There is no doubt that the Internet impacts online trading with information readily exchanged and regulated/unregulated advice available on any topic. We’ve also seen the emergence of finfluencers, online influences with millions of followers, talking about, promoting and encouraging online trading. However, is this really having an impact on market movements?
Whether you are a seasoned investor or one of the many traders joining in recent times, you will know that the financial landscape is forever changing. A strategy which works perfectly well today may need to be updated tomorrow as markets move and different trends emerge. Successful investment traders accommodate several strategies, looking at ways to maximise the upside while limiting the downside. It is essential to be flexible and forward-thinking, admit if you are wrong and move on!
As a day trader, there is potential to make significant long-term returns. Indeed, many people trade stocks for a living. However, as with any type of investment, day traders must be able to identify the risk/reward ratio of each investment, with risk management critical to long-term success. In this article, we will look at the principles of risk management that every day trader should understand and implement.
As a professional investor, it is crucial to be aware of the makeup of an index such as the FTSE 100. On the surface, this index contains the top 100 listed shares in the UK, but when you dig deeper, overseas exposure is much greater than you might expect. Consequently, professional investors are exposing themselves to other currencies to an extent which may surprise them.
While online trading is second nature to many investors, there is an assumption that the psychology of a stock market trader today is the same as that of 10 years ago, 20 years ago and further back. The reality is that the stock market is an ever-changing beast, and with these changes comes the need for investors and traders to adapt their psychology. As we work through the various changes in psychology, it will all become apparent.
If you are an online trader, you will have come across the FTSE 100 and the FTSE 250, but are you aware of their history? Performance is everything as an online trader, so which one do you think has performed best over the years? You might be surprised!
One of the attractions of the UK stock market is the fact that asset management and investor demands are constantly changing. There are marked differences if we compare and contrast markets and market trends today against those of just ten years or even five years ago. Consequently, all investors must be able to adapt their asset management focus to consider current and future changes.
While many seek to be a professional investor, what does it take? More to the point, when do you know when you’ve achieved that status? A professional investor is someone who invests/trades for a living. This is a dream for many people, a nightmare for some, while achievable for very few. So where do we start?
To many people, the term asset management is a relatively broad and static overview of investment. In reality, the basis and the structure of modern-day asset management is much more dynamic, changing continuously.
You will often hear the term wealth management, which tends to be associated with relatively high net-worth individuals. At first glance, it is not automatically clear what services a wealth management company would offer. However, if you dig a little deeper, this industry provides a vast range of services.