This is small reason why people can make money from forex.

Think through this simple methology: A young trader can lose and closed his account within 2months. Losing almost 2000USD. If he had reversed all his trades, he would had raked in 2000USD!

Thursday, April 10, 2008

Your Own Personal Style in MoneyVesting

So what is your risk tolerance and amount of money you would bear to let go with?
This is important in order to know what is your style in investment, so that you can go on and choose which field that you like to put your hard earned money into.

Risk tolerance is based on how much risk you want to take and revolves around how much money can you bear to lose. Not just part with, temp. Its preparing to totally lose the money.
If you have a stomach for high risk, your returns will definetly be higher than that of a low risk investor. BUT. when both starts losing money. U will lose out more.

It depends really.
On your financial goal.
What do you want in return for the risk? If you want to be young millionaire then you have to be avid investor taking great risk.
But if you just planning for retirement, a moderate risk would be subtle.
Or you are just planning on having little spare cash to spend on weekend spree, a low risk would be recommended.

Low risk or conservative players want their money back. Hence they would usually go for common stocks or bonds with low returns such as 5-8% per annum.

High risk taker usually would, like myself, who can bare to part with my money, would be going into HYIP, FOREX or even blooming stock markets like the wall streets stocks.

But that is of course that you would need to choke up enough capital first.

I personnally would have the urge to invest something i see profitable at first sight. And this is what most novice investor would do. Jump into the pot too soon, and get cooked and eaten even sooner.

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This site do and only do advise on how you should trade and why you should trade. Forex market consist of leveraged risk. You can make big profits as well as big loses. Do not trade money that you cannot afford to lose, or funds that will be need for short term uses.