5 Alternative Investment Approaches

WHAT ARE ALTERNATIVE INVESTMENTS?
An alternative investment is a class of investment that is not covered under any Government regulatory like RBI, SEBI, IRDA, and PFRDA. It refers to a privately pooled investment fund – a trust or a company.

Here are some alternative investments approaches that may influence your investment decisions –

# 1 FOCUS ON ABSOLUTE RETURNS
You invest to end up with more money than what you started with. It means you are looking for an absolute return: how much did you actually make, is the main focus.

Invest in assets that you believe will do well; do not invest in a product just because it's likely to outperform the market. Have your analysis on hand.

# 2 RETURNS ARE ONE-DIMENSIONAL, RISK IS MULTI-DIMENSIONAL
When it comes to investments, returns are easy to calculate. Keep your focus on Risk involved with the alternative investment asset as well. Prepare a list of the relevant risks. You need to have a clear idea of ​​the risks involved in your investment, as it will help you to take a calculated decision.

Also, if at all something unexpected happens, you will be more likely to make better decisions if you've thought about the risks before investing.

# 3 KNOW THE SOURCE RETURN
Understand what will influence and drive the returns on your investment. While you hold the investment, monitor the value of your investment.

Constantly revise your requirements of the return drivers of investment, in case they do not match your parameters or expectations rethink your investment.

# 4 UNCLEAR IS GOOD
Anything that's not traditional is alternative. An alternative investment is populated by investment ideas that may not be immediately obvious. For instance cryptocurrency.

Continuing learning, exploring, researching, studying, and looking outside your comfort zone is the key to financial success.

# 5 DIVERSIFICATION IS A MUST
Holding a mix of assets that are equally good, but which behaves differently, will leave your portfolio's return intact, and lower its risk as well.

Diversify means constructing a portfolio with very varied return drivers and risk parameters, not just different assets.

Most of us see investing in alternative investments highly risky. However, if you desire to live a successful and fulfilling life and retire with enough money to enjoy your retirement years, you must take calculated risks. This includes risks in your relationships, risks in your career, and risks in your investments.

While taking smart calculated risks is vital to reaching your goals in life, remember that taking bad risks and losing can set you back, sometimes significantly. It may help, however, to remember that taking smart risks is as simple as making wise decisions.

A Framework for Good Decision-making

I've learned a lot in my life from observing others and through my personal experiences-both good and bad. Therefore, when I consider taking a risk in any area of ​​my life, here are the questions I ask myself:
1. What are the risks? Be honest. Do not let your emotions prevent you from carefully considering all possible risks. This is where the landmines exist.
2. What are the odds of one of the risks coming true? Be truthful. Use real data whenever you can by doing research and talking to others.
3. What are the rewards? Be realistic. Can you really quit your day job and devote ten hours a week to something and make $ 100,000 a year? (Probably not.)
4. What are the odds of those rewards? Be sensible. Find out how many others have done something similar and how they have fared.
5. What other options do I have? Be creative. Do not limit yourself. Consider all possibilities.
6. Do I need to make this decision today? Probably not. Take the time you need to do your research and explore your options.

After you finish answering these six questions, remove the emotions from your decision and ask what your gut is telling you. Also, never forget about the wild card risk; you do not know what you do not know!



Source by Aditi Joshi

Types of Binary Options

Types of Binary Options

There are a number of different types of Binary Options available for trading. This can seem a little confusing to a new trader and indeed some experienced traders.

Traders can choose the method most suited to their trading needs. Experienced traders choose different methods depending on the current market conditions and how they expect the markets to react to external effects, announcements, results, trends or other conditions.

Digital Option

The most common is the Digital Option or often referred to as the UP / DOWN Option and the CALL / PUT Option.

The trader places a CALL if he / she believes the price will end up above the entry price after the expiration of the contract and a PUT if he / she believes the price will finish below the entry price.

You must simply determine whether the digital option will end at a higher or lower rate than the active trade rate when you entered the trade.

Various expiration periods are available including 60 second, 15 minutes, 1 hour, end of day etc. Once you have committed to the trade, the platform automatically monitors your trade and exports at the appointed time without you even needing to be logged into the system. You will usually be sent an email notification with the closing status of each trade.

You can easily follow the status of on-going trades on the Trading Platform or from your account portfolio page.

Touch Option

The Touch Binary Option is another method of trading Binary Options. It has a number of varieties including TOUCH, NO TOUCH and DOUBLE TOUCH.

It comes with predefined rates needed to win the trade, rather than the trader simply anticipating whether the value of the underlying asset will increase or decrease, he / she predicts a level it will reach (touch) or not reach (no Touch). This can be a level that is either higher or lower than the current price of the asset.

Options can only be purchased at the weekend when the trading markets are closed. Then it trades during the week. If the asset touches or has passed the specific level at 17.00 GMT on Monday, the system declares a win, and the trader receives a predefined payout of up to 500% in some cases. If you are out of the money, the trade will continue in the same way until Friday when the platform expires, continuously checking each day to see if the price has reached the rate needed for a win. This gives the trader 5 days and 5 chances to hit the target.

NO TOUCH – pays when the level defined is not reached and with DOUBLE TOUCH two levels are defined paying out when either level is reached.

One Touch is ideal for traders who believe that the price of an under asset will reach the predefined level in the future, but who are unsure about the sustainability of this price.

60 Second Option

This method expires in 60 seconds and is becoming more and more popular. The advantage of 60 second trading is that if the value of an asset is clearly moving in one direction, the trader can take full advantage by conducting a number of successful trades to maximize their profits. This makes the platform ideal for traders who are excited by the prospect of quick rewards, and who are able to respond quickly and effectively to sudden market movements.

Essentially this method is the same as the Digital Option with very short expiry times and used by traders to profit quickly from a trending market.

Boundary Options

This method is sometimes referred to as a Range Option or Tunnel Option and is similar to the Touch option but in this method two levels are defined. Upper and lower levels are defined (the boundary or range) and the trader needs the asset to stay inside this boundary to receive a payout. Some brokers will allow trades on payout on the asset breaking out of this boundary.

The variants of this method are where the asset must stay between the limits (or break out of the limits) and where the asset ends between the limits (or ends outside the limits).

This method is ideal in a stable market when trading within the boundaries and in a volatile market when trading outside the boundaries.

Other Methods

Some brokers have different methods available or allow the trader to create their own methods. For example, Banc de Binary has a method called BinaryMETA which allows the trader to sell early or double their money mid-trade.

The BinaryMETA method gives the trader analytical tools, allowing him / her to follow an asset's history from the moment it started trading. To review the history, the trader simply clicks the backwards or forwards buttons for '1 hour' or '10 minutes'. In addition, they can see their placed options directly on the graph. This allows them to analyze their options and make real-time decisions the way professionals do.



Source by Dominic Higgins