How and why to invest in stocks

Investing in shares of companies is not the easiest, but quite reliable way to earn. Of course, to successfully participate in trading on the stock markets requires some knowledge, because you risk your own money. Igor Mazepa, associate director at consultancy Concorde Capital, added:

however, you can earn money without having a Harvard business school diploma. In this article you will learn how to invest in shares of companies correctly.

How to invest in stocks

It is worth noting that the investment is not suitable for those who are looking for a quick income. Of course, there are very successful investments that bring instant profit, but it is rather an exception to the rule. Usually years pass between the investment and the opportunity to make a good profit. Here are 5 key points to consider before entering the stock market.

Decide on your investment style

In fact, there are only two styles of investing. In the first case, you have a serious initial capital, which is not afraid to risk. You also have an idea of how the securities market works and are able to independently assess the prospects of shares of companies. In the second case, you want to try your hand, but do not have the appropriate experience.

In the first case, you just need to choose a broker and start trading. If you belong to the second category, then you should first use the services of a Robo-consultant. This feature provides most of the major brokers.

Open an account

Of course, the first step is to open an investment account, which will allow you to become a full-fledged player in the securities market. If you are confident in your own abilities, then open a regular brokerage account. For those who doubt, there are special accounts that are fully (or partially) managed by Robo-consultants.

A brokerage account makes you a full-fledged trader, but imposes additional duties. For example, you will have to deal with taxes yourself, which is quite problematic for untrained people. On the other hand, there are accounts managed by Robo-consultants. They also allow you to invest in stocks, but do not require the owner to perform analytical and settlement work.

Find out the difference between shares and mutual funds

After opening an account in front of you will open two ways. You must choose between investing in a particular company’s shares and investing in a mutual Fund.

Individual shares. You can buy shares of a particular company, in the future success of which there is no doubt. This option is suitable for beginners, because the analysis is reduced to the study of the situation of only one player.

Mutual fund. Means the acquisition of a portfolio of shares of different companies. Thus, you become the owner of small parts of several players, so you have to analyze large amounts of information about the companies you have invested in. Of course, this requires certain knowledge and skills. On the other hand, in this case, the risk of losing everything is minimized.

Decide on your budget

You should start with small amounts. Try to start to invest a few thousand dollars. This is a substantial amount that will not allow you to treat the investment lightly. On the other hand, if you fail, you won’t lose too much. If you plan to invest really big money, then give preference to mutual funds. In the shares of individual companies should not invest more than 10% of the budget, because the risk of failure is high enough.

Start investing

 

The securities market is a place where the struggle between ingenious strategies does not stop, but most successful investors managed to get rich initially without being financial geniuses, tell us Igor Mazepa. So just rely on your knowledge and intuition. Probably, you will be able to join the company of the above-mentioned billionaires.

3 reasons to start investing in stocks

Now you know how to invest in stocks, but probably still doubt the feasibility of this venture. First of all, investments are necessary, because absolutely all world currencies depreciate. On the other hand, shares of promising companies may rise significantly over time. Here are 3 good reasons why you should not be afraid of investing in stocks.

The European Commission rejected palm oil for biofuel production

The European Commission published an Act in which it listed the criteria for the selection of plants for the production of biofuels. The publication of the document was expected by farmers of Malaysia and Thailand, where they export the lion’s share of palm oil. However, European officials rejected the latter for the production of biofuels. The reason is that the use of palm oil does not contribute to the “greening” of the planet, but rather worsens the situation.

The act of the European Commission means that palm oil is now a biofuel raw crop, the production of which significantly affects the land use, so it should be withdrawn from the market until 2030.

Such data were obtained after the study of specialized literature and the results of new studies. According to which, the increase in the area of plantations from 2008 to 2015 for the production of palm oil occurred in areas with a high concentration of carbon. That is, the consequences of the use of palm oil in biofuels for the planet are more harmful than the use of oil or other fossil fuels.

At the same time, the European Commission has allowed to use soy oils as biofuels. The report said that the number of soybean plantations in areas with high carbon content has decreased and does not contradict EU requirements.

Numerous manufacturers, exporters, scientists and European officials do not agree to the report of the European Commission.

Cyprus has tightened the rules of citizenship

Since 2013, the island nation has earned 6.6 billion euros from passport trade.The government of Cyprus approved the tightening of the conditions of the program “citizenship for investment”, also known as the program” Golden passports”, AP reported.

“The investment threshold for citizenship increases from £ 2 million to £ 2.5 million. In addition, a mandatory donation of 150 thousand pounds in Cyprus state funds”, writes the New York Times.

Minister of Finance of the Republic of Cyprus Harris Georgiadis 13 February said that from now on, applicants wishing to obtain a passport of the Mediterranean island state, will be checked by the international Agency and must have a visa allowing travel within the EU.

In addition, those who have already refused to obtain citizenship of another EU country, Cyprus will not give the opportunity to try their luck on the island, notes Financial Mirror.

Now to obtain Cypriot citizenship is required to invest a minimum of 2 million euros in real estate, invest them in a business on the island or buy the same amount of government bonds. At the same time, only those who already own real estate for at least 500 thousand euros can use the program. The innovations come into force on may 15 and will not affect those who have already applied for participation in the program.

Since 2013, when the program “citizenship for investment” was introduced, it was used by 1,864 foreigners. The investment amounted to 6.6 billion euros.

At the same time, experts believe that in fact little has changed, and call the tightening “cosmetic”, writes The Bell. According to the consultants, even with the changes Cyprus program will remain the most accessible in Europe.

To change the conditions of citizenship Cyprus went to the request of the EC. According to European officials, the existing schemes help to remain unpunished criminal groups. It was also noted that the legislation of Cyprus, Malta and Bulgaria has shortcomings in the verification of the origin of funds of persons who have acquired citizenship. In addition, countries do not provide an easy way to identify those who have obtained passports under the investment scheme.

Recall that as a result of the financial reform introduced in Cyprus in 2013, “Russian offshore pocket lost weight”, according to various estimates, in the amount of $8 to $40 billion.

Fitch predicts growth in global aluminium consumption

According to the forecast of Fitch Solutions, in the next ten years the world consumption of aluminium will increase on average by 2.8% per year, which will increase from 62.9 mn tonnes in the current year to 79.7 million in 2028

According to Fitch analysts, the main sources of growth in this market will be the automotive and construction industry. Moreover, if the consumption of aluminum in the construction sector will expand, primarily in developing and new market countries, the automotive industry will increase demand for aluminum products, primarily in the United States, the European Union and Japan.

The use of lighter aluminium in the automotive industry will be dictated mainly by environmental considerations. In addition, this metal will be more widely used by manufacturers of electric vehicles, where the problem of weight loss is more acute due to the presence of a heavy battery.

According to Fitch estimates, primary aluminum smelting will grow at a slightly slower pace, so that the global market will be in deficit from 2019 to 2023. In order to ensure uninterrupted supply of metal, automakers will more often enter into direct long-term agreements with manufacturers of aluminum products.

In China, production, according to the company’s forecasts, in the next decade will add, on average, only 2.4% per year, sharply reducing the growth rate compared to 11.7% in 2009-2018.the volume of smelting will be 34.3 million tons in 2019 and 41.9 million tons in 2028. the main reasons for the slowdown, Fitch analysts believe the tightening of environmental standards in China and the closure of outdated enterprises.

Earlier, similar conclusions about the scarcity of the global aluminum market were made at the Aluminum Symposium held by S&P Global Platts in San Diego (USA) in the second half of January.

American farmers massively declare bankruptcy

A similar situation with the bankruptcy of American agricultural producers has not been observed since the economic crisis of 2008. For losses, farmers ‘ debts are now estimated at $ 409 billion.

Among the main reasons are the decline in commodity prices in international markets, high competition between Russia and Brazil and Donald trump’s trade disputes with China and the EU.

Thus, in the seventh circuit court of appeals, which serves the States of Illinois, Indiana and Wisconsin, during 2018, more farmers declared bankrupt than during the recession of 2008. In North Dakota and Arkansas, the level of bankruptcy of farms increased by 96%.

In the tenth district, which includes the States of Kansas, Colorado and Oklahoma, bankruptcy among farmers increased by 59% over the past year. In 2017, farms from these three States sold 50% of all agricultural products.

The average size of loans to farms across the country in the fourth quarter amounted to 74.19 thousand dollars. This is the highest figure in recent years.

The administration of the us President introduces a number of Federal projects to support agricultural producers. For example, one of the largest Apple-producing companies Washington Apple Commission, the US government compensates 8.5 million dollars. The funds will be allocated under the agricultural trade facilitation program, which is implemented by the us Department of agriculture. However, officials say that such measures are only a short-term solution that will not give a systemic result.

China continues to increase exports of goods

Exports from China in January 2019 increased in dollar terms by 9.1% compared to the same period in 2018 after a decrease of 4.4% in December.

According to the Country’s General customs administration, the decline in Chinese imports slowed from 7.6% to 1.5% in the reporting month.

The positive balance of trading balance of China has decreased in January to $of 39.16 billion from $57,06 billion in December, but it was twice the $18,42 billion recorded in January 2018.

At the same time, the index of business activity (PMI) in China’s processing industry in January 2019 increased in January 2019 to 49.5 points from 49.4 points in December. Thus, the indicator grew, but remained below the border between growth and weakening of business activity. At the same time, the December value of industrial PMI was the lowest since February 2016.

Recall, China’s economy at the end of 2018 added 6.6%, slightly slowing growth compared to 2017, when the country’s GDP grew by 6.7%.

Barry Silbert: many digital currencies will eventually “reset”

Barry Silbert, head of Digital Currency, is sure that many digital currencies will have no value. He believes that virtually every ICO is held in order to take funds from crypto-investors.

At the end of 2017 and the beginning of 2018, the ICO was at the peak of popularity. This was followed by a decrease in the number of initial coin offerings, as regulators began to actively “deal” with illegal projects.

According to CoinSchedules, in January as a result of ICO received a little more than 290 million dollars, which is 19 times less than in March 2018. Then captainvalor invested in primary supply of coins in excess of 5.8 billion dollars.

And although Silbert is very negative about the ICO, he continues to believe in the promising future of BTC. Claims to have ” won the race for digital gold.”

The head of Digital Currency is an early bitcoin investor. His company was one of the first to establish the blockchain Association. In addition to the Silbert group, it includes Coinbase and Protocol Labs.