Tag: investment

The interesting life of an investment banking analyst

I’m Steve Sorensen, CPA from Colorado and I love talking about finance and banking. I love giving advice and sharing what I’ve learned with anyone interested.

Last weekend, I went out with an old friend of mine who used to live in Colorado, but is now based in Michigan. She works as an investment banking analyst, and she shared with me what her professional life was like.

Investment banking analysts also dispense both financial and strategic advice to people in the private sector, corporations, and government institutions. My friend mentioned just how she got to where she was, starting as a rookie analyst. She went into investment banking to learn the ins and outs, and processes. She began learning how to do financial analysis, draft memorandums and spreadsheets (and spreadsheet models). If that sounds like a lot of work, it’s because it is.

After four years, she gained enough experience to throw her name in the hat for the vacant investment banking analyst job at her company. She got it. This was three years ago. She started by helping clients develop the right investments based on who the client was and what the client needed.

After her first year, she started reviewing client portfolios, picking investments that were profitable and ones that had to be let go or worked on.

Today, she’s learning how to look at investment options and sound opportunities for various types of clients. In a few months, she expects to handle debt insurance and stock of some clients, while studying the mechanics of mergers and acquisitions.

It all sounds good, and as long as you put in the hard work, she says, it can be a very lucrative job. I believe her.

This is Steve Sorensen, signing off.

Steve Sorensen from Colorado is a Certified Public Accountant who gives financial advice to clients both in the public and private sectors, including issues such as embezzlement. Head over to this page for more updates.

 

Benefits of foreign exchange trading

A lot of buzz has been going around about foreign exchange or Forex. Forex trading allows an individual to buy and sell currency to make profit. It utilizes all major and minor currencies as their values move in real time. Essentially, you can make money by buying a currency when it’s low and sell it when its value increases or sell a currency that’s high of value and buy it back when its value decreases. All margins are then converted into profit.

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According to business consultant Steve Sorensen, people who delve into foreign exchange reap a wide variety of benefits. Perhaps the biggest one of all is its lucrative aspect. There are a lot of people who have given up their day jobs to focus on foreign exchange full time as you can easily earn a living trading currency. Of course it takes a while before you can master the market, so be sure not to go all in when you start.

Another benefit of doing foreign exchange is that you can do it from anywhere with internet connection. There are apps you can use on your computer, laptop, or even your mobile device which lets you trade virtually anywhere. The convenience it gives to people allows them to trade on the go and never miss out on a good trade.

Image source: orbex.com

Unlike investment in stocks or bonds, you don’t need to hire an investment broker to get into foreign exchange. The apps used for foreign exchange are free of charge. They can also let you practice your skills with virtual currency.

Lastly, the market is almost always open. According to Steve Sorensen, the forex market is open virtually 24/7. When the market in the US closes, another one on the other side of the globe opens.

Steve Sorensen is a certified public accountant. He consults on business finance and investment, banking, and also on issues involving employee embezzlement. Visit this blog for more reads on his expertise.

Three Costly Investment Mistakes You Need To Avoid

Committing mistakes is a part of life, and is an essential part of our progress. However, certain mistakes are too costly to be a part of your learning process. Especially in investment, where you’re talking about your money, you can’t have too many mistakes in your portfolio.

Here are some of them so you can avoid them in the future.

1. Confirmation bias

You may believe certain things about market conditions and research for information to support those beliefs. This is dangerous as you might be ignoring other information that could be valuable in your decision making.

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2. Anchoring

Times are changing faster than ever before, not only in technology but investment as well. You may fall victim of “anchoring” where you become fixated on past information and then use that information to make investment decisions.

3. Herd mentality

People like to “belong.” It’s in our DNA. This desire could motivate you to pursue an investment just because it’s the trend and everybody’s doing it. Study and weigh the investment carefully before committing.

Image source : valueresearchonline.com

Hi there, Steve Sorensen here. I’m a certified public accountant and business writer from Colorado. I have a strong background in business and finance. I also offer advice to companies on clamping down on employee embezzlement. Visit my blog to know more.

The Unbreakable Bond Between Investments And The Economy

A country’s economy expands with the improvement of capital goods structures and the increase of capital stock. This is all tied to capital investment. Without it, no economic expansion would be possible. When investors buy capital goods like factories, machineries, transportation, computers, tools, instruments, or anything that leads to people being more productive, the money used to purchase all this is then termed capital investment. The important thing to consider is that the equipment (bought by financial capital), would need humans to design, build and operate.

PHILIPPINES - FISHERMAN IN PORO POINT
Image source: efdreams.com

Now let’s get to the interesting part – how all this helps our economy expand. When capital goods are improved, the more productive we all become. Look at the fisherman who once fished with a small boat and a small net. He invested in a bigger boat, and some machinery to haul his new mammoth-sized net. He caught more fish than he ever did before. Mr. Fisherman now has a bigger house, an extra car, and a better life. Little did he know that he helped the economy expand.

Another great thing about the increase of a country’s capital investment is the subsequent improvement in the quality of research and development – in businesses. Better R&D means higher productivity. Workers are more efficient and what they produce are better. Then they become like Mr. Fisherman, with his better life.

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Image source: cntrline.com

Hi there. My name is Steven Sorensen, and I’m a CPA and business writer based in Colorado. Learn more about business and investment by checking out this page.