Real Estate Investors Discover Forex to be a Better Deal During Bubble

Forex-sm (Photo credit: Wikipedia)

---

By Scott Shubert

---

Every day we read more news about the real estate "bubble" and how prices are leveling off or even dropping around the country. Naturally this news makes many real estate investors more cautious about buying. Flippers are no longer able to rely on rapid appreciation in order to make their profits. Investors who buy and hold or lease option properties are wondering if their deals will earn any profit in the next 2 to 3 years and many wonder how long they will have to hold a property to realize any profit. Many investors have discovered that they may be stuck with a property they cannot sell for a profit and cannot rent with a positive or break even cash flow now that real estate is just not selling the way it was in the recent boom cycle. Some investors are considering other alternatives and either holding off on further buying or getting out of the business altogether until there are signals that the market has reached the bottom of its current correction.

Accelerated Wealth Through Forex Trading

While it is currently uncertain as to whether real estate prices will see any rise over the next few years some investors have chosen to postpone any further buying activity and look at other alternatives. One of these alternatives that has become quite appealing to some is Forex trading. Investors who have been taught the power of leverage through "no money down" buying strategies quickly understand the power of leverage in the Forex market. Forex trading is one of the few businesses in which one can start with a relatively small amount of capital and within a short period of time begin multiplying that capital into a larger and larger numbers. Some traders who have mastered this business have taken accounts from $1000 to over a million in one year. Not only would that be extremely difficult to achieve in real estate, in most cases the equity that is achieved in real estate is not necessarily liquid.

No "Down" or "Bear" Market in Forex

"Forex" is short for Foreign Exchange or the currency market. Because currencies are traded in pairs such as the Euro vs. the U.S. Dollar traders are never stuck with a downward trending market. If the Euro's value is falling relative to the U.S. Dollar the dollar is rising relative to the Euro and vice versa. A trader may buy or sell the currency pair at any time and profit is earned by trading in the direction of the movement whether it be up or down. If a Forex trader believes the Euro vs. the U.S. Dollar pair will rise she will enter a trade position of buying the pair. In this case Euros are being bought and dollars are being sold. If the trader believes the pair will fall he will simply enter a trade position of selling the pair. For trading purposes it makes no difference whether the pair is rising or falling. Buying and selling are both executed the same with the click of a button and profits can be seen immediately as the pair moves in the direction of your trade.

100% Liquid Market

The Forex market is the largest market in the world and it is driven by banks and institutions as well as managed funds and individual investors. A currency represents and entire nation 's economy and it is not possible to manipulate the value of a currency the way it sometimes happens in the stock market. Because banks throughout the world always have an exchange rate for currencies there is never a time when a Forex trade is not totally liquid. A Forex trader does not need to wait for a broker to locate a buyer because a trade is always immediately closed with the click of a mouse. Transactions are settled in cash that appears in the trading account immediately when the trade is closed.

What is the Risk?

Often we may hear that trading Forex is risky business. There are risks and expenses involved in any business. One of the benefits of starting a Forex trading business is that a trader can open a demo account and trade while learning the business without ever risking any real money.

Only when the ability to trade profitably consistently over time has been demonstrated should a live account be opened. One of the most important aspects of learning to trade is using proper money management and risk management.

Successful traders know how to identify trading opportunities and they know exactly how much to risk on a given trade. Win to loss ratios and risk to reward ratios are a part of trading just like knowing what products to stock are an important part of the retail business. If you hear of people who lost their trading capital while learning to trade you can be assured that they did not 1. learn to trade before opening a live account and 2. use proper money management and risk management.

How to Learn More about the Forex Trading Business

There are many sources of information on Forex trading available all over the internet. Unfortunately, very little of it is really effective in helping people to master the business of trading. Most of the information available is connected either directly or indirectly with the Forex Broker industry. And as many traders have discovered, the methods being promoted are often designed to benefit the brokers more than the trader. Is there any way to bypass the process of trial and error and really save time on the learning curve that is required in Forex trading? Entrepreneurs who have been successful in other businesses know the answer to this question. Find people who are already successful in the business of what you intend to do and do what they do. Mentors and mastermind groups provide the key to the fastest route to success. Just be aware that many "mentors" and training companies are connected with the broker industry as Introducing Brokers and they have a vested interest in teaching trading strategies that may not be in your best interest. For more information you may want to discuss the credibility of training programs with other traders in a trading discussion forum or at a trading club in your local area.

---

Scott Shubert is the founder of http://www.TradingMasterMind.com, a community of traders who share insights and results to contribute to the success of the entire community.

---

Article Source: http://EzineArticles.com/?expert=Scott_Shubert
http://EzineArticles.com/?Real-Estate-Investors-Discover-Forex-to-be-a-Better-Deal-During-Bubble

---

}
-->

Next rate cut now more likely in November, says Westpac’s back-pedalling Bill Evans

smartcompany.com.au:

Westpac chief economist Bill Evans has continued to revise expectations of the next RBA cash rate cut but is sticking with his forecast of at least one more reduction in 2012.


But he is rapidly running out of monetary policy meetings for this to happen, with November now tipped by Evans as the next likely time the RBA will move.

If the forecast were to be pushed back even further, this would only leave December 4 for one more rate cut in 2012 – a far cry from Evans' end-of-May forecast of a 2.75% cash rate by year-end.

The RBA does not meet in January.

Evans was most bullish at the end of May, following the 5o-basis-point cash rate cut, correctly forecasting a 25-basis-point rate cut in June.
However, expectations of further rate cuts in July and August did not eventuate. Evans also said at the time that he expected another rate cut in the fourth quarter, bringing the cash rate down to a record low of 2.75%.
These expectations have been revised back over the last few months as the property market shows some signs of life, unemployment remains low and the domestic economy performs in line with expectations.
Following yesterday’s RBA decision to keep the cash rate on hold in August, Evans said the subsequent monetary policy decision statement suggested November was now the most likely month for the next rate cut.
"[Yesterday’s] monetary policy decision statement gave little encouragement that a move in September can be expected, and it may be that even October will be a little early given the likely 0.8% print for GDP growth in the June quarter on September 5," Evans said.
On July 17 Evans pushed back Westpac’s forecast for the next rate cut from August to either October or November.

Important Property Investment Secrets

Image via Wikipedia

---

There are times in your life when you have the opportunity of getting really good advice that has the potential of changing your life and to give you the encouragement to achieve your dreams. I recommend that you investigate the full potential of investing in property and perhaps if you are serious about changing your financial future then you may consider taking some really good advice from the experts. Once you have received all the necessary information, then you can make an educated decision about whether this is for you and if so, avoid making all the most common property investing mistakes that could lose you a fair bit of money in the process and not have the need to say if only I had have taken some advice.

---

Six Property Terminologies Every Investor Should Know

---

By Elly Graham

---

Important Property Investment Secrets
I am aware there are a lot of real estate investors who say that they will go it alone with their property investing and that they know how it is done, but these people tend to make many if not all of the most common property investing mistakes, which has the potential to lead them to either financial ruin, or else they may be totally oblivious to the money they are losing along the way, through ignorance. Do you want to retire early and have a fun and exciting life with lots of investment properties in your portfolio? Just imagine what it would be like for you if at the end of your property journey you have loads of cash to live a life of freedom with no money worries. Let's investigate and consider the following real estate investing strategies.

STRATEGY 1: MAKE A PLAN

The first thing that is very important is that you need a plan. In other words have a big dream, know where you are going and start mapping out where you want to be. It is so important to have a goal to work towards, therefore:

1. Set goals
2. Develop a plan for achieving those goals
3. Remain focused and take action on implementing your plan.

With clearly defined goals you can easily devise a plan and with an end result in mind you can easily work towards your dream. This dream must be your dream and not someone else's this will ensure you stay focused and motivated at all times even when things may not be going quite as planned. However in order to turn your dreams into reality consistent action is required. And a plan will enable you to do so and can be achieved by following these steps:

1. Set your property goals and write them down.
2. Set a time-frame for your goals.
3. Identify the things you need to do to achieve your goals and put these into little bite size pieces.
4. Take immediate action and remember to review your plan on a regular basis to make sure you are on track.

STRATEGY 2 - GET A MENTOR

It would be a good idea not to ask family and friends unless they are expert property investors. I would recommend that when it comes to financial decisions and investment planning you need a proper coach. Just think about all the famous sports stars and millionaire identities and you will realise one important thing about them and that is, one of the reasons these people are mega-rich and successful is because they all have a mentor or coach. They fully understand that seeking the personal guidance of those who are experts in their field to assist them in getting to the next level. A mentor is accessible to you either in person or through books and you can be in contact with them either by email and phone calls or else you can follow them around by attending their seminars or talks.
Mentors use their experience and knowledge to guide and motivate you towards the goals you set yourself and generally they are happy to do so encouraging you to reach for the stars and often assist you to get out of your comfort zone and move you to the next level of success. They are happy to support you every step you take on your journey to the top! In order to find a mentor you need to start by keeping your eyes and ears open to identify the best people from whom you can learn professionally. Funny thing, when you seek you will find. No point in saying who will mentor me and why would they anyway? Simply be on the lookout and ask lot of questions. Find a mentor that has a good reputation and who has a proven track record a real estate investor and has built long term wealth, obviously, someone you look up to and is successful in the field.

STRATEGY 3 - FIND A REALLY GOOD PROPERTY INVESTING NETWORK

Align yourself with a property investing network or group consisting of experienced people and professionals. Here are some simple measures you might want to take to help you easily identify a good Network.

1. Find out what the network, are they ethical do they share your core values.
2. Check and ensure those professionals in the network are all registered in their field of expertise.
3. Speak with other property investors to find out the reputation of the property network and get the network to provide you with testimonies from past clients.
4. Make sure to conduct your research into any information the network provides you.

These measures will go a long way in protecting you and help you identify the best advice and support that you can find.

Image via Wikipedia

STRATEGY 4 - DO NOT LISTEN TO NEGATIVE FRIENDS AND FAMILY

Although friends and family may have your best intentions at heart the advice they give is not always the best for achieving your personal goals and realising your dreams. Therefore you would be well advised to:

1. Remember your personal and financial position will be quite different from others therefore you may want to consider this when someone gives you advice based on their own financial position.
2. Think twice about taking advice from someone who has made bad financial decisions.
3. Be aware of the area of expertise your advice giver has and see how that relates to the advice they are giving.
4. Only ever take advice from people who have already achieved the goals that you are aiming for as these are the people with the experience to help you navigate any obstacles you will face.
5. Refer back to your investment plan and be sure to keep on track.
6. Find yourself an experienced property investor to act as your guide and mentor and keep abreast of the current property market.

STRATEGY 5 - DO YOUR HOMEWORK

You are taking the right step in reading articles such as this one, we are in the age where timely, accurate information is a highly prized and sought after but remember that information is always changing. To be confident in all your investment decisions you need to have instant access to relevant, up-to-date information obtained from reliable sources. Keep in mind also that you will always find what you are looking for therefore look for positive things about the property investment market don't look for negative because there are always people out there with negative input and negative experiences. As with most things, information gathering and analysis is a time-consuming process. It also requires a certain level of expertise to be able to sift through all available information to find which is relevant to your requirements. In an age where we are constantly bombarded by information from all angles, this activity can become overwhelming and coupled with our everyday responsibilities such as family, jobs and social activities the tendency is to drop the ball. Therefore to learn from the experiences of others it would be recommended to:

1. Always investigate every opportunity before investing.
2. Ensure you have every detail of the investment thoroughly explained.
3. Ensure you understand your legal documents and that they are accurate.
4. Once you have secured your properties then continue to conduct your due diligence remembering that your investment is your responsibility and only yours so you will then not point the finger at others if things go wrong.

STRATEGY 6 - ENSURE YOUR REAL ESTATE INVESTING STRATEGY IS DONE FROM THE HEAD AND NOT THE HEART.

In other words, investing has nothing to do with emotions and everything to do with financial returns. For instance it does not matter if you prefer to live in a quiet country lane or in an older house away from railway stations, big malls and entertainment. You are not going to live in it - it is an investment and you have to look at it from that point of view. Good idea for instance to purchase your property when everyone else is selling and sell when everyone is buying! Remember: it's all about your return on investment - let the figures and supportive information do the talking and not your personal preferences. Therefore:

1. Obtain and assess relevant information.
2. Refer to your investment plan.
3. Never lose sight of the reason you are investing, to make money - preferably loads!!

If you have read Robert Kiyosaki's bestselling book 'Rich Dad, Poor Dad' you will understand that profit is made at the time of buying and realised at the point of selling! The housing market can go up as well as down and when the market is on a downward trend you need not worry so long as you hold on to your property for the long term. Do not do what the majority of people do which is sell.

1. Adopt the purchasing at below the 10% below market value mindset whenever possible.
2. Look into wholesale real estate investing, e.g., direct from the developer.
3. Sharpen up your negotiating skills. Read Donald Trumps' bestseller 'The Art of The Deal', get good assistance with finding the ideal property and close the deal.
4. Do not sell; remember this is a long-term investment; use your current property as equity to purchase the next property, or else if you sell only do so to purchase another property or appreciating asset.

Right - you are now one step away from being well ahead of the pack. Final Word: Follow these strategies, the earlier in life the better and one day you too will have your name listed above with the mega rich and very successful real estate investors and have for yourself long-term wealth. You will find the above strategies a very good start to see you safely on your way to success so take your newly obtained knowledge and have the edge on others: 'Knowledge is power but only when combined with action!' Start today, right now and take the necessary actions required, go on it isn't as hard as you think it is.
Author Elly Graham is a mentor who provides free information, she has a mentor too, Jim Downs, Author Appreciating Assets. Elly provides support and guidance on personal development and personal empowerment for people looking into property investment advice

---

Article Source: http://EzineArticles.com/?expert=Elly_Graham http://EzineArticles.com/?Important-Property-Investment-Secrets&id=6785060

---

Related articles

• The Pluses and Minuses of Investing that You Should Look out for (pro2sell.com)
• U.S. is top 2012 property investment pick (thehimalayantimes.com)
• U.S. Remains Top 2012 Property Investment Pick, Survey Finds (huffingtonpost.com)
• A Beginner's Guide to Investing: How to Grow Your Money the Smart and Easy Way (pro2sell.com)
• The Annual Get Smart with Property 2 Day Workshop (chanandnaylor.wordpress.com)