FINANCIAL FREEDOM

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Investing In Futures Trading

Written by Dian Herdiana on 9:35 AM

Futures trading can be an attractive investment option for some people. It is a type of investment where investors try to take advantage of trading futures contracts. These are contracts that are made by producers of a certain commodity with a dealer which involves the obligation of delivering a certain amount of a certain commodity for a specified period of time in the future. The commodities that such futures contracts trade can include grains such as wheat, corn to other produce such as lumber, livestock, cattle, coffee and even orange juice. There are also futures contracts for precious metals such as gold, silver and platinum.

What makes futures trading quite attractive is the high level of investment leverage that it offers. Investors can invest just as little as ten percent of a futures contract’s value in order to have the opportunity to trade it. This allows investors to trade futures contracts using lesser investment capital for trading larger valued contracts.

Futures contracts usually have standardized amounts of the commodity that they involve. For example, if an investor holds a future contract for wheat, he usually holds a value worth 5,000 bushels. Trading the contract would be dealing based on the value of the 5,000 bushels of wheat.

Although futures contracts only require a fairly small investment (usually ten percent of the contract value, known as the margin), investors should still think before taking or buying a futures contract. Beginner traders should first try to establish that they can afford to trade such a contract. Traders should consider if they have enough margins to cover the contract as well as if they have what it takes to trade and deal a sizable move in prices that can go against their position.

It is also important that beginner traders try to establish a system of risk and reward when trading for a particular commodity. There are many factors that may affect the position of the trader in different futures contracts since they can involve a variety of commodities. Traders should have a good idea on how to handle their position in order to make money in futures trading. A good way to do this is to establish a stop loss feature on traded futures. This simply means that the investors establish a certain price range wherein the contracts may stop trading in order to preserve profits from the trade or to minimize the possible losses.

Beginner traders should also consider spreading their trading from a variety of commodities instead of only dealing on one. If one has the capital to afford in trading five futures contracts, it would be wise to have the contracts involve a variety of commodities. This way the risk may be spread over a varied number of commodities, thereby providing a more or less stable position when one of the commodities suffers a decrease in price value. Dealing with only a single commodity in this case can considerably increase the possible losses.

Beginner traders should only try to risk about five percent of their tr5ading capital on futures contracts. The reason for this is because, one can also easily lose considerable capital in futures trading. It is wise for traders to only invest the amount that they are prepared to lose.

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Penny Stocks: Are They Right For You?

Written by Dian Herdiana on 12:32 AM

Many people know that the stock market is a good way to invest, and increase, their money. However, playing the stock market is always a risk, and it certainly helps to know what you’re doing. For those wishing to make a small initial investment, the term “penny stocks” may come up, more than once. You may have heard that penny stocks are a great way to start small, and work your way up to being big. But how do you know they’re right for you? How do you know if you want to invest your money in these penny stocks?

Just because someone suggests you buy penny stocks, it doesn’t mean you have to take their advice. In fact, before you invest in anything it’s always a good idea to get some information on your own, first. Find out about the type of stock that’s being suggested, and then look more closely at the specific company that you’re considering investing in. Do your own research instead of just following someone else’s advice. After all, it’s your money – not theirs. Your money means more to you than to anyone else, so it’s only a good idea to look into your own investments instead of just letting someone else do all the work.

How do you know if they’re right for you, if you want to invest in penny stocks? The first step is in finding out more about what penny stocks are. Some brokers make penny stocks sound very safe, as if they always bring in large returns, as if they’re totally great. Perhaps none of this is true. Penny stocks are high-risk investments, and there is some potential for investors to enjoy large returns, but there is also some potential for losing one’s entire investment. That’s what a “high-risk” investment is – a risk. You could lose it all, but you could gain as well.

Because penny stocks are not traded through the large stock exchanges, many don’t know even about the existence of penny stocks. Penny stocks are shares in small companies and are not as “liquid” as other stocks, meaning that fewer shares are traded. Penny stocks are traded infrequently, and this is why some investors fear getting “stuck” with penny stocks that can’t be sold.

How do you know if penny stocks are right for you? Do your homework, do your research. Look closely at the penny stocks you want to buy, and learn more about buying and selling this type of stock. Your broker is required to give you certain paperwork and information on penny stocks, before you ever put your money into them. Look over this information carefully before making your decision. If you like the risk, if you like the gamble, if you like the potential, then penny stocks may be the right investment for you. Find out all you can about penny stocks, or any investment, before you throw any money that way. When you make an informed and educated decision, there is a smaller chance that you’ll regret your decision later on.

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Surviving a Foreclosure

Written by Dian Herdiana on 9:07 AM

As long as you are willing to be open and honest with your lender, and you are not afraid to set up some kind of payment arrangement that you can actually commit to; the odds are that your lender will be willing to work with you, allowing you to avoid the foreclosure process all together. If you want to stop or overturn the foreclosure process, something has to be legitimately wrong with the process, and this is not simple.

So instead of simply fighting off foreclosure, you can prevent it completely by making the right monthly payments every month. As we mentioned, there are plenty of alternative options to try if you want to put off the foreclosure process or to stop it all together.

If the sale of your home does take place, try not to fret. You probably still have time to move on to another home before the paperwork has been completely finalized.

When your credit is severely damaged already and then you are forced into the foreclosure process, you will find it even more difficulty to avoid this from happening, especially if you simply do not have the resources necessary to completely avoid a foreclosure. You may not be able to see into the future, but any precautions that you can take to avoid the foreclosure process should be taken as soon as possible. Foreclosures are occurring at truly record rates, and families and home owners are constantly facing obstacles forcing them to forfeit their ability to make payments on their property mortgages.

After you receive a foreclosure notification, you should call your lender immediately and set up an appointment where you can meet with them in person. Sit down with them individually and try to find out if there is anything that you can do to stop the foreclosure process from occurring. There are new laws that require that credit counseling be offered to debtors from approved non-profit credit advisory companies, hoping to drastically decrease how many people are experiencing foreclosures every year.

As long as you do not owe more money than what your home will sell for in the current real estate market, then selling your home may even give you the profit that you are looking for before your home goes into foreclosure. The key here is to thoroughly explore your options.

You absolutely need to be prepared if you want to survive foreclosure. Try everything that you can first to prevent it from occurring, but know that if you cannot prevent foreclosure, it is not the end of the world. Talk to your lender through every step of the process and see what he or she can do for you as you go along through step by step. Your lender may be able to help you a lot more than you realize.

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