a1trade.com – Discuss and get to know some asset classes

When it comes to investing, it is important for you to be familiar with the various investment asset classes. When you understand the pros and cons of each asset class, you would be able to make more informed investment decisions that suit your wealth management goals. We shall briefly discuss some of the common asset classes.


A share represents part ownership in a publicly listed company.The share price growth and dividends income are highly dependent on the company’s performance. The pros of share investment include liquidity and accessibility. While shares can yield high returns, share prices can be volatile and subjected to short-term market conditions.

Fixed Interest

These investments include debentures, government and corporate bonds. The return is generally in the form of regular interest payments over the life of the investment with the capital amount repaid when the investment matures. Although they usually offer lower potential returns,they have potentially lower risk than shares.The attractiveness of the return depends on the interest rate movements.


Cash include bank accounts, bank depositsand similar securities which have a short investment time horizon. They provide stable and low-risk income in the form of regular interest payments. They are highly liquid and havelow capital risk. However, they have one of the lowest potential returns of all asset classes, particularly in a low interest rate environment.


This asset class includes direct investment in physical property as well as investments in listed real estate investment trusts (REITs) and other property securities. The value of property can increase substantially over the medium-to-long term, generating higher returns than cash or fixed interest.This illiquid investment usually involved high capital outlay and on-going costs.

Whatever your wealth management goals are, it is important not to put all your eggs into one basket.

Equity Trading – 5 Blunders Almost Every First Time Investor Make

Buy when the price is low and sell when its high- it is this cliché that has made thousands of people invest in the stock market with high expectations, only disappoint them later with heaps of financial losses. While equity trading is no rocket-science, it is not very easy either. A lot goes into it to make the best possible decisions and tame the high market volatility for optimum return.

No wonder without the top equity trading companies by their side to help them make the right decisions, so many new investors make the regular mistakes time and again. Here are 5 equity trading blunders that new investors almost always make-

1. Diving straight to day trading- Day trading is not for anyone and everyone. Many investors lose hundreds of thousands of dollars everyday. Unless with an impeccable strategy and market understanding, it is much like a gamble where there’s a wide chance that investors would spend much beyond their original budget and end up broke.

2. Short term vision- “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” That’s what great Warren Buffet once said. His vision was long-term and that is what helped him make billions from his investment in the coming years. Entering the stock market with short-term vision is never a good idea and includes loads of risks.

3. Believing in the rumors- One of the most important things that distinguish the good investors from the beginners is that they know what to believe and what not to. Stock market is full of rumors, often created by group of people for their own profit sake. These “hot news” are hardly true and must be overlooked. Distinguishing between these bluffs and truth is a technique that new investors don’t know but must learn.

4. No portfolio diversification- Not diversifying the investment is the biggest mistake. Even though recommended by nearly every sane investor, many first time traders, running after day trading, overlook this basic sort-of-success-rule. They put all their money in one company or niche and bear the higher risk of loss than the ones who spread out their investment.

5. Unrealistic expectations- Many new investors have some over-the-top expectations from the stock market that do no good but to disappoint them exceptionally later on. Equity trading is not a quick-money scheme. George Soros didn’t make millions right after his first few trades. He lost a large amount of money, it took time and a great deal of patience.

Your Children Can Become Better Personal Finance Managers Than You Are

Personal financial management is not a subject that is taught in every school or college. This is something that nearly all of us face sooner or later. Our competence in dealing with personal finances has been largely dependent on personal experience as parents did not pay much attention to teaching their children how to manage their pocket money. GoBankingRates says that one-third of Americans have no retirement savings. People are increasingly aware of the need to manage their personal finances efficiently taking into account tough economic times.

Current Trends

Parents are now more inclined to explain the rules of personal financial management to their children than never before in order to prepare them for life as adults. But unfortunately, many parents do not know these rules themselves. What can be done to overcome this problem? The answer is very simple: IT solutions can be employed. We live in a time when each of us has a mobile device, and children start using such devices from a very early age: the website LittleThings.com claims that 90% of 2-year-olds use tablets and smartphones. So children are unlikely to feel uncomfortable when learning to manage their finances with the help of technology.

Which Solutions Can be Used?

Websites are the first educational resource that should be addressed. They represent a treasure trove of data on personal financial management. Their content is not limited to articles covering this topic. Such websites may contain a boatload of games and quizzes teaching children to manage their finances, videos, and more. Some of them specialize in a certain type of education materials (e.g. Financial Entertainment represents a financial games library).

Let’s take a look at the Practical Money Skills website by Visa.

This website is full of educational materials that can be used by adults and children. Parents can choose materials depending on preferences of a child and his/her needs. Articles are written in simple words and children can understand them easily. They can be read by parents or by children themselves.

Children like games and they can play online games there, and these games will teach them to manage finances. If children (teenagers in particular) need some extra training in making savings and assessing their financial choices, they can use calculators. For instance, teenagers planning to take a year off before starting college usually travel abroad. They have a limited budget, so planning a travel budget plays a very important role. The Travel Budgeting Calculator can show them how much they will spend on a trip.

What about comics? People of different ages like them. This website offers several comics to the visitors that introduce fundamental money management concepts to readers.

Some other materials found on this website are videos, infographics, lesson plans (for educators), etc.

What are Other Options?

Think of downloading a mobile app to your device. Custom financial software and mobile application developers do their best to deliver a killer product. There are many good financial apps that can be used by children.

Here are some of them:

1. Quest to Clean Up: chores, rewards, saving. The app can help parents to teach their children to save and earn money on things they want. Children see how much effort is required to get an item they would like to get. Parents can add task and chores (paid/unpaid) using this app and reward kids after a task is completed.

2. Yuby. This app can become the first financial instrument for children. It has the Chore List that reminds its small users what their chores are and how much money they can get for each task. Yuby shows children the sum of money they have at the moment and displays their financial activity. Children can also see how much money they need to get the stuff from the Wish List.

3. Thrive ‘n’ Shine. This is an educational adventure game that teaches high school students to manage their personal finance. The app enables users to create avatars they like. Players learn to balance their needs and wants and earn different rewards. There are section quizzes and final summative assessments in this game. Teachers (or parents) can track children’s progress using an online dashboard.

4. bankaroo. This app represents a virtual bank that teaches children about the value of money. Parents and children can make use of this app to keep track of money that children save or spend. It helps children to save for important goals. The app supports different languages and currencies. It has a paid (school) version, as well.

5. Lunch Tracker. The app teaches children to manage their saving habits by tracking spending on lunch. It contains money-saving tips. Users can see how much money they spend on dining out, eating at home or packing lunch. Children can also take the 30-day challenge to find out how much they save on a monthly basis.

10 Personal Finance Tips That Will Change Your Perspective

Here are 10 unique financial tips that can change your perspective:

1. A car can last a lot longer than five years. It’s just a hunk of metal and plastic rolling around on four tires. If you can avoid attaching your ego to your automobile, you can save a lot of money by driving your car for several more years. Put that car payment into your retirement account instead and see what happens.

2. Know the five types of financial emergencies. Are you prepared for each of them?

  • Home-related issues, such as a furnace breakage or a leaking roof
  • Major car repairs
  • Funeral-related issues. Either paying for a funeral or travelling to one
  • Medical issues
  • Job loss

3. Spend five minutes on your finances each evening. A single TV commercial break can last five minutes. Review all of your financial transactions for the day. You should have four minutes to spare after you’re done. Follow up on any discrepancies.4. Create small money goals. These should be easy to accomplish.

  • I’ll spend less than $75 on food this week.
  • I’ll save at least $25 each Friday and deposit it in my savings account.

5. Acquire renter’s insurance. It’s only a couple of dollars each month but can replace your items in case of theft or fire. Even your old computer and milk crate shelves are worth something to you.6. Find ways to entertain yourself that are free. Much of the money you spend only serves the purpose of making you feel better. Instead of distracting yourself by purchasing things you don’t need, find some free forms of entertainment.

  • Books and videos from the library
  • Attend free concerts or listen to music at home.
  • Throw a Frisbee.
  • Play cards with friends.
  • Exercise.
  • Meditate.
  • Plant a garden.

7. Pay off your small debts first. You’ll build momentum this way and feel a greater sense of accomplishment. The other alternative is to pay off the debt with the highest interest rate first. It makes more financial sense, but it’s not as satisfying. Decide for yourself.8. Consider how much it costs to use an item one time. People often don’t like to buy an expensive mattress, but consider how many times, and how many hours, you’ll use it. Even an expensive mattress only costs a few cents each night over the lifetime of the mattress.

  • How much would a $75,000 Mercedes cost to drive each day? Assuming you keep the car for 5 years, that’s roughly 1800 days. You’d be lucky to sell the car for even 50% of what you paid for it. $37,500/1800 = $21/day. That doesn’t even include the cost of insurance or the interest on your monthly car payments.

9. Avoid having too much in your savings account. Unless you need the money in the very near future, there are better places to store your money. Put your money to work for you with investments. Make a list of a few and choose the one that makes sense.10. Create a financial mantra that supports your financial goals. Use it each day.

  • I only buy things I need.
  • I bring my lunch to work.
  • I save 10% of my income.

A little unconventional advice can be a good thing. Open your mind to new ways of looking at old challenges. You’ll find solutions you’ve never considered.

Taking Bold Financial Risks

The above saying can be said to be true in some instances, but from the moment when I discovered the true meaning of wealth, I have never met a wealthy man who came into his fortune without having to take certain decisions, actions that seemed futile at that particular moment.

It is an obvious fact that making a headway in life requires a certain level of risk taking ability. Your ability to take the ‘bull by the horn’ in seemingly difficult situations determines how far you go in life.

Let’s take a case scenario of two brothers who happen to be farmers in a village far away from any natural source of water supply. Farmer A and Farmer B plant their crops at the same time in a land not too far apart from each other. After a while, the rains stop falling, farmer A is contended with the natural order of things, but Farmer B is not… he seeks ways to provide an all year round supply of water to his crops so he devises a means of transporting water from a faraway stream into his farm land. Now, farmer A tries to dissuade him by pointing out the various disadvantages of irrigation which includes over flooding. Farmer B despite knowing that he risked over flooding his small farm, persisted, ignoring the risk and thinking only of the advantages.

Eventually, it is harvest time, both farmers cultivated their crops but as you must have guessed by now, Farmer B’s harvest was more bountiful than that of his brother… in the long run, the end justified the means.

Now the difference between this two brothers is that one of them did things differently from what was regularly obtained. He took the risk of irrigating his farm despite the obvious risk of over flooding involved.

Now let’s relate this story to the present day craze for financial freedom by Nigerians as a result of which most people have bought into the now popular mavoriodian network known as MMM.

A lot of people call this scheme a scam simply because they are scared of losing their money, I mean nobody wants to lose hard earned money especially in this period of recession. Most people want financial stability, but not the risks involved in achieving this stability and as such, they remain in the same position, year in, year out.

Bill gates, one of the world’s richest man of all times, took a great risk when he took over the running of Microsoft world… the risk of immediate COLLAPSE but he was not deterred, he knew the rules of success, only the risk takers take it all.

My point being, it is a fact that nothing last forever, the mavoriodian system, might not last due to some situations which includes greediness among-st participants, but those in the business of making money know that a good deal lies in the kind of risk involved… the greater the risk, the greater your chances of gaining financial freedom.

Personally, I see no sense in putting my money in a banking system that finds every excuse possible to deduct minute sums under different pretentious guises of which nobody is held accountable for. Why not put that same sum of money in a system that works and ensures that at the end of the month, I not only get my money back, but I also get 30 percent and some bonuses.

To me, it only makes sense to do the latter. I am not one to be convinced easily, but I have tested and tried this system, I have seen millionaires with better finances than I have try this scheme and it worked for them, how much more me, a simple thousandaire…

A great man once told me, if you want to be great, then understudy great people, if you want to be wealthy, then you might as well understudy wealthy people. watch the way they work, learn from their investment tactics, their risk taking ventures… only then can you truly learn the power of making wealth.