Investing Online: Low Risk Online Investment Ventures That Attract Huge Returns

By Efraim Lezama

 

Anyone who makes a high or low risk online investment on any asset expects a good return without incurring too many risks. However, it may not be the case all the time. Investments are tricky and if not well managed can bring about huge losses.

Investment assets come with risk tags including political, market, liquidity, tax, interest rate and legislative. Understanding the type of risk involved in any investment is necessary before settling on any venture. You can identify opportunities that will bring you high returns while maintaining a fragment of safety.

Low risk investment options are available for persons interested in investing in assets that attract little risk. Such an investment is unlikely to fall in price and the possibility of losing money invested is minimal. If you are interested in taking on investments with a reasonable amount of risk, then you may increase your income significantly without worrying about losing your money.

High-yielding low risk investment ventures include:

• Fixed term deposits

With this type of investment, you know exactly what you will get when the term matures. The option involves depositing a certain amount of money for a set period. During the term the money accrues interest at a set rate.

• Online savings account

Saving money is a risk-free investment that can earn you interest. The interest rate is not always guaranteed but you can still earn interest on your savings. Before opening an online bank account you can research on the various accounts being offered and compare the interest rates.

• Company stocks

There are shares that attract low risks but can bring high returns. Dividend-paying stocks can provide a steady stream of income. Even if the share price of a company drops, the company could still be making profits thus the dividend may remain stable.

• Bond funds

Bond funds are among low risk options available that feature a fixed interest rate. The fixed-income securities attract interest over the period of the bond; therefore can provide high yielding income for long periods.

• Certificates of Deposit (CDs)

CDs normally have higher interest rates than other online investment options. Certificates of Deposit can improve your investment earnings in a safe and low risk way. Opening a long-term CDs account when interest rates are high can ensure you receive more income.

Choosing a few low risk investments may be a great way to start your portfolio. They are not going to make you rich, but can provide with a cushioning if your higher risk investments do not follow your way.

Any low risk investment has a degree of uncertainty in returns and losses. Investors are advised to understand that different perspectives can lead to different investment decisions. To make the right decision, you may want to look at the various strategies by successful persons who have taken on low risk investment.

Efraim Lezama is an entrepreneur that is making his fortune investing online. If you would like to find free ways to make money online and learn how to invest a few hundred dollars, compund your capital and multiply your money with little risk over a short period of time, visit http://www.ideastomakemoneyonline.com and kick start your online money making endeavours.

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Digital Options Trading Explained

By B. Huebner

 

 

Binary options are the most lucrative financial investment in the market right now. Due to its low investment risk and higher chances of greater ROI, several traders are now turning their attention towards investment into Digital options. You do not need to wait several years to get returns from binary options trading, and there isn't much knowledge required to do it successfully, just be sure to follow the steps in this Digital options trading tutorial for best results.

Actual functioning of Digital options trading
The basic functioning of binary options trading revolves around call and put type of financial investments. Binary implies bi-polar which means trader either selects up side or down side of the financial assets as per the current market trends. In such type of trading, an investor selects one type of security for investment and invests a particular amount into that security.
After this investment, it is the trader who decides which side the security would go. The trader can choose down side (put option) or up side (call option) depending on his/her own market analysis. Once the trader decides the probable direction, the binary trading broker software calculates the final payments and the trader submits the final order. This binary options Trading Tutorial was written to explain the basics of profitable options trading.

7 steps digital options Trading Tutorial to garner maximum ROI in Digital options trading
If you want to be profitable and successful binary options trader then you must follow the proven 7 steps process laid out in this binary options trading tutorial:

1) Perform proper fundamental analysis Fundamental analysis is the first and the most important building block of any type of market research before you start deciding your investment into any type of binary trading. You need to have high quality stocks in order to perform profitable trades in the short term as well as in the long run. This process actually involves screening different financial securities and finding out the most profitable ones to get higher ROI.

2) Create your own watch list The selected financial securities should be written down on a piece of paper. The most promising ones will come under a special list known as your watch list. This list would contain the most promising and potentially profitable securities that have the capability to provide you profits over long term.

3) Perform technical analysis The technical analysis is really a critical process that helps to find out the best financial products on your watch list and it also helps to select the best option trades. Important technical indicators as well as certain price patterns help you identify the most profitable trades during this process.

4) Potential trades After fundamental and technical analysis, one can easily find out the most promising trades that can provide the best ROI. This process involves pre-selecting the options that one can easily buy and sell in the market.

5) Proper follow-through process Creating follow-through rules makes it easy to trade sensibly in the market.

6) Right exit strategy Entering any type of binary trading needs to have a proper exit strategy to manage the investment risk. There are lots of variables present in any type of financial trading. So you need to be thoroughly ready to face any investment risks during the trades.

7) Proper money management Money management or risk management is equally important throughout this trading process. You need to keep more finances than your actual investment into trades in order to stay financially safe and sound.

For more information about binary options signals, digital options trading and other helpful tips, be sure to visit my Digital Options trading blog for news and updates on the latest in digital options strategies and tips.

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Currency Trading Basics - Terminology In Forex Trading

By Roberta Barrow

 

Currency trading basics are among the things you need to first learn if you are planning to venture on foreign exchange or forex trading. In forex, there are certain terms and words that you need to be familiar with so you will understand how buying and selling of currencies are effectively done.

Knowing the terminology commonly used in the trading market by other traders will help you in the flow of things. Getting into the forex trading venture without knowing even a single word is similar to entering a battle without any weapon. Below are some of the important terms you must understand.

Currency Pair
This refers to two types of currency or money traded with one another. You can practically any kind of currency with another one as long as they are available in the forex market you are participating in.

There are seven types of currencies mainly traded: US dollars, Australian dollars, Canadian dollars, Japanese yen, Euros, British pounds and Mexican pesos. There is no independent standard on how much a particular currency is so the market is constantly unstable while currencies move up and down with each other.

Bid
It is the price for buying an exchange.

Ask
It is the price for selling an exchange.

Spread
This term refers to the disparity between bid and ask. If you are a trader, you need to use your chosen broker, who will attach a spread to the currency you are trading. This is basically how a broker earn profits. It is important that you watch out for the numbers in the pair you are trading. You are certain to make profits if the currency you have has a number that is higher than the one you are planning to trade for. If the opposite happens, then you will lose money.

Margin And Leverage
This is the deposit put up by a trader, in good faith, as a form of collateral to be able to hold his position in trading. How much margin you have put up will determine your leverage. Suppose you have put up a margin that is more than the necessary amount to open a position, you are basically putting down your margin in order to receive leverage. Leverage, therefore, is the money you are controlling with relation to your margin.

Pip
This Percentage in Point or Pip is actually the last digit in the price of an exchange. Suppose Euro against US dollar is 1.3746. If selling price is 1.3749, there is 3pip increase. If selling price is 1.4746, pip increase is 100. Pip is the smallest unit in the foreign exchange market.

Stop Loss
Suppose you have set up the stop loss accordingly, you can expect to minimize your possible losses, not considering the direction the market is heading for. There is a regular stop loss that remains at certain estimation in between two currencies. There is also the trailing stop loss that continues along with your position regardless of how high it will reach. This trailing stop loss will protect the decent amount of profits you have earned.

Forex Trading Made E-Z is a comprehensive guide in knowing how to make money trading currencies. 10-Minute Forex Wealth Builder is also a recommended training program on currency trading.

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Managing Risk Through Mutual Funds

By Joanne Lowe

 

Does the current stock market volatility make you want to stick your head in the sand and forget about it? Don't despair!

If you read last month's article "Risk is a Four Letter Word", then you know that investing always carries some form of risk; whether market risk, company/industry risk, currency/country risk, reinvestment risk, interest rate risk, liquidity risk or inflation risk. While you can't eliminate risk entirely, there is a way to minimize these risks so that you can sleep well at night. Mutual funds are one such way that the small investor can participate in various investment vehicles while reducing risk.

Equity Funds
Otherwise known as stock funds, equity funds are a pool of funds which invest in various companies on the stock exchange. Instead of buying a share of stock, you are purchasing a share of the fund based on the net asset value (NAV) of all of the stocks within that fund. This NAV will fluctuate each day based on the change in price of the underlying stocks held by the fund. Depending on the type of equity fund chosen, compared to buying individual stocks, an equity fund allows you to reduce the exposure to any company/industry risk, currency/country risk, liquidity risk, and possibly inflation risk as equities are thought to keep pace with inflation over the long term.

There are passive and active equity funds from which you may chose. Simply put, passive funds refer to index funds which track one of the major market indices such as the Toronto Stock Exchange (TSX). Because there is no active trading and analysis of the underlying stocks, fees for index funds are generally much lower than for active funds. Active funds, on the other hand, are actively managed by the portfolio manager, and can be categorized by their investment style, company size, and geography.

Bond Funds
A bond is quite simply a loan to an entity, such as a corporation or government, which borrows an amount of money for a set period of time at a fixed interest rate. Similar to equity funds, bond funds, or fixed income funds, will also have an investment style to which they adhere when choosing the underlying investment. However, a bond fund invests primarily in government, corporate, municipal and convertible bonds, as well as other debt instruments. Also, like equity funds, an investor purchases a share of the fund, which provides diversification of the type of bond, maturity, class and rating.

Compared to purchasing individual bonds, a bond fund may help to reduce reinvestment risk and interest rate risk, in addition to liquidity risk, company/industry risk, and currency/country risk. Inflation risk may still be a factor in a low-interest rate environment. A word of caution though - interest rate risk will remain in a period of rising interest rates because current bond values will fall as a bond paying 5% is now worth less than a newly issued comparable bond offering 7%.

Balanced Funds
That leaves market risk, which is the risk that the entire equity market will be affected by negative news. Usually the equity and bond markets are inversely correlated and this past year was a perfect example. While the TSX fell 11% over 2011, the bond market performed exceptionally well. Therefore, to minimize market risk, a balanced fund offering both equities and bonds can help to ease the fear many people now have since the crash of 2008, or you can use some combination of equity and bond funds in the proportion in which you are most comfortable.

There are literally thousands of mutual funds available for your choosing. Get informed, ask questions, be sure of your own risk tolerance, have a look at the history of the fund, the fees (MER - management expense ratio) and any commissions involved. As with any investment, don't put your money into anything you don't understand, and be sure to read the details of the plan before committing. Be sure you understand the risks and potential returns involved.

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Why Purchase High Dividend Stocks?

By Andre Bradley

 

High dividend stocks are purchase for their ability to pay out high dividends on a regular basis, and don't fluctuate much in stock price. A great way to measure how much "bang for your buck" you are getting from dividends is called dividend yield. Dividend yield is how much cash flow you are getting for each dollar invested in a high dividend stock. The goal is to find good companies with solid earnings that grow their dividends.
 Below are several high dividend stocks that recently rewarded their shareholders:

1. H&Q Health Care Investors (NYSE: HQH) - Dividend Yield: 9.13% - is a diversified closed-end management investment company. The Fund's investment objective is long-term capital appreciation through investment in companies in the health care industry. The Fund invests primarily in securities of public and private companies. The Fund primarily invests in biotechnology, medical devices and pharmaceuticals.
2. Mesabi Trust (NYSE: MSB) - Dividend Yield: 8.07% - is a royalty trust that was created in the state of New York back in 1961 to derive income from the Peter Mitchell Mine near Babbitt, MN which is located near the eastern end of the Mesabi Iron Range.
3. Enerplus Resources Fund (NYSE: ERF) - Dividend Yield: 7.72% - is a high yielding North American oil and gas provider established in 1986. Enerplus has built a balanced and diversified portfolio of producing properties across western Canada and the United States with a focus on large oil and gas resource plays that offer growth potential as well as predictable production and repeatable development opportunities.
4. Frontline Ltd. (NYSE: FRO) - Dividend Yield: 7.68% - engages in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. It primarily transports crude oil, as well as raw materials, such as coal and iron ore.
5. Gladstone Commercial Corporation (NASDAQ: GLAD) - Dividend Yield: 7.58% - is a real estate investment trust that focuses on investing in and owning triple-net leased industrial and commercial real estate properties of small and medium-sized private United States businesses.
6. Cedar Fair (NYSE: FUN) - Dividend Yield: 6.84% - is one of the largest regional amusement resort operators in the world. The Company owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. Its parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri, Michigan, and Toronto, Ontario. Cedar Fair also operates the Gilroy Gardens Family Theme Park in California under a management contract.
7. Telecom Corporation of New Zealand (NYSE: NZT) - Dividend Yield: 6.62% - is a large supplier of telecommunications and information, communication and technology (ICT) services in New Zealand and Australia. Telecom provides a range of telecommunications and ICT products and services, including local, national, international and value-added telephone services, mobile services, data, broadband and Internet services, information technology (IT) consulting, implementation and procurement, equipment sales and installation services. Telecom is a participant in the New Zealand and Australian communications and information technology industries.

I expect high dividend stocks to continue increasing in value, with corrections along the way, with today's low interest rate environment. Picking the right high dividend stock to invest in will be the hardest part of your investment decision. Make sure to consult your investment advisor before purchasing any high dividend stocks.

Andre Bradley is a contributing writer to the website http://StockAdvice101.com. Looking for stock advice, stock market tips, and stock market strategies? Look no further, visit are site and discover for free the proven secrets to building a fortune using stocks.

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3 Alternative Investments for Stable Capital Growth

By David D Garner

 

Recent economic turmoil, played out over the past 5 years, has caused many investors to questions the logic of holding all of their assets in stock, bonds and cash. Whilst market conditions are positive, and equity values rise, all is well. But recent history has demonstrated that years of capital gains can be reversed in a matter of days, or even hours. Large investors such as pension funds, and smaller investors saving for retirement, are now seeking to allocate a portion of their capital to alternative investment assets that retain a capital value throughout any prevailing economic climate, and, for the long-term investor, capture capital growth driven by a rising demand for essential and luxury assets in line with a growing global population and rising wealth in emerging market economies like China, India and Latin America.

Here are 3 investment alternatives that share a low or negative correlation with the performance of shares, and might, for many investors, offer a solution to the question of portfolio diversification and risk-management.

1. Gold investment

Gold has long been viewed as a safe, stable asset that provides insurance against general market volatility. When equity values fall, gold values rise as investors sell their shares and buy into a 'safe haven' investment like gold. Thus, holding gold as part of a diversified portfolio creates growth when other assets lose value, effectively creating a balance and countermeasure to stock market exposure during a downturn market. Gold has also outperformed most other assets, gaining almost 30% per year for the past five years.

2. Forestry investments

Trees are becoming ever-more popular alternative investment assets. Well-managed commercial timber plantations derive financial returns from the biological growth of trees into valuable timber and other commodities which can be harvested for income. As trees continue to grow regardless of the economy, forestry investments in key regions where trees grow quickly, and where demand for timber is highest (read emerging markets), can produce returns of between 10% and 20% p.a. over a sustained investment period of 10 or 20 years. There are a number of unique risks associated with this alternative property investment, and Investors should partner with an advisor with a track record and experience of identifying, measuring and delivering successful forestry investment projects.

3. Farmland investments

Agricultural land is in worryingly short supply, and forms the basis of all agriculture and food production. Without enough suitable land to grow crops and raise livestock, demand for food outweighs supply and farmland values rise as the true value of the assets class becomes apparent. Those in control of food-producing land may in fact be in control of the world's most valuable asset in 10 or 20 years' time. As the global population has grown so quickly over the past 100 years, the amount of suitable arable land per person had halved, and changing diets in advancing economies require the input of more resources to grow food, creating a double-whammy of demand. Farmland investments therefore capture long-term capital growth driven by population growth and rising levels of wealth in emerging markets like China and India. There are a host of risks associated with agricultural land investment and again, investors should seek out the advice of a consultant with a track record and experience of identifying, measuring and delivering successful farmland investment projects.

In summary, all of these assets are likely to grow in value as demand continues to grow, whilst supplies remain fundamentally limited, and investors able to find a suitable entry into any of these alternative asset classes could generate superior investment returns, provided they are prepared to hold the asset over extended period of time and can tolerate the illiquidity associated with tangible, physical assets.

David Garner is Partner at DGC Asset Management, an alternative investments boutique specialising in property transactions in the agriculture and renewable energy sectors.

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