4XTrader
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Dolev & Mike K are one the right track. To ask "which is the best way to invest my money" is like asking "which is the best occupation for me".
Many will answer this questions with answers like "IRA, stocks, CD's, mutual funds", etc. But you must realize that those kinds of answers are applicable to the person answering them. If you asked them the questions "what should my career choice be?", they could answer banker, stewardess, waitress, accountant, etc. Those may be fine for the people that like those careers, but they may be way off base for what you would like to do.
The best investment for you is one that suits your temperment, goals and "values" (for lack of a better word).
Each person is different, therefore, there are different investments that would suit your needs/personality. When choosing the right investment for you, you must answer 3 questions:
1) What are your income requirements? In other words, how much money do you want to make? Do you want to earn 10% a year, 20%? Do you want $1 million, $5 million, etc?
2) What are your time horizons? When do you want this money by? By retirement age, by the time you're 55 yrs .old, etc.
3) What are your risk tolerance levels? How much of a risk taker are you? Can you take risks or does that thought of losing money scare you?
When you answer these 3 questions, it will give you an idea of what investments would suit your needs and personality/investing style.
For example, the way I answer the questions are as follows:
1) I want maximum profitability. When I trade, I want at least a 100% return on funds invested.
2) I want to be in a trade for 2-4 days, but not much more than about 3 weeks.
3) I have a very high risk tolerance leve.
These answers are a bit oversimplistic, but you get the idea. But, based on the answers above, trading derivatives and fx were perfect for me. When I trade, on average, I'll return about 200% per trade. Plus, my trades tend to be relatively short term. And I indeed have a very high risk tolerance level. I remember one time, I lost about $4,000 on a trade in the Swiss Franc. To me, it was just money - and that's part of the game. You win some, you lose some.
My advice is to find a good Financial Planner that won't tell you what is best for you, but will explore you needs and personality and then will direct you towards investments that meet your criteria.
If you are a high risk taker, investing in CD's is going to bore you. If you are very conservative, trading crude oil futures will leave you with hypertension and heart attacks. Find what suits your needs/personality and you will be happy with your investments. |
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