5 Investment Methods in the Financial Market.
In this article, we discuss 5 methods of investment. Simply put, these are 5 ways by which you can put your money to work for you in various vehicles that will produce an increase. Some methods have been around for centuries while others are relatively new and catching a lot of interest.
So what are these 5 investment methods you can profit from in 2016 and beyond?
- Forex Trading
- Binary Options Trading
- Trading Treasury Bills
- Trading Stocks
- Trading Commodities
Trading of currencies has been around in various forms for a number of years. Forex trading as we know it today actually took its roots from the decision of the Richard Nixon government to de-peg the value of the US Dollar from the price of gold. From 1971 to 1997, forex trading was only available to the big banks and market players with deep pockets. Once the market was deregulated in 1997, retail participation kicked off. Today currencies are not only traded in the forex market but also as binary options products. It is possible for a trader who does not want direct exposure to the currency market to trade currencies on the platforms of several binary options brokers. The forex market is also home to several forex products, including expert advisors which deliver trading signals to traders.
Binary options trading is gaining popularity very rapidly. This is the only market where a trader can invest money and trade several categories of assets. You can trade crude oil, gold, Apple stocks, the Nikkei225 average or the EURUSD all in one market and on one account. Binary options brokers are increasingly being regulated and new products such as trading signals services are also hitting the market space.
Those who do not want to trade the more volatile assets can opt for the fixed income assets. An example of a fixed income asset is Treasury Bills. They go by several names in several countries. They are essentially debt instruments where a government (federal, state or municipal) or corporate entity essentially borrow money from the investing public with a promise to pay a fixed return irrespective of economic conditions after a certain period of time. The tenor or time after which the treasury bills mature for payment are 30 days, 60 days, 120 days, 360 days, 5 years and even as much as 30 years. There are no trading signals provided. You just walk to your broker, pick up the forms and buy as many units as can be allotted to you and you wait for maturity. The benefit of Treasury Bills is that in some countries, they give a much higher interest yield than savings or fixed deposit accounts.
Stock trading is more than a hundred years old. Even though the market has undergone a lot of evolution, the basic workings are still intact. One of the evolutions that the market has undergone is that you can also trade stocks with binary options brokers. The difference is that these trades do not confer ownership of the stock itself. Stocks traded as binary options lend themselves to trading signals too, so traders who are not very experienced can be fast tracked service from trading signals providers.
Commodity trading is probably the oldest form of trading known to man. Rice contracts were traded in Japan more than 300 years ago. Trading in gold is probably as old as the earliest civilizations. Commodities include assets extracted from the ground (gold, silver, platinum, copper, crude oil, natural gas, etc), as well as agricultural products (corn, coffee, cocoa, etc). Commodity trading is not for beginners because the contracts are highly priced and very volatile. Those who want to avoid this volatility can trade commodities on platforms on binary options brokers. Commodities can also be traded using trading signals.
There are many other offline investment vehicles available, but the greatest amounts of money ever made in investments have been from the investment vehicles mentioned above.
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