Forex Trading Robots - How the Largest Investment Banks Use Robots on Forex

It's been a few years since I took part in developing TOP-10 trading robots at one of the world's largest investment banks. I also was an advisor the developing automated data analysis systems at one of the limited-access hedge-funds...

During the work process I had summarized the statistics of how the market-makers sometimes make billions of dollars a day (please note that I'm speaking of high-value speculations but not of investing in "toxic" assets that some banks suffered losses lately).

75% are the automated trading systems, robots 15% - are riskless but low-income arbitrage operations which are conducted by actual people 5% (don't say that to anyone) is the usage of insider information

Forex Trading Robots - How the Largest Investment Banks Use Robots on Forex

And the mere 5% are those operations that are conducted by dealers on the basis of publicly available information, i.e. classical trading.

How to become a successful trader?

Get profit along with the investment banks, algorithmize and automate your trading systems. Do you think it is too complex or requires large funding? No, this is not so...Why are automated Forex trading robots better than manual trading? There are several reasons:

no emotions - no losses because of it no time spent watching the market - more opportunities to earn from non-sleeping markets like Forex and the most important thing is that you can test it before you start to use it! and the most important thing is that you can test it before start to using!

You must to test it beforehand, using that Forex trading robot, so you'll know what profits and losses are waiting for you in the future. When you know what an interest (%) is there and know your potential risks it turns to weighted investments, like you put money on a bank deposit, but your interest rate depends on the Forex trading robot and it can be much bigger as well as having risks. But if one part of your money is on bank deposit, another one, for example, is in shares or bonds, and you would like to see your "extra" money or you just a risky person, so you could use Forex trading robots...

Forex Trading Robots - How the Largest Investment Banks Use Robots on Forex
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

For the absolute best information on Forex trading systems, robots and strategies, tips and tricks for maximizing your profits visit Forex Robots.

For a free mini-course on Forex trading robots visit http://blog.ftsystem.org right now.

Best Stock Fund and Bond Fund Investment Strategy for 2013

The best investment strategy for 2013 will differ from conventional investment strategy for both stock funds and bond funds. Many investors have fallen in love with their bond fund because it has been their best investment, in terms of performance, for years. It's time to look beyond 2013 in putting together your best investment portfolio to balance risk vs. return to limit the possibility of significant losses going forward.

Hindsight is of no value in the investment world, and even the best stock fund or bond fund will lose money if the investment environment goes against one or the other asset class. As an investor you need balance, and for the average investor this means you need both kinds of mutual funds in your investment portfolio. Now, you also need to re-think your investment strategy in both cases, because interest rates have been falling for 30 years and have recently hit EXTREME all-time lows.

What this means is that even though bond funds have performed well vs. safe investments and even stock funds - the best investment strategy now is to start limiting your exposure to risk in this asset class. The reason: these funds perform well when rates are falling, and lose money when rates rise. Even the highest quality or best bond funds are subject to this phenomenon called "interest rate risk". The signature of long term bond funds is interest rate risk.

Best Stock Fund and Bond Fund Investment Strategy for 2013

So, what's your best investment strategy to get both income and growth in 2013 and beyond and what are the best funds to own? Look for intermediate-term bond funds with investment portfolios where the average maturity is 5 to 7 years vs. 10 to 20 years or longer, to increase you safety factor. You will sacrifice some dividend income, but will greatly reduce interest rate risk. Then, look for the best stock fund investment that will both lower your risk of owning a stock fund while making up for the dividend income you have given up.

What you need to understand is that your bond fund has likely been your best investment in recent times not because it has paid such high dividends - but because it has been going up in value due to falling interest rates in the economy. There are stock funds out there right now that pay higher dividends, and do not have interest rate risk. Your best investment strategy would be to emphasize these funds, since some of the best stock funds pay higher dividends than the average bond fund.

The best investment strategy for 2013 will be to lower your allocation to bonds and funds that invest in them, while also lowering your risk in stocks (growth funds) that pay little if anything in dividends. At the same time, it is always wise to lower your cost of investing in mutual funds of both varieties in order to increase your net return. Now, let's get more specific in terms of the best bond funds and best stock funds to invest in so we can put our investment strategy in action.

The best investment strategy for bond funds: go with intermediate-term INDEX FUNDS with NO sales charges and low yearly expenses. This can save you 3% or more upfront and about 1% a year for expenses. This is significant when you consider that you can't earn 1% a year on most safe investments, and most bond funds won't be paying dividends of even 3% in 2013. Plus, longer term funds have significant downside risk called interest rate risk.

The best investment strategy for stock funds: Go with stock INDEX funds that invest in large companies that pay higher than average dividends. Consider real estate equity funds as well for even higher dividend yields. If you include both in your investment portfolio, and go with no-load funds to avoid sales charges and lower your yearly expenses, you could net an average of 3% or more in dividends. Plus, these funds have less downside risk than growth funds that don't pay significant dividends.

The best investment strategy for 2013 will provide you with a relatively attractive dividend income - while lowering your risk in both your stock fund and bond fund investments.

Best Stock Fund and Bond Fund Investment Strategy for 2013
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Author James Leitz has 40 years of investing experience and would like to help you learn how to invest. Get up to speed on how to invest at http://www.investinformed.com.