Posted on Leave a comment

Governments may ban private gold ownership

Support investments mogul Crispin Odey has cautioned that legislatures may boycott private responsibility for in the event that they lose control of swelling in the wake of the coronavirus emergency.  There is the potential that Governments may ban private gold ownership.

The cost of gold has taken off since the start of the Covid-19 pandemic as anxious speculators rush to place of refuge resources in the midst of a more extensive downturn.

Odey said it was “nothing unexpected” that individuals were purchasing gold. “Be that as it may, the specialists may endeavour sooner or later to de-monetise gold, making it illicit to claim as a private individual,” he wrote in a letter to speculators seen by Bloomberg.

“They will possibly do this on the off chance that they want to make a steady unit of record for world exchange.”

Odey, who is a vocal pundit of national bank approaches, increased the gold situation in his leader Odey European Inc. finance in April, as per the report.

June gold prospects spoke to barely short of 40 per cent of the reserve's net resource esteem toward the month's end, up from 15.9 per cent toward the finish of March.

A few business analysts have cautioned that significant levels of government obligation piled on during the pandemic could prompt high expansion as economies recuperate.

While the estimation of the dollar is no longer pegged to gold, Odey said he dreaded a rehash of approaches in the wake of the Great Depression, when the US government started purchasing up secretly held gold to cut down the estimation of the dollar.

“History is loaded up with models where rulers have, in snapshots of emergency, depended on spoiling the coinage,” he composed.

Posted on Leave a comment

Stock Market for Beginners

 

– So today I wanna talk to you guys about a couple of tips I have for you if you're just getting into the realm of investing and stocks, and I know it sounds like a wonderful thing to do. It sounds so easy. You just buy stocks and they go up and you make all kinds of money. It's not true. I mean, it can be true, but you need to have a basic understanding of what you're doing. These are things that I wish I could go back in time and tell my former self about the stock market. That way, I wouldn't have made these mistakes in the first place, so here's what happened.

I kind of got into stock market trading just out of something I've always been interested in. I've wanted to trade stocks since I was like eight years old. I can remember a trip to New York City where I was, where I saw the stock tickers for the first time and I was just fascinated by them. I was like this is something that I really wanna learn how to do. I just loved the idea behind the stock market and then that day in New York City, I picked up a Wall Street Journal and I read it the whole way home on the bus ride that we took to New York City.

That's where my interest in stocks started and now the problem was in order to invest, you need to have money and I didn't have any money at the time, so it's kind of something that was on the back burner for me for a number of years, and then recently, when I've started working and having money coming in and having extra money on the side, I decided to start investing in some individual stocks. I'm the kind of person that likes to learn by doing, trial by fire; I've always been that kind of person.

I don't like to just have the path carved out for me always. I kind of like to go through things myself and experience it firsthand, but for those of you who maybe don't wanna waste a bunch of your money trading stocks and making bad trades and learning the hard way, I have six tips for you that I wish I could go back and tell myself because, I mean, I don't regret going through what I did with the stock market because I learned a lot going through what I did, but for somebody who maybe doesn't have as thick of skin and as much ability to take the loss as I do, I don't know if that sounds right, but if you're not looking to spend, 'cause I'm not gonna lie to you guys, I traded stocks for nine straight months.

Never made a profit on nine months, I made bad trades. Now I'm to the point where I consistently make a few hundred bucks a week trading stocks, spending one to two hours a week doing it, so I've gotten past that learning curve and gotten to the point where I'm making good trades and making a good amount of money with very little time, and I just wanted to mention before I get into the video here, the six tips, for the last three months, I've been working on a trading guide or strategy guide for stock market trading based on all the information that I've been studying over the last year or two in the stock market.

I've read dozens of books and guides and talked to many people about trading stocks and I kind of collected all of my favourite pieces of information into my stock market trading guide, and I think it's a great place to start if you're somebody looking to get into investing and you wanna know what kind of signals am I looking for, how do I pick a stock, what stock should be on my watch list? I feel like it is a great foundation for you as far as stock trading goes, so if that's something you might be interested in, I will link it up in the description and there also should be some kind of icon on the video in the corner.

You can click on that, and that will direct you to the page that tells you more about that if you're interested, but without further ado, I'm not even sure if that's the phrasing for that, but we're going to get into my six tips for stock market trading. Alright, my first tip for investing stocks as a beginner is getting over your emotional attachment to money. I'm gonna say this again because it's really, really important. Get over your emotional attachment to money. As you've grown up, you've become very emotionally attached to money.

You love money, you wanna make more money and you wanna hold it close to you and you wanna protect it and you wanna, you know, minimize the risks and you wanna be very safe. You have emotional swings with your money. If you lose money, if you spend too much money, it's all driven by emotion, and that's really gonna screw you up when it comes to trading stocks. Where I learned this, the book is Rich Dad Poor Dad by Robert Kiyosaki. He sold 40 million copies of that book. I'd be very surprised if this is the first time you've ever heard anybody mention that book, but if it is, I think I paid about seven dollars for it on Amazon and it was life-changing, to say the least.

I learned so much good stuff from that book but this is like one of the number one things I learned from that book as it pertains to stock market trading. Money is not real. You gotta realize it's something that we collectively give value to. It's something that we make up to represent the value of something. We don't wanna be carrying around bags of corn and blocks of gold and precious metal anymore, so we decided to have a universal value associated with items. Start thinking of money like that.

Don't think of it as this emotional thing that you cherish and you love. It can't be that, or else you will be so afraid to lose money that you'll lose money once, or you'll get your emotions involved when trading and that's not the place for your emotions. Trust me, your emotions are a very valuable tool in other areas of your life, but when it comes to the stock market, leave them at the door. They have no business in your trading strategy. You want to be trading based on technical data, the numbers in front of you, the charts in front of you, and nothing else.

You don't wanna be trading based on how you feel that day. Maybe you got a bad night's sleep. You should not bring that into your trading strategy. That needs to stay in other areas of your life. Keep your emotions separate from your stock market trading. You can't be emotionally attached to your money because the truth is with stock market trading, you're going to win some and you're going to lose some. The idea is your wins will outweigh your losses. You're gonna be winning more trades than you are losing trades, and that's how you're making a profit over time.

There's no way you can always be right, but if you're trading based on data and nothing else, you're going to have the best chances of being right because you're not gonna wake up one day and see that your stock fell and all of a sudden, you go, oh my God, I lost $1,000, I'd better sell. You only lose that money if you sell. You only lose if you sell, it could go back up, alright? And if you have data in front of you that may show you that, oh, it may go back up, oh, there's a good reason for this, oh, it's just market or industry correction.

You need to start trading based on data and not your emotions. Okay, my second tip for somebody as a beginning stock market trader invests in something you actually care about, and I feel like this should be a no-brainer, but it's not because I made this mistake too. This is kind of what my stock market strategy looked like when I first started trading. I'd wake up and I would open up Google News and I'd scroll there, be like, oh, somebody said that this stock is going crazy. It's blowing up, it's got so much potential.

Let me buy it. I bought stock in a jewellery company. I bought stock in biomedical companies. I bought stock in oil. I mean, I don't have an emotional attachment to any of those things. I know I just said don't have an emotional attachment to your money, but it is okay to have an emotional attachment to the stock you're representing. You want to buy stock in something you actually care about. If you really like video games, find a video game company or anything involving video games, something that has to do with something you actually care about.

For me, I'll give you my example. I live around Malta, and right in Malta, there's a big chip fabrication plant and they make chips for AMD and I bought stock in AMD simply because I've seen what AMD, they're the main chip that that company is making chips for over there in Malta, but I've seen what that has done to our local economy and I'm so thankful for them for coming here, and so for me, I have an emotional attachment to that stock 'cause I'm like, you know, I'm really happy. I'm proud to represent that company with my money, and as a result, when you buy something that you're proud of, when you buy something you're actually interested in, when you're buying something you care about, you'll be less likely to sell based on fear and panic.

Now, I've told this story a lot because it's a very true story. I mean it's not something that's … It's just a really good example of this. I bought shares of AMD and I bought them at a terrible time, but I had no idea, but I bought shares and the very next day, the company unloaded a bunch of shares. They offered them to the public at a much lower valuation than the stock was currently valued on at the stock market. What they were doing was they were selling stocks in order to pay off high-interest debt, so in the long run, it was a great move.

In the short term, it decimated the stock. I mean, I saw the stock go from seven. I bought the stock, I believe $7.44 a share. It hit just under six dollars a share within two days. So as far as my trade goes, within two days, I was down over $1,000, okay? If I didn't care about that company, I would have sold, I guarantee you, I would have sold. I would have said \”you know what, this was a stupid idea. \”Why did I buy this? \”I better sell before I lose more money.\” But because I cared about the company, I was like, you know what, I don't think this is the end.

I don't think this is it. I'm gonna hold and see what happens, and I ended up making over $1,000 on that stock, not even two months afterwards. So because I cared about that company and I was proud to represent them with my money, I ended up not selling at the bottom, I was able to, you know, weather the storm and I wasn't worrying about fear and panic. I had confidence in that company, and as a result, I held onto it and I sold it and I made a good profit not long afterwards. So that's something you guys really need to do when you're looking at stocks, pick a stock, a company that you actually care about or industry that you actually have interest in.

All right, I'm sure with this third tip, some of you out there are looking at me like I know, but a lot of people don't know this, and I had the same problem with this tip. The third tip, buy low, sell high. I'm gonna say it again, buy low, sell high. One more time, buy low, sell high. I'm sure every person you've ever talked to about trading stocks has told you this piece of information, but nobody follows this rule, and I'm going to explain to you why. You need to be going against the grain with your trading.

You don't want to be buying a stock when everybody else is piling into it. That is called the herd mentality. In my ebook, I talk about how there are three types of people who trade out there. There are people who make bearish investments, those are people who are betting on the stock to go down, and they make money from falling stock prices. There are bullish investors who are betting on the stock to go up, and they make money from rising stock prices. For the most part, that's where the majority of people are trading, and then there are the sheep, and the sheep follow the herd, being led by other people because they don't have the confidence to make decisions themselves and they get slaughtered by the market.

The stock market is unforgiving, it's true. It really is, it can make you or it can break you, there is no forgiveness when it comes to trading stocks. So if you go online and you do what I did where I was going online and watching what stock was way the hell up, it was flying, the sky's the limit with this stock. You got people on the news just talking about this stock left and right, everyone's piling into it, I was like, I can't lose, I better get into this stock while it's up. You want, your mind tells you you want to get into a good thing, and we see a stock in decline almost as a sick stock, and you can't look at it that way.

You want to buy low. You want to buy that stock when everybody else is selling. You want to be seeing people on the news saying \”get rid of this stock.\” I mean, within reason, if you see other reasons to buy that stock. It's not like you just want to go out there and buy a loser stock, you want to do your research and understand why this stock is going down in value, but you don't want to buy stocks that are sky-high. They're gonna come down. It's all hype. You don't want to buy stocks based on hype.

You're going to end up losing a lot of money that way. I can't tell you how many stocks I bought based on what I saw on the news. I know one of them like I said, I bought a jewellery company, I bought Signet Jewelers and for some reason, I read an article on seeking alpha or one of those trading sites that was like, this stock has unlimited potential, we can see this stock trading 10% above where it's trading in the next two months, and I was like, of course, it will, it's so high right now. You know, my head was in the clouds with the stock, and unfortunately, reality set in and the stock went down and I lost money and I sold down.

I bought high and I sold low, and everybody seems to understand this if you ask them how to trade stocks. They will say, if you tell them \”buy low, sell high,\” they'll say \” yeah, but give me a real piece of advice,\” and they don't follow this key rule. This is like the cardinal rule of trading, and I know every time I talk to people about stocks, and I give them this piece of advice, they think I'm being an asshole, but I'm not. People don't understand this. This is the cardinal rule of trading.

They think I'm mocking them, like oh, here's the tip, guys, buy low, sell high, but it is the cardinal rule of trading and you may think you understand it, but I didn't understand it, even after reading book after book, I didn't get it until I really realized what I was doing. You do it without realizing it, you buy a hot stock in the news. You don't want to do that, it's as simple as that. Okay, tip number four, a quick and easy one. This is something, again, if you haven't guessed, these are all mistakes that I've made in the past, and I'm sharing these with you.

So this is something I did over and over in the past. When I first started trading, I put like $500 in my trading account, and I was like \”well I don't want to spend it all in one \” place, so why don't I buy a couple of different stocks?\” Diversification is not a bad idea, but when you invest so little, you have to overcome your commission before you can even make a profit, and in most cases, you're never going to, and let me explain to you why that is. If you don't realize this, just because this is a beginner's video, I want to explain this.

When you go on any website, Etrade, Scottrade, when you're going through an online stock broker or any stockbroker, they're going to charge a commission for trading your stock. The prices vary based on websites or based on if you're using a live broker, whatever you're using, a human broker, but for me online, I trade with Scottrade, and it's like seven dollars a trade. Some of the sites are a little bit more, but Scottrade seems to be the best bang for your buck as far as what I've found, and just throwing this out there, I'm not paid by Scottrade, I wish I was, however, I'm not, but I just like to tell people exactly how I do things because I like to be transparent.

Even if I'm not getting paid for it, I want to be honest with you. So when I was trading with Scottrade, I bought a number of stocks in companies, you know, or I bought a number of company stocks, spending about $100 on each trade, so here's the problem with that. Let's say you spend $100 in stock of the ABC Company, which, it doesn't exist, I just made that up, but you're gonna pay seven dollars on Scottrade to buy that stock, all right? Then you're gonna pay seven dollars to sell that stock, so yes, you pay commission every time you trade.

A round trip is opening and closing a position, so every round trip, you're gonna pay $14 in commission, so that means that 14% is how much your stock would need to increase just to offset your commission costs. Let me say that one more time. 14% before you even make a profit. Let's not talk about slippage, though, or no, let's talk about slippage because what is slippage? Slippage is the difference between the buy and the asking price for that stock. So just because the stock is trading at a certain value, doesn't mean that you're going to get that exact price for it.

Now when you trade a higher volume stock, there's less slippage because there's more trading going on, but you could possibly, if you're trading a lower volume stock, have a good amount of slippage, which means that maybe the stock is trading at $20.10 a share, but you only get $19.99 a share for it because that's what the current buy and ask prices are for the stock, so you won't necessarily get the quote of the stock at the time because of slippage. So your stock needs to increase 14% in value plus whatever slippage is involved before you even break even.

So let's say you were trying to make $20 on this stock. You invested $100, you're hoping to get $120. That means that the stock would have to increase 14% to 114 before you even made any money, and then account for your slippage. You're talking about having that stock raise 30 or 40%, somewhere around there, before you even make any money on that. You know, that's the point when you're making your $20, but even if the stock increased 15%, which, ask anyone, that's a great stock. That's a great investment if you have a 15% return on investment.

You haven't made a penny. You haven't even made back your money yet when it's increased 14%, and if it increased 14% and you sold, because of slippage, you would probably still break even or end up slightly in the hole on that stock. That is why I suggest you do not invest any less than $1,000 on any given trade. If you don't have the money to invest $1,000, save your money and spend your time right now researching and learning more. I promise you guys, I know you're eager to get into the stock market, but it will not hesitate to kick you right in the gut and send you back to your chair, okay? It will teach you a lesson whether or not you want that lesson, I'm gonna be honest with you guys.

Okay, so my fifth tip for a beginning stock market trader does not buy the news. This is something I did many times over and over, and it's something a lot of people do. You go on NBC or any news channel and you watch the money and the financing reports and the shows that are all about the stock market and they talk about what the newest hot stock is, and I know earlier in this video, we talked about the herd mentality, and when you run with the herd, you're trading like a sheep. What that means is you don't have the confidence to make your own investment decisions, so you'd rather have somebody else tell you what to do, and when somebody else is telling you what to do, it makes you feel like, okay, if I lose money, I can blame them.

You need to hold yourself accountable for your trades, and one way of doing this is don't trade the news. There's a lot of people out there trading the news. A lot of people watch the news and a lot of people trade the news. What you want to do instead is you want to buy the rumour, sell the news. So let's say for example there are articles out there saying okay, this company may be releasing a new product on this date, that's a rumour, okay? It's possible that it's just a rumour and it's not true, but on the chance that it's true, you may want to make a small investment in that.

Then you find out, okay, it wasn't just a rumour, it was true and then they release this new product, the stock goes flying sky high. That's the point when that stock becomes news. That's the point when all of the sheep are dog-piling into that stock and it's going way high, but you bought before people knew what was going on. You bought before it was mainstream, and as such, you paid a lower price for that stock, and now you're able to make a comfortable profit. Sell while it's safe before that hype ends and the stock falls over, because it's my second point here, guys.

The hype is not a safe investment. I don't like to trade hype. Okay, so my final stock market trading tip for beginners is this. Checks stocks a few times a day. I actually forgot what it was, so I had to turn around and look at that, so if you're wondering what that was, I completely forgot what my tip was, but now that I jogged my memory, let me elaborate on that for you guys. You don't want to check your stocks every minute of the day. I know it's exciting, it really is, that's the reason I trade.

It's an adrenaline rush when all of a sudden you buy a stock and it's going sky high, and all of a sudden you're like \”I actually made money trading a stock, oh my god.\” But you don't want to just sell immediately because there's potential for more, and you don't want to be watching the stock so carefully that you get shaken out of the position too early. I've done this many times, where all of a sudden I'll check my stock like you know the stock market opens at 9:30. I remember on one occasion it was like 10:15 in the morning, I log on and I'm like, holy crap, my stock is up! And I think I had about a $140 profit at that time, and I kept hitting refresh like every 15 seconds, and like oh it's up, oh crap I lost money, on looking, we're up two cents now, oh no, we're down three cents, oh we're back up four cents.

You can't watch a stock that carefully because it's going to be changing so minutely at that point that you need to look at what the trend is, maybe the 15-minute trend, the 30-minute trend of that stock. So what I do for myself now, because I made this a rule for myself after I made this mistake of getting shaken out of a position too early, and on that mistake, I mean, yes, I did make money on that stock. This was one of my early AMD trades, okay. I had like $180 profit, okay. I logged on and I saw, watching the chart, minute to minute that the stock fell like three minutes in a row and I'm like, oh god, it must be doomed, it's going down, this is the most people are willing to pay for this stock, I better unload.

And then the next day, had I sold I would have made $1,300, but instead, I made $180 because I got shaken out of my position. So that's the lesson for you guys. Pick a time increment, no less than every 15 minutes, in my opinion, so if you're getting excited about your stock, let's say it's 10 o'clock in the morning, you check the opening numbers on the stock and you see it's up, says \”okay, I'm gonna close this. \”At 10:15 I'll check again, 10:30 I'll check again, \”10:45, 11 o'clock I'll check again.

\” Do not leave stock charts continuously open on your phone or your computer. You will get shaken out of a position, and it may not be a bad thing, because of look, you made some money, okay? Yes, that was a successful trade for me on AMD, I made like 180 bucks, but had I not gotten shaken out of my position, I may have made $1,000 on that early trade, and I've traded AMD a number of times, and I have done well with that stock, but I could have done a lot better had I not gotten shaken out of it because I was checking the stock too much.

Like I said guys, it's exciting, it should be exciting because once you are able to take this knowledge you have and apply it in the real world and be able to pull money out of thin air, it's amazing, it's a great feeling. It's a rush and that's why I trade all the time, but you need to keep your emotions in check and make sure that you're not playing it too safe because, for me, I left a lot of money on the table because I was watching my charts too closely. Okay, guys, that's pretty much all I got for you.

These are my six tips for a beginning stock market trader, and these are things that, again, I wish I knew when I started, but I was able to learn them in the long run and I went from trading nine months in a row without a profit to making a couple of hundred bucks a week by trading one to two hours a week. It's not hard, guys, and if you watched this video all the way, I just wanted to thank you for spending the time you did with me and I really hope I was able to shed some light on this topic for you guys, and if this information is something that interests you, I really think that my ebook might help you out as well because it kind of expands upon a lot of this stuff, and I outline my exact trading strategy of how I am consistently making a couple of hundred bucks a week with very little effort trading stocks, but I thank you guys for watching, and I hope to see you in the next video.

Please comment, or ask questions below and I will do my best to answer.

 


  

Posted on Leave a comment

Investing in Rare Scotch Whiskey

It is an all-around recognized certainty inside speculation circles that uncommon and old whisky is right now encountering a blast more noteworthy than at some other time in its long and famous history.

Official measurements discharged from Knight Frank's Luxury Investment Index uncover that whisky has bested every other speculation recorded inside its loved resource file with 540% development in the course of recent years, outflanking everything from shaded precious stones to old fashioned shotguns.

Surprisingly better, there is a colossal and all-around established idealism dependent on the foreseen worldwide interest for Scotch single malt over the coming decades-speculators searching for triple-digit benefits throughout the following 10 years look no further!

As an industry the Scotch whisky showcase has been developing consistently for a long time, both in size and gainfulness and right now contributes roughly £5 billion to the UK economy with Scotch fares surpassing £4 billion. In reality, for uncommon and unrepeatable whiskies the market is blasting and, with a limited flexibly and ever-expanding request, the potential for long haul development is huge.

In particular, in the course of the most recent year, the presentation of Scotch whisky has been nothing not exactly astounding having encountered a 40% elevate for uncommon and old whiskies-benefits that differentiate unmistakably against the background of an FTSE 100 that exhibited just 1% during a year time span between 2018-2019.

Today, the whisky advertise is at a remarkable level and while all business sectors can be dependent upon a downturn, given the hunger for premium single malt whisky it is difficult to visualize any situation where purchaser request would altogether drop.

Only 56 million litres of all Scotch whisky (8%) is held as single malt and that extremely pitiful sum needs to fulfil the requests of 500 million customers around the world a flawlessly opposite gracefully/request unevenness. Our customers utilize Scotch whisky as an incredible method of making expansion inside their portfolios and as 93% of Scotch whisky is sent out, it gives a truly necessary fence against a frail real.

Comprehensively, buying a whole barrel as opposed to a container may return more prominent benefits through economies of scale and more noteworthy self-rule over the resale cost of the stock. Likewise, with most uncommon products, notoriety, shortage and selectiveness are essential.

Please comment or leave a question below.

Posted on Leave a comment

What Types of Real Estate?

Real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property. “Real” comes from the Latin root res or things. … The U.S. Constitution initially restricted voting rights to only owners of real estate.

There are four types of real estate:

  • Residential real estate: These includes both new construction and resale homes. …
  • Commercial real estate: These includes shopping centres and strip malls, medical and educational buildings, hotels and offices. …
  • Industrial real estate: …
  • Land:

 

House flipping means buying a house, increasing its value and making a profit on it, essentially buying low and selling high. There are two ways to do this: you can either make repairs, upgrade the decor and furnishings, or you can wait until the housing market increases by a certain percentage to recoup your money.

What is the 70 rule in house flipping?

The 70 per cent rule states that an investor should pay 70 per cent of the ARV of a property minus the repairs needed. The ARV is the after repaired value and is what a home is worth after it is fully repaired.21 Aug 2019

 

Is land considered real estate?

Land primarily refers to the surface of the ground and all-natural objects within it or on top of it. … Real estate is land and any additions and improvements, such as buildings, sewers, sidewalks, and anything else considered permanently attached to the land.

 

Commercial real estate is any non-residential property used for commercial profit-making purposes. Commercial real estate includes stores, malls, office buildings, and industrial parks.6 Jun 2019

What is considered industrial real estate?

Industrial real estate includes : All land and buildings either utilized or suited for industrial activities. Such activities are defined as: Production, Manufacturing, Assembly, Warehousing, Research, Light Storage, Distribution and some related Office requirements of tangible goods rather than service-related users.

 

What is the difference between commercial and industrial real estate?

Commercial Real Estate primarily refers to buildings or land intended to generate profit: industrial and retail are merely sub-categories of commercial real estate. Industrial property is a property used for actual manufacturing and can be considered as a factory or a plant.

 

Renting out property

 

Buy-to-let is a British phrase referring to the purchase of a property specifically to let out, that is to rent it out. A buy-to-let mortgage is a mortgage loan specifically designed for this purpose.

 

buy to let property (sometimes referred to as ‘buy to rent‘ or ‘BTL') is a type of property investment, in which the investor becomes a landlord and rents out the property for profit. A buy to let mortgage is a loan secured against one of these properties.

 

Rent to Buy is a government scheme that was set up to help you own your first home, even if you can‘t afford a deposit at the moment. … While paying 20% less in rentyou may be able to build up a deposit to buy the property or another one after the seven years is up.27 Dec 2018

 

To avoid income taxes, you could have your self-directed IRA or 401K be the purchaser of the asset in the first place; those are tax-sheltered. Then there is the notion of “trading” property using the 1031 exchange; the 1031 exchange allows for the deferral of capital gains on property held as an investment.1

How many buy to lets can I have?

All lenders set different limits on the number of mortgages you can have with them – it depends upon their appetite for risk. Many of the mainstream buy to let lenders set a limit of around three to five mortgaged properties (or maximum borrowing amount with them, i.e. £1m).

 

How much tax will I pay on my rental income? Your rental profits are taxed at the same rates as income you receive from your business or employment – 0%, 20%, 40% or 45%, depending on which tax band the income falls into.

Carrying two mortgages at once

Buyers who have enough income can carry two mortgage payments at once if they still meet the debt-to-income ratios required by their lenders. … You, then, might be able to qualify for two mortgages at once, if your credit score and job status are also strong.29 Feb 2016

 

 

What is Airbnb stand for?

It stands for Air-bed and breakfast, or Airbnb (“Air-b-n-b“) for short. Airbnb is an online community marketplace that connects people looking to rent their homes with people who are looking for accommodations.

 

How does Airbnb workAirbnb is an online marketplace which lets people rent out their properties or spare rooms to guests. Airbnb takes 3% commission of every booking from hosts, and between 6% and 12% from guests.

The best situation is a host will be nearby but not stay at the property with you (some hosts intend to stay in the residence with you, which I find unnerving).

 

On average, hosts make $924 a month, but those numbers vary. Some hosts even buy or lease a number of apartments or homes and rent them out full time, creating what could be a six-figure income.

Posted on Leave a comment

Real physical gold.

This is gold that you store yourself or at a trusted vaulting company. This is gold that you can actually hold in your hands. This is the gold that is demanded at record levels by central banks around the globe.

Do You have pretend gold.

This is the domain of the bullion banks. They offer futures contracts, unallocated accounts, and ETFs…all as an alternative to the real thing and as a way of increasing the total supply of “gold” in what amounts to modern-day alchemy.

The investment world allows a physical price to be determined through the trading of the pretend alternative.

There's a demand for the real thing: physical gold.

One great story in 2019 was how the Polish central bank purchased—and then demanded immediate delivery of—about 100 metric tonnes of physical gold. The Poles are no dummies, and they apparently wanted no part of the unallocated promises from the London Bullion Market.

 

The Central bank demand for gold will exceed 670 metric tonnes in 2019. This follows what was a 50-year record demand of 641 metric tonnes in 2018. This from the World Gold Council at the end of 3rd Quarter 2019:

 

Price rose by 18% in 2019, a logical conclusion would be that this was due to strong physical demand. And that conclusion would be mostly correct.

Surging demand often leads to higher prices, price is not determined through the exchange of fiat currency for physical metal.

Price is determined through the trading of gold derivatives and futures contracts—pretend gold,

 

last year saw the global central banks demand delivery of 670 metric tonnes of physical gold, while at the same time, the global bullion banks oversaw an increase in the supply of 1024 metric tonnes of pretend gold.

  • Central Bank physical demand:21,500,000 ounces
  • Global physical mine supply:90,000,000 ounces
  • Bullion Bank pretend gold supply:78,616,600 ounces

With the price of gold rallying from $1280 to $1520 in 2019, a move of 18%, which factor had the largest impact?

Demand for physical gold or the supply of pretend gold?

all of these trends will continue in 2020, and as such, the price trends will continue, too.

  1. Central bank demand for physical gold will continue unabated as foreign currency reserves are gradually shifted from fiat currency to sound money.
  2. Institutional demand for physical gold will increase as fiat currencies are devalued and global interest rates trend lower.
  3. Personal demand for physical gold will increase as investors increase the asset allocation to our under-utilized sector.
  4. Bullion bank supply of pretends gold will increase as these banks defend their established and underwater short positions. (Keep in mind that these Bank shorts positions are not constrained by the same factors that face Spec longs. These Banks are deemed “too big to fail” and thus will always have access to enough cash to meet perceived margin requirements. Additionally, these Banks are rarely forced to actually deliver physical gold against their short positions, as the Spec longs rarely demand physical delivery.)

Expect gold (and silver) prices to continue rising. How far? The first levels to watch are $1650 for gold and $20 for silver. However, $1750 and $22 are not out of the question. This would place 2020's gains on par with 2019, and that seems about right.

The bullion bank control over the pricing scheme grows more tenuous by the month. Each ounce of physical gold that is demanded globally removes it from the over-leveraged hands of the Banks. So keep the pressure on in 2020. Buy gold and demand immediate delivery. And then let's see if we can finally begin to see prices reflect true physical gold demand and not fabricated pretend gold supply.

Please leave a comment or  question and I will do my best to answer.

 

Posted on Leave a comment

Forex Trading Indicators

The following post is a glossary of forex trading indicators.  So ofter we hear abbreviations and these can be misleading as so many abbreviations can stand for so many different things.

Price Action

Price action is the movement of a security's price plotted over time. Price action forms the basis for all technical analysis of a stock, commodity or other asset charts. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions.

 

Price action describes the characteristics of a security's price movements.  In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators

In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.

Trading Indicators

Technical indicators are heuristic or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. … Examples of common technical indicators include the Relative Strength Index, Money Flow Index, Stochastic, MACD and Dillinger Bands

 

A heuristic technique, or a heuristic for short, is an approach to problem solving or self-discovery that employs a practical method that is not guaranteed to be optimal, perfect or rational, but which is nevertheless sufficient for reaching an immediate, short-term goal.

Indicators are the cornerstones of technical analysis and play an important role in giving and confirming entry and exit signals in stock trading systems.

Leading Indicators are indicators that lead to price movement. In other words, they indicate the probability of a trend reversal in advance.

Exponential Moving Average or EMA

A moving average is a technical analysis indicator. The EMA indicator is very popular in forex trading. The indicator was developed to counter the lagging weakness of the SMA indicator by weighting more recent prices more heavily. Its origins are unknown, but its use was designed to smooth out the effects of price volatility and create a clearer picture of changing price trends 

Simple Moving Average or SMA

The SMA is a technical indicator for determining if an asset price will continue or reverse a bull or bear trend. The SMA is calculated as the arithmetic average of an asset's price over some period. The SMA can be enhanced as an exponential moving average (EMA) that more heavily weights recent price action.

The moving average is calculated by adding a stock's prices over a certain period and dividing the sum by the total number of periods. For example, a trader wants to calculate the SMA for stock ABC by looking at the high of the day over five periods.

 


SMA and EMA are calculated differently. The calculation makes the EMA quicker to react to price changes and the SMA react slower. That is the main difference between the two. … Many shorter-term traders use EMAs because they want to be alerted as soon as the price is moving the other way

Hull Moving Average or HMA


Of all the moving averages the SMA lags price the most. The Exponential and Weighted Moving Averages were developed to address this lag by placing more emphasis on more recent data. The Hull Moving Average (HMA), developed by Alan Hull, is an extremely fast and smooth moving average.

Popular Momentum Indicators

Moving Average Convergence Divergence (MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA

Relative Strenght Index or RSI

The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100

Volatility indicators are technical indicators. … Volatility indicators are a special form of technical indicators. They measure how far an asset strays from its mean directional value. This might sound complicated but it simple: When an asset has high volatility, it strays far from its average direction.

 

An oscillator is a technical analysis tool. A technical analyst bands an oscillator between two extreme values and then builds a trend indicator with the results. The analysts then use the trend indicator to discover short-term overbought or oversold conditions.

 

The SMA is a technical indicator for determining if an asset price will continue or reverse a bull or bear trend. The SMA is calculated as the arithmetic average of an asset's price over some period. The SMA can be enhanced as an exponential moving average (EMA) that more heavily weights recent price action.

Rate of Change or ROC

ROC – indicator for MetaTrader 4 is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data. ROC – indicator for MetaTrader 4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

 

Commodity Channel Index or CCI

The commodity channel index is an oscillator originally introduced by Donald Lambert in 1980. Since its introduction, the indicator has grown in popularity and is now a very common tool for traders in identifying cyclical trends not only in commodities but also equities and currencies

What are the best leading indicators?

The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. … The RSI is most typically used on a 14-day time frame, measured on a scale from 0 to 100, with high and low levels marked at 70 and 30, respectively. 

 Moving Average Convergence Divergence (MACD)

Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA

Parabolic Stop and Reverse (SAR)

parabolic SAR (parabolic stop and reverse) is a method devised by J. Welles Wilder, Jr., to find potential reversals in the market price direction of traded goods such as securities or currency exchanges such as forex. Stochastic.

Stochastic refers to a randomly determined process. The word first appeared in English to describe a mathematical object called a stochastic process, but now in mathematics, the terms stochastic process and random process are considered interchangeable.

Average Directional Index (ADX)

The average directional index (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend. The trend can be either up or down, and this is shown by two accompanying indicators, the Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI)

Ichimoku Cloud.

The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on the chart

Dillinger Bands.

Dillinger Bands is a technical analysis tool developed by John Dillinger. There are three lines that compose Dillinger Bands: A simple moving average (middle band) and an upper and lower band. The upper and lower bands are typically 2 standard deviations +/- from a 20-day simple moving average but can be modified

 

Whether you are a fundamental trader or a technical trader I hope that the information above helps to explain the different indicators available so that you can decide what type of trading you wish to follow.

Please comment or leave a question and I will do my best to answer

 

Posted on Leave a comment

How You WIN Trades!

 

I've seen some awesome things in my years trading Forex.

However, nothing compares to what Michael Nurok has put together for you…

…including a FREE trading system for you to implement the trading secrets he’s giving away.

So jump in right now while you can still get everything for free.

You can put these principles into action immediately and bank some easy cash.

At least watch Michael’s video before you do anything else:

 

You'll discover three time-tested Forex principles that, when combined, make your success virtually guaranteed.

In addition to the free trading system, over the next three days, you will get THREE trading reports and a full manual showing you how to generate an income using the free system.

 

This trading strategy has proven itself over and over again for the lucky people who are already using it to generate a sustainable income from home.

You will find everything you need right here:

 

Posted on Leave a comment

Free Forex Strategy

You really don't want to miss this free Forex strategy session…

…because you'll learn three consistently profitable techniques that no one else is teaching right now.

If you are brand new to Forex trading, or if you’re unhappy with the results of your trading so far…

…you owe it to yourself to see how this pro-Aussie trader keeps losing trades down to an absolute minimum while maximizing the returns of his winning trades.
The link below will give you free instant access:

None of the so-called trading gurus ever mention this.

But now you can learn the best method I've seen that could generate a reliable and consistent income, even if you’ve never placed a trade-in your life.

And not only that…

You will also receive an entire, proven trading system FOR FREE, as an extra bonus at the end of the strategy session.

Make sure you watch this 100% free presentation today…

What he is teaching you could allow you to make consistently profitable trades every week, even if you're an inexperienced trader who's YET to see any real returns from your trading.

Watch this today before the page is taken down:

Posted on Leave a comment

Buy Gold Invest Gold

Real physical gold.

This is gold that you store yourself or at a trusted vaulting company. This is gold that you can actually hold in your hands. This is the gold that is demanded at record levels by central banks around the globe.

gold-coins

Pretend Gold

This is the domain of the bullion banks. They offer futures contracts, unallocated accounts, and ETFs…all as an alternative to the real thing and as a way of increasing the total supply of “gold” in what amounts to modern-day alchemy.

 

What are Futures Contracts

futures contract

A precious metals futures contract is a legally binding agreement for delivery of gold or silver at an agreed-upon price in the future. A futures exchange standardizes the contracts as to the quantity, quality, time, and place of delivery. … The great majority of futures contracts are offset before the delivery date.

Unallocated Gold

Unallocated-gold

 

is a bookkeeping device by which a bank or other enterprise provides you with notional gold. The gold is a liability to you on their balance sheet. It is synonymous with gold ‘accounts' and its holders are unsecured creditors.

Gold ETFs

Gold-ETFs

A gold ETF, or exchange-traded fund, is a commodity ETF that consists of only one principal asset: gold. Exchange-traded funds act like individual stocks, and they trade on an exchange in the same manner. However, the fund itself holds gold derivative contracts that are backed by gold.  Gold ETFs are a convenient, liquid way for individual investors to buy and hold gold.


The investment world allows a physical price to be determined through the trading of the pretend alternative.there's demand for the real thing: physical gold.

One great story in 2019 was how the Polish central bank purchased—and then demanded immediate delivery of—about 100 metric tonnes of physical gold. The Poles are no dummies, and they apparently wanted no part of the unallocated promises from the London Bullion Market.

Central bank demand for gold will exceed 670 metric tonnes in 2019. This follows what was a 50-year record demand of 641 metric tonnes in 2018. This from the World Gold Council at the end of 3rd Quarter 2019:  Price rose by 18% in 2019, a logical conclusion would be that this was due to strong physical demand,  that conclusion would be mostly correct.

Surging demand often leads to higher prices, price is not determined through the exchange of fiat currency for physical metal.  Price is determined through the trading of gold derivatives and futures contracts—pretend gold,

Last year saw the global central banks demand delivery of 670 metric tonnes of physical gold, while at the same time, the global bullion banks oversaw an increase in the supply of 1024 metric tonne gold.

 

  • Central Bank physical demand: 21,500,000 ounces
  • Global physical mine supply: 90,000,000 ounces
  • Bullion Bank pretend gold supply: 78,616,600 ounces

With the price of gold rallying from $1280 to $1520 in 2019, a move of 18%, which factor had the largest impact?

Demand for physical gold or the supply of pretend gold? all of these trends will continue in 2020, and as such, the price trends will continue, too.

 

  1. 1. Central bank demand for physical gold will continue unabated as foreign currency reserves are gradually shifted from fiat currency to sound money.
  2. 2. Institutional demand for physical gold will increase as fiat currencies are devalued and global interest rates trend lower.
  3. 3. Personal demand for physical gold will increase as investors increase the asset allocation to our under-utilized sector.
  4. 4. Bullion bank supply of pretends gold will increase as these banks defend their established and underwater short positions. (Keep in mind that these Bank shorts positions are not constrained by the same factors that face Spec longs. These Banks are deemed “too big to fail” and thus will always have access to enough cash to meet perceived margin requirements. Additionally, these Banks are rarely forced to actually deliver physical gold against their short positions, as the Spec longs rarely demand physical delivery.)

the-bullion-bank

The bullion bank control over the pricing scheme grows more tenuous by the month. Each ounce of physical gold that is demanded globally removes it from the over-leveraged hands of the Banks. So keep the pressure on in 2020.

The Advice of Craig Hemke from the Gold Eagle is:

” Buy gold and demand immediate delivery. And then let's see if we can finally begin to see prices reflect true physical gold demand and not fabricated pretend gold supply”.

 

 

 

 

 

 

Posted on Leave a comment

How to Start Investing

When asking how to start investing for beginners you should include your reason for wanting to start investing.

What has made you think that investing is a possibility?

Investments

An investment is a gamble: instead of the security of guaranteed returns, you're taking a risk with your money. The hope is that you make a lot more than you put in but there's the possibility you end up with less.

risk-management

It may be a good idea but is it something that you have researched.

You may have seen something on social media declaring that you can make a lot of money investing in any number of investment ideas but does that investment have any foundation.

Scams

So many people have had their life savings stolen from investment scams, you really do need to research any investment promotions offered to you before giving away a single penny.

If it sounds too good to be true, it probably is.

There are so many ways of investing some that may be suitable for you and some that definitely will not be.

You can invest in almost anything.

Investment-portfolio

  • Forex Market
  • Options
  • Stocks and Shares
  • Government bonds
  • UK property market
  • Businesses
  • Vintage cars
  • Wine
  • Fledgeling technology firms
  • Art, including, paintings, sculptures

How are you going to finance your investment?

Do you have a lump sum or a pension you wish to invest?

What is your time scale for wanting to receive profits from your investments?

checking-trend-of-trade
Checking trade direction

ALWAYS remember the five golden rules of investing:

  1. The greater the return you want, the more risk you'll usually have to accept.
  2. Don't put all your eggs in one basket. Try to diversify as much as you can to lower your risk exposure, ie, invest in different companies, industries and regions.
  3. If you're saving over the short term, it's wise not to take too much of a risk. It's recommended you invest for at least five years. If you can't, it's often best to steer clear of investing and leave your money in a savings account.
  4. Review your portfolio. A share might be a dud or you might not be willing to take as many risks as you did before. If you don't review your portfolio regularly, you could end up with a share account which loses money.
  5. Don't panic. Investments can go down as well as up. Don't be tempted to sell or buy shares just because everyone else is.

Your Circumstances

How old are you, have you finished your education or at college, are you just starting your working career.

Have you started a family and looking to invest to protect your family or to support your children through college or buying their own home.

All these questions will need answering before deciding on committing your money and then there is the question of what sort of investment have you in mind.

I personally follow the writings of Robert Kiyosaki the author of Rich Dad Poor Dad. Unfortunately, I have only come into contact with his work in the last couple of years when planning on my retirement. He writes that schools do not teach about money and finances but how to prepare for getting a job.

Robert advocates keeping 10% of your earnings to invest for your future. 10% may be a lot to some people. I remember my father informing me when I first went out to work, 1/3 for board and keep, 1/3 for me and 1/3 for savings. It worked whilst I was living at home, but as soon as I moved out when I got married, everything went into the household kitty.

What goes around comes around. I am now semi-retired and with my pension pot decided I wanted to invest. So I was where you are now.

Invest in yourself First

As I said earlier, there are so many ways to invest your money but you need to educate yourself first. You need to invest in yourself first by researching what is available and then sign up to learn all there is to know in the field of investment you are interested in. You can earn while you learn but just be careful you do not lose all your money before you have mastered the basics.

How much should I set aside to put in?

Too many people think you need to have a load of cash to be able to invest in the stock market – you don't, and many smaller investors who ‘drip-feed' in small sums on a regular basis can do much better than those who simply dump a big lump sum into the market.

You should never invest more than you can afford to lose. In the event of a stock market crash, you could face losing a huge chunk of your wealth if you have too much of your money invested. Many financial advisers would suggest you invest for at least five years.

keeping-your-money

If you have little savings and are heavily indebted, gambling on stock markets could be bad for your financial health. However, If you've built up a nest-egg and are fed up with low savings rates, the stock market could be a decent way to try to earn bigger returns.

Many fund managers allow you to invest a regular small monthly sum which will help build up a larger sum over time, as well as being more manageable for your finances).

My own experience

The areas of investment that I have assessed myself are Forex Trading, Options Trading, Stock Trading, Cryptocurrencies and Blockchain and Startup Investments. I am looking into physical gold. I have been into Property investment in the past, buying properties and renovating and selling on but have not looked at doing this again as I would have to buy in trades to complete the work and this cuts into the profits drastically. This is just my personal position at this time.

You can access information about forex trading, options trading, stock trading, gold trading, real estate trading in a previous post of mine at:

https://101-financial-trading-and-investing.com/financial-trading-and-investing/

Startup crowdfunding is a new phenomenon and until recently it was not allowed for companies to accept investments from regular people.

Only wealthy people were allowed to invest in private companies. Thanks to Republic and recently updated laws, you can now gain access to the new asset class and be an angel investor in startups.

The law requires that before you invest, you first understand the risks and the rules of investing in startups.

If you would like to know more about startup crowdfunding you can find out more here

I am a member and have invested in several new startups myself

If you are interested in any of the information about please leave a comment or question below and I will help in any way I can.