Investing
Basics
Live The Dream
Become a Professional Trader From Home
FREE Forex Wealth Building Guides
Forex Trading represents one of the few ways for people
to start with small stakes and build real wealth quickly
and represents the ultimate home business.
On this page you will find 2 reports you can download right
now that give you one of the most powerful profit methods
of all time! Download them now to your computer - then join
our mailing list for new reports - all are FREE and available
without cost or obligation.
Download to your computer now
Regardless of the investment your are investing in: mutual funds, bonds, futures hedge funds, options, commodities or any other.
You need to keep several points in mind when choosing a manager to look after your portfolio. Here are some basic tips for choosing an investment manager in any form of investment.
1. Long term performance
Anyone can be lucky in a short period of time, so do not put to much weight on short term spectacular gains.
Instead, look for solid long term performance over 5 years or more.
2. Downside volatility
It is always a good idea to assume you invested on the worst day of the investment and this is referred to as peak to valley drawdown and look at how long it takes to recover.
For example, if the worst drawdown was 30% and it took a year to hit a new peak in equity is that a risk you would like to take?
3. Fees
Always check the fees that are charged carefully and that any track record quoted to you is net of all fees.
As a general rule try and pick funds that have an emphasis on being compensated on performance only.
This does not guarantee investment success, but it is good to know that a manager has confidence in his ability to perform and has the same interest as you i.e an increase in profits made.
4. Make some enquiries
It is always good to make enquiries on how safe and secure your funds are particularly if you are dealing with an overseas company.
Remember the legal and protection of client assets in many overseas destinations may not be as stringent as in the major financial centres.
There are some other points you should keep in mind when deciding on how to invest and they include your risk tolerance and your ideal target returns.
1. If you see an investment that looks to good to be true..
It probably is! Many investors let their greed get the better of them and when they invest they let greed blind them to the reality and end up losing.
So what is a good performance for a high risk investment?
As a general rule if an investment manager can compound 30 - 40% return annually, you have an excellent return on your investment and very few managers achieve this level.
Always be wary of spectacular performance over a short period of time.
2. Stay clear of anything you don't understand
You really need to understand something about the investment you are getting into, particularly exotic investments such as wine, timber, art.
They very often sound great in theory, but these investments are very often scams and end in tears.
3. Take time to balance a portfolio
So, that you can achieve the best risk to reward that reflect your investment objectives.
You should read the diversification and risk analysis area of this site which will point you in the right direction.
Finally
Many investors hand over large amounts of capital to managers and areas of investment they don't know anything about and just listen to the sales patter.
This is a huge mistake and you need to do a bit of homework in all the areas listed above to get the best manager you can and the investments that suit your circumstances.
At the end of the day, a little investment in your time in these areas could yield you large dividends in the future and help you avoid losses
Investments
Trading
Trading
for a Living | Market
Analysis | Trading
Methods for Profit | Free
Trading PDF Guides | Your
Trading Plan | Currency
Trading Articles | Day
Trading Articles | Swing
Trading Articles | FX
Trading | Forex
Trading Articles | Trading
Articles
Trading
Articles
Forex
Trading Money | Forex
Broker | Forex
Charts Technical Analysis |
Forex
Charts Simple System
Currency
Trading Articles
Improve
Currency Trading Profitability | Best
Currency Trading Systems | Online
Currency Trading Tips |
Currency
Trading Research | Currency
Trading Success
Forex
Articles
Best
Forex Broker Tips |
Reasons
Forex Traders Lose Money |
Forex
Charts Technical Analysis |
Forex
Charts Simple System |
Forex
Markets Online News Sources
Swing
Trading Articles
Swing
Trading | Swing
Trading Basics | Swing
Trading Systems | Forex
Swing Trading | Swing
Trading Strategy
Day
Trading Articles
Professional
Day Trading | Currency
Day Trading | Day
Trading Beginner | Day
Trading Forex Market | Day
Trading Futures | Day
Trading Indicators | Day
Trading Psychology | Day
Trading Risk Management | Day
Trading Breakouts | Exploring
Day Trading
W
D Gann Trading
|