Wednesday, September 3, 2008

Investing in Volatile Markets

What are the three most important factors in investing in property? They are location, location and location.

What are the three most important factors in investing in equity? They are timing, timing and timing.

If you invest at the right time, you can earn 5% to 10% more, compared to investing at the wrong time. What is the right time? It depends on major events and how they affect the market prices.

You can learn about the impact of events on market prices through this simulation game:

www.tankinlian.com/trader

Tips:

1. If interest rate goes up, the currency goes up
2. If USD goes up, JPY and EUR is likely to come down.
3. If stock goes up, bond is likely to come down (as people sell bond to buy stocks)
4. If oil price goes up, USD is likely to come down, and gold will go up.
5. If the US economy does well, the US stock and USD is likely to go up.
6. If company profits goes up, the equity is likely to move up.

With these tips, see if you can learn the right timing decisions!