Best Advice and Tips for New Stock Market Investors

The great news is that stock market investments are the best and most profitable type of investment and you can get in with just an average income. However, the bad news is that an increasing number of new stock market investors lost little income they had by making bad investments in the first couple of weeks than any other type of investors in any other kind of businesses. And there are several reasons why this happens but they can all be boiled down to a single cause: they did not do their homework; they just heard that the stock market can make for a very profitable investment and went for it.
With a little bit of risk and high-level background, stock market investments are something most people try to stay wary of. For individuals already used to investing in stock markets, reaping returns in the shortest time possible is their success mantra in life. While a number of people have witnessed considerable losses due to their bad choices in bad stock market investments.
It is imperative that you not just learn about eh current stock market trends but also educate yourself on the background, history, and working of the stock market environment. This will not only enable you to make a wiser decision the next time but will also help you with your future stock market investments with as much safety and as little risk as possible.
New Stock Market Investors
It is difficult to predict the stock market. You will never know how and when the numbers fluctuate. And how would you even know whether your preferred investment will actually reap the desired results without it actually turning into a major disappointment?
So let’s take a look at the four most important lessons for new stock market investors. Undoubtedly, these four basic points shall help you improve your investment decisions further and continue to attract profits and returns in the future.

Keep your calm and a cool head

If you are going to get into this business you will need to keep a very cold head and make the most boring plays in the stock market that you can think of. The problem being, of course, that many people get into this kind of investing because they hear the classic tale of someone who bought some shares, they doubled in value and they were rich overnight. And that is great but in order to hit that one in a million jackpot you will have to play the odds for a long time and in order to do that you will need to invest safe, allow the market to rise and fall and only make deals when they are most profitable.

Adopt the “dollar cost averaging” strategy

The dollar cost averaging strategy is basically a type of investment where you only use a set amount of money to buy stocks but you use them no matter what the status of the market is. This way you are forced to buy a lot of stocks when the market is low and fewer stocks when it is high and ultimately you end up having a rich and diverse stock portfolio.

Don’t invest unnecessarily

Another reason why people start investing in the stock market is that they somehow come into a large sum of money and they are not sure what to do with it so they believe that the best thing would be to invest. However, if you do not know what you are doing, if you have not studied the market or even if you don’t have the head for it, you may end up losing all your money or not generate any income with it. So remember that money is your friend and you don’t need to send your friend out to die in some reckless investments just to feel that you did something.

Study the soap metaphor

Anyone who has ever thought about investing has come over this metaphor by Gene Fama that “money is like soap”, meaning that the more you use it the less you will have. And what this basically says is that you need to allow your investments to mature and not rush to buy when you see that the market is falling and then sell as soon as it rises a bit. The real money is to be made when you plan to invest for the long-term and allow your investments to bring back more over a longer period of time.
These are a few yet basic steps that can help you better with your market investments. The key to successful returns through stock market investments is being vigilant and patient. Although an individual may never be able to understand the theory, calculations and logic behind good and bad investments, always indulge in a thorough research before making any kind of investment.

Receiving Small Business Loans Made Easy

Entrepreneurs with an already running business or looking to start one in Canada know how difficult it is to manage approval of small business loans from Canadian Banks. Most often you are turned down by them because of their overtly traditional outlook and strict rules.

A team of highly skilled and experienced financial management consultants are there to guide you and help you arranging loans upto 100% for small and medium scale enterprises across different sectors. Run by the Clifton Blake Group of Companies, WeCanFinancial offers loans for real estate development, IT, transportation and logistics, franchise, manufacturing, professional services and restaurants and bars.

Who can apply for these small business loans?

WeCanFinancial has laid down certain eligibility criteria and qualification parameters for entrepreneurs who can apply for small business loan. The primary one being that the medium or small scale enterprise running more than 1 year in the market with proven revenue generation can acquire loans for business development, new employee salaries, operating capital, professional fees, marketing campaign and acquisition of small office equipment.

The process is not as cumbersome as with Canadian banks. Here is a preview of other conditions and criteria for eligibility.

  1. Good credit history of the business owners with a BCN score of 650 and above
  2. Healthy net worth of the business owner, preferably more than the loan amount requested
  3. Confirmed revenue generation by the business verified by statements from banks and financial institutions.

WeCanFinancial provides small business loans in the following sector

For Restaurants and Retail it is mandatory to have a BCN score of 700+,minimum 30-50% self funding capacity from the required budget including choice of good location, choice of effective personnel, experience in the industry and carrying costs for the initial 6 months.

For Manufacturing Sector small business loans can be acquired for various purposes such as employee hiring, business promotion, short term cash needs, renovations, purchase of equipments and finance.

For Automotive Sector, small business loans are provided for renovation, heavy equipment purchase, long term and short term cash flow requirements and also for automotive repair shops, specialized mechanical shops, body and spare part shops and garages.

For already practicing and new Doctors and other professional services WeCanFinancial provides small business loans for new and existing practicing doctors for expansion, purchase of equipment, paying the supporting staff, renovation on leased premise, long term and short term cash requirements.

For IT Organizations, both existing and new can apply for small business for purchase of tangible equipment, renovations, short and long term cash flow and operating capital along with other business needs.

For Transportation and Logistics start-ups, money is required in the initial phases for buying new trailers, trucks, operating cash, marketing, expansion and renovation of existing premise or getting a new one.

Whatever your business financing needs may be, there is a wide range of options to choose from.

Crowdfunding or Traditional Funding: Which is The Best Bet for Your New Business?

One of the most important business decisions you make will be made before your business even opens. Settling on a funding source for your business can be a long, hard process, but it is necessary to choose the right one not only for your business, but also for yourself. In this article, you will learn the pros and cons of crowdfunding and traditional funding to help you decide which is best for yourself and your business.

Crowdfundingis not new. The solicitation of funds from large groups of people is exactly what nonprofits and political campaigns have been doing for as many years. In today’s world, though, the internet has altered the ability for companies and individuals to get their ideas in front of large numbers of strangers with money to invest. Social media has often helped these campaigns, and as contributor can “share” the story on their Facebook, Twitter, Instagram, or other account for all of their friends to see.

A popular example of social media crowdfunding is Kickstarter, a site that dedicates itself to helping fund independent musicians, filmmakers, writers, and artists. In exchange for a certain monetary donation to one of the artists, the reward is usually an advance copy of a DVD, concert tickets, or a signed thank-you note. While it does not seem like much for a donation of a few hundred dollars, it does show that the receivers appreciate the donation.

The main problem with crowdfunding sources is that if a new business owner does not have to convince anyone of their business in anything other than a short video or written paragraph, they may lose the skills to convince customers down the road. A large share of crowdfunded investments will never make money and investors will be out-of-luck.  While small, fragmented investments limit the significant risk to any single investor, too many failures will give crowdfunding a bad rap and prompt regulatory tightening. Currently, there is no large-scale regulation, so most anyone can come up with an idea and get the funds online to make their dreams come true. There is also the small risk of scammers taking advantage of crowdfunding, as it is not regulated. While the vast majority of users are legitimate in their ideas (no matter how crazy they may seem), a select few can easily come in, take money, and ruin the party for everyone.

One of the biggest benefits of traditional investors is located in their brains, not in their wallets. Traditional investors are skilled at knowing how to make a brand, be it a product or person, and succeed because they have their names and reputations attached to the product just as the business owner does. Most investors do not throw money at just the coolest ideas, but rather invest in entrepreneurs with businesses they understand and can help push in the right direction.

Securing a traditional funding source can be a difficult process due to accounting and legal costs. These sources also come with stipulations and restrictions in composition of the management team, employee salary and other factors. In addition, with the source literally invested in the company’s success, all business operations will be under constant scrutiny. The loss of control varies depending on the terms of the deal.

How you choose to fund your company’s start-up is a difficult decision, as well as a decision that should be well thought out. There are many differences between crowdfunding and traditional funding sources, but there is one similarity: both attract people who care about what you represent, and both want you to succeed. The rest of the pros and cons are up to you, the business owner, to decide what is important and what is not.