Having an investment plan is crucial as you proceed in life. Getting old is mandatory, and one day you will retire from that Malaysian job you have. An investment plan will determine whether you have money to sustain you after you retire or whether an empire will grow out of the investment plan. 

Below is an overview of make the best investment plan in malaysia.

Tips to Follow To Ensure You Plan Is Successful

Invest In Several Different Plans

When you start investing, become open-minded and look for other opportunities of investing. If you have a real estate business, why not invest in the property moving business. You are already in the industry, why not maximize returns? Investing in different plans also tends to protect you from complete losses. If one plan fails, you should have other plans to support you.

Drop Discretionary Spending

One thing big companies strive to do is to cut costs to maximize profits. How do they do this? Through cutting money-draining expenses, the company will cut cost and generate more profit. If you have an expense which is unnecessary, redirect the finances to investments, and this may turn out to be, a profitable move for you. Always keep in mind that expenses drain you.

The Earlier, the Better

Early investment is important. So for any young Malaysian out there, investment should become your goal. There is no young age for you to start investing. If you keep postponing investment, you will never save. It is the power of procrastination. The moment you start earning those ringgits, think about investing a certain percentage and not just consuming blindly.

Do Research and Understand the Sector You Want To Invest In

Okay, even if we keep shouting invest, taking a blind step is a dangerous move for you. Before making an investment plan, research and understand what you are getting into. Get professional advice and look into the options offered. Doing this will help you come out as a winner, not a loser.

What Areas Can One Person Can Invest In?

In this age, there are several sectors which are bringing profit to people without much sweat. They include:

Real estate business

Something which is special about this business is the fact that every coin you invest, appreciates. Buying land and building residential and commercial buildings in Malaysia is becoming a profitable business. If you have money, don’t hesitate to invest in this sector although, starting up can be a challenge.

Stock market business

Come out of the cocoon and diversify yourself away from Malaysian borders. Stock business is a sector which is bringing profits and making people rich daily. It takes time to learn, but once you get the hang of it, it becomes a profitable business for you.

Fixed deposit investment

Fixed deposit is not hard to understand, and it only requires you to provide money to finance it. The risks involved are minimal, and you can be sure of profits for the period invested. However, profit not high.

Conclusion

Investment is something you begin learning about once you hit your 30’s because of ignorance or lack of a learning opportunity. In this era of internet younger generations are informed. Once you hit the age of earning Ringgits, make a point of making an investment plan.

What Do You Need to Know Before You Make the Best Investment Plan in Malaysia? is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

I knew this guy in high school who had gray hair. High school? I mean this guy was 17 years old and he was already starting to look like that guy on Mad Men. It could have been hormones or even just the pigment in his hair, but in any case, premature aging is no joke. When it comes to premature aging, I think one of the most common things that we think about is wrinkles.

Wrinkles are something that you can’t avoid; they’re going to show up eventually. But they are something the you need to deal with when you’re young, or least you shouldn’t. Follow these tips and you’ll be much less likely to develop wrinkles prematurely.

1. Wear Sunscreen With SPF Protection

This is a big one. SPF protection keeps those harmful UV rays from bombarding your skin and wearing it out. The sun is one of the leading causes of wrinkles, and it’s also terrible for your skin in many other ways as well.

Wearing sunscreen even in the winter is very important. Just because the sun isn’t out doesn’t mean that UV rays aren’t hitting your skin.

2. Stop Smoking

Smoking can be very harmful for your skin. Ask any doctor and they will tell you the same thing – smoking gives you “smokers lines.” The problem areas include: around the eyes, around the lips and in the middle of your forehead. If you’re a smoker it’s only a matter of time before these lines start to show up!

3: Consider Wearing Eye Cream

Your eyes are one of the 1st places that wrinkles show up. “Crows feet” are extremely common and one of the ways that you can prevent them is by applying an eye cream. This cream should have a moisturizer in it and if it works correctly it will also prevent those dark circles that you get in the mornings from showing up.

This is one place where I will splurge. Because the cream gets so close to your eyes, you don’t want to buy cheap product.

4. Practice Proper Skincare

You should always, always, always moisturize. When you get out of the shower, apply a thin layer of a high-quality moisturizer to your face. Also, avoid pore-refining cleansers that have alcohol in them. These cleansers will dry out your skin and leave you vulnerable to blemishes and generally make your skin look older. When your skin is dry, it will develop wrinkles much easier.

5: Avoid Stress

If only it was as easy as it sounds, hey? But in reality, stress is one of the causes of wrinkling and pre-mature aging. Stress causes us to release a hormone called cortisol that clogs our pores and makes our skin age quicker. It’s always a good idea to exercise regularly and have decent stress management techniques that you use so that you don’t become overwhelmed and start showing the signs physically.

Nothing is wrong with wrinkles and in fact, I think aging can be beautiful. You can be completely sexy with gray hair and wrinkles and all the other signs of someone who’s aging a bit. However, if you want to hold that aging process off at bay a little bit you may want to follow the above advice.

What do you guys think? What do you do to keep your skin looking healthy and young?

How To Avoid Premature Wrinkles is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Banners are one of the most common and effective ways to tell people about a company and its products, services and upcoming promotions. They are cheap and highly customizable; moreover they can be put up in places which attract maximum eyeballs. There are plenty of banner types available for marketers to capitalize on.

With such wide range of options available to advertisers, it has become a tricky aspect for companies to choose the ones that would best suit their business needs. While advancing printing technology has provided creative freedom on one hand, it has also created many loopholes that companies can fail to identify, according to backdrop printing experts at Print Banners.

Hence, it is essential to identify the different types of banners that can be used for marketing purposes; their appealing features and limitations.

Custom Vinyl Banners

Mostly used for their durability aspect; which gives a marketer immense freedom to put them up in unlikeliest of places. If you are printing custom vinyl banners, know that they are heavier as compared to others and can develop creases if not stored properly. Nowadays, vinyl banners come with LED light backdrop to enable attractive digital signage.

Fabric Banners

From custom computer printed cloth backdrops to polyester or satin banners; there are plenty of options available today. They are used for stunning colored graphics; perfect for trade shows, grand openings and presentations. Machine-washable and crease-resistant, unlike the vinyl options, they are good choice for companies that want cost-effective solutions in the smallest time-frame.

Step and Repeat Banners

In case you need custom neutral backdrops for both walls and trade-show booths, step and repeat banners could be the solution. They allow teams to cover up garish and boring backgrounds, so that the audience doesn’t get distracted in keynote speeches and product launches. The company’s logo or pictograph can be incorporated on these banners; to be used in as many events as necessary.

Mesh Type

The permeable fabric in mesh banners, allow wind to easily pass through lifting it up like a sail. One of the best things about this option is its use in harsh climatic conditions; for example a stormy weather. They also look good in high-rises.

Pull-Up or Retractable Banners

Having a retractable set-up makes them for creating instantaneous custom backdrops. They offer double-sided view; which is good for events like trade shows and employment fairs. Pull-up banner stands tend to be around six-feet tall, with customized width options. They are easy to collapse and transport, as compared to pop-up displays.

Suspended or Handing Type

Such banners use cables and rods to have a display above the crowd. Although the installation of such suspended displays takes more effort, they help increase visibility. These can be of any shape or size, depending on the location.

These were only some of the banner types, among many options available today. To decide on the best solution, a marketer needs to have a clear understanding of the budget, location, target audience, brand image and messaging.

Different Types of Banners Used in Events and Their Uses is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

You must have heard about spot forex trading and how people are investing in the venture. But what exactly happens at spot forex trading? Well, this simply trading in the currencies of the world.

It has a very simple principle behind it. You purchase a currency when it’s low and trade off another currency when it’s high. You then make a profit from the balance.

When it comes to making investments, spot forex trading is getting mainstream. The preponderance of people are including novice investors are finding forex trading to be a more promising venture compared to than trading at the futures market or stock market. And there are very good reasons for this turn of events. Below are some of the compelling reasons informing spot forex trading.

Low Capital Requirement

To get into the forex market, you don’t need to have a huge fortune. This is unlike other forms of financial investments that require substantial amounts of money. Consequently, spot forex trading is becoming the new choice of investment for the majority of average players. Initially, the forex market was highly dominated by the large multinational banks as well as major financial institutions.

With such a climate, it seemed like a preserve of the established financial institutions, and smaller investors didn’t feel like they stood a chance to begin competing. Today, however, there are several online platforms that can help you get started with forex trading. This means that anyone with some amount of cash can register with one of the platforms; BYFX GLOBAL OTC foreign exchange services, for instance, and starting trading on foreign currency. You are allowed to play with any amount of cash you feel comfortable about.

Easier Operations

No one can really tell how long forex trading has been in existence. Due to the long history of this trade, the practice in forex markets has become highly standardized by now. This is even coupled with modern technology that has revolutionized how investors today can trade in the market. This has really helped to make the operations at forex trade simple and straightforward for an investor at whatever level.

There are automated systems in play today, which go a long way to enhance the experience at forex trading. You can monitor the market constantly which allows you to make quick transactions. You can also get the complete statistics to your trade anytime you feel like. With a system like the BYFX GLOBAL OTC foreign exchange services, you can make money anytime, whether you are at the table eating, in bed or running other errands.

Dynamic Market

The forex market is on 24 hours a day and 5 days every week. Within this period, there’s often a lot happening. You will find opportunities to leverage on coming up every day so often and the system don’t stop turning up. In other words, this exciting market does not give you room to be inactive.

It is important, however, that you need to focus in order to be successful. This means being responsive to the new events turning up.

Why the Forex Market Has Become Mainstream is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Medicare is a federal program run by the state, which aims to provide low-cost or even free health coverage to low-income beneficiaries. Qualified applicants can receive Medicare benefits depending on the level of their income and resources, and other options such as supplemental plans and Medicare Advantage plans are also available.

To find a suitable Medicare plan 2019 beneficiaries can just use an online tool that uses specific information about the person to find the right plans for him or her.

If you want to choose the Medicare coverage by yourself, you can do that too. Just make sure you account for the following factors so that you too can find the right plan.

Costs

The costs refer to the premiums you have to pay each month, along with the deductibles, co-pays, and co-insurance expenses you have to pay out of pocket when you receive healthcare services.

In Original Medicare, the premiums are very low. However, there’s no limit in how much you have to shell out for out-of-pocket expenses per year unless you get some sort of supplemental coverage that offers a limit.

In Medicare Advantage plans that include both Original Medicare and supplemental coverage, there’s a yearly limit. Once you reach this limit amount, you won’t have to pay anything else for the healthcare services you receive.

Coverage

The right kind of coverage is crucial, because you want to cover the services that you know you will need. On the other hand, you don’t want to increase your premiums paying for coverage you don’t need.

The Original Medicare coverage is pretty basic with its Part A (hospital insurance) and B Coverage (medical insurance). Many find the coverage inadequate, which is why they may spring for supplemental coverage.

You can also go for Medicare Advantage plans instead, which offers additional coverage benefits such as vision, hearing, and even dental services. You can pick and choose the kind of additional coverage you want included in these plans that aren’t part of Original Medicare coverage.

Compatibility with Your Current or Supplemental Plans

If you have another health insurance plan while you also have Medicare, you need to make sure how your other plan works with Medicare. If you have Original Medicare, you can supplement the coverage with Medigap policies. You can’t get a Medigap policy for a Medicare Advantage plan, as this type of plan already has supplemental coverage in addition to Original Medicare coverage.

Prescription Drug Coverage

This is the Medicare Part D coverage that many people obtain in addition to original Medicare Part A and Part B. It is also included in most Medicare Advantage plans, but if it isn’t included in yours you’re allowed to get a separate Part D coverage.

This is a crucial coverage to obtain when you’re a senior citizen or you have a chronic ailment. The cost of prescription drugs can be overwhelming without financial assistance from insurance.

Doctors and Hospitals Choice

In Original Medicare, you can go to any doctor as long as they accept Medicare. On the other hand, some Medicare Advantage plans require you to only seek healthcare services from their network of doctors and hospitals. However, other Medicare Advantage plans do allow for out-of-network coverage.

You should then check out how close these network doctors and hospitals are to your home. You should also try to gauge the quality of care you will get from these network doctors and hospitals.

Travel

What happens if you travel a lot? What if you require medical services when you’re out of your home state or out of the country? In general, Original Medicare doesn’t cover healthcare expenses outside the country. Even most Medicare Advantage plans have the same limitation. However, there are Medigap policies for foreign travel emergency care.

With all these factors considered, you may then find the most suitable Medicare coverage for yourself.

How to Find the Right Medicare Plan for You is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Most financial gurus would tell you that you should start investing in your 20s. While this is great advice, the reality is that a lot of people are unable to do so. This is usually because you are not making enough money and are still burdened with a number of financial obligations.

However, at some point in your life, the winds are going to change and you will find yourself with some extra money. The good news is that just because you are a bit late in the game doesn’t mean that you can’t experience the same benefits as younger investors. As long as you know how to go about investing, you are sure to live quite comfortably off of your profits.

Understand Your Financial Commitments

Before you start investing, you should understand what your fiscal commitments are. This should be on a short and long-term basis. Even if you are living as frugally as possible, there are still expenses that you need to pay for. On a month to month term, this could be your mortgage. In a few years or so, you may still be on the hook to pay for your children’s college tuition or even help out with their weddings.

So, you should take all these things into consideration before you begin investing. This will help you build a much better picture of just how much you can afford to utilize on your investment ventures.

Invest More Now

Even though it is technically never too late to start investing, you will still have to make up for lost time. If you hope to make the kind of profits that would make your retirement a great deal more comfortable, you may need to increase your investment capital.

This begs the questions, how do you invest in stocks? And how much should you invest? Depending on your age and current position in life, you should attempt to invest at least 12 percent of your income. If you have high financial goals, you may want to increase to around 15 percent.

Secondly, you should build your portfolio according to the level of risk you can incur as well as your expected rate of return. If you want to balance risk with reward, it is advisable that you consider a rate of return of about 6.5 percent each year.

Focus on Stocks

Most experts would agree that you should stick with stocks if you are an older investor. This is because it works well for anyone who is not planning on withdrawing profits from their current investments.

Also, since there are probably quite a few years left before you need to retire, you will be able to stay put on your position, regardless of the highs and lows your investment is likely to experience. It should also be comforting to know that many well-reputed retirement funds are currently tied up in stocks. The good news is that there are actually a number of choices you could choose from, including marijuana stocks. This way, you will be able to settle on a highly profitable avenue.

Your Guide for Investing Late in Life is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Having an investment plan is crucial as you proceed in life. Getting old is mandatory, and one day you will retire from that Malaysian job you have. An investment plan will determine whether you have money to sustain you after you retire or whether an empire will grow out of the investment plan. When you decide to make an investment plan, the question of ‘how do I go about it’ arises. Below is an overview of make the best investment plan in malaysia.

Here are some tips to follow to ensure your plan is successful.

Invest In Several Different Plans

When you start investing, become open-minded and look for other opportunities of investing. If you have a real estate business, why not invest in the property moving business. You are already in the industry, why not maximize returns? Investing in different plans also tends to protect you from complete losses. If one plan fails, you should have other plans to support you.

Drop Discretionary Spending

One thing big companies strive to do is to cut costs to maximize profits. How do they do this? Through cutting money-draining expenses, the company will cut cost and generate more profit. If you have an expense which is unnecessary, redirect the finances to investments, and this may turn out to be, a profitable move for you. Always keep in mind that expenses drain you.

The Earlier, the Better

Early investment is important. So for any young Malaysian out there, investment should become your goal. There is no young age for you to start investing. If you keep postponing investment, you will never save. It is the power of procrastination. The moment you start earning those ringgits, think about investing a certain percentage and not just consuming blindly.

Do Research and Understand the Sector You Want To Invest In

OK, even if we keep shouting invest, taking a blind step is a dangerous move for you. Before making an investment plan, research and understand what you are getting into. Get professional advice and look into the options offered. Doing this will help you come out as a winner, not a loser.

What areas can one person invest in?

In this age, there are several sectors which are bringing profit to people without much sweat. They include:

Real estate business

Something which is special about this business is the fact that every coin you invest, appreciates. Buying land and building residential and commercial buildings in Malaysia is becoming a profitable business. If you have money, don’t hesitate to invest in this sector although, starting up can be a challenge.

Stock market business

Come out of the cocoon and diversify yourself away from Malaysian borders. Stock business is a sector which is bringing profits and making people rich daily. It takes time to learn, but once you get the hang of it, it becomes a profitable business for you.

Fixed deposit investment

Fixed deposit is not hard to understand, and it only requires you to provide money to finance it. The risks involved are minimal, and you can be sure of profits for the period invested. However, profit not high.

Conclusion

Investment is something you begin learning about once you hit your 30’s because of ignorance or lack of a learning opportunity. In this era of internet younger generations are informed. Once you hit the age of earning Ringgits, make a point of making an investment plan.

What Do You Need to Know Before You Make the Best Investment Plan in Malaysia? is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Traditional publishing can take a lot of time, and also includes a myriad of changes, additions, and edits. If you want to publish a book in a less traditional way, here’s a guide to self-publishing.

Decide How You Want to Publish

Even when you self-publish, you can choose between publishing your new book as an ebook, printed copy, or even both.

Deciding how you want to self-publish your book will help you narrow the tools and systems you need to use. While there is no wrong way to self-publish, this is typically the first step to take once you’ve created your book.

Hire a Freelance Editor & Freelance Designer

If you were to hire anyone to help you self-publish your book, your best bets would be a freelance editor and designer. While you don’t have to spend a small fortune, hiring a great freelance editor and designer can take your book to the next level when self-publishing.

Not only will a freelance editor check for mistakes, but they can also help make sure that your book flows well. Because first impressions are so important, especially when it comes to gaining the eyes of avid readers, a freelance designer is also a great choice.

While traditional publishing houses will have this price built into the price of selling a book, self-publishing is a different field. You can always find someone that is affordable, while also delivering great results. Asking for referrals, offering bartering services, and even a quick Google search can help you find the right freelancers.

Beta-Test Before Self-Publishing

When you are self-publishing your own book, you won’t have a lot of eyes skimming through it to make sure that it flows well and doesn’t have any grammatical errors. This is where beta-testing comes in.

You can find beta readers in places like Facebook groups, book clubs, or even by posting on social media that you’re looking. These readers will then go through your book, let you know what they think, and give you the opportunity to make it better.

Use a Self-Publishing Platform

While you are free to self-publish on your own website, a self-publishing platform can help you take your book to the next level. Not only do they help with formatting your book, but they also help market your book on multiple websites, including websites like Amazon.

Some of these platforms will charge monthly, and some charge when you actually sell a copy of your book. It’s important to choose the platform that works best for you and what you can afford. For example, if you plan on selling your book casually, a monthly payment service may not be the best option.

However, if you plan on marketing your book and selling quite a few copies, or if you plan on selling physical copies, a monthly service with lower book sale fees may be your best bet.

Use Social Media to Your Advantage

If you have a website and social media channels, now is the time to use them to your advantage. Post about your process, progress, and when your book is actually released. Build a hype around it. Network and have your friends, family, and colleagues mention your book too (if they’re comfortable with it).

Using social media to your advantage can mean your self-published book is a success, and also brings you more in sales over time. Social media can be your best friend, and it’s free marketing for your book, so be sure to use it.

Self-publishing doesn’t have to be a daunting and hard process. With technology, it’s now easier than ever to publish your first, or multiple, books.

The Smart Entrepreneur’s Guide to Self-Publishing is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

Marriage is a big deal. Even though movies and pop culture make it seem as if you can just get married and not worry about anything bad ever happening, the truth is that around

And did you know that one of the most common reasons for divorce is finances? So instead of getting married and divorced over your financial situation (or beliefs), here’s why you need to talk about your finances before getting married.

Shows Your Money Personalities

You’ve probably heard about the spenders and savers, but there are also other money personalities. There are people who are in between a spender and a saver, who like to save money but don’t mind splurging on the things that they love and care about. There are people that are on the extreme spectrum of being a saver, and they will hoard massive amounts of money in fear. There’s even the type of people that you would consider “minimalists” in which they spend what they need to survive, and donate the rest.

While none of these personalities are necessarily bad, they can clash if they are met with someone with a completely opposite personality. If you’re a saver but your future spouse is an extreme spender, you may run into a lot of financial fights later on down the road.

When you talk about your finances before getting married, you are able to see each other’s money personality and figure out if you mesh well together.

Helps You Realize Strengths & Weaknesses

Do you find yourself scared to spend money in fear that you’ll need it one day? Does your significant other budget really well? Talking about your finances before getting married is a helps you realize both of your strengths and weaknesses.

Everyone has their strengths and weaknesses. But it’s important for you and your partner to know about each other’s and be able to work through it all together.

Avoid Awkward Conversations Later

What would you do if you got married before you realized your partner had $100,000 in student loans? What would you do if they didn’t plan on paying them off? For some people, this may not be a problem, but for others, this could be a huge deal. You may feel left out, or feel like your partner lied. You’ll wonder if these loans will put a damper on your savings or retirement. You might just be plain mad about it.

When you talk about your finances before getting married, you’re saving yourself the time and awkwardness of finding out the “secrets” that your partner may be keeping from you.

Allows You To Get On The Same Page

If you talk about your finances before getting married, you’re getting everything out in the open. This allows you and your partner the opportunity to get on the same page. Some couples like to combine finances, some don’t, and neither are wrong. But when you and your significant other can come to an agreement and know what is expected of you both, you’re able to go into marriage a lot more confident in your finances.

Keeps You From Taking Things Too Far

You should never base the happiness of your relationship on money alone. However, If you’ve talked about your finances with your partner and realize that you two aren’t compatible with each other, you can take that chance to end your relationship before getting too serious. No one wants to be left in a house they can’t afford. No one wants their credit score to drop and have debt up to their eyeballs because of a divorce.

When you talk about your finances before getting married, you’re giving each other the opportunity to walk away NOW. Before things get too serious and finances become intertwined.

It’s important to talk about your finances before getting married. It can save a lot of hassle and keep you from fighting over menial finance problems in the future. Talking about money doesn’t have to be hard. In fact, it should be one of the most important things to talk about before tying the knot.

Why You Need To Talk About Your Finances Before Getting Married is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

The first question is what does risk management mean in the trading industry? This is best described as the method you would use to safeguard your trades in the financial markets.

The second question is: why is it important in trading? Risk management helps you define future objectives and minimise losses. If objectives are defined without risk consideration, sudden price moves could take you by surprise and disrupt your trading strategy.

A successful risk management strategy is fundamental to protecting your trading profits. If you keep losing money, you will eventually become discouraged and stop trading.

There are numerous techniques you can use to read price movements in the financial markets. These will go a long way in helping to ensure that you’re able to continue trading the markets.

What is leveraged trading?

Leveraged trading means you can trade using margin. This is to say that with certain forms of trading, you can open a position by depositing just a percentage of the full value of your trade.

Learning CFD trading and spread betting are two examples of leveraged financial trading. This is in contrast with more conventional forms of trading, such as share trading. In its simplest form, when you trade shares, you would have to deposit the full value of your trade to open your position.

Trading using margin or leverage can magnify your gains. The key risk of leverage, however, is that it can also magnify your losses in the exact same way.

Common types of trading

There are various forms of financial trading for you to choose from, depending on your trading strategy. These include spread betting, CFD trading and share dealing.

Spread betting

Spread betting is offered only in the UK and Ireland. It is a leveraged product that enables you to profit from fluctuations in the price of a financial asset. You can take a position on hundreds of financial instruments across numerous asset classes. These include forex, commodities, indices, as well as thousands of global shares.

With spread betting, you can speculate on rising as well as falling market prices. When you think the price of an instrument will rise, you buy. If you think it will fall, you sell.

CFD trading

Like spread betting, contracts for difference (CFD) allow you to trade the markets by depositing a small portion of the total trade value. Your profit or loss is determined by the difference between the price at which you enter and exit a trade, multiplied by the number of units you have bought.

Share trading

A stock (also known as share) market is a secondary market, where you can buy or sell shares.

When you buy a share on the stock market, you are buying it from another existing shareholder. Likewise, when you sell your shares, it is not back to the company – but to another investor.

Most forms of trading are now available online. You can trade shares, currencies, commodities, CFDs as well as spread bet online using a trading platform.

How do stop losses work?

A standard stop loss closes a losing trade after the market passes a pre-defined trigger value set by the trader. This helps you to reduce losses and safeguard against risks. This method is not always foolproof, however. During times of market volatility, your trade could be closed at a level that is worse than your trigger value. This happens because prices can sometimes jump from one level to the next, without actually passing through the level in between. This is known as ‘market gapping’.

Some traders prefer to opt for a guaranteed stop-loss order (GSLO) to protect their trades against gapping. Working in the same way as a standard stop loss, GSLOs guarantee to close your trade at the trigger value you have set. This extra security is not always available on all markets, and comes at an additional cost.  

What is a take-profit order?

This is about understanding how to exit the market when it is appropriate. A take-profit order closes your trade once it reaches a certain level of profit as defined by you. A take-profit order used in combination with a stop loss can help you to define your risk:reward ratio.

Using a risk:reward ratio

Using a risk:reward ratio can help you strengthen your trading strategy. It can compare the expected returns of an investment to the amount of risk undertaken.

To be considered useful, a risk:reward ratio should be used with a take-profit order. It should take the monetary value from each trade into account to offer a proper assessment of your portfolio.

Do Not Forget to Think About Risk Management When Trading is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.