How to Start a Successful Fintech Company

Starting a fintech company has the potential to become a lucrative venture. However, for every successful fintech company, there are many other similar businesses that fail. To avoid this situation, you should follow the tips below so that the fintech business you establish has a much better chance of succeeding.

Education and Training

Before you start a fintech business, you need to understand how business and finance work. In order to build this foundation, you should complete a relevant finance-related course, such as the online master of financial economics degree program offered by universities like Ohio University. An online MFE degree or similar course will equip you with the financial and business skills and knowledge required to become a leader in your chosen fintech area.

Focus on Your Goal

Today, there are many different types of Fintech businesses you could start including companies that deal with financial billing, payments, financial advice, business tools and integration with other financial systems. Unfortunately, many entrepreneurs jump from one business idea to another and eventually end up going around in circles and never achieve anything in their business careers.

To avoid this situation, you need to stay completely focused on the idea you intend to turn into a fintech business. The more you focus on your business idea in this way, the more you will understand the area you intend to work in and the more likely it is that you will eventually develop a much stronger, more effective company.

Attracting Investment

When you start a fintech business, it’s going to cost a lot of time and money to get it up and running. Most fintech startup owners have all the time in the world, but normally they don’t have the capital required to get their new business idea off the ground.

If you don’t have access to enough startup capital, it’s essential to try and attract investors who do have money. This exercise needs to be done in a professional and business-like fashion, which means you need to produce a comprehensive business plan and know all of your facts and figures before approaching any investor.

In many cases, investors will be investing more in you and your personality as much as they will be investing in your business idea, so you need to be organized, confident, and professional at all times. If you can do this, you will be much more likely to obtain the funding you need for your startup.

Build a Professional Team

The people who work with you will determine how successful your new venture becomes. From the start, you need to surround yourself with people who know what they’re doing and have the skills and experience required for a top-quality job.

Teamwork should also be a priority. As the driving force behind your new Fintech company, you need to develop a positive business culture amongst your team members.

As you can see, there are many factors you need to address before you start a fintech company. However, it’s not an impossible task and following the steps above will ensure that you are more likely to succeed with your new company.

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How to Succeed in Online Trading

Online trading is widely seen as an appealing way for anyone to make money, by applying simple financial acumen and a basic knowledge of global economics and politics to the movements of international markets. With a computer and a reliable internet connection, you can trade from almost anywhere, whenever the markets are open. Some online platforms, such as UFX.com, even offer the opportunity to trade when they are closed through After-Hours Trading, or AHT. This creates the potential for larger profits, since there are fewer traders operating, meaning that prices can be far more ‘volatile,’ swinging more rapidly and by larger amounts.

Making significant profits from trading over the long-term does, however, demand a fair amount of effort, a cool head and the ability to learn quickly from your mistakes. There are a few basic rules that you need to follow in order to have a better chance of success, irrespective of your objectives, trading strategy and time frame.

The first rule is to consider the kind of trading style you want to adopt. Are you ready to spend a lot of time in front of your computer? Are you able to stay focused for long periods? Do you cope well with stress?

If your answer to each of these questions is ‘yes’, then scalping or day trading might be the trading style for you. Scalping involves making many trades, each within the space of a minute or so, with the aim of taking advantage of small movements in the markets. It’s particularly effective when an asset isn’t showing a significant medium-term trend in either direction, and is trading within a relatively narrow range.

If you don’t plan on spending hours monitoring the markets, then you may be better off adopting a swing trading strategy, where positions are often held for periods lasting between one day and several weeks. Traders with solid knowledge of specific assets and the factors which can affect their value – what’s known as “fundamental analysis” – often prefer this approach.

 

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Long-Term Position Traders

 

A “position trader,” on the other hand, makes long-term trades, lasting for months or even years. An understanding of macroeconomics, global politics and the dynamics of emerging industries can make this a winning strategy for traders with a great deal of patience. The main advantage is that the rewards can be immense, if, for example, you predict a surge in demand for a certain commodity that will become a key component of a new product with worldwide appeal.  

Once you’ve thought about the trading style you plan to adopt and have studied how the markets work, it’s important to apply sound money management principles to minimise any losses. One way to do this is to apply ‘stop losses’ to your trades, meaning that a position is automatically closed if its price moves beyond a pre-set limit. You can also use personal rules, such as never risking more than 2% of your total capital on a single position.

With the right plan of attack, online trading can be both highly profitable and enjoyable. Make sure you’re fully prepared for the experience and you’ll soon see why more and more people are turning their focus towards this additional income stream.