Target Asset Allocation vs. Forex Trading Procedures
A More Critical Look
Target Asset Allocation is a procedure used widely by many reputable Brokerage Houses, Stock Brokers, Investment Counselors, and Financial Planners to help clients achieve, or, try to achieve their future financial goals. The process first seeks to find out from the client what their financial goals are for the future. Secondly, it must be known how much time the client has left before these financial deadlines become due... such as retirement. The next step is to understand how much risk the client is willing to take in order to meet those deadlines. Then the client is provided a selection of diverse stocks, bonds, or other underlying funds whose past performance(s) would best suit those objective-needs while considering the risks involved. Selecting a diverse group of funds/stocks and/or bonds will balance the port folio against substantial loss associated with having most of the client's money tied into only one or two investments alone, should any fail to perform. This is because there are no guarantees on the performances. Finally, the portfolio of funds must then be monitored to ensure that they stay on target with the objectives. If not, some of the funds might be sold (with consent) even at a sizable loss, and others acquired in its place.
Other limiting growth-factors are; the short number of years remaining before the financial responsibilities become due; the amount of money the client may have available to invest; the client's unwillingness to accept certain risks - which may leave him or her with a lesser performing portfolio unable to achieve the goal(s) in the time remaining, and; the ongoing Brokerage Fees and Fund Fees for managing the investments - which also reduces the client's earning potential.
By comparison to our Forex Trading, the Targeted Assets are the actual day to day opportunities of low to moderate gains presented as a reflection of changing financial dynamics in the world's currencies. The balance between low to moderate gains makes the trades suitable for both short and long term objectives. These gains might be made in a matter of days, hours, or even minutes. The investment objectives brought to bear on these opportunities, are a standard low to moderate risk approach. There is no need to over-commit/over-leverage on a trade, as the opportunities are numerous and continually available in an industry whose trading activities are open 24 hours a day, five days a week, in order to take advantage of the ever-changing market-dynamics.
The diversification comes in the form of six (6) various world currencies available to act upon... taking advantage of a country's currency increase as well as its decline, and, the use of various Professional Traders with competitively slight differences in performance, all of which balances and diversifies the trading activity.
Account monitoring is done in the form of Senior Managers ensuring that their Traders continually operate within the guidelines and policies set by the organization. This discipline is the bedrock of our success. There is no further need to act beyond these established parameters.
By receiving better and consistent rates of return, investors effectively reduce the time needed to reach certain goals. Likewise, more can be accomplished with a smaller amount of funds, which might be very helpful for certain investors with limited capital.
Additionally, Roteth Investments LLC does not make the practice of burdening our Member's Earnings with high fees for maintaining or managing their accounts as they grow. Not only do we share the expense of wiring funds for our International Members, we also charge a very small fee of only $3 for processing and mailing of monthly checks to our National Members.