Investor Diversification - An Individual Decision For The Small Investor

By Michael Swanson

Probably everyone can identify with the old proverb "don't put all your eggs in one basket". We all know is makes sense not to encourage such risk. The same thoughts can be applied to our investment portfolios - no one likes to think they will lose money. We are told to diversify our risk, but is investor diversification the best plan for everyone?

Depending where you are in your investment life your acceptance of risk, known as your risk profile, will change. As a young parent your risk level may be low - it is hard enough to save the money, you can't afford to lose it. As your move into your main earnings years you are a little more risk attuned. You have the ability to weather any particular losses and time to make up those losses. When you have reached retirement and are living off those investments your risk profile may be low again. In all those stages the level of portfolio diversification is likely to be different.

Diversification, by its very nature, means that while our risks are minimized our exposure to profits can also be minimized. The money we have tied up in fixed interest is not available to take advantage of a red hot stock picks or a booming property market.

Another problem for the small investor is the smaller pool of funds he has to play with. It would be great to have a portfolio of property, a wide range of stocks and bonds, bank deposits and investment art. But to buy into all of these areas the small investor risks having such tiny investments in each that it isn't worth the effort.

There are many instances where specializing have paid off, look at Henry Ford or Bill Gates, neither of these diversified their markets. But there are just as many examples of people who have not diversified and have been burnt.

In the end each small investor has to assess his risk profile and manage his investor diversification appropriately. - 23221

About the Author:

For more on the stock market subscribe to our freestock trading strategies weekly newsletter.

Practicing In The Forex Trading

By Jo Nash

So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.

To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.

You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.

The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets. - 23221

About the Author:

Learn How to make your forex trading easier and more profitable with Forex Automatic Trading Robots, or by learning allthe strategies and tricks of forex trading from Forex Trading Courses

Low Interest On CD's Is Bad For Older People

By Pete Veslick

Anyone who has money to invest is hurt by low interest rates. If you want to buy things on credit such as a car you might like the interest rates where they are now but people who have money sitting around are not happy. Right now the saying time is money does not really apply to bank cds and other investments where you make money by lending it to banks.

The people that are hurt by low interest rates are those people that like to invest in bank certificate of deposits (CDs) and other investment that are guaranteed by the government. Government bonds would also fall into that category. Seniors often have their money in this type of safe investment vehicle because they need to be guaranteed that they will not lose the money. In exchange for the low risk, they are willing to make less that they might be able to in the stock market. However, with rates so low right now, they are making practically nothing on their money.

If you are looking for the best CD interest rates, you need to look in different places than your local bank. Right now many people are trying to find the absolute best rates they can find and they will have to search on the Internet to find them. No longer can you just look in your city and expect to find the best rate. A nationwide search is necessary to find the best CD and money market rates and luckily the computer and Internet allows you to do that.

Now though, you first step might be to hop online and start searching. You will have access to hundreds of banks and financial institutions any of which might be offering the highest yields. You can transfer the money electronically to any bank and so it matters not where the bank is physically located. Some people will not feel comfortable with doing this and remain with their local banks and that is understandable. However, to truly find the best CD rates, you need to be looking online.

One thing to take note of is that if you have a maturing bank CD, you will rarely get the best rate they offer by just letting it automatically roll over. For some reason that the banks will never disclose, you have to physically go into a bank and request the best rate on an expiring CD that you want to roll over. You will probably have to close out your CD and then open a completely new one to accomplish this. This is a minor inconvenience but one that you have live with if you want to get the best CD rates. - 23221

About the Author:

Do you want to learn about getting the best no risk CD rates? Please go to my website Best CD Rates to learn more.

A Short Forex Training on Risk Management

By Bart Icles

Any form of trading poses different kinds of risks. In the foreign exchange market, this stands quite true. There have already been lots of investors who have lost large sums of money in the hopes of generating profits in the forex market. Online brokers always try to sound optimistic but a smart trader understands that realistically, there is no easy way to make money in the currency market. A forex training on risk management can help you a lot in ensuring that you will not lose all your assets in just one trading go.

It helps to invest in your forex education before you start trading in the currency market and to continue doing so while you are already actively trading. A simple forex training or tutorial can already do so much in keeping you well informed on the different factors that can affect your trading position. A deficiency in market knowledge often marks the downfall of many investors and is one of the primary reasons why they lose large sums of their money. This also spells failure for new forex traders who do not take time to learn more about the different market forces that drive the currency rates.

Another important factor in managing risks in trading is having a forex broker. While you might learn from many forex tutorials that it is relatively easy to enter the forex market - all you need is a computer and an internet connection - it actually takes more than these two elements for you to start trading.

The tricky part comes in when you start looking for a forex dealer or forex broker to whom you will open an account with. It is important that you choose your forex broker well because forex brokers spell much of your trading success. This is also important in keeping you from taking unnecessary risks. To be safe, you must do some research about your forex broker and only deal with one who is regulated.

So what do these forex brokers or dealers really do? More than just helping you manage your account, they also do much in maintaining your risk profile. When participating in the forex trading market, investors must have risk profiles that are solid as rock. See to it that your forex broker has pre arranged agreements with you about your risk profile or the amount of invested capital you are willing to risk. - 23221

About the Author:

Forex and tricks are powerful when coupled with a desire to learn and a drive to become a great trader. Learning for forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

How to Win With Forex Training

By Jacob Tremblay

Forex trading is just like anything else in life - to get good at it, all you need is practice. Of course, sometimes you don't have the time (or the money!) to get the practice you need. In that case, the only thing to do is to get some proper training. If you can find someone to teach you the system, or a good quality forex robot with lots of information and advice, you can ramp up your skills in an incredible amount of time.

Today's internet is filled with helpful articles, the library is stuffed with books, and there are so many courses on offer from so many places that it can be impossible to know where to start. Too many people get swamped by the sheer volume of information, and end up with so many conflicting ideas and suggestions they become completely paralyzed, not knowing where to start. The solution to this, if you really want to succeed, is something I call "information overload".

Information Overload is the process of completely immersing yourself in the data. Studying it constantly, and making it so much a part of your life that when it comes time to use your knowledge, you almost instinctively know what to do. I won't lie to you, this a hard path - but the rewards are worth it. If you just want quick, simple success, you can get a for robot, which will do most of the work for you. And yes, they do work, but for myself I prefer to be the master of my craft - not just someone using a tool.

The first thing you need to do is to find an initial information overload source. So, head out to the public library, and ask them for the Forex training books. Once you've found them, pick one randomly. And I mean completely randomly - just close your eyes and grab one, any one. Doesn't matter.

Great! You've picked out a book, and now you just have to read it. This trick here, is to read it fast - keep it with you all the time, and every spare moment (on your break, in a line, during commercials on tv...) you read it. Even just a little bit, even just a paragraph or two, it all counts. And, most importantly, read it just before you fall asleep - several pages, at least. This is essential.

The reason for this is that whatever you are thinking about as you fall asleep, is what your unconscious mind thinks is important to you. The purpose of all this reading is not to try and learn forex, just to get your brain accustomed to constantly having Forex-like information going through it. So keep reading, and don't worry if there's something you don't get - just ignore it and keep going, until you finish the book.

When you finish that book, you can just go back and pick a new one and do it again. Keep going, until you've got enough info in there. You'll find that, once you've passed enough information through your brain, it starts getting overloaded, and things start coming back out. You'll find your mind wanders back to the things you've read, and information you weren't consciously aware of becomes available - maybe you see a chart, and suddenly realize you know what it all means. Don't worry, this is completely normal - you're doing great.

The second stage of information overload, is directed reading. Now you've filled your brain with knowledge, it's time to start learning. Go back to the library, and this time take a look at the books. You may be surprised at how well you know them, and can understand what they're saying. At this point, just let your instinct guide you - don't listen to anyone else. Your subconscious is full of Forex knowledge, and it knows what you need to learn.

Now you've overloaded yourself with Forex information, studying it suddenly becomes incredibly easy. As you read through the book, carefully, you'll probably experience a sense of deja-vu, as all the things you didn't know you'd learned fall into place. Take care this time, and really study the material, and you'll be astounded at how fast you can grasp it.

So you now have all the tools you need to become a master Forex trader. All that's lacking is practice - for that, I suggest you pick up a Forex software package. You need to get experience somehow, and most software packages will give you the tools you need to really come to grips with the material. In the end of course, the human mind is an amazing thing - and you have everything you need right there.

Best of luck to you! - 23221

About the Author:

Jacob Tremblay is an experienced stock market trader, who is now working on forex trading. Click here to check out his site, where he provides forex trading reviews of some of the leading systems.