Eliminate Risk In Your Investments

By David Phillips

While some people today seem to be going into debt because of the strain of the economy, there are those people out there looking for good investments - maybe you are one of them. When you have money to spare, putting it in a savings account does not necessarily make sense; yet, the investment alternatives out there today seem to be risky. Because of this, many people are hesitant about where they want to invest their money - and, for good reason. However, there are solid, sound, and relatively risk free investments that are still available to people today looking to invest money.

When we talk about a good investment that does not necessarily mean it is going to be risk free, however all risk free investments are relatively good investments on some level because you do not incur a risk of monetary loss with the investment. When you are looking into to various securities, anything that has the potential to cause you to lose money cannot be classified as risk free. However, securities that are free of this risk are often more popular and usually found in government bonds, treasury bills, and certificates of deposits (CD).

The wise investor will most likely consider a risk free investment not only to minimize risk, but also to save smarter when it comes to the future. One of the difficulties with investment securities is that they are not very liquid. Unlike your regular checking or savings account, you might not have access to the money in your securities or even a surety that it will be there in the future. However, with risk free investments, you can rely on the fact that the money you have invested today will at least be there tomorrow, and this is a nice comfort for many investors today.

Although there are different types of risk free investments, one of the most popular risk free investments is obtained from the government in the form of a bond. A government savings bond is a nice long-term investment security that accrues interest over time; and once it matures, you can count on getting your money because you invested in the government instead of a bank or the stock market. The downside of bonds is obviously the fact that they provide a lower rate of return, yet there is no risk and you are guaranteed at least some return on your investment.

Another option for risk free investing is treasury bills (also known as T-Bills). T-Bills are very similar to bonds and are popular in today's economy the only difference is the time period varies between the two. Unlike bonds that take many years to mature, T-Bills typically mature in one year or less, which makes them a nice, risk free investment for the short-term. And, when you invest in a T-Bill, your money is guaranteed at the date of maturity, so you know that you will get a return on your investment.

Certificates of Deposits (also called CDs) are a great risk free investment for those who are interested in investing their money over a few years time period. The time period usually ranges from anywhere between one quarter and five years, and once the CD has matured, you receive the principle plus the interest. The only downside to the CD is that sometimes they do not offer the same sort of tax breaks that other investments offer; however, they are definitely sound, sure, and risk free investments.

Obviously, not all investments are created alike and this is why many people seek the advice of a financial planner to help them with their investment needs. You might be interested in talking with a finance professional as well, so that you can be best advised on what to do when it comes to investing for the future. Whatever you do decide to do, be careful and cautious and make sure that you do not invest before you are sure - especially when it comes to riskier investments.

Unfortunately, to make a better return on your investment, there has to be an element of risk involved. Therefore, the more risky an investment, usually the better the possible return might be. However, it is important to be cautious in today's difficult industries, especially when it comes to real estate and the stock market. Where it once seemed easy to make a decent return, it now is a lot more risky and a lot less people are reaping the rewards.

Because of this, try to stick with investments that are risk free. Check out savings bonds, T-Bills, and CDs for your investments. You will be happy you did. - 23159

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How Can Forex Software Reviews Help You?

By Ryse Edwards

You will find out rather quickly that trading Forex is a little different than trading on the US stock market. Some software works, some doesn't, and the best way for you to find out which is which is to read Forex software reviews. If you do some research then you will be able to find the best software package out there.

Are you having some trouble figuring out which Forex software to purchase? It is definitely going to be a pain considering how many different ones are out there to buy.

The best way to find the software for you is to do your research. Start with forex software reviews.

If you do your research and read a lot of different Forex software reviews, then there is no doubt that you will learn many different things regarding those software packages. You shouldn't rely on them however, always make sure that you do your own research. By learning everything that you possibly can, your decision will be rather simple.

These reviews will provide you quite a bit of information and in most cases they are written by someone who has some experience with the software package that your are considering. There may be some cases where the person who wrote it doesn't have the necessary experience, but that's why we have what's know as independent research.

Soon enough you will be able to figure out what software to purchase. You will have to do plenty of research to find out what type of Forex software you want. Read the reviews and know what's in so that you can get what's best for you.

Don't depend upon the reviews. Do your own research and learn things on your own so that you can purchase the right software for your needs. - 23159

About the Author:

Before you purchase any Forex Software, make sure that you visit Ryse Edwards' website and read his Automated Forex Software Reviews first. Click HERE now for more information.

No Money Real Estate Investing - Part Two

By Dave Peniuk

People often ask me how they should obtain the money for their real estate investments and are sometimes not happy with my response. That's because many are hoping to find easy solutions that don't require much work on their part and are therefore disappointed with my advice.

But, when I get questions like:

- "Should I find other investors to partner with if I have no money of my own? This seems like a daunting task and I'm not sure how to go about it. But, I really want to get started investing in real estate as I've recently seen several nice investment properties."

- "I've heard that you can use credit cards, owner financing or a home equity line for a down payment. Is this a good idea, and how soon could I expect to see a positive ROI (return on investment) to reimburse funds?"

- "How can I do deals like Robert Allen - no money down, cash back on closing?"

I usually start by telling people to begin by tracking their own expenses. Make sure you spend less than you make. And, make sure you are doing that each and every month. Then, use the excess to pay down your debt or save for your real estate investments.

I always tell people where not to find money for their down payment: credit cards. Never ever look to your credit card to finance any real estate or any other investment. It's much too risky.

What if something goes wrong with your investment and you end up paying 18% interest on that $5,000, $10,000 or $20,000 you borrowed from your credit card for years to come? Do you want me to do the math on that?

As for the other methods - using home equity and vendor take back financing - it really depends on your goals and where you are right now in your life. If you're 65 and getting ready to retire, I am not sure I would use the equity in your home. But if you are under 50 and have $200,000 equity in your home, I would definitely consider a $50,000 home equity loan for a down payment on a real estate investment - assuming you can cover the extra payments if something goes wrong with your investment.

On a good deal, your rental income should pay for the monthly payment increase that the additional $50,000 that the home equity loan will cost you, along with all of the other expenses on the rental property. In this case, I think that it's a great source of money to use for a down payment on your first property.

Owner financing (or vendor take back financing) is one of my favorite methods to use when buying property. It's a win-win situation- you win because you can proceed with the purchase and the owner wins because he/she gets a loan payment from you every month and the loan is secured against the house. However, if a bank will only finance 75% of the purchase and you have no down payment, owner financing is not what you should use to finance the rest.

Take it from us, however- buying properties with no money down does not mean it won't cost you in other ways! We've learned from experience.

No money down real estate investing is VERY different than buying a property without using any of your own money for a down payment.

No money down deals are unbelievably risky because you borrow 100% of the price of the property. Sure, this may sound good, but if the market drops even by as little as 5%, you're going to wind up owing more than the house is worth. Are you going to be able to find money to pay for it? Many families across North America are going through this right now.

It's also extremely difficult to find a property that will cashflow with 100% financing. And you would still need money to cover the closing costs on your purchase- typically you can expect to need about 2-3% of your purchase price for a property inspector, a lawyer, property purchase taxes and a few other disbursements depending on where you are buying.

No money down deals are not only MUCH riskier because you have no equity in the property, they are also pretty hard to find because they rarely cashflow. If you have no money for a down payment on your real estate investment, then, in the following order, this is what I suggest:

1. Start controlling your destiny by controlling your money. Get out of debt and start saving. You don't necessarily need a lot of money, but no one will want to partner with a person who can't handle their own finances.

2. If you have over 25% equity in your existing home and many more years before you were planning to retire, think about using part of that equity to get started in real estate investing.

3. Have no money and you are currently a renter or don't have enough equity in your home? Find a great property - one where the rent will cover the costs with as little as 10% down. Get an accepted offer and then find a partner that has the money to invest in the property with you. Be prepared to sell yourself AND the property.

Over the years, we've bought many properties with very little of our own money. We've tried the no money down deals and never had one work out successfully. However, we have had success when working with partners when we did all of the work involved with finding, purchasing and overseeing the property. Since the partner provided the down payment, it allowed us to get a better house in a better location for which we could charge higher rent than if we had bought a lesser house in a lesser neighborhood. It also meant that we had equity in the property from the very beginning. The deal with the partner is outlined prior to purchase- even though the partner provides the down payment, we jointly own the property (we each own 50%). If repairs to the property are required, any costs that can't be covered by the rental income are paid for 50-50 by us and the partner.

When we sell, our partner will get his down payment back first, then we split the rest of the proceeds. Maybe we gave up some equity to get the deal done but we also substantially reduced our risk! - 23159

About the Author:

Learn How to Retire with investment property with Daves free investment property Investing Starter Tips Guide. Learn how to find money for investment property deals, create financial freedom, positive cash flow and massive wealth with tips like: How to find quality rental properties, finding and keeping great tenants, and easy ways to make more money with investment property.

Forex Advice

By Paul Bryan

Forex market is highly volatile and sensitive to news and information. There are many professional Forex Advice firms that either for free or in exchange of a paid membership offers Forex advice latest news and information about the Forex market along with expert advice so that that the subscribers get the most accurate information on the latest market moves to become successful Forex trader.

Within a very short time the Forex currency trading has come up as a great money making market. But the setbacks involved are not that less and cannot be looked down upon. So a trader may reap huge success making a lot of instant money and at the same time there is also every chance that they are reduced to a pauper by falling prey to websites and services which are fraudulent. Forex trading is highly volatile in nature and, therefore, it is important for the traders to proceed with caution.

A good Forex advice site however helps the traders with best expert advice in the direction of safe trading in the Forex business. To proceed in Forex trading one must initially open an online Forex account. And at this point selecting the right broker is definitely the most crucial decision for a career in Forex.

It is through the Forex broker that all the trades which you indulge in will take place and your return will be reflected in choosing the broker. A good broker can lead to making a substantial profit while a bad one can get you into making terrible losses.

More particularly for all those who are new in the Forex trading business, one must resort to a right strategy. The good broker service takes a lot of hard work out of the Forex business for you to succeed and will alert you on every trading opportunity. This is very vital for making reasonable returns in Forex so that one can avoid financial crisis.

Furthermore, one can also enroll in a course about the Forex trading business whereby they can gain proper knowledge about the currency trading market. There are a lot of websites offering such courses and an online course if chosen wisely will be far more economic. There are courses which include video tutorials and have been of great help for novice as well as experienced traders.

Forex brokers are often encouraged to install some kind of analysis software so that the traders are able to read and predict the upcoming market moves and are able to stay a bit ahead in the game. Before taking the plunge in the Forex market one must familiarize themselves well all the aspects of Forex so that they can trade comfortably in the direction of profit.

The profit potential in forex trading is extremely high. However only those who have the right information and strategy will emerge as winner. - 23159

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If you learnt from this information then you will enjoy reading more on currency trading and how to become successful by going to Forex Trading Advice

Exit Strategies In Trading Systems

By Maclin Vestor

Many good trading systems use multiple exit strategies. In normal trading system, you need to know when to exit from a gain, and when to exit from a loss. Generally you want to be cutting your profits short, and letting your profits run. At a minimum, you generally want nearly a 3:1 gain to loss. This means you should take profits at 3 times the percentage amount as you cut your losses short. We will use this system and do the following

1) Exit stop at a 7% loss. This stop-loss should sell ALL of your shares. The simple method is to just set the stop and leave it. There are dangers of this because people may be able to see someone make the stop order on the floor, and if they have enough money, they can take advantage of that, selling lots of shares of the stock, pushing the stock price down below the stop, then forcing you and others who may have stops out, and then buying the stock below your price, so the stock will stop out, and then quickly rebound. The more advanced mode is to just watch it, and if it is going to CLOSE below your stop, only then will you exit 10 minutes or so before the markets close. The sophisticated way is to just not use stops, and instead buy puts. this increases the cost of the investment and thus limits your win, but you give up a fixed amount for protection against large losses.. This would insure that the stock doesn't drop overnight. A failed breakout is signaled if a stock drops 7% below breakout point. If you are buying stocks on the pullbacks, a 7% drop should signify a breaking of support.

2) Set a profit target at 20%. You can use a limit sell order to sell here if you would like, particularly for those who don't have the time to watch the stock. You should be willing to wait a full 4 months for it to hit it's target. If it hits the target, you should sell 1/2 to 2/3rds of your shares, and let the rest ride. Also, if your stock hits the price target within 8 weeks (2 months), this signals that your stock is a good one, and you want to hold onto your winners. There is a simple strategy and a sophisticated strategy. The simple strategy is to hold onto your stock until the entire 8 weeks is up. The sophisticated strategy is to sell most or all of your shares, and convert them to an option that you should own at strike price, or very close to it. You should ensure that this transaction is such that in a worst case scenario, you still will have a 5% gain. Generally, you will own say 100shares, sell 100, and buy 1 call contract at the same strike price the stock is at, and secure a profit, while still maintaining the same upside leverage minus the cost of the option and the transaction.

3) Set a trailing stop of 25%. This should serve as a function primarily to exit the remaining 1/3rd to 1/2 of shares that you let ride after you hit your price target of 20%. It is possible that the stock goes up near your target, which will raise this stop to 5% below where you bought it, or if you aren't using a limit sell, it could spike way up to up 35% from where you buy it, and then quickly come down, and sell out a small portion of your shares for a small gain. This is fine. In this case, either the stock will then proceed to drop below your buy point and go and hit the 7% stop-loss, or it will then bounce and gain until it hits your 20% target. In either case, you will sell the rest of your shares. Of course, if this all happens in a short amount of time, you may attempt a swap as a sophisticated strategy, but generally you should be done with it.

4) You should always keep records. Record how many you bought at what price and which exit(s) were triggered. You want to check all these stocks in a year, or so, and see if you could have made more by adjusting your stops, or adjusting the size of which you sell.

5) Enjoy the profits.

If you are a good system trader, you will make sure that they trading system you use has an excellent exit strategy. At System Trading|Stocks Trading Systems you will learn that an exit strategy will allow you make sure that you have a trading system with greater returns on your average gains than you have losses on your average losses. This is only one small aspect of a trading system but it is a very important one. In fact, your exit strategy will be vital in determining how much capital you allocate when managing your money in a trading system.

In addition, if you can find a stock selection vehicle in combination with a good exit strategy, it will insure that any given investment has a positive expected value. In other words, with a good exit strategy and stock selection that picks winners often enough, you will win more than you lose, provided you manage your money right. Learn these tips as a system trader, and you stand a much better chance at being a profitable trader than someone who does not understand the importance of a good exit strategy within a trading system. - 23159

About the Author:

Maclin Vestor teaches about varioustrading systems and teaches you about money management, leverage, exit strategies, position sizing and other important trading information.