| it comes to investing in bonds, you'll be hard | | | | should increase your next position size by that |
| pressed to spot anyone who will convince active | | | | same amount of money. This simply adds risk to |
| investors that there is a place for treasury bonds | | | | your trading plan. Put the money away. You |
| in their portfolio. There are positive benefits to | | | | never know when a bear market will strike, |
| bond investments that will assist in making skilled | | | | setting up an excellent opportunity to buy or go |
| investors even more effective. At the end of the | | | | short. |
| day, its all about capital preservation. | | | | You're Not Getting Any Younger |
| Bonds may not provide the kinds of returns that | | | | There is also a case to be made that as we get |
| successful investing can, that said, a smart trader | | | | older, it makes sense for us to put some money |
| will always have a portion of their investment | | | | away into something that is less risky. Bonds |
| portfolio in short term bonds. There are a couple | | | | make a great place to sock your money away |
| of perfect reasons for this: | | | | for retirement. A good rule of thumb to use is to |
| Don't Spend It All In One Place | | | | subtract your age from 100. If you're 25, then |
| A skilled trader doesn't use all of their trading | | | | sock 25% of your money into bonds and 75% |
| capital when investing. This adds too much risk to | | | | into stocks. This will ensure that you're putting |
| their portfolio. By having a portion of your | | | | money away for when you need it (and that it |
| portfolio invested in bonds, you are ensuring that | | | | will still be there). |
| your portfolio has money for when things don't | | | | Investing in bonds is very simple to do. Whether |
| work out as planned. | | | | you decide to go for U.S. Savings Bonds, |
| The Benefits Of Short Term Bonds | | | | Treasury Bonds, Corporate Bonds, Municipal |
| The advantage of short term bonds is that if | | | | Bonds, they all work in the same fashion. As you |
| structured properly, you will without fail have a bit | | | | can see, there is a wide variety to choose from. |
| of extra cash at your disposal to take advantage | | | | You can buy bonds electronically on the OTC |
| of those unique times when going all out makes | | | | market and find many large corporations who |
| good sense. | | | | offer bonds. You'll find that your online brokerage |
| Putting It Away For A Rainy Day | | | | can offer bonds for sale over different periods of |
| A skilled trader will always make sure that they | | | | time. |
| are taking money off the table, and putting the | | | | Take the time to get to know more about bonds. |
| money away. The mistake that many traders | | | | They can play a role for every investor and |
| make is to increase the size of their position after | | | | trader's portfolio. Remember, you can even trade |
| each successful trade. Just because your | | | | bonds to increase your return. |
| investment went up $5000 doesnt mean you | | | | |