Analysing Growth Stocks vs. Value Stocks

Investing in the stock market is a challenging feat. With hundreds of companies listed, knowing where to start and which stocks to buy can be overwhelming. As a beginner investor, you may have heard terms like “growth stocks” and “value stocks,” but what do they actually mean?

In this article, we will dive deep into understanding these two different types of stocks and their characteristics so that you can make informed investment decisions. We’ll also discuss the advantages and disadvantages of investing in growth vs value stocks, allowing you to determine which strategy aligns best with your financial goals. Let’s prepare to break down the differences between growth and value stocks and uncover which could offer better returns for your portfolio.

What are Growth Stocks?

Growth or growth-oriented stocks have consistently demonstrated substantial growth in their earnings, revenue, or both. These companies often exhibit high valuations relative to their current earnings and prioritise reinvesting most of their profits into expanding their business operations. Growth stocks are frequently associated with relatively new companies with a promising future outlook for further expansion and development.

Some notable examples of growth stocks can be found within the technology sector, with companies like Amazon, Tesla, and Netflix serving as prime illustrations. These companies exhibit impressive growth trajectories and have a knack for disrupting their respective industries, which significantly contributes to their desirability among investors seeking high-potential opportunities. With their relentless pursuit of innovation and market dominance, these growth stocks continue to captivate the attention and interest of investors worldwide.

What are Value Stocks?

In contrast to growth stocks, value stocks are companies with a lower stock price than their fundamental value. They may be undervalued due to short-term market fluctuations or unfavourable economic conditions, which present an opportunity for investors to purchase shares at a discounted price. Value stocks typically offer steady dividends and have been established in the stock market for extended periods.

Some classic examples of value stocks are in more traditional industries like banking, pharmaceuticals, and energy companies. These sectors may not see rapid growth rates as technology but are known to provide consistent returns over time, making them popular among more conservative investors.

Advantages of Investing in Growth Stocks

One of the main advantages of investing in growth stocks is the potential for higher returns compared to other types of investments. As growth companies continue to expand and disrupt their industries, their stock prices can rise significantly, resulting in greater profits for investors. Additionally, some growth stocks may not offer dividends as they prioritise reinvesting profits into the company, which can lead to higher long-term gains.

Moreover, growth stocks also provide an opportunity for diversification within a portfolio. As these companies operate in various industries and sectors, investors can minimise risk by spreading their investments across multiple growth stocks. This diversification strategy can help mitigate losses if one particular stock underperforms.

Advantages of Investing in Value Stocks

The main advantage of investing in value stocks is the potential for steady, consistent returns over time. These companies have a proven track record and are undervalued, which makes them attractive to investors seeking stability and long-term growth. Value stocks also offer the potential for consistent dividends, providing a steady stream of income for investors.

Moreover, value stocks are relatively less volatile compared to growth stocks. They tend to withstand market downturns better and may not experience extreme price fluctuations, as seen with some high-growth companies. It can benefit risk-averse investors looking to minimise potential losses in their portfolios.

Disadvantages of Investing in Growth Stocks

One of the main disadvantages of investing in growth stocks is the higher level of risk involved. These companies are relatively new and operate in fast-paced industries, so their stock prices can be highly volatile and unpredictable. If stock market conditions change or the company fails to meet growth expectations, investors may stand to lose a significant portion of their investment.

Another disadvantage is the potentially high valuations of growth stocks. As these companies are expected to continue growing at a rapid pace, their stock prices may already factor in future earnings and be overvalued. It can result in lower returns for investors as the stock price may have little room for growth.

Disadvantages of Investing in Value Stocks

The main disadvantage of investing in value stocks is the potential for slower, lower returns than other types of investments. These companies may have a more stable stock price and offer consistent dividends but may experience little price increases over time. It can be frustrating for investors seeking quick profits or high-growth opportunities.

Another disadvantage is the potential for value traps. These companies may appear undervalued, but they have underlying issues that could negatively impact their stock price. It is crucial for investors to thoroughly research and analyse a company before investing in its stock to avoid falling into a value trap.

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The Finer Points of Stock Trading as Relayed by Schaeffer’s Investment Research

Katie Schaeffer of Schaeffer’s Investment Research discusses the finer points of stock trading. Included is information on how to perform a good trade deal and also how to avoid making dire trading mistakes.

Knowledge is Everything

First and foremost, you need to have at least some understanding of what you are doing.  Even if you elect to have a broker do all the procedures, you still need to know what you are talking about.  Only then can you determine if the broker is effective.

It also requires continuous learning about which stocks are worth the investment and which you should steer clear of.  One way you can do that is to use Schaeffer’s Investment Research.  They will help you stay informed of everything pertinent to stock trading.

Minimizing Your Risk

There is always going to be a certain amount of risk involved when you trade stocks.  This is unavoidable.  What you can do is establish a comfort level of risk.  In other words, set a financial limit for yourself as to how much you are able to risk.

Another thing you can do is stay clear of stocks you know are going to be high risk, at least in the early days of your trading career.  On the other hand, if you are able to risk money on the better stocks, they can offer you more of a return on your investment.  These are the kinds of things you will learn from Schaeffer’s Investment Research.

Remember Stock Trading is a Business

It must never be treated as a hobby but rather a business that takes a full commitment and plenty of time.  You also need to realize there will never be a regular paycheck coming in.  This will be your own business complete with expenses, losses, taxes, stressful times, and yes — risk.  If you insist on treating trading like a hobby or even a job, you are not likely to be successful. Thus says Schaeffer’s Investment Research leader, Katie Schaeffer.

It is Strongly Advised to Use a Stop Loss

Not having this is a bad idea that can only lead to trouble.  A stop loss is either a dollar amount or a percentage limit on the amount of risk the trader allots to losing.  You set this limit prior to each trade.  The purpose of a stop loss is to minimize the monetary damage if a stock tanks in the market.  Schaeffer’s Investment Research will assist you in learning all about this and other fine points of stock trading.

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Understanding the Values of Pips and their roles on Currency Pairs

In the forex market, there are many traders with various reasons why they are making trades. For retail traders and financial institutions like banks, they trade because they want to gain profits. On the other hand, businesses trade in forex when they buy or sell their products from one country to another. With these being said, we can say that it is essential to exchange currencies for international trade and facilitation, which is possible through forex market transactions. An investor makes speculations to make a profit, which is where a pip may join the picture. A pip calculates rates when a trader makes currency trades.

Understanding the lot sizes of pips

We refer to pip when we talk about a minor price movement of an exchange rate. Usually, a pip is in the fourth place, succeeding a decimal point. One pip, say 0.0001, maybe insignificant, but it will not be when we are talking about bigger lot sizes.

Pips have different lot sizes. It may be a standard lot with 100,000 currency units, a mini lot with 10,000 currency units, or a micro lot with 1,000 units.

How do traders and brokers gain profit from pips and forex trades?

Brokers usually do not charge commissions. So, if they do not ask for commissions, then how do they make a profit? There are terms that we call bid and ask price. The bid price is how much the seller gets, and the asking price is the amount that the buyer pays. The difference between these two is what the broker gets to take home. Say the buyer purchases something at $1.2345, and the seller sold this something at $1.2343. The broker keeps two pips. These two pips are what we call the spread. Usually, a broker may quote prices in one decimal place succeeding the pip. We refer to this pip division as pipettes.

A forex trading account and pips

Upon opening a forex trading account, you will need to use a particular currency. Before going further, we need to clarify that trading is always done in currency pairs. The first in the pair is the base currency and the second in the pair is the quote currency. For example, in EUR/ USD pair, EUR is the base currency while USD is the quote currency.

If your account’s denomination is in US Dollars and US Dollars is the quote currency, a standard lot will be $10, a mini lot is $1, and a micro lot is $0.10. These are the pip’s values not unless there is a significant rise or fall of more than 10%.

However, there are times when a forex trading account may be US Dollar-funded, but it is not the quote currency. In this case, the pip value must be divided by the exchange rate’s dollar and quote currency.

In other cases where the forex trading account’s funding is in terms of a currency aside from the US Dollar, then the pip values are the same if the currency’s funding is the quote currency. Let us assume that the account’s funding is in GBP, the standard lot is €10, the mini lot is €1, and the micro lot is €0.10. If the pairs do not use Euro as the quote currency, then the pip is also divided by the Euro and quote currency exchange rate.

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Few Obvious Facts of Online Share Trading for Beginners

Even if you know nothing about online share trading, you can be pretty confident in us saying that it’s no rocket science.

Ever heard of financial terms such as investing, trading, buying stocks, etc.? If you are reading this article, the chances are you have not only heard about them but also know quite a bit. You see, one of the most fundamental things of capitalism is the capital market – the parts of a financial system that is focused on raising capitals for businesses to invest. It performs its task in many ways, primarily by dealing in shares and other long-term investments.

So, what happens when a new company registers with a stock exchange and offers shares to potential investors and traders? They get bought and sold – the obviousness couldn’t be any more clear, could it?! Anyways, if you own shares of a company, you can also sell it, and this entire act of buying and selling shares in a company is what is known as share trading or stock trading.

Online Share Trading

As we’ve explained before, share trading refers to the act of buying and selling stocks of businesses that are trading in the stock market. It can be long-term, mid-term, or short-term depending on your holding periods and strategies. You would also be able to do it in several ways – signing up with a traditional broker, assigning independent financial managers, or managing your own money at the comfort of your home via online share trading.

As you can imagine, the act of buying and selling stocks of an individual company using the internet is known as online stock trading. It enables a trader or investor to conduct all the necessary activities and more by just using a computer or other similar devices like smartphones and tablets.

Ways to Trade Shares Online

Just conduct a search on the internet about stock trading online and you would be overwhelmed with people telling you what to do and what not to do. There are a lot of things to consider, many of which are the same as any other form of trading in the financial markets. I mean, things like picking out stocks, setting up an investment strategy, risk management, profit management are required to be learned in just about any form of trading operations, except of course, if you assign a professional fund manager to do all this on your behalf.

Anyhow, the few ways it differs from the traditional methods of stock trading is that you would have to sign up with an online share trading platform. It doesn’t take a lot of effort to find a few reliable online brokers and open a trading account with one or a few of your choosing. Once you set up your account, you would be able to browse all the shares listed on the platform and trade on them as you please. Making a profitable trade, however, is something that needs to be learned more in-depth.

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Top 7 Trending Business Ideas for 2021

The Coronavirus (COVID-19) pandemic has affected the globe in unforeseeable ways. If you want to establish a Small and Medium-Sized Enterprise (SME) today, it is vital to account for how COVID-19 has changed the business world. People now buy services and products more safely and conduct their business differently. This has created plenty of opportunities for entrepreneurs, indicating a brighter future for SMEs.

Establishing a new SME requires you to think outside the box. Read on to find a few trending business ideas that you can consider in 2021.

  1. Online clothing reseller

Clothing resale is one of the most popular business options in 2021. If you are interested in fashion, this can be a great business idea, as you may understand what potential buyers may like. You can start by selling your old dresses on e-commerce portals and later move on to establishing an online resale store.

  1. Consultant

Consulting businesses have a unique opportunity to thrive in the current scenario. As many people are planning to relaunch their businesses and brands, you can serve them with marketing, communication, leadership, social media, and other consultancies to help them grow.

  1. Medical courier service

If you have a car, consider launching a medical courier service. The job involves delivering medical equipment, medicines, and lab specimens. With an SME loan, you will have all the funding you need.

  1. Online teaching

With schools and colleges closed, students are now looking for educators who can teach them online. If you have expertise in a particular subject, you can guide and mentor many students.

  1. App development

With more people using their smartphones, creating new apps is one way to serve people what they need. You can start by developing apps on your own and hire more developers as the business grows.

  1. Freelance copywriter

If you understand marketing and are skilled with words, copywriting can be a fruitful business for you. Many companies now hire copywriters online; so, you have a plethora of choices. You can write content for blogs, social media, and company websites from the comfort of your home as long as you have a good Internet connection.

  1. Digital marketing

You can start a digital marketing business quickly by getting finance at affordable SME credit solutions. With every company trying to develop an online presence, a digital marketing business will always be in high demand.

With so many promising career alternatives, you can opt for any option as per your area of expertise. If you need funding, check Mahindra Finance’s SME loan eligibility criteria. Visit their website and learn which SME loan documents they need for the application.

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How you can Trade Currency – Some Fundamental Steps for you to get Began With Foreign exchange

If you’re hoping to get began in foreign exchange buying and selling but they are unsure where to start, you will need to look at this article. We’ll explain the steps for the way to trade currency. We’ll cover locating a broker, opening an exercise account, buying a buying and selling strategy after which opening a account to do business with real cash. If you have finished studying this short article, you will be aware the steps to follow along with to obtain began with currency buying and selling.

1. Pick a Broker

The very first task when finding out how to trade currency would be to pick a broker. Picking out a foreign exchange broker is essential as foreign exchange isn’t traded inside a central exchange as stocks are, therefore the broker will influence the purchase and sell prices and liquidity from the currency you’re buying and selling. You can examine minimum trade sizes, the margin or leverage offered and when the broker provides a practice account.

2. Open an exercise Account

An exercise account is essential for several reasons. The very first is it will help you to find out about more knowledge about foreign exchange buying and selling, like the different order types, terminology and just how margin can be used. You’ll be able to follow along with and learn how different currencies behave and which currency you need to focus on. An exercise account can help you become comfortable buying and selling on margin. Buying and selling utilizing a practice account will help you to trade using virtual money to be able to learn and make your skills inside a real buying and selling atmosphere without risking real cash. Make sure that the practice account does not expire though, as some brokers may provide the service for any short time.

3. Create a buying and selling strategy

After you have an exercise account open and you’re acquainted with the fundamentals of methods to use a trade, you will need to build up your buying and selling strategy. You’ll need a buying and selling strategy that will help you to determine when you should go into the market, whether or not to purchase or sell, just how much to risk so when to exit the trade. Buying and selling strategies may use fundamental analysis and technical analysis to look for the rules for the trades. After you have opted for buying and selling strategy, the bottom line is to follow along with the process and rules consistently. The aim would be to trade consistently and profitably before risking real cash.

4. Beginning buying and selling legitimate

If you have arrived at the stage where you’ll be able to trade making profits regularly, it’s time to open a account and do business with real cash. Lots of people discover that even though they could trade profitably utilizing their practice account, they aren’t able to trade well when real cash is at risk. The main difference is having the ability to take control of your feelings, particularly when trades become unprofitable, and developing the opportunity to trade towards the plan and strategy.

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How you can Day Trade Foreign exchange

Would you like to be a Foreign exchange day trader? Well, there are several important variables that you’ll want to consider before you decide to set working for yourself. To begin with, you will have to decide for those who have enough capital to begin buying and selling with. Day buying and selling requires greater beginning capital since you will generally be uncovered to more broker charges because of the high amount of trades you’ll be entering and exiting. Other important variables will come up too, factors for example what method you utilize to day trade Foreign exchange with and whether you learn to day trade Foreign exchange from the professional Foreign exchange mentor or strike working for yourself, they are important factors to take into consideration before buying and selling with real cash on the market. Still, other important factors include items like are you available throughout the most lucrative buying and selling hrs? Or, what’s your arrange for a good technical education in buying and selling Foreign exchange?

Finding out how to day trade Foreign exchange could be a tough task if you don’t have sufficient buying and selling capital to finance your buying and selling account with. Day buying and selling requires more income to begin with since you will be entering and exiting a greater amount of trades every day that will expose your bank account to more spread charges or any other brokerage charges. This isn’t to put you off finding out how to day do business with Foreign exchange, indeed day buying and selling the Foreign exchange market may be one of probably the most lucrative methods to trade if you realise in the proper educator. Just bear in mind that you’ll want a bit more money to obtain began day buying and selling Foreign exchange when compared with position or swing buying and selling.

What method are you going to use to day trade the Foreign exchange market? If you don’t know than you’ve your projects eliminate for you personally. It’s advised that you simply become familiar with a logical and straightforward yet impressive way in which utilizes solid cost action setups along with a couple of good moving average indicators to day trade Foreign exchange with. No matter which method you’re going by using it is extremely advised that you simply study from an expert trader offering educational services. If you will find a live Foreign exchange buying and selling room that teaches traders how you can day trade Foreign exchange live than all of the better. Live day buying and selling instruction from your experience professional trader will drastically lower your learning curve and therefore speed your main goal to become a financially independent Foreign exchange day trader.

Another essential step to consider when finding out how to day trade Foreign exchange is exactly what occasions are you open to trade. The very best occasions to day trade Foreign exchange are between 1:30am-4:00am EST for that European session and seven:30-10:00am EST for that U.S. session. Day buying and selling Foreign exchange during every other time period can be done but the quantity of cost movement and volatility you’re going to get is going to be much under buying and selling throughout the occasions just listed. If you fail to trade during one of these simple periods than you might want to consider position buying and selling. Finally, when finding out how to day trade Foreign exchange it’s important you study from an educator or educational service that provides not only signals. The origin you study from should provide a relevant and efficient education within the method they educate and eventually be aimed at instructing you on how you can trade on your own instead of stringing you together with exit and entry signals only.

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How you can Day Trade Foreign exchange Buying and selling

Day buying and selling the foreign exchange market could be a busy and exhilarating way to create a living. However, you will find risks involved and thus it is advisable to learn to day trade foreign exchange from your experienced foreign exchange day trader. There are various types of day buying and selling or “scalping” as some refer to it as, however, not every one is effective within the lengthy run, so it’s crucial you learn to day trade currency from somebody who has already used your time, energy, and cash into learning a highly effective and highly lucrative technique for scalping the foreign exchange market.

To trade the foreign exchange market on intra-evening frames you will have to make use of a flexible buying and selling way in which enables you to definitely jump interior and exterior the marketplace numerous occasions every day. Some buying and selling methods are perfect for long term buying and selling strategies, you will need to avoid these and concentrate only on shorter-term buying and selling techniques that are favorable to finding out how to day trade foreign exchange. A foreign exchange day buying and selling educational service that provides live buying and selling instruction could be a terrific way to come on time buying and selling experience from the professional foreign exchange trader. There’s really no wrong or right method to learn to day trade currency, however, it is usually better to study from an expert trader, this fact pertains to all buying and selling styles and all sorts of markets.

Utilizing an educational service that provides an active foreign exchange buying and selling room is definitely an very method to learn to day trade foreign exchange. There’s no replacement for live instruction from the professional foreign exchange trader while searching at the very same monitor they are buying and selling from. This teaching method enables you to begin to see the market in the outlook during an expert foreign exchange day trader as she or he explains why they’re doing what they’re doing instantly conditions. Some live foreign exchange buying and selling rooms even allow you to inquire from the buying and selling instructor, this really is basically like college for those who would like to learn how you can day trade currency.

Finding out how to day trade foreign exchange markets could be a great journey in self discovery and private achievement. However, this journey may also be full of frustration and confusion if you don’t take time to learn inside a systematic manner. It may be very tempting to consider you are able to educate oneself how you can day trade foreign exchange, however, bear in mind there’s grounds why most traders fail and quit or fly out their buying and selling account. Buying and selling is difficult and day buying and selling is most likely even harder to understand on your own due to the fast pace type of buying and selling it takes.

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5 reasons why you should start taking risks while investing in share market

Investing in the share market has always been a method of gaining profits and earning money. Many people also hesitate from investing in the share market due to the high risks involved in it. However, risk management is a very important factor which high end and experienced investors have overcome. Taking a risk will not necessarily drive you into losses but can also help you earn great amount of profits as well. The thought of investing in the share market as a long-term strategy serves beneficial to investors. Refer to for more info. Below listed are five reasons why one should take risk while investing in the share market:

  1. Investing in the share market can be done in numerous ways. This can be done on a small scale or micro-level with single shares and individual stocks since they have the biggest movement in the stock market. Investment can even be done at a larger scale or on a macroeconomic level by buying large number of indexes mapping to the global benchmarks. One can also invest in mutual funds but then a higher charge exists for it. Also the stock market has options of low capital investment along with customized strategies. Many people also invest majorly in equities since they take a longer period to retire. Also, a major point to keep in mind while investing is that your risk tolerance should be in alignment with your goals before taking a step towards investment in shares.
  2. The share market always sees ups and downs. 401k programs and plans are listed in the stock market due to which there are huge direct investments and this is the reason why the prices rise. When a company performs badly, it is simply removed from the top lists and replaced by other leading companies to incur price rise. Also since many firms own most of their shares, the stock available to the public being less sees a rise in price.
  3. The stock market helps in beating inflation. It helps the investors to gain profits through investing in equities since it has been considered the best way to be keeping up with or exceeding inflation rates. Since, the purchasing power of money starts decreasing with time, the Federal Reserve starts to increase the interest rates which is not likely to yield enough returns.
  4. Compounding the interest by getting in the stock market investing thing earlyand saving often is always better. Investing in the stock market at an early age will help you yield a better amount of return at an affordable interest rate in the future and serve to be beneficial in your old age.
  5. The amount of risk however cannot be removed completely, but can somehow be avoided through diversification. Diversifying with varied asset classes one will be able to get a better return on their investment. If one company in which you have invested performs poorly, then the other company is sure to perform well and balance the scenario preventing major losses. To better understand the risk factor it is recommended that the investors must stay in the stock market for at least three years.
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Day Buying and selling Training – An Active Foreign exchange Buying and selling Room

Understanding how to day trade the foreign exchange market could be a very struggle if you don’t study from an experienced professional that has day traded with lucrative recent results for years. Day buying and selling is possibly typically the most popular type of speculative buying and selling, however it doesn’t mean it is simple, and therefore must be learned from somebody that has developed in the business for a long time and achieved success. Day buying and selling the foreign exchange market, although difficult, could be a very lucrative method to trade if you realise in the right person. The benefits of acquiring day buying and selling learning an active buying and selling room are lots of and cannot be over looked.

Understanding how to trade using a live foreign exchange buying and selling room provides you with real-time trades where you can make use of the volatility provided throughout the active buying and selling hrs within the foreign exchange market. This is among the how to learn since you are really learning instantly as trades are establishing and unfolding.

By gaining knowledge from an expert foreign exchange day trader instantly you’ll be obtaining a window into the way a professional trader thinks and how are you affected in their eyes because they are buying and selling. This really is basically comparable to “at work” training foreign exchange buying and selling learning an active foreign exchange buying and selling room will greatly expand your understanding of market dynamics and also the intricacies involved with foreign exchange buying and selling.

Among the advantages for you to get day buying and selling learning an active foreign exchange buying and selling room is you reach teach me to trade prior to the fact. Most buying and selling systems or courses educate you in hindsight, or afterwards, learning an expert trader thinks and functions in live market conditions is definitely an very valuable tool. Additionally, you will get a number of other valuable information by buying and selling foreign exchange inside a live buying and selling room, a few of these include emotion management techniques and cash management, both of them are very important to lengthy term foreign exchange buying and selling success. There’s really no better medium to get foreign exchange training from compared to an active foreign exchange buying and selling room.

Make certain that you get a resource that provides ongoing education and not simply an indication service. It’s important for the lengthy term success that you will get your foreign exchange day buying and selling education from the live buying and selling room where the mind or senior trader is explaining why he’s doing what he’s doing, in this manner become familiar with valuable buying and selling skills and exit and entry methods that you could then implement by yourself.

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