Five Forex and Investment Tips to Know Before You Trade

Currency trading is attractive due to the emergence of improvement in technologies that make it easier even for newbies to participate and make some profit in a market that is so volatile. Another side of the appeal comes from the potential of the Forex market which does at least $3 trillion daily volume on the higher side and $30 billion on a NYSE typical day of operation. Those figures could make you wealthy if you have the right strategy.

 

With regards to this, here are some Forex and investment tips that you should know before jumping into the market:

 

1. Never undermine the simplicity of Forex trading

 

Forex appeals to people due to the fact that there are only a few global currencies being traded vs hundreds of publicly traded stock. However, this simplicity shouldn’t be seen as easy. The reason being; the small list of currencies you’re seeing in the market is tied to a big picture trend, plus other issues related to central banking and Geo-location tend to influence the outcome. For this reason, you must be equipped with the best Forex tips to understand the entire modern monetary system as related to world events.

 

2. Movements tend to be small and the impact is huge

 

Currency movement in Forex trading tend to be very small. Movement such as 1/100th of a percentage (known as pips) is the most common denomination. Relate this to the stock market and you realize that such an insignificant movement is nothing to sneeze about.

 

So while trading Forex, always remember that the smallest movement can equate the standard lot size of about 100,000 units of currency.

 

3. Leverage plus risks

 

Due to the fact that standard lots tend to be very large, traders are often forced to borrow to make substantive size of trades. This can be seen in the way 100,000 units is able to quickly top $100,000 in a single trade value. This strategy is what experts call ”Leverage”. You should learn it from the best Forex tips, otherwise, you will be vulnerable to suffering big risks. Since you’re trading with another person’s money, you can’t afford to make a single mistake trading large lots of money without mastering proper Forex and investment tips.

 

4. This market is aggressive and even sophisticated

 

Every trader should consider Forex an aggressive asset class which shouldn’t be included in a typical asset portfolio. Like what happens in short selling, penny stock investing and other high-risk investment strategies, you could make some serious dough if you are right in every move.

 

Therefore, if you are a rookie trader, learn the best investment tips first. Only come back when you have built enough of knowledge and nerves of steel to play the game.

 

5. Trading takes place round the clock

 

Due to the advancement in technology now, the Forex market is a 24-hour market that allows you (or sometimes forces you) to trade at certain times. Some veteran Forex traders are known to work in front of their PCs during odd hours. What this means is that you should be ready for this commitment before you begin. And of course never forget to learn the best investment tips first.

best investment options for retired person

Worst and Best Investment Options for Retired Person

It is important to realize that investing is not an exact science. Even though some seem to make money in whatever they invest, others seem to lose whenever they invest in anything. The simplest, most straightforward method for evaluating any investment is the percentage of people who buy into it and get their money back. The next rule of thumb is how many made returns above their investments.

Generally, if investments make more money than they cost, they can be considered good investments. Most successful investors are what can be called hedged risk-takers. That means that they will take risks periodically if they can afford to, but they never take more risks than are considered necessary to accomplish their goals. Although there are investments that historically have reaped more financial rewards than financial disasters, many more are nothing more than bottomless pits that continually feed the never-quenched thirst of speculation. They seem to always promise great returns but seldom seem to deliver.

This article does not presume to give investment advice. Based on past performance, it merely points out and draws attention to what investments over the years have been most likely to produce financial gains and those that have been mostly likely to produce financial disappointments or losses. Although past performance does not necessarily guarantee the same showing for the future, it does provide a standard by which nonprofessional investors can judge whether an investment is historically financially safe or detrimental. So, based on the fact that these best and worst investments are not intended to be used as guidelines for developing investment strategies but, rather, are to be viewed as investment suggestions based on past performance, we submit the following the best investment options for retired person :

“Worst investments” is the best investment options for retired person

Commodities speculation

Commodities trading is the buying and selling of materials for future delivery. Unless you have the absolute conviction that everything you own belongs to God and can go to bed at night with the understanding that everything you have worked for most of your life can be lost while you sleep and the thought of that possibility is irrelevant to you with regard to your life and lifestyle, don’t trade commodities.

Partnerships :

The most common financial partnerships are limited partnerships, meaning that the contractual arrangement specifies a general partner and one or more limited partners. The intent is to limit the liability of the limited partners to their financial investments only. But because of recaptured deferred taxes, seldom do investors recoup their initial investments in the length of time originally proposed, if ever.

Tax shelters :

Tax shelters are used primarily to defer income taxes, rather than for any economic value they might have. Since the 1986 Tax Reform Act, tax shelters for the average investor have been curtailed. Generally, the only people who can be profitable in tax shelter investments are those who have a large amount of passive income, rather than earned income. So, for the average American worker, tax shelters are not recommended.

Gemstones :

The diamond on your finger is not an investment; it’s a keepsake. Most novice gem speculators usually buy high and sell low. Gem investing is for those who have nerves of steel, the strong at heart, and the rich. Seldom do investors make any money in gems, unless they are one of a small group of international gem professionals of gem collectors.

Collectibles :

Coins, stamps, books, porcelain, works of art, and other unique items can be good investments for knowledgeable buyers who take the time and effort to become proficient at their trade or for those who collect such items as a hobby or for leisure. However, for the average non-professional collectibles investor, the market is extremely limited and slow moving—neither worth the time nor the effort when compared to the limited financial rewards.

Stocks :

Although the knowledgeable, professional investors can and do make money regularly on common stock, average investors are not equipped to accurately speculate on which stock will do well and which will not. If the average investor would invest in a common stock, leave it for 10 years, and not touch it, it probably would keep up with inflation and perhaps even gain 3 or 4 percent. But seldom do average investors do that. They generally try to move their investments from stock to stock in order to reap the maximum benefits. Since they are not professionals and their knowledge is limited, most end up making little and, in many cases, losing their initial investment.

best investment options for retired person

Best investments

Residential housing :

Without question, the best overall investment for the majority of Americans has been their homes. Residential housing has kept pace with inflation; in addition, it has appreciated on the average approximately 4 percent annually. A simple investment plan to follow is to make the ownership of your home your first investment priority.

Rental properties :

It is often said that the thing you know best you do best. The majority of Americans know how to evaluate rental properties, particularly residential housing. Therefore, they are a logical investment. However, rental properties are not for everybody. Unless you have a strong personality and are willing to evict some nonpaying tenants from time to time, you need to avoid becoming a landlord. However, one of the attractive aspects of rental property is that the initial investment is not excessively large in many areas. In addition, once the property is rented the tenants pay off the mortgage for you.

Mutual funds :

The whole concept of mutual funds is designed to attract the average investor. The pooling of a large number of small investors’ monies to buy a broad diversity of stocks and other securities is a simple way of spreading the risks. Mutual funds are good investments because (1) most allow small incremental investments, (2) they provide professional investment management, and (3) they allow great flexibility through the shifting of funds between a variety of investment assets.

Insurance products :

With the dual benefit of insurance coverage plus higher yields, insurance products such as annuities and whole-life insurance have become viable products for long-term investors.

Company retirement plans :

The investments available through a company retirement plan are the same as those you might choose personally. One major advantage with company-sponsored retirement plans is that usually the funds are tax deferred. Additionally, many companies offer matching funds based on a percentage of what you elect to invest yourself.

Government backed securities :

Government backed investments are considered to be absolute security. Although they may not be the best performers, they are without a doubt the most secure.

Conclusion :

Although we are not qualified to give professional investment advice, we can present information that suggests what have been the worst and best investment options for retired person, based on past performance. We are not suggesting that you invest in the best and avoid the worst. We only propose that you consider these findings (along with prayer and seeking counsel from a trusted investment professional) before you make your investment decisions.

Information for this article was taken from http://www1.cbn.com/

And they had collected from the Larry Burkett’s Investing for the Future, Chapters 5 and 6, ChariotVictor, 1999.