The decision of which brokerage firm is best for you is as important in the Forex market as it is in the Stock Market. The way of evaluating the various firms differs slightly between the two markets, however.
Forex trades do not involve commissions, but they do have what are known as spreads, which is the difference between the price a currency can be purchased and the price for which it can be sold at a given point in time. This spread (which is expressed in "pips") is how the brokerage makes its money, so it serves the same purpose for them as a commission. You can be pretty certain that the spreads vary between brokerage firms just as widely as commissions do in the Stock Market, so investigate this carefully before making your selection.
Most brokerages dealing with the Forex market are involved with large financial institutions where the funds are available to provide sufficient leverage for their clients. It is still important to make sure your firm is reliable. They should be registered as a FCM (Futures Commission Merchant), and regulated by the CFTC (Commodity Futures Trading Commission).
Most firms offer widely varied packages of tools that assist you in making trading decisions and understanding the market better. They provide information and research that is available to you in many different formats. It is wise to take a little time to study these tools, and to find the ones that are most helpful to you. They are going to end up being very important and you need to be comfortable with them.
Look for a firm with a wide variety of account and leverage options. The ability to use the Forex market's advantages in leverage is one of the things that makes it the most attractive to you as an investor, and you want to have the maximum flexibility here. Although there are a few unethical firms operating, a few references and inquires should be able to identify them. This selection process is worth a little effort and an investment of time. It is an investment that is going to the most likely to pay off.
by John Chen
Tuesday, November 21, 2006
The 5 Worst Stock Investment Strategies
Most investors approach the stock market with the wrong frame of mind. But it's not their fault. They've been conditioned to follow investment strategies that simply lead them in the wrong direction towards financial disaster.
So to prevent YOU from making the same mistakes, I'm going to lay out all the horrible investment strategies for you so that you don't make the same mistakes as everyone else, and start on the correct path to wealth in the market.
You're Not Going to Get Rich Quick
Nearly all beginning investors, along with a great number of "veterans," have the mentality that they're going to strike it rich. Well that's great, that's optimistic, but they expect it to happen right away. This is probably the worst investment strategy you can have...because it isn't an investment strategy!
They're assuming that they can beat the system and crack the code of the stock market that investors have been struggling to find for years! The tortoise is going to runs laps around the hare in this one, guys. What you need to do is develop an investment strategy that can work for you over the long run.
Don't Gamble
The majority of investors don't know when to buy low and sell high. This is one of the basics, but people continue to follow hot "investment strategies" and "trends" to strike it rich. In gambling, it's not about the big take. Good poker players, for example, make the most with their good hands and lose the least with their bad ones. Here's an investment strategy: play big, but play smart.
What's So Great About Your "Insider" Tip?
So many investment strategies are abandoned for the "insider tip" that guarantees millions. But here are some questions to think about...How many people have heard this tip before you? Has the investment strategy been circulating for long? And who did you hear it from? If this insider information was given to you by a friend instead of a listed company director, you're not going to have that great of an edge. If this hot and quick investment strategy has been around for a while...it's not going to be very quick any more and has probably lost its magic.
The Suicidal "Set and Forget" Investment Strategy
Holding onto your stocks for extended periods of time is just going to bring trouble. Stashing stocks away so that they can grow and mature into some rewarding fund later in life is NOT going to bring profit. There are too many things that can go wrong, with the company or the actual market, to create beneficial odds for yourself by using this old investment strategy.
Do You Really Know When to Buy or Sell?
Not knowing what to do, being unsure of yourself, and investing blindly will kick you out of the market before you know what hit you. This is an information age. There are investment strategies, techniques, and dozens of ways to analyze EVERYTHING. Use them. Study up. Don't just sit there with your eyes closed making the best guess you can come up with. Create an investment strategy that works for you. Stay on top of your game and more importantly...your money.
by Joe Harris
So to prevent YOU from making the same mistakes, I'm going to lay out all the horrible investment strategies for you so that you don't make the same mistakes as everyone else, and start on the correct path to wealth in the market.
You're Not Going to Get Rich Quick
Nearly all beginning investors, along with a great number of "veterans," have the mentality that they're going to strike it rich. Well that's great, that's optimistic, but they expect it to happen right away. This is probably the worst investment strategy you can have...because it isn't an investment strategy!
They're assuming that they can beat the system and crack the code of the stock market that investors have been struggling to find for years! The tortoise is going to runs laps around the hare in this one, guys. What you need to do is develop an investment strategy that can work for you over the long run.
Don't Gamble
The majority of investors don't know when to buy low and sell high. This is one of the basics, but people continue to follow hot "investment strategies" and "trends" to strike it rich. In gambling, it's not about the big take. Good poker players, for example, make the most with their good hands and lose the least with their bad ones. Here's an investment strategy: play big, but play smart.
What's So Great About Your "Insider" Tip?
So many investment strategies are abandoned for the "insider tip" that guarantees millions. But here are some questions to think about...How many people have heard this tip before you? Has the investment strategy been circulating for long? And who did you hear it from? If this insider information was given to you by a friend instead of a listed company director, you're not going to have that great of an edge. If this hot and quick investment strategy has been around for a while...it's not going to be very quick any more and has probably lost its magic.
The Suicidal "Set and Forget" Investment Strategy
Holding onto your stocks for extended periods of time is just going to bring trouble. Stashing stocks away so that they can grow and mature into some rewarding fund later in life is NOT going to bring profit. There are too many things that can go wrong, with the company or the actual market, to create beneficial odds for yourself by using this old investment strategy.
Do You Really Know When to Buy or Sell?
Not knowing what to do, being unsure of yourself, and investing blindly will kick you out of the market before you know what hit you. This is an information age. There are investment strategies, techniques, and dozens of ways to analyze EVERYTHING. Use them. Study up. Don't just sit there with your eyes closed making the best guess you can come up with. Create an investment strategy that works for you. Stay on top of your game and more importantly...your money.
by Joe Harris
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