In life every person is faced with important decisions about money and how to appropriately allocate it. There are budgets, kids, vacations, cars, homes, charity, and a number of other Money Decisions that all will have to make at some point. So how does one appropriately make these tough decisions? The first answer is to get educated with the advent of online information so readily accessible there is a greater opportunity to obtain education from wikipedia and other information resources that before was much more difficult to obtain. Learning the right way to articulate financial phrases is a key beginning point.

The major factor in poor investment decisions is lack of education, due diligence, and poor planning. If for example it is your goal to save sufficient capital to pay for your children's college tuition then you need to estimate a number that takes into account inflation and potentially increased tuition cost and then put together a detailed plan for saving and turning the capital into growing capital based on wise, diversified investments. That is the solution. Planning and being meticulous in what the goal is and then putting together a plan to accomplish the goal

INVESTMENT DECISIONS

An important factor in any investment decisions should be whether you are diversifying your investments among unique groups and categories. Many investors felt like investments in real estate were the most secure and as such a number of successful investors were devastated after the real estate bubble burst the past few years. Many of them wished that they had diversified their investments into gold, oil, commodities, partnerships, and other investments. In the same way many people had too much of their assets invested in real estate many including the majority of Americans who had too much invested in the stock market and when it tanked in 2008 and 2009 most have not netted any type of return over the past decade. Now imagine if they had invested a portion towards Foreign Currency trade, commodities, gold, silver, and other diversified investments... Had that been the case over the past decade instead of having little or no return they could actually have netted a positive return.

TRADING DECISIONS

If you are a Money manager/Trader the same ideas apply that working with a diversified approach will give one the best chance at being successful and profitable long term. So if you trade foreign currencies how does diversification take place? The answer is to utilize multiple, uncorrelated strategies so that if market conditions have unprecedented movements which has happened often in the past 3 years then theoretically the if the other strategies are uncorrelated and as such should continue their historical averages then overall the month, quarter, or year can remain profitable. Utilizing short term and long term strategies is another way of diversifying. Additional methods of diversification include trading multiple currencies in Forex, large cap and small cap stocks, municipal, corporate, and treasury bonds. Another very important factor is that risk should be somewhat equal and that only in rare circumstances should additional risk be placed on one strategy, trade, or currency. in the end investing and trading, and money decisions come down to one thing, they are not an exact science, but rather a way of putting odds on one's side and if there are sufficient odds on one's side included with risk management, diversification with multiple strategies and types then the likelihood of long term profitability is increased exponentially and at the end of the day there is little more that can be asked.