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Monday, April 20, 2009

Investments: Managing its Risks

By Mara Hernandez-Capili

Any investment carries with it a certain amount of risks. Risks are completely unavoidable and could get the best out of any investor (especially the beginners) if not managed and handled properly. Risks should not be feared rather it should be faced with a knowing attitude and courage. Risks should not stop anyone from investing and ultimately- for achieving financial freedom.

Trading Stocks involves risks on different facors. There is no guarantee if you will have a capital gain since the market is always fluctuating. The larger the amount you traded, the higher the risks of losing that investment. That is the reason why most people do not trade huge stocks when theyre just beginning and opt for smaller/ cheaper ones.

There are known ways on how to manage risks in investments, and those we will enumerate now. First is to find an investment portfolio with a value you are comfortable with. The reason behind is so that if ever this investment failed, you will never be left in despair. Also, do not put all your eggs in one basket, as you have the chances of losing all of it. It is unwise either to invest small amounts on many investment vehicles, because small amounts are equal to little gains. Try to focus your investments to a minimum, putting an ample amount of value in it. In this way, you can enjoy valuable capital gains once it became agreeable.

Third way to manage risks in investing is to start investing in your early years. This way, you can have plenty of time to recover from your losses if ever there are any. Never wait until you are very old to invest and putting all of your lifes savings at that as well, you may predict what may happen. There are special cases though of people who started investing (or putting up a business) who succeeded like Col. Sanders, founder of Kentucky Fried Chicken.

These are just some of the ways on how to manage risks. Remember that a risk is worth taking if you have a dream that goes with it. - 23199

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Auto Forex Trading " Is It Just A Scam?

By Mike Chartman

First things first lets start by defining the term foreign exhcnage trading so you can have a clear view on what we will be talking about later. The forex market is whereby money trading takes place. It is where banks and other financial places allow transaction of foreign currency

How is forex trading done? Here one party purchases a certain amount of currency in exchange of another quantity. Exchange of currencies has been taking place since the 1960s. Each country or banking institution offers its own rates on trading forex. Forex is a liquid market and therefore it changes in value and quantity. Different countries trade with each other through governments, banks and other financial institutions.

Turnovers recorded are gradually growing. Making use of auto forex is one of the largest, contributors to the economic growth and development. The values of auto forex are in that the forex market allows room for trade and investments. US Dollar, Sterling Pound, Deutschmark, Euro and Yen are some of the international currencies used for trade.

Auto forex trading is also known as auto execution. One can make the best profits out of selling currency. Customers have been offered auto forex trading automatically so that they can. To trade with the auto forex an individual has to first identify with the forex brokers and know which ones offer the service automatically

API is a techno-speak acronym used to allow users control their transactions and processes while trading. Auto trading is done online and works with only with software that has a forex specification. There are different types of software that can be used in forex trading. Examples of these software are Fabre Factor which a bit on the expensive side, or the Trade Bullet, which is a bit cheaper compared to the former. - 23199

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Global Macro Trading and Asset Class Diversification

By Kirk Gibson

There are ten asset classes that are regularly traded by global macro investors. Real estate, venture capital, equities, currencies, commodities, cash, bonds, collectibles, statistical arbitrage, and private equity. While a few of these are tough for individual investors to get into, the majority are easily accessible.

Cash is considered the asset class of last resort. You go to cash when you don't have anywhere else to put your money. Remember that we want great risk to reward situations, so when we can't find one we sit out in cash.

Stocks are next and they are also probably the most followed asset class. We have all heard of the Dow Jones and the NASDAQ. While stocks are a great and exciting asset class they aren't the only game in town.

Bonds also known as fixed income are a very important part of the macro traders arsenal. You can trade domestic government bonds, corporate bonds, foreign government bonds, and foreign corporate bonds. There is a lot of opportunity here and you would be remiss not to look at them.

Commodities are another hot spot in the macro arsenal of asset classes. While the term is broad the trading is even broader as you can trade energy, agricultural products, livestock, metals, and even precious metals. If you can pick it up or eat it you can trade it. This is a good thing as it gives us more potential trade opportunities.

Finally we get to currencies. This is actually the largest asset class out there and gives some of the best trading opportunities. If you have an opinion on any country you can buy or short the currency and try and make money.

Finally we have venture capital, private equity, real estate, and collectibles. These assets are tradeable with one major caveat, and that is that they are not very liquid. Whereas you can unwind a billion dollar currency trade in minutes, it can take days and weeks to get out of real estate and private equity investments. - 23199

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CFD Trading Rules- Ensure Your Success

By CFDRULES

So you have been thinking about starting to trade Contracts For Difference (CFD) trading, well before you get started you need some rules and guidelines to help you become a successful trader. The other question you need to ask yourself is do you really want this? What are the reasons that you have decided to trade CFD's? If you write this down and continually look at these reasons, you will increase your chances of becoming a successful trader.

At the CFD FX REPORT we are big believers in these principles and we make sure that we are continually developing our members on getting better traders. If you are looking for a great Best CFD Brokerthat can help you implement these rules then please feel free to contact us

The 30 Rules to Follow to CFD Trading Success:

1. You should never over-trade- Don't trade for trades sake, you will lose otherwise 2. Make sure that you never risk more than 10% of your trading capital in a single trade, protecting your capital is very important. There will be more trade opportunities 3. Ensure that you never trade without careful stops and use trailing stops 4. Don't cancel a stop-loss after setting the trade- other than get out 5. Never average down on a suffering trade 6. When you get into a profit never let it run into a loss. 7. Never buy or sell just because the price is low or high, as what is high and low 8. Never try to think tops or bottoms- otherwise go to the casino and pick black or red 9. You should never limit a profiting trade, instead move your stops to guarantee a profit- ideal trading is as soon as you get into a good profit at aleast ensure a break even 10. You should never close a position toget out of the marketplace because you have lost patience or get in because you are anxious from waiting. 11. Please never hedge a losing position. 12. Never change your position or close a trade without a great reason. 13. Never follow a blind man's advice, everyone has trading certainties. Use systematically approach 14. Make sure that you never enter a trade if you are unsure of the trend. Never buck a trend. Remember the rule TREND IS YOUR FRIEND 15. Try to avoid scalping for little profits and taking large losses if you scalp you need tight stops 16. Avoid trading after long periods of failure- take a break, re look at your goals. 17. If you have a great run don't keep raising your trade size, otherwise you will blow yourself up. Remember great runs will come to an end, and sometimes great runs turn into bad runs. 18. Avoid getting in misguided or getting in right and out wrong, making a big mistake. 19. Always identify firm support/resistance levels. 20. Always lock in a profit at predetermined increments on profiting trades. 21. EVERY trade must have stop losses 22. Always distribute your risk equally among different markets. 23. Don't be a one trick pony, make money from both sides of the marketplace 24. Always reduce trading after the first loss; never increase, it is ideal if you use equal trade sizes, do not double up and try and get your money back. 25. Always cut your losses short and let your profits run- remember learning to take a loss is the first step to trading success. 26. When in doubt, get out. Do not get in when in doubt- back yourself if it doesn't feel right don't do it. Follow your gut sometimes as most of the time it is right. 27. Only trade active markets- illiquid markets will leave you thirsty- remember small markets are easy to get in, but remember you always have to get out. This is why CFD trading is so popular. 28. Only pyramid trades that have a firm trend and should be accomplished once the price has crossed support/resistance. 29. Profits from a successful trade should be saved for future trade security deposits or put somewhere else, spread the risk. 30. Make sure you follow your rules

Extra Trading Tools:

If you are short term and trade goes bad, cut it, don't become a long term trader, other than you buying and hoping, not even buying and holding. Have a trading strategy before entering the market. Know before the trade is executed where you will take profits/loss.

Understand why a win/loss occurred and how you could of made the trade better. Consistency is the key to trading success, without it you have nothing. Your assessment is the only care, do not let outside factors affect the way you trade. Not everyone can be a trader, deem yourself worthy if given this opportunity. Most importantly have fun and stick to your rules and hopefully by following these rules they will increase your chances to becoming a successful Best CFD Broker

I hope this helps you achieve your goals. Happy Trading - 23199

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Forex Trading Robots, Fast And Accurate

By John Eather

Robot details: All that a forex trading robot really is, is a program setup and by major forex market player. The robot merely checks for short-term investments in foreign currency with the best returns and least risk for you, the investor. Portfolio diversification can be done by using the robot in conjunction with other forex managed accounts.

Trade execution: The trading process is kicked off by the robot analysing markets by means all and any numbers and chart information available. Once the trends are identified, a transaction will be entered speedily and accurately without any emotional influence or guessing. However do not think that robots are your key to successful instant million and billion currency trading. Market behaviour is primarily determined by fickle and unpredictable human behaviour and not the logical numbers and mathematical "thinking" employed by the robot.

Two thumbs up: There are great benefits to the robot for example multiple strategies and markets can be traded on at a time. General risks are significantly reduced. You will never miss a trade again and execution will occur fast and accurate. The robots save time, money and are super user friendly.

Who will benefit?: Forex and intro brokers, managed account investors, ex traders, existing traders craving capital diversification, traders afraid to manage own capital and institutions seeking other investment options.

Advantages: Advantages are constant operation and monitoring so you don't have to keep tabs on the accounts day and night, capital diversifications tools making options other than stocks, mutual funds, real estate and bonds available to investors as well as a very low minimum investment of approximately US Dollars 1000.00 for the program.

Program details: Short-terms as well as advanced trading program are used by the system to check for the most profitable currency trade opportunities using mathematical criterion and formulas.

Possible performance: Possible returns of 30% on US Dollars 10,000.00 per month has been reported. - 23199

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