PERFORMANCE – THE MORE YOU MAKE THE MORE YOU RISK!

Posted on December 27, 2010 by science

If you see adverts on the internet from traders reporting to make 80% a month, you have to ask yourself what are they risking to achieve this? Most people will see 80% a month and get greedy and not bother asking any proper questions and instead just fund their account as quickly as they can hoping to see their account balance grow by 80% that month.
The reality is very different, as to make 80% a month the risk would be huge. Your account will be in grave danger of being blown all together! If someone is making 80% a month they could on the flip side just as easily lose 80%! Or perhaps even more. If you lose 80% of your account balance, you have almost no chance of ever recovering your loss, as to make 80% back you have to make much more than this because of the negative compounding affect.
Be realistic with your goals. Some of the top elite traders in the world make 10-20% per month, so if anyone is claiming much more than this, then beware! Its just common sense really, however all common sense seems to go out the window when greed kicks in!
SEGREGATED ACCOUNTS
This was mentioned before in this report – But what does this mean in reality? It is
very important when doing your due diligence that you make sure that the forex
broker has segregated accounts. What this means is that the forex brokers corporate
accounts are segregated from the client accounts. So in the worst case scenario
should the broker go under then the liquidator will come in and still be able to give
you your money back since your money is separated from the company money or
debt.
As stated before ECN/STP forex brokers make money via commissions so they are
cash rich and are highly unlikely to go down. But it is always a good idea to cover all
bases and remove yet another layer of things that could go wrong.

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Start Market Trading

Posted on December 25, 2010 by science

So you know your nest egg can no longer offer you the retirement lifestyle you had hoped for and are joining the fast- swelling ranks of newbie market trading investors, but you are over-whelmed by the sheer scale of investment possibilities out there, or don’t know where to start. The good news is that help is at hand with a new and simple market strategy that even an absolute beginner can learn.
Binary Trading a major player in the financial fixed odds betting industry allows you great returns on your investment, and also allows you to maintain sound money management and thus risk control management of your trading account – vitally important for any new investor wanting to build their portfolio.
If seasoned market professionals are flocking to binary betting because of the benefits of financial fixed odds it offers, there are definitely benefits for you.
So why tap into this hugely growing trend for trading the world markets with binary betting now? Here’s six good reasons:
* A winning combination of low risk tools with relatively high rewards.
* Forget complicated options and derivatives, binary bets offer ease of understanding
* Predictability: They work on the same easy principles of betting on horses; you know the odds at the start; Knowing the outcome of winning or losing before obtaining your position, is what makes financial fixed odds betting particularly easy for those still learning market speculation. Predictability allows for forward planning of building capital and revenues.
* A highly flexible method for anyone trying a few strategies; use these financial fixed odds with: forex trading, commodities, shares and in trading all the world major indices, including: FTSE100, Dow Jones, S&P500, Hang Seng and more.
* Binary trading on the world markets involves tax free earnings, making it worthwhile investing your time finding out more compared to other investments you may consider.
* You can resell your position and take your earnings early, unlike for example, traditional sports betting.
How the binary bet works is as follows: you make a bet in the belief that a particular index will either move up or down from where it is now over a given period. It’s as that simple. This is only one strategy amongst many other choices with this system, however.
As the saying goes in market trading: “The trend is your friend”. Be confident you are making the right investment decision by taking a leaf out of the lucrative investment portfolios of some of our clients in the market trading business and invest in tools and training to learn how to best take control over your financial future, thereby minimising your exposure risk.

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Pros And Cons of Different Types Of Investments

Posted on December 12, 2010 by science

When deciding where to invest your money, you need to always take into account your investment goals and objectives. Different types of investments carry varying degrees of risks and potential return.

CD

A bank CD is a very safe investment. The CD is FDIC insured up to $100,000, so there truly is minimal risk. The only downside is that you cannot withdraw that money in the CD for a specific amount of time or else you’ll receive a penalty. Bank CDs generally only pay up to 5% interest.

Bonds

A bond is essentially a loan you make to a company or a government. Bonds have varying degrees of risk, from essentially risk-free treasuries to junk bonds. The higher the risk of the bond, the higher the return will generally be.

Stocks

Stocks are investments in companies. Depending on the company, the risk of the investment can be high or low. Obviously, buying stock in Johnson and Johnson is a lot less risky than a new internet startup company. In general, the stock market returns on average about 10% a year, though the actual return of any given stock will vary significantly.

Mutual Funds

A mutual fund typically invests in over 100 stocks, so it’s an instant way to diversify your portfolio. However, the mutual fund generally charges a fee, which is about 1% of your assets per year. Because of this fee, most mutual funds do not outperform the market; a monkey blindly picking 100 stocks but not charging you a fee could easily outperform most mutual funds.

Real Estate

Real estate is a popular investment. The most obvious real estate investment you’ll make is when you purchase your home. Your home can go up or down in value when you sell it; it depends on the housing market in your area.

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