Imagine a world without law and order. No rules, no guidelines, no restrictions, no control, everyone having the liberty to do as they please. What comes to mind as the inevitable outcome? Chaos. Utter commotion. The same would be the fate of the forex market, with its $5 trillion worth, if it were left without regulation.
What is Forex Regulation?
Forex regulation is a system of checks that have been put in place to ensure that the forex market is a safe place to be. These checks include the setting up of legal and financial standards. For compliance with these checks to be ascertained or verified, watchdogs or overseers have been set up to monitor the behavior of industry players. These bodies are called regulators.
The primary purpose of regulation is to protect investors from fraud. Forex broker reviews can help answer questions such as is thinkmarket legit? And can help to guide investors to forex brokers that are regulated.
Who Regulates the Forex Market?
There is no central regulatory body in charge of global forex regulations. Regulatory bodies are set up at local levels across the world. Each of these local regulatory bodies functions under the ambit of the laws governing their respective jurisdictions. However, all regulatory bodies in the EU can operate in all the countries on the continent. One of the most widely used regulatory bodies in Europe is the CySEC (Cyprus Securities and Exchange Commission) which is based in Cyprus. Other major regulatory bodies include the Australian Securities and Exchange Commission (ASIC), Securities and Exchange Board of India (SEBI), US Securities and Exchange Commission, Financial Services Authority (FSA) UK and the Autorité des marchés financiers (AMF) France.
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How the Forex Market is Regulated
Forex market regulators set guidelines for forex brokers to abide by. These guidelines protect investors and maintain order in the trading arena.
The regulator is saddled with the responsibility of conducting periodic audits, reviews, and inspection of the financial, legal, and customer-related activities of the forex market players. These guidelines ensure that brokers abide by a set of fair and ethical rules. When these guidelines are not met, a regulator has the power to enforce punishments on the erring broker.
Forex regulation is done in compliance with the prevailing laws of each jurisdiction. These laws spell out a host of requirements for forex brokerage and some elements of these regulations vary from one jurisdiction to another. However, some fundamental standards cut across every area or region of forex regulation. These are;
Registration and Licensing
Regulators are responsible for the registration and licensing of forex brokers. Only pepperstone regulated brokers are safe for investors.
Audits and Reviews
Periodically, regulators look into the books and general affairs of brokers to ensure that they comply with all financial and ethical standards. For example, there is lots of information that brokers are mandated to pass across to investors. Brokers who fail to do so are punished by regulatory bodies.
The role of regulators is crucial to the safety of your funds. Questions about regulation should be a priority for every investor. Broker reviews should be properly consumed by traders before working with any broker. If a broker isn't regulated, steer on the side of caution and avoid them.
The FTSE 100 rose on Wednesday, rallying after a mass sell-off led to a 2% fall in the previous session.
The index rose 0.6%, lifted by oil giants BP Plc’s and Royal Dutch Shell’s respective gains of 2.0% and 1.7%. The surge followed a report from Azerbaijan’s energy ministry said BP’s oil output reached 5.9 million tonnes in the first quarter.
Some stocks continued to slip, however. Just Eat Takeaway.com fell 4.2%, slumping to the bottom of the index, following news that rival Uber Eats plans to expand into Germany.
Meanwhile, data published on Wednesday indicated that inflation in the UK rose to 0.7% in March, in line with expectations.
The FTSE 100’s positive performance follows a sell-off on Tuesday that led to major indices in Europe and Asia closing as much as 2% in the red. US markets were also negatively affected, though not to such an extent; S&P 500 futures and Dow Jones futures were flat, while Nasdaq futures fell 0.1%.
The sell-off appeared to be triggered by anxiety over rising COVID-19 cases in India and elsewhere, and their implications for the economy. IAG dived by 8.1% on concerns over travel plans being scrapped, while hotel operators Whitbread and Intercontinental lost 4.8% and 4% respectively.
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Overall, around £37 billion was wiped off the FTSE 100 on Tuesday.
While the London-based index rallied on Wednesday, Germany’s DAX and France’s CAC 40 respectively gained 0.2% and 0.4% by mid-morning.
Bitcoin and Ethereum fell during Tuesday trading, extending a price decline that began last week, while joke cryptocurrency Dogecoin rallied further after a record surge.
Bitcoin was down 4.6% by 9.20 AM in London, while Ethereum was down around 5.3%. The world’s two most highly valued cryptocurrencies were trading at $54,763.19 and $2,134.70 respectively.
Meanwhile, Dogecoin was up 18% at $0.4075, a jump that coincided with social media attention on 20 April. Supporters of the cryptocurrency are celebrating the date – which is also International Weed Day – as “DogeDay” and are urging fans to buy up the token in a bid to raise its price to $1.
The price of Dogecoin has risen by more than 400% in the past week and by more than 5,000% since the beginning of the year, a rally that has given it the fifth-highest market cap among cryptocurrencies. The total value of its tokens in circulation is now over $52 billion.
Dogecoin has also benefited greatly from the light-hearted support of social media celebrities such as Elon Musk and Snoop Dogg, whose joking references to the token on Twitter preceded an 800% price jump in January.
"Dogecoin has become the new GameStop, with frenzied trading potentially going to deliver a bloody nose to novice investors,” said Nigel Green, CEO of deVere Group.
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Green also suggested that the Dogecoin push is being pitched as a battle of a community-backed cryptocurrency versus existing crypto giants like Bitcoin, echoing the GameStop trading frenzy that took on a narrative of underdog retail investors versus established Wall Street insiders.
Coinbase, the US’s largest cryptocurrency exchange, reached a valuation of over $100 billion on its first day of public trading on Wednesday.
The company was valued at $99.6 billion when trading opened, with stocks priced at $381 apiece. This price would later fall to $328.28, but not before reaching the $100 billion milestone.
Coinbase’s stock market debut, and the implications it creates for cryptocurrencies becoming part of mainstream finance, spurred enthusiasm among crypto investors. Bitcoin reached an all-time high of $63,000 on Tuesday ahead of the platform’s listing.
“Today is a big moment for @coinbase as we become a public company,” tweeted Coinbase co-founder and CEO Brian Armstrong on Wednesday. “But it’s also a big one for crypto.”
The value of Bitcoin and other cryptocurrencies has soared over the past year as major firms including Tesla, Mastercard and PayPal have revealed plans to incorporate digital tokens into their business models. Bitcoin itself rose 300% last year and has continued to climb since January.
Smaller currencies have also benefited from the surge. Joke token Dogecoin has risen over 70% in the past year, reaching 13 cents per coin.
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Coinbase was founded in 2012 and had more than 56 million users at the end of March 2021. It also held around $223 billion in users’ assets.
The firm’s market cap has increased more than tenfold since 2018, when investors in a private funding round valued it at $8 billion.
The value of Bitcoin hit a record $62,741 in early Tuesday trading, a surge of more than 4% in the past 24 hours.
This latest extension of the cryptocurrency’s 2021 rally comes one day ahead of the initial public offering of Coinbase, which is set to list on the Nasdaq index on 14 April.
Coinbase is the largest dedicated cryptocurrency trading platform in the US, with around 50 cryptocurrencies listed for exchange. It recently revealed that the number of active users on its platform reached 6.1 million, up from 2.8 million in the fourth quarter of 2020.
On Wednesday, Coinbase will become the first major crypto company to go public, with a valuation that may exceed $90 billion. It will not issue any new stares as part of its IPO, instead selling 114.9 million existing shares via a direct listing.
Cryptocurrency investors are hailing the firm’s IPO as a major step in the continued movement of virtual coins towards mainstream finance despite continued scepticism from regulators and major Wall Street players.
Crypto investors appear to have grown more bullish as the IPO approaches. Bitcoin remains the most highly valued cryptocurrency in the world, and the rest of the broader crypto market is often buoyed by its successes. Its second-place rival, Ethereum, also reached a record high of $2,205 in Tuesday trading.
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After a meteoric rise during 2020 and early 2021, buoyed by the attention of major players such as PayPal and Tesla, Bitcoin fell back as low as $43,000 in late February amid uncertainty over stimulus expectations and how they might affect US bond yields.
Amsterdam-based tech investor Prosus NV netted $14.6 billion overnight from the sale of a 2% stake in Tencent, the company announced on Thursday.
A filing from Tencent at the Hong Kong Stock Exchange revealed that Prosus had sold 191.89 million shares at HK$595.00 per share.
“Our belief in Tencent and its management team is steadfast, but we also need to fund continued growth in our core business lines and emerging sectors,” Prosus Chairman Koos Bekker said in a statement on Thursday, hours after the completion of the deal.
Prosus is majority owned by Naspers of South Africa. The Wednesday night sale lowered its stake in Tencent from 30.9% to 28.9% -- a level which the company has committed to not reducing any further for the next three years.
“The proceeds of the sale will increase our financial flexibility, enabling us to invest in the significant growth potential we see across the group, as well as in our own stock,” Prosus CEO Bob van Dijk said in a statement.
Tencent Chairman Pony Ma acknowledged the sale and reaffirmed that he viewed Prosus as having been a “committed strategic partner over a great many years”. He also stated that “Tencent respects and understands” the firm’s decision to sell.
Tencent Holdings, headquartered in Shenzhen, is one of the largest companies in China. The conglomerate focuses primarily on internet-related services and products, including video games and social media.
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Though not a household name outside of China, the company made international headlines as it butted heads with the Trump administration over an executive order banning US firms from doing business with its social media subsidiary, WeChat.
Compared to other crypto-based projects, the Ethereum blockchain currently provides a platform for the world’s second-largest digital currency called Ether (ETH). This digital currency is second only to Bitcoin and can serve as a means of payment between two parties without interference from a third party. However, many still have doubts about the Ethereum project and its feasibility in the long term. Others wonder: should I buy Ethereum?
If you are new to the Ethereum project, we urge you to read this article to understand better what the Ethereum blockchain offers. We will begin the article by explaining how a blockchain functions, what the Ethereum project is, and the Ethereum project’s applications.
What is Blockchain?
Blockchains serve as a decentralised register that captures all crypto transactions across a peer-to-peer network. Blockchain technology permits transactions to occur between two parties without the interference of a third party. It is essential to note that cryptocurrencies cannot function without blockchain technology.
For now, the primary application of this technology is for the transfer of cryptocurrencies. However, there are many potential applications for this technology in the future, like voting, settling trades, and many others.
Bitcoin uses its blockchain as a ledger for transactions. Unlike Bitcoin, Ethereum uses blockchain technology in a variety of unique ways. This brings us to our next question: what is the Ethereum project?
What is the Ethereum Project?
Before we consider what the Ethereum project is about, let's take a brief look at the history of Ethereum. Ethereum was officially founded in 2015 by Vitalik Buterin, Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, and many others. Its founders’ goal was to create a decentralised platform that functions without third parties controlling other parties’ activities.
Blockchains serve as a decentralised register that captures all crypto transactions across a peer-to-peer network.
According to Investopedia, “Ethereum is an open-source, blockchain-based, decentralised software platform used for its cryptocurrency, Ether.” Like Bitcoin, Ethereum has a digital currency that can serve as a means of exchange between two parties. However, the Ethereum project provides further features to its users.
Users can use the Ethereum platform to create smart contracts between parties. Similarly, this platform supports the creation of Decentralised Applications (Dapps) using the platform’s resources. Dapps design using the Ethereum platform is possible because the Ethereum platform also functions as a programming language that runs on blockchain.
To carry out any task on the Ethereum network, users must transact in Ether (ETH). This is because Ether is the digital currency of Ethereum. All transactions on the Ethereum platform are fueled by Ether, so the transaction fees on this platform are referred to as gas fees. The lower the transaction, the lower the gas fee. Similarly, the higher the transaction, the higher the gas fees.
Etheruem Blockchain Applications
As stated earlier, the Ethereum platform can create smart contracts and Dapps. You may then ask what smart contracts and Decentralized Applications (Dapps) are.
Smart Contracts
A smart contract is a type of contract executed by itself after all required conditions have been met. Usually, a smart contract’s terms and conditions are agreed upon between anonymous parties without the need for a centralised third party such as a bank controlling the transaction.
Similarly, all terms and conditions of a smart contract are written into lines of code and stored on the decentralised Ethereum network. The written code monitors and controls the execution of the smart contract. Similarly, the code monitors and tracks all transactions attached to the smart contract to ensure that all contract conditions are met.
Usually, a smart contract’s terms and conditions are agreed upon between anonymous parties without the need for a centralised third party such as a bank controlling the transaction.
The programming language used for writing the lines of code vary on the Ethereum network. The programming languages for writing smart contracts include Solidity, Vyper, and Bamboo.
When compared to traditional contracts, smart contracts are faster, cheaper, and secure. They also prevent undue influence from third parties. The applications of smart contracts are numerous and can be incorporated to provide decentralised services in financial services, healthcare, insurance, property ownership, and many other sectors.
Decentralised Applications (Dapps)
Another application of the Ethereum blockchain technology is the creation of Dapps.
As the name suggests, decentralised applications do not run on a central server. Instead, these applications run on the Ethereum blockchain which decentralises its servers, preventing the Dapps from having a central source. As a result, decentralised applications are not under the control of a single entity or organisation.
Dapps are software created using the Ethereum programming language known as solidity. This programming language is very similar to Java, C++, JavaScript, and Python.
The application for Dapps is endless as they can be used for creating decentralized solutions in fields like eCommerce, insurance, and online banking.
Conclusion
The Ethereum platform offers users the first decentralised blockchain platform in the world. The Ethereum network is very safe and secure and provides users with the opportunity to enjoy transactions without third parties’ interference.
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When compared to other cryptocurrencies, the Ethereum platform offers a lot to its users. Its blockchain technology is revolutionary. Similarly, the project has a solid team of developers and programmers behind it.
Presently the platform provides a digital currency for making decentralised transactions. Similarly, this platform provides users with the opportunity to enjoy smart contracts and decentralised applications.
In terms of potential the Ethereum platform is likely to see future growth. There are many applications for smart contracts in financial services, healthcare, insurance, property ownership, and many other sectors. Similarly, there are many uses for decentralised applications in fields like eCommerce, insurance, and online banking.
Every successful person in this world is industrious, and they also possess a calm and rational mindset. Investors who have gained success in the Forex platform may hold a different mindset, but one thing can be found which is common to all, and that is that they are not whimsical. A person who is indecisive and cannot think clearly about what they should do can be compared to a rolling stone that cannot gather any moss.
To be a trader, a beginner must build a trading mindset that will allow them to stand against all odds. If you do not own a strong mind, trading is not for you as the market is highly volatile and everyone has to taste some loss. Today, for beginners, we will describe the ways to build a trading mindset that will be fruitful to win in most trading battles.
1. Anger
Professionals never get angry for silly reasons, and they are skilled enough to manage their anger. This childish attitude may be found among the beginners who cannot take their first loss on the platform easily. They plan to make double the profit next time with a higher investment, which turns into an irony later. One thing they should keep in mind that no one may give them the assurance of making a profit in Forex or other markets. Success depends totally on the research methodologies of each investor.
Without conducting any deep research, an angry trader is bound for the rainy days in the future. Always try to trade FX options online with a stable mindset. Control your anger as it will make things extremely complex and make you an ultimate loser.
2. Greed
Executing a trade is not like gambling, where one can wait for the return of their luck. A lot of study and devotion is needed here to gain success. The idea of greed must be kept away from the mind of an investor. Some investors think if they invest double, they can make double the profit too. In reality, the opposite is often true, and the traders have less chance to make a double profit with a double investment. Greed is forbidden in every religion, and a newbie must not invest because of greed. They must calculate the risk to reward ratio and, based on that, they should measure the investment they are going to make. By being a greedy trader, you may lose all, and for this reason you should not forget the old saying: “Grasp all, lose all.”
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3. Overtrading
There is a class of traders who are absorbed in overtrading, which makes their capital drain away. You must not go into another trade until you receive the return from another. This method can be good for the scalpers, but beginners must avoid this tendency at all costs. To solve the issue, you can write down about the trades you join each day. Then, you may set a goal that says that you will not trade more than three times a day.
4. Physical exercise
Professionals often take up a gym membership and do daily physical exercise, which helps them to build a productive mindset for trading. They start their day in the gym or on a morning walk, which allows them to be active all day long. Meditation and yoga also work as a great way to keep your mind under control.
To conclude, it can be said that a trader must build a trading mindset to get success in Forex or other markets. The mind is regarded as the power of all success, and if our mindset is not positive, we will end up trading and dealing with huge losses. Professionals focus their attention on keeping their psychological balance to always to cope with all types of trading situations.
Shares in food delivery startup Deliveroo rallied on Wednesday as its first day of unconditional trading on the London Stock Exchange began.
Wednesday marked the first time that retail investors could trade shares in Deliveroo, including the 70,000 who invested in the company’s IPO. It followed a week of “conditional” trading that began last week, during which only institutional investors could trade stakes in Deliveroo.
The firm’s shares rose 3.2% in early trading, reaching as high as 289.05 pence per share. However, this is still roughly 25% below the shares’ asking price of 390p during its £7.6 billion IPO, which saw a precipitous first-day tumble after lifting on the LSE – becoming one of the weakest IPOs in FTSE history.
UK Chancellor Rishi Sunak, who prior to the IPO had lauded Deliveroo as a “true British tech success story”, said he was not embarrassed by the plunge in share value. “Share prices go up, share prices go down,” he said in an interview with ITV.
However, several major UK investment fund managers have said they will not buy shares in Deliveroo, citing concerns over lack of investor power and the working conditions of its delivery riders. Firms backing away from the company include Aberdeen Standard, Aviva Investors, BMO Global, CCLA, Legal and General Investment Management and M&G.
The news comes as hundreds of Deliveroo drivers planned to strike on Wednesday amid calls for higher pay. Only 400 of the firm’s 50,000 riders are estimated to be taking part in strike action, as Deliveroo’s survey data showed that 90% of its riders were happy with the firm.
Video games have been popular for years, which means they will continue to grow in the future. The industry's ability to adapt to the trends is what guarantees this. As a result of this ability, gamers all over the world have purchased all kinds of games and upgrades to their gaming devices.
In other words, the gaming industry is a sucker for new trends. It makes sure to incorporate them and satisfy its customers. Bitcoin is one of the current trends nowadays and it has already found a place in the industry. It’s a viable payment method for some gaming sites and it has already inspired game developers with its blockchain technology.
It is because of that that we have a few Bitcoin titles that anyone can play. They come in various shapes and sizes which means that they are in different genres. Moreover, it gives players a fresh taste of familiar types of games and brings then a new kind of game – the crypto game on the gaming market. So, if you’re looking to give these games a try, here are some suggestions:
Bitcoin Hero
This is a Bitcoin trading app that newbie traders will find quite useful. It has a virtual currency that you can use to start trading with. Also, the other players will serve as your competition. Additionally, you’ll have tools to research the market with.
You’ll have plenty of practice with Bitcoin Hero and the best part is that all the assets have real-time prices. Also, you can make as many mistakes as you’d like because you won’t feel the consequences. Naturally, there’s another path you can take if you think you can’t handle the risk of trading Bitcoin. You won’t have to make any important decisions and you’ll just reap the profits.
Video games have been popular for years, which means they will continue to grow in the future. The industry's ability to adapt to the trends is what guarantees this.
The trading platforms represent this option. These platforms make use of advanced algorithms to make the important decisions for you. In other words, they do the heavy lifting and leave none of the hard work for you. Among the many platforms, you’ll come across the Bitcoin Sites. To use them you’ll need to make an account and deposit the minimum amount. Then you’ll need to go over the tutorials and then a demo lesson. Once you’re familiar with the settings then you can try the platform out with a live session. Afterward, you can adapt the settings as much as you like.
Splinterlands
Unlike the previous entry, this isn’t an educational title. Splinterlands is a Bitcoin trading card game that lets you build your deck while defeating various opponents. You have cards from all kinds of factions and earn them as you beat your opponents.
Naturally, you can use Bitcoin to buy new cards and other collectibles to strengthen your deck and improve your chances in the game. In other words, Splinterlands isn’t just a game you can play in your free time, it’s a great way to challenge your decision-making skills.
Bitcoin Blast
Bitcoin Blast is a title that features the ever-popular Bitcoin symbol. It comes in several colors and your job is to match as many of them as you can. You’ll get points for your efforts and the more effort you put in the more points you’ll get.
Also, the prizes are another reasons to play this game. That’s because they’re made up of actual Bitcoin. So, you won’t be just enjoying Bitcoin Blast but you could play it so you could earn some. Similar to the previous entry on this list, Bitcoin Blast is a challenge that can help you win interesting prizes.
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Merge Cats
Merge Cats is a simple title and a simple goal expressed in the title. In other words, you get plenty of cats and you’ll need to match them to get ahead in the game. The more effort you put in the more rewards you’ll get. The game comes with its daily challenges that you can take part in. If you, then you’ll need to complete them to reap the rewards which are in Bitcoin.
Conclusion
The revenue of the industry shows you just much the industry has grown throughout the years. Thanks to the adaptability to trends gaming is going to grow in revenue and Bitcoin will have an important role in the industry in the years to come.
Financial markets have been the focus of many films, such as The Wolf of Wall Street and The Big Short. But with characters often getting rich by using risky techniques, or even illegal methods, they may not seem the most useful way to learn about investing.
What we see on screen can seem far-removed from reality, but that doesn’t mean we can’t learn anything from certain scenes or storylines. Their main aim may be to entertain us, but if you look past the drama and the artistic license there are some useful financial lessons we can learn from film and TV.
With characters making basic investment errors and other characters taking risky strategies, popular films and television shows can highlight some points that anyone looking to invest should consider. Rhiannon Philps, financial writer at NerdWallet, looks at some prominent examples below.
Don’t put all your eggs in one basket
Or, in investment terms, don’t invest all your money in one stock as this increases the risk of losing it all.
In Series 3 of Downton Abbey, Lord Grantham discovered this for himself. He was so convinced that a Canadian railroad company would flourish and return a huge profit, that he invested the lion’s share of the estate’s money into it. However, rather than making him money as Lord Grantham hoped, the company went bankrupt and his investment was lost. This put his whole estate at risk, and all because he staked his fortune on the success of one company.
Even investments that seem reliable and guaranteed to rise in value can underperform, so investing in one company or industry will always carry significant risk. However, if you diversify and invest in a range of asset classes such as bonds, shares and property, and spread your investments between different companies, industries and countries, you can reduce the risk of your overall investment portfolio falling in value.
Even investments that seem reliable and guaranteed to rise in value can underperform, so investing in one company or industry will always carry significant risk.
Even if one of your investments loses value, the performance of your other investments may help to balance out any losses and could minimise the impact of any major financial shocks on your finances. If you are uncertain about your investment choices and options, it may be worth seeking expert help from a financial adviser.
Investing in collectibles isn’t all about the money
Many people collect items like art, cars, coins, stamps, toys and other memorabilia, partly for enjoyment and partly as an investment.
The rarest collectibles can sell for eye-watering amounts at auction, such as the bottle of The Macallan 1926 Scotch whisky which sold for a record £1.5 million in 2019, so it can be tempting to see collectibles as an attractive investment option.
However, collectibles aren’t just about the money, as a scene in sci-fi comedy series Rick and Morty explained.
Jerry has a collection of special, limited edition R2-D2 coins, which he thinks may be valuable. He questions how much they might be worth, but he is reminded that their sentimental value and the enjoyment they bring him is more important than their financial value.
This can be a useful way to think of collectibles. While the rarest and most sought-after items can make a significant profit at auction, the majority will only fetch a modest sum and may not even increase in value at all.
Collectibles are a precarious investment, so trying to estimate what items will grow in value and be a good investment is difficult, even for experts in the respective fields. It’s not as simple as assessing their intrinsic worth, as the value of collectibles is very subjective and can depend on age, condition, rarity, and the demand at that time for that particular item.
While the rarest and most sought-after items can make a significant profit at auction, the majority will only fetch a modest sum and may not even increase in value at all.
People with knowledge of a specific sector, such as coins, would be better placed to assess how much a collectible item is worth, but it would still be risky to rely on making money from your investment as a profit is never guaranteed. Investing in collectibles purely for financial gain could end up in disappointment, which is why many collectors enjoy it as a hobby and not just as a way to make money.
Timing the market can be rewarding but risky
If everything plays out as you predict and you buy and sell at the optimum moment, then timing the market can be a very rewarding investment strategy. However, the unpredictability of the stock market makes this approach difficult and risky, especially for amateur investors who may not have the time or expertise required to get a good return.
The American comedy series Silicon Valley showed a character successfully managing to make money by investing in the right stock at the right time. Peter Gregory invested in Indonesian sesame seed futures after predicting that they would rise in value when cicadas infested the harvests of the other suppliers. This investment was a risk, but it paid off as things turned out as expected.
However, this high-risk approach could easily have gone wrong. While timing the market can seem an exciting way to make money, in reality, it is very difficult to predict the performance of stocks and time your investments successfully. If you buy or sell at the wrong time, you could miss out on growth and lose money compared to people who don’t try to time the market and instead stay invested for the long-term.
Particularly for those who aren’t investment experts, keeping your money in long-term investments and pensions while stocks fluctuate in value can be less risky than trying to beat the market.
Fully research your investment
Whatever you’re looking to invest in, whether it’s a stock or bond, a collectible item, or property, it’s always worth taking time to research your options. Impulsively investing in something without adequate research can backfire, and actually end up costing you money instead of making a profit.
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A prime example of not checking what you’re spending your money on is the 1986 film The Money Pit. Tom Hanks and Shelley Long play a couple that buys an old mansion with a view to renovating it, only to find out after money has changed hands that it is in a much worse state than they realised.
The couple spent increasing amounts on restoring the house without fully knowing how they would pay for it, and they continued even when it may have made more financial sense to cut their losses. As the title of the film indicates, the house became a “money pit” rather than a good investment.
Had the couple waited to get the house properly surveyed and worked out a budget for the necessary repairs and renovations, they could have saved themselves a lot of time and money in the long run.
If you’re buying a property, looking to invest in stocks and shares, or making any other major financial decision, research is key. Although all investments come with some risk, researching the advantages and disadvantages and balancing the potential gains against the possible risks allows you to make a more informed decision as to whether something is the right option for you.
WARNING: NerdWallet cannot tell you if any form of investing is right for you. Depending on your choice of investment, your capital can be at risk and you may get back less than you originally paid in.
Traders have always used penny stocks to take advantage of the volatility in stock markets. Traditionally, penny stocks can be defined as stocks priced under $5. But the make-up for penny stocks has changed since the COVID-19 pandemic because a lot of businesses came below the $5 threshold to sell-off in 2020.
Now that it is almost more than a year since the pandemic started, several penny stock values have risen drastically. Even though there are many eligible penny stocks to buy right now, reopening stocks can be a popular option.
Many companies are benefiting from the vaccine distribution and the reducing number of COVID-19 cases. Stocks or shares of some businesses affected the most by the pandemic are recovering extremely fast in the reopening economy. That is why reopening penny stocks are generating a lot of interest from investors, especially these five.
Rave Restaurant Group
Rev restaurants group is the owner and operator of several pizza franchises all over the world, including Pie Five Pizza, Pizza Inn, and Pizza Inn Express kiosks. The restaurant industry was one of the most affected during the pandemic. But now that restrictions are being lifted in several states, the stock shares of Rave have jumped up more than 25%.
Rave restaurants recently declared their financial returns for the second quarter of fiscal 2021. Their total revenue was $2.1 million, which was a mere $0.7 million less than the same quarter in the last fiscal year.
The company also announced a net income of $104,000 and a $0.01 increase per share for the second quarter of fiscal 2021. Investors are saying this is a good sign and betting that the company’s stock shares will soar in the coming times.
Stocks or shares of some businesses affected the most by the pandemic are recovering extremely fast in the reopening economy.
Enzo Biochem
The stocks for Enzo biochem soared by more than 50% when they reported second-quarter financial results for fiscal 2021 on March 15. The company reported total revenue of $31.5 million for the second quarter of fiscal 2021, which was almost 62% year-over-year.
The company also declared that its consolidated gross margin has increased by almost 50% more than last year. Their sound financial results in the second quarter of fiscal 2021 reflect the positive effects of their new business model that integrates diagnostic products and services.
The company made efforts to advance its GENFLEX diagnostic test platform further. It also made further efforts to shift the diagnostic platform to aid in the COVID-19 pandemic.
According to them, the diagnostic platform will be able to lower the costs dramatically for common molecular tests. It is one of the fastest-growing sectors in the clinical test market, which means the company's success would continue to rise along with its stock shares.
Seanergy Maritime Holdings Corp
Investors looking at strong reopening penny stocks should consider Seanergy Maritime Holdings Corp. Seanergy stocks have seen a lot of bullish force in the last few months. The need for shipment did not decrease during the pandemic because of the high e-commerce sales. That is why shipping companies have gained a lot of interest from investors in the present circumstances.
Seanergy offers bulk shipping services for dry goods and has 12 Capesize ships as of February 2021. All of the vessels are less than 12 years old, which means they are relatively new and would not incur costly repairs for the company.
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The average cargo shipping capacity of these ships is more than 2.1 deadweight tons (DWT). The company announced to price $75 million common share offerings a few weeks ago, so now is the right time to invest in their penny stocks.
NewAge Inc.
Some consumer product companies like NewAge Inc. have also come into the spotlight as penny stocks start reopening. The company has adopted a multichannel approach for retail sales and focuses a lot on social selling.
Their approach is so efficient that it has beaten analyst estimates for the fourth quarter and full year of the 2020 financial results. NewAge Inc. declared revenue of $90.4 million, as opposed to an estimate of $81.2 million, which was an increase of almost 53%.
The company’s adjusted EBITDA was also higher than the analyst expectations and reached $2.9 million, which was the first positive adjusted EBITDA in over two years. The company achieved scalability and profitability from ARIX and four other companies that merged with them in November.
They have also made significant improvements to their management teams and operational capabilities, which has resulted in tremendous growth momentum for 2021.
Reopening trades or epicenter stocks have become one of the current trends with penny stocks. Some companies that were affected by the global economic downturn during the pandemic are showing tremendous turnarounds recently.
Therefore, investors are interested in stocks that are on the way to make a full recovery and trading much higher than last year. We feel that these four penny stocks are the ones to look out for in March 2021.
