How To Plan Long Term Investments For The Future
Most of us want certain things out life. Some of us get what we want while other keep trying but never succeed. Being financially secure during retirement is of prime importance to most of us. We want to be able to do all things we never had time for in our youth. In order to achieve this, we have to plan long term investments so that when we are ready to retire, there is sufficient money in the kitty.
However, long term investment for the future depends on your investment style. If you are an aggressive investor, you will opt for stocks and shares. A more conservative investor will for government bonds and mutual funds. However, there are different types of investments and you can choose what best suits your needs. But having long term investment for the future is a must if you want to lead a worry-free life after retirement.
There are bonds you can think of. Bonds have a wide range of maturity periods from 1 year to 30 years. You can always choose government bonds issued by the United States government and these are quite safe as the bonds are guaranteed by the government so the chances of default are quite low. If you invest smartly in bonds, you could be lucky enough to see your investment double over a certain period of time.
Many people want to stay away from bonds because they consider them risky. These people can opt for mutual fund investments where the fund manager will decide where to invest your money. You can invest in mutual funds through a broker and he will invest it in the fund. However, what many people do not realize is that mutual funds are riskier than bonds, and it is not the other way round.
There are still others who are more aggressive in their investment style and prepare to risk their money in stocks. Stocks can be an excellent vehicle for long term investment for the future. However, you should be prepared to take risks as the company whose stocks you have purchased does not perform well, you will lose money.
No matter where you decide to invest your money, doing research for long term investment for the future is of utmost importance. This means that stocks of well established companies have to be purchased; your broker for mutual funds has to be reliable with a proven track record; and when investing in bonds, make sure that the bonds are guaranteed by the government.
About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality financial tips like :
Loans With Bad Credit History, Using Your 403b To Pay For College, Federal Credit Union & Financial Services
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7:23 AM | 1 Comments
Channeling Stocks – A Simple, Effective Strategy
Channeling Stocks (or Rolling Stocks) can be a very accurate and reliable trading strategy that will provide the trader with exact entry and exit points.
When a stock repeatedly moves up and down in waves between two parallel lines it is said to be channeling or rolling. A line is drawn across the highs, and one across the lows. This forms the channel. The upper line is referred to as the resistance line and the lower line is referred to as the support line. Some traders choose to trade within the channel and will enter or exit the trade as price draws near the support or resistance line. Others prefer to trade breakouts, entering or exiting the trade, once it breaks out of the channel.
One of the greatest benefits of this strategy is that it gives us precise entry and exit points. Greed and fear are a trader's worst enemies, but emotions have no place in a system that employs strict buy and sell signals, along with stop loss or trailing stop orders.
These are the three types of channels: the ascending channel, the descending channel, and the horizontal channel. The ascending channel is a rising channel that is identified by higher highs and higher lows. The descending is a downward channel that is identified by lower highs and lower lows. And, the horizontal channel (also known as the rectangle channel), is identified by horizontal highs and lows.
There are several ways to trade channels:
-Trade in the direction of the channel. Long positions can be entered in ascending channels, riding the price upward until the support line of the channel is broken. Short positions can be entered in descending channel, exiting, once price has broken through the resistance line.
-Trade within the channel. Long positions are entered as price bounces off the support line, and sold close to the resistance line. Shorts are entered as price bounces off the resistance line, and covered close to the support line.
-Trade channel breakouts. This strategy doesn't provide an exit point. Longs are entered as price breaks through the resistance line and shorts can be entered when price breaks through the support line.
Check for channels in different time frames. Many times you can predict when a channel will be broken, by checking other time frames. The channel that you are currently trading in one time frame may be an advance or decline within a channel of a longer time frame. Choose the appropriate time frame for your particular type of trading: weekly or monthly charts for long term trading, daily charts for short term or swing trading, intra day charts for day trading.
Channel trading is a very simple, yet effective strategy that works well for the beginner as well as professional traders. As you should, with any new strategy, paper trade, before you add channel trading to your trading toolbox.
by: Chris Jones
5:44 AM | 0 Comments
