Author: James Ogunsanwo

Why you need an emergency fund

Why you need an emergency fund

An emergency fund is defined as “a stash of money set aside to cover the financial surprises life throws your way”.  Living without an emergency fund is like driving a car without knowing where any petrol stations are. You might get to your destination but if you run out of petrol you’re going to be […]

Calculating forex profits and losses

Calculating forex profits and losses

Profits and losses can be calculated using the following equation. No. pips * No lots * your chosen currency value per pip per standard lot. If you don’t know your chosen currency value per pip, you can go to this website: https://uk.investing.com/tools/forex-pip-calculator. Calculation examples Here’s a quick example, if you have a standard lot of […]

The power of leverage

The power of leverage

In certain markets e.g. the forex market, brokers allow traders to leverage up to 1: 100. This allows you to buy and sell GBP 100 for every GBP 1 you margin.  The leverage rate depends on the broker, different brokers will provide different rates. A typical leverage rate 1: 2, 1:10, 1:20 or 1:30 depending […]

What is margin trading

What is margin trading

A margin is a loan provided by stockbrokers to allow the investor and or traders to buy securities. They use cash and other items of value as assurance for the loan.  In most cases, you put down a percentage of your account to gain a larger position in the market. The main reason investors use […]

What is forex

What is forex

Forex aka the foreign exchange market or fx is a market for trading currencies. Forex is one if not the biggest market currently due to its extremely high liquidity. The market is open for 24 hours from Monday to Friday so it an amazing market to trade if you work a full-time job or are […]

Averaging up

Averaging up

What is averaging up? Averaging up refers to the process of buying additional shares of a stock you already own at a higher price. What are the benefits? This raises the average price of the stocks you own. If you own 1000 shares in stock Y at £10.00 and the price increases to £15.00. You […]

Averaging down

Averaging down

What is averaging down? Averaging down refers to the additional purchase of units of stocks you have already invested in, after the price has dropped from your original purchase price.  Why is it bad? Averaging down can cause you to keep adding to a losing position. If you buy 1000 shares of stock X at […]

The Millionaire Next Door

The Millionaire Next Door

January 2019 book of the month is The Millionaire Next Door: The Surprising Secrets of America’s Wealth. This is a US-based book which explains the methods used by the wealthy to accumulate wealth. The book also teaches you how the wealthy stay wealthy. This is an amazing book that helps to change your mindset on […]

Rich Dad Poor Dad

Rich Dad Poor Dad

Decembers 2018 book of the month is Rich Dad Poor Dad. This is a US-based book which provides the reader with an insight into the mind of the wealthy. This book is the best-selling Personal Finance book of all time and tells the story of Robert Kiyosaki and his two dads. The book tells us […]