ETFs or exchange-traded funds are constructed similar to mutual funds.  However, the big difference is that they are traded throughout the day like individual stocks and therefore have a different price throughout the day.  In contrast mutual funds have a net asset value which is only determined on a daily basis.  Both ETFs and mutual funds have a place in your investment portfolio.

If you already are familiar with the risks associated with investing the stock market and bond market, you should consider ETFs.  ETF trading may appeal to you if you like the idea of having flexibility in terms of being able to buy and sell at intraday prices.  This would be along the lines of day trading.  You can look into getting a gold ETF.

If you are interested in trading ETFs, the best company to work with is probably Vanguard.  They offer a wide variety of options.  In addition, you get to keep more of your money because of the Vanguard philosophy of keeping expenses low.  When you work with other companies, the costs associated can upwards to three times more in associated fees.  If you are a part of the Vanguard brokerage clients, you can trade vanguard etfs commission free.  Also, you also can sell your ETFs short and use stop-loss and limit orders with your ETF transactions to maximize your returns.

Another portion of your investment portfolio should be dedicated to foreign exchange (forex).  Currency trading is considered to be very risky, but the potential returns could make you very rich very fast.  The idea behind forex trading is ride the trends.  You study several different patterns in currencies and link them together.  For a while, in Japan, housewives would trade in the forex market with their Japanese Yen to get stronger against the falling dollar.  In addition, people who were betting that the US Dollar would decrease against the European Union’s Euro make a nice tidy profit.  Learning about forex secrets can make you rich.