Investment Planning

Investment plans allow individuals to simply purchase a specific amount of stocks, bonds, or indices on a regular repeating basis, cutting out a large part of the hassle while allowing for some of the main advantages of investment. If you've been considering an investment plan but aren't completely sure what they might entail, the following information might help you to decide whether or not an investment plan is the right investment option for you.

The Mechanics of an Investment Plan

Basically, an investment plan is a method of making multiple investments over time at regular set intervals. The funds for the investment are taken from a cheque, savings, or money market account automatically, and are used to purchase stocks or bonds that you have decided upon beforehand. In most cases you can change the amount, frequency, or purchased stocks or bonds of the automatic investments at any time, though depending upon the broker through whom you're doing the investments you may be subject to fees or penalties especially if changing details relatively close to the next investment date. Most online investment firms offer investment plans that you can change at any time free of charge.

Deciding How Much to Invest

When deciding how much to invest each cycle with an investment plan, you should take care not to overextend your funds and bring yourself up short. Make sure that the amount that you choose is available and that you'll have it to spare each time your investment comes up… it can be difficult to plan for events in the future, and just because you have a surplus now doesn't mean that you won't find money running tight a few investment cycles from now. If you feel that you're reaching a point where you won't be able to afford your regular investment, go ahead and reduce the investment amount or put a hold on the next scheduled investment… better to put less in than short yourself afterwards.

Choosing What to Invest In

Making the decision of which stocks and bonds to invest in can take some time, but it's worth it… this is your money that you're dealing with, and you shouldn't invest it without putting some thought and research into your decisions. Find stocks or bonds that have performed well over time, and that are likely to continue doing so… they may be expensive at times, but you aren't making your total investment all at once so it doesn't matter as much. Don't be afraid to add new stocks or bonds to your plan later, either… this can help to diversify your portfolio.

Forex

There are many-many advantages over the various other ways of investing. First of all it is a 24 hr market, except for weekends of course. You have the US market then the European and then the Asian. One of the great times to trade is during the over lapping periods. The USA and European overlap between 5am & 9am eastern and the Euro & Asian between 11pm to 1am eastern. It’s usually the busiest time and best to trade.

There is also the risk factor for the accounts. With futures and options you can get margin calls that can wipe you out. If you get caught in a bad trade not only do you lose the money in the account but you may have to come up with a lot more from your pocket. It can be very risking, but not in Forex. Worst case scenario you could lose what’s in you account. But you would have to do something really stupid. Like making a big trade on a Fundamental day and leave it alone. If market takes a bad move and you weren't there. OOOPS. But that wouldn't happen with a smart trader.

Then there are the demo accounts which are an account where you can trade using all the right things, platform, charts, and information. But you are using play money, or what we call paper trading too. Plus with Forex you have a mini account. Instead of needing thousands of dollars to get into it, you can open an account with as little as $300.00. Now of course you will be trading at 1 tenth of a trade. IN other words you controlling 10,000 instead of 100,000.00 these are call lots. Which also means you will only risk 1 tenth too!

So if you would love to learn to do investing and not have near the risk you really need to take a closer look at Forex trading.

Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as Forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful Forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It's very necessary to mention here that a person who invests in Forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful Forex traders and other traders.

Stocks And Shares

Share investing is really a personal venture taking into account yours and your family goals and objectives and these are what should really influence your investment portfolio.

7 Investment Mistakes to Avoid:

Investment mistakes often happen when decisions are influenced by emotion and when basic principles of investing are misunderstood. Confusion also exists about how investments react to economic and political influences. In saying that, losing money on your investments may not be the result of a mistake, and not all mistakes will result in a financial loss. Help improve your investment performance by avoiding these seven common errors:

1. Investing without the end goal in mind. Keep your goals in mind when considering your investment options so that you can move in the right direction. Your investment should include time frame and your personal tolerance to risk. Planning for your goals should mean that you do not need to make frequent adjustments to your portfolio.

2. Not allowing for the emotions that market cycles will cause. Being human we are all affected by optimism and pessimism which is what affects market cycles – the ups and downs of the market. . Overdoing your involvement in a current trend and then quickly abandoning it creates a buy high/sell low cycle of your own. Remember why you invested in the first place. Has this goal changed? Invest for the medium and long term and forget about cycles. “Buy in gloom and sell in boom”

3. Not being diversified. Allocate your funds to different asset classes such as property, bonds and shares but within those asset classes make sure you are diversified too and not relying on one asset to perform. Spread the risk.

4. Becoming bored with your plan and changing direction too frequently. Many investors tend to look at their investments with a short term view even though they have invested for medium and long term. Remember that there is no index that compares with your own personal portfolio.

5. Investing in the latest fad or speculative investment. This can result in a hodgepodge of investments and mean that you are investing because it’s the latest “sure” thing and the easy way to make a quick dollar. History is littered with examples such as Tulip Mania (1630), The Mississippi Scheme (1719), and The Tech Wreck (2000).

6. Having an unrealistic time horizon and comparing “apples with oranges”. Comparing your investments with dissimilar products will only cause you to take a detour from your original portfolio goals.

7. Taking too much notice of the media. It is the job of the media to report the sensational and the negative, after all it sells more papers.

Investing is a personal venture taking into account yours and your family goals and objectives and these are what should influence your investment portfolio.

Real Estate Investments

Having worked with a variety of investment properties over the past several years, let me first say YES it is possible to make a nice living working with investment properties. However, I've also met a lot of individuals who have failed miserably at it. In fact I've seen so many failures; I don't even know where to start in discussing them...

One of the biggest mistakes I've seen people make is they spend time "researching" i.e. watching videos or reading the internet, but they never seem to seek advice from ACTUAL investors working in their local market. Buried near the bottom of the ABC article, it mentioned you should have a "home inspector, contractor, realtor, tax accountant and attorney to advise you."* Although I would add lender to that list as well, the point to be made is having a core group of experts from every aspect of the investment stage to help you should something go wrong can mean the difference between making a profit and losing your proverbial shirt.

From my experience, most would-be investors are afraid of looking “stupid” in front of other investors, or are afraid they will be perceived as competition. Trust me; successful investors do not see a first time neophyte as a threat. Most of you will fail so there is no need for the expert to feel angst by the presence of a novice. But believe me, it’s a whole lot less embarrassing to ask a stupid question of an experienced expert than to lose your home because you didn’t ask in the first place. And remember because laws and regulations vary from state to state, and city to city, the “great advice” you get from someone on the internet in California can land you in hot water in Missouri. For that matter, the differences between an established inner city and a budding suburb can be night and day.

The best advice, as well as the FIRST piece of advice I offer every “new” real estate investor or would-be rehabber is to seek excellent tax and legal council. When seeking advice of an accountant, research for a company or individual with experience in real estate. When it comes to home improvements and rehabbing, things like repairing a door verses replacing a door depreciate very differently having varying tax consequences. This is also true of your legal ally a.k.a. your attorney. Protect your current assets and minimize your exposure and vulnerability to liability should the unexpected occur- like someone becoming injured on your property, loss due to theft and possible items not covered under your insurance policy. Your attorney will guide you on an appropriate course of action be it in creating an LLC (Limited Liability Corporation) or other appropriate precautions to protect your best interests.

Along theses same lines, when you go to look for the rest of your core group of “experts” as you begin your endeavor into investment properties, seek out individuals who not only know their business, but have also owned investment properties themselves. For example, I run into residential real estate agents far too often than I care to reveal who are offering all sorts of bad advice to would-be investors because they are trying to find an investment property and don’t know the difference between an investment and a primary residence.

Not to beat my own drum, but my experience in these matters is first hand and once you’ve worked with investment properties you will realize it’s not like buying a home to live in. Think of it this way, a gynecologist is in fact a doctor, but would you go to him/her if you had a sore throat? It’s no different with real estate agents. Find an agent who has experience in investment properties, first hand, because you seek investment properties in a completely different approach than you do a home to live in (Again, another story, another day). The same is true of lenders because borrowing money on an investment property is extremely different than a primary residence- and finding out your lender didn’t know that after the project starts can break you.

If you really want to enter the world of investment properties, be certain of your goals and stay within those narrow parameters. If you think investment properties will be “fun” and a “bonding” experience with your teenager because of too many hours spent in front of the T.V. watching “Trading Spaces”, think again. Investing in real estate should be approached like any other investment. If the numbers look good on paper, proceed. If not, put on your tennis shoes and run like heck!
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