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No Robinhood? No Problem: The Best Robinhood Alternative in Europe

March 6, 2023

Reading Time: 3 minutesDespite all the rage and fame it’s gotten over the years, Robinhood isn’t available in Europe, making Europeans all that eager to find the best Robinhood alternative in Europe.  The allure of Robinhood is simple. It is a commission-free trading app that has taken the investment world by storm in the United States. But sadly, it’s not available in Europe. However, don’t despair, as several Robinhood alternatives in Europe are worth considering for investors looking to trade stocks and other securities without paying high fees. This guide will educate readers on the top Robinhood alternatives for Europe and European investors. So with all that said, let’s begin. Most Popular Robinhood Alternatives in Europe You might have heard of some of these Robinhood alternatives or seen one of their advertisements online. However, it’s considered a clever practice to avoid instantly signing up with the first trading platform you come across. We aim to provide assistance and guidance for our readers. So we’ve done our research and present you with the seven most popular Robinhood alternatives in Europe and the European market.  eToro The Israeli-based investment company has offices registered in Cyprus, the US, and the UK. With two European offices, eToro is one of the most popular European Robinhood alternatives.  eToro is a social trading platform. This means that eToro allows users to copy the trades of other investors. Therefore, it is particularly well-suited for beginner investors looking for a user-friendly interface and educational resources to help them get started. eToro also offers the ability to trade cryptocurrencies and has a large community of investors worldwide. With the ability to invest in more than 3,000+ assets, it’s no surprise that eToro ranks popular on our list of Robinhood alternatives in Europe.  Trading 212 Another Robinhood alternative in Europe is Trading 212. Trading 212 is similar to Robinhood as it is a commission-free trading app that offers a wide range of financial assets, including stocks, ETFs, and cryptocurrencies.  Trading 212 is particularly popular in the UK and growing rapidly across the continent. It offers a user-friendly interface and a range of educational resources for investors. In addition, trading 212 is a reliable stock-trading platform with one of the highest safety scores for European trading platforms. Therefore, it is a secure and popular Robinhood alternative in Europe. DEGIRO  DEGIRO is an Amsterdam-based brokerage company and another popular Robinhood alternative in Europe. The company is a low-cost broker that offers access to over 50 markets worldwide. Unlike many traditional brokers, DEGIRO offers low fees and a user-friendly interface that makes investing in stocks, bonds, and other assets easy.  DEGIRO also offers a range of tools and resources to help investors make informed decisions. The access to these features, similar to many Robinhood features, makes DEGIRO an excellent European alternative to Robinhood. Revolut Unlike other Robinhood alternatives, Revolut isn’t necessarily a stock-trading online platform. Instead, Revolut is a fintech company and a bank in one. So why does Revolut make our list of Europe’s most popular Robinhood alternatives? For starters, it’s based in Europe with headquarters in London. Secondly, Revolut does offer commission-free stock trading with access to over 1,500 assets. What makes Revolut a worthy contender is the fact that it requires no minimum investment. In addition to a range of other financial services, including banking, foreign exchange, and cryptocurrency trading, Revolut has recently become an excellent alternative to Robinhood for European investors.  Freetrade This UK-based commission-free trading app offers access to over 4,000 US and UK stocks and ETFs. Freetrade offers a user-friendly interface and a range of educational resources to help investors make informed decisions. Freetrade is a London Stock Exchange member and follows all asset trading regulations. So despite not being an A-list online trading platform and app, Freetrade ticks all safety and security boxes.  Freetrade might not be the best Robinhood alternative for Europeans, but it’s still a wonderful option.  Interactive Brokers This US-based broker has a strong presence in Europe and offers low-cost trading for stocks, bonds, and other financial instruments. Interactive Brokers also offers investors a wide range of research tools and resources. Interactive Brokers is a worthy Robinhood alternative in Europe and a fierce US competitor. Therefore, you can expect a similar trading experience when using Interactive Brokers.  Saxo Bank This Danish-based online bank specializes in online trading. The bank offers a range of services, including commission-free trading of stocks, ETFs, and other securities.  Saxo Bank also offers a wealth of educational resources and research tools to help investors make informed decisions. Launched in 1992, Saxo Bank is a well-known name among Scandinavian investors and a popular Robinhood alternative in Europe. Before You Choose A Robinhood Alternative in Europe It’s important to note that each of these Robinhood alternatives has unique features and advantages, so it’s important to consider your needs and preferences before making a decision.  Therefore, European investors looking for Robinhood alternatives must research each platform to determine if its right for their needs. In addition, investors must be aware of the risks associated with trading and only invest money they can afford to lose. In conclusion, several Robinhood alternatives available to European investors offer low-cost trading and easy access to financial markets. Whether you prefer a social trading platform, a commission-free app, or a traditional broker, there is an option that will meet your needs.

Robinhood Beneficiary: What You Need to Know?

March 4, 2023

Reading Time: 2 minutesA Robinhood beneficiary is a valuable feature that solves a pretty distasteful problem when using online investing platforms. Robinhood is one of the most popular online investment platforms that has made investing accessible to millions. The platform allows users to buy and sell stocks, options, and cryptocurrency all from the comfort of their own homes. However, one feature often overlooked is the Robinhood beneficiary.  This article will explain the Robinhood beneficiary process and why it is important. So, stick around and find out. What Is A Robinhood Beneficiary? A Robinhood beneficiary is a person or entity you can designate to receive the assets in your Robinhood account if you pass away. This feature is important because it ensures your investments are passed on to the people or organizations you want them to go to without going through the probate process. The Robinhood beneficiary feature is a well-thought feature that protects “your” assets. In the case of your unexpected or expected passing, the person or organization you assign as your Robinhood beneficiary can claim your investments with minimal effort.  The feature essentially eliminates the bureaucracy and politics behind the probate process. The person you assign as your Robinhood beneficiary is 100% valid, and all your investments go to them.   How to Set Up A Robinhood Beneficiary? Setting up a Robinhood beneficiary is simple. Here is how the process goes: In these three simple steps, anyone can set up their Robinhood beneficiary. However, it’s important to note that you can have only a single beneficiary on your Robinhood account. Furthermore, the beneficiary cannot be a business, only a person or a trust.  It is also important to regularly update your beneficiary information to keep it up-to-date. There could be plenty of reasons you wish to change your mind regarding your Robinhood beneficiary. That means you want to change who your investments go to. Even if your beneficiary passes away, you can easily change the information. How Does A Robinhood Beneficiary Work? To trigger the beneficiary feature, the account holder must pass away first. In the unlikely or likely event of your death, your beneficiary can claim the assets in your Robinhood account without going through probate.  This can save time and money, as probate can be a lengthy and expensive process. Additionally, your beneficiary will be able to access the funds more quickly, as they do not have to wait for a court to approve the transfer of assets. Conclusion The Robinhood beneficiary is a simple but important feature that can ensure that your investments are passed on to the people or organizations you want them to. This eliminates the probate process and saves the desired person plenty of time and money. Regularly updating your beneficiary information ensures that your wishes are honored, and your investments are protected.

Real Estate vs Car Sales: A Salesman’s Dilemma

April 13, 2023

Reading Time: 5 minutesAs a salesman, there’s always the real estate vs car sales debate to keep you guessing which one is a better fit for someone like yourself. Real estate and car sales offer unique income, career advancement, and job satisfaction opportunities. But both industries are quite different, and the path best for you depends on several factors. Among other things, the deciding factors include your skills, interests, and personal preferences.  This article will put one against the other to explain the real estate vs car sales debate and help you make an informed decision to choose the right career for you. So with all that said, let’s begin. Comparing Real Estate vs Car Sales  One way to determine whether selling cars or selling real estate is right for you is to put one directly against the other. That way, you gain essential information to help you make an informed decision. So, let’s start by looking at each industry and the skills and qualifications necessary to succeed. Car Sales Car sales is a fast-paced, high-energy industry perfect for skilled negotiators and those who love interacting with buyers. In this industry, you’ll spend most of your day on the lot, showing cars to prospective buyers and negotiating deals.  The earning potential in car sales is significant, with the most skilled salespeople earning six-figure salaries. However, the income is highly commission-based, so your earnings will depend on your ability to close deals. Therefore, the more deals you close, you’ll earn more money. First, let’s look at the five skills and qualifications necessary for becoming a successful car salesman. 5 Skills And Qualifications for Car Salesmen The skills and qualifications necessary to become a successful car salesman are: Car sales require effective communication and the ability to articulate the benefits and features of a vehicle to potential buyers. These skills will help you persuade potential buyers to buy the car you believe is best for their needs.  As a car salesperson, you’ll be negotiating deals with buyers daily. That’s because the price put on the car is always negotiable. Naturally, buyers will be eager to bring the price down, and it’s up to your strong negotiation skills to ensure you make the best deal possible for all parties involved.  A good car salesperson is patient and friendly and goes above and beyond to meet their client’s needs. Their job is to make customers feel welcome and comfortable while shopping for their dream car. In many cases, your customer service skills will determine if potential buyers want to do business with you. You can’t be a car salesman without knowing about cars. But even with strong product knowledge, buyers will appreciate going above and beyond to explain the vehicle fully.  Therefore, to be successful in car sales, you need to deeply understand the vehicles you’re selling, including features, specifications, and pricing. We all have to start somewhere. If this is your first time in sales, you will be disadvantaged. However, having car sales experience is not necessarily required. But having previous sales experience can help develop the skills needed to succeed in car sales. Real Estate On the other hand, real estate offers a slower-paced environment but with a longer sales cycle. As a real estate salesperson, you’ll spend much of your time working with clients, searching for properties that meet their needs, and helping them navigate the home-buying or selling processes.  The earning potential in real estate is also high, with top salespeople earning six-figure salaries. But the income is also largely commission-based. In real estate, your success will depend on your ability to build a strong network of clients, develop a reputation as an expert in your area, and provide excellent customer service. So right off the bat, both industries are similar but different. Let’s look at the five skills and qualifications necessary for becoming a successful real estate salesman.  5 Skills And Qualifications for Real Estate Salesmen The skills and qualifications necessary to become a successful real estate salesman are: Like any other sales industry, real estate sales require effective communication with clients and other professionals in the industry. The better communicator you are, the easier to convince people to purchase a property. Moreover, having excellent communication skills will help you network in the industry.  A strong understanding of local market conditions, property laws, and regulations is essential for real estate sales success. Unlike car sales, real estate agents and salesmen must be aware of these conditions and regulations to structure deals properly.  You’ll negotiate deals with buyers, sellers, and other professionals in real estate, so strong negotiation skills are key. Again, the price of a potential property is flexible, so agents rely on their negotiation skills to bring the price down for potential buyers or keep their grounds for potential sellers.  Building a strong network of clients and professionals is crucial in real estate. Agents always network, and it’s up to their networking skills that determine how large a network they build. These contacts will come into play all the time. So agents rely on their digital Rolodex to get the job done.  While sales experience is handy, real estate agents must be licensed by official bodies to work in the industry. This largely depends on the state you’re in. Some states require agents to obtain a real estate license to work as a salesperson, while others don’t. This typically requires completing a pre-licensing course and passing a licensing exam. Conclusion Choosing between car sales and real estate sales depends on several factors, including your skills, interests, and personal preferences. Both industries offer excellent earning potential and opportunities for career advancement. Still, the path you choose will depend on whether you’re comfortable working in a fast-paced environment, are skilled at negotiating, and have a passion for helping others.  Whichever industry you choose, success will depend on your ability to work hard, build strong relationships with clients, and provide excellent customer service. We hope our real estate vs car sales guide gave you the

The Rule of 70: A Simple Tool for Calculating Economic Growth

March 11, 2023

Reading Time: 3 minutesThe Rule of 70 is a mathematical formula used to estimate the years it takes for a quantity to double. It is a formula that divides the number 70 by the before-given fixed annual growth rate.  This rule of 70 formula is commonly used in finance and economics to calculate the doubling time of investments, population growth, or inflation, among other things.  This guide will dive deeper into the Rule of 70 and explain it with examples. So with all that said, let’s begin. Rule of 70 Examples The easiest way to explain the Rule of 70 is through examples. Here are a few financial, population, and inflation examples that explain the formula behind the rule.  Rule of 70 for Investment Growth As mentioned, The Rule of 70 is often used in finance to estimate the years it will take for an investment to double. For example, if an investment is expected to grow at 7% per year, the Rule of 70 tells us that it will double in approximately 70/7 = 10 years. Rule of 70 for Population Growth The Rule of 70 is also used to estimate the years it will take for a population to double, given a fixed annual growth rate. For example, if a population grows at a rate of 1% per year, the Rule of 70 tells us that it will double in approximately 70/1 = 70 years. Rule of 70 for Inflation We can also use the Rule of 70 formula to estimate the number of years it will take for the purchasing power of money to be halved, given a fixed annual inflation rate. For example, let’s say the inflation rate is 3% per year. In that case, the Rule of 70 formula tells us that the purchasing power of money will be halved in approximately 70/3 = 23 years. Why 70 in the Rule of 70? The number 70 is used in the Rule of 70 because of mathematics. Since the formula determines the years it takes for an investment to double, it looks at the number “2” to calculate.   First, we need to calculate the natural logarithm of 2, which is 0.69. We can round up the number to 0.7.  Then, we need to convert 0.7 to percentages, which is 70% or 70. This is why mathematicians use the number 70. Although it’s commonly accepted in finance to use the number 72 as they believe it is a “nicer” number to divide into. How to Use It? To use the Rule of 70, you simply need to remember the formula, which is 70 divided by the annual growth rate expressed as a percentage.  For example, let’s say the annual growth rate is 7%. In that case, the doubling time will be approximately 70/7 = 10 years. The rule is based on the exponential growth formula, which states that the quantity at any time can be calculated as the initial quantity multiplied by the exponential function of the growth rate.  This rule of 70 formula shows that the growth of a quantity depends on both the size of the initial quantity and the annual growth rate. It’s also important to understand the exponential function, which has the property of compounding, which means that the growth rate multiplies the quantity over time. The Rule of 70 isn’t accurate for very high or low growth rates or for quantities that grow at a variable or non-constant rate and is used to express a rough estimate. However, it is a useful tool for making quick, rough estimates and comparing different quantities’ growth. Conclusion The Rule of 70 is a simple and useful formula for estimating the doubling time of a quantity given a fixed annual growth rate. It is widely used in finance and economics and can provide a rough estimate for various applications. However, it is important that the rule is an estimate and may not be accurate for all situations. Alternatively, the Rule of 72 and the Rule of 69 can also be used for the same purpose.  FAQs How Does the Rule of 70 Work? The rule of 70 is a mathematical formula calculating the years it takes for a quantity to double. It works by dividing 70 by the annual growth rate. What is the Rule of 70 in Population? The rule of 70 in population is a formula that helps governments and institutions calculate the years it takes for a population to double. What is Rule of 70 In Inflation? The rule of 70 in inflation helps calculate the years it takes for the purchasing power of money to be halved.

Business Vs Organization: Differences, Pros, And Cons

March 10, 2023

Reading Time: 4 minutesThe business vs organization debate is one we often come across. But to explain the advantages and disadvantages, we must first define both terms.   When it comes to the business world, the two terms are used interchangeably. But that’s a mistake, as a business can be an organization, but an organization might not necessarily be a business. So right off the bat, it’s essential to distinguish the goals and missions of both entities. The Mission and Goal of a Business vs Organization A business is an entity engaged in commercial, industrial, or professional activities to generate a profit. The types of business can include small, sole proprietorship operations and large corporations. With that said, a business’s primary goal is to make money. On the other hand, organizations are groups of people who come together for a specific purpose. This purpose can be social, religious, political, or economic. Unlike a business, an organization’s main goal is not necessarily to make a profit. Instead, it is to achieve a specific mission or goal. The mission or goal is the first distinction in the business vs organization debate, and there are plenty of others.  Key Differences Between a Business and Organization There are several key differences between a business and an organization. Outlining these differences is essential to understand the business vs organization debate. So, let’s begin. Business vs Organization Difference #1 – The Structure One key difference between a business and an organization is structure. A business typically has a hierarchical structure with clear lines of authority and responsibility. For example, a business has a Chief Executive Officer, while an organization is usually comprised of a Board of Directors.  In addition, a business is a for-profit entity, while an organization is usually a not-for-profit entity. Businesses can also adopt five legal structures. These structures are essential for understanding the type of business. Those include: On the other hand, an organization’s legal structure isn’t as broad or complex. For example, organizations must appoint a board of directors and several additional legalities to register an organization.  Business vs Organization Difference #2 – The Focus Businesses are organized around the purpose of making profits from goods and services. In addition, businesses have different departments that work independently to help achieve the goal of making money.  On the other hand, an organization may have a more informal structure and focus more on collaboration and teamwork. Moreover, organizations are geared towards achieving a certain mission or goal. This could mean serving a specific community. If a business is structured around making profits, an organization can also serve a purpose other than making money. Business vs Organization Difference #3 – The Ownership Another difference in the business vs organization debate is ownership. Individuals, partnerships, or corporations can own businesses. On the other hand, organizations may be owned by the government, private individuals, or other entities. The main difference between the two is that governments cannot own a business, while they can own organizations. Now, let’s see what the pros and cons of businesses and the pros and cons of organizations are: Pros and Cons of a Business Pros of a Business Profit Motive The main goal of a business is to make money, which can provide financial stability and growth opportunities. Flexibility Businesses can be started or stopped, scaled up or down, and adapted to changing market conditions quickly and efficiently. Entrepreneurship Starting a business allows one to be an entrepreneur and take control of one’s career and financial future. Innovation The profit motive can drive businesses to be creative and innovative, leading to new products, services, and technologies. Cons of a Business Competition Since businesses are for-profit entities, competition can be fierce, making it difficult for businesses to succeed. Risk Starting and running a business involves taking financial risks, and there is always a possibility of failure. Long Hours Business owners often work long hours to keep their operations running smoothly, especially in the beginning. Stress The pressure to succeed and make a profit can be stressful for business owners. The Pros and Cons of an Organization: Pros of an Organization Social Impact Organizations can positively impact society by pursuing a mission or goal that is in line with the greater good. Collaboration Organizations often rely on teamwork and collaboration to achieve their goals, which can foster a sense of community and belonging. Stability Organizations often offer more stability than businesses, as they are less directly tied to the ups and downs of the market. Support Organizations can support their employees and members, including benefits, training, and development opportunities. Cons of an Organization Limited resources Organizations may have limited resources compared to businesses, making it difficult to achieve their goals. However, the limited resources factor is precisely why many organizations rely on donations.  Bureaucracy Organizations can be bureaucratic and slow-moving, making it difficult to adapt to changing circumstances. Inflexibility Organizations may be slow to change, making it difficult to adapt to new circumstances. Limited Autonomy Employees in an organization may have limited autonomy and decision-making power, as a central authority often makes decisions. Again, it’s important to note that these pros and cons can vary greatly depending on the specific business or organization in question. Conclusion The terms “business” and “organization” are often used interchangeably. However, they are distinct concepts that are important to understand to determine what both mean.  The focus or mission of a business greatly varies from that of an organization, which is often the deciding factor when determining which type of entity to start.  Understanding the core differences will help you understand the business vs organization debate more easily.  FAQs What is the Difference Between Business and Organization? The main difference between a business and an organization is the focus. Businesses focus on generating profits, while organizations focus on achieving their mission or goal. Other key differences include structure and ownership. Simply put, a business can be an organization, but an organization cannot be registered as a business. Is an Organization a Business?

Multi-Level Marketing MLM in Real Estate: The Pros, Cons, and Risks

March 4, 2023

Reading Time: 5 minutesMulti-Level Marketing MLM in real estate is gaining a lot of popularity. MLM is a marketing strategy commonly used in various industries, including the real estate industry. In MLM, participants earn money not only from their own sales but also from the sales made by the people they recruit.  The income is generated through a hierarchical structure, where participants earn a commission on their own sales and on the sales made by the participants they recruit. As a result, multi-level marketing encourages participants to recruit others and expand the hierarchy. Because of this, multi-level marketing is often referred to as a pyramid.   Multi-Level Marketing MLM in Real Estate Multi-level marketing in real estate shares the same principles as multi-level marketing in general. The only difference is the industry in which the strategy is implemented. So how does multi-level marketing work in real estate? Multi-level marketing in real estate works on a commission-based system. In this system, agents get rewarded for recruiting other real estate professionals and earn a percentage of their recruits’ commissions. Considering the multi-level marketing aspects, the recruiting agent earns rewards on commissions made by everyone they recruit and the individuals the first layer of recruits bring in. Pros of MLM in Real Estate There are several advantages to multi-level marketing in real estate. That includes: Potential for Increased Income Multi-level marketing in real estate allows participants to earn money not only from their own sales but also from the sales made by the participants they recruit. This means that participants have the potential to earn more income through MLM than they would through traditional real estate sales methods. Easy to Start Multi-level marketing in real estate is relatively easy to start. All that is required from participants is a willingness to sell real estate products or services and to recruit others to do the same. However, you would need to encourage recruits to recruit others to increase their income and, by default, increase your income. Flexibility  Multi-level marketing in real estate allows participants to work from anywhere and at any time. This makes real estate MLM a potential option for those who want to start a real estate career without having to leave their current job. The flexibility factor is more than appealing to many real estate professionals who want to supplement their income with additional income.  Low Start-Up Costs In addition to being easy to start, multi-level marketing in real estate often requires a minimal upfront investment. This makes it accessible to a wide range of people interested in starting a career in real estate. Networking Opportunities Real estate, in general, provides all kinds of networking opportunities. However, multi-level marketing in real estate is founded based on networking to recruit agents and earn from their commissions.  Therefore, the practice allows professionals to build relationships with other real estate professionals. This can help participants grow their professional network, which can be valuable in the real estate industry. Training and Support Multi-level marketing companies in real estate often provide training and support to their participants, which helps them develop the necessary skills and knowledge to succeed in the industry. That means participants don’t necessarily have to have any real-world real estate experience to start. This also presents a career change opportunity, where individuals receive the necessary training and support to make it as a multi-level marketing real estate agent successfully. Unlimited Potential for Growth Multi-level marketing in real estate provides participants with the opportunity to grow their income through unlimited earning potential. As participants recruit more participants, their income has the potential to grow exponentially.  The unlimited potential for growth factor is a big reason why multi-level marketing is so popular in the real estate industry.   Cons of MLM in Real Estate Despite the benefits and advantages of multi-level marketing in real estate, there are several cons participants must be aware of. Those include: Lack of Control Multi-level marketing in real estate operates like a pyramid scheme, where the main goal is to recruit as many participants as possible rather than selling actual products or services.  This means that participants have little control over the products or services they sell and may not have the knowledge or expertise to market them properly. High-Pressure Sales Tactics Multi-level marketing in real estate often involves high-pressure sales tactics, which can make participants feel like they are being taken advantage of. This can harm the reputation of the real estate industry and make it difficult for participants to succeed. Legal Risks Multi-level marketing in real estate is a legal gray area. Participants may be at risk of legal action if they engage in illegal activities, such as false advertising or false claims about their products or services. In general, the legal risks associated with multi-level marketing are a big reason why many agents would rather stay away from this model.  High Turnover Rate Multi-level marketing in real estate can have a high turnover rate, as participants may quickly become discouraged and leave the program if they cannot achieve the desired results.  This can lead to a constantly changing pool of participants, making it difficult for the company to maintain a stable customer base.  Dependence on Recruitment In general, multi-level marketing is highly dependent on new recruits. In addition, MLM in real estate heavily relies on recruitment rather than actual sales of real estate products or services.  This means that participants’ income depends on their ability to recruit others, which can be difficult and may lead to a lack of sustainability for the individual and the company. Risks of MLM in Real Estate Legal risks aren’t the only cause for concern. Participants in real estate MLM must be aware of the following risks:  Pyramid Scheme Risks Multi-level marketing is a pyramid scheme, and multi-level marketing in real estate operates the same way. In a pyramid scheme, the main goal is to recruit as many participants as possible. Because of this, participants risk losing their investment if the pyramid collapses. Reputation Risks MLM

Can You Lose More Money Than You Invest in Stocks?

February 1, 2023

Reading Time: 3 minutesInvesting in the stock market presents us with an opportunity to build wealth over time, but it also comes with a certain level of risk. One of the most significant risks is the potential to lose more money than you initially invested.  Despite many investors wanting that not to happen, it’s far more likely that it will happen due to the various factors that go into ensuring your investments come off in the green.  So, in addition to understanding the various methods that lead to positive or negative outcomes, we must also understand these factors.  But we won’t focus on the factors. Instead, we will talk about the riskiest investment strategies, which ultimately are the easiest ways to lose more money than you invest in stocks.  Therefore, this article will explore the concepts of short selling, leverage trading, margin calls, and call options and how they can increase the risk of losing more money than you initially invested in stocks. With all that said, let’s begin. What Is Short Selling And How Can You Lose More Money Than You Invest in Stocks? Short selling is the process of borrowing shares of a stock and selling them in the hope that the price will decline. If the price does decline, the short seller buys back the shares at a lower price and returns them to the lender.  The difference between the sale and purchase price is the profit for the short seller. However, if the stock price rises instead, the seller must buy back the shares at a higher price, resulting in a loss.  In this scenario, the loss can exceed the initial investment as the short seller must pay more to buy back the shares than they received from the sale. Short selling is one of the riskiest investment strategies as it requires extensive knowledge of markets to ensure a successful outcome. As a result, experts recommend against short selling if you’re a beginner or lack stock investment knowledge.  Therefore, short selling is one way to lose more money than you invest in stocks. What Is Leverage Trading And How Can You Lose More Money Than You Invest in Stocks? Leverage trading involves borrowing money to invest in the stock market, amplifying the potential for gains but also amplifying the potential for losses.  If the stock market performs poorly, the investor may be required to sell the stocks at a loss to repay the borrowed money, resulting in a net loss that exceeds the initial investment. Much like short selling, leverage trading is an extremely risky investment strategy that requires extensive knowledge from investors. Therefore, you should only do it if you’re familiar with how leverage trading works and the risks involved. Otherwise, you risk losing more money than you invest in stocks. What Are Margin Calls And How Can You Lose More Money Than You Invest in Stocks? A margin call occurs when an investor’s investment portfolio loses value, reducing the collateral available to support the borrowed funds. The investor must then deposit additional funds or sell assets to repay the loan and meet the margin requirement.  If the investor cannot deposit the additional funds or sell assets, they may be forced to sell their stocks at a loss, leading to a net loss that exceeds the initial investment. Similarly to the previous investment strategies, making margin calls is risky due to the potential of being forced to sell stocks at a loss. So, again, rookie investors are advised against making margin calls to make money from stocks. What Are Call Options And How Can You Lose More Money Than You Invest in Stocks? Call options are contracts that give the holder the right to purchase stocks at a specified price within a certain period. If the stock price does not reach the specified price, the holder does not exercise the option and loses the premium paid for the option.  In this scenario, the loss can exceed the initial investment as the premium paid for the option is sunk and cannot be recovered. However, call options also limit losses, as you would only lose the premium paid for the option.  Conclusion Despite the stock market being the preferred method of making money for millions of people, it is within reach to lose more money than you invest in stocks. This is possible through methods such as short selling, leverage trading, margin calls, and call options. These methods can increase the risk of loss and make it more challenging to reach your investment goals.  Investors can minimize this risk by investing in a diversified portfolio, avoiding leverage, and investing in low-cost products.  By being mindful of the potential risks, investors can make informed decisions and protect their hard-earned money, mitigating risk. 

How to Build A Real Estate Empire on a Budget

April 19, 2023

Reading Time: 4 minutesThere are many ways to build a real estate empire on a budget. The wonderful thing about real estate is that numerous investment opportunities exist to achieve your goal. These range from owning condos for rental to flipping properties. While the opportunities are there, the way you approach them makes all the difference. And truth be told, you can build your own real estate empire on a budget. But how do you do that? Luckily, this guide explains that. So without further ado, let’s begin. 9 Tips to Build A Real Estate Empire on a Budget Building a real estate empire on a budget is a process. It takes time, money, strategic planning, setting goals, and ultimately, it depends on your level of commitment to pull off. Here are nine tips to help you build a spectacular real estate empire on a budget. Start Small  Considering you’re on a budget, the first thing to do is to start small. After all, you don’t want to overburden yourself with too much and fail. Start by investing in rental properties, maybe one or two. Additionally, you could begin by renovating and reselling properties for a profit. Doing this will give you a taste of the real estate market and help you build your capital. Starting small also has its benefits. For example, you will gain valuable experience and knowledge in the real estate market without risking too much of your capital. Remember that Rome wasn’t built in a day, and it will take baby steps to build your real estate empire. Make Strategic Purchases Strategy and planning will ultimately get you over the line when building a real estate empire on a budget. Therefore, you need to make clever strategic purchases backed up by research. What makes someone a real estate expert is the ability to think ahead of time. What real estate experts share in common is the ability to find properties in up-and-coming neighborhoods or those needing renovation.  You can also look for good wedge deals, meaning you can buy a property for less than its potential market value. These properties usually need small cosmetic work that will impact the price immensely. These properties are often priced lower than those in more desirable areas. But they have one thing that makes it all worthwhile – the potential for significant appreciation.  Additionally, look for foreclosures, short sales, or estate sales deals. These properties often have a big discount attached to them and can provide a great return on your investment. Take Advantage of Financing Options There are a variety of financing options out there for real estate investors, such as owner-financing, hard money loans, or government-backed programs that can help you purchase properties with less money down. By taking advantage of these options, you can leverage your capital and acquire more properties than if you were to pay cash. However, be careful, as some financing options have significant risks and downsides, such as hard money loans. Hard money loans, for example, come with high rates, making them very risky if you fail to pay them back on time. Network, Network, and More Network To build a real estate empire, you must surround yourself with the right people. That means you must build a strong network of real estate professionals, such as agents, contractors, and property managers. These people will be crucial to succeed in the real estate industry. In addition, these individuals can provide valuable insights and resources to help you make informed and strategic decisions.  The best way to find and identify the right people to join your real estate empire is to network. Networking is a valuable practice that helps professionals gain access to people in their industry. You will need to learn how to network and attend networking events to persuade these individuals to join you.  Additionally, networking with other real estate investors can provide valuable connections and opportunities. Learn the Market You will need to start learning the basics if you have no real estate knowledge. Fortunately, you can start by learning about the real estate market in your local area. Stay informed about the real estate market in your area, including trends, prices, and regulations. This knowledge will help you make better decisions about buying and selling properties when on a budget. Additionally, keeping up to date with the latest market trends and industry news will help you identify potential opportunities and avoid pitfalls. Even experts never stop learning, so you will need to catch up. Focus on Cash Flow While appreciation is important, cash flow is key to building a sustainable real estate empire on a budget. Therefore, rookie investors must remember to have a positive cash flow always.  A positive cash flow allows you to keep reinvesting your money. For example, take the profits from your rental properties and reinvest them into more properties. By focusing on cash flow, you can generate a steady income stream, which will be crucial for building your real estate empire on a budget. Diversify Your Portfolio Diversifying your portfolio by investing in residential, commercial, and industrial properties can help spread risk and increase the potential for returns.  Additionally, diversifying your portfolio by investing in different geographical locations can reduce risk and increase potential returns. Remember that the golden rule of any investment is always to diversify.  Be Patient  As mentioned previously, building a real estate empire on a budget takes time and patience. So keep going even if it takes longer than you expect, and remember to focus on the long-term goals.  Additionally, be prepared to weather market fluctuations and unexpected events, as these are a normal part of the real estate industry. Continuously Learning and Adapting As with any business, the real estate market is constantly evolving. So stay informed and be prepared to adapt your strategy as needed. This includes everything from changing your marketing strategy to finding new financing options.  Additionally, be open to new ideas and opportunities, as they can often lead to

Short Stocks on Robinhood: Everything You Need To Know

June 22, 2023

Reading Time: 4 minutesShort selling, or shorting, is a trading strategy where an investor borrows shares of a stock and sells them with the expectation that the price will fall. Short selling is a risky strategy due to the outcome of the shoring not always resulting in a profit.  The way short selling works is simple. If the price falls, the investor can repurchase the shares at a lower price, return them to the lender, and make a profit. The profit is the difference between the price at the point of lending and selling.   However, if the price rises, the investor will need to repurchase the shares at a higher price, resulting in a loss. Although risky, short selling is a popular trading strategy with most online stock trading platforms, such as Robinhood. Robinhood is a popular commission-free trading app that allows buying and selling stocks, options, and cryptocurrencies. If you’re thinking about short selling on Robinhood but don’t know how, this guide is for you. We aim to educate our readers and not in any way offer financial advice.  So with all that said, let’s start. Short Selling on Robinhood in 5 Steps Short selling on Robinhood can be done in a few steps. However, before doing so, you will need to create a Robinhood account. So make sure you get that one over the line first. Now, let’s go over the short selling on Robinhood steps. Identify a stock worth shorting Borrow shares to sell Place a short sell order Monitor your position Place stop loss orders Step 1: Find a Stock to Short To short a stock on Robinhood, the first step is to find a stock that you believe will lose value. You can use the app’s built-in tools, such as the stock screener, to help you find potential candidates. These tools provide traders with additional information regarding a particular stock. Use these tools as they can make the difference between making a profit and losing money. Step 2: Borrow Shares to Sell Once you have selected a stock to short, you will need to borrow shares to sell. Fortunately, this is done automatically on Robinhood when you place a short sell order.  Remember that you will need to return the shares you borrow at some point, so you must be prepared to act quickly and repurchase the shares if the price rises to avoid huge losses.  Step 3: Place a Short Sell Order  To place a short sell order on Robinhood, go to the stock’s detail page and tap the “Trade” button. Then, select “Sell” and enter the number of shares you wish to short. Step 4: Monitor Your Position The most important part of short selling on Robinhood is to monitor your position. You do this to ensure you have full eyes on the price and ensure it is moving in the desired direction.  Remember that if the price rises, you will need to repurchase the shares at a higher price, resulting in a loss. Step 5: Use Stop-Loss Orders  The great thing about short selling on Robinhood is that the platform offers numerous trading tools, not just monitoring and analytical ones. One of these tools is the Stop-Loss Order, which is a way to limit your potential losses when short selling on Robinhood.  Place a stop-loss order automatically to trigger a buy order when the stock reaches a specific price, which can help minimize your losses if the stock price rises. Things to Keep in Mind When Short Selling on Robinhood Short selling on Robinhood or any other stock-trading platform is a risky affair. So even if you’re familiar with how to short-sell a specific stock on the platform, it’s essential to keep these few things in mind before you begin. Be Aware of the Risks Short selling is a high-risk strategy and should only be attempted by experienced investors comfortable with the potential for significant losses.  Like any stock trading strategy, education is of utmost importance. Traders should always go into any trading strategy with a sound mind and an outline of all the possible risks. By doing that, traders ensure they’re making clever financial decisions.  Therefore, it is essential to thoroughly understand the stock you are shorting, including its financials and any potential upcoming events that could affect the price. Be Aware of the Borrowing Cost  When you short a stock on Robinhood, you borrow shares from another user. This means you will be charged interest on the borrowed shares, known as the borrowing cost. This cost can be high and should be factored into your overall trade plan. Keep an Eye on Your Account Value When you short a stock on Robinhood, your account value will decrease if the stock price rises and increase if the stock price falls. So keep an eye on your account value and be prepared to adjust your trade plan if your account value drops too low. Be Mindful of the Margin Requirements  Short selling on Robinhood requires a margin account, meaning you will need a minimum amount of cash or securities to cover the potential losses.  Be sure to understand the margin requirements and keep your account balance above the minimum to avoid a margin call. Consider Shorting ETFs or Options  Robinhood also allows short selling of ETFs and options. Shorting ETFs or options can be a good way to gain exposure to a specific market or sector without shorting individual stocks. Much like shorting stocks, shorting ETFs and options is just as risky.  Conclusion Short selling on Robinhood can be a useful strategy for experienced investors looking to profit from falling stock prices. However, it is essential to understand the risks and go with a plan.  Robinhood is a popular platform for shorting, and the process of shorting on Robinhood is relatively straightforward. But it is always important to consider the risks and do your research before making any trades.

Rich Dad, Poor Dad: Lessons You Need To Know

February 11, 2023

Reading Time: 4 minutes“Rich Dad, Poor Dad” is a must-read personal finance book by Robert Kiyosaki. Personal finance books are excellent resources that offer an in-debt introduction to numerous finance topics. But few personal finance books are as commercially successful as Rich Dad Poor Dad. The book is a smash hit and has sold millions of copies worldwide. If that’s not enough, the book has been translated into multiple languages.  So what exactly is the book, and what lessons can we take from it? Let’s dive in to find out. Rich Dad Poor Dad Lessons – An Overview  The book looks at two cases- the successes and failures of his two fathers (his biological and his best friend’s father). Poor Dad is Kiyosaki’s father, while Rich Dad is Kiyosaki’s best friend’s dad.   The book’s most interesting points are the two fathers and how they are completely opposite in their approach to financial wealth.  For example, Kiyosaki’s father was highly educated but struggled to put his finances in order. Nevertheless, he believed in being a good student and finding a good job. These are overly positive attributes that most of us associate with financial success. On the other hand, his friend’s father was less educated, as he was an eighth-grade dropout. However, he was rich. Unlike Kiyosaki’s father, his best friend’s father believed in financial education instead of traditional education. And here lies the important lesson from Rich Dad Poor Dad. Kiyosaki writes the book so that we can take these lessons from it.  The book aims to educate readers on how to acquire and, most importantly, manage their wealth through storytelling. We have prepared a series of lessons from Rich Dad Poor Dad to help educate you and improve your financial literacy.  4 Rich Dad Poor Dad Lessons About Acquiring and Managing Wealth Both fathers were highly influential in Kiyosaki’s upbringing. However, both fathers had different perspectives on wealth and how to acquire and manage it efficiently.  He used that to write a book that outlined the important lessons he had learned over his life. Here are the four Rich Dad Poor Dad lessons everyone must learn:  Key Lessons: Let’s examine all four lessons in more detail. Lesson 1: Importance of Financial Education No Rich Dad Poor Dad lesson is more important than the very first – financial education. Kiyosaki writes and argues that the traditional education system does not adequately prepare young people for the financial world. He argues that schools and colleges don’t prepare you for financial success and that it is up to individuals to seek more knowledge and develop skills to help them build wealth. But most importantly, it’s up to the individual to grow their wealth.  Rich Dad Poor Dad’s learning topics include investing, entrepreneurship, and personal finance management. Lesson 2: Power of Mindset and Attitude for Financial Success The next lesson from Rich Dad Poor Dad is tied to each individual’s psyche. Namely, Rich Dad Poor Dad argues that individuals have a certain attitude toward financial success.  Some people use the power of mindset and attitude to acquire and manage their wealth. In this lesson, Kiyosaki emphasizes the importance of adopting a mindset. But not just any mindset; a wealth-building mindset.  With the right attitude and mindset, individuals can take control of their finances and secure their futures. Moreover, individuals with this mindset take a more proactive approach to seeking wealth opportunities. Kiyosaki argues that this wealth-building mindset will allow you to take calculated risks instead of following the traditional path to success by building a career and depending on a steady paycheck. Lesson 3: Diversifying Your Income Kiyosaki’s best friend’s father taught him a fundamental lesson on income diversification. Income diversification means you should never put all your eggs in one basket.  His biggest advice is to disregard the traditional form of income, as these forms prevent you from acquiring wealth. For clarity, these forms include salaries and wages.  Instead, Kiyosaki argues individuals must turn to alternative income streams, such as investments and perhaps even entrepreneurship. The reasoning for this Rich Dad Poor Dad lesson is that alternative incomes help mitigate financial risk.  Lesson 4: Building Long-Term Wealth The final Rich Dad Poor Dad lesson prepares you for the future. Kiyosaki argues the importance of a long-term perspective when acquiring and managing wealth. He says short-term gains are risky and often fail to achieve the individual’s ultimate goal – long-term financial success.  Therefore, one of Kiyosaki’s advice is to avoid short-term gains and focus only on the long term. In his eyes, long-term success is crucial for acquiring, building, and managing wealth.  Conclusion These Rich Dad Poor Dad lessons will help you better understand the world of finance. But the ultimate aim of these lessons is to think differently about the term wealth.  In a sense, Kiyosaki argues everyone should be like his best friend’s father. Although not a good student or very gifted, his focus on financial education ultimately made him a millionaire.  On the other hand, his father was a true boy scout. He followed the rules, finished college, and got a well-paying job. But that got him nowhere but stuck in the middle class.   The ultimate conclusion to our Rich Dad Poor Dad lessons is that individuals should adopt non-traditional ways to acquire, build, and manage wealth.  From financial education to adopting a wealth-building mindset, diversifying your income and keeping your eyes fixated on the long term will help you take control of your finances and be rich. 

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