Do not take a very conservative stand does not mean that you should play aggressively in the market.Middle ground is always better so you always according to market conditions can change in your investment basket.
We all make mistakes, we do not? Some mistakes are small that you get a second chance to make amends. But there are some mistakes that are very, very expensive and can easily be modified will not! Investment is a difficult area where you just can not afford to go wrong! So, what you should do before making an investment? Or do you know what are the most common mistakes you should avoid when making an investment? Well, here are seven common investment mistakes you should avoid at any cost is a list of!can!
Trade and investment between the misleading
Frankly, the business will help you build long term wealth, but your broker may be the best money can bring! So the basic difference between trade and investment before taking the plunge is important to understand.
Invest a lot more research and well thought out investment plan takes in several ways. The best investment strategy for you in your investments, your investment goals, your risk appetite, current market conditions and other factors about the future of the market and get some basic studies.
Taking a very conservative stand
Most people take a very conservative stand and bank deposits, Public Provident Fund (PPF) and so on would like to invest in traditional products. They argue that guarantee the return of traditional products to ensure they stock or mutual funds rather than equity returns are low. However, a good investment not only about guaranteed returns, but is about real returns. Real returns are returns post inflation.
Take a very aggressive stand
Do not take a very conservative stand does not mean that you should play aggressively in the market.Middle ground is always better so you always according to market conditions can change in your investment basket.
Holding worthless shares
This is the most common mistakes is to make some investors, holding shares in vain! Waste stocks just about non - performing stocks do not necessarily, it could mean the purchase of shares of the unheard. Purchase even if they are well when you are planning to buy stocks once unheard of.Such companies and their shares over a period of time are many examples of waste diversion.
Therefore, it is important to invest in shares of performance, and at the same time is supported by a good fund manager. For example, you regularly in small amounts and Systematic Investment Plan (SIP) can invest through a long time to make money by holding them.
Asset Allocation holds the key
For good long-term benefits of your investment basket should be filled with the right type of property. And fine-tune how the market behaves and in line with your risk appetite and financial goals depends Remember basket at regular intervals.
Market timing
This is an area where the experts feel. Markets are notoriously unpredictable in the short to medium terms. The nation's social, economic, political and business spectrums to change some parameters to predict the market, there is no fixed rule that says the market will react to this turn of events. Therefore, it such standards more time reading the exchanges are advised to stay away from. Instead, you have a closely controlled investment strategy that can help you make money in the long run can go to.
Overconfidence
Ask long-term players in the market, and you are being trusted with the recent success will be warned against.It is important to understand that their recent success in the markets of many "hidden" factors that may escape your attention could be caused by. His so-called "right of portfolio management in the over-confidence can spell trouble and you end up losing money!
Avoid these common mistakes at any cost. After all, a good start is half the battle.
Source:-http://loans.msn.bankbazaar.com/guide/7-mistakes-to-avoid-when-investing/7859/
Saturday 17 December 2011
Friday 16 December 2011
Forex Trading Strategies and Tips for Beginners
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
Forex Trading is the act of trading currencies from different countries against each other. Forex is acronym for Foreign Exchange.
For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. This is called going long on the EUR/USD.
Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you feel is going to change in value and place a trade accordingly.
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
To know if you made a good investment in Forex trading, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a “risk-free” investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the Forex market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
Source : http://loans.msn.bankbazaar.com/guide/how-does-forex-trading-work/3789/
Forex Trading is the act of trading currencies from different countries against each other. Forex is acronym for Foreign Exchange.
For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. This is called going long on the EUR/USD.
Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you feel is going to change in value and place a trade accordingly.
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:
24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
To know if you made a good investment in Forex trading, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a “risk-free” investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the Forex market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
Source : http://loans.msn.bankbazaar.com/guide/how-does-forex-trading-work/3789/
Wednesday 19 October 2011
Commodity Futures Trading for Beginners
Commodity market is that place where trader trade contracts for materials such as metals like gold and silver,corn or malt.At the End of the day traders don't have to deliver the goods to some end-consumer, most likely never will have them.
In this trader has to do is to deposit enough capital with a brokerage firm to ensure that he would be able to pay for his losses money which are basically known as commodity futures trading.
In today Market all Commodity market is online which provide you the complete fluctuation of the market.You can easily log-in into your trading account.Most Traders are used these software for trading with real time information,ranging from futures news,prices,quotes charts,technical analysis programs and other research material that are available for the clients.From this online ,traders have the freedom to make your own trades online.But Traders who have no experienced in this field always lose the money because they think that tools made available to them through trading .
Before going to trading in the commodity market trader should have complete understanding about the commodity market and have time for the trading .Don't Put much capital in the trading just start with the small amount or capital.Try to get profit from the hedging if you lose in one pack just compensate with other pack.
Take a Proper advice from the experience broker, know the complete clarification about each fluctuation in the commodity market.Don't Confuse with the different plans of the commodity in commodity just first trade on one materials and learn how to trade in the market then you can easily trade on multiple materials.
If you are very new in the commodity you first trade in corn or wheat because the margin is not high in this materials. Or you can go with the sugar because it has also minimal risk.Whereas in cattle whose ability or range is very high.whereas who have very high experience in this field who trade basically in the silver and gold. But don't stop here, this is the time refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.Traders should also be sure different fundamental and technical market analysis tools, and various risk minimizing tactics.
But the Thing which all keep in mind that not worried about the lose in the market,because it is game that we all play for winning.So Keep Growing in this field with experience.
In this trader has to do is to deposit enough capital with a brokerage firm to ensure that he would be able to pay for his losses money which are basically known as commodity futures trading.
In today Market all Commodity market is online which provide you the complete fluctuation of the market.You can easily log-in into your trading account.Most Traders are used these software for trading with real time information,ranging from futures news,prices,quotes charts,technical analysis programs and other research material that are available for the clients.From this online ,traders have the freedom to make your own trades online.But Traders who have no experienced in this field always lose the money because they think that tools made available to them through trading .
Before going to trading in the commodity market trader should have complete understanding about the commodity market and have time for the trading .Don't Put much capital in the trading just start with the small amount or capital.Try to get profit from the hedging if you lose in one pack just compensate with other pack.
Take a Proper advice from the experience broker, know the complete clarification about each fluctuation in the commodity market.Don't Confuse with the different plans of the commodity in commodity just first trade on one materials and learn how to trade in the market then you can easily trade on multiple materials.
If you are very new in the commodity you first trade in corn or wheat because the margin is not high in this materials. Or you can go with the sugar because it has also minimal risk.Whereas in cattle whose ability or range is very high.whereas who have very high experience in this field who trade basically in the silver and gold. But don't stop here, this is the time refine your skills so include any other markets you are interested in, but avoid the exotics like lumber, rice, oats, palladium, etc. They are just too thin and too volatile for the small trader to be involved in.Traders should also be sure different fundamental and technical market analysis tools, and various risk minimizing tactics.
But the Thing which all keep in mind that not worried about the lose in the market,because it is game that we all play for winning.So Keep Growing in this field with experience.
Saturday 15 October 2011
Metal commodities and how to trade in metal commodity
Commodity market is a platform there many assets are buying by holders and sellers by brokers. Everyone can make trading in that platform. Its have the very simple process of trading. You can earn money simply if you have good adviser and enough money to invest and can make hold for long time if required. In the commodity market seller/broker and buyer/holder make a contract deal for a proper time period.
As like normal human thinking for dealing same strategies are applied here. Every commodity market investors want to buy at lowest price and sell at highest price for to maximum profit. For example suppose that you want to buy gold because you believe that the price of gold will rise. You could then buy gold and store them,wait for them to go up in price, and then sell them at a profit.But if your analyzing wrong and gold price go down then you will be in loss.
Commodity market trading have options to trade in this market as like Agricultural assets, Energy assets, Metal assets. In the Metal assets two types of metals are includes Precious metals (Gold, Platinum, Silver and Palladium) and industrial metals (Copper, Lead, Zinc, Tin, Aluminum, Nickel, Aluminum alloy, Steel). The Indian commodity market achieved first rank in Silver, the second rank in Gold, Natural Gas and Copper and achieved third rank in crude oil futures in all over the world.
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials. Commodity exchange usually work in future based contract. All commodity investors make sell and buy contract to make profit deal.
In India 6 commodity exchange established-
1. Ace Derivatives and Commodity Exchange (ACE) for Agricultural
2. India Commodity Exchange Limit (ICEX) for Energy, Precious metal, Base metal, Agricultural products
3. Multi Commodity Exchange (MCX) for Energy, Precious metal, Base metal, Agricultural products
4. National Multi Commodity Exchange of india limited (NMCE) for Precious metal, metal, Agricultural
5. Bhatinda Om & Oil Exchange Ltd. (BOOE) for Agricultural products
6. National Commodity and Derivatives Exchange (NCDEX) for all
Metal Commodity
Metals are used in all areas of industry and construction, from the building of houses and factories to the fabrication of machines, electronics and consumer goods. Some metals also have value either as components of jewellery. Metals are divided in two parts for commodity trading.
1.Precious metals:- Gold is best metal which are traded in commodity market. Gold is mostly used for jewelery and its have increasing demand for industrial purpose. Indian exchange MCX had achieved second rank in around the world. Another precious metal traded on the world commodity market is silver. The Indian commodity market achieved first rank in Silver. It has the same uses of gold. Platinum and Palladium both are precious metal for industrial uses.
2.Industrial Metals:- There are many metals used in industrial processes that are traded as commodities. Some like copper, lead and tin are using from long time. Other industrial metal commodities, like zinc, aluminum, steel, nickel and molybdenum, are newer but key to many modern industrial processes.
How to invest in Metal commodity market? that’s process explain in these 10 steps for beginners-
Step 1: Locate a brokerage house with a reputation for service.
Step 2: Fill a demat account opening form with a registered brokerage house and a member with the national commodity exchanges. You could require PAN card, address proof and passport size photos.
Step 3: Be clear of the rules and regulations especially transaction costs.
Step 4: Choose the right brokerage plan that optimizes your costs, brokerage fees ranging from 0.03% to 0.08% on contract value.
Step 5: Be clear of the service deliverables from your broker.
Step 6: Insist on regular reports and special knowledge/training opportunities.
Step 7: Set aside funds for commodity investing, but remember not at the cost of other traditional investing avenues.
Step 8: Focus on a few commodities, gather requisite knowledge and pay up the initial amount for margin money, account opening charges and annual maintenance charges.
As like normal human thinking for dealing same strategies are applied here. Every commodity market investors want to buy at lowest price and sell at highest price for to maximum profit. For example suppose that you want to buy gold because you believe that the price of gold will rise. You could then buy gold and store them,wait for them to go up in price, and then sell them at a profit.But if your analyzing wrong and gold price go down then you will be in loss.
Commodity market trading have options to trade in this market as like Agricultural assets, Energy assets, Metal assets. In the Metal assets two types of metals are includes Precious metals (Gold, Platinum, Silver and Palladium) and industrial metals (Copper, Lead, Zinc, Tin, Aluminum, Nickel, Aluminum alloy, Steel). The Indian commodity market achieved first rank in Silver, the second rank in Gold, Natural Gas and Copper and achieved third rank in crude oil futures in all over the world.
A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials. Commodity exchange usually work in future based contract. All commodity investors make sell and buy contract to make profit deal.
In India 6 commodity exchange established-
1. Ace Derivatives and Commodity Exchange (ACE) for Agricultural
2. India Commodity Exchange Limit (ICEX) for Energy, Precious metal, Base metal, Agricultural products
3. Multi Commodity Exchange (MCX) for Energy, Precious metal, Base metal, Agricultural products
4. National Multi Commodity Exchange of india limited (NMCE) for Precious metal, metal, Agricultural
5. Bhatinda Om & Oil Exchange Ltd. (BOOE) for Agricultural products
6. National Commodity and Derivatives Exchange (NCDEX) for all
Metal Commodity
Metals are used in all areas of industry and construction, from the building of houses and factories to the fabrication of machines, electronics and consumer goods. Some metals also have value either as components of jewellery. Metals are divided in two parts for commodity trading.
1.Precious metals:- Gold is best metal which are traded in commodity market. Gold is mostly used for jewelery and its have increasing demand for industrial purpose. Indian exchange MCX had achieved second rank in around the world. Another precious metal traded on the world commodity market is silver. The Indian commodity market achieved first rank in Silver. It has the same uses of gold. Platinum and Palladium both are precious metal for industrial uses.
2.Industrial Metals:- There are many metals used in industrial processes that are traded as commodities. Some like copper, lead and tin are using from long time. Other industrial metal commodities, like zinc, aluminum, steel, nickel and molybdenum, are newer but key to many modern industrial processes.
How to invest in Metal commodity market? that’s process explain in these 10 steps for beginners-
Step 1: Locate a brokerage house with a reputation for service.
Step 2: Fill a demat account opening form with a registered brokerage house and a member with the national commodity exchanges. You could require PAN card, address proof and passport size photos.
Step 3: Be clear of the rules and regulations especially transaction costs.
Step 4: Choose the right brokerage plan that optimizes your costs, brokerage fees ranging from 0.03% to 0.08% on contract value.
Step 5: Be clear of the service deliverables from your broker.
Step 6: Insist on regular reports and special knowledge/training opportunities.
Step 7: Set aside funds for commodity investing, but remember not at the cost of other traditional investing avenues.
Step 8: Focus on a few commodities, gather requisite knowledge and pay up the initial amount for margin money, account opening charges and annual maintenance charges.
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