In our previous illustration we discussed risk management techniques, strategies and a few key terms that are essential when creating an investment portfolio. It is important to remember that trading is a strategy. Once one is comfortable and has developed a strategy that is effective, one will yield a return.


Forex the foreign exchange is a global decentralized market for trading of currencies. In terms of volume it is the largest market in the world.

Futures is a standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed upon today, with delivery and payment occurring at a specified future date.

Commodities unprocessed goods that can be processed and resold. Commodities are for immediate or future delivery  of  grains, metals and minerals.

ETF a security that tracks an index, commodity or a basket of assets like an index fund but trades like a stock  on an exchange.