Stock Investment | Opportunity | Investing | OnlineWhat is Forex Trading and how you can suceed in it! |
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Why Should You Opt For Stock Investments?Stocks are an A-grade online investment opportunity when it comes to asset worth. This is why a stock investment is always worth the time and effort you put in to researching and processing it. Stock investing has a higher probability of yielding better returns over time, in comparison to other investments such as real estate and bonds. Stock investing has many advantages, but that doesn't necessarily mean it's pitfall-free. The Advantages Of A Stock Investment Returns: Worth mentioning repeatedly, the returns on a stock investment is always much higher than what you get from other online investments. In the long-term, stock investing will give you better profits through outperforming CDs, bonds and savings accounts, as well as various other monetary online investments. A stock investment returns 10% per annum on average, while others yield a return between 5-7% annually. Taxes: A stock investment is taxed at a very low rate, especially if you hold on to the investment for at least a whole year. When you put your stock investment up for sale, you will be taxed under the long-term capital gains clauses, which would make your tax deduction as low as 15%. The standard tax rate on any other partaken online investment opportunity is 35%. Diversification: You cannot diversify a real estate investment opportunity can you? Unless you are a multibillionaire with nothing else to do with the money, diversification is simply not an option in real estate and other investments. The possibility of a real estate invested in going down in value is much higher, because the specific area you concentrated on may not be so popular after awhile. While a stock investment also has the possibility of falling down to zero because you invested in the wrong company, you can still make a good profit from your stock investment portfolio when you have diversified it. The Disadvantage Of Stock Investing Stock investing can be disastrous if you don't take the time to do a risk analysis before making an online investment. An investment opportunity can be glorified and blown out of proportion by marketing campaigns, but you need to be a prude with your money and do a thorough background research on the every possible stock investment opportunity. Properly assessing the risks will keep you prepared for eventualities and help you diversify your stock investment portfolio. Top Stock Investment Traps To Avoid When we speak of stock trading and investment traps, you might think we are talking about online investment scams or some such unethical behavior by crooks. Interestingly, stock investment traps are not just for online investment opportunists to be wary of. Common investment traps include high fees, fear, greed and infomercials. High Fees: Whether you are considering online investment or otherwise, be wary of high fees incurred in the forms of broker's fees, communication bills, unnecessary investment advice and investing in supposedly high-yield mutual funds. Fear and Greed: Probably the worst trap ever in stock investing, fear is just your low confidence telling you that you can't do it, because it's impossible. Stock investing is not about buying when everybody else is buying and selling when they all sell. This type of stock investing will force you to sell stocks for a lower price,, when you bought it for a much higher amount. Greed is another culprit plaguing stock investments, because if you trade more often at the wrong time, you will fall. Infomercials: These are just promotional campaigns and nothing else. You must never pay heed to the “corporate tycoons” blabbering on about the “best online investment tool for your stocks” or the “best stock investment broker in town”. At most, these infomercials sell worthless products and in the worst case scenarios, they are scams. Risk DisclaimerThis website is for informational purposes only and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or financial futures instrument or to participate in any particular trading strategy. The information presented on this website is for general information only. Although every attempt has been made to assure accuracy, we assume no responsibility for errors or omissions. Forex-, Stock- and Futures trading is speculative, involves a high degree of risk and is designed only for sophisticated investors who are able to bear the loss of more than their entire investment. Performance figures shown are from a live forward test and can be considered hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there can be frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully account for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. |
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