Archive for the ‘Investing’ Category
Investing can be a fun and exciting way to make money. To many times the young investor doesn't understand some of the most basic rules of investing. This causes the first time investor to loose money and get discouraged; thus quitting altogether. That isn't the answer to wealth and riches.
This is something that I learned later on in my investing career. When I first started I didn't care who was in control I just wanted my money out there in an investment earning more interest then the bank was paying. I thought that the returns would stay high as the previous years, and that the moment things changed my broker would call me and suggest changing markets. I was nave to think that other people would care for my money the same way that I would. This was a painful lesson.
I can still hear my father saying, "Bob, no one will care for your money like you will". At first I was a little bit confused. I thought surely my broker and banker wanted me to make money, and they do. Just remember that they want, and need to make money as well. This is their first priority and there is nothing wrong with that. You just need to keep control and determine your own destiny.
The first thing we must know and understand is that your broker is not responsible for your money PERIOD! He is there to get you in and out of trades, suggest some trades, give his opinion, but in the end we have to make the decision, and we have to live with that decision. (Unless we have totally given the money to him and he is "managing" your money) My first trade lost me money, a lot of money. I was initially angry with my broker and called him up. I asked him why he didn't tell me to get out of that trade. He simply responded, "because you didn't tell me to". When we loose control and don't watch over our own money, we will ultimately loose money in the end.
I know that every broker and trading agent will tell you that they will take good care of your money. I am not saying that this is false; many brokers do take very good care of their clients' money. But we are focusing on YOU becoming a better investor! If YOU are going to become a better investor then you are going to have to educate yourself and decide how to invest your money.
Have you ever loaned your car to someone? I have! Did they take care of it the same way that I would have? NO! Money is the same way so be careful who you give your money to. More importantly then that be careful who you give control of your money too. Many times these are not the same things.
It really isn't that hard to be a successful investor. There are people out there that are not as smart as you making a lot of money in Forex trading. These individuals are doing well because they take control of their money and invest wisely.
With a good Forex trading platform you can do just that; control your trades. You can have a broker to help you. In fact I wouldn't suggest trying it without one. They can help you to control your money if you don't know how the system works. So work together with your broker and make lots of money. It is much more fun that way!
If you don't know much about Forex trading then log on to the website below. You will find a free e book that you can download and also many other articles that will help educate you about Forex trading. Happy Trading!
Mutual funds are so popular nowadays that there are actually more mutual funds available than there are stocks of individual companies. Below we present some of the most popular questions about mutual funds along with some short answers to the questions.
How Long Have Mutual Funds Been Around?
Mutual funds actually go all the way back to the Netherlands in the early 1800s. Mutual funds were then called an investment trust (which most still are today). Mutual funds came to America in 1889 with the New York Stock Trust. Many mutual funds in America were started in Boston, which was a financial center of some renown back in the 1800s.
Are IRAs the Same as Mutual Funds?
Many retirement accounts use mutual funds as their primary investment vehicle. IRAs were authorized in the United States in 1975 - IRA stands for Individual retirement Account. IRAs have led to explosive growth in mutual fund investing.
What Does No Load Mutual Fund Mean?
A "load" is a sales fee charged when you buy or sell a mutual fund - the fee is charged by the mutual fund company. A no load fund is one that does not carry such a sales fee.
What Exactly is a Mutual Fund?
A mutual fund is a group of stocks or bonds that are bought together - individual investors buy shares in the fund instead of the individual securities. You become a shareholder of the mutual fund instead of the individual stocks when you buy shares of a mutual fund.
What Is An Index Fund?
This type of fund tracks one of the stock market indexes, whether it is the Standard & Poor's 500 Stock Index, the entire stock market index, or some other performance measure of a like group of stocks.
What Is Net Asset Value?
For most of the funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day. Net Asset Value (NAV) is the value of a share in a mutual fund and is calculated by dividing the total value of the fund, less the fund's liabilities, by the number of shares currently issued and outstanding.
What Is A Public Offering Price?
A Public Offering Price (POP) is nothing more than the net asset value plus a sales commission. Open-end funds sell shares at the POP and redeem shares at the NAV, and so process orders only after the NAV is determined. Closed-end funds may trade at a higher or lower price than their NAV; this is known as a premium or discount, respectively. If a fund is divided into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by different classes.