Learning to Recognize Investment Risks

By Sara Ferguson

As an investor you face many risks, the most obvious is financial risk. Companies go bankrupt, trading decisions go bad, the best laid plans go awry, and you can end up losing your money " all or some of it, whether the economy is strong or weak. What puts your finances at risk? Here are some types of risks below.

Interest rate risk: Interest rates, set by banks and influenced by the Federal Reserve, change on a regular basis. When the Fed raises or lowers interest rates, banks raise or lower interest rates accordingly. Interest rate changes affect consumers, businesses, and, of course, investors. Whether rising or falling interest rates are good or bad depends on the type of investment.

Market risk: No matter how modern our society and economic system, you cant escape the laws of supply and demand. When masses of people want to buy a particular stock, it becomes in demand, and its value rises. That value rises higher if the supply is limited. Conversely, if no ones interested in buying a stock, its value falls. This is the nature of market risk. The value of your stock can rise and fall on a whim of market demand. Your investments are impacted on that demand or mood of the market.

Inflation risk: Inflation is the growth of the money supply without a commensurate increase in the supply of goods and services. For consumers, inflation shows up in the form of higher prices for goods and services. Inflation risk frequently is also referred to as purchasing power risk because your money doesnt buy as much as it used to.

Tax risk: Taxes dont affect your investments directly, but they do affect how much of your money you get to keep. To help minimize tax risk, be aware of the tax implications and obligations associated with the different types of investments. Because the tax rules are often very complex, differ for different investment vehicles and scenarios, and change regularly, talk to your accountant, tax advisor, or tax attorney for guidance.

Political and governmental risks: If investment vehicles were fish, politics and government policies (such as taxes, laws, and regulations) would be the pond. In the same way that fish die in a toxic or polluted pond, politics and government policies greatly influence the financial stability of companies and commodities, the value of currencies and so forth.

Emotional risk: Emotions are important risk considerations because the main decision-makers are human beings. Logic and discipline are critical factors in investment success, but even the best investor can let emotions take over the reins of money management and create loss. For any kind of investing, the main emotions that can sidetrack you are fear and greed. - 23223

About the Author:

How to Invest Today is dedicated in teaching and keeping you up to date on the information you need to invest. Investing is a always changing world with constant pitfalls. How to Invest Today trys to help you around them to avoid getting trapped and keep you informed of the latest information.

Real Estate Short Sales - Is It Possible To Make Money?

By Annabella Sherie

People everywhere are talking about how great and easy it is to begin making money with real estate short sales; however is it really easy to begin profiting and making huge money with real estate short sales?

While people make money off the real estate market on a daily basis; it does not necessarily mean that you will. Have you been wondering can I survive as a real estate short sales investor?

On Hand Cash: You may be searching the internet for no money down techniques; however you should always have some cash on hand. Will you be able to make the payments if you have to hold onto the home longer than you anticipated; this is where so many new investors fail.

Regardless of all the hype that you see on television or anywhere else; the truth is that you should always have money for your projects.

Goals: What are your goals and why do you want to become involved with real estate short sales? The truth is that if you do not know what you would like to accomplish then it will be very difficult to find a great method that actually puts money in your pocket.

Team: Everyone who becomes involved with real estate investing understands the importance of having a great team on their side. You can not do all the work by yourself therefore it is important to find out what it takes to begin making money with real estate.

Invest In Education: If you really want to give the real estate investing path a go; then you have to take the time to invest in education. It will be money well spent and will help you become a success.

Do not forget to visit our site below and get some valuable tips on how to begin profiting from this huge market. Do not forget to sign up for our FREE course that provides some great tips on investing. - 23223

About the Author:

Learn The Truth About Short Sale Credit Consequences! Get Your FREE Ecourse On How To Protect Yourself When Buying Short Sales!

Never Get Your Feet Wet In Forex Trading Without Forex Education

By Bart Icles

If you are a newbie to the forex trading world and would like to be armed with the knowledge and skills that you need to be developed so that you can successfully trade in the forex market, or if you are already a forex trader who have attempted several times in being successful in forex trading but cannot seem to be able to achieve the results that you desire and is having a hard time understanding the different forex signals that are available to you that's why you are losing more than you are making in the forex market, then you should really have the strong foundation of a forex education.

A forex education will be able to give you all the necessary knowledge base that you need to have about the forex market and the different runarounds in trading in it. You should always be wary in forex trading especially if you are prone to succumbing into get-rich-quick schemes since these are, most of the time, scams of some sort. Don't get it wrong, though. The forex market is regulated by the government, The United States Commodity Futures Trading Commission (CFTC) in particular, but more often than not, scams cannot be prevented from sprouting up. To ensure that you are more or less protected from these fraudulent activities, arm yourself with a good forex education. Not only will a good forex education protect you from scams, it will also make you trading-savvy and can make you trade like a pro in no time at all.

A good forex education will empower you with the essentials in the forex market since you will be able to grasp all the twists and turns of trading in it. It will also turn you into a forex trader who almost always makes the right decisions when trading since it will make you have the right amount of guts solely acquired through instinct and the foundation of what you know about the field. It will also protect you from the negative aspects of forex trading like scams that can make you lose your hard-earned money in a single poof since the right knowledge will make you more cautious of these things.

A good forex education will also make you more knowledgeable in all the runarounds of the operations of different currencies. It will also allow you to track all of your forex activities in the right manner. It will also equip you with the forex trading power that is necessary to be successful.

Never get your feet wet in forex trading if you haven't had the opportunity of having a good forex education. Doing so would be like committing financial suicide. - 23223

About the Author:

A forex blog is a powerful tool in your forex education. Learning with forex blogs takes dedication and a good writer and teacher. But is well worth it, once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Futures commodity trading basics

By Mark Andrews

Many people see pictures of the large crowd of traders standing in a crowd yelling and signaling with their hands, holding pieces of paper, and writing frantically. To the outsider, it looks like chaos. But do you really think that there's chaos going on in the world's futures pits?

However, those who work in that environment know exactly what's going on, and they're very organized. In this article, you'll learn a bit about the trading of futures, so that you will know how the process works.

Today's futures trading floor is much different than it was when it first began quite a long time ago. They'd set up a stall on the roadside, and sit and wait for someone to buy something. Often, their crops would spoil because the farmers had no way to preserve or store them.

Because a lot of farmers had the same idea, at the same time, demand and the average price would be a lot lower. Demand would be lacking, and supply would be too high. Conversely, in the spring demand would be raised, and commodities and crops would be in very low supply.

Many farmers would do the same thing, and as a result demand and prices would be driven lower. The opposite occurred in the spring time- supplies would decrease and demand would spike drastically. Until recently, the world didn't have a method by which to shop for commodities at a competitive price. The advent of "forward contracts", progenitors of the current futures markets, signaled a new era in trading.

It doesn't really matter where the buyer or seller is, they will get the same general information that everybody else has. Farmers, banks, producers, and companies can very easily buy or sell- the only thing they need to do is to contact their broker.

Regardless of the speculator's location, the playing field is leveled because everyone has access to the exact same information. It could be one of your competitors who takes your trade, or another speculator. - 23223

About the Author:

Learn more on corn futures trading now!

Passion before Marketing Anyday!

By Kamil Dixon

To make money online many people dive right in before they have a solid foundation. You know that to be a rocket scientist, a doctor, a bricklayer, a construction worker, an office worker, a teacher there are prerequisites, things you must learn, before you can be successful, you don't just jump right in unprepared.

The same applies to the Internet marketing industry even though there are unsavory people out there who'd have you believe it's a "Walk in the Park" and requires no more than the belief that you can just do it.

Being an Internet Marketer can be a breeze compared to a 9 to 5 job, but it's your responsibility to be disciplined and actively dictate your income. When you Market your passion, people feel your confidence, and it makes your work much more of a past time than a task.

Most people will not make a dime online and yet there are others who will make more in one month than most people make in a whole year. Why is that?

My answer begins with the age-old chicken or egg question, "what comes first the chicken or the egg"? Personally I vote for, well never mind, each argument you or I make comes back to the same old conclusion - I have no clue and I don't think many of us do either.

But one thing I do have a clue about and know for sure is that to make money online you must first have Passion for the company products and/or service of any Internet business from which you expect to make money.

Passion in this sense simply means that you've researched and like the company and products or services. It is then that you translate that like (or Passion) into the education, excitement and work that usually accompany Passion.

There's a lot of people that can sell anything on the Internet.. Why? Because it's possible if you understand the basic concepts of marketing and what people want. But a safe way to approach any business online, is to have a passion for what you promote

Now, I'm not trying to make anyone believe that Passion is the only thing necessary. Because to be successful you must also have a good website, good marketing, widespread advertising, company support, effective keywords, and etc. Those things are often learned from the company you join - but sidestep Passion and you reduce your chances for success dramatically.

Plain and simple, if you have no passion in what your company promotes, you wont invest the time needed beyond your comfort zones.

Internet marketing work is typically not all that difficult or time consuming but it does take motivation caused by Passion to get you off and running with a sustained effort so that you won't stumble.

You have a great resource in the Internet search engines to search about the Internet Marketing industry for business opportunities, USE IT!

Search for something that you can promote with dignity, something that reflects great principles and gets you excited in its potential. Something easy to understand with great products and services that are sell-able for which you can have Passion. If you don't find it the first couple of searches move on, you can find the right opportunity with everything above. Invest the time and it will pay you interest in the future.

Don't choose a company for anything besides confidence and security that you can stand by that company; remember when you hear that others are having crazy success, making boat loads of money etc, don't be fooled by sales scripts, find substance you believe in and go from there.

Note: With experience, eventually you will learn to understand what people want and how to present anything you believe in, when that time comes, you'll know you are no amateur anymore, now you're an Internet marketer.

There's more to learn but the point of all of this is to tell you that passion is essential. If you don't first find the right company products and services to be passionate about, all of those other steps may just cause you a lot of frustration instead of bringing you great success.

Lacking passion for what you promote is a foundational mistake you have to avoid. There's a lot of opportunities to choose from, hit the search engines and choose wisely, and flow from there - 23223

About the Author:

Meet the author: Kamil Dixon makes a killing Marketing Online and can show you the game. Go to his site to learn "The Right Way" to Make Money Online.