FXFINPRO CAPITAL: Invest or trade, what's better?
After getting acquainted with Forex and other financial markets, many people get the idea to simply run trading activities or invest in certain products themselves. This is an interesting and complex question with a much debated answer.
In this article, we
are going to explain all the ways in which you can increase your capital within
the scope of two groups:
investments and independent
The first group is quite broad and includes many different options. So, how can you determine which one is suitable for you? The answer lies in the following:
• your financial capabilities
• the amount of time you can devote to our financial activity
• your experience and expertise in the world of finance
• your character, life values and principles
These four components form our individual opinion on "ideal" investments.
Let's take a look at the first option.
I. Investments in gold and precious coins
Precious and investment coins, as well as gold bullion, will always be of value. Precisely for that reason, investing in precious metals is one of the most popular types of investments. It is important to keep in mind however, that coins and bullions are long-term investments. Their value grows slowly and steadily. The shortest position on the market is from one to three years. Consequently, these types of investments are suitable for those who like to develop long-term strategies and invest in the future.
Investment coins are manufactured from precious metals and issued by the banks. There are different types: gold, silver, platinum, palladium. Their main difference from collection coins is in the number of copies issued (more investment coins are issued than collection coins). They are not classified as goods; thus, you can conduct all transactions with them tax free.
Finally, another reason why investment in coins and gold bullion is beneficial lies in the fact that your investments are insured against inflation. Furthermore, coins and bullion are easy to store and transport. In order to receive a decent yield, you will have to be patient and wait for the right opportunity to present itself.
Now let us consider another interesting option.
II. Investment in real estate
Investment in real estate is a great alternative to any other type of investment. It is one of the most reliable, proven, and profitable types of capital investments. While we consider it to be long-term, it is important to note that you can easily return your invested savings by leasing the real estate or by reselling it.
The Forex market can
be rather cruel and unforgiving of mistakes. According to statistics, eight out
of ten traders leave the market empty-handed. For this reason this market does not
tolerate a frivolous approach.
While there are some professional traders who are offer their services as money managers, it is important for you to remember that there is the downside that you will have to share your profit with the manager.
One of the examples of a trust is a PAMM (Percentage Allocation Management Module ) account. PAMM allows a trader to manage several investors' funds using a single account. All profits and losses are allocated between the managed accounts proportionally, according to the offer. Profit is allocated on the completion of the trading interval, which is also specified in the offer.
As a rule, any investment has a waiting period. Similar to the case of gold bars, the waiting period can last anything from one month to decades. However, this may suit you if you like to calculate your moves in advance and if you are looking into long-term investments.
So now that you are more familiar with investments, let's explore how you can set up your independent trading.
IV. Trading in Forex is probably one of the best examples of independent trading. The only things you can't do without, if you want to be a successful trader, are basic trading knowledge and methods to plan your financial operations. There are many variations of technical analysis; however it's also important to see the big picture.
In time, you'll find your own way of doings things and achieve the results that you could never have imagined were possible such as doubling or tripling your investments in a relatively short period of time.
Nonetheless you cannot ignore the risks. This market is as attractive as it can be unforgiving. Any mistake, however small, can result in the loss of your funds. This is why traders require patience, intuition and the ability to be in control their emotions.
V. Trading in the derivatives market.
It is a well-known fact that Forex works only with a few dozen currency pairs, whereas the derivatives market (which includes futures and options contracts) lists over 500 different contracts. The main advantages of the derivatives market include low broker and deposit fees. In other words, in this market you can start with a smaller investment than in the securities market. It also needs to be pointed out that this market is controlled by the government and other institutions which ensures transparency.
To summarise, there
are two distinct ways of growing your capital:
2. Independent trading
The main conclusion to draw is that the first option suits people who routinely make long-term plans, while Forex is more appropriate for fast and dynamic people who want substantial returns in a short period of time.
Now it's up to you to figure out which options suit you the best.
OK, so let's get down to business!
FXFINPRO CAPITAL company is happy
to bring you the good news:
We offer all types of long-term investment: coins, gold bars, real estate in the UK and Dubai, structured products, and investment in PAMM. You can conduct independent financial operations and trade in the Forex exchange market (we offer two platforms -MetaTrader and Protrader).
To sign up and learn
Perhaps you are aware of the saying, "Nothing ventured, nothing gained"? If you keep moving forward and working hard, you will eventually achieve your dreams.