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How to invest my first £100 in the stock market – A step by step guide

Indeed, trading passing through its peak of popularity and together with its advantages, progress in technology allowing almost anyone who has an internet connection to engage. Let us see in detail how to invest your 1st £100 in the Stock and of course consider all risks involved.

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Investing or trading Stocks can be a great idea for both your growth of wealth and as a long-term opportunity.

Indeed, trading passing through its peak of popularity and together with its advantages, progress in technology allowing almost anyone who has an internet connection to engage. Let us see in detail how to invest your 1st £100 in the Stock and of course consider all risks involved.

Trading Stocks

When you will start research you’ll probably find thousands in not million proposals along with a choice between instruments to trade or Stocks to invest. And here is a tricky task to find a true investment option that will bring you a good outcome and let you grow as well.

After all, there are thousands of companies around the world that are listed in Stock Markets and available for Public trading, including popular Apple, Tesla, Google, Starbucks and many more. Making story short, listed company placing a portion, a defined part of its shares for public trading, so the trader can own a piece of the company and accumulate wealth along the time, as long as the company’s value grows.

Also, be sure to understand trading Stock conditions, as most often you can buy Share expecting the price to rise so you will benefit from it, but otherwise, you can not sell Share. For this matter, mainly done as a protective measure since Short Investor also fulfills required obligations and thus bound to settlement while selling. However, there is a way to sell Stocks through trading brokers as often they offer retail traders to borrow shares from the broker and sell it, eventually just making a profit over the movement.

Particularly, you will find many more details on trading Stocks, despite a great range of investment proposals and a great decision to find which company is good to invest, and which one is not. So now let us see closer step by step on how to invest in the Stock Market.

Step 1 – Decide the way of trading Stocks

There are quite many options on how to trade Stocks, while you can trader yourself or give an option for someone to manage investment process. Also, this is defining what type of the investor are you, either the one who’s actively managing own portfolio so then you should go to the choice of the online broker as first.

Or in case you want to invest money and forget about the rest hustle simply make money to work for you, it makes you to consider either Robo-advisors or select a broker that offers managed investment account.

Besides, there is the option to invest in Stocks and actually own them or you can trade Stocks based on the CFD model, or through a relatively simplified version of trading, where you never own an asset but only speculate on a price difference through the denominated investment size.

Step 2 – Open Investing Stock Account

Obviously you should select a financial institution or a broker you will be trading or investing through, which gives access to World Exchanges and Listed Stocks.

Moreover, you should find a good trading broker, as first, which you will use as a trading venue since this choice is going to define almost all your trading career. Stay caution towards scammers and alluring trading proposals and always select a respected, fully legit and regulated broker from a reputable jurisdiction. Always choose a ECN Broker when opening your account.

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Eventually, there are many more proposals also for CFD Stocks trading, as this trading opportunity is much bigger and accessible from almost any part of the world, hence available to a larger audience and allows very small first deposits.

Step 3 – Set your Budget

In fact the majority of brokers or financial institutions require a specified amount as a first deposit. Recently many brokers lower conditions and its commissions due to competition, so there are investing options available to start with as low as 100£. So together with its minimum requirements, you should define how much money to invest in Stocks.

Of course, you should also learn about fees and commission charges, and set your budget according to these margins as well. Trading fees for Stocks often charge a commission per trade that varies from 2£ and up to 10£ depending on the broker.

Or in case you decide to trade CFDs, Your trading broker will define its trading conditions, which is your responsibility to learn. Most often, trading Stocks though CFDs will let you decide how much you want to invest, typically 100£ will be a very minimum available for the majority of Stocks, actually for thousands of Stock Shares you can choose from. Since the broker defines its conditions, at the point of execution or trading order you will be charged either commission per side or a spread, which is a difference between the sell and buy price.

Step 4 – Start your Investment in Stocks

On this step you should already apply defined strategy, your approaches and though the portfolio or choice of the Stocks to trade start the process. However, before you rush to do so make sure to place your strategy at the test with Demo Trading account, and manage risks smartly along all your trading or investment times.

Besides, getting a good education and knowledge about the investment or trading activity itself. It is always good to understand a particular Stock trading profile but also look to the bigger picture, capture global situations and various conditions for your smarter decisions.

Trading Risks

Nevertheless, with its alluring abilities make sure to get your trading or Investment in Stocks “correctly”, simply by placing higher cautions towards the activity itself and your choice of a reliable broker!

Invest only with well-regulated brokers, the world of scammers might be as large as a real companies proposal, so always verify all legal information before you start. 

Ultimately, together with possibilities, recent conditions are the one to be counted too, as such now you should stay extra alert as recent high volatile conditions making the job harder and certainly define what companies survive post COVID-19 or which are not.

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Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

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Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

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Financial News

Africa’s first Fairtrade certified gold co-operative offers hope to gold miners living in poverty

Syanyonja Artisan Miners’ Alliance (SAMA) has become the first artisanal small scale mining co-operative in Africa to become Fairtrade certified, bringing much needed hope to impoverished communities who risk their lives to mine the rich gold seam that runs around Lake Victoria.

SAMA is one of nine previously informal groups from Uganda, Kenya and Tanzania which has benefitted from a pilot project launched by Fairtrade in 2013. This innovative program aims to extend the benefits of Fairtrade gold to artisanal miners across East Africa.

In that short time, SAMA has undergone training in business and entrepreneurship, as well as safe use of mercury, internal control systems, labour rights and better working conditions, health and safety and more. Previously, daily contact with toxic chemicals used to process gold meant members risked disease, premature births and even death.  Fairtrade gold was first launched in 2011, and SAMA now joins Fairtrade certified gold mines MACDESA, AURELSA and SOTRAMI in Peru.

The co-operative produces just 5 kg gold per year, but nevertheless has the potential to significantly benefit many people in the local community through better conditions through certification. It is expected that Fairtrade and organizations like Cred Jewellery will support the miners, ensuring their gold can be refined and made available to jewellers in the UK and other markets.

Gonzaga Mungai, Gold Manager at Fairtrade Africa said: “This is a truly momentous and historical achievement and the realisation of a dream that is many years in the making. Gold production is an important source of income for people in rural economies. Congratulations to SAMA, it sets a precedent which shows that if groups like this can achieve certification, then it can work for others right across the African continent.”

The Fairtrade Gold Standard encourages better practice and changes to come in line with international regulation around the production and trade of so-called ‘conflict minerals’. Under the Standard, miners are required to:

  • Uphold a human rights policy preventing war crimes, bribery, money laundering and child labour
  • Clearly represent where the minerals were mined
  • Minimise the risks of conflict minerals through robust risk assessments and collaboration across supply chains
  • Report to buyers and trading partners regarding the risks of conflict minerals

Now in its second phase, the programme will focus on supporting other mining groups in the region to access affordable loans and explore a phased approach to accessing the Fairtrade market, allowing more mining co-operatives across Africa to participate in the programme.

Gonzaga added: “Sourcing African metals from smallscale miners in the Great Lakes Region is the responsible thing to do. For a long time companies have avoided buying gold from this region, with devastating consequences for impoverished communities who were already struggling. It has driven trade deeper underground, as unscrupulous buyers pay lower prices and launder illegal gold into legitimate supply chains. That’s why we have chosen to work with these groups to help them earn more from their gold within a robust compliance system that offers social, environmental, and economic protections.”

The Fairtrade gold programme offers a small but scalable solution to sustainable sourcing of gold from the region in line with Section 1502 of the Dodd-Frank Act in the US, OECD Due Diligence Guidance and recent EU Supply-Chain Due Diligence proposals which could come into effect in 2016. This means that up to 880,000 EU firms that use tin, tungsten, tantalum and gold in manufacturing consumer products could be obliged to provide information on steps they have taken to identify and address risks in their supply chains for so-called ‘conflict minerals’.

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