Category Archives: Stock Market Tips

Nintendo’s shares boomed after Pokemon Go

Probably everyone has already heard of the new game Pokemon Go, which was released by Nintendo and Google. It hit all of the charts on Google Play and Appstore, being downloaded by millions of users all over the world. So how did Nintendo benefit from their successful product launch? Actually, it happened in different ways.

First of all, the price for Nintendo shares increased. It’s natural because this game still remains being actively discussed, even though Nintendo is not its only owner. According to their agreement, another developer is Niantic Lab, a gaming company, which was earlier included in Google. The growth is estimated to reach about 20-25% of value.

One more positive factor for Nintendo is some ‘monetizational’ factors, like the level of engagement of user with this game and the addictiveness. According to several types of research, a new product in the gaming world has one of the highest mentioned above parameters in its industry. So, we can conclude, that Pokemon Go either made some obvious positive changes for Nintendo’s shares price; or is a perspective product, which will be definitely customized and improved in the future. It will result in some more revenues for the owners of the application. On the other hand, it will increase the price of shares of Nintendo even more. Time will show us, what kind of growth will it be.

At the current moment, the gaming company may continue their work with augmented reality products, developing some new interesting games and applications.

Is trading stocks a gambling?

Most of the people, who hear about trading stocks and investing in them consider this way of earning money to be something like a gambling. They claim, that it’s based on some randomness, which can’t be predicted. As a result, a person can’t control anything and uses his or her luck only. Of course, it’s not true. In this article we are going to prove it.

Stock is a key to accessing the actual profits of the company, to its cost and its value. Investors, who buy stocks, get some revenue, which is formed of the money, that gets into the company after it gets to the shareholders. So, investors buy something real – some part of the business, which is, though, presented in a virtual stock. If an investor wants to get his money back, he can exchange the stock for its price. If the company increased its value, the final price of such an exchange will be bigger, than the money he invested in the very beginning. This is the simple explanation of the earning process of investors.

On the other hand, gambling doesn’t create any additional value. Money, which are ‘invested’, are simply taken away by the casino and, according to some random combination, are paid back with some profits or taken away forever. A person can’t exchange his bet.

So, as you can see, gambling and stock investing are absolutely different in its core. Calling stock trading a ‘gambling’ is wrong.

Why do you think, that the stock price turns back?

A lot of investors make similar mistakes in their actions. Some of them can be really calle ‘the group mistakes’, because they are made by several people at the same time. The belief, that the price of a stock can turn back again is one of them. Let’s draw a simple example, in order to show the real picture of this myth.

Imagine, that there are two stocks – X and Y. The price of X was 10$, while the price of Y was $50. In 5 years the situation changed – the X’s price was equal to $25; while the Y’s price was $20. How do you think, which of them is much more attractive for the majority of investors? Right, it’s the Y stock.

People believe, that things are going to become same, as they were some years ago. If we are talking about the stock prices, it’s a belief, that they can raise or fall down again, as it was earlier.

On the other hand, if we see that the price of any stock is growing, we can make a similar mistake. People can think, that the price is growing now, but it will fall down later again. That’s why another company – with more expensive stocks in the past, is a better perspective. Surely, it’s a false.

There is no any magic power, that will bring the stock prices back. It’s only the actual reflection of the market, of the company condition and the processes, running inside.

How to improve your credit score?

It’s not a secret, that a good credit score can play a huge role, when you apply for the loan. No matter, if it’s a personal loan for buying a car or a boat – you can save thousands dollars, if your score was higher than it is. So, how can you raise it fast with minimum efforts? Let’s find out.

1.Errors

If your credit report has got any errors – you should immediately dispute them. If you are sure, that the credit bureau has made some mistakes, you should point their attention to this fact, if you don’t want to pay more in the future.

2.Paying Off is a key

In order to improve your credit score, you should think well about paying off the debt. It’s a key to lowering the debt-to-income ratio. As a result, it makes you a more appealing person for lending the money, from the bank’s point of view. So we advise you to pay off.

3.Opening a second credit card

Another credit card will definitely raise your credit score, just as you like. Besides, it can be used for shopping needs on your own, allowing you to purchase more.

4.Raising the credit limit

If you have got a credit right now, you can ask your lender for increasing the credit limit. Even if you don’t actually need this money, you willl be able to leave them with no movement. However, you credit score will be improved.

 

Don’t try to predict a short-term market movements

Trading stocks can be very different, according to the strategy you choose. For example, you can use some long-term predictions in order to trade on a perspective; or, in another case, you can try predicting some events from the nearest future, making bets on some short term events. The specialists consider it to be one of the most common mistakes of those, who start trading at first. People, who are not so familiar with the market, due to their lack of experience, think, that they will be able to predict some of the nearest market movements and gain some fast profits. It’s impossible. If you really managed to do this – you are just a lucky, but not a smart trader.

Market traders with big experience advice not to rush the events. Everything, that happens to your stocks, has some certain reasons for this. That’s why it’s better for you to pay attention to some general conditions of company development, or watch for some real signals, but not try to guess. If you don’t – your risks of failure grow pretty much.

Benjamin Graham has once said, that short run shows only the popularity of companies, but not the real situation on the market. Only the long run can show you, how successful this company is and how its role will change in the future.

The main role in a successful trading stocks plays patience. If only you keep patient, you can achieve some great results.