Author: Jenny Scott

Choosing The Right Credit Card

Certainly, your credit matters but, unfortunately, that doesn’t happen with so many credit cards in your wallet! In fact, having many of them can negatively impact your credit position, as either, you would not be using them much or you may end up not paying the balances on time that can harm your financial reputation badly. Therefore, the key is to have the right one(s) to not only boost your credit score but also to enjoy some financial benefits, for which we have the carefully curated 5 significant suggestions!

  • Your expectations out of the card

Not every card is made similar! No, we aren’t talking about its physical characteristics, but, the significant functional characteristics, such as entry-level credit cards (secured, student, store credit cards), rewards credit cards, balance transfer credit cards and so on, which come with various advantages to suitably satisfying your financial necessities. For example, a secured card might help you build your credit from the scratch and whereas, the rewards credit cards help you enjoy some cashback rewards on specific purchases and therefore, only after accessing your credit position and relevant expectations you should go for the specific card type to enjoy the absolute benefits.

  • Understand the APR

The annual percentage rate or the APR is the percentage of the charge applicable to your balance amount carried beyond the acceptable grace period. Not all the APRs are calculated the same, that is the APR on purchases might differ with the APR on balance transfers and therefore, understand the subject thoroughly to avoid paying more for your credit card usage, unnecessarily.

  • Know your credit

If you are not a newbie then, certainly you would have a credit for yourself, which you ought to check to decide the suitable credit card for your suitable situation. That is, if your credit score is not as expected, find a suitable card that might rebuild or repair your credit favorably, such as the secured cards or if your credit score is highly pleasing, then plan the ways to convince your credit card issuer to offer you some perks such as the increased credit limit, which you can carry out only with the idea of your credit situation, undoubtedly!

  • The fees

There are several fees associated with the usage of credit cards, such as the annual fee, late fee and so on, which you have to understand to choose the right one that does not burn your pocket!

  • The credit limit

If you have certain credit-limit expectations to satisfy your monthly financial challenges then, choose such a credit card that satisfy your practical requirements, appreciably! But, if you are a newcomer, it is advisable to choose a low-limit credit card to make you a responsible user, indisputably!

Varied types of inflation that affect business

Inflation means a rise in prices because of the increase in the cash supply in the economy. This happens when there is abundant cash in the market and the value of the currency is depreciated. Depending on the rise in prices, there have been varied names given to inflation. However, you need to understand that the constant price rise will be of different magnitude. Listed below are few types if inflation faced by the business organization.

Creeping inflation– Creeping inflation is when the pace of price rise is very slow, like that of a snail. The rise in price below 3% is considered as creeping inflation. It is considered safe and it is necessary for the business and economy growth.

Trotting or walking inflation– This happens, whenever the rise in price is moderate and the rate of inflation is only a single digit. The rate of inflation will be always below 10%. It is actually a warning signal given to government to control it before it transforms into a running inflation. This does not create much impact and the business does not get affected.

Running inflation– When the rate of price rise is between 10 to 20% annually, it is known as running inflation. It affects mostly the middle class and the poor adversely. Small time and middle segment business get affected badly by this type of inflation. It requires strong fiscal and monetary measures to be adopted or else, hyperinflation will occur.

Hyperinflation– Hyperinflation is also known as galloping or runaway inflation. It happens when the rate of price rise is very fast and reaches double or sometimes triples digits. It ranges from 20 to 100% annually. In reality, it means the inflation reaches a point wherein the inflation rate turns into immeasurable and cannot be controlled at all. Every day the price rise will happen and it will, in turn, result in monetary system’s collapse due to steady and constant fall in money’s purchasing power. All the business organizations and the industries will be hit badly. And it will even end up in closing down of business because of the irrecoverable loss.

Semi-inflation– In this case, as the output increases, the rise in price will not happen. However, the increase in aggregate expenditure will result in facing supply shortage which cannot be substituted. It is also known as bottleneck inflation as there are bottlenecks in the supplies of few factors.



Different Types of Fund Management

With the number of financial products offered is rising in the markets just as adding more colors into an already crowded canvas, the opportunity for an investor to stay invested for a long period of time is considerably reducing as they want to experiment new investment products which are introduced in the markets every now and then. How does a fund manager understand and invest on the client’s behalf is an important aspect for the investments to perform well and have a good mix of both long term and short term funds, including equity and debt funds for sustenance.

Types of investment:

Products which investors will pin their earnings are broadly categorized under registered investment companies and private funds. Those companies which are registered under the Companies Act, have to comply with regulations and disclosure requirements as stipulated in the Act as they are offered to the public to invest their money. They have to adhere to compliance and due diligence reporting requirements stipulated.

  • Mutual funds- buying of shares of a company on a continuous basis as and when the unit price is low are the ideal form of investment for the working class. They are directly purchased from the fund house or the broker depending upon how the open-ended scheme’s performance. There are quite a number of variations in the funds allocated to mutual funds which could be like a money market fund, index funds, ETF, bond funds to name a few.
  • Close-ended funds– they offer a limited amount to be purchased from their offerings to the public in the initial offer, the shares are traded in the secondary market, and the investor has to depend on the broker to sell the shares and get the maximum profit.
  • Unit investment trust- these are offered to the public on a one time basis, and can be held till the date of termination of the UIT, as the trust will pay out the proceeds based on the market value as o the date of termination, they are more or less a static investment which is like one time investment and then waits once the UIT is dissolved to give a fixed good return.

Privately managed funds are offered only to a select group of investors who inject a lot of money on the fund and have a very few HNI in the list, they usually avoid getting registered with the Act due to high regulatory and compliance requirements. Most of the privately managed funds like hedge funds, private equity funds are organized and do not have any performance related issues.





A Logical Placement Of Stop Loss

Stop loss! This is something that every trader hates to discuss. But unfortunately, this is what differentiates a successful trader from an unsuccessful trader. If you do not place your stop loss or do not know where to place the stop loss then you could be in trouble. In fact, everything about being profitable in the trading business is about placing proper stop loss and also managing it.

Stop loss lets you manage your risks. It is a small expense towards your business. You need to understand this to be green when trading.

You need to have a stop loss exit on each trade that you take. This is the core of risk management. Thus you know before every trade how much risk you are willing to take on each trade.

You are a risk manager

You can never say with certainty if your trade will surely be a winning trade. Nobody, in fact, can tell you this. It could be possible that you may be making some losses in a row and then eventually have a profitable trade that will cover up for all the losses.

Had you been sitting on the losses for days together then it would not only take your account deeper into the negative but would also have left you with no capital to enter a profitable trade.

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Thus placing stop loss is a must.

All of this said which is the right way to place a stop loss?

Placing a logical stop loss

Most traders will place their stop loss close to the high or low of the swing trade or a few points away from the entry price.

There are some who would place the stop loss based on how much they can afford to lose. So once they have entered the trade the stop loss would be placed such that they would not lose more than $100 on the trade.

These calculations are used by most traders but unfortunately, this is not the best way to place stop losses.

ATR method to place a stop loss

Most of the professional traders would use ATR to calculate stop losses. ATR is the average true range and this is a measure of volatility. It is calculated over a14 day time period.

A logical stop loss would be to place it below the support or resistance level on a long or short trade respectively leaving a gap of 1 ATR below the support or above the resistance levels. This is done because the support or resistance level is the area where you would have entered the trade. Thus if the price moves through it then probably the zone was not that strong.

You still, however, need to give the price some room to move about and this is why the stop loss is kept1 ATR away from the level.

How good are your budgeting skills?

It is good to want to save money but does you know how to manage your funds? Are you one of the many individuals who is stumped by their expenses? Did you try making a budget, even a threadbare one ever? If you didn’t know by now, then you must wake up to the importance of having a budget to manage your funds and savings for the distant future.


Make a habit of categorizing your bills ( or just start earning money )and expenses. This will not only help in keeping track of where your money is going but also will abate any disputes in future. The most common heads can be like:

  • Rent
  • Utilities
  • Mortgage
  • EMIs
  • Internet service provider
  • Groceries etc.

Either keep the bills or make it a habit of writing how much you spend under each heading and add up at the end of the month to see how much each category costs.

There are several apps that can be connected to your bank account to set a limit on your spending on any specific category and to keep track of how the funds flow.

Plan your budget

For an effective budget, you must split it into the following heading.

  1. Recurring and constant costs: This will account for 50-60% of your income as it includes all the above-stated headings. These costs remain more or less constant throughout and are unavoidable.
  2. Investments: Prudence demands that you set aside at least 10% of your income for investment purpose. Let your money grow silently as you go about your daily life. Some simple investment solutions are the 401(k) which can be linked directly to your paycheck so that you don’t have to put in any extra effort to put aside money each month.
  3. Emergency funds: Nobody knows when an emergency can strike; you must be prepared. Make an attempt to store at least 10% each month under this head. When unexpected repairs and medical expenses come up you will have a chunk of money to cushion you. This is also another means of saving.
  4. Fun expenses: You can keep a reasonably big chunk of up to 30% for all your outings, parties and other entertainment needs. Being on a budget does not mean that you must miss all the fun. It just means that you have fun by being more responsible.

Budgeting is really simple when you have it written and well planned. Just by being a little more aware you can secure your future and hope to own your own dream home or travel the world or even retire early.

Here Is What You Need To Know About Earnings Multiplier In Business Valuation

A valuator may combine the use of more than one method of business valuation while analyzing the current worth of a company’s asset in the owner’s interest. One of the most commonly employed methods in this is the earnings multiplier. This method measures the company’s current share or stock’s market price in comparison to its earning on each share or earning per share (EPS). It is represented in the form of price per share/earnings per share and is also called as the price-to-earnings (P/E) ratio. 

Why is it so useful in valuation?

The earnings multiplier helps to determine the change in the value of the prices of stocks, assets or shares of a company in the current market and know if there is a rise or fall in the value. The current market price is important in assuming how well the stocks may perform in future, that is, the future value and income of the company.

An acquiring company or a prospective buyer can rely on this information to get an idea of how well he would be benefitted on getting the ownership of this business. If the market price of the company’s assets is far too high or has an expensive historical background, it is an indication to rethink the suggestion of taking over. Another advantage is that when companies of similar nature are compared to their stock prices, the buyer can know the trend and how the expensive stock justified prices are in the current scenario. He will be able to estimate how proportionally he can earn with each share in the company by compensating for the expense he incurs on buying the shares.

For example, if the company used to earn 10$ when its price per share was 5$ and is currently providing an income of 12$ with a stock price of 8$, its P/E ratio indicates a negative curve and is currently expensive to buy. The owner, on the other hand, gets to know that there is still room for improving his income with respect to his shares and try for a better valuation.

It has two other purposes in valuation, namely:

  1. It can be used as a simple tool for valuation of comparing the relative value of shares or stocks of companies of similar nature.
  2. It can be used as a tool for determining the current stock prices of a company against their price history relative to their earnings.


Tradable Currencies

4 Most Tradable Currencies

If you have been a trader for a while, you will be aware of how exhaustive the Forex market is. It is popular because it is large and has a high liquidity at the same time. If you are getting started in this market, it is important for you to know which are the most commonly traded currencies and why. Here are 4 most tradable currencies and the characteristic features that make them so.

U.S. Dollar

The U.S. Dollar is a symbol of power. It is also the most tradable currency in the world. It has a pair with all the major currencies and is almost always a mediator in all sorts of currency transactions. The primary reason for this is the fact that the USD is an unofficial global reserve currency and this is reinstated by almost all the investment authorities in the world.

Due to the fact that the USD is globally accepted, there are some countries that have adopted it as their official currency and this process is popularly known as Dollarization. It is also significant in the Forex market where it often becomes a benchmark for other countries to pinpoint a relative value. Yet another factor is that USD is the currency for commodities like precious metals and crude oil etc.


The most interesting thing is that the Euro is still new to the market but it has quickly reached the second most tradable position of currency and is right after the USD. It is also the second largest reserve currency in the world. Since the Euro is used all across the globe, it is also quite popular in the Forex market. It is known to make a currency pair very liquid when it trades with one.

The Yen

Japan’s major strength comes from its export economy and thus the Japanese Yen happens to be the most tradable currency in Asia. The Yen is popular for carrying trade in the Forex market. Its zero interest rate policy for more than two decades has made it even more popular.

The Pound

The Great British Pound comes fourth in line in the list of the most tradable currencies. It is also known as the pound sterling and it is also a huge reserve currency. Studies show that Forex traders generally peg its value on the basis of how stable the economy and the government is. It also adds the component of liquidity to the Forex market.