Archive for the ‘Investing Articles’ Category

Get Started on the Forex Market by Using XForex

April 24th, 2017 No comments

Something that many people do not understand about the Forex market is the fact that it is impossible for you to trade directly on the market. Every trade that you place needs to be done so through a qualified broker, either online or off-line. Although it is certainly possible for you to choose an off-line program, it is much more convenient for you to choose one online and have your own personal account available. It will then be possible for you to trade in your own home, using your own computer.

There are a number of different choices that are available for you as far as the forex platform that you are going to use. The one that we are currently using, and have been recommending to others is xForex. There are a number of different reasons why we enjoy using this platform, and perhaps too many for us to cover in this one article. That is why we decided to narrow it down to the top three benefits that you will receive whenever you use this online platform for your own trading practices.

Customer service is one of the most important things that you’re going to have look for whenever choosing an online platform for yourself. As it turns out, xForex does an excellent job of providing you with this customer service and they do so 24 hours a day. This could alleviate a lot of frustrations if you experience problems during the off hours.

Whenever we test a platform, customer service is one of the first things that we look for. We typically send them several different questions in order to find out how timely they respond and how accurately they respond. This platform was able to answer all of our questions accurately, and to do so even whenever we e-mailed them during the middle of the night. Not only do they have e-mail access available, you can also pick up a phone and call them or use their online chat.

Another thing that we look for is the availability of a low starting rate so that you do not have to put all of your money into the account from the very beginning. This particular platform at a very attractive minimum deposit of $100. This enables anybody to get started in trading on forex, without having to worry about putting all of their money on the line at the very beginning. You can find your account with a credit card and have the funds instantly available to you.

The final thing that we like about the xForex platform is that they are very user friendly for people who are just getting started. Through a series of online tutorials that is available on their website, you can not only get comfortable with trading but you can learn everything that you need to know about it. Take your time and look through these tutorials, they will benefit you.

You certainly do have a lot of different choices whenever it comes to the platform that you are going to use. By choosing a reliable provider, such as xForex, you will be a trading in no time at all.

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Tax Deferral as an Investment Strategy

April 7th, 2017 Comments off

Deferring taxes on your income is an investment strategy in which income taxes are paid at a later date for money invested now. The benefit of tax deferral is that it provides more money for you to invest now.

For example, you are able to deduct $1000 from your taxable income this year and invest it into an interest bearing account, and in return, this deduction allows you to pay approximately $200 less in income taxes for the current year. You now have $200 more than if you had not invested the $1000. If you add the $200 you deferred in taxes to the $1000 you have already invested, you now have $1200 growing in your investment.

Another type of tax deferral used by investors is the deferment of taxes paid on interest earned. The dollars invested have already been taxed, but any interest earned is tax free.

Investment Vehicles Tax deferred accounts shelter your money from taxes until you begin making withdrawals in the later part of your life, when you’re likely to be in a lower tax bracket. The type of investment vehicles best for you depends on your situation.

You could opt for the plan 401(k). This vehicle is open for you only if your employer offers it. This will allow you to make contributions that are deductible by tax but grow as deferred tax until you start withdrawing the money. Depending on your employer, your 401(k) might come with a bonus, when your employers add to your contributions, doubling it. You could make anywhere between 25%-100% on your contributions, if your employer adds to it.

By using the 401(k) planning, you could add more to your retirement plan, than most other plans. You can add around $9,500 to your retirement plan, and your employer can add another $30,000 every year. You can also add the yearly bonuses that you receive to this plan to help your retirement money grow even faster. If you leave your job or wish for more freedom with your money, you can always roll your assets over into an IRA account.

A 401 (K) may work for a beginner at investing, someone who does not know how to invest in stocks or which are the best stocks to invest in.

Another type of plan offered by an employer is the 403 (b). This plan is for public school and non-profit organization employees and it is tax deductible and tax deferred. You can contribute up to $9,500 of your annual gross income each year to this plan.

The other plan is the 403(b) which again has to be offered by your employer. This plan is meant for employees who work in public educational centers or other non profit organizations. Similarly in this plan the money is tax deductible and the investment is tax deferred and you can contribute up to $9,500 yearly. With this plan however you need to be aware of certain risks. You have to invest the money in a tax sheltered annuity which will result in high sale charges and the rates they give will not always be guaranteed.

Any person who has an earned income or the spouse of somebody who has an earned income can open their own IRA and add up to $2000 to it yearly. The earnings are not subjected to tax unless you start withdrawing from the account, but you will be charged penalty if you start withdrawing before the age of 59 and a half. However, even if your money is not tax deductible, they will be tax deferred.

Under the IRA schemes, there are different investment options, but it all depends on the custodian of the money. It is with the IRA that you will have the maximum options as compared to the other employer sponsored investment schemes.

The Keough plan is available to individuals who work for an unincorporated business or are self-employed. You can contribute up to 25% of your earned income up to a maximum of $30,000. All contributions are tax deductible and your earnings accrue tax deferred. You can contribute much more per year with a Keough than with an IRA. You can elect to contribute a fixed percentage annually, a different percentage annually, or a fixed amount which you decide on. There are three types of Keough plans available and a lawyer can assist you in setting one up.

The Simplified Employee Plan or the SEP is the other type of investment vehicle available. However, this scheme is open only to those business companies that employ les than twenty five people and at least half of them have to be a part of this plan. Under this plan, you can contribute up to $7,000 and the employee ca pay the rest with a maximum of $30,000.

All the above mentioned investment vehicles are divided under these two categories: Qualified and Non – qualified plans.

The 401(k) and the 403(b) are the plans that are qualified. These are those employer sponsored investment plans that offer good benefits but depend upon the kind of plan that the employer draws up. For example, the 403(b) plan needs you to invest the money in tax sheltered annuities. As compared to this, 401(k) offers a wider selection of more conventional investment options, such as fixed interest annuities, company stocks etc. but is yet restricted as compared to the non – qualified plans.

The non – qualified plans allow more freedom regarding when or if you want to make a contribution. All IRA’s are a part of this category. Usually investors find it easier to work with non – qualified plans than with qualified ones, they require less reporting and regulating and investors have more control over their investments this way. Often contributions made to these plans can be deducted from tax as a business expense.

Most investments made with the vehicles we have been discussing fall into one of two asset categories: The first is debt and the second is equity. As an investor, you are either an owner or a creditor. Equity owners are entitled to all free cash flows that exceed the debt payment obligations of the underlying economic entity. Creditors receive priority in agreed-upon future interest and principal payments.

When choosing a retirement plan, you want to be certain of the types of investments permitted with your plan. Do not open an account that does not give you the freedom to choose your own investment options, whether they are debt or equity investments.

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Determining Where To Invest

March 12th, 2017 Comments off

There are several different sorts of investments out there, and there are several factors, which you should use to determine where you should place your money.

Of course, determining where you will place your money starts with researching the different kinds of investment on the market, determining your risk aversion, and determining your investment style and your financial aims.

If you wanted to buy a new car, for example, you would do quite a bit of research before making a final decision and a purchase. You would not consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works in much the same way.

You will, of course, learn as much about the investment as possible, and you would want to see how past investors have done as well. It’s just common sense!

Does learning about the stock market and investments take lots of time? Yes, but it is definitely time well spent. There are numerous books and websites on the topic, and you can even take degree level courses on the subject, which is what stock brokers do. With access to the Internet, you can actually play the stock market with fake money in order to get a feel for how it works.

You can make pretend investments in a pretend portfolio often called a ‘Wish List’ and see how they perform. Do a search with any search engine for ‘Stock Market Games’ or ‘Stock Market Simulations’, although almost every online stock broker provides these services. It really is a fantastic way to commence learning about investing on the stock market.

Other types of investments outside of the stock market do not always have simulators, so you must learn about those types of investments the hard way – by reading.

As a potential investor, you should read thing you can possibly get your hands on about investing, but make sure you start at the very beginning of investment books and websites, or, you will soon find that you are are hopelessly lost.

Finally, talk with a financial planner. Tell her your aims and ask them for their proposition. This is what they do for a living! A good financial planner can easily help you determine where to invest your funds, and help you set up a plan to reach all your financial goals. Many planner will even show you about investing along the way, so make sure to pay very close attention to what they are saying to you!

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Day Trading Forex By Using Common Sense

March 9th, 2017 Comments off

I really know that the concept of learning how to day trade the forex market is extremely puzzling to most traders. They don’t quite get how the entire process works. Unfortunately, many traders feel like you have to be super intelligent to be able to pull it off. I guess I can understand why traders would feel that way. I think most know that most people that tried to day trade the forex market, haven’t done so very well.

But in actuality, there is no reason why you cant have any success. Trust me you dont need to have a degree from an Ivy League college.

Unfortunately, so many traders just flat out cannot handle their emotions when they trade. I don’t care which trading method you choose to use. I don’t care if the trade is working or not, if you can’t get a hold of your emotions, you will never success in this business. You can bank on it.

There is no doubt that the two biggest emotions that traders have to deal with during a trade are fear and greed. Greed is something that happens to a trader when they usually have made winning trades in a row. There is this feeling of overconfidence. These traders feel as if the own and control the market. They feels as if they are kings.

Fear is the exact opposite of greed. This happens from a severe lack of confidence. They don’t have a grasp of what is actually going on in the market. They don’t really know the underlying reason why they are taking the trades which they are taking.

I believe the reason why this happens is because many traders really don’t want to hold themselves accountable for what they are doing. They would much prefer to let indicators do the trade for them. Traders have to stop doing this.

It just not going to cut it. If you are actually planning to make money in the forex market, you better be ready to comprehend what actually makes the market tick. This is especially true when you are talking about day trading.

It all starts with grasping the concept of price action. You can start today by letting go of every indicator that are you used to using.

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Forex Review 101: The Basics You Should Know

February 25th, 2017 Comments off

Almost two trillion dollars is traded daily on the Foreign Exchange Market and is the preferred trading of choice amongst investors.

Why? Because you can easily liquidate your trade into fast cash and what trader wouldn’t mind that? So what is the Foreign Exchange Market or Forex as most know it as? It is a trading system similar to the stock market but quite different at the same time.

But if you are trading in the forex market, you trade with many other countries and currencies. In other words, FX market trades are global. You can also trade in the FX market twenty-four hours a day, while the stock market has set business hours.

Also, there are no set business hours, so you can trade twenty-four hours a day. This is what makes it the preferred choice of trade.

But the forex market trader must be disciplined as the US stock market trader, so that they can read the market signals that will help them determine when to enter and exit the market.

They suggest that a trader must learn to be disciplined and not let their emotions get the best of them in order to ride out the long term and make the profits they hoped for.

Market signals come from charts that have a mathematical formula tied to the prices and times within the trades.

Traders use these one-minute and sixty-minute charts as a crucial trading signal.

Therefore traders observe and use these one-minute or sixty-minute charts carefully, which are updated constantly, and are a major trading signal for them.

If you would like to try your hand in the foreign exchange market, you will want to observe all the market signals and patterns and trends so that you can make the best trading decision and the most profit in this lucrative system.

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