Tuesday, June 5, 2012

How to invest your money: trading ideas

The economic crisis that the world is going through can be an important source of income for investors. The fact that most markets have reached record lows is a magnet for investment and can be very lucrative. For this to happen it is important to invest with the market knowledge and more appropriate to each of us. Here are some investment ideas, with different risks and proposals.

Low Risk Investment

- Bank deposits with a fixed term

The advantage of this type of investment is that it is a safe investment, with almost no risk, you know right now what percentage is going to win and the period of time it will take to make money.
When is a safer investment is less attractive and profitable. To make money from fixed-term deposits, the higher is the time to leave the money in the bank, the higher the interest rate.
The period you pick. Time limits may be from 3 months to 10 years, depending on your country and financial policies of the banks. You can choose the amount of money to invest, although of course, is also necessary to take into account the bank's policies and product type.
If you have a good amount of money still and do not want to risk losing it in other types of investments or business, then the fixed-term deposits are the best option.
According to the type of deposit account you choose, can provide an annual return of 2% to 7%. This is a kind of ideal investment for anyone who does not have investment experience or simply want to make your money grow with minimal effort and risk.

High Risk Investment

First of all, it is important to know that there are no investments with a high return and low risk. This is the truth, so opt for this type of investment only when you have a good bank account or that money does not make you miss.

- Investing in the Stock Market

The more traditional high-risk investment is to invest in the stock market. It is an efficient way to invest money and have a high profit, but it is necessary to know the companies. Therefore, it is to start as an investor in the stock market, have to deepen their knowledge about how the scholarship and how to always have the latest information in order to predict when stocks will rise or fall.
Anyone can invest in stocks if you want, but realize this type of investment requires financial knowledge, because these investments could have too much risk, but with the knowledge can decrease the risk.

- Investing in Mutual Funds and Bonds

For bonds, the easiest way to set a bond is through the concept of loan. When you invest in bonds, you are essentially lending your money to a company or government that has chosen. This institution, as a bargaining chip, will provide you with a receipt of your loan, along with a promise of interest, as a form of obligation.
Mutual funds are made up of many individual investments, which together, are applied in different markets and financial assets, like stocks, real estate, etc..
In other words, retail investors give their savings to a professional manager who, with the capital that has several available, discusses the risks and opportunities and manages the total investment with the aim of renting.
Where an investor wishes to, can redeem their investment fund.
As you might expect, the funds have different risk types, depending on the market where it invests, country, etc.

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