Investments
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Definition:
In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money.
We recommend the AVAfx trading platform. Position correctly on either an upward or downturn market and eitherway, you benefit from the market. Robert Kiyosaki, the author of Rich Dad Poor Dad aimed for a compelling statement when he advised "not to save money". He meant do not let saved money sleep. We completely agree on this philisophy and when you do invest, the first thing to do is be informed and be educatred. You do not really need to go to school or get years of training before kicking off to invest. All you need is a good understanding of the risks and opportunities in a given market that you will use as a trading instrument. Foreign exchanges, metals, wheat, crude oil, are all sound trading instrument and are completely different to each other driven by unique fundamentals and factors.
WHERE TO BEGIN
As you
learn to invest, the best experience is just to go ahead with it. There are a number of trading platforms out there but we have chosen AVAfx because out of our research, AVAfx had the most integrity. Try calling them and someone would answer. Of course, be conscious of the time of your call. Other than that, a number of our team uses AVAfx as their personal trading platform. All have had positive experience.The link to AVAfx is found below this page for your reference.
As you begin, start off with a demo account. Here, try and make money to see if you have a good fundamental and technical understanding. In "fundamentals", you consider the factors that move the markets like economy, politics, war, supply, demand, etc. As you read on related information, soon you will know which one affects the other and ultimately, your investment. In saying "technical", we meant looking at the pattern of the numbers and graph used on your trading window. Bollinger and Fibonacci techniques are a few known techniques but a number of traders take position dismissing such techniques but are aware merely as indicators.
GROWING YOUR INVESTMENT
Are you going to take positions over a trend? Over a swing? Or over the day? In saying trend, we meant taking a long term position such as the US Dollar. Are there factors that you think will strengthen the US Dollar over the next 3 weeks? If yes, then taking position over the US Dollar will bring much return when taken on early. If you think that the US Dollar will take a dipping over a projected time, then open a sell position and buy later on.
In investments, the question is not if you are going to make money but when. You are guaranteed to make money. Just take position and close at the right time.
MISTAKES THAT WILL BRING YOU DOWN
1. Using Too Much Leverage
One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.
2. Over Trading
Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.
3. Picking Tops and Bottoms
Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.
4. Trading just to Trade
When things aren't right when you sit in fornt of your PC, then don't trade at that moment. If it drags a day, it's just fine. You can always trade another day when things pieace together.
5. Lost Tading
Never loss your grip when losing over a trade, losing is all part of the game. Thus, it is wise not to put all you eggs in one basket. Spread your risk over a couple of options, a couple of days, a couple of positions. Spreading your risk softens a loss and preserves the rest of the portion. The highest we've gone on a trade is 20% of usable margin in our account and we were absoutely sure the market was in favor of our position.
Never try to recover your loses. Each trade is unique and should be taken with a certain degree of dignity. In plain words,respect your trade/position.
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