Investing and Trading 101: Investment Ideas for Newbies

Published on: 28 January 2019 Last Updated on: 22 February 2020

Investing and trading, alongside entrepreneurship, are the backbone of America’s economy. However, investing and trading are two of the more intimidating routes to take on the road to wealth.

When you take the entrepreneurship route, you put your money into a business, but it is more than likely in a field that you understand well. As far as trading and investing go: well, many people who have no interest in finance as a career don’t even know that they’re two different things. That’s a good place to start, so keep reading to learn some of the basics about trading and investing.

How are trading and investing different?

Trading and investing share similarities, but their difference lies mainly in their intent. Trading is a quick investment strategy, and investing is much more long-term. A day trader might buy and sell the same stocks in the course of a day based on price fluctuations. An investor might hold on to their stock for decades. They both have their benefits and risks, but your first big decision is to answer the question of whether to trade or invest.

Trading can be instantaneous and compulsive, or at least that’s how it may seem to the untrained eye. You’ve seen the images of the traders yelling frantically on the floor of the New York Stock Exchange. How could anyone gather anything intelligible from that ruckus? Movies about Wall Street depict rambunctious firms where the office is as lively as the floor of the NYSE. All of this raw energy is because there is big, fast money being made and lost, and for them, it is all about pulling the trigger on a deal at the right time to make a profit.

A major benefit of investing is that it’s a great way to set yourself up for early retirement. It’s all about the long game: you put money into hedge funds, bonds, shares, and property, and then you forget about that money until you are ready to withdraw your revenue. You don’t make money overnight as an investor, but that’s not what investing is about. A good investment strategy is a solid retirement plan.

Trading 101:

There are several markets that you can trade in, and each one has its strengths. You can trade stocks, bonds, or commodities to name just a few. It is wise to invest in more than one market and diversify your portfolio — this is one way to safeguard against taking large losses.

Trading stock is trading shares of companies. You buy stock in a company, and when it is to your advantage, you sell it for a profit. However, it quickly becomes much more nuanced than that. Stock trading is a gambling game, but with the right guidance, you can make money quickly.

Trading commodities are different than buying stock because rather than buying a share of a company, you are buying a product to sell. Trading commodities require a little bit more knowledge, especially in relation to the commodity being traded.

For example, if you grew up in Texas and worked on an oil rig during your early adult years, then you might have more of a knack for crude oil trading than someone with no knowledge of oil or trading. If you grew up helping your parents out on a farm, then you may learn how to trade food commodities more easily.

Before you trade or invest, it is important that you do your own research. Get to know the market(s) that you are thinking about investing or trading in. You have an opportunity to earn extra money right away or invest for the future, and if you study and be patient, you’ll be successful.

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How to Apply for and Get Employee Retention Credit (ERC)

The Employee Retention Credit (ERC) is a tax credit that was introduced as part of the CARES Act in 2020 to help small businesses retain their employees during the COVID-19 pandemic. For wages given to qualified employees between March 13, 2020, and December 31, 2021, employers who participate in the ERC are entitled to receive a refundable tax credit of up to $5,000 per worker. The credit has since been extended and expanded under subsequent legislation, making it an important resource for small businesses that have struggled with the economic impact of the pandemic. As a small business owner, you may be wondering if you are eligible for the ERC and how to go about claiming it. This guide will walk you through the eligibility requirements, calculation, and application process for the ERC. We'll also answer some common questions about credit and provide tips for maximizing your benefit. If you're a small business owner looking for ways to retain your employees and stay afloat during these challenging times, read on to learn how the ERC can help. Eligibility Requirements The eligibility requirements for the ERC are determined by the IRS and are based on several factors, including the size of the business, the impact of the pandemic on the business, and the number of wages paid to employees during the qualifying period. Employers who had a significant drop in gross receipts compared to the same quarter in 2019 were considered eligible for assistance under the CARES Act. This condition was determined by two factors: first, whether the employer had a whole or partial suspension of activities as a result of a government order linked to COVID-19, and second, whether the firm had had a considerable decrease in gross receipts. Subsequent legislation has expanded eligibility to include employers that experienced a decline in gross receipts of at least 20% in any quarter of 2020 or 2021 compared to the same quarter in 2019, among other criteria. It is important for small businesses to carefully review the eligibility requirements for the ERC to determine if they qualify for the credit. This will help ensure that they can maximize their benefits and receive the financial support they need to retain their employees and stay afloat during these challenging times. ERC Calculation The ERC is calculated as a percentage of qualified wages paid to employees during the eligible period. The credit rate is 50% of qualified wages for the first half of 2021 and 70% of qualified wages for the second half of 2021. The maximum amount of qualified wages that can be taken into account for each employee is $10,000 per quarter, which means the maximum credit per employee is $5,000 for the full year. The maximum amount of the ERC is $5,000 per employee for the full year. This means that if an eligible employer pays qualified wages of $10,000 to an employee during the eligible period, they can claim a credit of $5,000 for that employee. To claim the ERC, eligible employers can reduce their federal employment tax deposits or request an advance payment from the IRS. If the credit exceeds the employer's federal employment tax liability, they can request a refund for the excess amount. It's important to note that employers cannot claim the ERC and the same wages for other relief programs like the Paycheck Protection Program (PPP). How To Apply For The ERC? To apply for the ERC, eligible employers can claim the credit on their federal employment tax returns, including Form 941 or Form 943, for the eligible quarters. They can also request an advance payment of the credit by filing Form 7200 with the IRS. Eligible employers should consult with their tax advisor or accountant to determine the best method for applying for credit. Documentation Required To support their claim for the ERC, eligible employers must maintain documentation that shows the number of employees and the number of qualified wages paid to them during the eligible period. The documentation should also show the impact of the pandemic on the business, such as government orders or significant declines in gross receipts. Deadline To Apply The deadline to apply for the ERC is generally three years from the date the federal employment tax return is filed or two years from the date the tax is paid, whichever is later. Eligible employers should file their employment tax returns and claim the ERC as soon as possible to maximize their benefits. It is important for small businesses to understand the application process for the ERC, including the documentation required and the deadline to apply. Conclusion The Employee Retention Credit (ERC) is a valuable financial relief option for eligible small businesses impacted by the COVID-19 pandemic. To successfully apply for and receive the ERC, small businesses must meet the eligibility requirements, understand how to calculate the credit, and follow the application process, including providing the necessary documentation. The ERC can provide small businesses with much-needed financial support to retain their employees and sustain their operations during these challenging times. It is important for eligible businesses to take advantage of this program and consult with their tax advisor or accountant for guidance on how to maximize their benefits. By following the guidelines outlined in this guide on how to apply for and get the Employee Retention Credit (ERC) for small businesses, eligible employers can receive the necessary financial support to navigate the pandemic and emerge stronger in the future. Additionals: Understanding How Employee Recognition Can Aid Your Consulting Firm Things to Consider When Sourcing Employees for Manufacturing Plants 5 ways employee perks can dramatically enhance your personal life

5 Reasons You Should Respond To Every Customer Complaint

Any business encounters a customer complaint at some juncture. Despite the best of intentions, there will be situations when a client leaves feeling dissatisfied. Such a customer may initially try to seek resolution from the business itself, but increasingly, they are more prone to air their grievances on social media platforms. When such negative feedback is published online, it becomes a permanent fixture. This puts business owners and managers in a position where they must make a choice: either overlook the complaint or use it as a platform to exhibit their c for everyone to witness. Here Are Five Prime Reasons You Should Respond To Every Customer Complaint Here are some reasons why responding to customer complaints is crucial for your business's success. 1. Forge Strong Connections Customers tend to be doubtful, particularly regarding reviews. Research indicates that only 39% of consumers believe retailers seriously consider their feedback and an additional 22% feel this simply never happens. Making public responses to your reviews is the initial action towards alleviating these suspicions. Don’t solely concentrate on responding to negative feedback. Yes, one and two-star reviews should be addressed first, but recognizing customers who have given you positive reviews, even with a plain “thank you,” can greatly enhance brand loyalty and demonstrate to the world that you value every piece of customer feedback. Ensure your responses strike the right note. This is your opportunity to initiate dialogue with your customers and exhibit the personable side of your brand, so think deeply about the image you want to project. 2. Motivate Employees When your entire support team commits to elevating customer satisfaction by gaining insights from customer interactions, it naturally leads to fewer disgruntled customers and boosts motivation. Employees feel more motivated and their morale improves when they're not constantly dealing with negative feedback or hostility in every interaction. If you're overwhelmed, you could outsource professional answering services from Absent Answer to handle any high volumes of customer interactions. 3. Complaints Help to Pinpoint Defective Products Regrettably, despite rigorous quality control measures, defective products occasionally reach consumers. Organizations need to be informed about these flawed items by customers to rectify similar issues that might exist in other products. This scenario is especially relevant when a discourteous employee interacts with customers over the phone. Many individuals would prefer not to expend the effort to report such instances of rudeness. However, without this feedback, a manager may remain oblivious, potentially resulting in a single employee driving numerous customers away. 4. Complaints Pave the Way for Service Improvement Opportunities Studies indicate that a customer whose concerns have been addressed satisfactorily tends to be more loyal than a customer who has never had any issues. Complaints provide a chance to demonstrate to the customer that their satisfaction is a priority for the business by implementing service recovery measures. Numerous businesses implement a service recovery strategy to handle those occasional yet significant instances when customers feel their expectations have not been met. A well-executed service recovery program can potentially convert a dissatisfied customer into a loyal patron, who may be more satisfied than if they had never experienced problems. 5. Improved Digital Presence Complaints on review sites and social media are becoming more common. While it might be disconcerting to publicly display a customer's dissatisfaction, remember that potential customers expect to see some negative feedback. The key is demonstrating that your business is proactive and committed to satisfying its customers. Responding to complaints by regretting any less-than-positive experiences shows potential customers they can trust your service. In your response, highlight your eagerness to rectify the situation. Once you've addressed the issue publicly, follow up privately as well. This prevents the possibility of an extended discussion overshadowing your initial response. Generally, you'll be able to resolve the problem and, apart from maintaining a positive public image, you'll also enhance your reputation with the affected customer. Tips on How To Effectively Handle Customer Complaint Responding to customer complaints as soon as possible is crucial as it sends a message to them that the business or organization values their concerns and feedback. Moreover, ensuring customer satisfaction also helps in building and maintaining one’s brand reputation. However, handling and responding to customer complaints is not an easy thing to do. Here are some tips on how to effectively handle customer complaints. Go Through The Complaint The first step to effectively handling a customer complaint is actively listening to the customer and trying to understand the issues that they are facing with your product or service. If you are reading online reviews feedback or complaints sent via email, then don't just skim through. Make sure to read the review thoroughly from top to bottom. While reading through the reviews, you should also try taking notes such as product or service number, day and date of the incident, and any other information that you think is relevant. Carefully reading or listening to the complaint will help you to understand the issues and determine a suitable course of action. Stay Professional and Apologise to the Customer It can be difficult to accept criticism, be it online or face-to-face, especially if it is about your business that you have worked hard to build from the ground up. However, it is crucial that you stay calm while listening to or reading customer complaints, even if you think that they are wrong, lying, or being unreasonable. Getting emotional or worked up over customer complaints and then reacting angrily in front of customers will only escalate the situation and harm your brand’s reputation. So be professional and apologize to the customer even if they are the ones who are in the wrong. You should also be courteous and thank them for reaching out to you and voicing their frustrations and assure them that you are looking into the issue. Most of the time, apologizing immediately to the customer can go a long way toward defusing the situation. Formulate A Course Of Action To Resolve the Customer Complaint Once you have carefully heard or read the customer complaint and understood the issue, try to formulate a suitable course of action. Some problems can be easily resolved, while others may take some time. If the issue can be fixed easily, then you should get back to the customer as soon as possible with the solution. The customer will appreciate the promptness on your part, and it will go a long way in ensuring customer satisfaction. However, there can be issues that cannot be resolved quickly. In that case, you should determine how much time it will take for you to fix the problem. At the same time, be honest with your customers and tell them that you will need some time to fix the issue and provide them with a timeline. Here are some additional tips on what to do after the complaint is resolved: Follow up with the customer after the issues are fixed and make sure they are happy with the outcome. You can ask for their feedback on how you handled the complaint and what you can do better next time. Try to exceed their expectations by offering them something extra, such as a discount, a freebie, or a referral. This will help you turn a negative experience into a positive one and increase customer loyalty and retention. Endnote If you've been neglecting your reviews, feeling too anxious to reply, or simply haven't had the opportunity, there's no more suitable time to start than now. Responding to all your reviews, whether they are positive or negative, can contribute immensely to strengthening trust in your brand and depicting your company as one that genuinely listens and deeply values its customers. Read Also: 5 Most Common Digital PR Mistakes And How To Avoid Them The 7 Steps to Create a Storybrand to Ensure Marketing that Works How Customer Success Can Help Grow Your Business

Five Reasons Why Freelancers Should Use a Coworking Space

Being a freelancer can be an empowering job. You have the freedom to move around and work from anywhere, you can pick and choose which jobs you want to take, and at the end of the day, you answer only to yourself. However, freelancing is not without its challenges. Working alone can be isolating. You lack the camaraderie of traditional office jobs, and your friends may not relate to your struggles and challenges. For this reason and more, freelancers should consider investing in coworking spaces. Here are just a few of the career-boosting benefits to be gained: 1.Networking Opportunities Networking on a daily basis can be challenging for freelancers. Unless you are actively working your LinkedIn contacts or attending local networking events, you rarely get the opportunity to talk about your work with outside parties. Working in a coworking space immerses you in a shared setting with people from different organizations. While everyone in the shared space is there to do their work, it is easy to strike up a conversation while waiting for the coffee to perk or during a break. You may find that your neighbor not only has a penchant for caffeine but also needs a freelancer for future projects. 2.Removes Household Distractions Sometimes the biggest challenge to freelancing is the most mundane: housework. When you are a freelancer, sometimes your office doubles as your kitchen or living room. While the small task of putting in a load of laundry or unloading the dishwasher doesn’t seem like much, these time-consuming distractions can add up. There’s also the added sense of guilt work-from-home individuals often face, feeling like, even though they are working, they should be doing more to maintain their home. Leaving the house doesn’t make your dishes magically disappear, but it does put them out of sight and out of mind so you can focus on your work. 3.Reduces Isolation and Depression Social interaction plays a huge role in mental health, even for introverts who thrive on solo work. Freelance work can be an amazing opportunity for someone who struggles with depression and social anxiety, but it can also contribute to these disorders. Going to a coworking space gives you a reason to get up, get dressed, and get out of the house in the morning. Even if you don’t have a meaningful conversation with anyone, you will benefit from being immersed in a social environment. In a virtual world, face-to-face social interaction is a rare commodity with surprising antidepressant benefits. 4.Better Productivity Statistics show that people working in a coworking space have 68% better focus overall and 64% better adherence to deadlines. This boost in productivity may be a culmination of the other factors on this list, but the numbers speak for themselves. If you find yourself in a motivational slump or know you have a large amount of work to get through before a deadline, working in a coworking space may be the boost you need to charge through and get things done. 5.Changing The Scenery It is estimated that by the end of 2017, over one million people will have worked in a coworking space. This growing trend has created market demand for coworking businesses around the globe. As such, there are different options to choose from. As a freelancer, you could work in different places at different times of the year. Depending on the commitment requirements of the space-- and the cost implications-- you could keep things fresh by changing coworking locations on a regular basis. On the other hand, if you find a particular provider you enjoy, you could check out their coworking spaces in other parts of the world. This opportunity will fuel both your social needs and your travel bug in one shot. Refuse to Settle These are just a few reasons why you should consider investing in a coworking space as a freelancer. With libraries reaching capacity throughout the day and coffee shops changing their time and laptop use limits, a coworking space is a perfect opportunity to get your work done in a fresh, engaging environment. Read More: Questions To Ask When Working With A Web Developer Why Your Business Should Care About Social Responsibility Top 4 Reasons To Outsource White Label PPC For Your Business 10 Reasons Why Automation Of Procure-To-Pay Cycle Is Critical

Investing and Trading 101: Investment Ideas for Newbies

How are trading and investing different?

Trading 101:

Why Casters Should Be Included In Your DIY Projects

Why Many Businesses Owe Their Success to Quality Scales

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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How to Apply for and Get Employee Retention Credit (ERC)

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Investing and Trading 101: Investment Ideas for Newbies

How are trading and investing different?

Trading 101:

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Why Casters Should Be Included In Your DIY Projects

Why Many Businesses Owe Their Success to Quality Scales

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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Follow Us

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