Derivatives trading and the warning from Warren Buffet

Important for all investment is always to only invest in what you understand

Important for all investment is always to only invest in what you understand. If derivatives are so complicated that you can not explain them in a few sentences leave them for what they are. Derivatives of products,
but always continue to be packaged and sold as investment products may even pose a threat to the entire financial system. Not for nothing warned the U.S. top blogger Warren Buffet all that derivatives can be considered as "financial weapons of mass destruction" financial weapons of mass destruction.
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 What are derivatives trading?

 
Derivatives trading are financial instruments derived from other products ( To derive literally means distracting). A financial derivative has value because it represents the value of another product, such as stocks, commodities or real estate.
Derivatives are traded as investment in a market that is extremely large. The potential derivatives trading is almost endless, since the derivatives themselves can always be packed further. So it can happen that certain derivatives of other derivatives are sold as an investment.

No restrictions on the packaging of derivatives


Derivatives trading may be issued or "packaged" are based on a wide variety of financial characteristics. As mortgages from banks may for example be sold to other banks, or may be issued derivatives related to equities or equity indices.
But not only financial instruments can be contained. For example, there derivatives trading have been speculated on the bankruptcy of Greece, the so-called credit default swaps .

Responding to human weaknesses



Crucial to such "get rich quick" programs is that they are responsive to human weaknesses such as greed and laziness. If you quickly and easily earn a lot of money behind your PC to tinker,
why would you even 9 to 5 for a difficult boss to work? Delicious from your armchair earn money is so much better than to stand together with other slaves work? Stuck in traffic every day Exactly those emotions focus such programs to lure customers.

Too good to be true



A simple criterion to use in judging "get rich quick" programs as critical Internet user is the following: if it looks too good to be true, then it is usually too good to be true. And if the profit model of the program is unbelievable, keep your hands off of it better.
In conclusion, you say get rich quick is an illusion. (We do not consider this exceptional cases like winning the lottery or get rich through inheritance). Also online investing or day trading is only for little people successful: often forgotten that include extreme losses to the possibilities besides extremely high returns.
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Well to be rich, but not fast



The ability to get rich thanks to online work is certainly, but you will still have to work hard.
Examples include the development of a popular website and make money with ads , or the development of an ingenious idea that completely new is. If you want earn more money in Stock Market,you can follow the web. www.sharekarodpathitips.com


But you can still be as creative as you want, be rich by the profitability of an idea (eg  the social network Facebook) is reserved for the few. For most of us, so wait the long and patient work on a website, blog or affiliate program.