Posted by Paul on 11th, 2010
Do Not Lose Your Shirt With a Margin Account
The key to the FOREX market for the average investor is the margin. Without margin trading currency trading would be beyond most investors. I will explain what the margin is and how it works.
When you have a margin account you are able to control large amounts of currency with a relatively small cash deposit. When you have a margin account with a broker you are in effect borrowing money from the broker to control a larger lot of currency. Currency is normally sold in lots with a value of %100,000. A common term used when discussing margin accounts is leverage. Leverage is how much you can control with a certain amount of money. The leverage is usually displayed as a ration such as 1:100. That would allow you to control currency worth 100 times the amount of money you have invested.
To better explain this in a FOREX exchange with a 1%PRCTG% margin account you could control %100,000 worth of a currency while only investing %1000. Margin accounts can allow you to greatly increase your profit; they also allow you to increase your risk. With a margin account it is possible for a trader to lose more than their initial investment. With a little prudence though losses can be minimized. Most brokers will terminate a trade before the losses exceed the original deposit.
Benefits
As discussed before a margin account allows you to buy more with the money you have which can greatly increase your profit on successful trades. By controlling a %100,000 worth of currency for only %1000 the potential gain is greater. When dealing with large lots of currency even small changes can produce significant results.
Currency on the FOREX market is traded in far more precise units than actual cash is. As an example the American dollar is traded down to four decimal points. So when you were to quote the dollar against another currency you will see a price like %1.7834 instead of %1.78. A PIP is the smallest unit when trading currencies, when dealing with %100,000 lots then each pip is worth about %10.
If the price of the American dollar changes from %1.7834 to %1.7934, you have a net difference of 100 pips. If you have a lot of %100,000 then that 100 pips will translate to %1000 where as if you were not using the margin your original %1000 would only show a profit of %10. Hardly what most would consider a highly profitable trade?
In short the primary benefit of using a margin account is that it can greatly increase the profit margin of a trade.
Risks
Since there is such a significant increase in profit potential when using a margin account it only stands to reason that there is also an increase. In fact it is quite possible to have your entire margin account wiped out fairly quickly. When using a 1%PRCTG% margin account a shift in the currency of a single penny will cost you %1000.
The FOREX exchange has many safety features to help you reduce the risk of this happening. One example is a stop loss order. A stop loss order will automatically close out your position in a currency if the price crosses the point you have set. This allows you to limit your losses while still having the opportunity to realize a profit.
Another risk that many people overlook is that if the price nears the point where your losses are close to being equal to the value of your margin account your broker may close out your position. If you were trying to rid out a temporary downturn that you expect to turn around soon you could find that your broker has closed it causing you to lose your entire balance and have no option to make a profit if the price moves up again.
This is a basic introduction to margin accounts and how they work, visit the website listed below to learn more about the FOREX market.
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Posted by Paul on 4th, 2010
How To Read Forex Charts: 5 Things You Must Know
Learning the basic skills in forex, such as how to read forex charts, is really important.
This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system.
By the time you finish this article, you’ll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially if you haven’t traded forex before.
Firstly, let’s revise the basics of a forex trading as this relates directly to how to reade forex charts.
Each currency pair is always quoted in the same way. For example, the EURUSD currency pair is always as EURUSD, with the EUR being the base currency, and the USD being the terms currency, not the other way round with the USD first. Therefore if the chart of the EURUSD shows that the current price is fluctuating around 1.2155, this means that 1 EURO will buy around 1.2155 US dollars.
And your trade size (face value) is the amount of base currency that you’re trading. In this example, if you want to buy 100 000 EURUSD, you’re buying 100 000 EUROs.
Now let’s have a look at the 5 important steps on how to read a forex chart:
1. If you buy the currency pair, that is, you’re long the position, realise that you’re looking for the chart of that currency pair to go up, to make a profit on the trade. That is, you want the base currency to strengthen against the terms currency.
On the other hand if you sell the currency pair to short the position, then you’re looking for the chart of that currency pair to go down, to make a profit. That is, you want the base currency to weaken against the terms currency.
Pretty simple so far.
2. Always check the time frame displayed. Many trading systems will use multiple time frames to determine the entry of a trade. For example, a system may use a 4 hour and a 30 minute chart to determine the overall trend of the currency pair by using indicators such as MACD, momentum, or support and resistance lines, and then a 5 minute chart to look for a rise from a temporary dip to determine the actual entry.
So ensure that the chart you’re looking at has the correct time frame for your analysis. The best way to do this is to set up your charts with the correct time frames and indicators on them for the system you’re trading, and to save and reuse this layout.
3. On most forex charts, it is the BID price rather than the ask price that’s displayed on the chart. Remember that a price is always quoted with a bid and an ask (or offer). For example, the current price of EURUSD may be 1.2055 bid and 1.2058 ask (or offer). When you buy, you buy at the ask, which is the higher of the 2 prices in the spread, and when you sell, you sell at the bid, which is the lower of the two prices.
If you use the chart price to determine an entry or exit, realise that when you place an order to sell when the chart price is say 1.330, then this is the price that you’ll sell at assuming no slippage.
If on the other hand, you place an order to buy when the chart price is the same price, then you’ll actually buy at 1.3333. A forex system will often determine whether your orders will be placed simply according to the chart price or whether you need to add a buffer when buying or selling.
Also note that on many platforms, when you’re placing stop orders (to buy if the price rises above a certain price, or sell when the price falls below a certain price) you can select either ?stop if bid? or ?stop if offered?.
4. Realise that the times shown on the bottom of forex charts are set to the particular time zone that the forex provider’s charts are set to, be it GMT, New York time, or other time zones.
It’s handy to have a world clock available on your computer desktop in order to convert the different time zones. This is important when you’re trading major economic announcements.
You’ll need to convert the time of an announcement to your local time, and the chart time, so you’ll know when the announcement is going to happen, and therefore when you need to trade.
5. Finally, check whether the times on your forex charts corresponds to when the candle opens or when the candle closes. Your charting software may be different to someone else’s in this way.
The reason I mention this, is that if you need to trade major economic announcements, either by entering a trade based on the movements that happen after the announcement, or to exit a trade before the announcement in avoid getting stopped out during it, then you need to be precise (to the minute!) as these trades are performed according to what happens at the 1 minute immediately after the announcement, not the candle afterwards!
So there you have it.
You now have the 5 essential keys to how to properly read forex charts, which will help you to avoid the common mistakes which many forex beginners make when looking at charts, and which will speed up your progress when you’re looking at forex charting packages, and forex trading systems that you want to trade!
Now that you know this, practice looking at forex charts with each of these 5 points in mind.
So get to it!
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Posted by Paul on 26th, 2010
Buying Currency in Iraq: A bargain or not?
If you do an Internet search for companies that trade in currency, you may be surprised to find that there are dozens, if not hundreds, of web sites dedicated to promoting the purchase of the Iraqi currency. Many of them tout it as a get rich quick scheme. Others say that it is a patriotic way to support the new democracy of the Iraqi people and their government. Still others base their marketing on the notion that buying the Iraqi currency (the dinar) is like buying a penny stock ? it is so cheap that you can afford to buy huge quantities, so that even a slight increase in value will guarantee huge yields on your original investment. But buyers beware, because there is no proof that the dinar will make a comeback anytime soon.
Here are a few things for would-be investors to consider before venturing into ownership of the dinar. First of all, there is still no official and organized market for trading the Iraqi currency. This means that even if you want to buy and sell the dinar as a currency trader, there is no way to ensure that you will be able to find a market for it. Without buyers and sellers coming together in an organized fashion, the currency lacks liquidity ? if you need to sell your dinars to convert them to dollars, you may have to wait days, weeks, or months to find a buyer to take them off your hands. And without such liquidity, those who broker the notes will be taking big commissions, to make it worth their while. All of these things will factor into your ability to make a profit from trading the currency.
Many who advertise sales of the dinar will not buy the same currency. That should make you somewhat skeptical, because if it is such a good deal, traders would not only sell dinars, but also be interested in purchasing them. And they claim that even a fraction of an upward movement in the currency can make you a millionaire. That may be true, but it is no insurance that the currency will go up. And meanwhile, currencies of other, more economically stable countries in the world ? like Turkey, for instance ? are cheaper to buy that the dinar, so why not invest in those currencies instead? The fact is that Iraq?s economic outlook is bleak, and the possibility of making huge profits by buying and selling the dinar remain slim ? at least for now.
Of course if you want to show your support for the country ? and buy a souvenir for your grandchildren in the process ? there is nothing at all wrong with buying dinar notes, as many of them as you want. They are very inexpensive ? you can buy them for pennies ? and they have some historical value as keepsakes from an interesting time in the long story of Iraq?s civilization. But to buy them strictly upon their upside price potential is another thing altogether, and the inherent risk of such a purchase makes it more of a gamble than an investment.
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Posted by Paul on 20th, 2010
Better Understand Technical Analysis and Some Indicators
We?re focusing on technical analysis in this article with a description of some of the important indicators.
We could say, all wealthy traders use technical analysis but not all technical analysis traders are wealthy although T.A. is the most precise way of trading the Forex market. It?s also useful note that fundamentals play their part in indicating whether a price will move up or down. It gives you the edge over other traders.
Technical Analysis is so powerful because of a few reasons
1) it represents numbers. All information and its impact on the market and traders is represented in a currency?s price.
2) It helps to predict trends and the foreign exchange market is very ?trendy?.
3) Certain chart patterns are consistent, reliable and repeat themselves. T.A. helps us to see them.
Here?s one way of putting technical analsysis into perspective (wish I had a dollar each time I said ?technical analysis?). We all know that prices move in trends. Research has shown that those that trade ?with the trend? greatly improve their chances of making a profitable trade.
Trends help you become aware of the overall market direction and often rescue us from less then profitable entry points. I attended a 2 day course costing me over %2500 AUD and the biggest thing I learned from it was the need for discipline and emotional control. The content was so basic that within the next 3 or 4 articles, I would have covered all of it. So learning the ?tools of the trade? the technical indicators and their applications will help you to diagnose what the market is doing but even then you need to expect ups and down and trade with emotional control.
Stay with the trend, follow the price.
Find the price of the currency pair. If EUR/USD is 1.4224 and moves to 1.4180 then 1.4090 then the market is in a down trend. Concern yourself only with what the market IS doing not what it might do. Listen to the markets and the indicators will backup what they are telling you.
Moving Averages.
Tell you the price at a given point of time over a defined period of intervals. They are called moving because they give you the latest price while calculating the average based on the selected time measure.
They lag the market so to give you an indication of a change in trend, use a shorter average such as a 5 or 10 day moving average. By combining a shorter term and longer term M.A. you can detect a buy signal when the shorter term crosses the longer term moving average in the upward direction. Or a sell signal if it crosses in a downward direction. For example, you could use a 5 day versus a 20 day moving average or a 40 day versus a 200 day moving average.
There are simple moving averages, linearly weighted which gives more importance to the recent prices or exponentially weighted. The latter is a favourite because it considers all prices in a time period but emphasizes the importance of the most recent price changes.
MACD
Based on moving averages, a MACD plots the difference between a 26 exponential moving average and a 12 day exponential moving average, with a 9 day used as a trigger line. If a MACD turns positive when the market is still plummeting it could be a strong buy signal. The converse also works.
Bollinger Bands (sounds like an elastic band)
Prices tend to stay between the upper and lower bands. They widen and become more narrow depending on the volatility of the market at the time. A sell signal would be when the moving average is above the Bollinger bands and vice versa for a buy signal. Some traders use it in conjunction with RSI, MACD, CCI and Rate of Change.
Fibonacci Retracement
Describe cycles found throughout nature and when applied to technical analysis can find shifts in the market trends. After a climb prices often retrace a large portion sometimes all of the original move. Support and resitance levels often occur near the Fibonacci retracement levels.
RSI
Relative Strength Index measures the market activity to see whether it?s overbought or oversold. This is a leading indicator so helps to indicate what the market is going to do (awesome!). Ahigher RSI number indicates overbought (so expect a bearish shift) and a lower number indicates oversold.
Successful traders will generally use 3 or 4 signals to provide a more conculsive signal before entering a trade.
Always remember, ?If in doubt, stay out!? . Technical analysis doesn?t factor in political news, a country?s economic profile or fundamental supply and demand.
Technical Analysis helps us figure out how much money to risk on a trade. How and when to enter the market and how to exit the trade for profit or to minimize loss.
I sincerely hope you found this article useful.
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Posted by Paul on 13th, 2010
An Introduction to Currency Correlation
Global currencies don?t ride the trends in isolation. The apparent technical movement between two currencies in a pair may cause an effect in the behaviour of each separate currency. A third currency will also have some bearing on the rise or fall of a seemingly unrelated pair, in the view of an intermediate or beginning trader. Even seasoned trend cowboys may miss the odd significant event that results in a trade loss.
Technical analysis often comprises the bulk of the independent speculator?s trade decisions, but some attention to fundamental news must be included for a complete overview of what is happening in the market at that particular moment. Neither weather, beetles, drought, hostile takeovers nor indicted CEO?s have much real bearing on currency values, but the timing of the release of economic reports should determine if a trade is viable or not.
A rising tide raises all ships, but the trading ocean is made of waves, with deep troughs and high crests. A rising ship may have a tether to another that is dropping down the other side of the swell. As one currency in a trade pair rises, it may pull another currency up with it, or just the opposite. A drop in the Euro may allow an increase in the value of the GBP, which will certainly have an influence on the USD/GBP spread.
So when considering the merits of a good trade, also take into account the activity of each currency?s most closely related cousin. When trading the Canadian dollar, you must certainly consider the relative movement, or lack thereof, in the US dollar. Canada?s largest trading partner is the US, so fluctuations in the US economy may or may not have an effect on the Loonie, depending on the gravity of the news.
The UK maintained their own currency, the British Pound, but the economic business of Europe can still influence the directional trend of the Pound Sterling. The French Franc will also be swayed by the enterprise of the communal Euro. As you analyze your charts, take care to make a quick examination of any volatile activity in any similar currency.
The average day trader and individual speculator cannot possibly keep up with all the economic news released each day and still have time to trade and eat lunch, and old news has already shown itself in the charts. One must pay attention to important published economic developments, and generally avoid trading on report days. But the trend will indicate market sentiment, and great profits can be made by keeping the major focus on technical analysis.
International bankers and currency houses have developed complex mathematical models to track currency correlation, but these are beyond the scope of this article. In summary, just check how related currencies are trending, when preparing a trade. Another quick analytical tool for the traders? arsenal is always a good thing. May your winners run long.
Good Trading, Kelly Archibald.
Technorati Tags : currency trade trading economic
Posted by Paul on 7th, 2010
Penny Stocks are good for the new Investor
Penny stocks are for the new investor who may have limited funds to spend. discover that penny stocks are especially in new or up and coming companies or companies that are on their last leg and treading water. This doesn?t mean that even those companies that have fallen off the big lists aren?t worthy investments, all the same they have been known to pick themselves up, reinvent themselves, and find themselves back on the big lists. For the sake of this article however, penny stocks are sometimes big companies going through a downward spiral, which makes them, just like the new companies, somewhat of a risk.
The SEC or Securities and Exchange Commission classifies penny stocks as those that sell for less than %5 a share. Of course other exchanges consider those selling for less than three dollars or even one to be penny stocks. Essentially, penny stocks are those that are not exchanged on the major stock exchanges such as NYCE, AMEX, are NASDAQ. It really depends upon the exchange in which you are trading. Penny stocks are a little more risky than many of the rest however for good reason. Just as they are very risky however, they are also quite profitable for those who manage to trade penny stocks successfully.
The risks in penny stocks go well beyond the obvious and are part of the reason that payoffs are so rewarding for those who are fortunate. There is very little skill that goes into successfully trading penny stocks but a lot of luck. If you are a gambler at heart then this is definitely your sort of investment. It is very important however that you enter into penny stocks trading with the firm understanding that you aren?t likely to be successful. In fact, chances are good that you will lose as much as you make from the prospect. There are those however, who have managed to defy the odds and win quite handsomely in the game we?ve come to know as penny stock trading.
A few things you will want to keep in mind before you begin trading in this highly volatile market include the following. First of all, penny stocks are not like regular stocks where they are heavily traded and there is almost always someone waiting in line to purchase. When you decide to sell it could be a while before a buyer comes along. This means that penny stocks are not the most liquid stocks on the planet and if you need quick access to your money this is definitely not the stock for you.
Another thing to keep in mind when it comes to penny stocks is that there is often very little information on these companies. Unless you have excellent research skills and the time and energy to put them to use for your trading endeavors you are very unlikely to find much background and financial information on these companies as opposed to many publicly traded companies that are pretty much required to open their books to investors. This is dangerous to investors because knowledge is important and schemes are plenty.
Every penny you invest in penny stocks should be a penny that you are very well prepared to loose and perfectly happy to earn a return with. You could hit the lottery on your penny stock investment and earn literally three to four (or more) times what you invested in your stocks. Chances are that the opposite will be the case however and you will lose your investment. As long as you are prepared to deal with the consequences and allow yourself to be pleasantly surprised when your trades pay off you might be the perfect person to trade in the penny stock market. When making your decisions about the types of stocks, bonds, or funds you wish to include in your portfolio you may want to include a few penny stocks for the sake of diversity and to risk a small sum of money on a long shot. That long shot could just pay off.
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Posted by Paul on 1st, 2010
Online Trading is becoming more Popular
Investing and trading in stocks is something you need to learn how to do. We are seeing more and more people take the roles of financial planners upon themselves and empowering themselves when it comes to investing in the stock market. The prevalence of online trading companies has been instrumental in breaking the barriers between the super wealthy being the only ones that could afford to regularly trade in the market and the average man who now has the power to make the same trades for less than half the commissions that once would have been necessary for the same amount of work on the part of broker.
Oddly enough you need to be careful when picking your online trading source as not all companies are created equally in this manner. One of the first things you need to check out is the security with the company you are considering. In most cases, the bigger names will offer the better security. If it?s a name you know there is some safety in knowing the name. They do not want to risk their reputations by risking your money.
Another thing you will want to check out before deciding to sing up with any one online trading firm is the costs per transaction and how those costs are determined. There are all kinds of ways that little fees can hit you and become big headaches later on. You want to know ahead of time what those fees will be, when they will be charged, how they will be charged, and what exactly the fees cover. The more you clarify from the beginning the less room there is for misunderstandings later on.
Be sure you have a way to discuss problems, ask questions, and get answers should there be a problem or a misunderstanding. This is as important as knowing what the fees are going to be. If you cannot find a way to communicate with an actual person, then I suggest moving along. There is nothing I hate worse than endless cycles of holds and button pushing while listening to bad music and fuming over why my time is being wasted and I?m paying XYZ company for the privilege of them wasting my time.
Can you get around their website and do you understand the charts, bars, and graphs? It is much easier to work on a website that isn?t confusing to you. Granted the first couple of days working on any site are likely to be somewhat confusing the problem is that if you are having too much trouble navigating through the website chances are you?re going to have a little bit of difficulty even in those moments when seconds count. The easier the website is for you to get around the better it is going to be for putting you in the business of making money.
If you can find all these things and more in an online trading website then you?ve probably found a great website to begin your time as a stock market investor. If the website also offers education and advice free of charge please take the time to read through the suggestions they offer for a little bit of guidance so that you do not feel as though you?ve been thrown to the sharks?feeling as though you have someone working with you can make all the difference in the world.
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Posted by Paul on 26th, 2010
Why Play the Stock Market?
What is the point of investing in company stock? The question of the century for many would be businessmen and women may be why on earth would anyone buy stocks? Quite frankly the question should be why on earth wouldn?t they? Owning stock in a company means that you have stock in that company. You have an investment, however meager, in the success and failure of that company and for this reason you have a little bit of ownership in the company as well.
Many people purchase stocks for many different reasons. There are about as many reasons for the purchases as there are people. Some people hope to accumulate a large amount of stock within a company so that they may wield some level of power within that company. This is not always the case though in most companies those that own large quantities of stock do have a bit of a voice when it comes to the decisions being made concerning the future of the company (companies are responsible to those that hold shares of stock after all).
Others want to own a little piece of a company that produces a product they believe in. I love chocolate. For me, it makes perfect sense to invest money in Hershey stocks. It?s a product that I believe has a solid future (I also happen to know a lot of other chocolate lovers), an excellent product, and real potential for new products, and an eye on emerging markets. These are things that those purchase stocks should look at before buying stock. At the same time, I realize that Hershey stocks are very established and any earnings on my few stocks are going to be minimal. At the same time, this is a very stable stock that is likely to bring in some money year after year. Not a sprint stock to be sure but an endurance stock that I get a kick out of including in my portfolio. In other words, some people buy stock simply because they like the product.
Day traders buy and sell stocks like some of breathe in anticipation of making money and nothing more (well for the most part, some do it for the rush and the thrill of the hunt for those elusive stock market moments of triumph). Of course most people buy stocks in hopes of ample returns on their investments, some just expect more immediate returns than others. Day trading is a drive through type of investing compared to the long lines that people stand in inside waiting for the long term payoffs that retirements are funded upon.
You will find as many reasons for investing, as you will find reasons to purchase stock. The questions you should be finding out for yourself is why people by certain stocks and that is question that is going to be individual to each person for each stock they purchase. There are no magic formulas for success though there are many things you can do to lessen the risks of failure when investing in stocks in bonds.
If you are interested in investing in stocks your first stop should be the library. There are many books on the history of stocks, financial planning, and that offer excellent advice on building a portfolio. Once you have done your research, visit a stock broker to help you get your stock portfolio started.
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Posted by Paul on 21st, 2010
Different Investment Methods
When entering the world of investing you may find the difference between stock market and mutual fund investing quite confusing. In fact, to those who have never even considered trading stocks or funds there are all kinds of options that you have probably never considered that are widely available to those who make use of various brokerage services that can be found online or off.
Among the most popular options for the trading public, of course, is the buying and selling stocks. Purchasing a stock is the same as purchasing a little bit of ownership in a given company. You will find that the average share of stock doesn?t provide you a big piece of the corporate pie by any means but if you?ve always loved those Kodak moments wouldn?t it be nice to be able to say you are a part owner in Kodak, perhaps then you will feel as though you really are getting your money?s worth. It is certainly incentive to encourage everyone you know to buy products to help improve your potential returns.
Mutual funds are also very popular among the investing public. While they do not work in quite the same fashion that stocks work you will typically find that you own a few stocks and/or a few bonds in the process of owning your mutual funds. These are definitely long-term investments but many happy retirements are being built on these funds and they are quite valuable to the average investor who seeks stability and profit in smaller degrees rather than one at the detriment of the other.
Day trading is another form of investing that is gaining no small degree of attention, not all of it good. For some people, day trading is an adventure game though the costs can be quite high if proper care and attention aren?t devoted to learning the best methods for investing in this very risky investment type. Day trading is not really investing so much as it is buying and selling quickly in hopes of massive profits immediately. Most people consider investing more of a long-term commitment but day trading is more like a one-night stand.
Trading penny stocks is another risky business in the investing arena but many millions have been won in lost with these kinds of stocks. Many of the big businesses you see listed on the big boards today began their trek to the top of the heap as penny stocks and many find themselves as penny stocks once again when on their way down from the heights of fame and infamy. Fraud is rampant in the penny stock arena so be sure that you keep both eyes open if you decide to try to navigate these shark infested waters.
With bonds you are essentially loaning money to the business or agency that you are bonding with and they will pay you back at an agreed upon time. This is a risk though admittedly not as risky as other investment methods. There are many who swear by bonds and those that avoid them like the plague. I prefer to deal with bonds only as a part of mutual funds but that is just my personal choice. Whether or not you decide to take on a bond or two is strictly your choice as well.
As you can see there are many options for those who are interested in investing. If you do your research it will make your decisions that much easier.
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Posted by Paul on 15th, 2010
What so you need in a Broker?
Stock market investing is hard to understand without help in the beginning. Most people find that the waters are very frightening indeed and filled with all kinds of new words, new meanings, and confusing contradictions. For this reason it is best to work with a financial advisor or stock broker while you are learning your way around the world of investing in the stock market and mutual funds.
A broker can help you learn the terminology and make informed decisions that are in keeping with your financial situation and your financial goals. He or she can also help you identify your financial goals and your retirement needs as well as a timeline for retirement. In other words a broker is an invaluable tool in helping you secure the financial future of your dreams.
When you are searching for the right stock broker to work with you will want to consider a few things first. You will want to find out about his history. How long has he been in the business, how long has he dealt with specific aspects of the business? What type of education does he have? Where he went to school? And what, if any, advanced degrees, education, and certifications he may have should be a nice set of questions to begin with. Many of these of course can be found on the broker?s website so you can save your time meeting with him for more important questions.
Some of the important questions might be how much time he sets aside for his clients, how much of a retainer (if any) is needed for him to take you on as a client, what are his going commission rates, financial planning rates (if applicable), and if he is going to be available to you or dodge your calls and emails. You can often get a hint about these things before you are a customer. If he dodges your calls and emails when he?s trying to get his hands on your money, chances are he will do the same once he has them on your money.
Get recommendations from friends and family and ask them the same questions about fees, commissions, and attention before you even talk to a financial advisor. The most important thing you can get from your time with a broker or advisor is a foundation upon which you can build a financial future. If you can learn as you go by asking questions of your advisor and having them answered you just might create a situation in which the two of you have a lifelong and beneficial working relationship.
This brings me to my final recommendation. Go with a broker that you feel comfortable talking to and secure handing over a large portion of your money to. This person is going to help you plan your financial future you need to feel as though you can trust him to make the right decisions for your financial dreams and goals. If you cannot then you need to seek advise and guidance elsewhere.
Consulting a good financial planner and taking their advice will make a positive difference to your financial future.
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