Basics Of The Player In the Financial Market

In the financial market, the funds flow from the surplus units who are called as investors to the deficit units who require funds.  However, in many cases, there is no direct link between these groups.  The market intermediaries like mutual funds, brokers, finance and leasing companies provide the link between these two groups. Similarly, in trading of digital currencies, the trading platform like there code acts as a link between the buyer and seller. Continue reading to learn all about trading.  There is a huge number of participants and player in the financial market. They are grouped as follows:

Players in the market

Corporate or firms- The firms are the net borrowers. They are always in need of funds for varied projects. These firms come up with different kinds of securities so the risk preference of the investors is met.  The money that is raised from issuance of securities is then invested in assets such as plant and machinery. Investors who hold the securities get dividends or interest from the money generated by the assets purchased.

Individuals- They are the net savers. The individuals buy the security that is issued by the corporate.  They provide funds so that the fund requirement of the corporate are met.

Government- Governments usually borrow funds in order to meet the budget deficit or to control the liquidity. When they require funds for a longer period of time, it is raised through the issuance of government funds and when they are in need of short-term funds (to maintain liquidity), it is raised from the money market.  The shares of public sector enterprises are subscribed by the government and they are responsible for making the initial investment.  But the shares (investments) are sold to the public through the disinvestment process.

Market intermediaries- In the financial system, there are many market intermediaries operating called as financial intermediaries. They are commonly known as investment bankers or investment managers. The major goal of these financial intermediaries is to ensure smooth working of the investment process and also to establish a bridge between the users of funds and investors.  These intermediaries help out the investors in selecting the investment and offer investment consultancy.

Regulators- The financial market is regulated by government agencies. The trading mechanism, overall fund flow, and participant’s relationship are controlled and supervised by the statutory agencies.  Apart from this, there are many government and legislative departments which regulate the financial market operations.

 

Basic Marketing Concepts

The strategy which a firm implements in order to satisfy the needs of the customer, to beat the competition, increase sales and maximize profit is known as a marketing concept.  Marketing is a management department which designs strategies that helps in building relationships that are profitable with target customers.  Marketing is very important in all aspects and without it, people will not be aware of the product or service.  For instance, there are various trading platforms which offer trading service. The software’s that are marketed well and offer good quality service will be preferred by the consumers.  Continue reading here to know more about trading platforms.

There are basically five marketing concepts that the organizations adopt and execute. Listed below are those concepts under which the companies create and carry out the marketing strategies.

Production concept- The customers will always favor those products which are easily available and are highly affordable. It is the oldest marketing concept which guides the sellers. However, if the organizations focus only on this concept, then they will lose sight of the ultimate goal.

Product concept- This concept is about offering the consumers with the products that are high in quality and performance. The product should contain innovative features to attract the customers. Product improvement and quality are a very critical part of marketing.

Selling concept- This concept follows the idea that if the organization does not take effort in promotion and large-scale selling, the customers will not be interested to buy the products.  Here the focus is given on creating sales instead of building a long lasting profitable relationship with the customers.  In other words, the organization is concentrated on selling what the business makes instead of producing what the customer needs.

Marketing concept– It is concerned with achieving the goal of the organization by knowing the wants and needs of the target customers and delivering the products at desired satisfaction.  They try to be better than the competitors.  Under this concept, the consumer value and focus are the passage to increase sales and achieve profits.

Social marketing concept- Under this concept, the marketing strategy is focused on delivering value to the consumers in a way which improves or maintains the society’s and customer’s well-being.  It is called sustainable marketing. The social marketing concepts give most importance to human welfare than the profit.  In today’s world, slowly the organizations are trying to adapt to social marketing concept.

 

 

 

Customer Behavior Study For A Successful Business

Before the launch of a product, understanding the behavior of the consumer is very critical for any organization. The organization will end up facing losses if it fails to analyze how the consumers will respond or receive a particular product.   Similarly, in trading, the investor behavior to play an important role in making a profit or incurring a loss. If you wish to keep aside human emotion from trading, you can choose to use the service of ethereum code which can conduct all the transactions in auto-pilot mode. Continue reading here to understand all about it.

Each customer has a different attitude aa and mind towards consumption and purchasing.  Understanding the concepts and theories of the behavior of consumer will helps in marketing the service or product successfully. In addition to this studying, the customer behavior will help in varied aspects.  The attitude of the customers towards the product purchase varies as there is always a change in trend, fashion, change in technology and living standards.  Understanding all these factors is important because the product marketing is depended on them.  Customer behavior is a successful tool that helps the marketers in meeting the sales objectives.

Importance  of customer behavior

The main goal of marketing is to satisfy the wants and demands of consumers. Customer behavior helps in achieving this purpose.  As the customers are considered as the most important person to make a business successful, it is crucial to consider all the likes and dislikes of the customers so that they could be offered the best product and services.  Study of the customer behavior helps the salesperson, marketers and business manager in the following way:

  • To create the best product which satisfies the consumer’s demands and needs fully
  • To take a decision on the price of the product which the customers would be willing to purchase the service or product
  • To take a decision on where the product or service will be made available so that it is easily accessible for consumers
  • To decide on the best way to promote the products so that it would be effective to get the attention of the customer so that they would be interested to buy the product
  • To know and understand when, why, what, how and other factors which will influence the buying decision of customers

The products should be marketed carefully so that it helps in achieving the organization goal and make a business successful.

If The Market Is Bearish Then Look For A Trend Change

Learn more about how to spot buying opportunities in a down trending market. A bearish market gets investors and traders worried and they get busier in offloading the shares in their portfolio. But a bearish market also gives trading opportunities.

A bearish market signals that the market is not performing well and that traders are selling off their stocks. Here you need to wait to see if the stock prices are coming close to a long-term demand zone. This is where you get to buy the trade.

A long-term demand zone can be spotted in the yearly or monthly chart. It could happen that the year or the monthly chart is still in an uptrend and this big fall in the stock prices was indeed a correction. You thus wait and watch to let the stock price enter the demand zone on a higher time frame chart.

How do you trade when the price reaches the demand zone?

After a fall in the prices in the market, you would not be confident to buy the stock right away. Thus wait for the stock prices to enter the demand zone of a monthly or yearly chart. Switch to a weekly chart and look at what the stock is doing. If the demand level was a strong one then-then the stock will start to show you a trend change from here. You can see this when the stock makes a higher high and higher low. When this happens you know that this is a signal for you to buy the stock.

Why should you buy at this level?

In a technical analysis term, this is a demand level. This is where you get the stocks at the cheapest price. So it makes senses that you buy the stocks at the wholesale price. After you enter the trade and if the trade moves in your favor then stick to the trade and ride with the trend.

Bearish markets thus give you one big advantage which is to buy the stock at a very low price. Thus when the market is bearish it is not just the time to panic and clear off the portfolio. It is also the time to add stocks to our portfolio. However, take care that you wait for the signal to turn to bullish before you buy the stock. Do not hurry because if the level is not a strong one then this could make you end up in a loss.

 

Using The Trend Line As A Support And Resistance Level

Many technical analysts use trend lines to take trades. Learn more about how trend lines are used to spot trading opportunities. Trend lines are something that most technical analysts use to spot the support and resistance levels. This is another way you can look at the levels to enter and exit the stocks.

How to plot trend lines

Plotting trend line is an art and every trader would be plotting different trend lines. This means that every trader would be drawing a different trend lone to take trades. The method to draw the trend line, however, has to be the same. What makes the difference is the point that every trader chooses.

The trend line is drawn by taking two points on the candles. So basically two candle tops or two candle bottoms are taken and the trend line is connected between them. Then the trend line is extended and it is seen if it touches another candle top or bottom respectively.

If the trendline touches three candles top or bottoms then this confirms the trend line. Now the trader will use it as a support or resistance level.

Trading the trend line

You join two candle tops and extend the line. When it touches one more candle top then the trendline gets confirmed. Now, this is the resistance level of the stock. When the stock touches this trend line in the future then that level is an area of supply and you either get out of the trade or short the stock here.

You could also use the trend line as a demand zone. You take two candle bottoms and then extend the line further. If it touches another candle bottom then that confirms the trend line. When the candle touches the trend line again you can use it as a demand level. This is where you enter the stock and buy it.

There could be biasedness involved

There is no one method to draw trendlines. Thus at time biasedness starts to creep in when you draw trend lines. Many traders try to force the trend lines to take trades. This is something that should not be done. The rule is that you join two points and then extend it. If the line touches another candle top or bottom then that confirms the trend line. If a candle goes past then the trend line stands to be void.

Follow the rules and take trades without forcing any trade.

Ways To Create Brand Positioning In Business

In a business, the brand name is a very important thing. The brand name should be an impressive and attractive one. Because the brand name is the only thing which will attract the customers and finally the business will grow with a lot of customers. Keeping up the brand positioning in the market is as difficult as naming a brand. There are ways to create brand positioning in the business market and let us have a look at those ways in this article.

  1. Know the current position:

Before we create positioning our brand, we should first where and at what position we are standing in the market. Because then only we can improve ourselves in all the ways and grab the top position in the business market.

  1. Competitors:

The competitors are the ones who play vital roles in brand positioning. Because every competitor will try to position their brand, so we should try to know the details of the direct competitors to our business and get to know about their current position in the market.

  1. Understand the ways from the competitors:

After finding the competitors, we can have some communication with them to know about the ways of brand positioning and try to understand it so that we can learn many new things.

  1. Comparison helps:

Definitely, comparison helps us in many ways because when we start comparing ourselves with the other businessmen, we can find the uniqueness in every business and thus helps us to develop ourselves by learning many new things from them.

  1. Set up a tagline:

Setting taglines and slogans will easily catch up the customer attention and so we can easily position our brand. We could have able to see many bigger companies will hand some unique taglines for their brand. This is just to show their product and brand in a different and unique manner.

  1. Test our brand:

Before brand positioning, we should test our brand by evaluating some things like whether it has the capability to grab the top position in the market. We should check if it will satisfy the customers by providing what they actually need and whether it will be easy to use. All the brand products should have some growth in the market and we should first examine it before we position it.

Conclusion:

Thus come to the conclusion that each and every businessman wish to be in the top position in the market. But it is very difficult as of now because nowadays we can see many duplicate products which are like the replica of the original product. So, we should be very careful while positioning and we can continue reading about it in many newspapers.

Impact Of Good Credit Score

Some facts to know about credit score is that whenever people talk about credit score they are mentioning about FICO score because scores are given by FICO. There are three different bureaus and every prime credit reporting bureaus will give separate scoring depending on the data they have got from every individual. Meaning, the FICO score got from Experian may be different from Equifax or TransUnion score, nevertheless, they will not differ drastically. Suppose you find that the difference the scores are very drastic it would be a good idea to do some investigation about it. You need to investigate various trading software, continue reading.

The highest credit scoring that one can possibly have is 850 whereas the lowest scoring they can get is 300. To be truthful, reaching a credit score of 850 is not possible because in order to achieve that combination of several factors should be perfect. In order to get a lot of rates of interest and favorable terms a director of public relations who works at FICO, Anthony Sprauve says that “if you have a FICO score above 760, you’re going to be getting the best rates and opportunities.”

Just by looking at the number you can imagine how hard it is to achieve that but on average in America, the credit score has ranged between 670 to 739. Some might feel that this range is depressing, but there is no need to panic as even if you are not able to reach 760 scores, it does not mean that you have to make payments in the form of cash throughout their life.

Why Good Score is Essential

For instance, suppose a person is looking to purchase a house of their own they need to have 500 scoring to qualify upon which they will get a Federal Housing Administration loan. Although several major loaners ask the score of 580 to be minimum for FHA loan. If the score is less than 620 getting a traditional mortgage is difficult and there are some loaners who ask for the score to be minimum 700. This is a reason why financial advisors say that people who wish to buy a house should not miss their payments and make use of credit cards excessively or have a lot of loans. In majority cases, it is necessary to have a stellar credit in order to become an owner of a home. One important thing to remember is that you will be offered a low rate of interest and you will be paying less if your credit score is good.

Points To Consider While Purchasing Cryptocurrency Trading Software

With millions of users trading in cryptocurrency market, the demand for this market is high and is expected to grow even bigger. This has led to the creation of many altcoins, cryptocurrency trading software i.e. trading bots, exchange platforms etc.

Even people with zero experience in trading are willing to trade in this platform due to its popularity. As a result, the trading software was created to ease the difficulty for traders in understanding the market psychology. The trading software comes with a high-end program to analyze market conditions, strategies, trend analysis, evaluate the future price of the cryptocurrencies etc. Trading software is backboned by strong algorithm and encryption codes. Check this review to know why trading software is essential.

If you are unfamiliar with cryptocurrency market and still planning to trade, then purchasing trading software is one of the recommended options. Below are the points to consider before purchasing the trading software.

1) Research: Do a complete research on most commonly used trading software. Compare, analyze, read the review and identify what they are best at. Opt for the trading software that is best suitable for your need.

2) Fees: Some trading software is available for free while some require minimum payment/subscription for usage. The concept “higher the cost, higher the performance” is not successful always.

3) Legal: Due to its popularity, there is a lot of scam in trading software. Ensure you choose trading software that is legal and used by some users in the market.

4) Deposit amount: To trade in the market, you need funds for exchange. The trading software allows the user to deposit amount to initiate the trade. Some software insists on a fixed amount of deposit. At times, these amounts are unaffordable and cannot be withdrawn. Ensure you choose software permitting affordable/flexible deposit amount.

5) Terms: Trading software comes with terms of usage i.e. months, quarterly, half-yearly and annually. Evaluate your usage and accept the term accordingly so that you save cost.

6) Transactions: Some trading software performs transactions on behalf of its user. This is one of the best features of a trading software. It is essential to act timely during the favorable market situation. Since users don’t oversee the trade projection 24*7, trading software participates and executes a trade on user’s behalf during the favorable period to enjoy the profit.

There are circumstances where the market projection of trading software went misleading impacting huge loss to the users. To avoid such scenario, it is better every user educate themselves in order to trade effectively and efficiently and not completely depend on an external tool.

WhatIs Direct And Indirect Exposure To Stocks?

At old age, one wonders what the best way to buy stocks is. There have been many changes in the tax laws which have increased the holding time period for the debt funds. This has been done for short-term capital gains and thus balanced funds are the best way to invest your money. The balanced funds invest around 65% into stocks and the gains from these funds aren’t taxed if you hold it for more than a year. Also, the balanced funds give debt exposure as well and thus give stability.

It is recommended that one opts for an indirect exposure to the stock market by way of mutual funds. This is because the mutual funds are well regulated and these are also managed professionally. This is a great way to invest in equity because one does not have to keep tracking the funds. Most of the mutual funds are growth funds and some of them also make dividend payouts.

One can thus expose his portfolio to equity indirectly through mutual funds. As per rule, it is said that one should exposure (100-his age)% into stocks. This means that if you are 25 years old then it is ideal to put 75% of your savings into equities. If you are 55 years old then you should consider putting only 45% of your savings into equities.

If you, however, are well read and have good knowledge about stock investments then you can make your own portfolio as well by choosing the stocks as per your research.

There are financial risks in retirement. Most of them stay well beyond 20 years after they retire. This means that you still need to pay for years after you retire. However, your regular income stops and you also have only a fixed amount of money to live after your retirement. There are no yearly increments or bonuses and also no pay raise. To maintain your present lifestyle there are many things that you need to consider. The most important of these is how to plan your finances after retirement so that you do not have to depend on anyone.

Whether you wish to invest in stocks directly by investing yourself in this trading software, or indirectly that is through mutual funds, always remember that stock market is risky. You should thus choose the percentage that you are ready to risk with care. Take care to invest only in stable companies so that you know that your money is safe.

 

 

What Are The Two Factors That Are Influencing The Price Of Bitcoin?

2017 was the year of high both for bitcoin and other Cryptocurrencies. It has surpassed the $5000 mark and is now poised to surpass $6000 mark. At the beginning of the year, it was up by 546%  and is now trading at  $5,592.56.

The group of other Cryptocurrencies like Ethereum and Litecoin has followed the Ethereum trajectory and has made huge profit ranging from 4,000% to 1,325% respectively. The factors that are working behind these raising prices are other than the inherent dynamics of Cryptocurrencies.

The two factors that are influencing the price of bitcoin at the moment are:

  1. The constitutional investors are showing interest

A report by the one of the biggest Bank from America says that there has been a growth in the number of institutional investors in cryptocurrency. Many of the companies from the financial service sectors have begun providing cryptocurrency as one of their custom product this will affect the liquidity and market capitalization value of those currencies, says the report.

 

Financial institutions from have gone a step ahead and have started designing their new products using Cryptocurrencies. As for example, the price of Ethereum can be tracked using exchange-traded notes from the NASDAQ exchange of Sweden. The financial regulatory board of Switzerland has approved the product one of the biggest banks in the country that enables its client to trade in Bitcoin. Banks from the US are also following the same suit.

 

All these moves can lead to another price rise for Bitcoin.

 

  1. Asia is showing interest

Some of the major countries in Asia have prevented the use of Bitcoin in their countries, but there has not affected the investor’s interest in these currencies. According to a report the investors from these countries are paying a premium to trade Bitcoin and other Cryptocurrencies. In fact, if reports are to be believed in one of the exchanges of these countries the value of bitcoin has surpassed $6000.

Japan has already recognized Bitcoin as a legal tender in the country could also lead to the increase in the price of Bitcoin. Meanwhile first global crypto fintech company from Japan has said they will do their level best for the healthy development of cryptocurrency in Japan and on a global scale.

Asian countries are also becoming the growing market of bitcoin in spite of having some regulatory issues. continue reading to know more.