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/
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