Basic Forex Investment

Investment is a word that is not foreign to our ears, but whether the nature of the investment itself? Investment is often defined as a place for the money or capital or interest by buying the property, stocks, bonds, etc., but in general the investment can be understood as taking / use of time, money or labor to the advantage / benefit in the future. So basically the investment is "buy" something that is expected to be "sold back" in the future with a higher value.

Why do we need to invest? There are many reasons for this, one of which is preparation for the future as early as possible through the preparation of plans that are tailored to the needs of today's financial capability. As we know over time the value of the currency could be reduced because of inflation, such as rising prices of goods and services, inflation is one of the main reasons why we need to invest, either the funds or assets that already exist or will we have to "value" it can be maintained and the course is expected to increase.
From the description above can pull four main reasons to invest terms are:

    The need for future or current needs that can not be fulfilled.

    The need to protect the value of assets owned.

    The desire to add value to existing assets.

    Inflation.

Investment Risk

Risk is part of the investment, because the circumstances in the future is also uncertain and can not be accurately predicted. Investment results obtained may not be in line with expectations, and can even produce the opposite of loss, because one can not entirely escape from the risks posed by uncertainty, it is in this context that the investment be a part of life, intentionally or not people always invest, learning, working and doing business can be understood as an investment, the investment can be seen as a process of making a choice, not only to increase the wealth but also to maintain and protect what already exists.
Types of Investments Savings and Deposits
Has a way of investing the savings in the bank is the most simple, practical and easy, supported by liquidity and ease of retrieval at any time, banks are also relatively very safe, because up to now on bank deposits guaranteed by the government. Banks also provide flowers, large flowers depending on the type of deposit with the principle of the greater and longer people save money in the bank is generally the greater the interest. Similar to the savings deposits alone but with a certain period, the interest offered deposit relatively higher than the interest savings, but if the deposit is taken before the time period will be charged a penalty.
 Bond
Bonds are debt instruments with a period of time. Bonds can be issued by companies, governments or other institutions. Rewards of bond principal is capital investment plus interest coupons, coupon interest rate of this magnitude has been determined a percentage and is generally higher than bank interest or other securities that are considered safe, given the risk of a relatively higher bond. Interest payment made at regular intervals, eg 3 months or 6 months or yearly. Payments of principal himself made when the bond matures, the date on which the bond expires.
 Stock

Proof of ownership of shares (equity) rather than debt. Buying a stock means having a portion of the company, meaning that you also share the risk with the issuer (issuing shares). If the issuer a profit, some will be distributed to shareholders in dividends.
 Opening a New Business

Opening a new business is also a form of investment. The reason why people open up a new business, in addition to the potential outcome could also be infinite in order to do the job really like, to develop individual creativity and also achieve financial independence. Keep in mind that the risk of opening a new business is relatively large, business losses can be up to the bankruptcy could be more than capital spending. In addition it also takes time dedication, skill, seriousness, determination and perhaps talent.
 Property
One option that is relatively safe, as long as there is no risk of political upheaval the house / land will not be reduced. Also the potential of its investment in the form of increasing the selling value and the result of the lease. Investing in property requires a relatively large amount of funds as well as long-term commitment, because even though its value will continue to rise, the liquidity constraint is the resale of the property that is not easy and takes a long time.
 Precious Metals
The purchase of jewelry such as gold can also be a means of investment, but can be sold again with relative ease, gold prices also continued to increase over time, although there is a lower selling price to the value that has been used. Gold purchases also protect from currency depreciation, as gold prices increase with inflation it is similar to deposit funds in foreign currencies, they both protect from the risk of decline in currency values.
 Kolektibel
Investments in the form of a collection of objects such as works of art, although many non-economic considerations in investment in this area, but keep in mind that the value for the goods tend to rise but kolektibel though immeasurable, as well as liquidity constraints in which it is difficult to sell back and estimate the value of selling.
 Futures Markets
This market is emerging from the onset of forward transactions, the transaction done today but the payment and delivery of commodities carried out at a later date has been set. The transaction is to protect buyers and sellers from price fluctuations are not expected. The time difference between the transaction with the delivery of a commodity that can be exploited for months by speculators to trade in such forward contracts. Speculators are not producing / consuming the product, the contract traded in the hope of profit from future price fluctuations due to changes in supply. Futures market was originally only commodity, but then spread to the capital markets, money markets and foreign exchange.
 Mutual Funds
For someone who wants to invest in money market or capital market but do not have the expertise or do not have the time to invest in mutual funds. Mutual fund is a container that collects funds from investors and then managed by the Investment Manager to the various investment instruments. Investment instruments that can be selected there is a variety such as bonds, shares or a mix of bonds and stocks. Besides mutual funds based on short-term debt instruments with maturities of less than 1 year is a money market fund.