DiversyFund 5 Steps to Protect Your Portfolio in a Difficult Environment

Published on: 22 April 2019 Last Updated on: 02 March 2020

It is easy to get excited when the stock market is up, but what happens when prices start to fall? For many investors, a falling stock market is a reason to panic, but selling out when prices are low can be counterproductive – and a sure way to destroy a carefully crafted portfolio.

If you are feeling a bit overwhelmed by the state of the market, you can ease your worries by diversifying your portfolio. Instead of panicking, you should utilize the five-step survival strategy Craig Cecilio, founder of DiversyFund, created as your guide.

1. Do a Gut Check:

A severe market downturn or prolonged bear market will test the mettle of even the most seasoned investor. Even if you think you have a high tolerance for risk, now is the time to do a gut check.

If you are feeling freaked out about the current downturn, your risk tolerance may not be as high as you think. Now is the time to reassess the situation and make any changes you feel are necessary. If you are working with a financial advisor, schedule a meeting to review your portfolio and assess your current level of risk.

2. Build Your Emergency Fund:

Having a significant portion of your assets in cash and fixed-income investments can cushion the fall when the stock market declines. When the stock market hits a rough patch, those emergency reserves become even more important, so take a good look at your portfolio and make sure you have sufficient savings.

Financial experts recommend that you have a minimum of three to six months’ worth of living expenses in an emergency fund, more if your job situation is uncertain or you are worried about the future. If you feel you are too heavily invested in stocks, pulling some cash off the table and adding it to your contingency fund might make sense.

3. Take Advantage of Rising Interest Rates:

The stock market often struggles when interest rates are on the rise, but those rising rates could be a golden opportunity. If you have an emergency fund and stash of contingency cash (and you should), take advantage of rising rates to boost your passive income.

If your emergency cash and contingency funds are sitting in a low-interest savings account, look around for other, higher yielding alternatives. Moving your funds to a money market or online bank could increase your earnings and help you get more for your money.

4. Chill Out:

Focusing on the day to day swings of the stock market is enough to drive anyone crazy, so take a step back and try to relax. Even if those daily dips seem frightening, thinking longer term and exploring alternative investments could have a calming influence. As they say, time in the market is better than timing the market.

5. Look for Buying Opportunities:

When planning investments, it is crucial to consider diversifying investments to mitigate overall risk. One way to diversify your portfolio is to consider real estate, specifically multifamily real estate. If you’re looking for less hassle and more security, a real estate investment trust (REIT) could be a good option to explore. REITs allow investors to diversify their portfolio without the difficulties of directly acquiring the property. REITs invest large amounts of money into residential multifamily homes, commercial buildings, healthcare facilities, and large-scale industrial buildings as well.

Investing in real estate is an excellent option for long-term investment. The typical real estate investor purchases a property and holds it for an expected increase in value or rents it out using the rent to bolster his or her income. Real estate that has been purchased through a retirement plan is also held for a longer period of time in order to realize a higher profit.

Market downturns can be scary, and nothing can completely eliminate fear. Even so, panicking will do you no good, and it could do you a lot of harm. Taking a step back, and taking the right steps, could protect your portfolio during the downturn and put you in a better position when things turn around.

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A Beginner’s Guide In Using MT4 On A Mac

As described by most forex traders, MetaTrader 4 — is by far the top forex trading platform you can use today. The MT4’s trading platform is an all-in-one platform for all of your forex trading needs — from market analysis to all the additional services a forex broker will offer. Although MT4 was initially created for Windows, the application is now also available in Mac. And if you’re wondering what MT4 application to use for your Mac, you can open a meta trader 4 for your mac here. Here’s a beginner’s guide in using the MT4: What’s inside the platform? There are four main panels on the MT4 platform, the navigator, market watch, terminal, and chart panels. Let’s discuss each one and some of their uses. 1. Navigator Panel: This panel enables you to access your trading accounts. This also allows users to create a trial account to test new strategies before trading in the market. Additionally, the navigator panel offers a feature to add various indicators — trends, oscillators, and volumes — on your chart panel. You can even customize your own indicators through MQL4 or MetaQuotes Language 4, the integrated programming language for developing indicators in MT4. 2. Market Watch: This is where you’ll find all the various instruments that are tradable, such as forex pairs, energies, precious metals, and indices; and it also displays the current bid and asking prices alongside its instrument symbol. The market watch panel also allows you to have access to a set of options by clicking a specific instrument symbol. These options are: Chart window - This opens a new chart of your selected instrument. New order - This opens a trade on your selected instrument. Depth of market - This will display the bid and ask prices of a specific instrument. Tick chart - This will display the sales activity of the forex pair. Specification - This will display the contract specifications of a particular instrument — swap rates, contract size, and spreads. 3. Terminal Panel: This panel allows quick access to your trading history and account. The terminal panel displays various tabs along the bottom side of the panel, such as: Trade - Allows you to view your pending orders and open positions. News - This displays the relevant and important trading headlines. Account history - This displays all your executed trades. You can also view your withdrawal, deposits, profits and loss, and credits in this tab. Alerts - This displays the list of alerts and notifications, such as instruments reaching a specified price. Mailbox - This is where you can view the messages sent via this platform. Journal - This tab lets you view your account’s systems messages, such as filled or edited orders, login times, and closed positions. 4. Chart Panel: The chart panel is probably the most recognizable panel of the trading platform, as this panel shows a particular instrument’s price movement. The charts can be viewed as lines, price bars, or candlesticks. And if you’re tracking multiple instruments, this panel can display multiple charts on a single screen. Additionally, this panel also allows you to view the charts in various timeframes, from one minute to one month charts. MetaTrader 4 trading: How to open a currency pair trade: The easiest way to set up a trade in MT4 is to utilize the Order window to place an order on the market by doing these steps: Select the chosen currency pair by clicking the Window tab of your MT4 platform. Select New Window Click New Order on your toolbar, or open the Order window by pressing F9. Enter your chosen trade size in the Volume box. Choose Market Execution in the order type Click sell or buy How to close a trade: When you’re done opening the trade, of course, you’ll eventually need to close the trade. Here’s how to close: Click the Trade tab from Terminal window. Right-click any order you want to close on the Trade tab. Select Close Order Select the Close button on the Order window to close the trade. How to add currency pairs: If there’s a specific currency pair that you’d like to trade, but it’s not visible in the Market Watch window, then follow these steps to add currency pairs: Press CTRL+U to open Symbols In the Symbols window, look for the currency pair you’d like to add. Click the symbol and click Show to add the currency pair. Closing thoughts: Although setting up and placing trades in MT4 is easy, learning the platform’s powerful features and intricacies to fully take advantage of the program can actually take time and effort. May you use this guide as a stepping stone to start trading in the MT4 platform. Read Also: Forex Trading Wisdom: Talk Yourself Out Of Bad Trades What To Expect When You Become A Forex Trader

7 Advantages in Hiring a Third Party Company to Manage your Accounting

Running a small business in the market today can be quite demanding and involving, especially when it comes to the need for different skills, experiences, and competencies necessary to handle different tasks. As a business owner, you may need to hire the services of a professional consultant company to provide technical help where necessary. One of the commonly demanding tasks in a business that you may need to outsource services from a third-party consultancy company is in the area of accounting. The skills required to accomplish professional accounting in a small business are too involving in ways that small businesses often prefer working with external consultancy service providers. Working with a hired third-party company to manage your business’s accounting needs is advantageous in several ways. It saves you money: One of the key advantages of working with a consultancy company is that you get to save much on the cost required to get the financial services you need. When hiring an outside financial consultancy and accounting company to handle your business’s accounting needs, you are not mandated to provide the necessary resources such as office space, software, furniture, and other crucial elements that are necessary to facilitate the third-party businesses’ operations. Generally, this is an advantage to your business. The one-time contractual agreement between your company and the third party consultancy reduces the financial burden upon your business. This is as opposed to a situation where you would be required to hire competent accountants and financial experts to handle your business’s financial and accountancy needs. In such a case, your business will be required to provide the necessary resources in addition to providing a competitive salary, benefits, and remuneration to the workers. Saves on time: Hiring the services of a professional consulting company to provide accounting consultancy services to your business gives you an opportunity to save on the time that may be dedicated to other tasks. Accounting is one of the most demanding business activities as it involves compiling accurate reports from thousands of transactions in a business. To be accurate in the accounting reports generated, one must put in much time and resources into accounting operations and calculations. As a business owner, the time that would have gone into performing the accountancy operations in your business may be allotted for other crucial business tasks. Exposure to professional and competent services: Professional businesses such as Gold Coast TW Accounting that offer consultancy services in the area of accounting and finance are normally competent enough to provide reliable and accurate services. Such consultants, as compared to hired accounting workers in your business, prove more resourceful in terms of providing accounting services with competence, confidence, and certainty. The results of the accounting process for your business may also come in handy with crucial interpretations that may help your business to improve on its financial performance in the market. Contractual services: For your business, working with a hired accounting consultancy company is much advantageous, especially since the contractual agreement between your business and the consultant can be altered to your advantage. The contractual agreement between your business and the consultant, in such a case, can be varied such that your business gets the upper hand in terms of the quality of service you receive. In case the contract does not satisfy your business’s needs, you have the upper hand and capacity to terminate the contract at a moment’s notice and seek to hire the services of a more qualified accounting consultant who will meet your specific needs. This is as opposed to instances where you work with employees whose terms of engagement may be too complicated to terminate at once without causing legal repercussions. Increased market exposure: Whenever you hire external financial accountants to handle your business’s accounting operations, you get a significant level of market exposure. The professional accountants come equipped with knowledge on how other businesses in the market have been performing financially. Such knowledge may come in handy in cases where the consultant may provide technical insight on how your business is doing financially as compared to your competitors. Besides, the technical expertise and advice provided by such consultants may also help in other areas of your business management. For example, the accountants may provide insights on how to simplify and increase your networking and market relationships with your customers and other businesses as a strategy of bettering your financial performance. Unbiased results: Hiring the services of a third-party company to manage your accounting needs in your business reduces or eliminates the risk of being exposed to biased accounting services. Professional accountants who provide consultancy services in businesses have zero tolerance for bias. Such bias may otherwise set-in in cases where internal accounting department workers willfully manipulate the accounting records to give you a false impression of good performance in your business. Having reliable results comes in handy as far as the long-term sustainability and survival of your business in the market are concerned. Get the peace of mind: Accounting operations in business are mind-bogglingly challenging to effectively carry out. The challenges associated with successfully carrying out accounting operations internally may deny you, as a business owner or manager, the peace of mind necessary to successfully undertake other tasks. Hiring the services of an external accountant to do such complicated and voluminous accounting tasks reassures you and gives you much time to focus on steering your business forward. Besides, the professional consultants know the precise records that they should go after in your business to do comprehensive and reliable accounting work. In general, hiring an external company to manage accounting tasks in your business gives you a comparative advantage as compared to instances where you work with internally based workers hired in your business’s accounting department. The high-quality accounting services that you receive from such qualified personnel providing accounting consultancy services are crucial to the financial survival of your business. You may also receive an added advantage on the technical advisory you receive from the consultants on how to steer your business to financial success. Read Also: Balancing The Books With Outsourcing – Virtual Receptionists Major Financial Problems That Can Affect A New Business Why You Should Choose To Have An Asset Protection For Your Business Don’t Do The Math: 5 Reasons Outsourced Bookkeeping Services Are The Right Choice For Your Business

A Beginners Guide to Investing: Getting Started in 8 Simple Steps

Did you know that 61 percent of people find investing scary or intimidating? This number is even higher when it comes to millennials. Investing in the stock market isn't just something super clever people do. You don't have to be really wealthy to start investing in stocks. But you do need to know what you're doing before you get started. That's why we've put together this beginner's guide to investing. Get started with our guide to investing in 8 simple steps. 1. What is Investing? Instead of just putting your money into your bank account and allowing it to earn interest, an investment is a risk. You're not guaranteed any returns on your investment. Therefore, you have the chance of making a lot of money if you play your cards right. But you also could make a mistake resulting in less money than with which you started. You can even lose it all. There are multiple different kinds of investments you can make. These include: Shares Funds Bonds Property (check out Turner Investment Corporation for a place to start) Whiskey Land Antiques This includes everything from the conventional shares and funds to the less obvious whiskey and antiques. It's basically anything that you believe will increase in value over time. But for our purposes, it's best to focus on the stock market. This involves buying shares in one or more companies to make a profit over time. When most people think of stock markets they imagine lots of young and flashy stock brokers shouting "buy!" and "sell!". But the truth is that it's much more boring than this. It's actually about selecting a number of shares or funds, tracking how they're doing and pulling out when you think it's a good time. 2. Stock Markets and How They Work A stock market is just a place where people come together to buy and sell shares in companies. Each share is listed on what's called an exchange. But how do shares come about? Companies provide investors the chance to support what they're doing with cash. This allows the company the chance to grow and the investor to make money on the back of this success. When you invest in a company, you become a shareholder. You can trade this share in the company with anyone else who wishes to purchase it from you. Even though the original price of each share is determined by the company itself. From thereon, the price of each share is influenced by a number of factors from the strength of the overall economy to the financial health of the company. Depending on these factors, the price of the company will rise and fall in the stock market. 3. How Much Can I Make by Investing? This is the real reason why people start investing in stocks. They want to make money. But there's no simple answer to the question of how much you can make. But it's worth pointing out that in the current economic climate, savings rates are actually at an all-time low. This means that many people are searching for alternative means of making money. How much you can make by investing is also contingent on how bigger risk you can afford to take. The more you're willing to risk, the higher the potential of your returns. 4. How Much to Invest? So many people spend many years of their lives thinking that when they finally have some spare cash, they'll invest it. But this is actually the wrong way to look at investments. You don't need piles of cash to start investing. By investing a little amount regularly, you can build up your returns over time. It's important not to invest everything you've got in a single venture. "Not to put too many eggs in one basket" is excellent advice for any wanna-be investor. Together with traditional ways of investing, you should also look to put some money in alternative investments. You have to be able to afford to lose the money you're thinking of investing. If there's a stock market crash you could lose everything you've invested overnight. You should also make sure you can afford to put money into a share over a minimum of 5 years. You need to be able to plow through the bumps along the way to make anything in the long run. 5. What's a Share? Let's investigate a little further what a share actually is. It's a unit of value of a company. If a company is valued at $10 million and there are 1000 shares, each share would be worth $10,000. But the shares of the company can rise or fall according to the overall value of the company. People invest in a company because they believe the company will be successful in the future. By buying shares you get the chance to share in the success or failure of the company. Along with the profit you make when the shares increase in value, as a shareholder, you usually receive dividends too. This is a payment to you by the company from the profit generated by the company. 6. What's a Fund? If you want to buy shares, you can either purchase stocks or funds. Instead of purchasing the shares from the company, you pass your money to a fund manager. The fund managers bring together the money of a number of investors and purchase shares on the stock market for you. 7. How to Start Investing? There are a number of different ways to purchase shares and funds. But most people use what's known as a platform to make purchases. You have to select which platform you want to use to make your investments. After you've done this, you can select which investments you want to make. Confused? Think of it as buying milk from the store. You have to choose which store (your platform) you want to purchase the milk. And then you need to choose which milk (your investment). You'll also be charged for your shopping bag (user fees). 8. Should I Invest? Of course, it's always good to evaluate why you're investing in a particular company. Ask yourself - is investing right for you? History shows us that people who invest in shares over savings accounts receive greater returns. But this doesn't necessarily mean that investing is for everyone. Guide to Investing: Investing can often seem confusing and scary to the uninitiated. But the truth is it's much simpler than it appears. By following our start guide to investing, you can start making informed decisions about what you want to do with your spare cash. For more blog posts on financial issues, check out our blog. Read Also: Investing In Machinery For A More Productive Business What You Must Know About ELSS Before You Invest

DiversyFund 5 Steps to Protect Your Portfolio in a Difficult Environment

1. Do a Gut Check:

2. Build Your Emergency Fund:

3. Take Advantage of Rising Interest Rates:

4. Chill Out:

5. Look for Buying Opportunities:

How Artificial Intelligence Is Helping Banking and Financial Institutions?

Know the Applicable Stamp Duty when Gifting an Asset

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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A Beginner’s Guide In Using MT4 On A Mac

7 Advantages in Hiring a Third Party Company to Manage your Accounting

A Beginners Guide to Investing: Getting Started in 8 Simple Steps

DiversyFund 5 Steps to Protect Your Portfolio in a Difficult Environment

1. Do a Gut Check:

2. Build Your Emergency Fund:

3. Take Advantage of Rising Interest Rates:

4. Chill Out:

5. Look for Buying Opportunities:

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How Artificial Intelligence Is Helping Banking and Financial Institutions?

Know the Applicable Stamp Duty when Gifting an Asset

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

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