Your Guide to Personal Finance Management with Admirals
Personal finance management is a 'taboo' topic for many; simply put, finances scare most people – but why is that?
Generally speaking, people fear what they don't understand – and it seems that finances are on the top of the list. But what if you changed your mindset and had a different perspective when it came to money management? What if you could manage your investing in a better way?
With the right trading tools, investing and management products and overall concept of various trading strategies, this taboo topic all of a sudden seems to make a lot of sense. Personal finance management, day to day and investments, are not topics to shy away from, but topics to embrace, as doing such will lead you to an organized path of success.
Table of Contents
What Assets Can I Trade and Invest In?
The options in both trading and investing are vast; what options do you have for trading the markets? What options do you have for long term investing? To effectively maintain both wealth and investment management, this is often where the journey starts.
To embark on your journey to reach 'financial freedom', however you define it, you first need to understand your goals. From a general standpoint, it is best to have a strategy which encompasses both. Short term gains and long-term growth could be seen as the golden solution.
Forex: Foreign exchange, also known as Forex, is certainly one of the most popular methods of trading. There are many financial markets and currency pairs which have valuable movement from both a Buy and Sell perspective.
Admirals offers over 40+ Contracts For Difference (CFDs) on currency pairs, which gives you plenty of exposure and the security to know we are a regulated broker. Execution is done within milliseconds and you have the option to trade from 0 pips. The added option of leverage is also an advantage which should be reviewed and considered.
If you are new to Forex, have a look at this beginner's video, below, to learn more. Be sure not to miss out on our many educational videos on our YouTube channel (don't forget to Subscribe):
Stock Share CFDs: Similar to Forex CFDs, we also offer trading on popular Stock CFDs. While the market has been more volatile than usual over the last 12 months, which is something to consider in your risk management, you can always uncover good trading opportunities in this as well.
Tesla, Facebook, Disney, Apple, Microsoft... These major companies along with many others can be traded via our CFDs. Admirals offers Share CFDs on companies within the US, UK and Europe, again offering plenty of diversity for your CFD trading strategy.
Stock Shares: As we offer Share CFDs, we also make available the option to invest in the direct company asset via shares. This is generally more suitable if you're looking to invest for long-term growth.
An excellent benefit of investing in the stocks directly, in comparison to trading share CFDs, is that you will be paid dividends if you are holding shares within a company that allows such.
As mentioned previously, it is all about a combined approach of both short- and long-term point of view; this is why we make it possible to do both.
Crypto CFDs (Only available to our Admiral Markets Cyprus Ltd and Admiral Markets Pty Ltd users): There has been plenty of action in the media and on the market when it comes to cryptocurrency. Likely the most volatile asset of them all (which you must consider for your risk tolerance), traders find this instrument particularly interesting.
We proudly offer 30+ currency and crypto cross-pair CFDs to our Admiral Markets Cyprus Ltd and Admiral Markets Pty Ltdusers, giving our users the option to diversify and modernize with this asset class. We also offer an extensive guide on how to trade cryptocurrency CFDs, if you'd like to make yourself more familiar.
ETFs: ETFs (Exchange Traded Funds) are a growingly popular investment for traders of all levels.
Like with stock shares, we offer both ETF CFDs and ETFs, which in theory can work well in both the short-term and long-term strategy; CFDs are more ideal for short-term, whereas regular ETFs are valid as a long-term investment vehicle. Learn more about What are ETFs? In our dedicated educational article.
Bonds: Bonds are known to have typically low volatility, which are suitable for most types of investors and even traders. With high liquidity and legal protection, they are also seen as 'safer' in comparison to stocks.
In terms of variety, there is a good amount and hence various bonds can suit the different needs of investors. However, since a bond is basically an instrument of debt, they can hold the disadvantage of risk of prepayment and reinvestment risk, credit risk, inflation risk and so on. You can read more about the different types of bonds here.
Admirals offers the options to both Buy and Sell Bond CFDs, with some of the most popular being the 10-year US Treasury Note Futures CFD and the 10-year Germany Bund Futures CFD.
Are you new to world of trading and investing? Before you commit real capital, it is advised that you first get familiar with trading by using a free demo account:
Top 5 Trading Instruments
At Admirals, you may be aware that you have the option to trade and invest in over 8,000+ trading instruments. If you are a beginner trader, this may come as overwhelming, which is why we like to showcase and point out the most popular instruments – Most importantly, the top 5 trading instruments.
| 1. EUR/USD | Trade the Euro vs US Dollar CFD pair |
| 2. DAX40 | Trade the DAX40 CFD with competitive trading terms |
| 3. DJI30 | Trade the Dow Jones Index CFD against the US Dollar |
| 4. GBP/USD | Trade the Great Britain Pound against the US Dollar |
| 5. Gold | Trade CFDs on Gold against the US Dollar |
Volatility Protection
How can you minimise volatility risk in your trading activity? This is a crucial component to consider, especially in the current market climate.
Consider using volatility protection, a package we offer with advanced trading settings which make sudden market volatility much more manageable. How is this possible? Such settings limit maximum price slippage on both market and stop orders, limit or avoid losses on pending orders which fall into price gaps, execute limit order and take-profits even on sudden market movements, among other settings.
You can activate your Volatility Protecting Settings within your Dashboard account with both live and demo accounts at any time. These settings work in conjunction with the various MT4 and MT5 platforms we offer for free.
Have You Tried Copy Trading?
Copy trading (only available to our Admiral Markets Cyprus Ltd users) is a relatively new option made available for traders. The option of copy trading allows you to, quite literally, copy another trader's portfolio in order mimic their results.
This gives you the option to gain exposure to new markets which you may not be knowledgeable of, while it can also suit those who want exposure to the markets but lack the time needed to make the right moves.
It certainly brings an element of social trading to the table, where you can also set your preferred stop loss, take profit and copy ratio limits. While you will be following the moves executed by the trader, you can also maintain comfortable control via these settings.
As with anything related to trading and investing, there are always risks involved. Make yourself aware in more detail by reading through our What is Copy Trading? detailed guide.
The Option of Leverage
Using leverage in addition to your margin in your trading efforts can be beneficial, but this option also comes with a substantial amount of risk to your capital.
Every Admirals retail trader has access to limited leverage by default.
Depending on the instrument you are trading with will determine your leverage ratio – anything from 1:2 to 1:30 for those within the CySec region. It is important to always review the Contract Specifications before you trade any listed instrument, so you can be aware of the risks.
What Trading and Investing Tools are Available?
As any good trader will tell you, the tools you use to analyse and hence trade the markets are key to your success. It is ideal to understand your tool box, how to make them work for you and how they can work together.
For the traders at Admirals, we offer various free trading tools which are well-known and reliable within the trading industry. These being third-party tools, there is also a full transparency factor which we consider important in regards to trust and security.
MetaTrader 4 and MetaTrader 5: Mostly all traders with relative experience on the markets will be aware of MetaTrader 4 and 5. They are both excellent tools for analysing the various markets and when connected to your Admirals account, you can execute and manage your trades seamlessly.
Learn more about shortcuts for both MT4 and MT5 here.
MetaTrader Supreme Edition: To further complement the above trading tool, you have the Supreme Edition plugin for MT4 and MT5. The SE plugin allows for advanced technical analysis as well as valuable analyst opinion on the markets.
MetaTrader VPS: The MetaTrader Virtual Private Server (VPS) serves its purpose by allowing you to perform tasks in a completely private and secure manner. It is integrated directly into the MT4 and MT5 platforms.
Read more in our guide here.
StereoTrader: A trading panel as a part of the MetaTrader family, this additional tool brings unique functions and improved automation. For example, you can use multiple trading strategies within one instrument using the StereoTrader tool.
Learn more about how to use this tool here.
Trading App: Last but certainly not least, it is crucial to also mention the Admirals Trading App – a mobile app where you can manage all of your trading activity within one place. As our in-house app, you can manage all of your positions and market quotes easily and without the need of a laptop, which is becoming a more convenient reality.
Personal Finance Management: What is the Cohesive Approach?
We've covered all of the many assets and instruments you can trade, with the tools you need to make the most informed decisions, but what about over personal finance management?
As of 2021, Admirals has launched both the Admirals Wallet and Admirals Card, so you can truly have all of your activity within one place and easily accessible.
Admirals Wallet: Your Admirals Wallet is connected directly to your account via the Dashboard, giving you the option to deposit and withdrawal funds at your convenience. As you may imagine, having your Dashboard and Trading App connected to your own Admirals Wallet makes your trading experience much more seamless, and thus the aspect of money management also becomes more streamlined.
We have a detailed tutorial of the Admirals Wallet available here.
Admiral Markets Card (Only available to our Admiral Markets Cyprus Ltd users): And how about when you're venturing through the physical world? The Admiral Markets Visa card is both a virtual and physical card which you may use to spend your funds anywhere you like which accepts Visa. Connected to your Dashboard, it is the extra step forward for convenience and effective money management.
See here more a detailed tutorial on the Admiral Markets Card.
Conclusion
We hope you have made it to the end of this article with a lighter feeling and more positive mindset towards personal finance management.
While it may be a long shot to say everything is 'easy', with the right tools and approach, it can be incredibly organized to the point where your personal process becomes natural. Practice also makes perfect, as they say – the more you follow these money and trading management guidelines, the easier it does become.
If you haven't already, sign up with us today and start implementing steps towards overall cohesive financial and investment management.
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INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademarks (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:
1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on the Brandie E Blackler, Financial Writer personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
