Have you recently been bitten by the travel bug?
Are you soon required to relocate in order to accommodate a new job position?
Whether you consider yourself a citizen of the world or you are simply looking for a change, travelling is a great way to expand your horizons.
Still, money can and will represent an ongoing concern. This is why it is a good idea to appreciate the sheer potential of online investing. Perhaps even more importantly, is there any one “key” to financial independence when trading?
Let’s see what the best in the business have to say as well as how you can put your best foot forward from the start.
Know Your Trade
Many investors want to take on the world in regards to profitable positions. Although diversification is a good thing, it should never be mistaken for spreading yourself too thin.
One principle which has served countless traders well is what Warren Buffett refers to as the “circle of competence“. This concept will represent the focus of the article.
What is meant by a circle of confidence?
Simply stated, this signifies that traders should only become involved with positions associated with an innate sense of familiarity.
For example, the chances are high that a commodities expert would fare poorly if he or she suddenly became immersed in the Forex markets. The same holds true for other sectors. It is much more prudent to focus upon one or two underlying asset classes if you hope to maximise your returns over time. Still, this principle can be extended far beyond typical stocks and shares.
Informed Positions: The Strategic Edge
Some methods are better than others if you hope to make money while abroad.
CFD positions are perfect examples due to their liquid nature as well as the possibility to turn a profit even if the value of the asset itself begins to fall.
Furthermore, the upside to CFD trading is the fact that you can access the markets anywhere in the world. This sense of on-the-spot flexibility might not always be possible with other ventures.
Practice, Practice and Practice Some More
If we once again refer to the previous maxim coined by Warren Buffett, your skill set is very important. Try to hone one specific talent (such as your proclivity towards short-term positions) and capitalise upon this trait through practice. Let’s look at this approach in another way.
The traditional Japanese would spend years at a time perfecting a certain action or task (such as learning the art of pouring tea, or simply The Way of Tea).
As a result of such dedication, they would become experts in a specific trait. This very same approach should be taken in regards to investing. However, keep in mind that you can still diversify within a single asset class in order to achieve greater diversification.
Regardless of your choice of investment or the ultimate goal, this strategy could very well represent the most effective mindset to possess if you hope to make money with consistency while travelling abroad.