Trading is a skill that can be learned like any other

Trading is a skill that can be learned like any other, unfortunately most people who try trading will usually jump in to what I call a “hoping and praying” trade and end up losing big money. Trading doesn’t have to be this way, it is a skill that can produce consistent profits, it can even be a career.  Hello!  It’s mine.

Unfortunately, our education system today does not help everyone understand investment options. Financial literacy is important, we all need to understand how to invest our hard earned money. Trading is an area of the industry that lacks formal education which means that many of us don’t understand how to include trading as part of our investment portfolio.

You don’t need to buy expensive stocks

I’m sure you’ve thought about buying stocks like Apple, Google Facebook et al – but there are better ways to trade.  We all hear about big stocks like Apple and Facebook in the news. Many people think that this is the only way to trade. In fact, I would argue that women who are looking for conservative trades, or beginning traders should avoid those stocks. They are very expensive and are big movers.

Sure, this might mean that one day an investment could make lots of money, but it also means that it is just as likely to lose money. Instead, find stocks that have volume but trade with slower movements. There are also many more ways to trade rather than just buying or selling stock. Trading includes strategies in Futures, ETF’s, Forex and my favorite, Options.

Trading doesn’t have to be a full time job…but it can be

There are various ways to trade which provides ample opportunities to trade at various times during the day, using different time frames.  You don’t need to be in front of your computer all day to trade. You can find a trading strategy and market that suits your personality.

Whether you are a stay at home mom, on maternity leave, work part time or full time, trading is a flexible strategy that you might want to consider adding to your investment portfolio.

Define your plan and minimize risk!

This is where many beginners make their biggest mistake. Don’t put all of your money in one trade that your friend, hair stylist or dentist suggested. Do your own research and make sure that any trade aligns with your trading plan. Trading should not be treated like a lottery ticket.

Trading doesn’t have to be over complicated, but you will need to understand some basic trading knowledge.  Learn from someone who also trades a similar trading strategy.

It doesn’t have to be complicated

Trading can be complicated but it doesn’t have to be.  Some trader use all sorts of fancy charts and spend hours analyzing patterns.  I trade for a living and even I get overwhelmed when I hear some analysts talk about charts.

Sometimes too much information can be just as detrimental. It’s very important that you know that you are just as capable as anyone else to trade if you choose. You are capable of trading!

Sarah Potter is a full time independent day trader, speaker and educator.  She trades  ES, YM and TF Futures and also trades Options using mainly Iron Condor and Spread strategies.  Sarah shares her trading journey on her free trading blog at www.shecantrade.com which  includes trading tips, trading videos and strategies to learn to trade. You can also follow her on twitter @shecantrade.

While there isn’t much savvy investors can do to protect themselves from the uncertainties surrounding the upcoming fiscal cliff come 2013, they can certainly protect their invested money in other ways.

The results were surprising.  For one, over 17 million investors with the 3 largest online brokers – Schwab, TD Ameritrade, and E-trade – are paying collectively at least $1.8 billion too much in fees for the same trade execution and services they could be getting elsewhere more affordably.

Next, NerdWallet researched all the most popular online brokers to see whether consumers are overpaying and if there’s really a difference between trading with a “name brand” brokerage versus a discount broker that you may not have heard of: not so much, it turns out.  NerdWallet investigated financial statements and disclosures to find 10 surprising pieces of information every investor should know before diving in and opening up a brokerage account with a particular company:

1. “We Use the Exact Same Execution Service as the Cheap Guys.”

2. “We’ll Charge You When You Trade – And Even When You Don’t.”

3. “All Your Data Is 10 Minutes Old.”

4. “You’re Paying for Our Advertising Instead of Better Service.”

5. “Deep Discount Brokers Are Just As Reliable.”

6. “You Can Trade For Free – Just Not With Us.”

7. “Our Deals Don’t Apply to You.”

8. “Our Fees Are Negotiable”

9. “We’ll Give You Good Service, But You’ll Pay Up for It.”

10. “Switching Brokers is Cheaper Than You Think.”

For more detail on each of these findings and how to navigate them, please read the full Top 10 List.

Don’t Forget to Shop Around
The number one thing you can do to become a better investor in 2013 is to do your research when it comes to picking the right online brokerage account.  Always be sure to research your options upfront and read the fine print.  NerdWallet’s free and easy to use brokerage comparison tool allows investors to easily sort through the hidden fees to compare all 74 online brokerage accounts and find the one that best meets their personal trading needs.

Additional NerdWallet Resources: 

• The Top 10 Things Your Personal Broker Won’t Tell You
• Tool: Compare Brokerage Accounts (free)
• Study: Why You’re Overpaying for Brokerage Services
• Analysis: Investors Can Receive Quality Brokerage Execution at a Fraction of the Cost

About NerdWallet Investing: NerdWallet Investing seeks to empower investors by providing unbiased and transparent access to investment management and financial markets information.

Congratulations, you have finally hit a point financially where you are ready to begin investing. Yet you are concerned because you don’t have more than $50 to $100 to invest each month. How will you be able to meet all those “requirements” for investing and still make good investment decisions? Now instead of being excited that you have extra funds you begin to feel like you can’t invest because it still is not enough.

Stop, before you blow that $50 it is enough money to invest wisely.

The three “requirements” for wise investing that may get in your way are: diversification, asset allocation and finding a place that will let you invest without a big chunk of money to put down. Following is a look at how to solve each of those problems and get you investing today.

Issue 1: Diversification

Diversification is when you attempt to reduce your risk by holding different asset categories and also different types of investments within each asset categories.

• Asset categories examples are: stocks, bonds, real estate, commodities and cash.
• Different types of investments within those categories would be: small stocks, large stocks, corporate and government bonds.

Getting complete diversification can be difficult when you are first starting as you only have so much money to go to different investments. Taking $50 and buying one stock will not allow you to be diversified.

In order to get diversification in each asset category you should use mutual funds as your investment vehicle. Individual stocks or bonds are too hard to get adequate diversification, because you would need at least a dozen stocks to get diversification. This would be hard to do without a lump sum to start investing with. With mutual funds you are able to invest in multiple stocks or bonds immediately, thus gaining instant coverage of an asset category.

Additionally to diversify even more than just a across a specific size of stock, such as large stocks, you should consider investing in funds that will allow you to have access to different sizes of stocks. An example would be a total market index that has small, medium and large firms. Thus you get broad coverage of all stocks.

Issue 2: Asset Allocation Strategy

Asset allocation is how you choose to spread your money across different types of investments in order to reach your goals. Asset allocation is different from diversification in that asset allocation is about what tools you use to achieve your financial goals, and this might not lead you to diversification. For example if you are 21 and saving for retirement you might choose to put all your money in stocks. While you can spread your funds across multiple stocks, your portfolio as a whole won’t be diversified because 100% is in stocks. Thus you don’t have anything to smooth out the down cycles of the stock market.

For now we are going to assume that you do want to be diversified across multiple asset categories. (Sample Asset Allocation Chart)

You can achieve this a few different ways:

• Investing in a balanced fund –a balanced fund holds both stocks and bonds. Typically 60% stocks and 40% bonds.
• Investing in a Lifecycle fund – these are designed to give you a good asset allocation specific for the time frame that you have left to invest. You select the year you want to retire and it adjusts the allocation as you get older. So if you are 21 then you won’t be overly conservative like you would be in a balanced fund.
• You could split your available funds to invest into a stock fund and a bond fund. Let’s say you have $100, you might put $25 into a bond fund and $75 into a stock fund.
• Begin your investing in a 401K. This will allow you to put less than $25 into a given fund, because there are no minimums just percentages of salary and an allocation. If you are taking this option you don’t need to worry about issue 3!

Issue 3: Finding a Low Minimum Investment

Once you have decided how you are going to try to allocate your money into mutual funds you need to select a low minimum investment fund. In order to do this you will need to find a mutual fund that will waive the minimum investment when you set up an automatic investment program.

There are a handful of companies that will waive the minimum if you promise to put money in the fund every month. Some of those companies are T. Rowe price, Homestead and Tiaa-Cref. You can determine if a fund does this a few different ways.

• Morningstar.com - Look at the Purchase Page and then find Initial AIP. I have found that this is not accurate 100% of the time, but is a good place to start.
• Call the company and ask!
• Read the prospectus or the application – you are looking for it to say “Minimum investment waived with automatic investing”

After selecting a fund you want to invest in, go directly to that fund company to open the account. By doing this you avoid the fees and minimums required by a brokerage company, which can be hefty. Most companies will have online applications, or let you download the forms online. Fill out the forms; and you are now officially investing!

Quick Summary:

• Select mutual funds as your investment tool.
• Find funds that cover multiple asset categories such as balanced funds, life cycle funds or Total market index funds.
• Find a company that allows for automatic investing with no minimums.
• Sign up.

Congratulations, you just set up an investing program that meets the “requirements” and you are on your way to creating wealth!

Andrea Travillian runs Take A Smart Step a site dedicated to personal development, including personal finance, health, career and relationships.

Private banks have emerged as a reliable platform for those in need of wealth management solutions. If you are a high net-worth individual, then private banking is more likely to suit your needs. You’ll enjoy a number of benefits that are embedded in private banking. Private banks provide their clients with several extra services over regular banking, which include:

· Mortgage consulting

· Commercial lending

· Retirement plan administration

· Retail banking

The good news is that your bank will tailor these services in line with your needs. Unlike other types of financial institutions, your needs may be satisfied in a timely and confidential way. The input of private bankers is integral in guiding you on how to manage your assets.

In the private banking sector, there is the tendency to go for a banker with a charming personality. However, this does not mean that his or her services will be above par. If you are not careful, you could end up with an incompetent private bank that is riddled with slow responses, inept investment advice, error-prone trade executions and trade confirmations among others. These problems could accrue in situations where your wealth management needs are handled by inexperienced bankers.

Wealth management is a service that cannot be taken lightly considering the importance of your assets. This is why you must be extra cautious when looking for a private bank. The following tips could be helpful when embarking on this exercise:

Looking for qualifications of the adviser

Before entrusting your assets to a private bank, ensure that its employees are qualified. The advisers must be knowledgeable about the various issues surrounding wealth management and banking. This demands that they should be in possession of certain charters such as:

· Certified Financial Planner

· Certified Public Accountant

· Chartered Accountant

· Chartered Financial Analyst

The right private bank must ensure that its employees have undergone extensive training to handle customers correctly. This means that you will be treated with the proper decorum to ensure that you leave the bank a satisfied person. A qualified private banker will also enable your investments to grow immensely. He or she has the ability to undertake your special financial needs with little difficulty. This entails offering custom lending solutions that are characteristically absent from retail financial institutions. Two of the most trusted banking and financial service options Australian readers have are with NAB Private Banking and JBWere Wealth Management.

Consult widely

The importance of consulting widely cannot be understated. It is imperative that you ask around about any private bank or advisers that you may wish to engage. Do not rely on the advice of other wealth management advisers as their opinions may be biased. While exploring your options in the company of experts, there are some questions that you need to ask. For instance, you should inquire whether the bank is knowledgeable about your profession. It is also important that you are aware of the person managing your assets. Before making the final decision, you must also be aware of your risk tolerance. These questions will form the benchmark to enable you make a concrete decision.

Consider the size of the bank

The size of the private bank should be a major part of your decision. Generally, large private banks have a reputation for providing more efficient services than smaller ones. This emanates from the fact that they are equipped with qualified customer service departments, research centers and experts. At these private financial institutions, you will also enjoy additional services like secure e-banking systems, investment seminars and proprietary equity research. If you are in a position to engage the services of such institutions, you should not hesitate to do so.

Forex tends to be a financial topic that seems appealing but out of reach for many.  Why?  Unless you travel in certain financial circles, then you don’t really hear much about it or about the experiences of many people who actually utilize it successfully to make money.  But it seems so interesting and an easy way to make money!  I’d love to one day fancy myself as a Forex trader but there’s so much to learn amidst concerns around the sputtering US economy.  For some traders, these concerns may cause them to stay on the sidelines until economic conditions improve.

Consequentially, there’s been a fall in transactions on Forex, still, they continue to attract a large user base.  Today we’ll talk about why that is: the appeal of Forex, risks and types of trading accounts.

The Appeal Of Forex

Despite a global fall in transactions, Forex attracts a large user base because the bar for entry remains low (around $25) with free training to do so.  It remains a viable alternative for traders concerned about the future of the US economy.  Forex allows the trader to sidestep US economic issues and trade on foreign currency as a portion of their investment portfolios.  Forex is also available 24 hours a day and all you need is an Internet connection to access it.  Another factor that makes Forex appealing is the potential to make a large profit on a relatively small investment.

What Are The Risks?

With so many pros inherent with Forex trading, there are some risks associated with it that one must consider.

• Internet:  One must make sure that their Internet connection and computer are running smoothly at all times.  Of course, we all know things happen, servers shut down and our laptops/PCs mysteriously freeze or shut down depending on the current activities.  This can affect transactions in process so be aware that the things can happen during the course of a trade.
• Greed:  This one is easy.  With the bar of entry so low and the potential to make great money high, it makes sense that some may get into this with eyes bigger than their wallet can manage.  Be sure to utilize the proper stop loss tools to minimize risk
• Economic Conditions:  Since ongoing issues within foreign and domestic economies can change in an instant, it is important to remain abreast of all issues and how they can possibly affect your standing on the foreign exchange market.

Are There Risk Free Forex Trading Accounts?

Yes, there are risk free practice accounts that allow you to practice without losing your own money.  Once you’ve tested the demo account, then you can move on to a funded account to get started.

What Types of Forex Accounts Are Available?

Take a look at the trading software from Alpari as it lays out the trading accounts available to the novice and experienced user.  You’ll see there are accounts ranging from relatively small deposits on up through large accounts which require more capital.

Do you invest in Forex?  If so, what has your experience been?

1.  Educate Yourself
2.  Get Licensed
3.  Register as a Forex Broker
4.  Start Trading
5.  Keep Learning

Are you ready to become a broker?  Check out www.cmcmarkets.co.uk

This post was provided by UFXMarkets, an online broker for the Forex Industry which also
specializes in trading commodities, CFDs and indices.

Facebook entered the world and soon became a world others sought to enter. Despite millions of people being skilled FB users, not everyone fully grasps the concept of the company going public, as it did on May 18 at 9:30AM. FOX Business Network’s Cheryl Casone breaks down the good, the bad and the ugly about the FB IPO, and some tips on investing for beginners.

The Good: The average investor can participate. There are mutual funds that focus on Internet and media stocks that you can buy that will give you exposure to the shares. Fidelity is one example. Ask for a breakdown of what companies they own. Zynga, LinkedIn and Groupon have been other favorites. If you have an account with E*Trade you may still have a chance to buy some shares tomorrow. It will depend on how many investors also want the stock.

The Bad: There is so much hype that many financial analysts are worried the stock is going to sell for more than Facebook is worth overall. For example, Facebook makes money from advertising. GM doesn’t think ads on Facebook are worth buying. Ford does. Who is right?

The Ugly: If you don’t already have a piece of this monster IPO, it may not be worth it for you. There are plenty of technology companies that make phones, televisions, and computers. Is Facebook so important you need to have it on day one? Or two?

Investing, in general, is full of risk, reward and responsibility. Here are some tips for beginners looking to invest in the market:

-The best way to invest in the stock market is to buy mutual funds, index funds, or exchange traded funds. Mutual funds have a paid manager but you do pay for that person and their stock picking skills. If you want to be frugal an index fund is just a basket of 20 stocks, for example, in a particular sector weighted from big to small in their field (energy, technology, or retail for example).

Exchange traded funds (ETFs) are several stocks grouped together but you buy it under one “ticker” just like you would buy one share of McDonald’s.

-If you have never purchased a stock on your own go to the websites of ETrade, Charles Schwab, or Ameritrade. Follow the instructions to set up your account. You can either mail in a check for them to deposit into your account or go to your bank and set up a direct transfer. You will have a username and password you will need to keep on hand in a safe place. Make sure it is easy to remember.

-There are pages and pages of stocks. Simply look through the site and see what sections interest you whether its energy, pharmaceutical, retail, or insurance companies. These sites will give you details about each company and the choice is yours which ones you wish to buy. You decide how many shares you want judging by the price per share and click the “buy” or “purchase” button. It is the same as buying jeans on the internet.

-My advice: buy companies you know. It may surprise you that the brands or entities you find exciting often have a very similar impact on others.

For many people, the idea of managing finances in a responsible and effective manner is a very new concept. Yet at a certain point in our lives, many of us begin managing our own funds, and for this reason it is extremely important to understand responsible investment and money management.

Personal finance is not simply about picking out stocks to invest in and hoping for gains. In fact, there are entire forms of investment that are more about maintaining stability than about hoping for gains. For example, one type of investment that has grown in popularity in recent years concerns putting your money behind a specific resource: gold.

While the idea of investing in gold probably seems strange, it is actually a very efficient way to invest your money. Just start out by going to a website such as Bullion Vault, which allows you simple and quick ways to purchase gold bullion and have it stored at any of a number of banks worldwide. Sites like this are continually updated with the latest prices for gold bullion, and are used by thousands of people every day, meaning that they have earned reputations for keeping your money safe and easy to manage.

There are various reasons for investing in gold bullion, the main one of which concerns gold as it relates to various world currencies. Again, the idea of purchasing, literally, blocks of gold probably seems a bit strange to you if you have never explored the option before. This is because we do not think of the value of a particular resource rising and falling in the same way that the stock of a company might. Taking this a step further, however, the value of gold bullion also remains relatively stable in relation to world economies and currency, and it is for this reason that many people entrust their money to this resource.

The best way to explain this is to think of your money in terms of a specific amount. Consider if you had $100 to either invest or hold onto. If you decide to hold onto it, and the economy declines, the value of the U.S. dollar may decrease as well, meaning that you still have $100, but that money is less valuable than it was when you started. Meanwhile, had you invested the $100 in gold, which remained at a constant value while the dollar declined, you could maintain the same value of your wealth and choose to sell your bullion back for currency whenever you choose. This is only one example, and does not apply to all situations or economic times, but it does explain why you may want to at least consider investing in gold bullion.

Open a foreign currency account today and start investing in gold bullion.

Tony Bridges is a freelance writer and programmer who has contributed to a number of online resources in the fields of investment, economics, and finance.

Don’t knock it until you try it!  Most people don’t invest in gold because they feel that it’s not as easy as it is to invest in paper. It’s unfortunate because that’s simply not true.

Investing in gold is just as easy to acquire if you know how to do it.

Why Invest In Gold Now?

Let’s talk about why people are investing in gold before understanding how possible it is to invest in it. You’ve most likely noticed that interest rates have plummeted and they aren’t rising anytime soon. The value of the dollar and euro has sunk and they don’t seem to be getting any lifesavers.

What this means is that many people are turning to gold because that’s what investors historically have done. As soon as the economy takes a downturn they run to the gold market. So what happens when everyone starts buying? There’s less available and whenever there’s a high demand for something, prices soar.

Now, with the economy stuck in the gutter, gold continues to be bought up before it’s even found. Experts are saying that the prices for it will rise in 2012 and continues all the way up to into 2014.

If you’ve heard the saying, “Buy low, sell high” then you know that right now is the time to buy. Of course, you could have bought years ago and gained much more from your investment but hey, you can’t go back in time. All you can do is look forward and control your destiny.

Gold is lower now than it will be in another year, so take advantage of it. Don’t look back in two years and think, “I really should have bought then.”

Okay, so now that you know why you should invest in gold, let’s start talking about how you can invest in it.

How to Invest in Gold Online

Online investment in gold is easy!  All you need to do is find a reputable company, which is easy to find because some of the most prominent ones are backed by the Better Business Bureau and the most reputable precious metal associations. Just make sure you do your research so you aren’t buying fake gold or sending your money into a scammer’s wallet with nothing in return.

One you find a website you trust you can decide whether you want to buy gold coins or bullion. Usually, people who want to invest a few thousands of dollars will go with bullion while modest investors stick with the coins.

When you decide what you want to buy, you can start to stalk the prices of them. Do it for about a week or so until you get comfortable with the highs and lows of the market. When you see a price that makes you want to jump on it because it’s lower than what you’ve been seeing, all you have to do is lock in the price with your credit card online or by calling the company.

After you’ve locked in the price, you’ll have to make arrangements to prove your identity to the company and send them the money. This can usually be done with wire transfer or personal check. Each company has different requirements for how long you have to send your payment, but it’s usually 48 hours.

Once you have made your payment and proved your identity, you are a proud gold investor! You can then have it sent to you for storage or if you are using a company that also has storage capabilities, you can purchase that option. It all depends on what you want to do with your gold.

Gold IRA

A gold IRA will protect your investment and can be bought as an ETF or in its physical form – coins, bars, jewelry.   Your Gold IRA can also help you avoid:

• Rising inflation
  
• Rising interest rates
  
• A volatile stock market
  
• Weakening dollar

Planning for inflation is a smart move and Lear Capital is a great place to get started!

So now that you know how simple it is to invest in the gold market, it probably doesn’t seem so intimidating, does it? Go ahead and check into it. You’ll be amazed at how lucrative this market can be and you’ll get excited when you finally make that decision to plunge into it.