Sunday 29 July 2012

Invest some money in liquid stocks as well


Highly liquid stocks are stocks that may be exchanged for cash on a very short notice. They are typically associated with stocks that are traded in high frequencies and high volumes. As a result, such types of investment are ideal for those who are interested in speculative trading, and may also offer some advantages during investment portfolio creation. It is very important that you put some of your investment in liquid stocks so that in case of an emergency you could avail cash easily by trading the liquid stocks.

i. You can decide to trade in your own time frame:
A major benefit of trading in a liquid market is that the most liquid market, foreign exchange, is open 24 hours a day except for weekends. You can decide to trade in your own time frame, after work, before you go to work or even at work.

ii. More trading opportunities:
Another benefit from trading in liquid markets is volatility. When a price fluctuates as it does in a liquid market more trading opportunities are available. If you buy an asset and its price doesn’t move there is little or no opportunity to make a profit.

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