What is the AEX 25 Index?

Online broker services offer traders the opportunity to buy and sell a variety of financial instruments, including positions on international indices. A stock market index represents the top shares listed on a particular exchange, and provides a clear indication of the health of a national economy.

A stock exchange brings together entities in need of financing. These include private and public companies, local authorities, the state, and agents with financing capacity such as savers and investors. The market helps entities acquire funds to finance the development, marketing, and distribution of their products or services, whether domestically or internationally.

Whereas some traders choose to invest in individual stocks, others opt to open positions on an index as a whole by trading ETFs (Exchange Traded Funds). This is in order to profit from the price evolution of a large group of the most important companies in a given country. ETFs are generally available only on the larger stock markets such as the S&P 500 and the NASDAQ, however, many investors prefer to identify more targeted opportunities on specific stocks.

Brokers like UFX.com allow you to benefit from advanced trading and charting tools when investing in the French index (the CAC40), the German index (the DAX30), and the Amsterdam Exchange index (the AEX 25).

What is the AEX 25 Index?

The AEX 25, representing the Amsterdam Exchange index, is made up of 25 large Dutch companies, including Royal Dutch Shell, Unilever, ING Group, Philips, and Heineken. Financial stocks account for nearly 30% of this index, Consumer Goods make up more than 20%, followed by Consumer Services, representing almost 15%.

Launched in 1983, the AEX 25 is reviewed quarterly in June, September, and December while a full annual review is conducted in March. During its quarterly review, companies are often removed or added to the index.

The AEX is a market value-weighted (capitalization-weighted) index, which means that its constituent stocks are weighted differently according to the value of each company. This weighting is calculated by multipying the share price by the number of outstanding shares.

When investing in the Dutch stock exchange, traders should not only stay updated on economic news concerning the Netherlands, but also on all European countries. Stock exchanges in Europe are highly correlated and any trading activities between these nations can impact traders’ decisions. For example, in 2000 the Euronext NV was established following a merger between the Paris, Brussels, and Amsterdam stock exchanges.

Trade agreements and the geopolitical environment also play important roles in the price evolution of a stock index, helping traders determine expectations and projections for future growth.

Your Guide to Making Money Trading

When you think of trading in the financial markets, what do you think of? For most people, they think of Wall Street types shouting on the phone or sitting behind a bank of computer screens.  Indeed, this image has been reinforced by a number of movies and other snippets of popular culture. However, the important question is whether this is exclusively the realm of sophisticated investors? Can an average person from their home pick up trading and make reasonable returns?

The answer is yes.

Trading online is now within the reach of millions of people worldwide. However, before you can actually embark on the trading route, there are a number of steps that you should follow.

1. Brush up on the Basics

Although one does not have to have Wall street experience and an education in finance in order to succeed in online trading, a certain degree of basic understanding is indeed required.

The trader should first cover the basics of finance and economics. This will help cement some elementary understanding of how changes in the global economic scene will impact on asset prices.

Similarly, a simple understanding of how supply and demand will usually drive asset prices is needed if one is to be expected to exectute trades on a broker platform.

Once you have an idea of how asset prices are likely to move given economic changes, you have to take the time to read up on the numerous financial instruments that you can trade.

There is Forex, Equities, Commodities and Crypto Currencies. Then, once you have decided what asset class you would like to trade, you need to decide on which particular assets within that class you want to trade.

I am generally of the view that when a trader specialises in a particular asset, they are able to learn all of the unique factors that could have an impact on that asset and hence be better than the competition.

It also helps to reach out to professional managed account traders in order to tap their brains for knowledge on how they manage trades and which asset classes / assets they are most comfortable trading.

2. Study the Instruments

Now that you have an understanding of the type of asset that you would like to trade, you have to narrow down the particular instruments that you would like to use.

There are a number of trading instruments but two of the most popular are CFDs and Binary Options. These two instruments differ in a few fundamental ways.

A CFD is a levered instrument where the trader will be taking a view on the spread of the asset price when opening the trade. A CFD is traded on margin which means that can indeed be quite a risky investment.

A binary option on the other hand, is an instrument with a defined downside risk (premium) and a defined payoff. This is sometimes why traders enjoy trading them as they know the amount that they are likely to lose on any given trade.

You can read more about binary options vs. forex and CFDs if you are interested in brushing up on the fundamentals.

3. Formulate a Strategy

Once you know what assets you would like to trade as well as the type of instrument that you will utilise for the trading, you need to formulate some sort of strategy before you decide to trade.

There are three types of strategies that you should at least have in order to increase your chances of success while trading. These are a money management strategy, a trading strategy and a risk management strategy.

A money management strategy is essential to you being able to keep control of the funds that you have in your account. It is also the strategy that you will use to strategically upsize or downsize the trade amount.

Similarly, you need to know what trades to place according to some sort of trading strategy. This could involve the use of some established disciplines like technical analysis, fundamental analysis or a combination of both.

You also need to be able to manage your risk. If you cannot control your impulses or take the risks at the right time then you are unlikely to take advantage of opportunities.

4. Find the Right Broker

This can be one of the most fundamental steps that the trader can take when they first start. Indeed, the broker that you select could impact on your profitability in a number of ways.

Firstly, the broker will be taking a commission and if the broker is not a legitimate broker, then the amount that they will be charging may be above market standard.

A broker also has to have a really efficient and functional platform. The trader needs effective tools like charting, news feeds and seamless execution if they are to implement some of the strategies above.

Lastly, the broker should allow the trader to trade on a demo account with free money before any financial commitments. This will allow the trader to get comfortable with the platform and process before trading.

The broker must be regulated and have an established track record. IQ option is one of the best brokers one can use as a new trader. You should take a look at other online sources like this IQ option broker review in order to learn more about the broker.

4. Start Trading

Once you have set up an account with the broker and are comfortable with your trading on the demo, you can progress to the next stage and fund an account.

You should start small and make sure that you stick to all of the guidelines that you set yourself while trading on the demo account.

It is also really important that you are not dogmatic. Some of the best traders know that their strategies should be adapted and tweaked if the desired results are not being achieved.

One of the most critical things that someone should do when trading is to make sure that they are able to remove emotion from the decision making process.

Trading is all about being analytical and calculated. You need to be able to take the risks and hold back from trading based solely on your analysis of where the markets are moving and what the most optimal trade is.

Don’t Give Up

Although these steps may initially seem quite laborious to you, they are essential to you being able to trade profitably over the long term.

There will come times at which you may feel slightly disenchanted and question whether trading is really for you. These thoughts should not be able to cloud your judgement.

When you turn on your PC for the first time and try to trade, it may not be profitable. Trading is like everything else in life. What you put in is what you get out.

If you are dedicated and are willing to constantly evaluate your trading, you will be on the road to trading success and financial freedom.

Online Trading Guide – From Side Gig to Full-Time Job

Source

If you have the dream of being a professional, full-time trader, you are in good company. People like Cory Mitchell at VantagePointTrading.com and Danyel Perez Novoa are just a few examples of successful day traders.

Many people share your online trading dream. You may want to give up the hassles of commuting to work, dealing with an overbearing boss and more. Online trading can be conducted from the comfort of your own home and on your own terms, and this means that you can change your entire life when you make this transition.

However, only a handful of these individuals who share your dream take the proper steps required to trade professionally and on a full-time basis. When this is going to be your full-time job that provides you and your family with a reliable and hopefully stable source of income, you need to follow a few important steps.

Increase Your Investment Capital Over Time

Unless you have already saved up, you will need to develop a nest egg over time. This can take many years to do in some cases, so be patient. The stock market typically earns a yield of approximately eight to ten percent. Day trading, such as investing in the stock market and Forex market, can produce a higher yield.

However, you will still need a substantial amount of investment capital to produce a large enough yield to live comfortably on. Because the market has its ups and downs, it is best to have a larger nest egg that you actually need to get started with.

Using online resources can enable you to learn the ropes before you put your own capital at risk. While generating a great return on your investments can help your money to grow more quickly, you also need to make plans to contribute more funds to your accounts on a regular basis.

Learn About Alternative Investment Options

New stock market investors often look most heavily at blue chip stocks. These are perceived to be a safer option because they often have a good dividend yield and the companies are usually stable and established. However, there are many other investment options that can be far more lucrative.

If you’re not sure about how much an opportunity might yield, you can always set up try out various Forex trading strategies.

The Forex market trades in foreign currency, and it operates 24 hours each day. While this can be a riskier market to invest in, it has incredible benefits and opportunities for tremendous profits. A smart idea may be to learn about investment alternatives such as this one and to invest at least some of your money in riskier and potentially more profitable investments.

At all times, your portfolio should be moderated based on your tolerance for risk as well as your need for growth.

Scale Back Expenses

If you are interested in living entirely off of your online trading income, it can be helpful to scale back your regular living expenses as much as possible. By doing so, you will need to generate less income each month to live off of. You may therefore be able to transition into full-time trading more quickly and with less risk of failure.

You can scale back expenses by refinancing and paying off your outstanding debts, moving to a more affordable home and adopting an improved lifestyle. Consolidating high interest credit cards into a lower interest rate personal loan with a fixed term is an excellent way to improve your current budget and to eliminate this debt faster.

Make an effort to scale back expenses as soon as possible. When you reduce expenses while still working at your full-time job, you may be able to save and invest even more money. This can ultimately help you to reach your goal faster.

Monitor Your Investments Regularly

When you are building up your capital and refining your knowledge in investments and trading, you likely will still be working at your full-time job. After all, you need to accrue enough capital to pay those bills.

During this period of time, you will need to regularly devote several hours each day to your investment activities. Your goal is to make strategic and thoughtful financial decisions that will grow your nest egg quickly. In the process, you can learn more about investments and trading so that you can more confidently leave behind your day job and become a full-time trader.

It may seem like you are working at a day job and a part-time evening job as a trader. This can be tiring, but the effort will be well worthwhile when you eventually leave your day job behind.

Consider Taking on a Part-Time Job

Over time and with regular effort, you may see your nest egg grow in size, and you may quickly approach the time when you can quit your day job. It is important that you contribute as much money as possible into new investments so that your nest egg can grow at a faster rate.

However, eventually, you may be able to generate enough income from your investments that you feel comfortable downsizing your employment status.

Rather than jump ship entirely, it may be wise to transition to a part-time job for a few months or even years. This way, you can continue to learn more about investments and trading. You can also have a reliable source of income to at least partially pay your bills.

In the event your trading efforts go south, this part-time job can be a saving grace. Ultimately, your transition to becoming a full-time trader can be easier and less risky with this approach.

Conclusion

Eventually, you will be able to transition to being a full-time investor. Some people think that they can enjoy leisurely days on the golf course and enjoy a life that resembles retirement when they are a full-time trader. However, this is a fallacy.

Full-time traders spend a great deal of time connected to their phones and computers. They must actively monitor their accounts, execute trades and take other steps to produce a profit on a regular basis. After all, this will be a profit that you and your loved ones need for financial sustenance.

 

How to Begin Stock Investing

Maybe you are a newly married couple who wants to save up for a house or you already bought one and you want to travel around the world once you retire. In both cases and not only, you have done your research and found out that stock investment is your best choice. Congratulations, you are on a right way and this article will help you plan your further steps. Stock market is not so much of a gambling as many people think, with careful and smart moves you can conquer the market and enjoy your house or the tour in Paris. You are here to learn how to begin stock investing so enough with this talk, let’s get to your guide.

Get your finances in order

Everything can go wrong if you do not take this step seriously or worse, skip it. You have to understand and analyze your current financial status. To some extent, this step is your insurance in stock market, and it is necessary for risk assessment. Keep in mind that in market losses are possible, so you should ask yourself if that happens, how much you are ready to lose. Some financial advisers suggest being debt-free before investing, which means you need to be done with your student loans, credit card debts and even shorten mortgage. By doing so you can eliminate the risk of compiling even more debts thus becoming a responsible investor. Don’t blame market and its ups and downs, if you did not pay much attention to finance evaluation and risk assessment. I should warn you that this step can take longer than you think but without it, I am sorry to say, you can’t expect any dividends.

Learn the basics

Dividend? You don’t know what it means? Well, you need to learn the basics of stock market. Just like the college or the bank you chose, successful stock investment requires research. Talking to your neighbor or friend who invested is not enough to declare, “I am done with research.” You need to devote some time to learning the terminology, current trends of stock market and explore investment opportunities. All you need to do this Google and you will find dozens of sources. Read investment newsletters, and guides, follow successful stock investors, and stay updated. Why do I need to learn all of this if I can go to an adviser or a stockbroker? Fair question, I have to say. Advisers, my friend, can guide you through the process of investing itself, meaning explain you what is good for you and assist you while forming your portfolio. But guess what? They will talk with terms and because the last thing I want is your baffled face expression when the adviser is speaking, I am telling you now, learn the basics.

Extend your hand to portfolio

Tadam, you have learned about stocks and you have done your research. Now with this background knowledge, you can easily pick a stock that will pay off at the end. For this step, you need to allocate your assets to form a portfolio of investments. There is one extremely important part, which can cost you the success of your investment. Similar to finance and risk evaluation, diversification plays huge role in minimizing the risks. Diversifying portfolio means to invest in different stock to ensure maximum variety. Since not all the stocks respond the same way to changes, at least some portion of your stocks will be safe.

Time for your stockbroker to shine

Stockbroker is your authorized representative in the market, so to speak. Their functions include and are not limited to finding the best deal of buying or selling stocks, and handling the whole process of the trade. So the only thing left for you is to go through the paperwork and sign them. Stockbrokers simplify the technical parts of investment for you, but their responsibility is immense. Therefore, select a stockbroker or a brokerage agency with your eyes wide open and with sharp mind.

Check, check, check and finally check

The market can be as much of an online casino UK as you make it out to be, but with proper planning it will be an investment and not a gamble.  Once you complete all the checkpoints, you can heave a sigh of relief because the hardest part is gone. We want you to have a safe and successful journey in the investment world and hopefully, we taught you how. You have a goal, you have a target and you know how to reach it so go ahead and begin investing.

Should Your Business Consider Bespoke Portfolio Management?

As your business begins to take off, it’s wise to consider how your business will consolidate its wealth and its portfolio of assets. If you’re a budding entrepreneur, or someone with limited business experience, then it may be that you’re not the best person to make this call. Instead, it may be best to specifically employ someone who has experience in bespoke portfolio management. Here, we run down some of the positives of this approach.

What is Portfolio Management?

Before you decide whether portfolio management is right for you, you’ll need to know what it involves. Portfolio management involves making complex decisions on investment mix and policy.

A portfolio manager will aim to match your investments to your objectives and will allocate assets to individuals and institutions, balancing risk against performance.

As such, portfolio management is about determining what the strengths and weaknesses of your company and its assets are. From here, opportunities and threats can be determined and the attempt to maximise return against the appetite of risk can be assessed with the company owner.

Once all of this has been established, a strategy can be brought together. This will weigh up the choice of debt vs equity, domestic vs international growth targets and growth vs safety, among other trade-offs.

According to IBIS World research, there are over 18,000 wealth management businesses in the US alone, generating over $233bn alone. This means you should have plenty of options and points for consideration.

What are the Benefits?

If you’re thinking about a bespoke portfolio management service, then there are a number of benefits worth considering that could be advantageous to your business.

  • Dedicated management: If you opt for a professional discretionary service like the one offered by WH Ireland, then you’ll receive an Investment Manager for your business. By working with one individual, you’ll get someone who takes the time to understand your business and its investment priorities.
  • Delegation: Ever feel like your head is spinning with important decisions? Well an Investment Manager can help alleviate some of the pressure. The markets are incredibly fast moving and your Investment Manager can relieve you of this stress, implementing your strategy on your behalf.
  • You Won’t Be Cut Out: However, the independence of your Investment Manager won’t mean you’re entirely cut out of the decision-making process. You should receive regular reports on what’s happening. If you choose a reputable wealth management company, these reports should take place however you like, too. Such as face to face or online.
  • Diversity: Through portfolio management, you’re able to diversify your assets, incomings and growth. You can use these alongside ISAs, personal pensions, trusts or even offshore bonds. These can all be managed as part of wider wealth planning.

If you’re looking to delegate some day to day decision making, then investment management could be great for your business.

What is Flipping Houses All About?

Flipping houses has become a popular way for families and businessmen to earn extra income. Wikipedia provides a perfect definition of flipping, which is basically residential redevelopment where you buy low and sell high for profit. With the right tools, this method of investing can be quite easy. Basically… you buy the cheapest house in the best neighborhood, fix it up, sell your house quickly and make money.

The First Step in Flipping Houses

The first step of flipping is to locate the perfect property. It is best to form a relationship with a good real estate agent that will keep an eye out for you. It is worthwhile to have a good real estate agent because they will already know the best areas and neighborhoods to invest. This will take away some of the research work from you. It is a good idea to invest in areas you are familiar with as well so you are not going in blindly.

Fixing Up a Flip Home

Once you find the right house, you will need to figure out how all of the remodeling work will be completed. You will either need to acquire the perfect contractor, or better yet do it yourself. If you are using a general contractor you will need to be sure they are trustworthy, reliable, good communicators, reasonably priced and talented. If you are handy and can do it yourself than your profits will be greater since you don’t have to use money to pay someone to do the work.

Pick the Right Items to Fix

When doing the renovation, you have to be smart in choosing what areas of the house will yield the greatest return on your investment. You also need to make the turnaround as quick as possible. Time is money. So, in order to sell your house quickly, it is crucial to make improvements to a few central parts of the property.

Kitchens are the biggest selling points of a home. The kitchen is where people spend the most time at home. Therefore it is worthwhile, it is where you will get the most bang for your buck. Home buyers will appreciate the new cabinets, granite countertops, upgraded backsplash, light fixtures and appliances. You can’t go wrong here.

Bathrooms are another area of the home that buyers are looking for upgrades. Next to the kitchen, it is an area of the home that is used often. An outdated bath is an eyesore to a buyer. Updated paint, trim, vanities and showers make a world of a difference.

It is also important for the outside of the home to be manicured. Spending money on new landscaping and outdoor fixtures is crucial. Curb appeal is the first thing people see and can be the first impression that a buyer can’t look past.

Selling the Home

Once the home is sold, all of the hard work will be worth it. Selling your house quickly should be a priority as the longr you are in it the more overhead you will have.

XTrade Europe’s Market Predictions after the 2016 US Elections

A Look at History: The Election Cycle

Many economic and political analysts, including financial experts from XTrade Europe all agree that the outcome of the 2016 United States Presidential elections will have a lot of impact on a global and domestic scale.

Looking at historical data, it actually does not matter in the past whether a Republic or Democrat occupies the White House.  It does not significantly impact the US dollar’s stand on the Foreign Currency markets and it does not have a significant impact on the US equity markets.  If you are a trader who relies heavily on historical data, this is good news for you. In fact, various XTrade Europe researchers point out that election years actually coincided with favorable markets.  Many experts say that based on the events that happened in past presidential years; the effects on the market had nothing to do with who wins but the economic backdrop at that particular point in time.

However, there is also strong data that suggests that markets are significantly stronger when there is continuity.  This means that in years when the incumbent is sitting for his second term, the market averages increase.  Investors and traders lean more towards continuity if the actual economic and trading policy of the incumbent is favorable to the market.

XTrade Europe’s Market Predictions

Since this is not a continuity year, XTrade Europe financial analysts believe that there is still no guarantee on what will happen after the 2016 presidential elections.

When it comes to the stock market, certain stocks will not be affected with either with a Trump or Clinton victory.  As much as there are stocks that will not be affected, there are definitely investments that could be negatively affected.  For instance, if Trump wins, he will be opening trade agreements for American workers, and impose tariffs on goods from China and Mexico. If this is the case, many investors will veer away from multinational corporations, especially from countries where huge tariffs will be imposed upon under the Trump administration.

When it comes to the value of the U.S. dollar, technically it is not the new president that will affect its value.  However, when the Republican Trump wins, it means a change in party and many changes in trading policy, which may affect exports.  Trump is on the record as saying that he wants to change many trading policies. This might mean fluctuations in the US dollar, but the long-term effects could be favorable.

No matter what happens to world financial markets, there are still strong sectors that traders should consider.  These sectors will certainly grow stronger no matter what the political state is.  According to XTrade Europe, digital products, cloud technologies, and cyber-security will continue to gain.  It is wise to invest in companies within these sectors.  Another bright spot in the future is the big percentage of the retired and ailing baby boom generation spending trillions of dollars on health care, leisure, and hospitality.  These are some things that traders can consider when they decide where to put their money when they are trading online.