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Investment Training

 

There are multitudes of places for investors to place their money, whether it be in the stock market, the foreign exchange market, mutual funds, real estate, and so on.

The trick is finding the right investment vehicle that best fits your needs, investment capital, and risk tolerance.  This is done by doing as much research as possible and learning as much as you can about your market choice.

These days it seems that everybody is hawking the latest success formula which guarantees amazing returns.  The truth is that many of these products are complete B.S. and will only help you lose money.  Again the best thing to do is educate your self on the topics so that when you do choose to follow someone's recommendations you won't be doing it blindly.

Further the more you know the less you have to spend.  There are stock trading seminars selling for up to $40k per session offering the same info that can be learned for a fraction of that price.  There is no reason to be paying that much money for courses when it can be better spent invested.

Online Stock Trading

Trading online has reached an unprecedented level of ease and with it has presented its own new opportunities and complications.  With these new online trading platforms trades can be made in a matter of seconds and if something doesn't go your way reloading your account is a one click procedure

Same as with online gambling the easier and the less real it seams the more likely that you can get in over your head and forget that you're dealing with your own real money.  This is why you should develop a systematic and disciplined approach to online trading.

Getting Started:
You want to choose an online broker that has proven it self with customer satisfaction and maintains low trading fees.  The good news is that the competing online brokers like Ameritrade, Charles Schwab, E-Trade, and others have driven price per trade to record lows, with an average of $5-$10 per trade.  Depending on your volume you can even find places that offer trades for under $3.

Setting up your account is the easy part, the difficult part is developing your trading style and learning how to maintain a level head.  You also need to figure out your style of trading, will you invest for the long run by buying and holding, day trade for quicker profits, or somewhere in between.

As far as your online stock trading education is concerned at the bare minimum you should learn how to analyze stock charts, understand company announcements, read profit and loss statements, and spot additional financial indicators.  No matter what you read or hear these abilities take time and dedication to develop and won't be mastered overnight.

The other element to online stock trading that newcomers have to watch out for is the limitless freedom that they have.  Unlike the old days of trading through a human broker online no one is there to comment on your decisions.  This means you need to develop your own plan that must include exit plans.

Evidence has shown that beginner traders make common mistakes of holding stocks too long both when they are rising and falling.  They either hang on praying for a rebound or incorrectly hang on in an effort to squeeze the most profit at peak points.  Thus a correctly developed exit plan is a must for new traders.

Online Stock Trading does provide new comers amazing opportunities to profit from the market but it needs to be approached with great prudence.

Options Trading
Options Trading - is a form of trading in which a buyer obtains a "contract" that gives them a choice to buy or sell shares in a particular company, at an agreed price, on or before a set date.

The reason why this form of trading is growing in popularity is because Options only cost a fraction of what it would cost to buy the underlying stock itself and a small move in the price of the underlying stock, creates a much larger move in the price of the option by 10 times to sometimes 100 times.

There are two types of options, CALLS and PUTS.  Call options give you the right to BUY shares in the underlying stock.  PUT options give you the right to SELL shares in the underlying stock.  CALL options increase in value when the underlying stock goes up and PUT options increase in value when the underlying stock goes down.

Ideally what you want to do is buy CALL Options when you think a stock is about to go UP in price and buy PUT options if we think the stock is about to go DOWN in price.  If you're right and the stock moves in your predicted direction you will make money.

As hard as it may seem to believe Options provide you with the opportunity to make money regardless of what direction the market is moving.  Thus, by trading the options instead of the stock it is possible to make far greater returns and at the same time risk only a fraction of your capital.

Futures Trading
Futures Trading - has a reputation for being one of the most riskiest forms of trading and usually reserved only for the experienced traders.  However with proper education this market can be immensely profitable.

With Futures or Commodities trading you do not actually own anything what you are doing is speculating on the future direction of the price of a given commodity. You are basically wagering that the price will either go up (if you are a buyer), or it will go down (if you are a seller).

There are three type of traders involved in the Futures market, Hedgers, Speculators, and Floor Traders.  The majority of those involved in this market are speculators, which is similar to standard stock trading in the sense that you're trying to make a profit from price fluctuations of the underlying commodity.

When you speculate in a futures trade, there is always someone who is taking the opposite position, or betting against you.  It's important to learn as much as you can about commodities and how to safely trade futures.

Forex Trading
Forex Trading - takes place in the foreign currency exchange trading markets. The international exchange of currency in the Forex market is the largest cash value trade market in the world. The sums of money traded are astounding and involve everyone including: world banks, credit card companies, International Corporations, Governments, currency speculators, individual brokers, and financial giants.

However the benefit of an online Forex Currency Trading market is that people can invest small amounts of money and quickly learn from their profits or losses. They are also just clicks away from a plethora of research material on Forex Currency Trading market trends.

The currencies of the world are on a floating exchange rate, and they are always traded in pairs EUR/USD, USD/JPY, USD/CHF, etc. The majority of all daily transactions involve trading of the major currencies.

The FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. The currency market is the largest, oldest, and most liquid financial market in the world with unbelievable opportunities for investors.

Program and Guru Reviews

Harry S Dent