originating from the UK, you can access it via iOS, Android or online website. The highlight in their service lies in the best foreign exchange rates they provide which is mid market and lower as compared to the banks. Banks will often have hidden costs for international transfers which sky rockets the total charge of the transfer. At TransferWise, they claim it to be times cheaper in comparison.

    transferwise-best-low-cost-fund-transfer-methodFor small transfers they levy a flat charge of $2.70. For higher sums, they will charge a cut of the transaction. Delivery within the US may take up to 7 days. You can track your transfer via their app or website.

    Based on the TransferWise reviews by many users, we can give it a top ranking as a Best Low Cost Fund Transfer method .

    1. WorldRemit

    Using WorldRemit you can transfer money for cash pickup at cheap rates. It provides you with the added feature of loading airtime on the phone. The highlight is that the transfers are completed on the same day itself at some locations. They charge low transfer fee and all charges are upfront No hidden costs. It is a simple to use and trusted name serving over 125 countries. The transfer is secure and safe. WorldRemit guarantees safe transfer of your money.worldremit-low-cost-fund-transfer

    Bank Deposits take up to a maximum of 3 days. All you need to do is enter the location, the type of service (airtime or bank deposit), the recipient details and the transfer amount. It is definitely one of the cheapest ways to transfer money internationally.

    1. Currency Fair

    While looking for an online money transfer agent, you would always want to keep in mind a low fee and a great exchange rate for your currency. Here comes the Currency Fair. Once your identity is verified it is smooth sailing thereon. It provides an easy to use interface for operation. As per user reviews this is one of the simplest apps out there which provide you excellent rates to transfer your money internationally.That is it is the Cheapest way to transfer money internationally.

    currencyfair-low-cost-money-transfer

    All you need to do is enter the amount you want to transfer. After charging their fee, they will give you the amount which the recipient will receive. It charges only 3 Euros for the transfer fee. An average of 24-48 hours is required for sending the money. You enjoy better rates than the banks or the FX brokers. Its availability is also a key factor. You can use it as a simple app or log on to their website online. With a Trust Pilot rating of 9.0 you can definitely bank upon Currency Fair. It is the cheapest way to send money online.

    1. Currency UK

    Currency UK is best used while transferring large sums of money to foreign accounts. They offer competitive exchange rates and charge a small fee covering the transaction cost. Customer service and support is good and friendly. You can use the app, either as an individual i.e. for private use or as a business organization.

    If you are logged in as a private user, then you have a benefit wherein Currency UK will not charge any transaction fee for amounts greater than or equal to £5000. If the amount is below the defined limit then a £15 charge is levied.

    1. Western Union

    This is one of the oldest money transfer agents out there. Their service is worldwide spread across 4000 location. You may send the money directly to the person’s bank account or the person may later collect the sum from a Western Union location.

    western-union-safe-fund-transferThe best time to use Western Union is when you need to get the money transferred across a city, or country in the case of an emergency. The downside to this is that you need to know a lot of information about the recipient. The charges levied are high and not as competitive as the rest. They have the fee estimate calculator which combines the location of the exchange, the exchange rate, the amount to be transferred. It can range from $10-$100. However, the fixed rate charges are also an attraction from a lot of users who want to transfer larger sums of money. This may not be suitable for a Best Low Cost Fund Transfer , but is an extremely dependable money transfer agent.

    We suggest that you explore these options. Find the best suited for your need. You will see that the cheapest way to transfer money online in one circumstance may not be the same in another. In the end, it is your cash, keep it safe and save as much as possible.

    So that’s all about the Best Low Cost Fund Transfer methods . There are many other but we have listed the most widely used ones .

  • Short term Investment Plans – Pros & Cons

    Short term Investment Plans – Pros & Cons

    The frenzy to accumulate as much as possible starts from ants and ends with humans. We live a life building ground for our next step. Finance planning has taken major portion of your brain’s activity, not to mention the stress lines on your forehead and premature grey along your hairline. There are two types of Investment -Short term and long term. Standing at the fork of these roads, we ponder over the lengthy mundane policy guidelines looking for a helpline, a simple sentence which conveys a simpler idea for smart and safe investment.To do a smart investment here we discuss on the Pros and cons of Short term Investment Plans.

    Smart financing is trending, and lack of patience and trust drives people to save somewhere safe and solid. Savings are done by investing your cash in some form that would yield returns/additional benefits- monetary or otherwise. There are different forms of investments, but the ones that all of us are clearly interested and working towards is how to reap what you sow in very less time. It means everyone is interested in short term investment plans.

    What is Short term investment Plans?

    In a not so professional-banker-style, it is to simply put away your resources or assets, which we will very cleverly refer to as capital ,to good use (by not spending it), for a span of few years (typically 1-3 years or less, in fact, it starts from 3 months onwards). It is not an investment until you get back more than what you have put in. So, that sums up our definition for a short term investment. Preserving your assets to ensure its safety and gain additional benefits on return.

    Still if it is not clear here it is in most simple words. Here is a more polished short investment definition .

    short-term-investment-plans

    Short Term Investments as the name itself will define it that it is short term ie) mostly investments made for short period of time. It is part of certain account of the present assets of some company’s current balance sheet usually.Short term investment plans are made for avoiding risk in the capital and it is mostly aimed to get converted to cash within an year.

    • It meets 2 requirements where first and foremost thing the asset which we have kept as short term investment should be easily convertible to cash .

    Example:  Stock price of a company will be attracted by investors to have a share of it.

    • Second requirement is that asset should be easily sold or convert to cash within a period of 3 to 12 months.

    What makes short term investment plans so attractive?

    Primarily, I would say, Need. The necessity to use the money in near future drives this kind of investment. Why is it so desirable?

    • The benefits of short term investment plans are that, firstly, you can break open your piggy bank sooner than later. The tenure for which the investment is made is short, ensuring low risk and faster access to your assets.benefits-of-short-term-investment
    • Secondly, the possibility of losing your investment is low. Short term investments generally are low risk investments given the time period and security (most of the available schemes). The idea behind investments of these kinds are to retain your assets more than multiply.­­

    Top Short Term Investment Plans

    So given that there are lots of investment schemes available, how do we choose the best? And what are the available choices. Here is the list of best short term investments with their pros and cons involved in each of them.

    Fixed Deposit

    If you have a problem with withholding cash and you want to get away from it without getting rid of it, fixed deposit is one such good short term investment plans.

    • A guaranteed investment :

    No risk involved. The return of your investment is certain.

    • No temptation:

    Idea of fixed deposit is to keep funds from being used for a stipulated period. Most banks do not encourage premature withdrawal (usually charged with a fee). This ensures the safety of the investment from self’s squanders.

    fixed-deposits

    • Flexibility of schemes:

    Money can be invested from 1 month or for 5 years depending on the investor’s convenience.

    • Fixed rate of interest:

    Fixed deposit ensures your cash remains safe but what it does not offer is

    • Higher returns :

    The returns at the end of tenure may/may not be higher than that of a savings account but it is not significantly high.

    • Low risk:

    May not be as fruitful as perhaps an investment in stock market or gold.

    • Not much of a tax benefit.

    So fixed deposit is a guaranteed Short term Investment Plans .

    Short term debt funds

     These schemes are basically mutual funds similar to FD in terms of the interest. MIP (monthly income plan), liquid funds, stocks and shares all come under debt funds.

    The advantage of short term debt funds over FD is tax benefits. This means the returns at the end of your stipulated period is more than what you receive from an FD.

    Gold Investment

    A typical investment in India where purchasing gold is considered a status quo and an investment. The idea behind assets in form of Gold is because of its high value in times of need. Considered to have highest resale value and continuous increase in price, this is one of the most preferred form of investment.

    Read Also : Gold purity and hallmark -Buyer’s Guide to choose the Pure Gold Jewellery

    Having said that, ornamental gold is not as much an investment as one expects.

    gold-investment

    • Taxes and Taxes:

    On purchase, additional bracket in your bill comprises of VAT, wastage, sales tax, making charges, which amount to a significant sum in the total bill. This is not considered during an exchange/resell. That is, the value of your gold is minus the amount you spent on previously mentioned categories.

    • Good for only updating to latest designs:

    The value of resale gold is not entirely taken. There is a 6-7% decline in the rate of resale gold and cashing it instead of exchange further reduces its value to about 10%

    • Storage:

    Physical storage of gold is not possible due to fear of burglary. In case these are preserved in bank lockers, a stipulated amount goes into maintaining them.

    • Wastage & Impurity:

    Extensive design requires extensive impurity. Mixing of other metals with gold for tensile strength is not an uncommon knowledge but the impurity matters when it is tested for sale. The amount of gold wasted (gold dust) for making these intricate designs are unaccounted for yet paid for. So end up paying for Gold more than it is worth.

    • Tax reduction:

    Investment in gold does not waiver your taxes as compared to other investment schemes that influence/reduce your Taxes. Lesser ITR, I say!

    • Unpredictable:

    The demand in gold has taken a massive dip many a times in past few years. This can happen in the future too. Unless you are buying gold, such conditions may not be favorable if you are trying to sell them.

    But, as mentioned, in case of dire needs, Gold can always be sold, mortgaged or exchanged at any point of time, making it a suitable investment.

    Savings Account

    Yet another common form of investment is savings account. The idea is simple and safe, every drop makes an ocean; a very famous dialog in our household every time I splurge on something.

    • Readymade withdrawal (ATM) and deposit of cash.
    • Account book becomes an additional identity proof
    • Quick transfer of money to other account.
    • Internet transactions.
    • Benefits on reaching prescribed goals set by particular bank.

    But what you may not get on a savings account is listed as follows.

    • Low interest rates:

    The growth of your investment is almost negligible.

    Each bank has a limit on the amount of customer’s deposit. If your savings exceed their limit, their insurance may not cover the rest of the amount.

    • And yes, the most obvious reason being, you will want to spend them. Given the easy access, it won’t be a tough job to do either.
    • Some banks have minimum balance maintenance. If the deposit/investment falls below their threshold, penalties are charged against the account holder, usually a certain amount.

     Recurring Deposit

    If you want to make a monthly saving but with better interest rates, recurring deposit is one of the ideal schemes available.

    • Deposit amount starts from as low as 500 upward
    • Fixed monthly investments.
    • Flexible duration: from 7 days to years as desired.
    • It has fixed rate of interest which is slightly better than savings account.

    Recurring deposits means periodic deposits. What may pose as constraints in recurring deposit are:

    • Punctual deposition: Money has to be deposited to your recurring account on time without fail, defaulting can cause penalty
    • Premature withdrawals are possible but some banks charge a fee.
    • No tax benefit.
    • Once fixed on the deposit money, it cannot be changed.
    • Low interest rates.

    Monthly Income Schemes

    Again counted to be a secured form of investing your assets for a short (optional) period. Monthly incomes schemes are offered by banks as well as post offices. MIS in post office is preferred over banks because of the following advantages:

    • Interest rate is good compared to fixed, recurring or saving account. Typically it is 8.5%.
    • Maturity period is for 5 years. So your investment stays safe for the period of time, growing.
    • A pre-closure facility is available after a year of opening the account but before 3 years.
    • It provides a monthly interest that can be credited to your account.
    • This interest in turn can be used as a source for recurring deposit or used for daily purpose.
    • These deposits are exempt from wealth tax.
    • The MIS can be opened by a single individual or 2-3 people together or for a minor through a guardian.

    All this makes it ideal short term investment plans for many .

    Given the interest rates are higher compared to other kind of deposits we have discussed so far, these deposits also come with some common limitations like

    • No tax benefit
    • Deduction of 1% if the account is closed prematurely after 3 years.
    • Limit in investment- 4.5 lakhs per individual and 9 lakhs for joint account.
    • Non-Indian resident is not allowed this investment scheme.
    • Minors have a deposit limit of only 3 lakhs

    The MIS schemes offered by banks and private financiers have longer maturity periods and is more a question of security of your investment.

    Recurring Deposit

    PPF is another vital short term investment diligently followed by the working class people. The benefits reaped from PPF are as follows:

    • No eligibility for opening the account. Opening a Public Provident Fund is a simple process and there are pre-requisites to be met for the same.
    • The savings cannot be withdrawn and has specific time period for which it has to be maintained- ensures the investment remains unspent.recurring-deposit
    • Good rate of interest. An interest rate of 8.7% is applicable per annum on PPF.
    • Tax exemption. This is one of the major reasons why PPF is more popular investment option. The annual investment to PPF and the interest earned out of are all exempted from your income tax.
    • Any amount can be deposited to your account. There is no fixed amount.
    • A loan or pre mature withdrawal from your PPF is possible.
    • It is also exempted from debt, liability and wealth tax.
    • A sure form of investment, the amount deposited remains safe.
    • This account, like MIS, can be opened for minors too.

    If you look for tax exemption on investment then this is the best Short term Investment Plans for those who want tax exemption.

    Though the benefits reaped are high, PPF investments come with clauses like –

    • Money cannot be withdrawn from the account until 7th year of opening your PPF account.
    • Joint accounts are not possible.
    • NRI (Nonresident of India) cannot have a PPF account.
    • Maximum investment cannot exceed 1.5 lakhs.
    • Investments can be made only 12 times in a fiscal year, much like a recurring account.
    • Most companies (public and private sector) make mandatory providential fund savings, which is no different from PPF. They even have a VPF (voluntary providential fund) open for employees who wish to make additional contribution to their savings.

    These are not just some of the short term investment schemes available but also most preferred ones in India. The goal behind a short term investment is to save the capital rather than multiply it. More than looking at the cons of a scheme, the nature of the scheme that would suit one’s needs should be analyzed. Read through the policy and guidelines, analyze different schemes available and the benefits, opt the one that suits the best.

    Draw a financial roadmap

    Form an idea as to how to much to invest, and for how long to invest. Consider your immediate and future needs and decide on the term of investment and then pick your ideal Short term Investment Plans.

    financial-roadmap

    Read through current affairs: Be aware of the shift in market, in terms of value of gold, stocks and shares, their growth.

    Analyze Risk: How much to invest is the question.

    From the different schemes available, consider the amount of money you are ready to invest and the kind of investment you are ready make based on the risk involved and the returns.

    Cash at hand: Always make a plan B. No matter how low risk it is, having a backup is good as far as money is concerned. Invest your money in different schemes and ensure there is always some emergency funds at hand for unpredictable circumstances.

    Financial Advisor : They can do the ground work for you and help you make a smart investment. Their insights on not just investment, but taxation and tax efficiency helps make a better financial plan.

    Now let us understand the short term investment plans with their risk level , here is the investment risk level analysis chart –

    Chart explaining the risk level of different types of short term investments with tenure of investment
    Investment type and risk level chart

    Having read the whole article, do not make a decision. Instead, collect the knowledge acquired and talk to a financial advisor. They do not have a degree in finance for no reason.End of the day, ensure you do not get into any shady business, caught up in the need for investment.So go through it well and find your best Short term Investment Plans.

  • Swing Trading Vs Position Trading – Pros and Cons

    Swing Trading Vs Position Trading – Pros and Cons

    Here we will discuss on a most interested trading concept comparison – Swing trading vs. Position trading . You may be aware that there are different trading styles . Here we are picking up comparison of just two different styles of trading . That is a comparison between Swing Trading Vs Position trading .

    What is trade ?

    Before we begin with the cross comparison between Swing Trading Vs Position Trading , let us take a look at the basic concepts like –

    What is trade

    Trade is nothing but simply an act of exchange of commodities and services in return for money .

    Trader Vs Investor

    Here let us begin the discuss by pointing out the key differences between trader and investor . Also this would be well understood by understanding Trading Vs Investment .

    Investing Vs Trading both differs even though it sounds similar . Trader and Investor participates in financial market but their approach and goals varies.

    Trader looks for profit frequently in every month but an investor is happy with the annual return of same percentage.

    Aim of both investment and trading , is to gain profit but the profit creation approaches of a trader and an investor really varies.

    Trading is a frequent exchange process , i mean selling and buying happens so frequently but investment is a period of time process to get profit .

    Several people who become interested in trading are firstly introduced to the financial markets through the process of investing. The main purpose of investing is to build wealth slowly over a period of time. This is generally accomplished through a buy-and-hold approach for e.g.: investing on stock or mutual fund etc and monitoring the price to fluctuate over the investment period of time.

    Trading profits are achieved basically through:

    • Buying low and selling high
    • Short period process and the time duration of trading is based on the style of trading .

    Trading Styles – Trader’s Style 

    There are mainly four different trading styles that exist but if we look deeply we can find basically Trader’s style is counted to five .

    So there are totally 5 trading styles .

    • Position Trading
    • Swing Trading
    • Day Trading
    • Scalp Trading
    • High frequency Trading

    Trading Style Time Frame Holding Period
    Position Trading Long Term Months to Years
    Swing Trading Short Term Days to Weeks
    Scalp Trading  Shortest Term (Very short)  Seconds – Minutes
    Day Trading Short Term Day only

    The chart explains the Holding time period and time frame of each trading style in a way how each trading style differs. One should know about the pros cons of each trading style to choose the Ideal trading style that suits you .

    Read Also : Investment on Stocks and Shares -Pros and Cons

    Read Also : Short term Investment Plans – Pros & Cons

    Read Also : Online trading beginner’s guide to online investment

    Read Also : Forex trading beginner’s Guide to Earn without Loss in Forex

    Here we will take the comparison of two primary trading styles – Swing Trading Vs Position Trading

    Swing Trading Vs Position Trading – Pros and Cons

    On the comparison of two primary trading styles – Swing Trading Vs Position Trading , first let’s understand what is position trading and swing trading .

    Position Trading

    Before we compare Position Trading Vs Swing trading , let us understand what are these trading styles individually.

    So , What is Position Trading ?

    Based on stock trends , position trading focus upon the intermediate trends .Position trading is an approach in which the trader either buys or sells contracts and holds them for an extended period of time. Position trading is also known as ‘trend trading‘. Positions can be open for a few days, a few weeks, and a few months or longer than that at times. They are also held during periods of minor retracement with the expectation that they will eventually continue trending in the desired direction.

    Position trading is generally long term , but the investors always keep a close look the price chart and fluctuations regularly . The fall in price over short period is generally ignored. Position traders are known to be investors with a combination of fundamental and technical analysis .

    Now let’s take a look at the pros of Position trading before comparing Swing Trading Vs Position Trading.

    Read Also : Mutual Fund A Complete Guideline – All You should Know

    Read Also : Top Cryptocurrencies for Promising Investment Returns

    Read Also : Bitcoin Vs Other Investments (Gold / Bonds / Stock & Shares)

    Read Also : Cryptocurrencies Vs Stock Vs Share : Future

    Position Trading Pros 

    • Position trading is the easiest to learn also it is estimated that up to 25% of position traders learn to become profitable easily.
    • Position trading is less stressful as compared to swing trading.
    • It is Easier to become successful even if you have less start up capital.
    • It is easier to predict the market as follow and observe the market trend on regular basis.

    Position trading is the most profitable type and also less time consuming than the other trading.

    Position trading Cons

    • As positions can be highly leveraged and trades remain open for extended periods of time it gets difficult to get in regular benefits of interest.
    • There is a build in risk associated with position trading as there can be a major fluctuations over night in the market.
    • In position trading Money can be tied up for an extended period of time that can stop entering into new positions as they arise.
    • Because of the duration of time involved in position trading, traders can experience major decline in an investment with the belief that it will turn around and start trending back soon in the needed direction.
    • Psychologically this can have a very harmful effect.

    Swing Trading

    Swing trading is a short-term plan used by various traders so as to buy and sell stocks whose technical analysis that indicates different trends like an upward or downward trend in the near future which last usually one day to two weeks.

    Swing traders are never bothered about the long term value or fluctuations of a stock . They always look for the near term of the stock and closely watch whether a stock can rise or fall using technical analysis.  

    Swing Trading Pros 

    • It doesn’t have to be a full time job and it is for long term with long time duration. Any person with enough capital for investment and accurate knowledge can try swing trading.
    • One can sit back and relax as he/she doesn’t have to keep their eyes on it as swing trading doesn’t require continues monitoring or observation.
    • Trades takes time to work out in that situation it is best to keep a trade open for a few days or weeks so that it results in higher profits than trading in and out of the same security several times in a day

    Swing Trading Cons

    • It is unpredictable as No wonder how much alert you be in the day time but markets can make a quick move overnight while you’re sleeping hence the market is closed. If in case such a moves overnight is against your trade, it can be a mean arousal after you check your position the next morning.
    • You hold up your capital for longer duration with swing trading as compared to day trading.

    Both the trading style are good and bad in their own ways . On a comparison of Position Trading Vs Swing trading,  one cannot directly advocate that this style of trading is the best .

    Because the final decision of every trader is influenced by certain trading factors like – risk tolerance , time , personality ,experience in trading , size of account etc.

    So you can let us know which is your preferred style of trading – Swing Trading Vs Position Trading or something else !!!

  • Airbnb Holiday Rental Service – How to Earn Guide

    Airbnb Holiday Rental Service – How to Earn Guide

    Airbnb is a website that lets you to earn money in various countries by listing your property for rent. It is legalized in certain countries of the world. Airbnb has emerged as a great option to earn more money since it was founded in 2008.

    What is Airbnb ?

    Airbnb is a website designed to let people list their property or homes to be available for rent. It is similar to letting out rooms like the hotel rooms.  This is famous and being in use in more than 190 countries over the globe.

    The entire process of listing your home on airbnb is a simple task and does not charge anything extra.

    Read More : Investment on Stocks and Shares -Pros and Cons

    Read More : Exclusive 1st home buyers checklist – Must read

    Read More : Forex trading beginner’s Guide to Earn without Loss in Forex

    Read More : Short term Investment Plans – Pros & Cons

     

     How to get started with Airbnb ?

    Getting started with airbnb is a simple task. It includes initial setting up of an airbnb profile. This is to attract guests towards your listing. Sharing the host’s culture as well as the guest expectations is required. Share all the guest reviews and apologize for the negative reviews to your guests. Add some photographs of your property to give your guests a better understanding. Price your listing as per the competitive rates in the airbnb market.

     Basic rules to rent room, apartment or house on airbnb

    No matter how big or small your house is, you can still list your room or even your apartment or house on airbnb. Initially know the rental arbitrage that is prevalent in your local airbnb market. Then list your property on airbnb. Be realistic, natural and have expectations that can be met. Before you rent out your home, get the proper insurance coverage needed to secure your property. Keep your landlord and neighbours in mind. Prior permission from your landlord is a basic requirement. Then start looking out for customers and be appealing towards them. As a host to maintain the sanity of your property set basic ground rules for your guests.

     Countries on which airbnb works :

    Airbnb has spread its wings of business to more than 190 countries all around the world. The countries where airbnb has not been operating are Iran, Sudan, North Korea, Syria and Crimea.

    Read Also : Best Travel Credit Cards with low annual fee

    Read Also : Best Drones On Different Budgets To Buy This Year

    How much you earn with airbnb ?

    Airbnb earning can be a 6 digit earning. It all depends on how your property is listed on the website. Explain all the important points pertaining to your property under proper subheadings. Highlight all the basic features and amenities provided by you to keep your guests comfortable and happy. Provide photo descriptions along with the facilities provided. List all the guest reviews of your property. Keep the positive as well as negative feedback on the site. For the negative feedback, apologize and accept your faults. Price the property in par with other listings of that area.

    The key to earn more on Airbnb  is by not chasing away customer for being full or over booked. Improve your property to attract more guests and thus increase your income.

    Read Also : Types of Insurance You Must Know to Secure Life

    Read Also : Top Birth Tourism Countries and birth tourism benefits Exclusive

     What is the risk involved in airbnb earning ?

    There are risks involved in listing your house or apartment on airbnb. Some of them are:

    1. Personal safety: How safe is it to rent out a room of your apartment to a stranger? If you are not staying in the house then it is safe to rent out by securing your valuables in a safe place. But in case you stay there and just letting out a room, you are physically vulnerable for danger.
    2. Scams: Scams and scammers are very common with airbnb. Be suspicious when something turns out to be too good to believe.

     Is airbnb revenue taxable ?

    Airbnb income is generally subject to tax deductions. But that depends on your income generation from the listings. If your earning is less then tax exemption will be automatic. This does not let you pay any tax. If your earning is higher than the threshold, then you have to file income tax.

     What is the benefit of airbnb earning ?

    Airbnb has its own set of benefits. Many tourists prefer airbnb since they have the following benefits:

    1. Airbnb has helped in developing the interest in culture of another country. By renting out an entire house or just an apartment airbnb has provided the option to the tourists to enjoy the local architecture, to taste the local cuisine and also to know the lifestyle and way of living.
    2. With airbnb tourists get the feel of staying at home. The feeling of staying within the four walls of a hotel or even a hostel can be avoided to a maximum extent with airbnb.
    3. The price with the airbnb properties is comparatively cheaper as compared to hotels or hostels. There is no seasonal variation in the price with airbnb.

    These were the pros of Airbnb / benefit of Airbnb .

    On the other hand, airbnb has cons attached to it like:

    1. Most of the times your host may not know your language. It would be difficult to communicate with your host if any problem arises.
    2. Planning is very much essential to enjoy the services of airbnb. Checking in and meeting the host should be planned well. The place of meeting as well time should be all decided in advance. Or else get a local SIM card and that will save all the trouble.
    3. If you do not like the property allotted to you, it is little risky to walk out and start looking for another accommodation in a foreign land. In a short notice span it is not possible to arrange for a replacement option to stay.
    4. Any scams related to airbnb are difficult to bring it to the notice of the concerned authority.
    5. The properties of airbnb are all scattered throughout the place than being close to the sightseeing places. This is a common problem as these are houses of the locals.

    So these were the Cons of Airbnb .

    Airbnb is an easy way to make some money by renting out your property. It is also an advantage for travellers to foreign lands to get the best facilities with this kind of facility.