Cash-rich, but no trading or investment ideas?
Lots of ordinary individuals have spare cash with which they would be prepared to speculate if they could satisfy themselves that the risk/reward ratio of the Forex or stock investment was acceptable, but, more importantly, if they thought the playing field was level.
By "a level playing field", I mean a situation where they know as much information about the stock, Forex pair or commodity as is available in the wider market and they are not being sold something by someone with a vested interest. Most private investors in stocks, commodities and Forex believe that the banks and brokers have access not just to superior information but also to this information on a much quicker basis. Rumors reach trading floors a lot faster than they hit the news wires, even these days where the dissemination of information is almost on a real-time basis. In the fast moving stock, Forex and commodity markets even a 5 second head-start is a massive advantage, and frequently the head-start is a lot more than 5 seconds. The prairie dog heads can pop up above a trading desk a lot quicker than you can send a tweet.
No-one trusts brokers anymore. The Facebook IPO was a stark reminder of the unscrupulous nature of the securities markets. You can be sure it wasn't the good clients of the investment banks who were buying the shares at $42 on the day of the float! It still baffles me how anyone could trust an industry where the evidence of crookedness is so blatant and explicit - more than 90% of broker recommendations are STILL 'Buy' recommendations!!
So where does that leave the ordinary individual who would be interested in exposing some of his assets to a higher risk in return for a higher expected return?
In truth, the choices are limited. An investor can either a) do his own research or b) he can try to find a service which provides a truly independent perspective on investment opportunities. The difficulty with a) is that it requires a huge amount of time and dedication to thoroughly research a new investment opportunity. Even then, time spent plus dedication does not necessarily equal success.
The difficulty with b) is that it is very difficult to find a service that achieves the twin objectives of properly evaluating the historical performance of companies that provide stock tips and Forex tips and which are truly independent. If you know of one such service, we would love to hear from you.
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