How Do I Decide Which Investment Strategy Is Right For Me?

By Amy R. Graham

If you are thinking about starting to invest in stocks, there are some questions you should ask yourself to help you decide what investment strategy or style you should use. Before investing, you should ask yourself, 'How comfortable am I with risk?' and 'Which investment strategy is right for me?'

Well, those are all good questions, but we are going to focus on the last one for now. There are many investment strategies, and there is some debate over which one is best. What it really comes down to is which investment strategy fits your personality best.

Whenever you make an investment, whether it is in real estate, the stock market or anywhere else, there is a level of risk. There is a very real chance that you could lose all of your money, no matter where you invest it. However, some investments are much less risky than others. For example, bonds are usually considered to be very safe. Unfortunately, the safer investments often don't provide the type of return most people are looking for.

While there are always a few people who are really scared of losing their money and a few who are comfortable with the riskiest investments, most people fall somewhere in between. They want something that is reasonably safe but still has a chance of making a decent amount of profit. One way to accomplish this is to purchase a mutual fund, which decreases the risk by investing in a lot of different companies. Mutual funds themselves come in many different varieties, from extremely low-risk bond funds to high-risk aggressive growth funds.

Of course, if the entire stock market drops, your portfolio is going to decrease in value no matter where you invest. In that case, you need to remember to hang in there and not panic because the stock market has never yet failed to recover. If you wait it out, there's a good chance that when the market recovers you will end up earning a profit on your mutual fund investment.

Investments that are considered safe include government bonds, such as municipal bonds, and CDs that you can get from your bank. Unfortunately, these types of investments usually don't perform well. To increase your chances of making a good return on your investment, you may want to consider a higher-risk investment such as a growth mutual fund.

Although you are always taking a chance when you invest in the stock market, overall the US stock market has always done well over time. The trick is choosing individual stocks or mutual funds that are likely to do well. If you do your research before investing and stick with investments that fit with your investment personality, you can increase your chances of doing well in the stock market. - 23208

About the Author:

Are you searching for a good investment strategy that is good for you? Before you spend your time searching for a good strategy, check out BeforeYouInvest.com's beginners guide to investing before you do anything else. BeforeYouInvest.com reviews everything from common investment strategies to the best online investing tools so take a look.

Best Penny Stocks

By Bo Miller

Micro cap stocks make for some very interesting conversation, some investors love them while others are not so sure about them. Usually those who have made large profits love them while those who have lost money do not really care for them.

So with some investors winning and some losing how do you know when and how to invest in these so called "penny stocks" to make some some good profits. Well there are several things that profitable investors are doing to cash in on these types of investments. By the end of this article you too will know what is needed to make good money trading penny stocks.

Well first of all you have to find a company that is on the verge of a major break out. Usually companies like this will have experienced a steady increase in the profits for the last few quarters. They may have developed a cutting edge technology or product that the world cannot live without. The management of this company must be strong and able to handle the necessary duties to grow this company and make money for all the investors involved.

Many companies will provide online interviews of the CEO's, this is a great tool and helps investors to better understand the goals and plans of the company. Many investors think wrong about these types of companies. One common thing said about these companies is " if they are so great why are they so cheap" however most companies started out small. Think about dell and apple computers, apple was started from a garage and look how large the company is today! so never underestimate the power of the small business.

Almost all successful penny stock traders follow the tips listed above. But many do not have the time to do all the research that is needed to pick a big winner. The web is filled with great newsletters that are FREE and it is a great idea to sign up for several. You can make great money trading penny stocks but you must have the inside scoop! - 23208

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Forex Tutorial That Works

By Anthony McDonald

Today it seems that a forex tutorial with good information is hard to come by. Taking a look at free guides there was one thing that I saw in common with them. They seemed to have a lot of information that was ripped off the internet that anyone could easily look up in a search engine. If you are a new trader, do not rely on these.

When searching for a food forex tutorial, there are many things that you should look at before picking out a certain one. Is the guide congruent with its information or facts? Is there proper grammar and spelling throughout? Do you get the impression that the guide was thrown together in a hurry? Is the asking price of the product seem to high for the level of professionalism that is presented?

What I have found common in a free Forex tutorial is that they claim to offer training that will instantly make you a success. For the most part the free guides just had a bunch of simple information and talked about success, they did not train it. When it comes to tips that can change your Forex for the better, they can never be found in one of these free guides. You just cannot get the golden tips out of free guides!

When it comes to a paid forex tutorial, it seemed like many of them were by far to high priced for the information that they contained. After sorting through many paid guides and putting them to the test there were some that had good tips in them. Few to none had a proper trading structure taught in them. There was one thing that stood out from all the rest, this was different.

This forex tutorial was truly different from the rest. It cost money of course, but the product is worth five time the price for the pure results it gets. There just is no other tutorial or guide that can compare to this. Within the first week, I made back the cost of the product and made a massive profit! This one method truly is the way of the big traders, it is no wonder it is kept hidden! - 23208

About the Author:

If your trades aren't raking the dollar you need, you need to check out the "Big Wigs" Forex Tutorial and dominating method. Stop letting the "Big Wigs" feed you nonsense, take action and find out their untold secrets in their Forex Tutorial today!

All You Need To Know In A Currency Trading Tutorial

By Dawn Fennel

Trading on the Forex can be a daunting task. The following currency trading tutorial will introduce some of the areas you will need to understand in order to trade successfully in this market. To become a profitable trader, you must build your knowledge constantly.

The first thing you will do once you are prepared to actually start trading is open an account with a broker. You will have to make an initial deposit based on your planned trading level. You will borrow a large portion of the funds you will trade with from your broker. The use of leverage will increase your personal risk, because loses can be larger than your contributed capital. Using stop-loss-orders is a good way to limit your potential losses.

Currencies will always trade in pairs. One currency is matched up against another. The EUR/USD(the euro and dollar)trade as a pair. The GBP/USD(the pound and dollar) are paired. The USD/JPY(dollar and yen) trade as a pair and the USD/CHF(dollar and Swiss franc) are matched together.

The first currency in the pair is the base currency. The second one is the quote currency. The base currency is purchased with the quote currency. If the price is listed as 1.63 USD/CHF, it means that one dollar can be purchased for 1.63 francs. Another example is 1.46 EUR/USD, which means that one euro can be purchased for $1.46.

You will be able to purchase a currency at the asking price. For example to buy the EUR/USD you may pay $1.49. If you wanted to sell that same currency you may only receive $1.45 for each euro. The difference between the two prices is what the broker charges as a commission to execute the transaction.

Making a profit in the currency trading market may seem fairly simple. You just buy the currency that you believe is going to move higher and sell the currency that you think is going to decline. If you think that because of recent political instability in the U.S. the dollar will drop in comparison to other currencies, you may wish to sell the USD/JPY and hope to buy the dollar back in the next month at a lower USD/JPY exchange rate. However, if you believe the political scene in the U.S. is settling down you may wish to buy the USD/JPY and sell it next month when the dollar moves higher against the yen.

Although using this currency trading tutorial can guide you in becoming a good trader there are other factors that you need to understand to be a success in the market. Understanding how to use technical analysis is absolutely necessary. It is essential because all your competition uses it to help them make decisions, so you must also study technical analysis. Become an expert. Technical analysis can help you set stop-loss orders so that your risk is limited. It can help you see trends that are developing which can help you decide on your trading strategies. There are many books and classes that teach traders to become experts in this area. When you use fundamental analysis in combination with technical analysis, you will be much more likely to make money from trading. Fundamental analysis mainly addresses conditions in the market that may cause prices to change.

As mentioned earlier in this currency trading tutorial, we simply touched on the major factors that go into becoming a successful currency trader. Continuing you research and study is essential. There are many experienced traders in the market so make sure you are prepared before you start. - 23208

About the Author:

Be SURE to read up on a currency trading tutorial before you find the best broker forex traders!

Multiple Timeframe Trading

By Ahmad Hassam

Multiple time frame trading is a trading method used extensively by forex traders. It involves the use of multiple timeframes. In this method, a trader first looks at a longer timeframe like a monthly or weekly chart to determine the overall direction of the trend.

Professional traders always use multiple timeframes. Multiple timeframe trading means using three or more timeframes in your trading. You as a trader decide to drill down to a shorter timeframe like the daily or 4 hourly chart to look for dips or pullbacks in the trend if you find a decisive long term trend on this timeframe.

First identify the main trend on the long term chart. A minor downward retracement would represent a potentially high probability entry to get in the trend at a reasonably good price in a strong long term uptrend. Finally the trader may drill down to an even shorter timeframe like the 30 minutes or 15 minutes charts to pinpoint and time the exact entry.

Suppose, you are interested in trading multiple timeframes! You identify the retracement in an uptrend on a 4 hourly chart. What you need to do is to wait for a resistance breakout on a 15 minute chart in the direction of the trend before entering into a long position.

Multiple timeframe trading can be very powerful if used correctly. What make multiple timeframe trading so powerful is that it puts the traders on the right side of the market while also identifying the highest probability entries available.

Have you heard of the triple screen trading method? One of the multiple timeframe trading strategies is known as Triple Screen. A triple screen resolves the contradiction between the technical indicators and timeframes. The first screen is the long term charts and strategic decisions on long term charts are made using the trend following indicators.

The second screen is used to make technical decisions about entries and exits using oscillators. The second screen is the intermediate charts. The third screen can be an intermediate chart or a short term chart. The third screen is used to place buy and sell orders.

Begin by looking at your favorite chart, the one that you use the most. Call it intermediate chart. Multiply its length by five to find the long term chart. Now use trend following indicators on the long term charts.

Staying out of the trade is a legitimate position. Use these trend following indicators like the moving averages, MACD or trendlines in the long term charts to make your strategic decision to go long, short or stay out of the trade.

Return to the intermediate chart if the long term chart is bearish or bullish. Use oscillators to look for entry or exit points in the direction of the long term trend. Set stops and profit targets before you switch to short term charts to fine tune entries and exits.

On the short term chart look for the support/resistance breakout in the direction of the long term trend to pinpoint the trade entry! Use it on your demo account to get familiar with it before you trade live with the triple screen method. Triple screen is a simple but ingenious multiple timeframe approach to forex trading. - 23208

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try This Cash Printing Forex Signal Service From Heaven! First practice on your Forex Demo Account!