Investment opportunities are everywhere when you know where to look. From real estate and property to eco-tourism projects and new tech, there are many ways to realize a return on your investment. Of course, no investment is ever guaranteed. However, with the right insights, experience, and timing, anything is possible. Indeed, that’s something more people are becoming aware of thanks to the internet. Through a combination of social media and new technology, investing and trading have become mainstream over the last decade.
One area of interest that’s become popular with those wanting to speculate on multiple companies is indices. Index trading allows retail customers (i.e. individual traders) to buy and sell an entire stock market in one trade. For example, online brokerage platform INFINOX allows its customers to trade the S&P 500. That means they’re speculating on the S&P 500 which, in turn, has a value based on the top 500 largest companies in the US.
Trading indices online is more accessible than ever
Trading indices is popular because your potential doesn’t rest on the performance of a single company. Instead, you’re speculating on the market as a whole. Therefore, if an S&P 500 company like Apple is performing poorly, it might not matter if Google et al are strong. Essentially, if all but one major company is strong, the value of the S&P 500 can increase. That’s one of the main reasons people like trading indices but it’s not the only one. Modern online trading sites also give customers the option to trade indices using contracts for difference (CFDs).
The defining feature of CFDs is that you’re speculating on price movements instead of purchasing the underlying asset. When you buy an asset such as gold, you’ll only make a profit when its value increases. Trading CFDs allows you to take either side of the coin. In other words, because you’re speculating on the price and not buying an asset, you can trade on the value increasing or decreasing. This level of flexibility has helped make trading more accessible to the mainstream audience because it offers more control.
There are opportunities everywhere
Giving people more ways to invest is great but it falls short if there’s not a constant stream of data to draw from. All investments, whether it’s in property, start-ups, or indices, have to be informed decisions. Putting money into something you don’t understand is a recipe for disaster. For example, when we highlighted the land for sale in Harrismith and Tshiame, we noted that it was located on the N3 national road. That road is a transportation route.
This information is useful because it means the land is more desirable. Having the same type of insights is just as important when you’re trading online. Social media has become a great resource not only for breaking news but reactions to it. If a political announcement causes unrest on social media, it could be an indication that investor confidence is about to drop. That, in turn, will cause the value of an asset to fall.
Of course, the top online trading sites also offer charting and advanced analytics. However, for novices looking to make their first trade, social media can be an easy way to gauge public opinion. It’s not foolproof but it plays into the idea that the internet has made trading more accessible. Indeed, if you know where to look, there really are investment opportunities everywhere online.