There are millions of people worldwide that see the Forex market as a place to invest for the future. Many of these people have invested in the stock market with good and bad results and look to the currency market to increase their income stream. But theres a problem! Most of these people forget the basics of the stock market, and are bringing the same bad habits to the currency market. If you learn to trade Forex properly, you will succeed. At the end of the day, the basic fundamentals are your life line to success. Around 3 trillion dollars(give or take) change hands daily at Forex. But like I've said before it is necessary to know the basics of Forex Trading before jumping head first into this ocean of money and chance. There no set in stone outcomes, as the Forex market is ruled by chance. So you must trade with effective and mature trading tactics. Forex Trading successully requires you to learn new strategies. Dont be afraid of new information because this can lead to great profits. In addition to this, money management strategies are one of the most important fundamentals. Like your grandmother use to say, "Dont put all of your eggs into one basket". Forex trading can be fun and exciting. If you are interested in Forex, practice and persistence will make all of the difference to your success or failure. This is the information age. We can now learn anything our hearts desire online. Same goes for tutorials now available online which can help explain everything a person needs to know about the Forex market. From novice to expert and you can learn at your own pace. These tutorials will show anyone how the Forex market works, what is a Forex technical indicator, plus the types of economic indicators that a trader should be aware of when trading in Forex. Also there are many different Forex trading systems now available for anyone to use which will asist them in making their Forex online currency trading much more successful. I cant stress this enough! It's never a good idea for you to start out by putting every last penny into the market in your first trade. Hold on cowboy! It's very important to get some practice first, commonly by paper trading. This consist of working out transactions and pretending to trade them, without actually putting the money into the market. Paper trading is a excellent way to familiarize how the market works, and learn the software tools your Forex broker will provide to you. The majority of online brokers will allow you free paper trades for a set period of time. Hot Ttip: When choosing an online broker look for the ability to trade a demo account. Now if you discover that your paper trading results in a loss, a wise choice would be to learn some more before trading with your hard earned money. You might have heard your dad say before"Money dont grow on trees".
by Percival Rashid
Saturday, June 16, 2007
Know Your Numbers in Commercial Real Estate
Commercial real estate is one of the best markets out there for investors; however, there is more to it than merely purchasing property and selling it to someone else. When investing in commercial real estate, phenomenal returns and profits are possible, but it takes a coordinated combination of trends, timing, location, and the right price in order to be successful. Finding the right commercial property, in the right place at the right time, is what is essential for a great deal that will bring in a great amount of profit. If you know your numbers, you can definitely find commercial real estate to be a profitable market.
The #1 Factor The most important factor to keep in mind, if you want to be successful in commercial real estate, is finding the right piece of commercial real estate. When looking for the right piece of real estate, there are a variety of different factors that investors must keep in mind. It is imperative that you look at current trends in the market when it comes to commercial real estate so you can find the best areas to invest in. If condominiums or apartments are a huge trend in the market, then you may want to invest in this area of commercial real estate. If you take a look around the area and see a need for a shopping mall or strip mall, then you may want to invest in the commercial property needed to build one. When you find the current trends in your area, you will be setting yourself up to make an easy profit.
Finding the Best Place The second factor you need to remember when dealing with commercial real estate is finding the best place for your investment. Make sure that you consider both the property and the location of the property when you are making your decision. If the property is great but the location is bad, then you may lose money, and the same is true if the property is bad and the location is good. In order to make the optimum profit, you want to find the commercial real estate that has good property in a great location. Doing your due diligence can help you find out whether or not the property is a great property and whether the location is a good one as well. Taking the proper time and giving the right amount of effort to due diligence can help you find the best place that will make you money in commercial real estate.
Timing is Everything Although the right piece of commercial real estate and finding the best place are both extremely important factors, without the right timing your deal may end up less than satisfactory. The timing for investing in commercial real estate will have a great deal to do with actually finding the right property, evaluating current market trends, as well as a great location, and favorable costs as well. When you are doing a pre-purchase analysis of commercial real estate property, you need to consider geographic, economic, and cyclical trends before you decide to purchase the property. Even a great piece of property at the wrong time can be a disaster, so be sure you make every effort to have the right timing for your investing.
The Price is Right Another factor to be considered when investing in commercial real estate is the price. While the property may be great and in an excellent location, if the price is outrageous you will not want to waste your time. Investors in commercial real estate need to look for properties that are priced in such a way that a great profit is possible. Avoid wasting your time on overpriced commercial property, but spend your time looking for excellent deals on great properties. When you are able to find a great deal on an excellent piece of commercial property, you open the door to be able to make a very large amount of profit, which will increase your overall success as a commercial real estate investor.
If you are missing any of these key things in a deal, then it has a big chance of going sour. The best deals come when all of these deciding factors come together. The savvy commercial real estate investor needs to be prepared to move extremely quickly when these factors all come together so that they can get a quick deal and make a great profit. When you see a great piece of commercial real estate, in the right place, for a great price, and at the right time, then you know you have the opportunity to make a huge profit quickly. If all these factors align themselves at the same time, you will know that it is the perfect time for a great deal that will bring you a great deal of money. Remember, success in the commercial real estate market is relative to cash flow, and a deal that includes each of these factors will definitely affect your cash flow in a positive manner.
by Tony Seruga, Yolanda Seruga and Yolanda Bishop
The #1 Factor The most important factor to keep in mind, if you want to be successful in commercial real estate, is finding the right piece of commercial real estate. When looking for the right piece of real estate, there are a variety of different factors that investors must keep in mind. It is imperative that you look at current trends in the market when it comes to commercial real estate so you can find the best areas to invest in. If condominiums or apartments are a huge trend in the market, then you may want to invest in this area of commercial real estate. If you take a look around the area and see a need for a shopping mall or strip mall, then you may want to invest in the commercial property needed to build one. When you find the current trends in your area, you will be setting yourself up to make an easy profit.
Finding the Best Place The second factor you need to remember when dealing with commercial real estate is finding the best place for your investment. Make sure that you consider both the property and the location of the property when you are making your decision. If the property is great but the location is bad, then you may lose money, and the same is true if the property is bad and the location is good. In order to make the optimum profit, you want to find the commercial real estate that has good property in a great location. Doing your due diligence can help you find out whether or not the property is a great property and whether the location is a good one as well. Taking the proper time and giving the right amount of effort to due diligence can help you find the best place that will make you money in commercial real estate.
Timing is Everything Although the right piece of commercial real estate and finding the best place are both extremely important factors, without the right timing your deal may end up less than satisfactory. The timing for investing in commercial real estate will have a great deal to do with actually finding the right property, evaluating current market trends, as well as a great location, and favorable costs as well. When you are doing a pre-purchase analysis of commercial real estate property, you need to consider geographic, economic, and cyclical trends before you decide to purchase the property. Even a great piece of property at the wrong time can be a disaster, so be sure you make every effort to have the right timing for your investing.
The Price is Right Another factor to be considered when investing in commercial real estate is the price. While the property may be great and in an excellent location, if the price is outrageous you will not want to waste your time. Investors in commercial real estate need to look for properties that are priced in such a way that a great profit is possible. Avoid wasting your time on overpriced commercial property, but spend your time looking for excellent deals on great properties. When you are able to find a great deal on an excellent piece of commercial property, you open the door to be able to make a very large amount of profit, which will increase your overall success as a commercial real estate investor.
If you are missing any of these key things in a deal, then it has a big chance of going sour. The best deals come when all of these deciding factors come together. The savvy commercial real estate investor needs to be prepared to move extremely quickly when these factors all come together so that they can get a quick deal and make a great profit. When you see a great piece of commercial real estate, in the right place, for a great price, and at the right time, then you know you have the opportunity to make a huge profit quickly. If all these factors align themselves at the same time, you will know that it is the perfect time for a great deal that will bring you a great deal of money. Remember, success in the commercial real estate market is relative to cash flow, and a deal that includes each of these factors will definitely affect your cash flow in a positive manner.
by Tony Seruga, Yolanda Seruga and Yolanda Bishop
Secrets of Successful Traders Review
Secrets of Successful Traders Guide - Does It Tell All The Secrets?
by Jeff Fannin
Can the average person really make money in the stock market? Let me tell you, I've tried every money making scheme out there and I have tried my luck in the stock market numerous times. It's not easy and it can be very confusing. When is the right to buy and sell? What the best companies to invest in and how to pick the right companies? I've looked for these answers in many different online resources and books. Not many books will tell you the correct, straight foward way to find these answers. But after reading the Secrets of Successful Traders ebook I believe it gives beginner's the correct information to successfully invest in the stock market and not lose your whole bank account.
Learn more about it now.
I will say that when I first started reading the Secrets of Successful Traders I thought it would never get to the good stuff that I knew would make me money in the stock market. But the writer patiently told you necessary things that you need to know before investing. After certain things were clear to the reader then everything started to fall in place in the ebook and was revealed. I started to feel really good about Secrets of Successful Traders.
Secrets of Successful Traders not only tell you strategy tips about playing the stock market it will tell you other valuable information including broker's and broker firms. It does include a money back guarantee that if you don't like Secrets of Successful Traders after two months of trading then they will refund your the full purchase price and you can even keep the ebook. I really do think this is a fair price for the ebook because of all the information that it contains.
As many of you know strategy ebooks will dance around every tip or secret and never tell you throughout the whole book what the correct strategies are. But Secrets of Successful Traders tell you right from the beginning what to expect and what you need to do to be successful. I believe you can't wrong with the information that is told in this book.
I do recommend that you check out Secrets of Successful Traders because the stock market can help you turn your hard earned money into a steady stream of cash flow. If your a seasoned investor or just a beginner, this is a must read.
by Jeff Fannin
by Jeff Fannin
Can the average person really make money in the stock market? Let me tell you, I've tried every money making scheme out there and I have tried my luck in the stock market numerous times. It's not easy and it can be very confusing. When is the right to buy and sell? What the best companies to invest in and how to pick the right companies? I've looked for these answers in many different online resources and books. Not many books will tell you the correct, straight foward way to find these answers. But after reading the Secrets of Successful Traders ebook I believe it gives beginner's the correct information to successfully invest in the stock market and not lose your whole bank account.
Learn more about it now.
I will say that when I first started reading the Secrets of Successful Traders I thought it would never get to the good stuff that I knew would make me money in the stock market. But the writer patiently told you necessary things that you need to know before investing. After certain things were clear to the reader then everything started to fall in place in the ebook and was revealed. I started to feel really good about Secrets of Successful Traders.
Secrets of Successful Traders not only tell you strategy tips about playing the stock market it will tell you other valuable information including broker's and broker firms. It does include a money back guarantee that if you don't like Secrets of Successful Traders after two months of trading then they will refund your the full purchase price and you can even keep the ebook. I really do think this is a fair price for the ebook because of all the information that it contains.
As many of you know strategy ebooks will dance around every tip or secret and never tell you throughout the whole book what the correct strategies are. But Secrets of Successful Traders tell you right from the beginning what to expect and what you need to do to be successful. I believe you can't wrong with the information that is told in this book.
I do recommend that you check out Secrets of Successful Traders because the stock market can help you turn your hard earned money into a steady stream of cash flow. If your a seasoned investor or just a beginner, this is a must read.
by Jeff Fannin
Tuesday, June 12, 2007
Oil Price History, Shortened
Crude oil prices behave just like any other commodity with wide price swings of shortage and oversupply. The crude oil price cycle can extend over a long period of time depending on the non-stop change in demand for oil as well as oil supply produced by Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil supply companies. Oil price history shows that the petroleum industry especially in the United States has been heavily regulated in terms of production and price controls throughout the duration of the 20th century.
During the post World War II era, oil prices in the United States have averaged $23.57 per barrel, which is already adjusted for inflation to 2006 dollars. Without price controls, the U.S oil price would have been over $25.56. During the same post war period, the average price for domestic and adjusted world price of crude oil was $18.43 in 2006 prices. This exactly proves that only 50% of the time from 1947 to 2006 have oil prices exceeded the $18.43 per barrel mark. It was only then in March 28, 2000 when they accepted the $22-$28 price band for OPEC's supply of oil, did oil prices exceed the $23.00 per barrel in response to the ongoing conflict in the Middle East. With limited supply of crude oil, OPEC abandoned its price band and for almost 3 years, OPEC was in no position to stem a surge in oil prices which was similar to that of the late 1970's.
If we look at the statistics in a long term view, the oil price is practically much the same. Since 1869, US crude oil prices adjusted for inflation have averaged, $20.71 per barrel compared to other world prices of $21.57. Only 50% of the times were the US prices and world prices below the average oil price of $16.59 per barrel. If we would use the long term oil price history as a guide, those in the upstream segment of the crude oil industry should shape their business so that they would be able to operate with profit, below $16.59, 50% of the time.
Oil today represents 2% of global GDP, not the 8% represented in 1973. So what does oil price history teaches us? Greater oil prices give people an incentive to make more effective use of oil and for the global economy to move toward more services and information technology and off from manufacturing.
by Mayoor Patel
During the post World War II era, oil prices in the United States have averaged $23.57 per barrel, which is already adjusted for inflation to 2006 dollars. Without price controls, the U.S oil price would have been over $25.56. During the same post war period, the average price for domestic and adjusted world price of crude oil was $18.43 in 2006 prices. This exactly proves that only 50% of the time from 1947 to 2006 have oil prices exceeded the $18.43 per barrel mark. It was only then in March 28, 2000 when they accepted the $22-$28 price band for OPEC's supply of oil, did oil prices exceed the $23.00 per barrel in response to the ongoing conflict in the Middle East. With limited supply of crude oil, OPEC abandoned its price band and for almost 3 years, OPEC was in no position to stem a surge in oil prices which was similar to that of the late 1970's.
If we look at the statistics in a long term view, the oil price is practically much the same. Since 1869, US crude oil prices adjusted for inflation have averaged, $20.71 per barrel compared to other world prices of $21.57. Only 50% of the times were the US prices and world prices below the average oil price of $16.59 per barrel. If we would use the long term oil price history as a guide, those in the upstream segment of the crude oil industry should shape their business so that they would be able to operate with profit, below $16.59, 50% of the time.
Oil today represents 2% of global GDP, not the 8% represented in 1973. So what does oil price history teaches us? Greater oil prices give people an incentive to make more effective use of oil and for the global economy to move toward more services and information technology and off from manufacturing.
by Mayoor Patel
Compare Bank CD Rates across the US
When you compare CD rates, bigger doesn't always mean bigger. Some of the largest banks in the US offer fairly low CD rates. Shouldn't they be able to afford to pay the higher CD rates? Probably, but why don't they. Simply, they don't need to.
Banks are in business to make money. They want to return as large as a profit as they can to their stockholders. You may actually be better off buying their stock then putting your hard-earned savings with them. But, I digress. The CD rates for large banks such as World Savings, Bank of America, Citibank, etc. are low because they have such a large base of low interest deposits such as savings accounts and checking accounts.
Banks' profits are derived primarily from two sources. First, is fee income (checking account, ATM, call center fees, etc.). The second source is the spread they make on the difference between the savings and CD rates they pay on deposits and the rates you pay for your loans through them. This isn't a perfect example, but if the average rate they pay for their combined deposits is 3.0% and the average loan rate is 6.0%, they are making a 300 Basis Point spread. On hundreds of millions in loans, that is a lot of clams.
If you compare CD rates across the country, the best rates are around 5.40% for 1Y. If the big banks had to pay that for all of their deposits, they would only be making 60 Basis Points. They just can't survive on that kind of a rate margin (or so they tell us).
So compare the CD rates that World Savings, Bank of America, and Citibank are offering with other banks across the country. Our site makes this easy. Please visit our Compare CD Rates page.
Also, don't forget to compare credit union CD rates. They often have higher CD rates then banks. The reasons though for that will be in a forth-coming article. Please view our Certificate of Deposit rates Page.
by Chris Duncan
Banks are in business to make money. They want to return as large as a profit as they can to their stockholders. You may actually be better off buying their stock then putting your hard-earned savings with them. But, I digress. The CD rates for large banks such as World Savings, Bank of America, Citibank, etc. are low because they have such a large base of low interest deposits such as savings accounts and checking accounts.
Banks' profits are derived primarily from two sources. First, is fee income (checking account, ATM, call center fees, etc.). The second source is the spread they make on the difference between the savings and CD rates they pay on deposits and the rates you pay for your loans through them. This isn't a perfect example, but if the average rate they pay for their combined deposits is 3.0% and the average loan rate is 6.0%, they are making a 300 Basis Point spread. On hundreds of millions in loans, that is a lot of clams.
If you compare CD rates across the country, the best rates are around 5.40% for 1Y. If the big banks had to pay that for all of their deposits, they would only be making 60 Basis Points. They just can't survive on that kind of a rate margin (or so they tell us).
So compare the CD rates that World Savings, Bank of America, and Citibank are offering with other banks across the country. Our site makes this easy. Please visit our Compare CD Rates page.
Also, don't forget to compare credit union CD rates. They often have higher CD rates then banks. The reasons though for that will be in a forth-coming article. Please view our Certificate of Deposit rates Page.
by Chris Duncan
Bonds Can Be As Risky As Stocks
If you are new to investing perhaps you are not familiar with bonds. Before you get started, you need to understand some of the risks associated with bond investing. Most people assume that all interest-bearing securities are completely risk free, but this is not the case. Even if you know a lot about investing, you may not be aware of some of the risk characteristics associated with bonds.
The most important thing to take into account is the interest rate. The Federal Reserve (also known as the Fed) meets every 6-8 weeks to evaluate the health of the economy. At each meeting, the Fed renders a decision regarding interest rates.
If inflation is rising, the Fed will need to raise interest rates to tighten the money supply. If inflation is moderate or contained, the Fed will likely leave rates unchanged. However, if the economy is slowing down and there is very little inflation or maybe even deflation, then the Fed might decide to reduce interest rates to create a stimulus for economic growth.
The reason why you need to consider present and future interest rate levels is because as interest rates increase, bond prices go down, and vice versa. If you are able to hold your bond until maturity, then interest rate movements do not really matter, because you will redeem the principal upon redemption. But often, investors have to cash out their bonds well before the maturity date. If interest rates have moved up since you purchased the bond, and you sell it prior to maturity, then the bond will be worth less than your initial investment.
You should also be aware of the claim status of the bond you are buying. Claim status refers to your ability to liquidate your investment in the event the bond issuer goes bankrupt. If you are buying a government bond, such as a Treasury Bill, claim status is irrelevant, because the odds of the Federal Government going bankrupt are slim and none.
If you are buying a corporate bond, however, there is always a chance that the issuer could go out of business. In the event of liquidation, bondholders are given priority over stockholders. However, there are often different classes of bondholders. Senior note holders can often claim against certain kinds of physical collateral in the event of bankruptcy, such as equipment (computers, machines, etc.). Regular bondholders can not always claim against physically collateral, and are next in line after the senior note holders.
Next, you should always check the three main features of the bond you are buying; the coupon rate, the maturity date, and the call provisions. The coupon rate is the interest rate. Most bonds pay an interest rate semiannually or annually.
The maturity date is the date that the bond will be redeemed by the issuer; simply put, the maturity date is when the company must pay back to you the principal you loaned to them. The call provisions are the rights of the issuer to buy back your bond prior to maturity. Some bonds are non-callable, while others are callable, meaning that the company can buy your bond back before maturity, usually at a higher price than what you paid.
Finally, you should also understand that if economic conditions become more favorable after you a buy a bond, and interest rates start to go down again, the issuer will likely issue a lot more bonds to take advantage of the low interest rates, and will use the proceeds to try to buy back any callable bonds it issued previously. So, when interest rates go down, there is an increasing likelihood that your bond will be redeemed prior to maturity, if in fact the bond is callable.
You should invest in bonds. However, you should also take into account the risk factors we have covered. Your portfolio should contain a mix of corporate, federal, municipal, and even junk bonds (there is always a default risk associated with junk bonds, but they pay a huge interest rate). Talk to your broker about diversifying the kinds of bonds in your portfolio and you will reduce your overall risk and maximize your return.
by Jim Pretin
The most important thing to take into account is the interest rate. The Federal Reserve (also known as the Fed) meets every 6-8 weeks to evaluate the health of the economy. At each meeting, the Fed renders a decision regarding interest rates.
If inflation is rising, the Fed will need to raise interest rates to tighten the money supply. If inflation is moderate or contained, the Fed will likely leave rates unchanged. However, if the economy is slowing down and there is very little inflation or maybe even deflation, then the Fed might decide to reduce interest rates to create a stimulus for economic growth.
The reason why you need to consider present and future interest rate levels is because as interest rates increase, bond prices go down, and vice versa. If you are able to hold your bond until maturity, then interest rate movements do not really matter, because you will redeem the principal upon redemption. But often, investors have to cash out their bonds well before the maturity date. If interest rates have moved up since you purchased the bond, and you sell it prior to maturity, then the bond will be worth less than your initial investment.
You should also be aware of the claim status of the bond you are buying. Claim status refers to your ability to liquidate your investment in the event the bond issuer goes bankrupt. If you are buying a government bond, such as a Treasury Bill, claim status is irrelevant, because the odds of the Federal Government going bankrupt are slim and none.
If you are buying a corporate bond, however, there is always a chance that the issuer could go out of business. In the event of liquidation, bondholders are given priority over stockholders. However, there are often different classes of bondholders. Senior note holders can often claim against certain kinds of physical collateral in the event of bankruptcy, such as equipment (computers, machines, etc.). Regular bondholders can not always claim against physically collateral, and are next in line after the senior note holders.
Next, you should always check the three main features of the bond you are buying; the coupon rate, the maturity date, and the call provisions. The coupon rate is the interest rate. Most bonds pay an interest rate semiannually or annually.
The maturity date is the date that the bond will be redeemed by the issuer; simply put, the maturity date is when the company must pay back to you the principal you loaned to them. The call provisions are the rights of the issuer to buy back your bond prior to maturity. Some bonds are non-callable, while others are callable, meaning that the company can buy your bond back before maturity, usually at a higher price than what you paid.
Finally, you should also understand that if economic conditions become more favorable after you a buy a bond, and interest rates start to go down again, the issuer will likely issue a lot more bonds to take advantage of the low interest rates, and will use the proceeds to try to buy back any callable bonds it issued previously. So, when interest rates go down, there is an increasing likelihood that your bond will be redeemed prior to maturity, if in fact the bond is callable.
You should invest in bonds. However, you should also take into account the risk factors we have covered. Your portfolio should contain a mix of corporate, federal, municipal, and even junk bonds (there is always a default risk associated with junk bonds, but they pay a huge interest rate). Talk to your broker about diversifying the kinds of bonds in your portfolio and you will reduce your overall risk and maximize your return.
by Jim Pretin
Sunday, June 03, 2007
How foreign currency markets affect us all
You may not be involved in Forex trading directly, but the fact remains that you are affected by what occurs in foreign exchange trading every day. Here are some examples of how this constant flow of currency trading makes an impact on your daily life.
Perhaps the most obvious impact is that currency trading makes an impact on the price you pay for goods and services. Should you happen to live in a country where the comparative value of your currency falls in comparison to that of other countries, you could find yourself paying a higher price for items that you are used to purchasing at a relatively inexpensive rate. The reason is that the rate of exchange for imported goods would have changed and chances are the brunt of that change will be passed on to you, the consumer. These goods may include anything from petroleum products to underwear.
Another way that changes in trading currency impact you is the simple ability to obtain goods and services. A severe enough change in the rate of exchange could mean that it is no longer viable for certain types of business commerce to continue. The result will be that you may find that some items that you are used to purchasing regularly will at first become much scarcer and carry a higher price tag, but ultimately no longer be available to you at all. This will require you to change your spending habits and settle for other goods that you may consider being of lesser quality. An extreme example would be if you were no longer able to get the imported car parts you need for your vehicle and had to turn to either generic replacements or used parts.
Your investments may also be impacted as well. While the stock exchange is a totally different process from currency exchange, the fact of the matter is that they do impact one another. Adverse changes in the rate of exchange can mean your stocks may slow down their process of earning money for you, especially if the stocks happen to be investments in retail companies or any entity that relies heavily on foreign trade. Changes in your portfolio of course make a difference to your overall financial health, and may especially hurt if your stock portfolio happens to also be your form of retirement plan.
Many people do not give the trading of currency a second thought. Nevertheless, this process that is in a constant flow every day does reach out and touch the lives of each of us in some way. We may find ourselves paying higher prices for goods or services that we are used to enjoying. In some cases, we may have to substitute for a lesser product, due to lack of availability. We may see our overall financial health impacted, even to the point of wondering about our future and retirement. Keeping up with Forex trading is a good idea for all of us.
by Bill Nad
Perhaps the most obvious impact is that currency trading makes an impact on the price you pay for goods and services. Should you happen to live in a country where the comparative value of your currency falls in comparison to that of other countries, you could find yourself paying a higher price for items that you are used to purchasing at a relatively inexpensive rate. The reason is that the rate of exchange for imported goods would have changed and chances are the brunt of that change will be passed on to you, the consumer. These goods may include anything from petroleum products to underwear.
Another way that changes in trading currency impact you is the simple ability to obtain goods and services. A severe enough change in the rate of exchange could mean that it is no longer viable for certain types of business commerce to continue. The result will be that you may find that some items that you are used to purchasing regularly will at first become much scarcer and carry a higher price tag, but ultimately no longer be available to you at all. This will require you to change your spending habits and settle for other goods that you may consider being of lesser quality. An extreme example would be if you were no longer able to get the imported car parts you need for your vehicle and had to turn to either generic replacements or used parts.
Your investments may also be impacted as well. While the stock exchange is a totally different process from currency exchange, the fact of the matter is that they do impact one another. Adverse changes in the rate of exchange can mean your stocks may slow down their process of earning money for you, especially if the stocks happen to be investments in retail companies or any entity that relies heavily on foreign trade. Changes in your portfolio of course make a difference to your overall financial health, and may especially hurt if your stock portfolio happens to also be your form of retirement plan.
Many people do not give the trading of currency a second thought. Nevertheless, this process that is in a constant flow every day does reach out and touch the lives of each of us in some way. We may find ourselves paying higher prices for goods or services that we are used to enjoying. In some cases, we may have to substitute for a lesser product, due to lack of availability. We may see our overall financial health impacted, even to the point of wondering about our future and retirement. Keeping up with Forex trading is a good idea for all of us.
by Bill Nad
"The Secret" and the Science of Getting Rich
Have you heard of the DVD called "the Secret"? Well it isn't such a secret anymore. The DVD was released in March 2006 and according to Time Magazine, the DVD has sold 500,000 units within the first 6 months. Today it sells well over 5,000 copies a day! It ranked in Amazon's Top-5 sellers during Christmas week; and a tie-in hardcover book just entered the Top 10 on the New York times bestseller list.
The amazing thing about "the Secret" is that you won't find it in your local Blockbuster or Barnes and Noble, it is selling briskly through new-age bookstores, New Thought churches like Unity and AGape and the official website at www.thesecret.tv. "It's become the biggest selling item in the 30-year history of our store," says Harmony Rose Allor, a buyer at West Hollywood's popular metaphysical bookshop, The Bodhi Tree. it is "word-of-mouth" marketing at it best.
So what is the secret to "the Secret's" success? It's is a "transformational movie", where a person's view on life and the laws of life will no longer be the same after watching this movie. In a sense, it has created the same kind of effect as "the Da Vinci Code" and the 2004 hit cult movie "What the Bleep Do We Know". The movie has created such waves that it has already been featured on the Oprah Winfrey Show, Larry King Live and the Ellen DeGeneres show.
At the core of the movie is a central philosophy called "the Law of Attraction". In fact, the movie itself was inspired by this very same law when the producer read a book called "the Science of Getting Rich" by Wallace D. Wattles. This books was written in 1910!
This philosophy states that we create our reality, both good and bad! The message is delivered through 24 "teachers" which include prosperity preachers, chiropractic healers, relationship gurus, life coaches and motivational speakers -- into one clear, cohesive voice. The movie is a "must watch" for anyone interested in taking charge of their life and in creating the life of their dreams.
Following on the success of the Secret, 3 of the core teachers - namely Bob Proctor and Jack Canfield have collaborated to produce a wealth building program called "the Secret Science of Getting Rich Seminar". This program is based on the book that inspired the movie and is set to make history as the fastest selling personal development program in history.
What is the Science of Getting Rich about? Well in the words of Wallace D. Wattles, "The ownership of money and property comes as a result of doing things in a certain way. Those who do things in this certain way, whether on purpose or accidentally, get rich. Those who do not do things in this certain way, no matter how hard they work or how able they are, remain poor. It is a natural law that like causes always produce like effects. Therefore, any man or woman who learns to do things in this certain way will infallibly get rich." The Science of Getting Rich is all about teaching how to do things in this "certain" way to create wealth.
The success of this program is built on several rock solid foundations. These factors include: the phenomenal success of "the Secret", the timeless concepts from the Science of Getting Rich by Wallace D. Wattles, the credibility of successful personal improvement teachers and New Thought leaders of our time, and the Internet as the distribution medium.
Click here to learn more about the Secret of Getting Rich Seminar and it's affiliate program. http://sutech.thesgrprogram.com
by Steven Utech
The amazing thing about "the Secret" is that you won't find it in your local Blockbuster or Barnes and Noble, it is selling briskly through new-age bookstores, New Thought churches like Unity and AGape and the official website at www.thesecret.tv. "It's become the biggest selling item in the 30-year history of our store," says Harmony Rose Allor, a buyer at West Hollywood's popular metaphysical bookshop, The Bodhi Tree. it is "word-of-mouth" marketing at it best.
So what is the secret to "the Secret's" success? It's is a "transformational movie", where a person's view on life and the laws of life will no longer be the same after watching this movie. In a sense, it has created the same kind of effect as "the Da Vinci Code" and the 2004 hit cult movie "What the Bleep Do We Know". The movie has created such waves that it has already been featured on the Oprah Winfrey Show, Larry King Live and the Ellen DeGeneres show.
At the core of the movie is a central philosophy called "the Law of Attraction". In fact, the movie itself was inspired by this very same law when the producer read a book called "the Science of Getting Rich" by Wallace D. Wattles. This books was written in 1910!
This philosophy states that we create our reality, both good and bad! The message is delivered through 24 "teachers" which include prosperity preachers, chiropractic healers, relationship gurus, life coaches and motivational speakers -- into one clear, cohesive voice. The movie is a "must watch" for anyone interested in taking charge of their life and in creating the life of their dreams.
Following on the success of the Secret, 3 of the core teachers - namely Bob Proctor and Jack Canfield have collaborated to produce a wealth building program called "the Secret Science of Getting Rich Seminar". This program is based on the book that inspired the movie and is set to make history as the fastest selling personal development program in history.
What is the Science of Getting Rich about? Well in the words of Wallace D. Wattles, "The ownership of money and property comes as a result of doing things in a certain way. Those who do things in this certain way, whether on purpose or accidentally, get rich. Those who do not do things in this certain way, no matter how hard they work or how able they are, remain poor. It is a natural law that like causes always produce like effects. Therefore, any man or woman who learns to do things in this certain way will infallibly get rich." The Science of Getting Rich is all about teaching how to do things in this "certain" way to create wealth.
The success of this program is built on several rock solid foundations. These factors include: the phenomenal success of "the Secret", the timeless concepts from the Science of Getting Rich by Wallace D. Wattles, the credibility of successful personal improvement teachers and New Thought leaders of our time, and the Internet as the distribution medium.
Click here to learn more about the Secret of Getting Rich Seminar and it's affiliate program. http://sutech.thesgrprogram.com
by Steven Utech
How to Buy Tax Deeds: Start With Little Money And Make a fortune In Tax Deed Investing
Many people are under the false impression that you need to have a lot of money to invest in the amazing wealth-building vehicle of tax deeds. This is a myth that I am going to personally debunk right now so that you are no longer held back from investing in this most lucrative field.
You have the potential to be making huge sums in very little time, even if you only have a few hundred dollars to start with. There is a secret that once you know, will make you unstoppable. Want to know what it is? You're in luck, because I'm about to tell you.
Most people who invest at tax deed auctions think that the only thing worth bidding on are developed properties with houses on them. This means that the bidding will often go into the tens of thousands of dollars before the auction stops. This is not a good thing if you have little money to start with.
Many bidders take little notice of the lots with vacant land that are being auctioned off. They see little value in them. Some of these lots will sell for less than $100. Others will go for several hundred to a few thousand. This is where you can gain extreme amounts of leverage.
If you have done your research properly and won a nice lot for - let's say - $250, you are in for some serious profit. The market value of the lot you just bought may be $10,000 or $15,000. Not a bad profit, wouldn't you say?
Do you see just how fast your personal fortune could grow by investing in under appreciated vacant lots? It is truly phenomenal. You could turn one or two hundred dollars into multiple hundreds of thousands in a very short order if you follow a specific course of action.
Although tax deeds offer great investment with more safety than most investments, there are many key pieces of information you need to know to get the most out of your investing activities. If you do not take the time to learn the proper investment strategy and some of the finer points of due diligence, you will not have a good time and will most likely lose a lot of money.
Luckily, I have created an incredibly comprehensive and well written information product on the subject. It will teach you everything you need to know quickly, so that you can start accumulating your personal fortune immediately. Check out Tax Lien Riches Now.
by Andrew Kryzak
You have the potential to be making huge sums in very little time, even if you only have a few hundred dollars to start with. There is a secret that once you know, will make you unstoppable. Want to know what it is? You're in luck, because I'm about to tell you.
Most people who invest at tax deed auctions think that the only thing worth bidding on are developed properties with houses on them. This means that the bidding will often go into the tens of thousands of dollars before the auction stops. This is not a good thing if you have little money to start with.
Many bidders take little notice of the lots with vacant land that are being auctioned off. They see little value in them. Some of these lots will sell for less than $100. Others will go for several hundred to a few thousand. This is where you can gain extreme amounts of leverage.
If you have done your research properly and won a nice lot for - let's say - $250, you are in for some serious profit. The market value of the lot you just bought may be $10,000 or $15,000. Not a bad profit, wouldn't you say?
Do you see just how fast your personal fortune could grow by investing in under appreciated vacant lots? It is truly phenomenal. You could turn one or two hundred dollars into multiple hundreds of thousands in a very short order if you follow a specific course of action.
Although tax deeds offer great investment with more safety than most investments, there are many key pieces of information you need to know to get the most out of your investing activities. If you do not take the time to learn the proper investment strategy and some of the finer points of due diligence, you will not have a good time and will most likely lose a lot of money.
Luckily, I have created an incredibly comprehensive and well written information product on the subject. It will teach you everything you need to know quickly, so that you can start accumulating your personal fortune immediately. Check out Tax Lien Riches Now.
by Andrew Kryzak
Forex Trading Myths - Why Buying Low Selling High Will Lose You Money!
This may seem odd as it's an accepted wisdom, but if you try and apply it in your forex trading strategy you will lose money.
If you don't realise why this is - read on and we will explain why.
Of course, the aim of all traders is to buy in at the bottom of trends and sell out at peaks - but it's impossible to do and the way most forex traders do it means they lose.
The key to understanding why you can't do it, is to realize that you have to predict in advance where prices will go or buy into a low or sell into a high and "hope" the levels hold.
Fact is you can't predict where forex prices are likely to go and if you rely on hope then you shouldn't be trading forex.
What you have to do is not predict but get confirmation of price momentum changes, above the level of support - BEFORE executing your forex trading signals.
A simple example will show you how to do this.
Many Forex traders watch a support level such as, Fibonacci level, pivot point etc, and as prices come to perceived support; they simply buy into it just above the level.
There logic is, they are in at a low "if" the level holds - of course the important word here is "if".
Support lines, Fibonacci levels, pivot points break frequently, so if you try and buy into them just hoping they will hold you will buy the low will see you lose.
A better way to trade:
Is to use price momentum to check that support and resistance will hold - and then trade on confirmation.
Trading on confirmation gets the odds on your side trying to predict will see you lose it's as simple as that.
So how do spot changes in price momentum?
Great indicators to use are the stochastic and relative Strength Index (RSI)
You simply watch for prices to move to support and then turn up supported by RSI or stochastic.
You won't buy the bottom you will miss a good bit of the move, but by trading in this way you will get stopped out less and always trade with the odds - this means bigger forex profits longer term.
"Buy low sell high" is an accepted investment and many traders accept it at face value trade and lose.
Over 90% of forex traders lose and "buying low selling high" without confirmation will see you join them, don't fall into this trap.
by Sacha Tarkovsky
If you don't realise why this is - read on and we will explain why.
Of course, the aim of all traders is to buy in at the bottom of trends and sell out at peaks - but it's impossible to do and the way most forex traders do it means they lose.
The key to understanding why you can't do it, is to realize that you have to predict in advance where prices will go or buy into a low or sell into a high and "hope" the levels hold.
Fact is you can't predict where forex prices are likely to go and if you rely on hope then you shouldn't be trading forex.
What you have to do is not predict but get confirmation of price momentum changes, above the level of support - BEFORE executing your forex trading signals.
A simple example will show you how to do this.
Many Forex traders watch a support level such as, Fibonacci level, pivot point etc, and as prices come to perceived support; they simply buy into it just above the level.
There logic is, they are in at a low "if" the level holds - of course the important word here is "if".
Support lines, Fibonacci levels, pivot points break frequently, so if you try and buy into them just hoping they will hold you will buy the low will see you lose.
A better way to trade:
Is to use price momentum to check that support and resistance will hold - and then trade on confirmation.
Trading on confirmation gets the odds on your side trying to predict will see you lose it's as simple as that.
So how do spot changes in price momentum?
Great indicators to use are the stochastic and relative Strength Index (RSI)
You simply watch for prices to move to support and then turn up supported by RSI or stochastic.
You won't buy the bottom you will miss a good bit of the move, but by trading in this way you will get stopped out less and always trade with the odds - this means bigger forex profits longer term.
"Buy low sell high" is an accepted investment and many traders accept it at face value trade and lose.
Over 90% of forex traders lose and "buying low selling high" without confirmation will see you join them, don't fall into this trap.
by Sacha Tarkovsky
Forex Education - Understanding Standard Deviation for Bigger Profits
In forex trading the vast majority of novice forex traders don't understand the concept of standard deviation, but they should - as its essential Forex Education and will lead you to bigger profits.
You will greater insight into price movements and how to trade these currency trends for profit.
Let's look at the concept of standard deviation and how it can help you in your forex trading strategy.
Let's do the technical bit first and how to apply it, later we will look at how to apply it and it's advantages.
Defining Standard Deviation
Standard deviation is a statistical term that provides an indication of the volatility of price in any investment and that includes currencies.
Don't worry if you find the next bit confusing - it will become clearer as we get to the end of the article.
Standard deviation measures how widely values (closing prices) are dispersed from the average price. Dispersion is the difference between the actual value (closing price) and the average value (mean closing price).
The larger the difference between the closing prices and the average price, the higher the standard deviation will be and therefore the volatility of the market.
The closer the closing prices are to the average mean price, the lower the standard deviation and the volatility of the currency is.
Standard deviation is calculated by taking the square root of the variance, the average of the squared deviations from the mean.
High Standard Deviation values occur when the data item being analyzed is changing dramatically and volatility is high.
Conversely, low Standard Deviation values occur when prices are more stable and moving within tight ranges.
Major tops and bottoms always feature high volatility as investor emotions are to the fore and greed and fear drive prices.
Using standard Deviation
Most short term price spikes that move to far from the mean price are unsustainable and prices normally "blow off" at highs or lows and return to the mean average.
High standard deviation can be a great way to spot important market highs or lows.
You can then use other technical indicators to generate trading signals to enter the forex markets when the risk is lowest and the rewards are highest.
A big rise in volatility away from the mean, i.e. a spike is normally driven by human emotion and the odds of prices returning to the average are high.
It's therefore a great way to generate contrary trades.
It also great for trend followers to.
For example, if you have a market that features low volatility and you see an important price break accompanied by a spike in volatility, then chances are the trend will continue.
Again you enter the trade with the odds on your side.
Standard deviation can also be used to buy into support (the mean) and can generate profit taking signals and can also help you set stops.
If you understand volatility and standard deviation of forex prices, you will be able to trade with higher profit potential and lower risk.
Bollinger Bands
A simple way of looking and taking advantage of standard deviation when trading currencies is to use Bollinger bands.
If you incorporate them in your currency trading system you will gain an extra edge in your quest for forex profits.
Check out our article on Bollinger bands and how to use them - if you have never used them before, you will be glad you found them.
by Sacha Tarkovsky
You will greater insight into price movements and how to trade these currency trends for profit.
Let's look at the concept of standard deviation and how it can help you in your forex trading strategy.
Let's do the technical bit first and how to apply it, later we will look at how to apply it and it's advantages.
Defining Standard Deviation
Standard deviation is a statistical term that provides an indication of the volatility of price in any investment and that includes currencies.
Don't worry if you find the next bit confusing - it will become clearer as we get to the end of the article.
Standard deviation measures how widely values (closing prices) are dispersed from the average price. Dispersion is the difference between the actual value (closing price) and the average value (mean closing price).
The larger the difference between the closing prices and the average price, the higher the standard deviation will be and therefore the volatility of the market.
The closer the closing prices are to the average mean price, the lower the standard deviation and the volatility of the currency is.
Standard deviation is calculated by taking the square root of the variance, the average of the squared deviations from the mean.
High Standard Deviation values occur when the data item being analyzed is changing dramatically and volatility is high.
Conversely, low Standard Deviation values occur when prices are more stable and moving within tight ranges.
Major tops and bottoms always feature high volatility as investor emotions are to the fore and greed and fear drive prices.
Using standard Deviation
Most short term price spikes that move to far from the mean price are unsustainable and prices normally "blow off" at highs or lows and return to the mean average.
High standard deviation can be a great way to spot important market highs or lows.
You can then use other technical indicators to generate trading signals to enter the forex markets when the risk is lowest and the rewards are highest.
A big rise in volatility away from the mean, i.e. a spike is normally driven by human emotion and the odds of prices returning to the average are high.
It's therefore a great way to generate contrary trades.
It also great for trend followers to.
For example, if you have a market that features low volatility and you see an important price break accompanied by a spike in volatility, then chances are the trend will continue.
Again you enter the trade with the odds on your side.
Standard deviation can also be used to buy into support (the mean) and can generate profit taking signals and can also help you set stops.
If you understand volatility and standard deviation of forex prices, you will be able to trade with higher profit potential and lower risk.
Bollinger Bands
A simple way of looking and taking advantage of standard deviation when trading currencies is to use Bollinger bands.
If you incorporate them in your currency trading system you will gain an extra edge in your quest for forex profits.
Check out our article on Bollinger bands and how to use them - if you have never used them before, you will be glad you found them.
by Sacha Tarkovsky
Forex Education - Bollinger Bands Can Give You a Huge Trading Edge Here's why
One of the critical pieces of forex education for any Forex trader is to understand the concept of standard deviation of price and how to use volatility to their advantage.
If you understand the concept you can easily apply it with Bollinger bands which are an essential tool for all forex traders.
Let's look at why Bollinger Bands are so useful and profitable, when incorporated in your Forex Strategy.
If you don't know what standard deviation is simply check our article on the concept - right, let's take a look at Bollinger bands.
Bollinger Bands Defined
Bollinger bands are simply volatility bands drawn either side of a moving average.
You calculate Bollinger bands using the standard deviation of price over the same period as moving averages the mean price, then the volatility bands are plotted above and below the moving average.
Moving averages are used to identify the underlying trend of currencies and Bollinger bands take this one step further by:
Combining the moving average of the currency with the volatility of the individual market (or the standard deviation) - this then creates a trading envelope - with a middle mean price (moving average and 2 x bands (expanding or contracting) either side that reflect volatility or standard deviation.
As prices move away from the longer-term average, the standard deviation rises - and thus the bands will fluctuate in varying amounts, away from the average.
Why they work
In any market, the value of a currency traded tends to rise slowly over the longer term.
Prices can and do spike quickly in the short term, but will normally return to the longer term moving average - which represents fair value.
The standard deviation of the outer bands (how far they are from the mean) shows how far prices are from longer-term value.
Most price spikes are caused by trader psychology with greed and fear to the fore and this can be graphically seen with Bollinger bands.
So how should you use Bollinger bands?
There are 3 main ways to use them.
1. Spotting price spikes When the bands are a long way from the mean you can use Bollinger bands as profit taking signal on existing trades or use them to spot contrary trades.
2. Enter exisiting trends If you have a good trend in the forex markets then you can use dips to the middle band to buy at fair value.
3. Entering new trends When prices are trading in tight range and start to breakout with a change in volatility a great new trend could be emerging.
Bollinger bands can certainly give you a new dimension to your forex trading strategy and any currency trading system can benefit from the extra insight that they can give you.
A word of warning
Like all technical indicators you should not use Bollinger bands in isolation to enter trades, however combined with timing indicators such as, the stochastic or RSI, then you have a powerful combination for greater FX profits.
With regard to forex education, knowing what standard deviation is and how to apply the concept through Bollinger Bands, will give you a huge trading edge, so make sure you use them.
by Sacha Tarkovsky
If you understand the concept you can easily apply it with Bollinger bands which are an essential tool for all forex traders.
Let's look at why Bollinger Bands are so useful and profitable, when incorporated in your Forex Strategy.
If you don't know what standard deviation is simply check our article on the concept - right, let's take a look at Bollinger bands.
Bollinger Bands Defined
Bollinger bands are simply volatility bands drawn either side of a moving average.
You calculate Bollinger bands using the standard deviation of price over the same period as moving averages the mean price, then the volatility bands are plotted above and below the moving average.
Moving averages are used to identify the underlying trend of currencies and Bollinger bands take this one step further by:
Combining the moving average of the currency with the volatility of the individual market (or the standard deviation) - this then creates a trading envelope - with a middle mean price (moving average and 2 x bands (expanding or contracting) either side that reflect volatility or standard deviation.
As prices move away from the longer-term average, the standard deviation rises - and thus the bands will fluctuate in varying amounts, away from the average.
Why they work
In any market, the value of a currency traded tends to rise slowly over the longer term.
Prices can and do spike quickly in the short term, but will normally return to the longer term moving average - which represents fair value.
The standard deviation of the outer bands (how far they are from the mean) shows how far prices are from longer-term value.
Most price spikes are caused by trader psychology with greed and fear to the fore and this can be graphically seen with Bollinger bands.
So how should you use Bollinger bands?
There are 3 main ways to use them.
1. Spotting price spikes When the bands are a long way from the mean you can use Bollinger bands as profit taking signal on existing trades or use them to spot contrary trades.
2. Enter exisiting trends If you have a good trend in the forex markets then you can use dips to the middle band to buy at fair value.
3. Entering new trends When prices are trading in tight range and start to breakout with a change in volatility a great new trend could be emerging.
Bollinger bands can certainly give you a new dimension to your forex trading strategy and any currency trading system can benefit from the extra insight that they can give you.
A word of warning
Like all technical indicators you should not use Bollinger bands in isolation to enter trades, however combined with timing indicators such as, the stochastic or RSI, then you have a powerful combination for greater FX profits.
With regard to forex education, knowing what standard deviation is and how to apply the concept through Bollinger Bands, will give you a huge trading edge, so make sure you use them.
by Sacha Tarkovsky
Sunday, May 27, 2007
Investment Tips
As many investors may know, Online Investment Programs offered via the internet are mostly end up with losses or scam. Extensive due diligence in credible and worthwhile offshore investment programs is substantially needed prior to invest your monies in. It should be noted that there are major difference between real investment programs and HYIP or High Yield Investment Programs.
The main characteristics of HYIP are define as follow:
High daily rates
Compounding system is allowed
Low minimum initial deposit (principal as minimum as 1 usd)
Long holding periods of principal (usually takes 6 months or 1 year)
Referral commission is available
If you willing to play your monies with fun, HYIP can be a money game you are looking for. You should know when to get in and when to get out of the game, since HYIP adopt a ponzi/pyramid scheme which means the new comers pay the old members.
It just a matter of time when this program will collapse (short period in fact, when the number of new comers is less than or even the same as the old members). Hence the chance to get win as an old members is higher than the new comers.
But if you really are a genuine investor you should be wise enough not to have a look at that one. Here are several indications of real investment:
Reasonable monthly rate (less than 5%), more than that can be categorized as a high risk investments
No compounding
High minimum initial deposit (minimum principal is 50, 100, 1000 or sometimes 5000 usd)
Short holding periods of your principal (usually takes 1 month to 6 months)
No referral commission
Now the question is, if you successfully find an Online Investment Programs that fulfilled all criteria above, are you assured that your monies will be working for you as a clock work without any delay? I would like to point out the difference between an ordinary investor.
Here some Investment Tips I would like to share with you in order not to become an ordinary investor but a smart investor. Some good investment programs indicated by:
They give you ID of traders + fund manager, office location and respective phone number.
They give you proof of their trading.
Due Diligence by third party will be an added value.
Usually they become hot topics on many investment blogs and forums.
Few things need to be highlighted once you willing to get in or already inside the investment program in regards to rules changing (terms and conditions) of each investment.
Adding minimum deposit
Going private
Profit rate or principal withdrawal takes a longer time than it should be.
If you aware, these might be a red flag or a true sign that the investment program you are referring to is experienced problems. Get out quickly because you do not know on the next day they will gone with your monies. Several excuses will be provided by them such as:
Trading loss
Site and payment processor being hacked
fraudulently deceived by a single individual who has full control of assets
At my last Investment Tips, I would like to emphasize NEVER ever double you money in one investment program. Takes your monies once their reach 20 – 30% in profit. Put the maximum 50% in profit if you confidence enough with your investment program and move to another venture. Its better to play safe though and hope stay on the right track making money to fully possible extent.
By Yuliarko Sukardi
The main characteristics of HYIP are define as follow:
High daily rates
Compounding system is allowed
Low minimum initial deposit (principal as minimum as 1 usd)
Long holding periods of principal (usually takes 6 months or 1 year)
Referral commission is available
If you willing to play your monies with fun, HYIP can be a money game you are looking for. You should know when to get in and when to get out of the game, since HYIP adopt a ponzi/pyramid scheme which means the new comers pay the old members.
It just a matter of time when this program will collapse (short period in fact, when the number of new comers is less than or even the same as the old members). Hence the chance to get win as an old members is higher than the new comers.
But if you really are a genuine investor you should be wise enough not to have a look at that one. Here are several indications of real investment:
Reasonable monthly rate (less than 5%), more than that can be categorized as a high risk investments
No compounding
High minimum initial deposit (minimum principal is 50, 100, 1000 or sometimes 5000 usd)
Short holding periods of your principal (usually takes 1 month to 6 months)
No referral commission
Now the question is, if you successfully find an Online Investment Programs that fulfilled all criteria above, are you assured that your monies will be working for you as a clock work without any delay? I would like to point out the difference between an ordinary investor.
Here some Investment Tips I would like to share with you in order not to become an ordinary investor but a smart investor. Some good investment programs indicated by:
They give you ID of traders + fund manager, office location and respective phone number.
They give you proof of their trading.
Due Diligence by third party will be an added value.
Usually they become hot topics on many investment blogs and forums.
Few things need to be highlighted once you willing to get in or already inside the investment program in regards to rules changing (terms and conditions) of each investment.
Adding minimum deposit
Going private
Profit rate or principal withdrawal takes a longer time than it should be.
If you aware, these might be a red flag or a true sign that the investment program you are referring to is experienced problems. Get out quickly because you do not know on the next day they will gone with your monies. Several excuses will be provided by them such as:
Trading loss
Site and payment processor being hacked
fraudulently deceived by a single individual who has full control of assets
At my last Investment Tips, I would like to emphasize NEVER ever double you money in one investment program. Takes your monies once their reach 20 – 30% in profit. Put the maximum 50% in profit if you confidence enough with your investment program and move to another venture. Its better to play safe though and hope stay on the right track making money to fully possible extent.
By Yuliarko Sukardi
Tips For Investing In An Internet Savings Account
It does not take one having psychic capabilities to see that our global market is progressing towards greater technology. The ease of online banking as well as its low overhead is creating more banking institutional options online. One such option is the internet savings accounts.
Internet savings accounts, available through banking institutions like ING Direct, HSBC Bank, or GMAC Bank, offer an alternative to an instant savings account. These accounts work by linking your checking account to an internet savings account. This creates easy access from your savings account to your checking account. Deposited money can easily be transferred from checking to savings and back again either online or over the phone.
ING Direct and other online financiers can often provide a more aggressive annual percentage yield for their internet savings accounts than many brick and mortar banks due to low overhead costs. These higher interest rates are usually the biggest draw to people interested in opening an internet savings account and who want bigger gains for long term investments.
Online Bankers are now becoming more competitive and it is to a consumer’s advantage to look for perks that make banking easier. Some financial institutions even provide checks or a debit card for accountholders others provide a full-range of products and services ranging from home mortgages or home equity loans to the availability of certificates of deposits (CDs) as well as online bill paying services. Think of your business as a highly marketable commodity and invest the time necessary to ensure that you get the best rates at the best financial institution for you.
Whenever you are doing a research on one subject, try to get to the essence of what you are studying. It is true of mundane areas as well. As you search for information about savings accounts try and reach the best value, definitions and clarity. Read what we have on our site on savings accounts and if you need more material on this you can always go to the world wide web again to finish up on your studies. In this information age, there is a lot of options for increasing your knowledge base.
Check the links below for more information on Internet Savings Accounts and other related information.
For more information on Internet Savings Accounts or visit http://www.easysavingsaccounts.com/Articles/Tips_for_Investing_in_an_Internet_Savings_Account.php, a popular website that offers information on Savings Accounts. Please leave the links intact if you wish to reprint this article. Thanks
By Charley Hwang
Internet savings accounts, available through banking institutions like ING Direct, HSBC Bank, or GMAC Bank, offer an alternative to an instant savings account. These accounts work by linking your checking account to an internet savings account. This creates easy access from your savings account to your checking account. Deposited money can easily be transferred from checking to savings and back again either online or over the phone.
ING Direct and other online financiers can often provide a more aggressive annual percentage yield for their internet savings accounts than many brick and mortar banks due to low overhead costs. These higher interest rates are usually the biggest draw to people interested in opening an internet savings account and who want bigger gains for long term investments.
Online Bankers are now becoming more competitive and it is to a consumer’s advantage to look for perks that make banking easier. Some financial institutions even provide checks or a debit card for accountholders others provide a full-range of products and services ranging from home mortgages or home equity loans to the availability of certificates of deposits (CDs) as well as online bill paying services. Think of your business as a highly marketable commodity and invest the time necessary to ensure that you get the best rates at the best financial institution for you.
Whenever you are doing a research on one subject, try to get to the essence of what you are studying. It is true of mundane areas as well. As you search for information about savings accounts try and reach the best value, definitions and clarity. Read what we have on our site on savings accounts and if you need more material on this you can always go to the world wide web again to finish up on your studies. In this information age, there is a lot of options for increasing your knowledge base.
Check the links below for more information on Internet Savings Accounts and other related information.
For more information on Internet Savings Accounts or visit http://www.easysavingsaccounts.com/Articles/Tips_for_Investing_in_an_Internet_Savings_Account.php, a popular website that offers information on Savings Accounts. Please leave the links intact if you wish to reprint this article. Thanks
By Charley Hwang
How To Invest In Stocks And Get Your Money Working For YOU!
Today, more and more people are striving for financial freedom - they're tired of working FOR their money and they're ready to have their money work for THEM.
Many have heard that the stock market can be an effective way to achieve this kind of financial success, but have no idea how to invest in stocks. It's both an art and a science, that can seem to have a lot of intricacies if you're just getting started. This article will explore some of the basics of how to invest in stocks, so that you can decide where to go from here.
How To Invest In Stock:
A lot of the time when people first learn about the stock exchange, they look at it as an immediate get-rich-quick kind of thing. This also explains why most beginners LOSE money in the stock exchange.
The fact is, stocks are generally not good for the short-term because they are so unpredictable. If you want to make a good return on investment, you need to look at it as a long-term consideration.
The next part of that is, if you don't have money to pay the rent, don't even consider investing.
Really, you should only invest the with savings you've acquired after you've purchased a property. So, those are the initial considerations you should checklist before spending time learning how to invest money - your own at least.
Now if you've got those covered, I'm sure, you're wondering where to begin learning how to invest in the stock market, right?
The easiest way to start is by reading everything you can about investing in the stock market, as well as autobiographies by very successful investors like Warren Buffet.
The absolute best first investment you can make is by investing in some high quality training material.
Once you've done this preparation work, you can then progress to paper trading and taking part in simulated trades.
You can probably tell by now that there's quite a lot of work involved in learning how to invest in the stock market, but like anything else in life, if you want it, you'll do the work. The rewards of your hard work could be the type of financial freedom that most people only ever dream of.
Ed Stevens invests in the stock exchange from the comfort of his own home. If YOU want to achieve financial freedom through investing, learn how to invest in stock (including what pitfalls beginners must avoid), and find information of the highest quality, go to: How To Invest In Stocks right now (http://www.squidoo.com/how-to-invest-in-stocks/).
By Eddy Stevens
Many have heard that the stock market can be an effective way to achieve this kind of financial success, but have no idea how to invest in stocks. It's both an art and a science, that can seem to have a lot of intricacies if you're just getting started. This article will explore some of the basics of how to invest in stocks, so that you can decide where to go from here.
How To Invest In Stock:
A lot of the time when people first learn about the stock exchange, they look at it as an immediate get-rich-quick kind of thing. This also explains why most beginners LOSE money in the stock exchange.
The fact is, stocks are generally not good for the short-term because they are so unpredictable. If you want to make a good return on investment, you need to look at it as a long-term consideration.
The next part of that is, if you don't have money to pay the rent, don't even consider investing.
Really, you should only invest the with savings you've acquired after you've purchased a property. So, those are the initial considerations you should checklist before spending time learning how to invest money - your own at least.
Now if you've got those covered, I'm sure, you're wondering where to begin learning how to invest in the stock market, right?
The easiest way to start is by reading everything you can about investing in the stock market, as well as autobiographies by very successful investors like Warren Buffet.
The absolute best first investment you can make is by investing in some high quality training material.
Once you've done this preparation work, you can then progress to paper trading and taking part in simulated trades.
You can probably tell by now that there's quite a lot of work involved in learning how to invest in the stock market, but like anything else in life, if you want it, you'll do the work. The rewards of your hard work could be the type of financial freedom that most people only ever dream of.
Ed Stevens invests in the stock exchange from the comfort of his own home. If YOU want to achieve financial freedom through investing, learn how to invest in stock (including what pitfalls beginners must avoid), and find information of the highest quality, go to: How To Invest In Stocks right now (http://www.squidoo.com/how-to-invest-in-stocks/).
By Eddy Stevens
How to Minimize Risk for Higher Returns?
The best way to manage your risk is through Smart Diversification. Or what i called Intelligent Risk Taking. The way to do that is to invest your money into an international Portfolio, the trick here or the most important part is to invest in stock that are not correlated.
Wherever there is low correlation between the stocks, then there is a great chance for diversification. When u have 2 stocks are both highly correlated, then there is no reason to diversify , we just go with the stock that has the highest return. So look for stocks that have very small correlation, and in international markets, that way you hedge the currency risk and exposure, being in more than one market and one economy, and pursue higher returns because it has been historically shown that international portfolios have higher returns with lower standard deviation which means lower risk. International Portfolio also capture higher number of stocks where in domestic markets , you are only limited to a certain number.
To make it easier, use asset allocation softwares. those available software will do the allocation part for, the software will test for correlation for you between the stocks you have picked and give u the optimal percentage combination between those stocks. Google " Asset allocation programs" and you will get plenty that will help you do that task.
Remember, International Portfolio, 8 to 10 stocks, low correlation between the stocks though using an asset allocation program to determine the optimal combination between the stocks. it will only make your life easier and your investing more intelligent.
By Yazeed Almobty
Wherever there is low correlation between the stocks, then there is a great chance for diversification. When u have 2 stocks are both highly correlated, then there is no reason to diversify , we just go with the stock that has the highest return. So look for stocks that have very small correlation, and in international markets, that way you hedge the currency risk and exposure, being in more than one market and one economy, and pursue higher returns because it has been historically shown that international portfolios have higher returns with lower standard deviation which means lower risk. International Portfolio also capture higher number of stocks where in domestic markets , you are only limited to a certain number.
To make it easier, use asset allocation softwares. those available software will do the allocation part for, the software will test for correlation for you between the stocks you have picked and give u the optimal percentage combination between those stocks. Google " Asset allocation programs" and you will get plenty that will help you do that task.
Remember, International Portfolio, 8 to 10 stocks, low correlation between the stocks though using an asset allocation program to determine the optimal combination between the stocks. it will only make your life easier and your investing more intelligent.
By Yazeed Almobty
The Dark Side of Prepaid Credit Cards
Prepaid credit cards are becoming increasingly popular. The problem is that greedy financial scoundrels have noticed this popularity increase and are trying to get in on the action. If you're considering getting one or two prepaid credit cards, there are a few things you need to know.
1. They Don't Do Anything For Your Credit
Some people have made the mistake of confusing prepaid credit cards with secured credit cards and then regretting it when the damage was already done. It's important to understand that there is a huge difference between these two financial tools.
The only real similarity between secured credit cards and prepaid credit cards is that both of them require money up front and the amount you supply determines your available credit (or balance). That, however, is where the similarities end.
Unlike secured credit cards, prepaid credit cards do not offer a revolving line of credit, you do not earn interest on the money that was used to establish your initial credit line and your account activity isn't reported to the credit bureaus.
All things considered, prepaid credit cards are not a good idea if you want to re-establish your credit history or establish a revolving line of credit. However, if you want to give someone a gift or put your child's allowance on plastic, prepaid credit cards might be a solution.
2. The Good, The Bad and The Ugly
Like most financial tools, not all prepaid credit cards are equal. Some are good, some aren't so good and some are downright ridiculous.
Before purchasing prepaid credit cards, it's essential that you know the terms of the card you're buying. Believe it or not, some prepaid credit cards not only charge a monthly fee, they actually charge you money every time you use the card.
If you charge your $4 coffee house order with your prepaid credit card, you might actually be paying $5 for that cup of joe after the credit card company tacks on their $1 fee. Then, to add insult to injury, the credit card company may bill you almost $10 a month for the privilege.
Make sure you are familiar with ALL of the fees (including monthly fees, transaction fees, deposit fees, etc.) before committing to any prepaid credit cards.
3. Where'd It All Go?
So you get a prepaid credit card for $50 and you have it in your wallet for a four or five months. Then one day you go to use it on a $30 purchase but the card isn't working. You call to find out your balance and you realize it's less than $20. How did it happen?
Well, if you're not careful, those monthly fees can quickly add up. If you buy a prepaid credit card with a monthly fee of $6.95, after five months that card is going to have incurred charges of $34.75. That means your $50 card now only has an available balance of $15.25 and you haven't even used it yet!
Remember, when dealing with prepaid credit cards, what seems like a nominal fee can really add up over the months and you need to be careful. Not all prepaid credit cards are bad, but if you aren't careful and you don't look at the small print, you may end up with one of the ugly ones.
By Max Anderson
1. They Don't Do Anything For Your Credit
Some people have made the mistake of confusing prepaid credit cards with secured credit cards and then regretting it when the damage was already done. It's important to understand that there is a huge difference between these two financial tools.
The only real similarity between secured credit cards and prepaid credit cards is that both of them require money up front and the amount you supply determines your available credit (or balance). That, however, is where the similarities end.
Unlike secured credit cards, prepaid credit cards do not offer a revolving line of credit, you do not earn interest on the money that was used to establish your initial credit line and your account activity isn't reported to the credit bureaus.
All things considered, prepaid credit cards are not a good idea if you want to re-establish your credit history or establish a revolving line of credit. However, if you want to give someone a gift or put your child's allowance on plastic, prepaid credit cards might be a solution.
2. The Good, The Bad and The Ugly
Like most financial tools, not all prepaid credit cards are equal. Some are good, some aren't so good and some are downright ridiculous.
Before purchasing prepaid credit cards, it's essential that you know the terms of the card you're buying. Believe it or not, some prepaid credit cards not only charge a monthly fee, they actually charge you money every time you use the card.
If you charge your $4 coffee house order with your prepaid credit card, you might actually be paying $5 for that cup of joe after the credit card company tacks on their $1 fee. Then, to add insult to injury, the credit card company may bill you almost $10 a month for the privilege.
Make sure you are familiar with ALL of the fees (including monthly fees, transaction fees, deposit fees, etc.) before committing to any prepaid credit cards.
3. Where'd It All Go?
So you get a prepaid credit card for $50 and you have it in your wallet for a four or five months. Then one day you go to use it on a $30 purchase but the card isn't working. You call to find out your balance and you realize it's less than $20. How did it happen?
Well, if you're not careful, those monthly fees can quickly add up. If you buy a prepaid credit card with a monthly fee of $6.95, after five months that card is going to have incurred charges of $34.75. That means your $50 card now only has an available balance of $15.25 and you haven't even used it yet!
Remember, when dealing with prepaid credit cards, what seems like a nominal fee can really add up over the months and you need to be careful. Not all prepaid credit cards are bad, but if you aren't careful and you don't look at the small print, you may end up with one of the ugly ones.
By Max Anderson
Types and Characteristics of Trading Gaps
Gaps are a common occurance in the markets. Everyday there is always at least one stock that has gapped up or down when the market opens. Why? As long there is some event happening somewhere between the market close of the previous day to the opening of today, there will be gaps. Even if the markets eventually move little by little toward the inevitable 24-hour format, there will always be gaps. After all, somewhere around the world, there is some event happening during the weekends as well. Plus, there is always an excited group of investors who making a big deal out of something or even for no reason unknown to the rest of us. So, gaps are a fact of life and there is no avoiding it. The best thing is to take it in stride and learn how to profit from it.
There are three different types of gaps: Breakaway, Runaway and Exhaustion gaps. Each of these gaps appear at a different cycles of the markets.
Breakaway gaps occur when a stock has been in a consolidation stage; instead of a normal market-session move, it breaks out with an opening gap. Normally, these gap in the same direction before to the consolidation stage. There is one caveat: when the breakout happens, it can be in either direction. This gap is trickier than the others because the intent of direction is unclear.
In the chart example above, the market was going through a correction. When it finally finished consolidating (a symmetrical triangle pattern), it broke out with a gap to the upside to end the correction period.
As for Runaway gaps appear when the stock has been trending for some time. Instead of a normal move up during market hours, they open with a gap in continuation of the dominant trend. It shows there is more interest in the stock, possibly by some positive news to further boost the investors' eagerness to own it. Runaway gaps are also called Measuring gaps because they are often used as a centering point of measurement from the beginning of the trend to the gap, then from the other side of the gap to measure the next likely level where it would reach.
The chart below shows the prevailing trend, moving steadily upward. Along comes the opening gap, pushing in the same direction higher, not even a moment's pause or pullback until much later in the trend.
Below is the example of how a Runaway gap is also used as a Measuring tool. When the gap has been identified, the measurement is taken from the beginning of the trend (61.98) up to the bottom of the gap (87.08). From that distance, it is used to measure how far the prices will likely to continue. So the measured target starts at the upper part of the gap (102.64) to the expected level above it. In this example, the target was 130.27. This is a very powerful and easy-to-apply concept which can be used to find profitable trades.
The last type of gaps is the Exhaustion gaps. These occur when the market has been trending for a long period of time, normally after a bull market or bear market that as been lasting for a few years. When it appears, there is a period of slowing of the trend slowing, or period of consolidation. They usually appear near tops or consolidation areas after strong trends. Many times, the Exhaustion and Breakaway gaps are mistaken for one another. Depending on the location and whether or not it was an up gap or a down gap. The Exhaustion gap is an up gap appearing in the market tops, and a down gap in market bottoms. As for the Breakaway gaps, they are up gaps in market bottoms (and from consolidations) and down gaps on market tops (and from consolidations).
Below is example of each to better identify the difference. The market has been forming what look like a top, with the symmetrical triangle consolidation. Triangles are usually trend continuation patterns, but as the chart shows, the gap was break away from the pattern to the downside. This is a breakaway gap. After that gap, YHOO attempted to push prices up again with an up gap. The prices gapped up to a new high, then turned around immediately the same day. Then the next following days, the prices filled the gap, confirming that the previous gap and the direction of the market (now downtrend) are real. The Exhaustion gap was at last identified as such when considering the surrounding price action. The action created an island reversal.
The example below is the exhaustion gap (down) at market bottom. The market has been trending down with determination. Finally, a blow-off came with a big gap down, but there were no more selling. The next few days show the market stabilizing, even some buying. Finally, more buying pushed the market higher, ending the market bottom.
Knowing where the gap is located in the chart can quickly help identify what type of gap it is. These gaps give clues to the strength or weakness of the stock since they are usually turning points in the market direction. Paying extra attention to them can provide unique opportunities to trade with the right trend (or reversals) and profit from them. The next article will discuss the tactics in entering and exiting in trading these gaps.
By Larry Swing
There are three different types of gaps: Breakaway, Runaway and Exhaustion gaps. Each of these gaps appear at a different cycles of the markets.
Breakaway gaps occur when a stock has been in a consolidation stage; instead of a normal market-session move, it breaks out with an opening gap. Normally, these gap in the same direction before to the consolidation stage. There is one caveat: when the breakout happens, it can be in either direction. This gap is trickier than the others because the intent of direction is unclear.
In the chart example above, the market was going through a correction. When it finally finished consolidating (a symmetrical triangle pattern), it broke out with a gap to the upside to end the correction period.
As for Runaway gaps appear when the stock has been trending for some time. Instead of a normal move up during market hours, they open with a gap in continuation of the dominant trend. It shows there is more interest in the stock, possibly by some positive news to further boost the investors' eagerness to own it. Runaway gaps are also called Measuring gaps because they are often used as a centering point of measurement from the beginning of the trend to the gap, then from the other side of the gap to measure the next likely level where it would reach.
The chart below shows the prevailing trend, moving steadily upward. Along comes the opening gap, pushing in the same direction higher, not even a moment's pause or pullback until much later in the trend.
Below is the example of how a Runaway gap is also used as a Measuring tool. When the gap has been identified, the measurement is taken from the beginning of the trend (61.98) up to the bottom of the gap (87.08). From that distance, it is used to measure how far the prices will likely to continue. So the measured target starts at the upper part of the gap (102.64) to the expected level above it. In this example, the target was 130.27. This is a very powerful and easy-to-apply concept which can be used to find profitable trades.
The last type of gaps is the Exhaustion gaps. These occur when the market has been trending for a long period of time, normally after a bull market or bear market that as been lasting for a few years. When it appears, there is a period of slowing of the trend slowing, or period of consolidation. They usually appear near tops or consolidation areas after strong trends. Many times, the Exhaustion and Breakaway gaps are mistaken for one another. Depending on the location and whether or not it was an up gap or a down gap. The Exhaustion gap is an up gap appearing in the market tops, and a down gap in market bottoms. As for the Breakaway gaps, they are up gaps in market bottoms (and from consolidations) and down gaps on market tops (and from consolidations).
Below is example of each to better identify the difference. The market has been forming what look like a top, with the symmetrical triangle consolidation. Triangles are usually trend continuation patterns, but as the chart shows, the gap was break away from the pattern to the downside. This is a breakaway gap. After that gap, YHOO attempted to push prices up again with an up gap. The prices gapped up to a new high, then turned around immediately the same day. Then the next following days, the prices filled the gap, confirming that the previous gap and the direction of the market (now downtrend) are real. The Exhaustion gap was at last identified as such when considering the surrounding price action. The action created an island reversal.
The example below is the exhaustion gap (down) at market bottom. The market has been trending down with determination. Finally, a blow-off came with a big gap down, but there were no more selling. The next few days show the market stabilizing, even some buying. Finally, more buying pushed the market higher, ending the market bottom.
Knowing where the gap is located in the chart can quickly help identify what type of gap it is. These gaps give clues to the strength or weakness of the stock since they are usually turning points in the market direction. Paying extra attention to them can provide unique opportunities to trade with the right trend (or reversals) and profit from them. The next article will discuss the tactics in entering and exiting in trading these gaps.
By Larry Swing
Futures Contracts - Profitable Investment Alternatives?
With the growing popularity of futures trading, more and more people are jumping into this interesting form of investing. People quickly find out that futures contracts are vastly different than agreements to purchase common stocks; with futures contracts, you are not actually buying a particular commodity, you are obtaining the right to purchase the underlying asset during a particular time period.
Pork Bellies?
Another difference between investing in the stock market and investing in futures contracts is the asset itself. Of course stocks are the assets involved in the stock market, while the commodity assets in futures contracts include:
• Currencies – The currency market is one of the best known commodities, trading the likes of the British pound and the American dollar.
• Interest Rate Futures – T-Bonds represent long-term interest rates and Eurodollars are for short-term interest rates.
• Energy Futures – Natural gas, heating oil and crude oil futures are the most widely known in this sector.
• Food Sector – Coffee, orange juice and sugar are well known commodities in this sector.
• Metals – Gold, silver and copper are traditionally strong commodities.
• Agricultural – Wheat, coffee, cotton, soybeans, pork bellies and corn futures are among those that are best known.
With so many futures contracts available, it can be difficult to decide which commodities interest you, especially if you are new to commodities trading. Sometimes it can be helpful when you start trading to begin with more popular commodities.
Below are five of the most popularly traded futures contracts:
1. S&P 500 E-mini – This is extremely popular for those investing in the futures markets. The E-mini can be traded electronically 24 hours a day, five days a week. In addition, the E-mini has most of the same advantages of the regular S&P 500 commodity but the cost of investment is much less.
2. E-mini NASDAQ 100 – The E-mini NASDAQ 100 follows the movement of the NASDAQ 100. Like the S&P 500 E-mini, this futures contract can be electronically traded and the contract and the amount of margin you have to set aside to trade the contract are smaller than a standard contract. Since most individuals don't have large enough accounts to trade regular contracts for the NASDAQ 100, the E-mini works out great.
3. Light Sweet Crude Oil – Probably the most famous commodity traded is oil futures. When you see the price of oil discussed on the evening news or in an investment newsletter, this is exactly what they are discussing.
4. Gold – If oil isn’t the most famous futures contract, then gold surely is. A gold contract tracks the price variations of one ounce of gold. Gold became an important part of the US economy when the United States went to the Gold Standard in the 1970’s. Since then, the price of gold changes dramatically, almost always in the opposite direction of the US dollar. Gold investments are frequently used as hedge funds because of the relationship with the US dollar.
5. E-mini Euro FX - The E-mini Euro FX contract tracks the movement of the exchange rate between the U.S. dollar and the Euro. The "E-mini" means that the contract and the amount of margin you have to set aside to trade these futures contracts are smaller than regular contracts. Most individuals don't have large enough accounts to trade a regular contract for the Euro, so E-minis are excellent investment strategies.
Conclusion
Futures contracts provide interesting and potentially profitable investment alternatives to many investors. Understanding the investment basics of futures contracts and commodities such as these will help you to be a more successful trader when it comes to futures contracts.
By Stephen Bigalow
Pork Bellies?
Another difference between investing in the stock market and investing in futures contracts is the asset itself. Of course stocks are the assets involved in the stock market, while the commodity assets in futures contracts include:
• Currencies – The currency market is one of the best known commodities, trading the likes of the British pound and the American dollar.
• Interest Rate Futures – T-Bonds represent long-term interest rates and Eurodollars are for short-term interest rates.
• Energy Futures – Natural gas, heating oil and crude oil futures are the most widely known in this sector.
• Food Sector – Coffee, orange juice and sugar are well known commodities in this sector.
• Metals – Gold, silver and copper are traditionally strong commodities.
• Agricultural – Wheat, coffee, cotton, soybeans, pork bellies and corn futures are among those that are best known.
With so many futures contracts available, it can be difficult to decide which commodities interest you, especially if you are new to commodities trading. Sometimes it can be helpful when you start trading to begin with more popular commodities.
Below are five of the most popularly traded futures contracts:
1. S&P 500 E-mini – This is extremely popular for those investing in the futures markets. The E-mini can be traded electronically 24 hours a day, five days a week. In addition, the E-mini has most of the same advantages of the regular S&P 500 commodity but the cost of investment is much less.
2. E-mini NASDAQ 100 – The E-mini NASDAQ 100 follows the movement of the NASDAQ 100. Like the S&P 500 E-mini, this futures contract can be electronically traded and the contract and the amount of margin you have to set aside to trade the contract are smaller than a standard contract. Since most individuals don't have large enough accounts to trade regular contracts for the NASDAQ 100, the E-mini works out great.
3. Light Sweet Crude Oil – Probably the most famous commodity traded is oil futures. When you see the price of oil discussed on the evening news or in an investment newsletter, this is exactly what they are discussing.
4. Gold – If oil isn’t the most famous futures contract, then gold surely is. A gold contract tracks the price variations of one ounce of gold. Gold became an important part of the US economy when the United States went to the Gold Standard in the 1970’s. Since then, the price of gold changes dramatically, almost always in the opposite direction of the US dollar. Gold investments are frequently used as hedge funds because of the relationship with the US dollar.
5. E-mini Euro FX - The E-mini Euro FX contract tracks the movement of the exchange rate between the U.S. dollar and the Euro. The "E-mini" means that the contract and the amount of margin you have to set aside to trade these futures contracts are smaller than regular contracts. Most individuals don't have large enough accounts to trade a regular contract for the Euro, so E-minis are excellent investment strategies.
Conclusion
Futures contracts provide interesting and potentially profitable investment alternatives to many investors. Understanding the investment basics of futures contracts and commodities such as these will help you to be a more successful trader when it comes to futures contracts.
By Stephen Bigalow
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