Investment Varies With Interval, Are You Doing it right?
Have you ever wonder which investment product to invest in? Or do not know which investment products are more suitable for yourself? Let’s talk about how to classify and organize your investment plan most appropriately.
Classification of the Products
Due to limited resources, investors will always encounter the situation of making plans and choices in self’s investment blueprint. Common investment products on the market can be roughly divided into:
1. Foreign Exchange(Forex)
Secondly, the “Indices”, is the weighted total of all component’s stock prices of the group of shares within the nation, what provides viewers to acquire the overview of the entire economic at once. For example, Nasdaq, DJ30, GER30, UK100 and China300.
Thirdly, the “Commodities”, includes, precious metal, such as Gold & Silver. Energy goods, as Crude Oil & Natural Gas. Agricultural products, as Coffee & Cotton, etc.
Fourthly, the “Stocks”: stocks of major companies in the United States, China and Hong Kong and others.
Main idea of classification I
Investors across the world have one and only common, the limited time and energy. In the concept of the global village, while Investors finishes work from this side, although the stock market has closed from their end, but the stock market from other hemisphere has just opened. This provides Investors with opportunities to conduct investment for near 24Hrs, even while asleep could be able to make profit.
For example, an ordinary office workers who work from 9 to 5 usually would only have time to watch the market at night. On the one hand, we wishes to have a long-term investment throughout our life. On the other hand, would hope to take favor to make a little bit of revenue when the volatility occurred, so how should we arrange our shares in the investment plan?
First of all, without the influence of major political and economic events, the general trend of the forex market tends only have minor fluctuate for most of time and most oftenly nudges with the fluctuations to the USD. Since the monetary policy of the United States is usually long-lasting and continuous, therefore, the forex investment is suitable for longer layouts to Investors.
Main idea of classification II
The Crude Oil Market usually interacts with the weekly U.S. Crude Oil Inventory data (such as EIA and API), macroeconomic indicators (such as NonFarm Payroll and Retail Sales Rate(MoM), etc.) and interacting with the Production Policies from Organization of the Petroleum Exporting Countries(OPEC), what is always sensitive to the macroeconomic indicators and changes in international crude oil supply and demand.
And for the Agricultural products, what are extremely close-related to the overall economic outlook. However, since various crops are deeply affected by seasonal factors and climate change. Not to speak of the affect from dull and peak seasons of the raw material with the influence on the correlation over it’s supply and demand. These are just a few key factors that would varies the market of agricultural products.
The last but not least, “Indices”, is closely related to the development of major economies in the world. For example, the Nasdaq Index (Nasdaq or TECH100) is related to the development prospects of the technology industry in the United States, while the general industry would be concluded on the S&P (SP500) or the Dow Jones Index ( DJ30).
Main idea of classification III
The “Stocks” were focuses on the development prospects of each major companies, and expects the company to maintain a strong competitive advantage in the future, or the recent investment plan for the favorable conditions of operating projects.
So far we know USD and Gold are two major influences to the entire market. The Gold has multiple investment aspects, and can be used as a reverse indicator to USD, as well as one of the tools for global central banks to adjust their foreign exchange reserves. Moreover, Gold is also the most popular investment item in the investment world. On the other hand, the global mining industry also contributes a certain degree of influence on the supply and demand of gold. Owing to the nature of flexibility on investment demand, investors can follow the market trend in the evening to conduct short-term transaction.
Thus forming such an investment portfolio: Long-term investment in Forex, Crude Oil and Agricultural products. Medium-term investment in stock indices and Stocks, and Short-term investment in gold or other goods, after proper arrangements, a short-, medium- and long-term investment portfolio can be formed.
Examples of investment periods
- Long-term: Forex, Crude Oil & Agricultural products. Observation on Daily range over the Market Trends on candlestick chart.
- Mid-term: The Indices or Stock. Investors may regularly follow the market changes on the 4Hrs range chart.
- Short-term: Gold or Silver. Would recommend to monitor the 1Hr or less ranges, such as a 15-minute level chart.
In the process of building an investment portfolio, the proper planning is required throughout the entire interval of invest. The so-called successful people did find their way. If a short, medium and long-term investment layout is reasonably planned, not only may assist Investors to manage the foreseeable risks, but also, can provide Investors to prevent the occurrence of missing the big waves. When you have spare time, you can also do some short-term operations to hone your investment skills. Therefore, investors can try to think about whether their commodity investment period is reasonable from the perspective of macro economy, so as to march to a steady growing investment path.
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Disclaimer: Information above can only be use for references and doesn’t represent our platform’s opinions.
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