Investment in Gold bullion coins
Investment in Gold bullion coins and silver Coins are far better investment option than Stocks
Silver bars have emerged as popular silver investments because they are uniform in size, making them easy to handle and convenient to store. Additionally, silver bars are compact, which enables investors to secure a great deal of wealth in relative small storage areas. Silver bars with recognized hallmarks are readily accepted for resale, making them easy to convert to cash.
Palladium bullion bar and coin investors have few palladium investment choices today. When palladium spiked to $1100 in late 2000, most palladium investors sold their bullion coins and bars into that rise and exited the market. During the ensuing years, the demand for small palladium coins and bars was so small that most mints quit producing palladium bullion coins
and private refineries ceased making palladium bullion bars.
Because it was industrial buying that send palladium soaring-and not palladium investors-nearly all palladium bars and coins sold in 2000 ended up being melted. Now, though, palladium bullion bars and coins are being produced to meet renewed palladium investment demand.
Popular forms of palladium for investment are 1-oz Credit Suisse and 1-oz PAMP bullion bars, both of which are refined in Europe. In late 2005, the
Royal Canadian Mint began striking 1-oz Palladium Maple Leaf coins, which could prove to be investor favorites for palladium investments. Although Credit Suisse and PAMP are respected names in precious metals refining, many investors prefer coins produced by government mints.
Platinum bullion and coin investors do not have a large selection of platinum coins from which to choose. Yet, the platinum bullion coins available come from the most prestigious mints in the world. Platinum Eagles are produced by the U.S. Mint, Platinum Maple Leafs by Canada's Royal Canadian Mint, and Platinum Koalas by Australia's Perth Mint. American Eagle Gold coins are a Good collectables and are considered a good investment option. Another Kind of famous gold coin is the American Buffalo Gold Coins. It is always advisable to buy Gold coins when the gold prices are reduced. Do not get attracted and buy Gold coins when prices are at soaring. It may prove to be a bad investment if the prices fall back.
Investment in Gold bullion coins and silver Coins are far better investment option than Stocks . Silver bars have emerged as popular silver investments because they are uniform in size, making them easy to handle and convenient to store.
Author Bio - Inventory of Coins and Bullions Include many types of Bullion Coins like American Gold Eagles, Gold Bullion Coins and bars. In the future, coins and Bullions will expand by including jewelry and gift items.
Article Source: http://www.eArticlesOnline.com
Investing in Stocks or Managed Futures – A Wise Decision?
By: WilliamKing
The most tested wealth creation tool is investing in stocks. Once you have made up your mind to create wealth over a long-term, it is advisable that you detect the areas in your budget where you tend to overspend. Adopt the corrective measures and utilize the money saved from such correction in investments.
Invest in the stock market
For those who are interested in investing, acquiring knowledge about the financial world and its fundamentals, this investment is a must. Keeping a constant watch on the financial market and its daily events gives investors an idea about what investment tools are available in the market currently.
The investors must find out what kind of investments fit their long-term goals and accordingly invest in them. The mantra for success in the stock market is making the right choice and sticking to it for a long time.
Stick to small stocks initially
For many investors, investing in the stock market seems to be very exciting. It is however advisable that they do not get carried away by the excitement and stick to only small investments in the beginning. In this way you will get an idea of the crests and troughs of the stock market without placing yourself at a great risk.
For the beginners it could be a good idea to start investing in the stocks whose prices have constantly increased over a period of time. In case you plan to sell high, it is important that you know what your tolerance level is, in case the stock does not perform as per your expectations.
Understand the market
You must do adequate research before you begin investing in stocks. You must understand the market operation and particularly how the stocks’ (in which you plan to invest) past performance has been. Such research could take some time but is very important and determines your success in the market.
There is professional help available in the market to guide the investors towards wise investment strategies. You can seek help from reputed brokers or brokerage houses to help you select the appropriate investment option, especially if you are just beginning. After you have been in the field for quite sometime, you can choose to make decisions on your own and can afford to buy and sell stocks without any professional help.
Invest in managed futures
Managed futures are investment options and are similar to mutual funds. Managed futures, are however, positioned in government securities and are managed through future contracts or various options on future contracts.
Those who invested in managed futures just few years back have made double the money they originally invested. Analysts are generally very optimistic on the future of managed futures.
Managed futures come across as an attractive investment option because of their potential of reducing portfolio risk. Market studies indicate that when asset classes are combined with alternative investment options like managed futures, risk significantly reduces. This is because such a combination diversifies the portfolio through negative correlation between various asset groups.
The first step towards wealth creation is imbibing the understanding that wealth creation is not a magical phenomenon. You need to develop correct strategies to become wealthy. It is a long-term phenomenon and one needs to set goals and stick to them to achieve success.
William King is the director of Australian Wholesalers & Wholesale Australia, Wholesale Dropshippers & Dropshipping Directory , Dubai Property & UAE Property & Real Estate Portal and Pakistan Property & Pakistan Real Estate Portal . He has 18 years of experience in the marketing and trading industries and has been helping retailers and startups with their product sourcing, promotion, marketing and supply chain requirements.
Article Source: http://www.eArticlesOnline.com
Tips for choosing a go zone investment property
By: Clint Jhonson
Every real estate investor should be aware that the advantages of investing in go zone investment property are likely to be quite substantial; in order for one to take advantage of these go zone investment property opportunities, they should focus their mind on established real estate investment characteristics.
Investors today are concerned with minimizing the disadvantages linked to owning real estate investments. The pitfalls are never completely eliminated but the rewards for a savvy real estate investment such as go zone investment real estate these days can significantly outweigh the risks involved. Investors that do decide to move forward with a go zone real estate investment, will need to be well versed in the various tax implications of purchasing go zone investment property. A competent real estate investment professional can provide tons of support in this regard, by putting together a team of property management, financing, tax accounting and investment resales.
Any investor must keep their expectations quite reasonable. One that decides to invest in go zone investment real estate should focus on maximizing upfront cash incentives while creating a long term positive cash flow scenario. Fortunately, such deals are available today in go zone investment property areas, particularly in the Biloxi and Gulfport near the casinos, where job growth is robust, tourism is growing, the casinos are booming and the economy is on a vibrant road to recovery, while prices do not reflect future economic fundamentals, creating a window of investment opportunity.
An investor must keep a watchful eye on what markets hold the best future growth potential. Currently, the greatest momentum appears to be again in the Biloxi & Gulfport area as the local government has done a masterful job of creating an attractive investment opportunity for investors by offering up front go zone investment property cash incentives up to $40,000.
Working with a property management firm should also be taken into account in case that you are not “hands on”. If you decide to invest in go zone investment property, you should also know state and federal rules and regulations or work with an investment brokerage that can advise you in such matters, in addition to providing access to tax attorneys familiar with go zone investment property tax law. We also advise that investors must always remember the wise recommendation of caveat emptor, buyer beward, as one cannot claim ignorance in case that something wrong happens.
While every investment entails a certain amount of risk, in all decisions to invest, the investor must weigh the pros of potential future rewards versus the risk. Current investment opportunities are affording investors up to $40,000 in upfront cash incentives from the local rental authority, low to no money down financing scenarios, upto 15% in equity versus appraisal and the expectation that these areas could appreciate upwards of 50% over the next five years. To top it all off, the price points for such go zone investment property starts in the $122,500 range and generates positive monthly cash flow.
Every real estate investor should be aware that the advantages of investing in go zone investment property are likely to be quite substantial; in order for one to take advantage of these go zone investment property opportunities, they should focus their mind on established real estate investment characteristics.
If you decide to pursue the go zone investment real estate opportunity further, your next step is learn and educate yourself futher about go zone investment property purchases.
Article Source: http://www.eArticlesOnline.com
Investors Taking Somber View of Sellside Season?
We observed that lower program trading volume and increased short-term volatility might be products of fear that could leave as the “A” team rode back onto Wall Street. Or not.
September order flow resulted in no easing of tension. We observed lower Wholesale order flow (suggesting that buysiders continue to shrink their brokerage relationships and adopt direct-access models), higher Speculative trading (statistical arbitrage and other largely market-neutral trading), and a dearth at boutiques known for tying trading to research.
We don’t know if the low volume at research and trading shops means these firms are on the brink of disappearance – and by no means are we suggesting that – or simply that they’re farming out desks to trading specialists. We’ve heard that more firms are now trying to unbundle research from trading -- but a full step beyond Fidelity's push two years go, jettisoning trading rather than simply separating costs. It's a competitive business, complicated and regulated and ever more the domain of structured products, prime brokers and pure traders.
With the sellside conference season underway on Wall Street, Executives and Investor Relations Officers have been packing bags, staying in hotels and generally consuming the IR budget on gigs hosted by Bear Stearns, Citigroup, Bank of America and other sellside titans. It may be that these features of conventional IR have mostly gone the way of the NYSE specialist in significance, if not practice. To be blunt, we don’t see much trading correlation.
Consider this: If the buyside controlling the bulk of liquidity “invests” across the balance sheet with quantitatively driven black boxes, maybe it's better off to adopt some different strategies and tactics too, just like the buyside and sellside have. Consider narrowing and specifically measuring your sellside relationships against trading activity, focusing on different kinds of investors (different investment theses) on one side or the other of options expirations and FOMC meetings, and shaking up the timing of your investor-targeting activities for better measurement of results.
There are some things we do simply for relationships. But you may want to consider weighing this season what impact all that conventional time and effort had on your IR program.
About Author
Tim Quast is a fifteen-year Investor Relations veteran and founder and managing director of ModernIR.com, which parses and categorizes over a half-billion shares per week with its trading intelligence system, Equity Analysis. For more information please visit: modernir.com.
source:searchwarp.com
Small-Cap Research, ECOtality, Inc. (OTCBB: ETLY), Featured in an Audio Interview at SmallCapVoice
ECOtality, Inc. is a technology innovator that leverages global R&D resources to develop and commercialize renewable energy technologies, specifically aimed at addressing today's global energy challenges. Through strategic partnerships, ECOtality applies scientific knowledge and creates proprietary green energy technologies.
ECOtality is focused on bringing innovative eco-friendly concepts to practical commercialization through the acquisition, partnership and development of early stage renewable energy technologies. With strategic partnerships and an aggressive developmental model, the company strives to accelerate the market applicability of clean technologies to become accepted alternatives to carbon-based fuel technologies.
Their main products include:
Hydratus(tm) is a portable apparatus which produces hydrogen on-demand in an environmentally friendly and recyclable system using magnesium and water as the main fuels. ECOtality is currently working with the National Aeronautics and Space Administration's (NASA) Jet Propulsion Labs (JPL), California Institute of Technology (Caltech), GreenMountain Engineering, and Airboss Aerospace to develop this innovative technology.
Fuel Cell Store, which is based in Boulder, Colorado, has active international operations in Japan, Russia, Italy, and Portugal and provides a wide array of fuel cell products from around the globe. Fuel Cell Store develops, manufacturers, and sells a very diverse and comprehensive range of fuel cell products including fuel cell stacks, systems, component parts and education materials.
Fuel Cell Store was recently awarded a U.S. Department of Energy contract, they will be the sole provider of hydrogen fuel cell kits for the 2007 U.S. Department of Energy National Science Bowl(r).
The founder of Fuel Cell Store and Director of the International Youth Fuel Cell Competition, Kathleen Quinn Larson, went on to say, "We are very proud to be the official supplier of hydrogen fuel cell kits for the U.S. Department of Energy National Science Bowl for the fourth year in a row,"
ECOtality, Inc. was labeled a "Speculative Buy" buy by Wasserman Morris & Co.
ETLY's management team is lead by Jonathan R. Read, a well known entrepreneur, experienced brand manager, international developer and licensor with a passion for the discovery and realization of clean technology solutions.
At ECOtality, he brings his executive management experience to the team. He has been instrumental in shaping the direction of the company with a vision to transform nascent clean technologies for global commercial adoption through commercialization and licensing agreements.
About Small Cap Voice
SmallCapVoice is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its client's financial news releases. SmallCapVoice also offers individual investors with all the tools they need to make informed decisions about the stocks they are interested in. Tools like our stock charts, stock alerts, and our investor fact sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets.
Article Source: http://www.articlesnatch.com
About the Author:
Contact:
Stuart T. Smith
CEO of SmallCapVoice
Small Cap Stocks
or
Small Cap Investor Relations
Article written by Stuart T. Smith
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Stock Patterns Explained.
Paul Hegarty
When looking at stock charts what you see may not mean much to you. On these charts there are patterns. These patterns mean a lot to the investors that analyze such data to make their trades. There are many different indicators and no one indicator out weighs the other. However when taken into consideration relative to one another it begins to make sense. Recognizing these patters helps investors make successful predictions on future investments.
These patterns have names which helps identify their movement. There is a pattern called cup and handle. This particular pattern identifies a stock that starts high and then dips and comes back up again.
Another pattern is called head and shoulders. This identifies a stock that peaks then dips then peaks again higher than the previous peek. Then drops and finally peaks again. This is a pattern liked by bears.
One of the most popular patters is called the moving average. The moving average is a very strong indicator. Basically what it does is identify a stocks movement over a given period of time.
Another pattern is called the Relative Strength Index. This identifies a stock as follows. It compares the number of days a stock finishes up compared how many times it finishes down.
Another pattern is called the Money Flow Index. The money flow index goes beyond the relative strength index in that it takes into account the number of shares traded as well as the price.
Then there is the Bollinger Bands. This is a chart with a grouping of three lines. The middle line is the moving average. The other two lines which are the upper and lower lines are indicating market volatility. The more volatile the market the further apart these lines go. When there is little volatility they come close together.
The Stock Market If you want to discover your pot of gold in the stock market, then you have to know it inside out. And for all the inside-out information on the stock market explained in simple, concise, layman terms, all you need to do is click on this link: Stock Patterns.
Source: http://www.articlealley.com/article_220137_19.html
Time Decay
Time decay, also known as theta, is defined as the rate by which an option's value erodes into expiration. The value of the option over parity to the stock is called extrinsic value.
Since an option is a depreciating asset, meaning it has a limited life, the extrinsic value in the option will wither away daily until expiration. This "decay" is not a linear function meaning it is not equally distributed between all of the days to expiration.
As the option gets closer to expiration, the daily rate of decay increases and continues to increase daily until expiration of the option. At expiration, all options in the expiration month, calls and puts, in-the-money and out-of-the-money must be completely devoid of extrinsic value as noted in the time value decay charts below.
As more time goes by, the options extrinsic value decreases. Again, it is important to note that the rate of this decrease is not linear, meaning not smooth and even throughout the life of the option contract. An option contract starts feeling the decay curve increasing when the option has about 45 days to expiration. It increases rapidly again at about 30 days out and really starts losing its value in the last two weeks before expiration.
This is like a boulder rolling down a hill. The further it goes down the hill, the more steam it picks up until the hill ends.
By selling the option and owning the stock, the covered call seller captures the extrinsic value in the option by holding the short call until expiration.
As mentioned earlier, an option's loss of extrinsic value over its life is called time decay. In the covered call strategy the option's time decay works to the seller's advantage in that the more that time goes by, the more the extrinsic value decreases.
Key Point – The covered call strategy provides the investor with another opportunity to gain income from a long stock position. The strategy not only produces gains when the stock trades up, but also provides above average gains in a stagnant period, while offsetting losses when the stock declines in price.
We have now seen how a covered call strategy is constructed and how it is supposed to work. Keep in mind that the trade can be entered into in two ways. You can either sell calls against stock you already own (Covered Call) or you can buy stock and sell calls against them at the same time (Buy Write).
Example 1
You own 1000 shares of Oracle at $9.50.
The stock has been stuck around this level for a long time now and you have grown impatient. You finally give in and sell the front month (November for example) at-the-money calls. The at-the-money calls would have a strike price of $10 if the stock was trading at $9.50.
You sell the calls at a $.50 premium per contract which creates a $10.50 breakeven point. Remember, in a buy-write, the breakeven point is the strike price plus the option premium.
Let's look at what our returns will be in each of the three scenarios.
About author:
Ron Ianieri is a professional options trader, former floor trader, and market maker on the PHLx options exchange. As co-founder of the Options University, Ron teaches hundreds of aspiring options traders from all over the world how to trade options 'the right way'. Click here to learn more: optionsuniversity.com
Article Source: http://www.Free-Articles-Zone.com
Invest In Spanish Property and Get Big Return
Being in Spain means that you have access to unlimited enjoyment and tranquillity. From flamenco dance to bull fights, basking in beaches to paying golf in designer golf courses – everything is there within your reach, no matter what part of the country you live in. But the attractions that make the country ideal for as brief sojourn and permanent living has well put the commercial prospect of the place to the back seat.
The fact that Spanish property can be the right choice for making profitable investment is generally forgotten. With lots of resorts, developments, residential areas, some already in existence and some under construction, travellers and dwellers find no dearth of accommodation in Spain. Still, every new development in Spain receives a warm welcome. Flats, apartments, homes and every type of accommodations are bought or rented just like hot cakes.
Property market in Spain is never idle. There is a constant demand for property, both to buy and to sell. Hence, investment in Spanish properties opens a gateway to make huge money in a short period of time. Just buy a property in a place that has the potential to offer an ideal living condition, wait for a couple of years and you will be astonished to see the profit it comes with. Then you may realize why it is said that investing in Spanish property is the easiest way of doubling your money within no time.
You may be confused as to how to choose the right Spanish property that will give you a scope of making huge profit. Well, to help you out, there are agents who bridge the gap between property owners and buyers. So, no need to worry as to how to buy the best property and how to sell it at the best price. The agents have tie-ups with lots of property owners. You can vouch on them to take you to just the kind of property you are looking for.
About the author:
Brittney Jackeline is a well known professional writer. She has won appreciation especially for good writing about the Spanish Real Estate topic like Spanish property or say properties in Spain.
Article Source: http://www.Free-Articles-Zone.com
How to save money by investing on life insurance
With a little bit of precision and proper market survey the best deal will invariably land in your lap. This new consumerist economy forced the life insurance corporations to emerge in its new avatar. Form being just life insurance corporations it has now become to money saving forums catering to the needs of its aggressive consumers.
Ways to save money when investing on life insurance-
-Always go for financially sound companies when investing on life insurance-Almost all companies these days sell life insurance. So, it is better to narrow down your search by going for only companies having good reputation in the market. Do not get lured by companies offering low premium rates. They may turn out to be a bad choice in the long run.
-Determine the right rate class-Once you have decided which companies you want to go for determine the rate class that suits you best. Most of the life insurance companies sell different price classes.
-Do a small market survey research to decide the standard premium rate- A small market research is crucial in determining the standard premium rates charged by life insurance corporations.
-Look into group insurance-Employer sponsored life insurance are perhaps the safest bet. It is advisable to go for it even it require you to shell out a few bucks from your own pocket. Employers of reputed corporations generally provide a subsidy on group insurance costs making it less expensive than individual life insurance. Make a comparison on group and individual rates while taking into account certain factors like health status, age etc.
-Paying premiums at small intervals is not a good money-saving tactic-Paying your premiums at small intervals may cost you much more than paying once every year or once every half-year.
-Get a good rate for yourself-Finding yourself a good rate may be a daunting task for you as many companies essentially offer different rates for the same policy.
-It's advisable to look for renewal guarantees-Always go for renewal guarantees. So, that after the current renewal ends you are able to start a new term and in the process save money.
Getting the right kind of deal and saving money by buying a life insurance may turn out to be a messy affair if you do not take proper precautions before venturing out to find the deal that suits you best. It is a good idea to get some handy tips from an industry insider so that you do not fall in a financial trap.
Saving money is all about making then right moves at the right time. So, throw all your financial worries at bay and invest on life insurance only to gift yourself and your family a life worth living.
Article Source: http://www.articlesnatch.com
About the Author:
Martin Lukac represents RateEmpire Auto Insurance marketplace which connects consumers with multiple insurance companies that compete for their business. RateEmpire is a destination site of Insurance quotes, personal finance, investing, taxes and mortgage rates. For more information please visit How to save money by investing on life insurance
A fresh spin on the supercycle
by Melanie
There's an important distinction between a supercycle for commodities and a supercycle for resources stocks.
With a heading like 'Resources mania or mining supercycle?', a small piece in issue 197/Apr 06 was always likely to polarise opinion, and sure enough we've received a number of emails disagreeing with the point of view we expressed (which leaned heavily towards the 'resources mania' side of the fence).
We have no difficulty with that, because it's different opinions that make a market and we're not afraid to voice our own. Subscribe to The Intelligent Investor for long enough and you're bound to disagree with us on something or other. But we'll do our best to explain our thinking, and a contrary viewpoint often helps to test one's own opinion.
It's also bound to be the case that the analysts at The Intelligent Investor don't agree on everything, and this is one of those areas. So, in the interests of balance, we thought it would be worth airing some other sides to the debate.
Crucial distinction
Firstly, let's get two very important definitions straight. We'll use the term 'commodity supercycle' to describe a large, sustained increase in the price of underlying raw commodities: crude oil, gold bullion, silver, iron ore, uranium etc. While commodities also include agricultural produce such as wheat, sugar, pork bellies and frozen orange juice, we'll just limit the discussion to something we collectively know more about: mineral commodities.
And we'll use the term 'resources stock supercycle' to refer to a situation where the BHP Billitons, Rio Tintos and Kicking Rocks NLs of the world experience large, sustained (perhaps decade-long) increases in the price of their shares. The difference between the two terms may seem so obvious as not to warrant a mention, but we frequently see the two being confused, and that might prove to be a costly mistake.
About the Author
Visit The Intelligent Investor for the rest of this article on stocks and to find out more about stock market investing.
Read More......The Covered Call / Buy-Write Strategy
by Ron Lanieri
For better or worse, most investors purchase stocks with the intent of holding their shares for an extended period of time.
We do this mainly because the media and industry professionals have drilled into our heads, year after year, time after time, that it's best to buy and hold. The recent bull market phenomenon also fueled this mindset because the 'buy and hold' strategy worked extremely well - for a while.
Whether or the not the 'buy and hold' strategy is still the most efficient way of investing remains a topic for discussion. However, it is still the strategy that most investors are comfortable with and tend to follow.
The first strategy we will discuss is a hybrid of the buy and hold strategy, one that provides for better and more consistent returns a large majority of the time when compared to naked stock ownership alone.
When we buy a stock, there are three possible outcomes. As we discussed previously, two of these scenarios are generally negative and only one outcome is generally positive. If the stock goes up, that is good. If the stock goes down, that is bad. And if the stock stays still, that is also a bad outcome.
To briefly recap, not only do you have a loss in opportunity cost (the money invested in your stagnant stock could be making you money if somewhere else) but also, you have incurred commission costs on both the way in and way out. So, in this case, only one of the three scenarios provides a positive return.
For the sake of description, we will identify the three potential scenarios as the "up" scenario, the "down" scenario and the "stagnant" scenario. By employing the covered call or "buy-write" strategy, you can change the outcome of the scenario profile so you have two positive potential results instead of only one.
Employing the covered call or "buy-write," we still have the "up" scenario as a positive result, but now the "stagnant" scenario will also produce a positive result since we collect a premium and the third scenario, the "down" scenario will not be as negative.
Thanks to the covered call strategy, now two of three scenarios end in a positive result and the third has a result that is less negative.
Let's take a closer look at the covered call strategy and its construction. There are two components of the covered call strategy, the stock component and the option component.
The stock component consists of a long stock position (you own stock). The option component consists of selling one call per every one-hundred shares of stock owned.
Remember, one option contract is worth one hundred shares of stock. So for example, 1000 shares of stock equals 10 call contracts or 200 shares equals 2 call contracts.
The chart below shows more examples of the proper construction of buy-writes.
Please take special note that the ratio of stock to calls must be exactly 100 shares to 1 option contract.
Number of Shares Owned Call Contracts to Sell 100 1 300 3 1700 17 9200 92 14500 145 267000 2670
The philosophy behind the covered call strategy is not complicated. It entails using a long stock position along with a short call option to create a positive stream of additional income, much in the same way a person would purchase a house and then lease it out to collect rent in order to pay for the mortgage.
Another analogy is that of the insurance company. An insurance company receives premiums month in and month out. Over a period of time, this constant stream of income easily builds to a point where it outweighs any pay out the insurance company may face, even for catastrophic events.
The constant and reoccurring collection of option premiums works better if done over longer periods of time (for example, one year.) That time frame allows the odds to play into your favor.
Now let's talk about the odds. There have been several studies done on the topic of premium buying versus premium selling. The goal of the studies was to determine whether it is better to buy options or sell options.
Recent studies have found that selling the premium was the correct trade 78% to 83% of the time. That is a very high percentage and is worth taking advantage of when a good opportunity presents itself.
The covered call strategy takes advantage of the fact that an option is a depreciating asset because its extrinsic value goes to zero at expiration. The process by which an option's extrinsic value dissipates is called time decay.
About the Author
Ron Ianieri is a professional options trader, former floor trader, and market maker on the PHLx options exchange. As co-founder of the Options University, Ron teaches hundreds of aspiring options traders from all over the world how to trade options 'the right way'. Click here to learn more: optionsuniversity.com
Read More......How to Invest In Your Daily Life
Very few people are willing to take a step beyond their own personal comfort zone, especially when it comes to financial independence or establishing a pattern of consistent returns by leveraging their personal income through investing. However it is a little known fact that we are all investors, whether we know it or not.
Very few people realize that investing is already an every day occurrence. In fact the majority of people are completely unaware of the fact that investing is something they do on a regular basis, whether they realize it or not.
Millions of people around the world invest in various things day in and day out without even thinking twice about what the actualized returns will be. We invest in our personal health by buying food we think will be good for us, with the hopes that we will receive a longer life here on earth, it's a gamble based on an educated decision. It's an investment.
The hopes of every sensible investor is to receive in value as much as or more than that which you have spent. If you imagine investing in an education such as college, your banking on the fact that your education will some day bring you value either by income in a profession or by a service which will help bring meaning (or value) to your life. Were we to invest in entertainment, say for instance buying a "ticket" at the movie theatre, we are investing with the hopes that the joy we receive will be equal to or greater than the value of an $8 dollar movie ticket.
So as we come to realize that investing is something we do on a daily basis, an aspect of life which permeates all things both monetary and otherwise, it becomes our responsibility to start deciding where and how we want to invest our energy to maximize the quality of our choices and the impact they have on our life.
So you might ask why so few people are investing in ways that can bring them financial growth, when they are clearly investing in so many other areas of their life. Finding this answer will help create a dynamic shift in the way you move forward on your path towards financial growth. Professional "Investors" spend cash to make cash, the rest of the population spends cash to receive things other than cash (ex. gas, shopping, traveling, etc.)
These items that we spend our hard earned cash on often times stand as a gap between our financial security. Given the option to choose between investing: 1) 65 dollars cash, in return for 95 dollars cash each and every Saturday evening or 2) Buying a new shirt and a new pair of pants every Saturday evening.
Which would you choose?
A skillful investor is constantly aware of the aspects which influence both where money is going, what is happening to it while it is gone and how the money will circulate back into his or her bank account. The decision of whether or not to invest your hard earned money in ways that can bring you a greater financial return is an important one. Investing must be a decision made based on a genuine interest to achieve a higher standard of financial excellence. Coming to the understanding that investing is something we're all already doing will help us to connect investing as the next natural step towards our financial growth.
Future articles I write may have more information on how you can invest and what your options are as an aspiring investor. Until then invest in your future by taking some time to ponder the essence of the daily investor, and how your life will be effected by your decision to pursue a broader understanding of the wide world of investments.
Article Source: http://www.articlesnatch.com
About the Author:
Ranked in the Top 10 by Google as an International Forex money manager Aaron Stokes is a professional in the field of managed Forex accounts with an average of 10% growth per month on managed accounts. For details visit: www.forex-cipher.com
Venture Capital Investment in the Fast Growing Business World
Once the management has a sound business plan, the need arises to raise funds for the various company activities. The best option is to finance our organization is by selling equity, stock to investors such as venture capitalists. The company's stock quote is low when it is initially starting while the cost of raising money is on the higher end for the entrepreneur, as the company is yet to prove itself. As and when the company achieves its set goals, it can generate more financial assets to support and substantiate its production, marketing, sales and customer relationship management issues which further help promoting the business to greater heights. Once the organization has proved its worth, the risk factor is drastically reduced and expansion happens on a smoother note.
According to new research by Ernst & Young/Dow Jones Venture-One Data., venture capitalists continued to favor the innovative activity of Web 2.0 companies alone last year, as $844.4 million was directed into 167 deals in 2006, with more than double the money and deals since 2005.
The benefits your organization can derive from Venture Capital Investment:
• Venture capital enhances the process of maximizing returns and minimizing risks.
• Venture capitalists seek to evaluate both the strength of an innovation and the ability of the entrepreneur to motivate commercialization in order to improve the current ROI of the organization.
• Venture capital investments supports the generation of sales and employment opportunities in the long run.
• Organizations backed by venture capital investments achieve a higher growth rate when compared to the national average business organization.
• The high tech boom of the 1990’s was the by product of venture capital investment.
• It is one of the main factors which support the US global competitive strategies.
Venture capital investment backed companies in the US alone generated $1.3 trillion in sales and provided employment to 10 million workers, in 2003. Today the statistics have grown by leaps and bounds. Venture capital investment has proved to be most beneficial for all involved. The most vital contribution of venture capital investment has proved to be the support and economic guidance it provides to the rapidly growing business organizations.
Article Source: http://www.articlesnatch.com
About the Author:
For more Information on Venture capital investment visit www.ibfconferences.com .
Pennystock Risks - 5 Tips to Pick High Return Stock Lists and Advisors to Eliminate Risk of Penny Stocks
by: Dexx Johnson
An unwanted side to investing in penny stock is how quickly you can lose money fast in a bad investment. Even though the rewards of penny stock investing are far greater than most investments you will find, the risks can be daunting.
If you are like me, you want high returns fast without losing money. I will show you two ways do avoid risk and get high returns, the slow way and the way I use (which I will mention at the bottom of the article).
Here is the long way, but one that works, to greatly reduce, perhaps even eliminate, the risks of penny stocks:
1. Beware Hot Stock Tips: You have most likely received a "hot tip" via spam email at some point or another. The promoter promised you fantastic guaranteed returns on your hot penny stocks investment. They word the email to make it a "once in a lifetime" opportunity to you. The best thing to do is delete the e-mail. Chances are you're being scammed by a "boiler room" scam operation. These shady operators buy up worthless shares at fractions of a penny and then attempt to flip them for a few dollars per share.
2. Trading Penny Stocks in Unregulated Exchanges: Unregulated environments do not have to meet the traditional requirements expected of most exchanged that involve penny stocks. Companies in these situations tend to be of lesser quality. Avoid stocks traded on the OTC or pink sheets.
3. Erratic Trading Activity: You should avoid purchasing penny stock that is trading erratically. You could be stuck with the shares for a long time since it's very hard to find a buyer.
4. Lack Of Reporting By Company: When you invest in a company, you want to know what you're buying. To give you an idea, you need their financial statements in order to properly evaluate the company. If no financial statements are issued, the company might have something to hide.
5. Company Hype: Be careful of companies that constantly issue statements that highlights the latest developments but provides no details on how it helps increase revenue or profits.
You may find all these tips frightening in the fact that it requires a lot of in-depth research to be done on all stocks you are considering purchasing, and you'd be right. However proper research is key to eliminating risk!
For those not accustomed to it, the stock market looks either a rosy picture or the dooms day scenario. In reality, it is a mixture of both. By investing in researched stocks, you can get the money of a life time or if you are not careful, you may lose the money of life time. While not every one can become Warren Buffet in stock market, at least you can avoid losses by avoiding the following 5 tips provided above.
I've been quite successful at the age of 24 using penny stocks to not only pay off my college tuition for the past two years, but also keep me debt free! This has been done through following the advice I outlined on my personal website Pick Top Penny Stocks.
Regardless of the method you use to do your research, just make sure you do research!
Enjoy, and here's to your success!
source:searchwarp.com
Building Wealth - With a Proven Method Anyone Can Learn
If you want a method to build wealth that anyone can learn and is within reach of anyone financially then this article is for you. This method is PROVEN and allows you to take charge of your financial destiny. Now, let me tell you a story to inspire you and reveal the method.
The story concerns a group of people who were taught to trade financial markets – Now before you say that’s to hard or I couldn’t do that, read on and you will see things in a different light.
Richard Dennis was a trader and set out to show that everything about financial trading could be taught and he picked a group of people who had never traded before and trained them in 14 days.
The result?
They went on to become some of the most famous traders of all time and make hundreds of millions of dollars!
The fact is everything about trading could be learned but there is another factor that’s important today which involves the rise of the internet.
20 years ago when this test was conducted financial trading was out of reach of most people and to open a Forex trading account was expensive. Today, you can open one online for under $1,000 and your broker will give you 100:1 leverage.
This means that for every $1,000 you put down you can leverage your gains up to $100,000 meaning your potential gains ( and losses) are magnified.
So far we have learned that anyone can learn to trade and you can leverage your stake to make huge gains - so the potential is there for anyone to trade and win.
Lets have a quick reality check though – 95% of traders lose!
This may seem odd if everything about trading can be learned.
The reality is everyone has the potential to learn a method but when you are dealing with leverage it’s a double edged sword and most traders simply don’t have the discipline to trade.
Its essential to cut losses and run profits but when emotions get involved, traders lose and this is the majority.
Now we have had the words of caution now the good news.
If we return to the traders we mentioned earlier they were taught a simple method but they were taught something more - the RIGHT mindset. This was to have belief in the method and execute it with discipline, this was their trading edge and its one you need to.
If you have the desire to make money your on the right course, because its likely that you will do what you have to do to get it RIGHT. This means doing your own research, getting a system you can have confidence in and executing with discipline to make big gains.
You will learn to cut losses and run profits and allow leverage to build wealth quickly for you.
The challenge here, is not learning the method but learning self control and belief however, if you are prepared to study and learn, you can do it.
Sure, it’s a challenge as there is no "free lunch" when it comes to making money but its a challenge anyone can take on and win, if they have a desire to win and learn the information they need to.
The challenge is their and its financial freedom and wealth – The question is are you up for the challenge?
If you are, the world of currency trading can be your route to wealth – discover forex trading and you may be glad you did.
About the author:kelly Price
LEARN MORE ABOUT THE POTENTIAL OF CURRENCY INVESTING
On all aspects of making money from currencies including daily newsletters, and updates on the best high reward trades via Forex Trading Alerts visit our website at:
http://www.learncurrencytradingonline.com/index.html
Article Source: http://www.Free-Articles-Zone.com
Opportunity Cost in Trading
All traders have gone through a period they wished they never placed the trades. It could be impulsive and emotional factor that drove the trader to commit these trades. These are trades that he wished he can forget forever and hope to never repeat them again.
What is opportunity cost in trading?
Opportunity costs happen when we lose unnecessarily while we pass up the higher probability trades with higher reward-to-risk ratio. Everything in life has opportunity costs and in trading, it's no different. This happens more often to new traders who do not understand this concept, usually causing them to blow out their accounts that shorten their trading career or hobby (however the trader views it).
When traders first start out, they usually begin trading without realizing the consequences of how they select their trades. These unnecessary trades would eventually would affect the future opportunities to profit and better their batting average. These trades tend to be losing trades but without calculating the probability of the success of the trade. When they lose, the equity has less of a chance of getting a better trade in the future. This is opportunity cost. For example, the trade takes a bad trade, loses $300 on the trade. Little by little $300 becomes $500, and then more. Finally when the market condition has turned in favor of the trader's strategy, he no longer has the capital to take advantage of the opportunity.
The other opportunity cost that many don't realize is a psychological cost. When a trader takes a bad trade, loses money, regrets for making a bad decision, causing him to be confused and losing his confidence. This loss of self confidence will affect the next trade which could be a high-probability trade. Due to the trader in a state where he's scared of losing again, he may hesitate on the next trade that could be the next winner. He will realize it only after a long while the cause and effect and the vicious circle this opportunity cost creates.
How does solve this problem? The first thing is to re-evaluate the trading records and sort out the trades that were part of the trading plan and trades that were not (impulsive, on the fly trades). If they are more than a few at least 10% of the total trades made, then a solution must be found to eliminate these impulsive or unplanned trades. Better yet, add the total amounts from these impulsive trades to get a reality check on the costliness of these trades. 10% or more is excessive. Most successive traders would not even permit 1% of the trades based on unplanned setups. Understand that these impulsive trades tend to lead more unplanned trades, such as overtrading. This causes mental exhaustion and leads to losing streaks.
One way to eliminate these trades is to write down and memorize the setups that are part of the plan. Better yet, start with one setup/strategy only and trade it repeatedly until it becomes a routine setup the trader takes day in day out. This way, the trader knows exactly what to do when the setup comes up. Once it's proven that he can trade it with discipline and timeliness without giving in and take impulsive trade then he can add another setup. This is the start of the road to recovery from losing opportunity costs.
As for the losing trades that are part of the trading plan, almost nothing can be done to them. Accept them and move on. Losses and losing trades are part of trading. No successful trader ever trade without losses, far from the truth. Very few successful traders manage to have a percentage of wins to losses higher than 60-70%. Normally it's much less, around 50%. So they must accept the fact that at least 30% or more trades will be turn into losses.
If a trader cannot handle losses, he can either quit trading or alternative find a new or different strategy where he can find an extremely high percentage of wins to losses. But keep in mind that this is a Holy Grail, meaning it may not exist. If they do, the trader may have to wait a long time to find such a strategy.
Before taking a trade, make sure to ask if the next trade will hinder and pay for an opportunity in the future. That is, if the trade meets all the right condition and rules of the strategy and not another "intuitive gut feeling" trade that will add another check on the loss column. Giving up this type of trades will open up more opportunities for profitable trades in the future.
Larry Swing is the President of the popular day and swing trading site http://www.mrswing.com a place where you can find free daily articles and videos covering education, market analysis and picks from Larry and other well known traders in the industry.
Article Source: http://www.ArticleBiz.com
Read More......It's the Market for the Investor
Foreclosure is also seen in the market today and while sad for the homeowner Antonio can find properties at the right price and at a greater value than the asking price to the benefit of the investor. Lenders are interested in being paid back and avoid foreclosing and take less than the amount of the original loan, this makes a foreclosed property one that is a low risk investment find the right agent, the lender may forgive a loan on a home, however this loan might not be the only one encumbering the property, therefore you should rely on a Realtor.
Another type of investing, our website offer is to pool funds with other buyers lowering the risks of investing. By doing this you can find a more attractive properties that will have a higher resell value at the time the partners decide to put it on the market. This type of investments are backed by extensive searches from Antonio itself and always guaranteed by a deed, or other instruments another benefit is that you can distribute your money into several investment. Funds will be legally contracted and deposited in the partnership to be created. Contracts, negotiations require a professional realtor that has experience in this field; an inexperienced agent can leave your investment unprotected. This is the reason why for an investor it is always a wise decision to use an Antonio web site that has tips and calculators to reduce risks and liabilities. Homes, villas and other Real estates properties are widely available in this market, and a wise investor should look into other countries, regions. You don’t shop only at one grocery store ….so make sure to check out Antonio’s International real estate properties.
Article Source: http://www.articlesnatch.com
About the Author:
www.hothomespot.com/investor.phpfresh=9172007994167344" target="_blank">For a licensed realtor who speaks English, German, French and Italian please click here.
www.hothomespot.com Read More......
Buying Fractional Stock Shares
By Vijay Kumar Sharma
Fractional shares: Value for your money
Fractional shares are a boon to those stock traders who do not have enough money to buy stocks at a particular point of time. Many online brokers offer such facility where an investor can buy any quantity of stocks or ETF (Index-tracking Exchange Traded Fund). No other financial investment plans offers such leverage to the investor. That’s the reason why new stock traders are getting more inclined towards stock trading system.
Lately the investment markets for custom portfolios of fractional shares are getting crowded. And, leading online brokers are also encouraging traders to opt fractional shares. The reasons behind the recognition of fractional shares are simple: it offers a platform where investors need to invest less amount of money; it offers long-term investment plan for your future financial security. With the introduction of the Internet stock trading, stock market investing is no longer a difficult task and there is nothing holding you back from investment.
Internet stock trading is a platform where you can invest money on stock for quick return. Though you may encounter with some latent hostility that will discourage you by showing some common pitfalls associated with stock trading system. But time has changed now and all those shortcomings have been wiped out. Now stock traders can easily invest money via the Internet stock trading.
Dejectedly, there were strong beliefs that only rich people would be privileged of buying company stocks. Thanks to the fractional share brokers and the availability of various trading stock options through which investors can buy stocks easily and conveniently. Again, with the introduction of the Internet stock trading, everything has become easier. With few mouse clicks, you can contact online brokers and purchase or sell stocks.
Company Websites, on the other hand, provide regular updates of your shares and help you get acquainted with your stock status online. Open an account with any leading company and get registered. Online brokers though charge a minimal amount of commission but they make things easy and hassle free. You can buy and sell stocks as per the stock market values and manage accordingly.
Undoubtedly, there are some risks with the stock market investing, but you can avoid such risks. “Little knowledge is a dangerous thing,” they say, and this is also true here in this context. A sound knowledge of the stock market is necessary before you plan to invest. Consult your friends and your neighbors who are already into this business. There are many expert online brokers who can help you and plan your investment options.
Internet has made things easier in the modern days. You can simply browse the Web and search whatever you want. Everything is available on the Internet. From online investment plans to their implementation, you can find anything. Do some research, find online brokers and buy stocks online. Find cheapest stock trading options and invest in a secured way to get maximum return in minimum time span. This is one of the biggest advantages of stock trading system.
Why Choose Sogoinvest:cheap trading stock options Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma |
Forex Trading – Is NOT Easy 95% of Traders Lose - The Good News Is
By: Monica Hendrix
The majority of forex traders think it is and make the same errors time and time again and there BASIC. Below I have outlined these errors, avoid them and accept the truth about forex trading and you can win and win big time.
First let’s look at the most common errors.
1. Buying success
In forex trading there are plenty of vendors who will sell you a worthless course with no track record for a few hundred dollars and promise you un-told riches and guess what?
The vast majority are junk, have no real track record (a hypothetical one is not worth the paper its written on as its done in hindsight knowing the closing prices) and rely on hyped up advertising and lies to appeal to the greed and naivety of the reader.
Let’s face it, if these vendors could do what they said they could, they shut up and not bother you.
2. Using tools that will NEVER work
Most traders use tools that will never work and here are just a few:
- Scientific Systems
Elliot wave and Fibonacci are the kings of these tools. Both believe that markets are scientific – well there not.
A child in school knows that if they were, there would be no market as we would all know the price in advance. A market is a market, because it depends on opinions of humans and they DON’T think logically or to a scientific theory.
- Day trading
The time period is to short. All short term volatility is random and you can never predict support and resistance in a matter of hours or a day. You may as well flip a coin.
Ever seen a day trader with a real time long term track record of profits? – Neither have I – Let me know if you find one.
- Lack of confidence and discipline
Even traders with good methods can lack this – You need to have rock solid confidence in your system to help you trade through periods of losses.
This is the HARDEST part of trading and most traders simply cannot do it.
It really is a learned skill but it takes time a total understanding of your method and knowing what your trading edge is – If you don’t know what your edge is you don’t have one!
The Truth About Forex Trading Is
The way to make money is not to follow others, or think its easy - its not.
The way to succeed is to work smart and hard and the rewards are immense.
Accept the reality that you need to devise a mindset to deal with an entity that is all powerful – only you can be wrong as the market price is right.
Learn to trade it by accepting this fact.
It’s going to make you look stupid at times, but accept its power and work within its rules and treat trading as an odds game and you can win and win big.
Most traders are naive greedy or stupid – or even all three combined looking for an easy dollar and that’s why they lose.
Get the right mindset work hard, understand yourself and understand the market, treat it as an odds game and you could win at forex trading.
Everything about forex trading success can be learned the rest is up to you.
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Article Source: http://www.ArticleBiz.com
Read More......Purchasing Mortgage Pools During The Present Liquidity Crisis
Purchasing mortgage pools during the present liquidity crisis presents a significant investment opportunity. But success requires a little planning. Today, many investors are spinning their wheels bidding on one mortgage pool after another without success. To be successful you must plan and choose carefully what you will spend your time bidding on. You must know your investment market niche and preferences. You must decide what your investment goals are. You must make a plan of action and execute that plan. Finally, you must know what your bidding on. You must know what the sellers expectations are and you must be able to meet those expectations. If you have a mission statement, you should first consult it. Your mission statement should give you meaningful and measurable criteria for guiding your investment decisions. Does investing in mortgage pools fits within your mission statement? If it does, does it give guidance on defining what types of mortgage pools will meet the mission statements goals? If mortgage mortgage pools don't fit your mission statement then maybe you should revise your mission statement. Alternatively, maybe investing in mortgage pools isn't for you or your corporation; you need to carefully weigh this decision.
If you don't have a mission statement, you need one. A mission statement will give you meaningful and measurable criteria for guiding your investment decisions. Start out by carefully defining your market niche and preferences. This can make the difference between long-term success and long-term failure. Companies who too narrowly define their mission often disappear when markets evolve and change. Companies who too broadly define their mission have no direction and often suffer the same fate. If you're investing in real estate backed notes or mortgages, define your market carefully. Your market may be a specific region; it may be certain types of notes (i.e. residential, commercial etc.); it may be restricted to first mortgages or it may include second mortgages. What ever your looking for, make sure you have defined it and then stick to it.
Next decide what your goals are. These goals should be meaningful and measurable. They may be varied and some goals may be apposed to others. You may have a goal of minimizing risk and another goal that seeks a minimum return of 10, 20, or 30 percent. Higher return generally imply higher risk. You must be able to define and reconcile these goals in relation to one and other. Another possible goal may seek to invest a certain sum of money in certain types of investment such as mortgage pools. The targeted returns may be indexed to a certain interest rate index. Only you can decide what your goals are. But don't make any rash decisions until you know what those goals are. Once you know what your goals are, you must then have a plan of action.
Since the topic of this article is investing in mortgage portfolios, I'll assume that mortgage pools fits within your goals as defined by your mission statement. Therefore, you need to have a plan of action. This plan should give you direction on how you might find mortgage pools. It would also guide you in the types of situations in which you would bid and those in which would not bid.
There are both exclusive and non-exclusive mortgage pools. Non-exclusive pools may have more than one company promoting the pool. Exclusive pools are offered by only one company. There are also two types of bidding situations. There are mortgage pools that are very widely publicized and which go to the highest bidder. And there are exclusive pools which are offered for quick sale. These are often sold to the first bidder meeting the targeted price mark.
If your plan is to bid on the most mortgage pools as possible, you'll probably be bidding on a great many mortgage pools that are widely publicized. You'll probably have many competitors and you may not achieve your desired results. Years ago I made the decision that if I was going to give bids, I didn't want a lot of competition. My decision paid off and I won a lot of bids.
I wasn't bidding on mortgage portfolios but the same principal applies. I was bidding on landscape construction projects. I was a construction project manager for the developer of a large planned community. We started an in-house landscape company and needed to keep them busy. At first I bid on everything I could find. I won a lot of bids but unfortunately the contractors I bid for didn't win the bids and I didn't get any work. As a result, I decided I wanted to get on exclusive bidders lists. I wanted to bid for contractors who actually had work or who were negotiating contracts. This paid off.
I specialized in meeting the needs of the buyer. Often their architects gave them extravagant plans that they couldn't afford. I would show them how they could make little changes that would save them big money. This met their need and it got their attention and I won bids as a result.
You can do the same thing when buying mortgage pools. You can be selective. Know what your bidding on and who your bidding with. Do they have an exclusive on the pool or portfolio or is it being shopped around by everyone? Do you know what the sellers expectations are and can you meet those expectation? These are important questions. Once you know the answer, you can determine if a particular representative is providing pools that meet your goals and action plan.
Today time can be as important or more important than price. If you're bidding on an exclusive pool with no or few other bidders your on a good start. If you can meet the sellers price and closing time-line, you've got it made. Finally, don't be afraid to offer more than the buyer expects if a higher price is within your goal range. Remember, you do have competitors. If you offer more than competing buyers, you may end up getting a much bigger piece of the pie.
John Durr is owner of Summit Note Services. He has access to mortgage pools from many financial institutions. These financial institutions are looking for immediate sales and quick closings. The pools he has access to are exclusive. They are being offered exclusively by one firm representing these institutions. His access is expected to continue through the current liquidity crisis. If you are looking to purchase pools of $2 million, $10 million or much more contact him. You can contact him through his website or email him at sellnote@iglide.net.
source:users.search-o-rama.com
Potential Market Reaction After the FOMC Announcement
The FOMC is expected to ease the money supply on Tuesday for the first time in over four years and since the tightening cycle of 2004-06, when the Fed Funds Rate was raised from 1% to 5 1/4%. Generally, over the 2000s, U.S. actual output has been below U.S. potential output, although the U.S. economy became more efficient, e.g. fewer inputs were required for a given level of output compared to the '90s. Consequently, the FOMC can ease the money supply with the implication that inflation will remain benign, while growth accelerates to close the output gap. Much of the future acceleration of growth will be in U.S. exports increasing faster than U.S. imports.
The chart below suggests at least a 25 basis points easing on Tuesday. The U.S Dollar (black line and left scale) fell to near its all-time low last week after SPX (candlesticks and right scale) rose from 1,370 in August to about 1,490 last week; the 10-year Treasury Bond Yield fell to below 4.5% (above price chart); and gold rose above $700 an ounce (below price chart). Consequently, the market has priced-in a Fed cut. Moreover, Fed Funds Rate Futures show about a 100% chance of an easing, including over a 50% chance of a 50 basis points cut.
Intermediate-term technical indicators and sentiment indicators are bullish. However, seasonality and a FOMC easing, priced-into the market, are bearish. Repositioning of short positions, which may partially explain the recent rally, is also bearish. Moreover, since the early '80s, each time SPX rose to the 50-day MA (blue line in chart) after falling over 9%, it tested the low (although, not enough observations to be statistically significant). Consequently, it seems more likely SPX will test the low, e.g. 1,370, in late-September or October before testing the high, e.g. 1,550. Of course, almost anything is possible, e.g. SPX testing the high quickly, perhaps next week, before falling sharply.
If the FOMC cuts 50 basis points, SPX may spike higher initially, e.g. to roughly 1,500, or perhaps test the high at 1,550. If the FOMC eases 25 basis points, there may be little market reaction or a pullback. Potentially, a 50 basis points cut may suggest the economy is worse than expected. However, a 25 basis points easing may indicate the FOMC will be slow to act, which will increase the odds of recession. So, either way, it may be a lose/lose situation for the stock market. Future earnings growth, particularly during earnings warning season in late September and earnings season in October, may be a more important determinant of stock market direction over the next month or two.
PeakTrader Top Buys: C KKD SIMG QLGC CTIC DNDN; Top Sells SPY (to at least partially hedge C).
Mr Eckart has developed a comprehensive trading methodology using economics, portfolio optimization, and technical analysis to maximize return and minimize risk at the same time and over time. This methodology has resulted in excellent returns with low risk over the past four years.
source:searchwarp.com
Forex Trading – The Novice Traders Biggest Mistake That Wipes Out Equity
Forex trading looks easy yet few succeed, the ratio of losers still remains around 95% with only 5% achieving long term currency trading success.
Anyone can learn to trade currencies successfully, but most novice traders simply do the following and lose all their equity quickly:
They try and buy forex advice from an expert and get their forex education by paying for it.
Now consulting an expert in many fields is a worthwhile exercise. If you want to drive you need a driving instructor and if you want to fix your gas boiler, you need an engineer.
So why not consult a forex mentor guru or vendor and gain from their experience?
Well the answer lies in this question:
Would you take driving lessons from an instructor who had never learned to drive or passed his test?
Of course you wouldn’t!
However that’s what the vast bulk of novice forex traders do.
They pay a few hundred dollars for a system; problem is the vast huge majority of these forex trading systems don’t work and have never worked and have never been traded.
The way to prove this is simply ask the vendor two questions:
1. Are you a trader?
2. Can I see your real time track record of profits?
Of course in the overwhelming majority of cases you won’t get one, so why should you trust your money on a system the vendor hasn’t got the confidence to trade himself?
Many novice traders however fall for the hypothetical track record, which shows huge gains all for $100!
The track record is hypothetical so it’s done KNOWING the closing prices and simply made up to show a profit, they have not been traded.
Now we could all make money if we knew what tomorrow’s closing price is today, but forex trading is not that easy.
The fact is you need to ignore the advice that people try and sell you and do the following:
All the basics of trading are available free on the net and you learn all the essential trading information as well as get some great strategies all free, if you care to look.
If you really want to buy some advice simply go to Amazon and buy the books by the great traders.
These guys have walked the walk and don’t just talk the talk - like most of the vendors on the net and good news it will be cheaper to.
If you pay for advice from a forex system vendor you have little chance of winning, as it doesn’t normally work and of course if it did, they wouldn’t sell it to you they would be to busy making money to hassle you for £100 or so.
Don’t make the mistake of thinking that currency trading success can be bought easily it cant – so don’t fall into this trap.
About the author:
By kelly Price
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Article Source: http://www.Free-Articles-Zone.com
How to trade with Stochastics
by David Chia
The stochastic oscillator is a momentum indicator to compare the closing price of a commodity to its price range over a given time span. The idea behind this indicator is the prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average.
Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price.
The two Stochastics lines: %K - Is the main line and is usually displayed as a solid line %D - Is simply a moving average of the %K and is usually displayed as a dotted line
There are two well known methods for using the %K and %D indicators to make decisions about when to buy or sell stocks. The first involves crossing of %K and %D signals, the second involves basing buy and sell decisions on the assumption that %K and %D oscillate.
In the first case, %D acts as a trigger or signal line for %K. A buy signal is given when %K crosses up through %D, or a sell signal when it crosses down through %D. Such crossovers can occur too often, and to avoid repeated whipsaws one can wait for crossovers occurring together with an overbought/oversold pullback, or only after a peak or trough in the %D line. If price volatility is high, a simple moving average of the Stoch %D indicator may be taken. This statistic smoothes out rapid fluctuations in price.
In the second case, some analysts argue that %K or %D levels above 80 and below 20 can be interpreted as overbought or oversold. It is recommended that buying and selling be timed to the return back from these thresholds. In other words, one should buy or sell after a bit of a reversal. Practically, this means that once the price exceeds one of these thresholds, the investor should wait for prices to return back through those thresholds (e.g. if the oscillator were to go above 80, the investor waits until it falls below 80 to sell). In currencies we mainly use the Stochastic Oscillator on the 15 and 60 minute charts.
Use Stochastics in Trending market The key is when the market is trending up, we will look for oversold conditions (when the Stochastics fall below the oversold level (below 20) and rises back above the same level) to get ready to trade, and in the same way, when the market is trending down we will only look for overbought conditions (when the Stochastics rise above de overbought level (above 80) and falls back below the same level.
Use Stochastic in Trend-less market Buy when %K falls below the oversold level (below 20) and rises back above the same level. Sell when %K rises above de overbought level (above 80) and falls back below the same level.
About the Author
David Cha is a NY-based veteran forex trader. He made his own fortune by trading forex. Now he dedicates his time and efforts to help his fellow forex traders to become successful in trading forex.
source:www.goarticles.com
