5 Hottest Investment Trends For 2019

Making money off proper investments is one of the cornerstones of capitalism. Essentially if you make a wager that the company you give money for is going to continue being successful, and if you’re right, you earn your fair share of the profit. Both you and the company that you invest in benefit from the decision. Not everyone knows how to properly invest, or even where to invest their hard-earned money. Here are some examples of where popular investment trends are heading in 2019.

1. Cryptocurrency

An interesting take on decentralized currency, crypto has become one of the most talked about and most controversial topics on the internet and in investment. It started spreading during Bitcoins’ massive increase in value from hundreds of dollars to twenty-thousand dollars in a very short amount of time. Following this, the currency soon lost half of its value in a similarly short amount of time. The instability of crypto has not deterred many investors who see a future in any of the numerous block-chain driven coins. The potential for fast trading and avoiding government manipulation is considered a very attractive trait in this business.

Others argue that circumventing regulation online, and the possibility of insider manipulation from the original creators who might hoard large amounts of the currency might be too much of a risk for future trading.

2. Trade options

Much like a regular stock, options trading allows you to control an asset and make a price movement. The difference is, you don’t have to actually own the stock itself. They have a very low price due to expiring within several months, and in some cases several weeks, depending on the stock itself. The price is way below the actual per-share price of the underlying asset. For just a few dollars you could trade Tesla or Google, or any of the giants provided.

Notably, the most you can lose through this investment is exactly what you put into it, and nothing more. Unlike futures, there is no additional margin call. Options trade is very complex and to be able to successfully make a profit off of it, you must do your research beforehand.

3. Tiffany & Co.

Known as one of the largest and oldest jewelry companies in the world, it has more than a hundred locations internationally, many of them in Australia. It is credited as the pioneer of the practice of using the carat as a weight standard for precious gems. Business is booming, as the company has topped earnings in the last six quarters straight, proving that it’s still on top of the game.

The new CEO has pushed the company to exceed investor expectations and stay ahead of its competitors. Luxury good business is expected to grow over the next few years, which is why some companies have upgraded Tiffany stocks and pegged it as one of the leaders in the industry.

4. Hire a broker

When the market shows signs of being up significantly, it seems like it should be an easy thing to invest properly and make some money, but the average Australian investor doesn’t do so well on his own without some kind of mediator. This is why many future investors opt for a sound alternative investment in Australia or other types of mediators to help them make the right decision when trading. A good broker can provide invaluable tips and guidelines for beginners and experts alike.

Some of them charge a fee for their help, but more often than not, the fee is well worth the help they provide when it comes to good investment ideas.

5. Forex trading

With a very low price of entry, Forex looks like a very attractive investment. Forex, or foreign currency trading, is also relatively simple to understand, even for beginner investors. Most of the investments and actions are located in just a couple of currency pairs. An online broker can even open a mini-account for you with a very small deposit of a hundred dollars or even less, in some cases. Beginner investors will find this to be a convenient option.

You can control more than your actual investments through leverage. The downside of this is that this will also increase your potential losses significantly. This makes leverage very attractive for those who like to gamble, but possibly harmful.

While these are some of the more popular and sure-fire decisions you can make in investing in 2019, they only scratch the surface of what’s out there. There are hundreds of new companies being made with creative, new ideas. Likewise, well-established companies are constantly thinking of new ways of making money for their investors. Brokers are constantly monitoring hot stocks for their clients. In the end, the choice of what to back with your money is yours alone, considering it is your money.

Guest author, Lucas, is a business consultant with a passion for writing. Doing his research, exploring and writing are his favorite things to do. Besides that, he loves playing his guitar, hiking and traveling.

Is Buying Stocks The Best Option For Business Investors?

If you’re looking at ways to increase your business income through an investment strategy – or even as a way to gather sufficient fundings and launch a startup business using effective investment approaches – it’s likely that you’ve figured that the most effective way is to sell your stock for profits. The most common solution for new investors is to buy a stock and sell calls against it. However, it can be difficult to implement as a strategy as it relies on the availability of capital. Indeed, to sell a call you need to have at least a minimum number of stocks – 100 – which can be tricky to afford if you don’t have the financial means to do so. It’s therefore fair to ask whether there is a low-risk alternative to buying stocks to grow your profits from the investment market.

buyingstocks1

How do you best sell stocks?

Selling options for your stocks

First of all, if you’re new to the idea of using calls to sell your stocks, you need to understand one key factor of your investment strategy: What are covered calls? A covered call in an options strategy that involves buying or owning a stock and selling call options, and waiting for the options contract to be exercised. If you’re looking to gather funds from this strategy, you need to focus on collecting your income via option premiums. It’s a demanding strategy that requires available capital and understanding. Indeed, an error in this trading approach can be costly. Investors who sell at the wrong strike price or who let the contract expire may find themselves out of pocket.

buyingstocks2

Covered call strategy

The poor man’s alternative

If you prefer to make the most of the investment market to generate huge returns without needing to own multiple stocks, you’ll be more interested in using a LEAPS – Long-term Equity Anticipation Security – strategy. However, in this approach, the options are available on longer terms than traditional options. LEAPS options can typically extend for terms of 2 years out. Rather than buying 100 shares, the investor can simply buy the in-the-money LEAPS calls and sell an out-of-the-money call against it towards the end of the term. The main reason for this approach is to reduce the extrinsic value and facilitate the purchase. It’s a good way to enter the market for small budgets.

Growing your investment strategy

The advantage of getting to understand some of the main stock market strategies, as a business owner, is that you can develop a feel for the performance of companies and, therefore the fluctuation of their stocks. For small business owners or startups, the ability to keep a small part of your budget and dedicate it to stock market investments means that you can not only grow your market knowledge and identify business and financial trends before our competitors, but you can also accumulate the income you need to grow your company. Admittedly, you may even decide to build a team dedicated to the management of your stock options once you’ve developed a taste for the investing world.

As a business owner, you might find the investment world a little difficult at first. But using your business acumen alongside key financial strategies, you can maximize profits through the calls you make.

Guideline on trading stocks online

Stock trading has come a long way since its intense popularity in Wall Street. Before the various developments in technology, people intending to engage in stock trading had to rely on the services of a stock broker. The stock broker would buy or sell shares on the client’s behalf depending on the nature of the market and would then charge a fee for services rendered. However, changes brought about by advancement in computer technology have made it possible for people to engage in stock trading online. It is now possible for an individual to buy or sell stocks online which is faster and a stock broker is not necessarily required.

stocks

Stock trading involves either selling or buying stock which shares belonging to a particular company for the purpose of making a profit. Even though stock trading is a means of getting rich, acting on wrong information may lead to an individual making great losses. It is, therefore, important to understand how online stock trading works so as to have all the information necessary to make the decision of whether t buy or sell stock. Like in most businesses, the decision to buy or sell a stock is determined by the supply and demand that exists in the market. People Buying stock in a particular company belief that they will be willing to own shares of the company with time. If the popularity of the company continues to increase, traders will start competing for owning its shares and thus boost its sale price. Changes in the value of the business or other shifts in the stock market may influence its popularity and improvement.

Even though the decision of which stocks to buy may be challenging, two methods have proved helpful in guiding traders on what decision to make. One method is the Fundamental analysis process which involves analysing the public statements and financial reports of a company to determine the stability of the business. The method analyses documents like balance sheets, news releases and income statements, to mention a few, which are available online with tutorials on how to evaluate them. Technical analysis is also a method founded on the notion that changes in the stock market prices follow certain patterns that can be detected and the stock traded so as to make profits. Even though they do not accept this method as the Fundamental analysis method, traders in the stock market combine the two approaches in deciding whether to buy or sell their stock.

Online stock trading requires a good command of the scholarship and adequate information on the company’s stock a trader wants to buy or sell. Research is, therefore, important as it enables one to evaluate the nature of the company before investing in it. Companies such as CMC Markets provide ratings for specific companies obtained from an analysis conducted by professionals. Such ratings are important because they act as indicators of whether to buy or sell the stock of the companies mentioned. Verifying the authenticity of the information given can be done through examining the analyst’s records which provide an idea of the value held by their opinions.

Such online trading services are very helpful and greatly influence the decision of whether to hold, sell or buy the stock at a particular company. Although one can engage in online stock trading directly, online brokers are quite helpful especially with their vast experience in stock trading. When deciding to rely on the services of an online broker, it is important to consider the level of services they will offer and the amount they charge for every service they provide. Companies that offer personal advice on investments are particularly useful to people who are new to online stock trading. It is, however, important to seek out brokers that provide the means of trading in more advanced fields such as margin trading as skills in dealing in stock trade develops.

For individuals who insist on trading on themselves, discount online broker services can be quite helpful in making decisions. The individual will be not only able to buy and sell stock but also exchange-traded funds, certificates of deposits, bonds and mutual funds to mention a few. The individual will, however, make the final decision on whether to buy or sell on each investment made. Reading financial websites and trading in the penny stock markets can also be quite helpful in enhancing the skills that one will require to trade in the online stock market successfully.