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Posted by Martin October 22, 2016
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Here’s Why Consumers Make Terrible Stock Analysts


One of the most important rules for an amateur day trader to follow is never invest in a stock in which you are emotionally involved. This is the fastest way to bankruptcy. It is like betting on your favorite sports team simply because you bleed those colors. The competition does not care what color your soul bleeds. It is all about how the talent on one team matches up with the talent on another team. Betting any other way is foolish.

Tech fanboyism may work for deciding your next smartphone. That is because for the most part, they are all good enough. It is hard to find one worth being a fan over that is truly disappointing.

But it is the worst way to determine stock value. Amateur investors put money on things they like, or on companies that are aligned with them morally or politically, or religiously. None of these things have anything to do with whether the investment will make you money.

If you are having a hard time understanding why your favorite company’s stock is not doing as well as you think it should, here are three indicators that might clear things up:

 

 · It’s Not Just About the Numbers

 

One of the big mistakes non-professionals make is that they only look at the numbers divorced from even more important factors. Mastering analytics is about more than just the profit/loss column in the quarterly report. The professionals go to school for a long time before they are qualified to publish an opinion. Shortcutting the process doesn’t make you smarter than the analysts.

Besides the amount of money they made year over year, a company’s stock can also be affected by:

• The weather in the region of a major supplier
• Political uncertainty
• Scandalous behavior of a C level executive

There are more things than poor sales that can negatively affect a stock. You have to analyze more than the numbers on the balance sheet.

 

 · Decreased Brand Value

 

Samsung may well be the most powerful brand with regard to Android phones, possibly even more so than Google. But Samsung has a problem. Their latest flagship product: the Galaxy Note 7 has a tendency to overheat and explode for causes unknown.

They have suffered an unprecedented product recall in the US. One of the new phones offered as a fix post-recall caught fire on a Southwest Airline plane, compounding the problem even more.

Despite these setbacks, Samsung earnings have not suffered. But it is a critical mistake to confuse short-term earnings with long-term stock price. The reputation of Samsung has suffered a blow that the trial vs. Apple never delivered.

It is going to take a lot of business intelligence using big-data analytics to sort out the aftermath. And it may be several months before the real fallout becomes apparent. Brand value assessment is a vital part of the analytics toolbox. A loss of brand value over time will negatively affect the stock.

 

 · Expectations and Forecasts

 

Analysts make predictions about earnings. In gambling terms, these predictions are like the line. The stock market treats earnings as a game of over/under. When the earnings are better than expected, the stock price usually gets a temporary boost. When it underperforms, it has a temporary setback.

These analyst predictions tend to only have a temporary affect either way. The other prediction comes from the company itself. On the same earnings season Apple announced their billionth iPhone sold, they also forecasted decreased financials for the following quarter.

The downgrade may not have anything to do with lower sales expectations. Apple recently lost a major fight against a patent troll regarding FaceTime. They will have to pay up. Even Apple is not immune from the impact of patent trolls.

The stock market is not really the black box consumers think it is. It works by a predictable set of rules. To follow it more successfully, you have to do the analytics beyond the balance sheet. Factor in the gains and losses in brand value. And pay attention to how well the company meets expectations.

Christina Moore is a part time blogger and full time learner! Originally from the east coast, she now resides in San Diego. She enjoys writing about business, finance and whatever else peaks her interest.
 
 




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September 2016 trading, investing, and dividends results


September seemed again to be a slow month, yet it ended very nice with a great income from trading options.

In September, we made $5,083.50 in premiums!

However, many of our trades gave us a hard time and once again we found ourselves in a trouble of being over-invested. Thus October may be slow as we will not be opening any new trades, but mostly managing the existing ones, and attempting to close them for profit. If the market will not cooperate, this may have an impact on our next month revenue.

September dividend income was better than August but not as much as we would like and expect. This month, the dividend income was $80.24 which was higher than the last month income of $59.16 dollars.
 

Options Income = $5,083.50 (account value = $13,873.32 +446.25%)
Dividend Income = $80.24 (account value = $20,329.86 +34.28%)
 

If you wish to see details about each account, continue reading below.


 


 
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Posted by Martin September 09, 2016
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Will Yellen raise rates? We do not know but sell everything, just in case

Will Yellen raise rates? We do not know but sell everything, just in case

Friday trading was a carnage. I consider this quite funny.

Since FED’s chairman changed the policy of transparency some time ago now any Mr. Fed Unimportant can talk about FED policy publicly.

But what they do is not expressing the policy or what FED will do or will not, they rather express their opinions. Any Fed’s Governor, President of the Fed’s bank can now open their mouth and say whatever they want.

Unfortunately, their opinions, speculations, and guesses caused more confusion and frustration among investors and the entire world than transparency.

We now have an even bigger mess and noise of what will, should or may happen as far as the Fed’s policy. And so any Fed’s schmuck now-a-days even a Fed’s janitor can express his opinion about Fed’s policy and spook the markets as happened today morning when one Fed official Eric S. Rosengren, who was historically dovish suddenly changed his mind and expressed his opinion on the low rates and a need on raising them.

jackson_hole_cartoon_08-25-2016_large

Yet, they are not united themselves on what they want to do. One says raise the rates and two others oppose it.

And, as is typical, in the today’s stock market, investors without judging and thinking sold off. They do not know whether the rates would go up or not. There is no sign and there is no economical need for it. It will actually hurt the economy. Yet they sold off.

And they sold everything.

There was no instrument which was saved or spared.

2016-0909-spxtrend

They were rushing into bonds which bear even less interest than what you can get in the stocks. And the more they are buying the bonds and pushing them up the lower interest these bonds will carry. And when FED raises rates, what happens to the bonds?

Indexes fell about 2.5% in average.
Gold erased about 3/4 of a per cent.
Silver lost 2.78%.

There is no way Yellen would raise rates before election in November and disrupt the whole world and the markets.

We know that Yellen wants to keep the market going so the Obama Administration can boast about it.

We know that Democrats want to make Clinton’s chance great pointing to Obama’s policy continuation.

We know that economy isn’t as rosy as they try to tell us. Until today, higher interest rates were always used as a breaker for overheating the economy.

Today, low rates are supposedly overheating the economy. Yellen was dovish, hawkish, dovish, hawkish, dovish… always saying that she was data dependent. If data is what matters, then apparently only data which matter to her are a bogus unemployment rate and stock market at all time high.

Last time when Yellen raised rates into slowing economy, the dollar got stronger (which hurts our already minuscule export) and the stock market plummeted. She wouldn’t risk upsetting the market again before election!

And investors apparently freak about it.

At least we can see an action on Wall Street, finally.

Many are taking gains of the table prior to election. I think if Trump wins, Democrats let the bubble burst so they can point finger on him telling the nation “see we told you so, he can’t manage the economy”. And there will be plenty of people who will believe it.

As of now the market dropped more than 2.40% in an uninterrupted downtrend. There was no single buying attempt to stop this selloff.

2016-0909-spxtrend2

It is significant because the Bollinger Bands were quite tight until today for a period of a month. That always signals a calm before a storm. It only won’t tell you which direction the storm is heading. Today, we know. It is downside.

Now, we need to wait and see if it spills over into the next week (and I think this will) and how big the damage will be.

However, I think that due to a political demand on keeping the economy look rosy this downtrend will not last for long (maybe a few days or next week) and we will see a quick recovery again when bargain hunters and algos step in and buy the dip. Ultimately, this may be good for the markets as it refreshes the standing waters of our Wall Street pond.

Now the goal is to survive it and if it doesn’t reverse be ready to reverse your trading direction from bullish to bearish. I do not think this will be necessary though.
 




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August 2016 trading, investing, and dividends results


August was a bit slow and my investments stalled. Many of my trades turned against me and I had to wait longer for them to end or expire than expected.

However, I expected August to be slow due to consolidating my trading. In July I made an all time high revenue when I pocketed $5,734.00 dollars in premiums. But such trading was a stretch as my account was not yet big enough to achieve such level of collected premiums. I was taking riskier trades, more trades than my money management allowed, and at several times during July I didn’t feel comfortable with my extended trading. The collected premium was nice but I didn’t like the way I did go for it.

In August I didn’t want to trade that way and I wanted to have my trades easy. I wanted to trade and feel comfortable with my trading. I think, I was successful with that plan in August although I had a few trades which made me uncomfortable. I still have too many trades open, in the money, and unable to get rid of them. I need to find a strategy how to prevent this situation and how to end my trades faster without taking a loss. So, in September, I will be working on consolidating my account, lowering the amount of trades open and improve my money and trade management.

In August, I made $2,528.00 in premiums trading options. It is however well below my original expectations as I planned on reaching at least $3,000 premiums this month. For September I am thus adjusting my expectations down and plan on making $3,000 in premiums.

August is a weak month in my dividend portfolio. My dividend income this month was lower than in July. But it was bigger than other weak months such as May and February. The dividend income this month was $59.16 vs. $86.21 last month.
 

Options Income = $2,528.00 (account value = $10,270.17 +304.38%)
Dividend Income = $59.16 (account value = $19,997.26 +32.08%)
 

If you wish to see details about each account, continue reading below.


 


 
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Why an economic revolution is appealing to the US


To a lot of mainstream media, Bernie’s victory is just what it might appear to be: a one off without too much significance. But the ones propagating that message are the ones refusing to recognize a deeper reality of American politics that Bernie is effectively trying to counter. As a few sources say, though, Bernie’s appeal does not lie in upheaving politics but the way the US society works as a whole. Even now a lot of us have trouble understanding the rhetoric that Bernie is employing and it might help if we take a basic look down at a few things.

First of all, there is little doubt surrounding the fact that the US is in one of its worst financial eras and while there are plenty of ways in which the reasons for that can be discussed, it validation is without question. Despite Obama’s efforts, the college fees keep going up and loan figures keep increasing. Employment still is a question mark for many enterprising graduates whilst healthcare is still a contesting point. Bernie’s rhetoric for removing wealth from the “1%” seems idle at times but it’s important to note that it is not without its reasons.

 

 · Tax returns

 

One thing that many Americans misunderstand is the impact of the tax. Economically, it makes sense that your welfare and other government duties are pretty much carried out through effective tax collections. The current debate is whether those tax figures should go up or not. An effective plan would detail how that tax allocation is supposed to help and we will discuss that length a bit further. The problem is being unanimous about increased taxes. Though Americans agree that the government needs to be more active in healthcare and education, they are unwilling to give further taxes to have that.

The argument is not entirely without reason. If the government is supposed to give basic needs such as healthcare and education on taxes then it should do so without charging taxes that are astronomical. Unfortunately what many fail to realize is that tax collection becomes correspondent to the income of the people within the country. Without getting into the complicated economics of it, when the wealth concentrates amongst too few a number of people, the tax collection becomes steeper if it’s uniform. Even with a constant rate for income, it becomes impractical to keep collecting taxes and expecting the same level of return by the government.

 

 · Education and healthcare

 

This is the critical aspect of the US society currently. You know why there is an anti-immigration sentiment in the US because the narrative of “they’re out to steal your jobs” is running rampant. Interesting to note that this narrative would not exist if unemployment was not as high as it has become so you cannot ignore the problem. The issue is that the singular narrative fixates the problem on the wrong root. It is a no brainer that as education becomes more expensive in the US, the employment rate within the locals is steadily declining. Remember how we talk about the need for the middle class to exist otherwise, the country slides down the developing country’s line of growth.  That is the danger that modern America faces.

The effect is easy to see: tuition becomes more expensive so the unemployment rises and debt figures subsequently rise for those who are trying to get themselves a college degree. A new policy that seeks to make education more affordable is obviously a welcome gesture but for it to succeed, the people must also understand the narrative of why higher skilled workforce requires better education.

Similarly, with healthcare, there is this void that needs to be filled due to the polarizing views surrounding Obamacare. Even though figure wise the policy has done well around the country, there is the need to invest further in healthcare around the US.

 

 · In simple terms

 

A lot of factors surrounding the US can be boiled down and linked to its economic conditions. The whole need of redistributing wealth around the middle class has become a rallying cry amongst political activists and yet the pragmatic agree that a policy that includes more Americans in the educational process is vital for the US’s economy to become healthy again. Unfortunately, such efforts will always be in vain unless an active effort on rehabilitating student loans and decreasing the tuition fees is made.




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Posted by Martin August 23, 2016
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ESOPs Create Wealth and Encourage Job Dedication for Millions of U.S. Employees

ESOPs Create Wealth and Encourage Job Dedication for Millions of U.S. Employees

ESOPs Create Wealth and Encourage Job Dedication for Millions of U.S. Employees

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In the U.S. there are an estimated 10,000+ Employee Stock Ownership Plans, or ESOPs, making business owners out of some 11 million employees. Not only do these companies tend to outperform other comparable companies that aren’t employee-owned, but their workers are able to build up retirement savings at rates far surpassing the national averages.

 

 · Just ask Aaron King

King is a 60-year-old truck driver for Lowell, Arkansas-based Central States Manufacturing Company. In the 23 years he’s been driving for the Central States he’s seen the company steadily weather the recession, grow rapidly, and become solidly profitable for its employees. Additionally, King’s been able to save up about $1.25 million in his company retirement account.

Because of the ESOP model, and desire to maximize profits, King, known as the millionaire truck driver, has observed that much of the common wasteful and dangerous behavior is minimized by employee self-policing. “We hold one another accountable,” he says. “Somebody leaving a bundle of metal where it could be run over – a $3,000 bundle – we go and get the guy and talk to him. It’s going to come out of all our paychecks.”

Another employee at the Central States, 33-year-old production supervisor Marcus Hedrick, has worked with the company since he was 17. He’s already amassed $250,000 and is well on his way to an Aron King-like early retirement. Hedrick says of his friends doing similar work, “most of them don’t have anything for retirement.”

Central States’ open-book management approach does more than just turn workers into owners, “We teach people to be business people – what capitalism is,” says Rick Carpenter, chairman and former majority owner of Central States.

Business models like these and employee-owner stories like King and Hedrick prove that the so-called “retirement crisis” in America is manageable – if companies are willing to profit-share with their employees. However, what it will also take is a collective interest in making businesses benefit everyone long-term – including the employees.

Lakeland, Florida-based Publix Super Markets, a well-known grocery store chain and the largest employee-owned company in the world is far surpassing their competitors by creating a corporate culture of respect and advancement from within. With an annual voluntary turnover rate of only 5% – they are certainly doing something right.

ESOPs are the answer to our country’s retirement woes and can help fight high turnover in industries known for their quickly burnt out employees. The trucking firms are good candidates because employee turnover at some firms is as high as 100% – well above the national average of 16.4 percent across industries.

When employee-owners have a say in important company decisions, like whether to open a new store or close an underperforming branch, or even whether to purchase used trucks or new for their transportation needs, they feel more engaged and connected to the day-to-day workings of the business and more dedicated to their jobs and missions.




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Posted by Martin August 21, 2016
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What is a rationale behind trading Jade Lizards and trade management?


Jade LizardJade lizard is a popular strategy yet not so very known among traders. I myself learned about this strategy just about a month ago although Tasty Trade performed studies on this strategy in 2013. But after I studied the strategy, I immediately fell in love with the strategy for benefits it provided.

If you have never heard about Jade lizard strategy, here is a quick review:

A Jade lizard consists of a short, naked OTM put and an OTM bear call spread. Let’s say, you want to trade this strategy against WYNN, then it would look like this:

 
Jade Lizard trade
 

In the example above I am selling 95 strike naked put and at the same time, selling 98/98.5 bear call spread.

 · When do you put on this trade?

  • This trade works best with high Implied volatility.
  • The stock was beaten down recently

  • It’s OK to trade this strategy during low IV if the premium is high enough to justify the trade.

 · Why to trade Jade Lizards?

There are a few benefits for trading Jade lizards compared to naked put trade only:

  • You collect higher premium
    Collecting higher premium does twofold service to you – it lowers your breakeven price on your put side, more than a naked put, and you get more money if the trade ends as a winner.
    If you take a look at the option chain above, you can see that opening a naked put only I would collect $4.10 premium while with the Jade Lizard I can collect $4.45 premium (+8.54% better result).

 · How to trade Jade Lizards?

When placing Jade Lizard on you must make sure that your collected premium is larger than the entire call spread width. If for example, you trade a lizard, your call spread is $1.00 wide and you collect $0.95 premium only, then such trade is bad and will not work.

If your call spread is 1 dollar wide, it means that you can realize 1 dollar loss on your call side (or $100 total loss). You want to collect at least 1.00 dollar premium or more to cover your upside.

In the example above I can collect 4.45 premium. My call side is only 0.50 wide. The call side is literally risk free. Even if the bear call spread gets in the money, I still will end up profitable.

 

 

 · How to manage Jade Lizards?

When I open a Jade Lizard trade I usually place a closing order right after the trade fill for 50% credit. So ideally, we want the trade to end as soon as possible for 50% of collected premium. It would look like this compared to a naked put only:

WYNN naked put trade opening for 4.10 credit, closing for 2.05 debit, 2.05 credit left
WYNN Jade lizard trade opening for 4.45 credit, closing for 2.225 debit, 2.225 credit left (+8.54% better result)

Let’s take a look at different situations which may occur:

 
 

Stock trades in between short put and short call

 
JL
 

50% credit management: You do not have to do anything as both your puts and calls will be losing value and you will be able to close the trade for 50% credit (+8.54% better result).

At expiration: You do not have to do anything. All your options legs will expire worthless and you will collect full credit profit (+8.54% better result).

Assignment risk: There is no early assignment risk in this situation.

 
 

Stock trades in between short call and long call

 
JL
 

50% credit management: You do not have to do anything. Your puts will be losing value and although your call spread short leg will be in the money, you will be able to close the trade for 50% credit (+8.54% better result).

At expiration: You let your puts expire worthless. Close your bear call spread. You will realize loss on your calls which will equal to the amount of how much the spread is in the money. If the stock ends at $98.30 for example, it is 0.30 in the money and you will see $30 dollars loss. Your overall trade will be $4.15 profit (4.45 – 0.30 = 4.15) or 1.21% better than naked puts only. You want to close the spread manually to avoid assignment fees which are usually high.

Assignment risk: There is no early assignment risk in this situation. No one would ever early assign an at the money option. A risk of assignment at expiration is avoided by closing the spread.

 
 

Stock trades above your call spread

 
JL
 

50% credit management: You do not have to do anything. Your puts will be losing value and although your call spread will be in the money, you will be able to close the trade for 50% credit (+8.54% better result).

At expiration: You let your puts expire worthless. Close your bear call spread. You will realize loss on your calls which will equal to the amount of the spread width. In our example, it is 0.50 or $50 dollars loss (98.5 – 98 = 0.50). Your overall trade will be $3.95 profit (4.45 – 0.50 = 3.95) or -3.66% worse than naked puts only. You want to close the spread manually to avoid assignment fees which are usually high.

Assignment risk: There is no early assignment risk in this situation if the stock is trading fairly close to your spread. If however early assignment happens, then exercise your long call to cover your short stock. Your overall loss will still equal to the width of the spread. A risk of assignment at expiration is avoided by closing the spread.

 
 

Stock trades below your puts

 
JL
 

50% credit management: You still may be able to get out of this trade for a profit by closing it early before gamma kicks in. Generally, however, you won’t be able to do much and the trade will stay open until expiration.

At expiration: You let your call spread expire worthless. Roll your in the money put into the next month and at the same time sell a new call spread against it creating a new jade lizard. Based on where the stock is if at the money but still in the money then roll into the same strike, if deep in the money then roll to a lower strike.

Assignment risk: There is no early assignment risk in this situation if the stock is trading fairly close to your naked put. Again no one would ever exercise at the money put. If the stock sinks too deep and an early assignment happens, then keep the stock and start selling covered calls. A risk of assignment at expiration is avoided by rolling the put away in time.
 

 · Conclusion

If you follow my blog and read regularly you may know that I do not predict the market or stock move. I believe it is a futile work to try predicting the market. Instead of predicting what your stock will do next, make a plan what you will do next.

Above, I tried to show you what everything can happen with a trade once you put it on and my plan what I would do with it. It is all you need to know. You need to know answers to all those situations before you place a trade.

Once you place a trade and know all the steps you would do, you will be trading with ease and in a comfort zone. You will no longer be worried what would happen with the stock. You will no longer be worried if you open a trade and you will be wrong and the stock tanks.

It is because no matter what happens you have a trading plan for that situation and you know what to do to make that trade still a winning trade.

And then it all comes to your money management instead. You do all these trades and trade adjustments without over-trading your account. If you keep enough cash reserve in your account then you do not have to worry about your margin, early assignment, or anything what jumps on you.

If you over-trade, however, you will not be allowed to do anything with your trade, you will see a margin call, and you will be forced closing your positions at a loss. And you do not want that.
 




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Posted by Martin August 21, 2016
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Option Trader Interview


About a month ago I participated on a series of traders interviews on Amber Tree Leaves blog. I read all of them so far and I was pleased to see other investors and traders involved in options trading. I consider options as a great investing vehicle and excellent tool to supercharge your results. But it must be done right. If you do not trade options properly they can hurt you a lot.

Amber Tree Leaves

Speculation is not what you want to be involved, but consistent step by step trading, small at first, larger later, is what you want. If you start speculating, predicting, betting, then you start gambling and lose money.

I have seen people, my friends – traders, spending hours drawing charts, predicting the next move and convincing themselves that the stock or market was overbought or oversold and then “next week it definitely must reverse” and placing their bets against the market/stock. They lost money.

Trading is not about speculating and predicting the market. Trading is about being aware of what’s going on and being able to adjust and manage your trade accordingly.

Since no one can ever predict the future how do you deal with a trade? That is your goal to make a trading plan which answers this question for you.

I advocate on this blog, that you shouldn’t be predicting and trying to know what the stock or market will do next, but what YOU will do next.

This took me a long time to finally understand. But once you get it, your trading becomes easy, smooth, and consistent. This was my “aha” moment. Since then, I trade with an incredible ease knowing that I do not have to be always right to have winning consistent trades.

Continue reading the interview on Amber Tree Leaves >>>




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July 2016 trading, investing, and dividends results


When I finished June with $2,331.00 income I thought “that was it!” It was a great income and I haven’t expected that I could ever exceed it. I hoped, I could beat it by a thousand and finish July 2016 month at around $3,000 dollar income.

But by July 10 my account was making $2 dollars. Yes, I was making just two dollars and I was thinking what would I do when I start trading for a living and make only two dollars? Will two bucks pay my bills? So I was comforting myself saying that it would be OK to make less in July. That’s why I do not withdraw all I make but only 20% until I reach 1$0,000 monthly income when I start withdrawing 50%. So, if I make less in one month I still will be ahead.

But then it all started coming together and I made even more than in June. I made $5,734.00 in July in premiums trading options!

My dividend income this month was also higher than in June. It was actually the highest month I ever had. The dividend income was $86.21 vs. $81.68 last month.
 

Options Income = $5,734.00 (account value = $10,124.81 +293.04%)
Dividend Income = $86.21 (account value = $20,596.08 +36.04%)
 

If you wish to see details about each account, continue reading below.


 


 
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August 2016 Stock Considerations By Keith with DivHut

 
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Development of Digital Technologies to Transform Trade and Investments

Development of Digital Technologies to Transform Trade and Investments

With the spread of digital technologies and innovation, it is transforming and changing the traditional dynamics of the stock exchange market as well as the flow of goods, services, investments, money and people. Digital trade is now on the verge to become an essential component in the global flow between international markets. As such technologies give a boost to digital trade as it grows at a fast pace and is asserting new forms to facilitate ways to measure through the development of new customized apps and online platforms for the purposes of production, exchange flow and consumption.

Development of Digital Technologies to Transform Trade and Investments

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More and more large and small companies, as well as entrepreneurs, retailers and consumers are largely affected by such fast-paced developments and constitute opportunities as well as challenges. The rapid transformation of the traditional methods to digital platforms enhances businesses, trade and investment and means of communication which could leverage data security, measurement, and growth.

This blog further explains the use of digital technologies and online platforms to give businesses a global reach to enable digital flows of online money transfers, trade flows, and cross-border e-commerce.

 

The Dynamism of Digital Platforms

Though the transformation towards more digital savvy forms of communication is in its earliest stages, more people are becoming more instantaneous to globally engage with one another. For example, more industrial development is being done on the basis on 3D printing for certain manufacturing parts and equipment in the form of physical objects. As the internet expands, the traditional and outdated forms to conduct businesses across border begin to fade away.

 

The Dynamism of Digital Platforms

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There is no doubt that digitization has lowered the prices in marginal production and distribution costs and given accessibility to global commerce. The cost reductions have occurred in trade, not just for large companies but for small entrepreneurial projects as well. Spurring financial innovations have taken place in light of newly developed apps, social media accessibility, and micro-multinationals and micro supply chains are now able to tap into global opportunities.

 

The Ability to Monitor, Forecast and Manage Objects Digitally

Digitalization has greatly influenced and transformed logistics, retailer management, and supply chain networks. Companies can now collect and track information about a transaction, product, place or time. With operating efficiency increasing in contrast with cost spending, many other industries in the stock market like oil and gas companies, automobile, telecommunication, IT sectors etc. are now seeing the payoff in their operations with the help of digitally savvy platforms. With digitally monitoring machines in the office, business owners or supervisors can track the progress of their shipment order, parcels, and containers as digital technologies help companies to get further ahead out of their physical confinements.

 

The Ability to Monitor, Forecast and Manage Objects Digitally

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The External Factors

There are further implications for the future of trade and investment in order to survive in the emerging markets. Soon, governments too would be forced to adapt to new innovations and deal with the upsurge in digitalization of trade and investments. Policymakers would address and be able to forecast sensitive issues beforehand. Trade agreements would be on the basis of the cross-border flow of data and communication. People, retailers, stock market intelligence would use digital and mobile connections to share ideas, communicate and collaborate to make business to business relations and social connections. An entrepreneur would easily make a product and use a patented idea to sell it globally thus digital platforms would enable a whole new array of revenue streamlines. This would also mean the more people would get the opportunity to outsource online platforms and businesses would start up with less up-front investment and scale up much quickly. Thus the development of digital platforms would strengthen global trade and investment opportunities and generate strategic analysis and recommendations for the stock market as well.




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