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
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