Over the past few years, we hear more often about the Foreign Exchange Market or Forex Market benefits for investors, all the profits you can make by diversifying your investments porftolio with this market, but then a bunch of questions comes in… Is it a real and a good option for everyone? Do I have the proper profile to invest in Forex? Should I trade by myself or let a manager trade my account? How much should I start with?
I will try to answer or guide you through this so you can open your eyes on it or at least you can get a better sight of the field you are about to step in.
First stuff, this is not for everyone! This is a highly speculative and volatile market, which generates high risk levels and it’s recommended to people who can really afford a risky investment.
Professionals suggest to get a fund management portfolio if you are a newby before you start managing your own money, in the meantime, while you learn, you study and you are already taking benefits from it.
When joining an investment portfolio, it is recommendable to allocate a portion to an asset that can offer you a fixed or flat rate, and another portion to a variable rent and variable risk factors.
How much would it be recomendable to start with? This depends on the investor profile and the risk he or she is willing to take. There is people with higher levels of tolerance when taking risks than others, some people likes big emotions of the possibility to make more profits. So based on this you can determine how to split it to fixed and variable rent.
After making a research, I found that professionals recommend to allocate between the 10% and the 30% of your portfolio to a variable rent plan. Of course this will always depend on you.
An investment portfolio doesn’t has to be neccesary a millionaire fund, you can use your own savings, since the main idea is to make the money grow and not just save it, waiting for this to loses value.
A lot of people has the wrong idea about money savings or when they are building their future. The normal and common practice is to put your money into the bank and that’s it, but, wouldn’t be great if you can instead of just save it, make annual or monthly benefits from the same funds? I think that has more sense if you want to build something for the future.
Now if you feel you fill the profile to join the investments world, you have to decide if you manage by yourself or if you go with a professional.
If this is the first time you will be trading your funds, then it is a better idea to hire the services of professionals, so you can be safe and as I said before, you can join an academy or take advise from the expert and practice in demo accounts so you can do it in the future. Learn in the meantime.
Later on I will show you how to choose the best bróker and what to look for.