A Guide To Online Trading For Beginner Investors At XTrade

by Kaylie Phelps

If you feel overwhelmed trying to learn online trading strategies, just think about how the stock options and Forex guys at XTrade feel. There are some options trading strategies with some odd names, and Forex IS as complicated as quantum physics. Maybe I’m old school, but the stock market itself is where the thrill is for me, and there is plenty of money making moves to pursue, without subjecting yourself to gambling-style investment ethics.

Your Online Trading Options

Do you think Warren Buffet invests in Forex? He surely plays foreign markets in one way or another, but the man isn’t a day trader. He’s the buy and hold strategist after all. It’s not just trading strategies but stock market terminology you must learn. Are you familiar with penny stocks? I can tell you 100 percent that I have made good money on online trading at XTrade, but buying penny stocks isn’t always going to be the best strategy. Remember that a penny stock is any stock under five dollars, not just stocks for pennies that are under a dollar.

Still, if you talk to the people that invest in penny stocks, you’ll find that most of them are aggressive investors leaning towards not just the stocks under a dollar, but the stocks selling for a few pennies. If you want to buy a share of Warren Buffet’s company, you can do so for thousands of dollars. That’s how much one share costs. In between there somewhere is the answer, and as you can see I’m painting a picture for you so that you can use the right approach to the stock market.

Which stocks should you buy? The first thing you should understand is that no individual stock should ever be purchased without you having personally researched it yourself thoroughly. Yes you want to know what other people have to say, and that definitely includes the investment analysts. Now, since you want to have thoroughly researched each move you make with stocks, it’s a good idea to invest in stocks that interest you.

Trading With XTrade

Online trading with XTrade of course provides you with many advantages. When I started trading, online account access was just becoming an important feature to investors. However, it was nothing like it is today. There are all kinds of platforms to choose from, and the key to online investing is taking advantage of minimizing commissions.

There are expensive investment options online, so don’t be fooled that each opportunity is cheap, just like you wouldn’t be fooled that each investment choice is wise. While you keep those commissions low, make sure you choose a brokerage that makes a platform available to you that is very user-friendly. If you’re not comfortable with your account dashboard, and trust me I’ve been there, then you need to choose a different brokerage. So far, I’m happy with XTrade and don’t plan to move any time soon.

I’ve mostly had great experiences online trading, but this one website for a particular brokerage was a little wacky. Other than what I’ve told you so far, I’d go with Warren Buffet’s buy and hold strategy, and the only other thing you need to remember is to choose wisely and always diversify, re-balance your portfolio and re-invest dividends.


Five Ways Your Savings Account Is More Than Just a Savings Place

by Mrs Money

Given all of the advantages that come with a savings account, the name ‘savings’ account can be misleading for those deciding whether to use one. Understanding some of the benefits to opening one can ensure that you get the most out of the money you put in the bank. Here are five ways to get more out of using a savings account today:

Compound Interest

It may seem that the interest earned on savings is insignificant; however, the returns grow over time. The totals can add up very quickly and turn into what is called compound interest. Essentially, this can be understood as interest earned on the interest you have already earned. For example, if you earn 5% interest on 100 dollars for a year, the 105 dollars you then have earns 5.25$ over the next year. This continues to grow exponentially, turning the five dollars into almost 1,000 dollars over the course of 40 years.

The 72 Rule

An easy way to see the power of saving is to understand the so called “rule of 72”. The formula allows you to calculate how long it will take a given amount of money to double when held in an interest bearing savings account. Just divide 72 by a given interest rate. For example, at the average savings rate of 5%, divide 72 by 5. This tells you that it will take 14 years to double your money at five percent interest.

Big Returns

14 years may seem like too long of a time for most people, however, the rule does not account for those that continue to add more funds. By growing the total of your account each year, you will see the rate of growth increase greatly. For example, if you take our original amount of 100 dollars at 5% interest once more, and add 50 dollars each year for 40 years, you will reach over 9,000 dollars and earn over 500 dollars in interest a year.

Saving Instead of Spending

Having a savings account should not be limited to a storage place for your cash. Rather, it should help facilitate a budget plan. For example, rather than purchasing a new product with loan money or credit, save the money in an account until you can buy the product directly. This habit can help save big money, especially if you do not mind waiting to buy it at a future date.

Choosing the Right Account

Take advantage of all the benefits of saving by choosing a savings account that best fits you. Many are not aware that accounts differ in terms of fees, withdraw or deposit policies and transfer costs. If you tend to make frequent withdrawals, it is important to know that some banks charge fees for excessive transactions and ATM usage. Be sure to speak with the account provider about maintenance fees or other charges that will hurt your balance. Calculate the annual percentage yield for each account you check. When you find the right one you will be one step closer to financial security.

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