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Here are the Things that the Market Does Not Care About

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Periods of either bull or bear market can happen on any occasion. But did you know that the market does not really care about labels or the things that might transpire in any given moment? In this article, you will be presented with a list of what does not the market care about.

  1. The cost basis you made about a certain investment

In reality, the market does not care about how much you have paid for a certain stock. You can pay a stock for a particular price and the market would not even care about it. What matters is that you know how to manage your stock and recover from any losses, especially if you have paid for a stock the wrong price compared to its potential and performance.

  1. The moment you begin investing or your retirement timetable

Unfortunate as it may seem, but the market is not bothered about your investing life cycle. Hence, the period you started to invest your funds in the market as well as your target retirement, or the time you need to withdraw your money. Such timetable solely depends on you and not on the market.

  1. The target amount of returns you are eyeing for

The market does not care about your target returns. If you are looking forward to hitting your financial goals, it will all rely on your investing skills and not on the market itself.

  1. The feelings you feel at the moment

This might be somewhat harsh but the market does not really care about your emotions. It has no sympathy about your feelings – whether you feel scared, nervous, excited or greedy.

What you need to consider in the market is that you do not have to take everything too personal as it can hinder you in making good decisions for your positions. Remember that money is at stake every time you make your move in the market.

  1. The strategy you employ

It does not mean that you have a more complex strategy than the others it makes you better than the others. Strategy is important but what matters the most is that the strategy you have is applicable to the market. The market does not give any sort of bonus award or points for the level of difficulty or sophistication of the strategy you are using.

  1. The quotes you believe and apply in your life

There are a number of great investors out there who can both inspire and motivate you as you are into the field of investing. But you have to remember that these quotes do not matter in the market.

Yes, it might be a good thing that you know such stuff; but the market is reliant on an investor’s performance and not with the number of quotations he or she believes in.

  1. The amount of experience you have in the market

Whether you are a newbie or an experienced investor, the market does not really care about it. Experience may help you with your decisions, but it does not guarantee 100% success rate. It also does not mean that you are a newbie, that you would be a failure in the field of investing.

Conclusion

The above-mentioned items are the things that the market does not really care about. What matters is that you continue to increase your learning about the market and apply it to your trading activity.

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The Reasons Behind Mergers and Acquisitions

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You probably have heard of companies announcing acquisitions of other companies or merging with other businesses and you might be wondering why other business owners agree with such offer. It is important to note that the primary motive lie in these simple phrases – and that is to make the most of shareholder wealth.

This post will unearth the other underlying legitimate reasons why mergers and acquisitions happen.

  1. Diversification

There are business firms that aim for diversification or a broader line of business and / or products. Sometimes a company merges with another company (of another industry) to diversify its line of business and / or business. The reason for this is to reduce the impact of that company to its own profitability.

It is like scattering its eggs, instead of putting all in one basket.

  1. Refining Business Focus

Also, there are cases when a company merges with other companies having a deeper and wider market penetration which is essential for business operations. 

  1. Amplify Supply-Chain

When a company decides to buy one of its suppliers, it is able to both eliminate a percentage of costs (margins that the supplier adds to its costs). In addition, a company may also choose to buy one of its distributors for it to cut to a lower cost the shipment of its products. 

  1. Collaboration

This is also considered as synergy. As the Merriam-Webster online dictionary defines the word synergy, it means a combined action or operation which is considered as a mutually advantageous conjunction of elements. When synergy is given emphasis in mergers and acquisitions, the idea is that when businesses combine with one another, the opportunity to increase performance is boosted. It is also a way to decrease costs of a certain company.

Generally, a company will merge with another one if its strengths complement its weaknesses.

  1. Growth

Mergers provide the acquiring company the chance to grow its market share even without putting much effort in doing the work themselves. A company may choose to buy a smaller competing company and authorizing it to produce more products and sell more to its loyal customers.

It can also mean a move to improve the financial stance of a certain company, especially if a company is in a deep financial problem, it may opt to look for another company that is willing to acquire it – just to go out of bankruptcy. 

  1. Eradicate Competition

A lot of mergers and acquisitions activities permit the acquirer to eliminate competition and increase market share of its products’ market. However, in order to convince the target company’s management to accept the offer, a large amount of money is needed.

Conclusion

Mergers and acquisitions happen since companies are after following key reasons: to protect their own business, to improve the strength of their business and to boost business profits. Nevertheless, just like any complex decision mergers and acquisitions can be either successful or disastrous – yet this depends on the strategies put in place by the collaborating companies.

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Tips to Put in Mind When Dealing with IPO Stocks

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A number of people say that buying IPO stocks is an exciting part when investing in the stock market. In order to make better investment decisions, it is important that one reads investing guidelines and know-hows. Analysis and understanding must be applied to better utilize your readings. If you are one of the people who are eyeing on investing in IPO stocks, written here are some tips you can take into consideration.

What is an IPO?

Initial Public Offering or IPO is the manner where the shares or stock of a private company is opened to the public. Usually, this is done by smaller, starting companies that seek to expand their capitals. For some cases, there are large private companies that would like to begin being publicly traded.

What makes IPO exciting?

Buying IPO stocks seem to attract the attention of both traders and investors in the stock market. Traders make the most out of the price rallies that follow after a company’s listing period. On the other hand, it is a chance for investors to be a part of a particular company’s beginnings until it grows massively in the market.

 

What are some of the tips that you can consider when dealing with an IPO stock?

1. Develop a plan.

Knowing your financial goals matters a lot. Yet, as your goals begin to unfold before your very eyes, planning is an integral part. Following a plan helps you to stay on track and recognize your stock market strategy.

It can also help you come up with an educated decision if you should buy such IPO stock or even deciding if you are going to hold it for a short, medium, or long-term period.

2. Do your research about the company.

In today’s social media age, cases of people giving in to herd mentality are increasing. There are people who believed instantly to an advice and then they get hyped afterwards. It is important to be cautious of stock market tips that you follow.

The best thing to do is to research and study the fundamentals of the company which will be out for an IPO. Is it a company looking for operations expansion or one that will use the money to pay enduring debts?

Consider a company that must qualify to any of the following: part of a growing industry, with good earning records, having a dependable management, offer top-quality and unique products and one having a robust balance sheet.

3. Steer clear of first day listing volatility.

Avoid buying shares during the initial days of listing as this period is usually volatile. Basing it from history, IPOs do trade higher than that of their offering price during such stretch.

For short-term traders, they will do their profit-taking activity after several days. The ideal period to buy the IPO stock is after the correction period where the stock has recovered.

Conclusion

When dealing with an IPO stock, a well-informed investor can outpace and perform better than the others. A number of companies go public every month, it is best to apply the following tips mentioned in this post.

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.

What Makes Financial Advisors Necessary?

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People usually take more time shopping for personal items than taking the time to find a trusted financial advisor. There are a number of notions about what a financial advisor is and what do they do. In this post you will be able to see why financial advisors are regarded as necessary.

Financial advisors specialize in a number of areas such as there are advisors which can help you when investing and building your portfolios and financial advising. Anyone, young and old, fresh graduate or even a retiring individual can benefit from having a financial advisor.  It does not matter how much money you have as long as you have the desire to better manage your money.

 

  1. Having a Financial Advisor helps you keep your focus and stay on the right track

They say that when you dream, it is completely alright to dream for the bigger things. Others might even go for their biggest dreams – and hey, it is possible. Aside from knowing yourself and utilizing your capabilities, your financial advisor can help you stay focus and stay directed on your goals.

Having a financial advisor helps you plot both of your short-term and long-term goals. It is necessary since people have the tendency to be swayed from one goal to another and in the end, nothing has ever been accomplished. They help you list down your goals according to priority and length of time needed to reach these. Concisely, financial advisors help you make an informed choice to avoid regrets in the future.

 

  1. Having a Financial Advisor gets your important questions answered

Over the course of your financial planning, you will be faced with tough questions or critical choices that you need to surpass to keep you going. One of the roles of a financial advisor is to help you pin down your pick and be confident enough that you made the right choice.

If you are wondering which of your options make more financial sense, you can always turn to your advisor. Searching in Google doesn’t always give you the answers that are appropriate to you and your situation. That is why financial advisors can have a significant impact on your future.

 

  1. Having a Financial Advisor unites you within and beyond yourself

 If you are single and you do not know what to do, financial advisors can help you connect within yourself. If you are married, and you might have a different reasoning with your spouse, they can act like money counselors. They get couples and the rest of the family on the same page. Everyone gets to share his or her financial goals and finding a common ground where they both can work on. Financial advisors can help find balance amidst divergent goals.

 

Conclusion

You don’t need to have millions to work on your financial plan and decide to have a financial advisor. Working with a financial advisor increases the chance of growing your wealth and ensuring that you put these into good use.

 

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.

Learn the Top Mistakes Investors Do

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For the fearful hearts keeping your money in cash and in the banks might be their idea of growing their wealth, but for the brave soul, investing in the stock market is their idea of wealth accumulation.

Fear would not take you anywhere. There might be unfortunate events that are uncontrollable, yet as it is always being said, increasing your knowledge and understanding about the stock market can help lessen the occurrences of unwanted incidents. Here are some of the top mistakes that investors tend to do and how you can avoid them.

 

  1. Not selling at the right moment

It is of utmost importance to know when to sell. This is the most difficult as an investor. You might be caught between selling winning investments too early and keeping losing investments with the hopes that they will soon recover. Thus, making you fear selling of stocks. To avoid such mistake, you have to establish an exit strategy and be alert if the market turns bearish.

It has been seen from history that during bear market stage even profitable companies can be severely affected. If you own a stock in a specific bearish sector, you should consider selling. No company would be safe from the growl of the bear. It is important to comply with the sale as to avoid losing money.

 

  1. Not applying objectivity

The opposite of objectivity as you know it is the quality of being subjective or being influenced by personal factors such as your feelings, tastes or opinions.

That is, being emotionally attached to your stocks might lead you to incurring losses in the end. As what experts say, only love a stock when it is making you money, and if it does not anymore generate anything for you, it is time to cut it off.

Also, it is a must to always base your decisions on reliable information rather than deciding based on emotions alone. It will produce remarkable results in the long run. Trading also using a proven methodology will prevent you from trading on emotion.

 

  1. Not taking into consideration earnings report

When you purchase a stock, you have to make it a point to be updated with the company at whatever form and cost. For publicly traded companies, they are required to announce their earnings report for four times annually. As an investor, you have to pay close attention to such events and use the following to your advantage.

Remember that it is already a bad sign when a stock fails to meet earnings expectations again and again.

 

  1. Not giving thought to high and excess fees

 

Fees are a form of spending that does not add any value to your investments. Actually, it detracts the long-term performance of your portfolio. You have to acknowledge that high fees cut your returns. Most of the time, investors tend to overlook this issue that fees can massively drag your portfolio.

 

Conclusion

Indeed, learning from the mistakes of others is one good way to avoid committing those mistakes yourself. The stock market is a complex system, you have to put in the time and effort to better prepare yourself. Always keep in mind that you have to avoid losses and take profits at whatever cost.

 

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.

A Must Know: Computing Your ROI

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One of the many essentials when investing is determining whether it’s all worth it by asking yourself the greatest question, “How much money did I make?” There are investors that do not do this basic stuff, maybe because they simply do not know how to or they do not know its importance.

In this article you both can uncover the importance knowing the basics of ROI as well as being able to compute it.

 

What is ROI?

This is a known metric or performance measure to gauge a certain investment’s profitability. ROI can help you sort out investments that are profitable and make a comparison with your other investments, too. It is just easy to compute and interpret, thus, you can apply it to a wide array of personal investments. It can aid you in making wiser decisions and moves.

 

Why knowing ROI is important?

ROI is important in knowing the efficiency on your investments. It aims to measure the amount of return in comparison with the investment’s cost. An investor cannot really assess his investments (i.e. stock, bond, rental property, collectible, option, etc.) without calculating for this one. It can give a concrete signal to any investor about the viability or practicality of a specific investment.

 

How to compute ROI?

When calculating ROI, the return of a particular investment is divided by the cost of the investment. The formula goes like this:

ROI = [(Gain from investment – Cost of investment)  / Cost of investment] x 100

Where, the gain of investment represents the proceeds acquired from the sale of the investment.

Or

ROI = (Net profit / Cost of investment) * 100

The results can either give you a plus or a minus. A plus (a.k.a. positive result) means profit while a minus (a.k.a. negative result) indicates a loss.

 

What affects ROI?

With the given formula, there is one factor that does not appear in the calculation that can greatly affect ROI. Truly, it is a performance measure that has a simple calculation. Investors should know that TIME is one major factor that must be considered. An investment might indicate a 1,000% ROI and another one reflects a 50% ROI. By merely looking at the figures, the investment with a 1,000% ROI is alluring; however, one must be able to consider the influence of time. What if the first investment takes 25 years to flourish whereas the second one just needs a month to pay off? Hence, time periods must be strongly considered, too.

 

Conclusion

ROI is a powerful and useful tool to assess your investments. It does not mean that an ROI gives you a positive result and you can stay complacent. It can still falter in the future. Expected ROI are not useful since there is no data to back it up.

 

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.

 

 

Earnings Release Week

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This week will be a busy week up ahead for the market community, a lot will be put in the spotlight but the one thing that will stand out is the geopolitical turmoil the US created after the strikes it made in Syria last week.

Financial Institutions and Banks

This will be the first of the big weeks in the financial market, and for this week, all the highlights are focused on the top financial institutions and banks. The scheduled reports for this week, this Thursday, are from prominent banks and financial institutions JPMorgan Chase & Co, Wells Fargo & Co, and Citigroup Inc.

The banks have been on a rollercoaster of a ride from the past months under the new Trump administration. Some other factors that may have triggered the fiscal stimulus hopes for the financial institutions are; deregulations talks and the Fed’s decision to be sterner and hiking the interest rate for a couple of times this week.

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Inflation off The Bat

There will also a big debacle for Friday because of the exclusive inflation data that will be unveiled; the data include whole March’s progress. With the Fed’s recent hikes and its latest meeting last Wednesday hinted that if the inflation data continue to roll, the central bank may and will increase another three or four interest hikes this year.

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G-7 Meets in Italy

The G-7 is a group of countries that consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These countries have started a 2-day summit meeting today in Italy after the alarming attack the US made against Syria, investors and the market community continues to keep track on what would happen in the growing geopolitical crisis.

Then entirety of the 2-day meeting is expected to be disclosed at a press conference dated this coming Tuesday Eastern Time.

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