A diversified investment portfolio is a great way to make your money work for you. Choosing a mixture of short and longer-term investments with varying amounts of risk gives you the best of both worlds, security and speculation. So how do you go about choosing the right investments and setting up your portfolio?
Choosing a Broker
Choosing an investment broker is all-important when setting up an investment portfolio. Companies such as Hantec Markets offer products like contracts for difference (CFDs), Foreign Exchange(Forex)and Bullion trading to present a great combination of options required in order to set up a diversified investment portfolio. Setting up an account is easy to do as it is all done online and in addition to receiving a digital trading platform you will receive first class help and advice about setting up your portfolio.
CFDs track the performance of a number of global markets and therefore you can trade lots of different types of stocks and shares. Finding companies that are undervalued or who can consistently grow despite changes in the wider economic picture can provide rich pickings for CFD investors and would generally take the form of a medium to long term investment. In addition to this CFDs are a leveraged product, meaning that you only put in a small percentage of your own money into the investment. Leverage can be really useful to some investors as it gives them access to markets that, without leverage, they would be priced out of.
Forex is the most traded market in the world, with trillions of dollars worth of transactions taking place on a daily basis. The Forex market trades 24 hours a day from Monday to Friday and this means you can trade anytime and from anywhere in the world. The cost of trading Forex is low and with fast changes in the rate of prices in currency, there is the potential to make large profits in a relatively short space of time. Because fortunes can be won and lost trading Forex you will need to do your research before you start to trade. A thorough understanding of the trading platform you intend to use and a broad understanding of the global political and economic picture are essential if you are to be successful.
Investing in gold is generally seen as a way to accrue money over a long period of time. Gold has consistently held its value for thousands of years and is often seen as a good way to manage wealth through the generations. Historically, investors also buy gold in times of uncertain economic or political activity, at such times gold is seen a safe haven for capital. Gold investors can take advantage of high leverage ratios that can go up to over 1:200 and so investing in gold can provide good security blanket for your portfolio.
Setting up an investment portfolio is a serious undertaking that involves varying degrees of risk, however, getting the right advice, choosing the right broker and investing wisely can mean that you can maintain control of your capital and the potential profits.