The internet has changed the way investment, specifically day trading, is done. If you’re a fan of this site, you already know this. Forex and its related investment forms are fast-paced, profitable, and addictive. With all the benefits of a career, and all the replay value of War of Warcraft, web brokered investing is the holy grail for a certain kind of user.
But for every strength, there is an associated weakness. Even if you are able to make huge dividends in Forex, you’ve got to make sure that the rest of your financial house is in order, so that you can lock in those percentages. It’s not uncommon for web investors to be…shall we say…lax on some of the other details of personal finance. This many not be a problem for you personally, but here are some of the common issues for people of this demographic. Take these for what you will.
Debt is the Enemy. Unless you are able to cancel your debt, particularly the stuff that’s sucking you dry through your credit cards, you are going to be losing money, likely faster than you can gain it. Credit card debt adds up fast, and at sometimes 20% APR or higher, even the best investors have a very hard time keeping up. That’s why you’ve got to nip it in the bud, canceling the money hemorrhaging before it compromises the wealth that comes in through savvy investment dividends. The seasoned investor is all about the percentages, incoming and outgoing. To make a career of investment, you’ve got to become the same way.
Invest in the Long Term, As Well. Internet and Forex investors are focused on the market with a microscope. They’re looking for an edge that can make them a million in an hour, not a decade. And while this is exhilarating and immensely profitable for the skilled, it doesn’t take into account the long term. Investments like index mutual funds are built for the long term, decades from now when you don’t want to have to make all of your money through fast paced investing.
Don’t Forget the Details. Lots of businesses extract money from your bank account in ways they assume you’re not going to notice. I’m speaking here of things like subscription services which make it difficult to cancel, and insurance schemes like PPI. In all cases, it’s good to do some research on the ways scams and schemes commonly drip drain the bank accounts of customers and suckers alike. If one of these financial leeches has found their way into your wallet, they’re not going to take all your money. But they are going to get a percentage of your hard-won dividends, and that’s not OK for any investor.
Forex and other internet day trading investments are a great way to learn investment as a whole. But it’s important not to forget the basics of personal finance in the meantime. Forex can be a remarkable engine for personal prosperity, but you’ve got to have a good financial system to make that money work as well as it is able.