If you go round asking people about Forex, chances are you get mixed answers and opinions. There are people who are afraid to invest because they read too much about investing, am told not to invest by their family, friends and relatives who have bad experience and most importantly losing all their hard-earned savings. And there are also people who love sharing with you and even tried to get you in because they made a lot of money.
Those fears of people dare not invest are not totally unfounded. If you are new to investment be it Forex, futures, options, warrants and some other instruments, you will be confused by all this information around you that does not seem to make any sense. This is what I called Information Overload. There are so many different kinds of investment vehicles that you do not which to pick and trust.
Therefore it is important to find a right mentor with an easy and proven system of earning from Forex. Without which, you will be banging against the wall and losing a lot of money instead of earning which you should. So if you are new, you need a mentor to guide you instead of having to do everything by yourself which turns out to be unproductive.
But even with a proven mentor who can coach you to success using his strategies, you still need to take certain precautions. Such as making sure you have enough money to take care of all your bills first. This is extremely important because the last thing you want is losing all your money to Forex and unable to provide basic needs such as food and home to yourself and family. Invest only if you have extra cash on top of those needed for bills. Otherwise, do not even bother to invest. I may sound discouraging but it is still better than you being penniless and plunging into debt.
Bills are unavoidable whether you like it or not. There is nothing you can do to stop them coming to you forever but there is everything you can do to control your spending on other things apart from bills. A lot of people fail to do proper planning on this. As a result, they lose money and get into a lot of financial problems.
The best way to start investing is to have a separate account. I am not talking about your investment account but rather your bank account. The reason I am saying this is because it is not wise to put all your money into 1 bank account as being humans, we have a tendency to spend when we have money and complain or blame others when we do not. So apart from your primary bank account which will be used to pay your monthly recurring bills, it is best to have a secondary bank account to be used only for investment.
There are over thousands of Forex investments with each guru claiming his or her strategy works the best. I cannot promise which is the best and which is worse for you. It all depends entirely on what you want to invest in. If you invest in long-term, you will want to look into investment that you can pay into. Your money will grow over time with interest if possible.
The investment you choose will determine what amount of money you will need. If you decide to go with stocks, they will usually be the preferred investment type. So when you get paid, you will go for that as the main investment vehicle.
To find out more about investments, check out my latest eguidehere
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