Saturday, September 29, 2007

Financial Investment Tips - 7 Tips For Not Losing Money On Your Mutual Fund Investments

Investing in mutual funds has inherent risks. You cannot totally eliminate all risk from any financial investment. However, you can significantly reduce your risk and lower your chances of losing your principle by following these seven tips.

1.Know the risks.

Not only should you know the risks but you should know them before you buy. Many people learn by trial and error. That way of learning means that you will get burned every time you learn a lesson. Your life will be more comfortable if you learn from the mistakes of others. Then you get the benefit of the lesson without the financial injury.

2.Discern who has your best interest at heart.

You always want to have your radar on so you can discern who is a friend or a foe. It takes practice to be able to tell who has your best interests at heart. If someone only calls you when they want you to buy something, they may have their self-interest above what is best for you.

One of the best principles to utilize when judging the merits of someone's ideas is to use third party verification. See if what someone tells you can also be verified by a third party. Who else says that this investment is a solid long term play?

3.Always understand how financial instruments work.

If you cannot explain how something works in one to three sentences then you may not fully grasp what it does or how it works. That lack of knowledge can end up harming you later. An easy way to research financial terms and investment vehicles is to use a search engine like Google or Type a term in a search engine and you will easily find simple explanations to almost any confusing terms.

4.Know your options.

Don't think that you must invest in the single item that is in front of you. Understand what options you have. You may discover that something that is similar but ten times better for your individual comfort level.

For example, many people have bought REIT's and mutual funds that invest in real estate over the last ten years. However many experienced investors that I know have been surprised to see people use these investment vehicles when they can easily invest in real estate directly as a private lender without the fees and expenses.

5.Stay within your risk comfort zone.

Some people fall into the trap of feeling that they must take more risk because they are close to retirement and need to grow their savings faster. This attitude can lead to chasing the highest return without fully assessing all of the risks involved. Staying within your comfort zone can bring you more sleep and less stress.

6.Get answers to all of your questions.

If you have serious reservations about an investment, do not purchase it. First, get your questions answered, and then decide if it is right for you. Too many people accept what someone presents to them without fully understanding it.

7.Ask an expert.

Talk to other people who know more than you do about the financial subject you are interested in. Discover their opinion and how they feel about the topic. They may be able to suggest an alternative that suits your needs better.

If you are wondering where you can find an investment that many experienced investors describe as being very secure and earns high returns, then go to

If you'd like to read a Special Report on getting higher returns in your IRA, then you can download it by going here and looking in the left hand column.

Written by Dan Snyder - founder of the Association of Private Lenders.

Home Business - A Simple High Profit Small Business Opportunity Part 1

Forget MLM, Affiliate deals and making money from the net, here we are going to look at a small business opportunity anyone can learn and allows investors with small stakes to build wealth quickly.

Lets look at this home business opportunity in more detail.

The opportunity is opening your own currency trading business from home dont worry if you have never traded before, you can still make big profits and you dont need much capital to get started.

Lets look at the advantages in more detail.

1. No staff stock or premises

Overheads are low all you need is some seed capital to get started, a connection to the internet and around 30 minutes a day and youre all set.

2. You will never need to seek customers

You dont need an advertising budget, as there is a market you can buy and sell in for profit 24 hours a day for profit.

3. Leveraging your gains

You dont need to borrow money, you just need a small amount to start, you can leverage it and this is the huge advantage of this opportunity and what makes it so profitable.

For example, if you want to buy $3,000 of Euro currency your broker will allow you 100:1 leverage - this means you can trade $300,000 this allows your funds to work many times over.

4. Never a recession

As one currency rises another falls meaning there are constant opportunities for profit. You will never have periods of recession where you dont have the opportunity to make money.

5. Its simple to learn to trade

Trading is an occupation that can be learned by anyone with a willingness to learn and you can become proficient in around 2 weeks of study.

In a famous experiment legendary trader Richard Dennis taught a group of people from diverse backgrounds with no trading experience to trade in just 14 days.

This group (nicknamed the turtles) went on to become some of the most famous traders of all time and made millions.

You may not become as successful as the turtles, but the fact is the opportunity to be a successful trader from home is open to anyone.

You Can Build Wealth Quickly

Currency trading represents an opportunity to start with small stakes and build wealth quickly.

You dont need to have above average intelligence to do it, as to learn to trade is simple you do however need the right mindset to apply the knowledge you have learned.

In trading your mindset is crucial to your success.

The Character Traits You Will Need

Character traits you will need are patience to wait for opportunities, confidence in your trading method and the discipline to apply your method through inevitable losing periods.

An Opportunity For All

Many people try trading and fail because they do not approach it as a business and let their emotions get involved; if you can keep your emotions in check and be disciplined in your approach, then you can achieve bigger profits than in any other home business opportunity.

In part 2 of this article we will show you where to look on the internet to acquire the knowledge you need and how to build a business plan for success.

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The Truth About Most Option Trading Seminars

Are you about to pay thousands of US Dollars to attend an option trading seminar this weekend?

Whether or not you have decided to join that weekend seminar, I hope I can help you make a more intelligent decision here.

A Grim Experience At An Option Trading Seminar

I had a friend who joined a weekend, 2 days, option trading seminar (a very well-known one by the way), promising that every participant will walk away with enough knowledge to profit at any market condition and be on their way to their first million just by option trading. He paid USD$3000 for the 2 days seminar and walked away feeling all hyped up but totally confused as to how exactly to start option trading. He was then told to sign up for an advanced course for another USD$5000 for 4 days. That 4 days seminar taught him little more than option trading basics and how to open a trading account but still completely no idea whatsoever as to how to read the market and pick stocks on which to trade options in the first place. He was then asked to buy a USD$6000 laptop containing a magical software that will tell him exactly what to trade daily. That software turned out about a hundred opportunities a day again, he is totally confused.

After paying a grand total of USD$11,000, my friend had completely no idea how to start trading options consistently and you guessed it, he ran into another USD$11,000.00 in credit card debt which he is still paying 24% per annum of interest on. (Not to mention losing another USD$5000.00 on losing trades produced by that magical software)

The Truth About Most Option Trading Seminars

The truth about option trading seminars these days are that they are conducted by people who claimed to have made millions from option trading but are really making millions by conducting seminars like that.

Heres a math from an internationally acclaimed option trading guru who charges USD$2500.00 for her 4 days seminars:

Cost Per Head : USD$2500.00
Average Number of Participants : 120
Average Number of Seminars Per Month : 2
Average Gross Takings Per Month : USD$600,000.00
Average Gross Takings Per Year : USD$7.2 MILLION!

See how these option trading gurus are really making their millions?

What Option Trading Seminars Really Teach

Sadly, most option trading seminars have nothing magical nor proprietary to teach. Most of these option trading seminars simply teach people what option trading can do and how to do some of the common option trading strategies which anyone can learn completely for FREE on option trading sites like

These fake option trading gurus then use a lot of hype and motivational techniques to make all participants think that they have indeed stumbled upon a gold mine.

What Option Trading Seminars Are Not Teaching You

Option Trading, like all kinds of trading activities requires foremost for the trader to be able to pick the right stocks that behave within the predetermined limits of the strategy in the first place. You will lose money if you do a bullish option strategy on a stock that stumbles eventually and you will lose money if you do a neutral strategy on a stock that suddenly surges. The ability to pick the right stocks is the real key to any kind of trading, including option trading and that is exactly what you will not learn in most of these option trading seminars. This means that most of these option trading seminars really have nothing proprietary to teach anyone at all!

To make up for the gap, these fake option trading gurus make participants sign up for stock picking programs or buy expensive software which eventually still led to nowhere. Being able to pick the right stock for option trading is an extremely tricky task which the best in the industry are still trying hard to do consistently!

Everyone who learnt option trading must then begin the long and arduous journey of looking for a reliable way of picking stocks for option trading consistently. That is a long and wide journey which includes learning about fundamental and technical analysis, different scopes and methods of trading options and things like that things that really do have proprietary knowledge and which is ok to pay a fair price for.

I am sad to see so many people who loves to learn about option trading fall prey to these option trading seminars and to pay thousands to learn things that can be learnt for free. That is why I started the where I provide all the information and knowledge all beginners need to know what option trading is and how to trade options and I sincerely hope that the public can help me to help yourselves by spreading the good news around.

Jason Ng is the Founder and Chief Option Strategist of Masters 'O' Equity Asset Management ( ). He is a fund manager specialising in options trading and his Star Trading System has helped thousands. For Free Option Trading Knowledge, please visit .

Forex Trading: How to Setup a Solid Workstation?


At first glance, it may not appear that important, but you will come to appreciate the wisdom of ensuring you have all of the tools necessary to make your currency trading experience a positive one.

Work Station Location

Choosing the right place for trading is your first step. Be sure not to rush into making this decision too quickly. Do you have a spare room? How about an office? The place you choose should be a place where you can concentrate and feel comfortable.

Trading Forex at times can be very stressful, so your trading area should be a place where you can relax. Avoid setting up your trading setup in your bedroom, as this could disrupt your sleep cycle. Having the right amount of rest and sleep is as important as trading forex itself. Keep this in mind.

Trading Computer and Accessories

One of the most frustrating events for a new trader is attempting with outdated computer equipment. The following list must not be ignored in acquiring adequate computer equipment:

Minimum Hardware Requirements:

Pentium 3
256 MB Ram
20 GB HD
17 Monitor
Fast Internet Connection
Windows 2000, XP
Antivirus and Firewall Protection

Whether you choose a desktop or laptop computer, be sure it meets the minimum requirements for the best operating results. Youll also want to have a comfortable chair with adequate lower-back support.

Other useful accessories include: a small calculator, a telephone to call dealing desk if needed and a notebook to be used as a trading log.

Recommended Hardware Requirements:

Pentium 4 2.6GHZ or better
512 MB Ram
100GB HD
2 17monitors or 2 19 (LCD)
FAST Internet Connection
Windows XP
Antivirus and Firewall Protection

Internet Connection

When you are a day trader, you will need a stable fast internet connection, avoid internet services where frequent disconnections are the norm, for longer term traders (such as o daily chart traders), you can use a dial up connection but still preferred is a fast stable connection to the internet such as ADSL.

Toby Smitz - Daily Operations
Forex Trading