Thursday, September 19, 2019

Asset Allocation in Tough Times

When the going gets tough smart investors concentrate on asset allocation and diversification. The new investor should too. First we will explain these terms; and then tell you how to put these concepts into action as an investment strategy.

Asset allocation is the process of deciding where to invest and in what proportion. In other words, how do you allocate the money that makes up your total investment portfolio (a fancy word for your list of investments)? For example, you might have an asset allocation of 60% stocks and 40% bonds.

Diversification means spreading your money out across various different investments. For example, the 60% you have allocated to stocks might be diversified or divided among 6 or 60 different stocks. Or, you could get stock diversification by investing in just one stock mutual fund which holds 100 different stocks.

In tough times even the new investor needs to incorporate both financial concepts into their investment strategy to avoid heavy losses in any one area. I suggest you get more conservative in both areas, and at the same time broaden your horizons. Let me explain. Let's say that at present you are 60% in stocks and 40% in bonds, with emphasis on growth stocks and longer term corporate bonds.

Get more conservative by replacing some of your aggressive stocks with some that are more defensive and pay higher dividends. Cut your bond risk by moving some money into intermediate-term high quality government bonds. Then broaden your asset allocation to include safer and short-term debt obligations like bank CDs and short-term bonds. And expand into alternative investments like real estate, oil, foreign investments and precious metals.

In other words, when uncertainty is high as in 2008-2009, cover all the asset classes and diversify like crazy. Don't get caught standing flat-footed with a portfolio heavily invested in just one or two areas. Sound pretty challenging for a new investor? Now we simplify. More Info on ND10X review

The new investor can easily solve the diversification issue by simply investing in mutual funds. For example, a conservative value stock fund might invest in over 100 different stocks, and pay dividends of 2% or more. Mutual funds are also the ideal way for a new investor to broaden asset allocation by holding just a handful of different funds vs. a long list of individual securities.

For illustrative purposes, you might put together an investment portfolio that looks something like the following. First, the types of mutual funds are listed, and then the asset allocation percentage.

Money market fund: 10%

Short-term bond fund: 10%

Intermediate-term bond fund: 30%

Diversified domestic stock fund: 20%

International stock fund: 10%

Real estate fund: 10%

Energy fund: 5%

Gold fund: 5%

Total asset allocation percentages must total 100%. In our above sample portfolio you cover a lot of bases with lots of diversification by holding just 8 different investments - all of which are professionally managed for you.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

What to Look For in an Investment Adviser

When you are looking for a financial advisor to help you with your investments you will definitely come across complex titles along side the advisors name. The reason is that there are many kinds of certifications advisors can get these days. These are professional designations that are earned depending on which part of the world the advisors works from as well as what types of investments they deal with. More Info on ND10X system

Most of the designations have several things in common. These specialized designations represent courses the advisors have undertaken and have completed successfully overtime. It is important that you understand a few things when going out to find an investment or financial advisor.

To achieve such designations the advisor has had to meet requirements such as work experience, educational assignments, ability to follow guidelines and represented these skills by successfully passing a specialized proficiency examination.

It is therefore that you select an advisor that has achieved one of these certifications especially a high ranking certification. It is your savings and your future on the line and you don't want to be risking anything this way. When selecting an advisor after you narrow your options down it is also a good idea to ask for references. These references can be especially helpful to you so that you don't make a mistake.

Another way of approaching searching for an investment advisor is through your bank. This way you won't have to deal with the risk of coming across an adviser that doesn't have the necessary accreditations. Banks have several advisors that deal with clients. One thing to keep in mind though when deciding not to deal with an independent financial advisor is that banks tend to promote their own products and maintain a solid corporate line.

Online Investing and the Curse of Currency Conversions

Recently I had cause to curse the workings of the great financial giants that astride the currency markets. Now I'm not suggesting that I fell foul of currency crooks for millions but in it's own way I was frustrated by the money system. More Info on ND10X by Nicola Delic

I wanted to make an investment in a particular programme that traded in Euro's. As my home currency is the British Pound it seemed fairly straightforward. All I had to do was send my GBP to a payment processor, use their services to convert to Euro and make the investment. Unfortunately things didn't work out quite like that.

There was no problem sending the funds from my own account to the payment processor. Next was the conversion to Euro's. Cringing at the less than favourable exchange rate I was presented with I nevertheless pressed the submit button and hey presto my original GBP miraculously turned into Euro's.

Then I made the payment to the online programme. All sounds pretty simple really and there is where things went wrong. When I logged in to the online investment plan I realised that the amount of Euro's I was expecting wasn't in the account.

As I'd done a similar transaction in the previous week I wasn't expecting any problems so this was something of a shock. I submitted a support ticket to the online investment group and asked why the funds I had invested weren't as I'd expected. I was anticipating a reply to say that a mistake had been made and that my full amount would be credited.

What I got was a reply to say that they had invested the sum they had received from the payment processor. Yet I knew that the sum I'd converted was higher than I was seeing on the screen. Doing a little more research I discovered that the online investment programmes' account with the payment processor was designated in US$.

So, I'd converted GBP to Euro's in the belief that when I paid the investment account it would transfer the whole amount of Euro's. That's where my assumption went awry. What happened in practice was that when my account had been converted into Euro's the processor then converted the Euro's to US$ so that they could be applied to the investment company account. These US$ then had to be re-converted to Euro's to be placed with the investment programme. The result of all this was a cost I wasn't expecting!

Sunday, September 15, 2019

Trading Pro System - A System For Trading

If you want a good system for trading, then you have plenty of choices available. One of the stock trading courses that is creating a buzz is the Trading Pro System. Basically, if you are tired of speculating or making your investing decisions based on news coming out of Wall Street, and want a more refined strategy, then this system for trading is one to think about.

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This system reveals secret strategies used on a daily basis by hedge fund managers and market professionals that are rarely shared with outsiders. Equipped with these tools and many others you will be able to trade with confidence, knowing in advance what to expect; what are the promising trades to engage in and what positions to avoid.

The system for trading was designed by two traders, David Vallieres (also the creator of Tradingology) and Eric Holmlund. Because it was created by successful traders, it has more credibility amongst traders than a course that was simply designed by a bunch of college teachers with no real world experience. Just like any system for trading, there are both positives and negatives to this one. So before you invest in it here are some of the most important facts to bear in mind:

This system for trading is based on video instruction, meaning it is ideal for the visual learner. If you are comfortable with learning using this format, then you will find the course flowing smoothly and easy to grasp. There are 41 videos that contain a total of over 24 hours of instructions. Here you have the luxury to watch each video as many times as you need to have a good understanding before you move on to the next. If, on the other hand, you learn best by printed manuals, this may not be what you need.

Based on sound, never changing principals, this system is designed to teach you how to profit during a recession as well as when the economy is doing well. The creators of this product claim that, once you have mastered the system, you can become profitable by trading stocks for just 15 minutes a day. This is a rather bold statement to make, but since they back it up with a 60 day money back guarantee, I trust they know what they are saying.

One of the best things about this system is that it equips you with proven strategies you can take and use to find profitable investments over and over again. In other words, this system does not involve the use of some automated software package like many other programs. There is nothing wrong with those automated robots; however, some investors become dependent on them, and cannot find a good investment on their own. This course will help you learn how to spot the potential winners on your own, something robots cannot do.

The Trading Pro System is not for the lazy or faint of heart. It will teach you everything you need to know about trading stocks and options, but you will have to dedicate the time necessary to learn the system and then implement it. If you are willing to do your share then in a not long time from now you will know how to trade strategically, systematically and - most impotently - profitably, without having to guess what direction this or that stock is going to take. Treat this system for trading as a business and it will treat you well.

How to Practice Day Trading

Day trading is known to be profitable, once you get the knack of how to do it. It is one of those things that, to learn, you must do it. Else it would be like trying to ride a bicycle from reading a book about it. So the question is: how can I learn to day trade? One of the best ways is to "paper trade."

Technical Analysis, Just What Is It?

What is technical analysis and how can it benefit traders? Economic struggles across the globe have helped in inspiring a significant shift when it comes to individuals seeking solid employment through the traditional working environment. Entrepreneurial efforts are at an all time high as more people look to financial alternatives to escape this traditional working environment and capitalize on alternative sources of income.

Main Benefits of Trading ETFs

ETFs, or Exchange Traded Funds, are becoming more and more popular over the past few years. What began with just a handful of funds has become its own niche of investment with hundreds of funds which cover a variety of sectors and indexes.