Money Matters: Mutual Funds For Long Term Investment Could Mean A Financially Secure Future

Posted by Deb | Investments | Monday 23 September 2013 3:53 pm

Slow and steady wins the race — nowhere is this more significant than when you are considering an investment. While the lure of making a fast buck from certain opportunities in the money markets can mean a financially rewarding investment, there are risks involved when you choose to take the quick route. Making money from any sound investment may take time but the danger of losing what you have put in is greatly reduced in contrast to investments made on a whim.

Pooled Resources

Most serious investors would look into mutual funds for long-term investment for different reasons. For one, a mutual fund may free up individual investors from having to personally choose and monitor a portfolio because the asset management company makes the investments in different securities. For another, a mutual fund is a sound option for building up a long-term cash fund to use for a kid’s education, retirement, or any other particular financial objective. As such, many organizations actually consider a mutual fund as a way to grow pension and trust programs.

So what is a mutual fund? A mutual fund pools the money of individuals and/or institutional investors to create a big asset base. The assets are then managed by full time, registered professionals from an asset management company which is tasked to develop and maintain a diversified portfolio. The profits or losses are then shared by the investors and will be proportionate to the money they invested.

The Appeal of Mutual Funds

Mutual funds, for long term investors, are ideal investments because of the safety delivered in terms of limiting the risk for losses. Mutual funds are regulated by a securities and exchange commission of concerned countries; in India, the SEBI or the Securities and Exchange Board of India is tasked to protect the interest of the investors. In addition to limited risks, mutual funds could also offer good liquidity. This means that investors could convert their investments into cash, which will then be based on the current Net Asset Value (NAV) per share. NAV is basically the market value of a securities scheme.

Of course, even with the expert handling of an asset management company and such promising prospects, the retail investor should still learn as much as one can about mutual funds, including how to further become a successful investor. A potential source could be Parag Parikh’s views on behavioral finance and value investing. Parag Parikh is a fellow at the Harvard Business School and has authored two books, one of which is the bestselling “Value Investing and Behavioral Finance: Insights into Indian Stock Market Realities.” The book delves into the fallacies of the stock market and guides investors on making better informed decisions.

In conclusion, whether you intend to go with the long-term prospects of mutual funds, it pays to know what you are getting into because a market on an upward swing can quickly shift to a downward direction. Arm yourself with the proper knowledge. Read more about mutual funds (and other investment options). And gain better insight into the money markets through experts like Parag Parikh.

About the author: Sarah Miller is a business consultant and a part-time writer. She loves to travel abroad to have a good grasp on various types of businesses. She actually puts her learning through writing. She writes in behalf of http://amc.ppfas.com/.

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How To Become A Leader At eToro

Posted by Deb | Day Trading Journey | Tuesday 3 September 2013 12:37 am

World businesses are going towards recession, and it is natural for people to look for jobs which are also at the minimum level. The only option left for them is to look out for other ways of earning money. But, it is difficult for a person to be master in everything. He has to have proper knowledge of the field where he wants to invest money. Forex through Copy trading is one of the easiest ways that may be employed to earn money without having any experience.

eToro is the website that is an embodiment of help for its clients. With more than one and half million users, it has grown to be one of the best Forex trading and stock indices related business activities. The company is licensed from the regulatory authorities and has links and associations with many Forex and Stock exchange companies of the whole world. Becoming expert, here, is as easy as 1, 2, and 3.

Common man who enters this site for the first time is naturally afraid of investing here. He has to have credentials and these things are provided to him by different people who are successfully running their business transactions at this platform. They will do their all out efforts to ensure that they always win. This is the key point. You have to choose a Guru. You follow his leads and invest just like him. The chances are that you will also win just like him.
Some people have spread rumors in the market against eToro, and they would call it a scam. They would bring fictitious stories in the market to let people believe in what actually never happened. Some competitors of this company are also doing this kind of things.

But, as you can see, the company offers virtual money of $10,000 for every newbie. It means you do not have to invest at all in the beginning. Just use this virtual money without bothering about winning or losing. This will bring perfection in your investment strategy. $10,000 is an enough amount to lose. So, without any obligation, use it and get trained in the field. If, after some time, you feel confident, you may go for actual investment.
Etoro forums and eToro Forex trading options are clearly for those who are not satisfied with their current earning. It is a source of secondary income for these who can invest money and time. This way, they can get everything according to their expectations.

Etoro platform is especially beneficial for people who have been associated with business and commerce. They already have got numerous techniques and know about the terminology that is used in Forex trading. It is, therefore, easier for them to use this platform to earn more and more income through this way. Leader is the one who leads others. By winning for yourself, after gaining experience, you will also become a leader or guru of many other people. This status will bring further benefits, monetarily and respect-wise, for you.

About Author:
There is a complete guidance about etoro copytrader at intellitraders.com. Anyone can access the instruction by visiting the site.

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Three Most Popular Chart Patterns in Forex Trading

Posted by Deb | Forex,Guest Post | Monday 26 August 2013 11:31 pm

There are many set-ups you can use when trading currencies. Many of them may appear like it’s sound and can bring you profits but be warned – there are many set-ups that can only result in a loss.

Forex traders can minimize some of the trial and error involved by using the chart patterns that have been proven by other forex traders as effective and have proven to be profitable set-ups.

Channel Pattern

The channel pattern is one of the most recognizable patterns in forex charts because it looks quite distinctive. It is two parallel trend lines that enclose price. These lines essentially govern the trend. Trades are usually entered that follow the trend – in this case, when the price bounces off one of the trend lines. Your profit target is usually within the domain of the opposite trend line. This set-up and strategy is quite profitable and if you have made the correct assumptions, you can ride the trend as it moves within the range and between the two trend lines. Even when the price penetrates the trend lines, there is still the opportunity to earn since the trader can then trade on the breakouts.

Double Top

A double top is another very recognizable set-up. The double top happens when the price of the currency tests the resistance level on two different occasions and is not able to break the resistance. When this happens the price now breaks and assumes a bearish movement. When a trader sees this pattern on his chart he will commence his trade when the price breaks the neckline and then the trend is joined when the price begins the pullback to the broken neckline. You will have a 73 percent chance of a successful trade using this pattern, which is quite high.

Asymmetric Triangle

The asymmetric triangle can be identified by looking the chart and looking for an asymmetric triangle where there is a trend line and one horizontal level that price will usually be able to penetrate. Trading with an asymmetric triangle pattern is similar to how you trade double tops – trade is entered after the currency price pulls back and goes to the broken horizontal level. But this trade is done with a strict stop loss and only of the risk/reward is 1:5:1. The asymmetric triangle has a success rate of 76%, which is very high.

These three patterns are quite effective in providing forex traders with a useful and tested way of plotting out a strategy and giving signals on when to enter into a trade. These three patterns pass the forex traders text of being profitable patterns regardless of the currency pair used.

About The Author

Mario Singh talks more about forex strategies at his website Askmariosingh.com

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Don’t Stretch Your Stop Loss

Posted by Deb | Day Trading Journey | Saturday 10 August 2013 11:33 pm

I would like to speak today about a habbit I once had, and recently heard about other new traders who are getting into it: I spoke with a new trader, who realized that when his trades go bad, with the market going stronly against him, he can often avoid loosing by stretching his stop-loss. He takes a bigger risk, and when the market seems to find a new critical point he adds new orders from the new critical line, thus “averaging” his losses. In this method he can make even double profits, since if the market goes back to its original possition, he will have more money or contracts invested and make more profit!

I know I have been doing this mistake a lot, and usually it works. When I used to do it, I made very nice profits over a long period of time. So what’s so bad about this, you ask?

Stop-losses are exactly what their name means: A point in which you think the trade has gone bad, and in which you should get out of the position in order to stop your loss. When entering a position, you should calculate exactly where you would like to put your stop-loss, so as not to loose too much. You don’t want to have your stop-losses too tight, otherwise they will catch before the market has a chance to retreat to your desired direction. Place the stop-losses in a position which is sensible by the graphs. If you see the stop-loss is too big for your account, simply do not enter this position. Wait for a better chance.

Putting a tight stop-loss and then stretching it will make you risk too much money. In most cases, by averaging out – entering again in the next critical point – you will be able to exit the position with a nice profit. But then, one day, the market will surely continue to go against you: It will continue breaking the subsequent critical lines, and if you go on “averaging”, you will find out you have wiped out your account.

Stretching your stop-losses is a bad practice. Lazy traders who do not want to calculate the right place for the stop-loss will find it appealing, but the big boom is sure too come. Don’t trade without good stop-losses.

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SEC and CFTC Binary Options Alert

Posted by Deb | Binary Options,Guest Post | Sunday 21 July 2013 10:46 pm

The fact is simple; trading binary options is profitable and risky. You know your exposure to loss on the on-set of the trade. This has given binary option trading a boost in its popularity. The simplicity of entering binary options trades and making money out of it has provided many people a respite from grueling economic times.

The binary options market has expanded so much in the recent past years. People from an average economy class to big organizations are involved in trading binary options. However, according to a latest SEC and CFTC binary options alert, many innocent investors have become a victim of corrupt business practices. This alert has detailed every possible type of fraud that a newbie investor can become a victim of; such as a platform that is designed, to run against you and providing you wrong signals, refusal or delay in crediting the profits that you make on your trades and sometimes even identity theft.

The binary options alert from SEC and CFTC also highlights certain regulatory requirements that some platforms are failing to comply with. In the alert, SEC states that because of non-compliance with registration requirements such as registering as ‘Futures Commission Merchant’ or ‘Registered Broker-dealers’, entering a trade becomes illegal. This could result in a legal action against your broker, endangering your trades.

The alert also highlights the importance of carefully researching and investigating the platform that you are about to choose. In this alert, investors have been provided with tips on how to ascertain that their chosen platform is clean. First off, you should check if the binary options trading platform has registered with the SEC. Secondly check if the platform has registered itself as an exchange. Thirdly, check if the platform is designated as a contract market. The (SEC and CFTC) alert provides investors with sources from which you can ascertain the required information. The sources are FINRA BrokerCheck, BASIC Search, CFTC website, EDGAR and SEC website.

You should be very careful with whom you place your hard earned money and sensitive information. Nobody wants his credit card information get stolen and maliciously used. With this alert at hand, you now know what exact legal notorieties you should be looking for while investigating a particular options company and its platform. The binary options market is relatively a new phenomenon, and regulators will take time to make trading with them securer. Until that time, you should keep yourself updated with such binary options alerts.

About Author:

Intellitraders.com is a free online trading community to help traders learn and trade binary options with best regulated brokers.

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How To Control Your Risks In Binary Options Trading

Posted by Deb | Binary Options,Guest Post | Monday 8 July 2013 8:45 pm

You can get plenty of advice on making investments. But, arguably, the best one has to come from the world’s most successful investor, Warren Buffet: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” It is pretty general but it is the kind of statement you want to be reminded of every time you are itching to do a risky trade. When you are venturing into binary options, know that there are risks to be had if you are not well prepared for the market.

 

Growing GraphWhen you are just starting out, it pays to invest first in knowledge before you actually get to jump into trading. Any successful investor knows that you should master the basics. Learn the lingo or relevant terminologies, as in “put” (when you presume the value of an asset will be lower than when it was bought) and “call” (when you presume the value of an asset will be higher than when it was bought). Learn about trading platforms and which ones will be easy to use and come with comprehensive features. Learn about the different trading strategies. Mastering the basics will let you maximize your win rates and minimize your losses.

 

In addition to learning the basics in binary options trading, you should try to practice your newfound knowledge by opening a demo account. Demo accounts are ideal for beginner traders because they can be great training tools. You receive practice funds, which are not real money, and you get to participate in the market, applying the strategies you have learned for a set period. When you open a demo account, make sure that you do not have to pay a deposit, as most brokers will offer them for free. Also, you need to clarify whether the broker you are opening a demo account with will obligate you to sign up for a live account.

 

Trading on MoneyFinally, get trade analysis from reliable and credible sources. Trading analyses can help you place your trades on any asset — from stocks to indices —to favorable outcomes. You will want to go with sources that combine technical with fundamental analysis in order to come up with sound projections on certain assets. You also want to go with sources that rely on actual analysts, as opposed to robots.

 

Any financial investment can be filled with risks. The key is to control those risks so that you do not end up losing money in the process. With binary options, remember to master the basics. Try to get a practice run with a demo account. And obtain simple yet good analysis from good sources.

 

Author Bio

Sarah Miller – a freelance writer and blogger who is currently writing in behalf of http://www.binaryoptionsexperts.com.  She is a business consultant by profession and a content creator, writer and blogger by passion. Having been exposed to the different aspects and faces of businesses, she frequently does research on useful information regarding the different methods and techniques to further improve business marketing, sales, performance and shares her passion of business management through blog/content writing.


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How to Get Over Your Fear of Entering the Stock Market

Posted by Deb | Day Trading Journey | Tuesday 14 May 2013 12:45 am


Trading in the stock market is a great way to grow your fortune — or to lose it all. It’s the first part that gets people really excited, and it’s the second part that makes them terrified to ever try at all. Learning how to trade, understanding how to read the symbols, researching the companies to make your choices, and navigating all the technical jargon can make the whole process very confusing and very intimidating.

It is important to find ways to get through it so that you can take full advantage of the potential that the stock market offers. Here are a few tips for how you can get over your fear of entering the stock market so that you can start pursuing your financial freedom:

Learn Everything You Can

Knowing is half the battle. Most people feel overwhelmed or intimidated by investing in the stock market because there is so much that they don’t yet know. You can feel more confident by simply doing your research. Learn the ins and outs of the stock market: how it works, how to read charts, and how to buy and sell. Then research companies that you may be interested in for investing.

Read as much as you can. Talk to friends, family and colleagues who invest to get some pointers (though you should avoid any advice about stock picks). Frequent blogs and authoritative websites. The more you learn, the better choices you will be able to make and the more comfortable you will feel.

Practice

There are many websites and software packages that will allow you to practice trades without spending any real money. You can simulate actual trading without having to take any risks. The more you practice, the more you will learn and the more comfortable you will feel. Look for programs that will allow you to use real-time market information for the most impact.

Start Small

You don’t have to plunk down your whole nest egg to start trading on the stock market. You can start small to get your feet wet and start to feel more comfortable. Invest as little as $100 or as much as you feel comfortable. If you lose the money, it won’t be a big loss, so you can feel more relaxed about trading.

Even if you lose your money, you’ll learn from your mistakes. The more you do, the more you will learn and the more comfortable you will feel.

Try Out Dividend Stocks

The stock market is notoriously volatile. However, there are some investments that are more “safe” than others. Dividend stocks are one such safer investment. These are usually investments with older companies and they offer regular payouts. They offer you some protection in your investing choices, so they can help you to feel more comfortable when you are just starting out.

There’s no need to feel intimidated by investing in the stock market. You can use these strategies to help you feel more comfortable so that you can start to invest and tap into your potential to increase your income or maybe even find financial freedom.

How did you get over your initial fears of investing in the stock market? Tell us about it in the comments!

The Author:

Kelly Opferman is a seasoned writer with an educational background including finance, teaching, and economics. She is launching a new app at Auto Loan Calculator.org.


 

 

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