Category Archives: Investing

Making Money in the Forex Market

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“Many of my friends are talking about making lots of money in currency trading. However, I feel a little nervous about it, because I have seen all the advertisements telling us to be careful how we invest our money. Is investing in foreign exchange trading really legal, and why has it become so popular recently?”

Jamaicans are usually never far behind in following the international trends, whether it is the latest car, clothing line or hit music. It was only a matter of time before we discovered that there was money to be made in the financial world’s largest and fastest growing market – trading in foreign currencies.

Foreign currency trading, also called forex, currency market, foreign-exchange market, or just simply FX, has until recent years been carried out only by big financial institutions, large conglomerates and central banks.

However, the growth of the internet and the increase in investors’ knowledge and appetite for risk, has allowed many average people to take advantage of this investment opportunity. Continue reading Making Money in the Forex Market →

Make Time to Make Money

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“I want to start an investment plan for my retirement, but the problem is that I really can’t find the time to concentrate on making money. My job takes me all around the island and I have very little opportunity to focus on my own affairs. Can you advise me how to start an investment plan with the least amount of time and effort on my part?”

“I don’t have the time to learn how to make money!” If I had received one hundred dollars for every time I heard clients complain that they can’t find the time to plan how to save and invest their money, I would have discovered a fast-track method for becoming rich.

With only 24 hours in any day, the reality is that time is limited. However, the perceived lack of time to do any endeavour is really a factor of where your priorities are placed. What you achieve in life is determined by what you desire to find the time to do.

How many times have we complained of an inability to find time to an undesirable chore like housework, but as soon as some exciting event comes around, we have all the time in the world to attend? Continue reading Make Time to Make Money →

Mistakes To Avoid When Investing

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“When you make a mistake, don’t look back at it long. Take the reason of the thing into your mind and then look forward. Mistakes are lessons of wisdom. The past cannot be changed. The future is yet in your power.”-Hugh White”

One of the biggest fears that we all face is the fear of making a mistake. This is even more evident in the investing world, where one wrong investment decision can prove costly and wipe out an investor’s hard-earned money.

I have heard many sad stories of investments gone awry – people who went into massive debt because of an ill-conceived business idea; trusted companies that promised high returns and disappeared into thin air; rented real estate that turned into a nightmare due to trouble with tenants.

However, most mistakes that are made in investing are not quite so dramatic. Every day, average investors make very simple errors in judgment that can have a negative effect on their investment plans. Continue reading Mistakes To Avoid When Investing →

Pooling Your Money for Higher Returns

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“I read in the financial papers that mutual funds are a good option for people who are looking for higher returns than available on regular savings account. What exactly are mutual funds and how do they work?”

The investment landscape in Jamaica is certainly undergoing some interesting changes. Gone are the days when people only saved in bank accounts- now they’re searching for more options that can give better returns on their investments.

What is a Mutual Fund?

A mutual fund is one of the investment choices that can offer an investor the opportunity to make more money. A mutual fund is simply a collection of assets such as stocks, money market instruments or bonds that are purchased by a pool of investors and managed by a professional company.

The mutual fund company has specific objectives as to how they can invest the money they have collected from investors. These details would be found in the prospectus of the mutual fund. Continue reading Pooling Your Money for Higher Returns →

How Much Risk Is Right For You?

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“After reading your column last week on being less fearful about investing, I think I need to take more risks with my money. Everything I have is in a savings account earning very little interest and I want to try something else that can make more. How do I go about figuring out how much to risk?”

I got many interesting responses to last week’s topic on fear and investing. Some people were willing to jump headfirst into riskier investment options, as they were tired of earning minimal returns. Others were still terrified about the thought of losing money, but readily admitted that they were not satisfied with how their money was growing in basic savings accounts.

Two reasons why people invest their money are to increase the original sum invested, or to create a source of regular income. Risk is simply the chance that the outcome of your investment will be less than expected. This can include losing some, or all of the initial principal, or not getting the return you had hoped for. Continue reading How Much Risk Is Right For You? →

Don’t Let Fear Hold You Back From Investing

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“Some of my friends were talking recently about how they made some good profits in the stock market recently. However, it was my understanding that if you invest in stocks you can lose your money.

“I really have worked hard for my money and I don’t want to get involved in anything where I could lose any of it. I’m wondering if there’s something I’ m missing by being afraid of investing in stocks.”

I can relate very well to your fear of investing in anything that could lose money. Many years ago, when I had just started working in an investment brokerage, I had to do an exercise to invest some money in stocks and money market accounts.

I didn’t know anything about the stock market at the time, and I remember saying to myself “Why would anyone want to put money into an investment that could lose money?“ I reluctantly placed twenty percent of my available funds (the minimum allowed) into the stock market, and prepared for the worst. Continue reading Don’t Let Fear Hold You Back From Investing →

Investing Basics

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“I’m always seeing articles in the newspapers that talk about investments, but it seems like investing is something that’s out of my reach, as I don’t have a lot of money. Is it possible for people with small incomes to invest?”

When we hear the word ‘investor’ many times we picture a wealthy person who has made a lot of money by trading in the stock market, or buying expensive real estate. The reality is that anyone can invest, if he or she learns and applies the basic concepts of investing.

So what exactly is investing? Investing is simply the act of putting money into an endeavour with the expectation of making some profit. An investment is any item that is bought with the intention for it to increase in value in the future, when it can be sold at a higher price, and/or provide an income stream. Continue reading Investing Basics →