Hedging - The flexibility to enhance investment returns and protect your investment portfolio

Unpredictable situation in financial market

As far as the market is concerned, sometimes it's just very unpredictable due to a lot of others unforceen circumstances. The market may change direction suddenly to react according to global news such as raise in interest rate, higher inflation data reported, higher unemployment rate, and others important ecconomy data. Some of the main influencers like weather may directly affect the commodities production like production disruption due to bad weather, new financial control implementation by the governments like tightening the borrowing to control hot money bubble, and the organizations' news like financial reporting and merger & acquisition news.

Options available in financial market investment

In general, the most common investment options are stock market, derivatives and forex. These are where the more experience financial traders preferred. Ideally, different investment tools have its individual characteristic that cater for different investment needs. All types of investment carry risk and return. These are some common professional preferences:

• Stock market - Invest in shares
• Derivatives - Investment in resources/commodities like crude oil, copper, crude palm oil.
• Forex - Invest in currency trading

SWOT analysis dictate the right investment product

In order to determine right investment option to individual, you have to understand yourself detail enough about the main objective of the investment, as well as the risk factor you can accommodate. It is easy, you are recommended to perform a SWOT analysis about yourself to derive your Strength, Weakness, Opportunity and Threats. From there, you choose the perfect investment option which suit you the most, and further explore and focus into that area. I strongly believe it will definitely benefit you and bring you the best rewards.

Hedging - Flexibility to enhance investment returns and achieve protection against investment portfolio

It is best to always remind yourself that what is the main purpose of your investment? and why limit yourself to the particular investment tool? Since there are so many options in financial investment, you are recommended to open up for more flexibility in order to enhance the investment returns and achieve protection against your investment portfolio at the same time. Thus, it is always good to explore and understand all the products available and to know individual characteristics better. Hedging - Is one of the best solution to protect your investment returns. For instance, you can choose to Short or Long the Derivatives and Forex currency pair when there is a sudden change of market direction which is unpredictable.

24hrs trades to avoid market crash on the next open trading day

Most of the time, there are many things happen globally like bad news announce in Europe and US which causing the market collapse, it directly bring the negative impact to the next open trading day in Asian markets. When Asian markets open, most of it directly gap down and it may be too late to react accordingly. For instance, there are options available to Short the commodities like crude oil, soyoil if the commodities are collapse. At the same time, you may Long the forex currency pair USD if the economy news are good during US market trading time since Forex is 24hrs open shop! This may make you gain the profit at night to cover some of the losses in shares market when the shares open gapping down the next day. Thus, the more you understand about the financial market, the safer and excited you feel. That's the reason people always say open up for more flexibility!