Investing Stock Market ABC’s
by: Jay Moncliff
While most folks today trust mutual funds and their professional managers with their investments, it’s still important to understand the basics of the stock market. Although investing in individual stocks may not be right for everyone, a basic understanding of the stock market is essential to understanding the workings of our economy and business sector.
A stock is a portion of ownership in a company. Commonly referred to as a share, it is a small percentage of the total ownership pool for the corporation. Shareholders are stock owners, or people who have an ownership interest in the corporation. Today, shares are usually tracked electronically, but in previous decades shareholders would actually receive a certificate stating their ownership.
Why own stocks? First, you are sharing in the company’s profits. When a corporation shows a profit, they will sometimes distribute these profits to each shareholder, based on how much stock they own. This distribution is called a dividend. Company’s can elect to pay out their profits or reinvest them in the company, but as a shareholder, each time a payout is made you will receive your proportionate share.
Also, the value of your stock will rise and fall based on the company’s perceived value in the stock market. If you buy a share at $10.00 and it rises to $11.00 a share, you’ve made a dollar for each share you own, and subsequently sell. However, with this opportunity comes risk as well. If the share price falls and you sell, you’ll lose money. The more volatile the stock, the more opportunity for risk or profit.
Most shareholders track their stocks using the stock table. These appear confusing and difficult to read, but they are actually easy to understand with a little practice.
Ticker symbol is listed first. This is the abbreviated symbol that the stock market uses to identify your company. For example, GE is General Electric, WMT is Walmart. Once you select a company, you’ll need to know it’s shorthand name to track its progress.
Second, the company’s name may be listed. Some tables omit the name to save space, others list it to make tracking stocks easier.
The third item is the number of sales in the last trading day. This is listed in the 100,000’s, so 256 means 256,000 shares were bought and sold on the last day that the market was open.
Next are the high and low price, in that order. The high price is the highest per share price that the stock sold for on the previous trading day. The low price is the lowest price for that day. Since the price of the shares moves all day long, this is a good reference to see how much the stock is changing in a day.
Next, the closing price is listed. This is the last price that the stock traded for as the market closed. This will also be the beginning price for the next trading day.
After the closing price, the table will list the change, or the amount that the stock changed when you compare yesterday’s closing price with the closing price for the day before. This will be listed as a positive number (the stock went up) or a negative number (the stock sold for less yesterday than the day before).
Stock tables are found in many places, but most people check their daily paper or the Wall Street Journal. There are many internet sites that track stocks as well.
Of course, you’ll have to select a stock. Choose carefully or consult a professional, and good luck!
About the author:
Jay Moncliff is the founder of http://www.investingreviews.infoa website specialized on Investing, resources and articles. This site provides updated information on Investing. For more info on Investing visit: http://www.investingreviews.info
Sunday, September 21, 2008
Saturday, September 20, 2008
How To Win In Futures Trading With This Simple Tactic
How To Win In Futures Trading With This Simple Tactic
by: David Jenyns
Surprisingly, many profitable speculators have success rates between 30% and 50%. Futures traders are not successful because they predict prices well. They`re winning because their profitable trades far exceed their losses. The truth of the matter is all Futures systems win and lose.
Psychologically, this can make following a system difficult. Futures market professionals achieve success in this environment by controlling risk with money management rules. But, controlling risk goes against our natural tendencies. Most Futures traders don`t want to manage risk, they want to be right. Despite the proven fact that money management is so important, when Futures traders first come to me, many of my clients focus their time looking for the perfect entry. It`s their search for the Holy Grail. They want a perfect Futures indicator.
Not only is this Futures indicator going to get them in right at the bottom of the trend, but it`s also going to tell them at the exact point at the top of the trend when to get out. Here`s the best part and about this indicator: apparently, it can guarantee success and it`s never, ever wrong.
Unfortunately, though I don`t like to disappoint my clients, I need to let them know the hard truth. It does not matter whether you are trading in the Futures or any other market, the simple fact is this; there is no perfect indicator. Instead, there are carefully set money management rules that will place you in control. With this control, you`ll be able to follow the two cardinal rules in your Futures trading – you`ll be able to let your profits run and cut your losses short.
Once these money management rules are in place your system can be set on autopilot. You won`t need to worry…
"Should I be holding this stock?"
OR
"Shouldn`t I be holding that type of stock?"
This uncertainty is what people are confronted with when they don`t have their rules set for the Futures market. The end result is that small losses end up being big losses.
To make matters worse, a few of these big losses strung together can have a detrimental effect on your Futures trading capital. Unfortunately, it`s much more difficult to trade to gain back money you have lost then it is to trade with profits that you already have in hand. If things go to the absolute extreme, you run the risk of wiping out your entire Futures trading float, as many traders do when they first get started. But, with your money management rules in place, you can ride out the ups and downs of every Futures trading system and succeed where many fail.
About the author:
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the leading expert when it
comes to designing profitable Future trading systems.
by: David Jenyns
Surprisingly, many profitable speculators have success rates between 30% and 50%. Futures traders are not successful because they predict prices well. They`re winning because their profitable trades far exceed their losses. The truth of the matter is all Futures systems win and lose.
Psychologically, this can make following a system difficult. Futures market professionals achieve success in this environment by controlling risk with money management rules. But, controlling risk goes against our natural tendencies. Most Futures traders don`t want to manage risk, they want to be right. Despite the proven fact that money management is so important, when Futures traders first come to me, many of my clients focus their time looking for the perfect entry. It`s their search for the Holy Grail. They want a perfect Futures indicator.
Not only is this Futures indicator going to get them in right at the bottom of the trend, but it`s also going to tell them at the exact point at the top of the trend when to get out. Here`s the best part and about this indicator: apparently, it can guarantee success and it`s never, ever wrong.
Unfortunately, though I don`t like to disappoint my clients, I need to let them know the hard truth. It does not matter whether you are trading in the Futures or any other market, the simple fact is this; there is no perfect indicator. Instead, there are carefully set money management rules that will place you in control. With this control, you`ll be able to follow the two cardinal rules in your Futures trading – you`ll be able to let your profits run and cut your losses short.
Once these money management rules are in place your system can be set on autopilot. You won`t need to worry…
"Should I be holding this stock?"
OR
"Shouldn`t I be holding that type of stock?"
This uncertainty is what people are confronted with when they don`t have their rules set for the Futures market. The end result is that small losses end up being big losses.
To make matters worse, a few of these big losses strung together can have a detrimental effect on your Futures trading capital. Unfortunately, it`s much more difficult to trade to gain back money you have lost then it is to trade with profits that you already have in hand. If things go to the absolute extreme, you run the risk of wiping out your entire Futures trading float, as many traders do when they first get started. But, with your money management rules in place, you can ride out the ups and downs of every Futures trading system and succeed where many fail.
About the author:
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the leading expert when it
comes to designing profitable Future trading systems.
Friday, September 19, 2008
Forex Broker Commissions
Forex Broker Commissions -
by: Eddie Tobey
Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.
Many may wonder how brokers work without commissions. The forex dealer is like a middleman. Let's consider the case of a bread middleman. He buys bread at a “wholesale” price and he sells it at a “retail” price. So if one is a baker, he can ask the middleman how much he would buy his bread for. Let's say the middleman quotes $1, so he's willing to pay $1 per loaf.
On the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf. So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for. And he quotes the baker $1.25. That sounds reasonable, so you tell him to drop one off for you.
In this example, the bread middleman didn't charge you a commission to either the baker or you, the customer. Instead he bought at one price and sold at another. He will let you buy from him at $1.25, and let you sell to him at $1. So every time the baker has bread to sell, he checks the middleman's sell price. And when you want to buy a loaf of bread, you check the buy price.
In trading, this is known as the “bid” and “ask”. The bid is the price you can sell at, and the ask is the price you can buy at.
Considering forex broker commissions, the forex dealer will let the trader buy from him at 1.1971 and will let the trader sell to him at 1.1967. The difference 0.0004 is known as the spread. And this spread is where the forex “middleman” makes his money.
If the trader were to buy at 1.1971, then the instant the trader buys, he is “down” 0.0004, because if the trader wanted out of the trade, the best price he could sell it for is 1.1967. So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap. Each minimum increment, 0.0001 is referred to as a “pip”. So the spread in this example is 4 pips. In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 0.0004) or 4 pips. So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others. In forex trading, the tighter the spread is, the better.
About the author:
Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.
by: Eddie Tobey
Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.
Many may wonder how brokers work without commissions. The forex dealer is like a middleman. Let's consider the case of a bread middleman. He buys bread at a “wholesale” price and he sells it at a “retail” price. So if one is a baker, he can ask the middleman how much he would buy his bread for. Let's say the middleman quotes $1, so he's willing to pay $1 per loaf.
On the other side of the equation, let's say you just finished his last slice of bread, and you needs a new loaf. So you call up the local middleman, and ask him how much he's willing to sell you (a customer) a loaf of bread for. And he quotes the baker $1.25. That sounds reasonable, so you tell him to drop one off for you.
In this example, the bread middleman didn't charge you a commission to either the baker or you, the customer. Instead he bought at one price and sold at another. He will let you buy from him at $1.25, and let you sell to him at $1. So every time the baker has bread to sell, he checks the middleman's sell price. And when you want to buy a loaf of bread, you check the buy price.
In trading, this is known as the “bid” and “ask”. The bid is the price you can sell at, and the ask is the price you can buy at.
Considering forex broker commissions, the forex dealer will let the trader buy from him at 1.1971 and will let the trader sell to him at 1.1967. The difference 0.0004 is known as the spread. And this spread is where the forex “middleman” makes his money.
If the trader were to buy at 1.1971, then the instant the trader buys, he is “down” 0.0004, because if the trader wanted out of the trade, the best price he could sell it for is 1.1967. So as the forex dealer takes varying trades from people, each buying or selling, he can make money from this price gap. Each minimum increment, 0.0001 is referred to as a “pip”. So the spread in this example is 4 pips. In terms of dollars, for a forex contract of $100,000, this transaction would cost you $40 ($100,000 x 0.0004) or 4 pips. So the trader will find that some companies will advertise a spread of 3 pips on some currencies, usually ranging up to five on others. In forex trading, the tighter the spread is, the better.
About the author:
Forex Broker Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Broker Info is the sister site of Incorporating in Florida Web.
Tuesday, September 9, 2008
Goodbye Multi-Level Marketing and Hello E-currency Exhcange
Goodbye Multi-Level Marketing and Hello E-currency Exhcange
by: Chris Rohrer
If you are reading this article you are one of many people who have spent many hours trying to find a work at home business that really does work. Searching for unique ways to make money on the internet. Very few people go on to succeed working from home, and most have failed many of times trying different things.
So how are some people succeeding? The answer is quite simple; they are finding a business that works with their specific strengths and needs. The majority of people today trying to get into the home-based business industry are not salesmen and genius marketers. People fiddle around looking in all the wrong places wasting loads of money on advertising that isn’t working and E-books that promise wealth.
It took me five years to find a business that did not involving selling, building a down-line or that required me to recruit more people. That is when I stumbled across e-currency exchange, the fastest growing online opportunity today.
So what is it then? E-currency exchange allows everyday people just like you and I to build a financial portfolio through a complex system of thousands of people exchanging funds from dollars to electronic currency. There are two sides to the trading system, the portfolio side and the console side.
Initially you create a portfolio that receives 1.5% to 4.0% gains per day on the amount of money in the portfolio. For example, if you put in $1,000 and received gains at a rate of .35%, your profits for one day would be $3.50. This money is compounded daily and grows continuously over time. It is not uncommon for people who initially invest $100 to grow their portfolio value to $1000 in 1 month. It is easy to see that over the course of time you can make substantial gains.
Once you have been in e-currency exchange program for 90 days and your portfolio has grown to a value of $5000, you are able to apply for a console. With a console you can now process requests from people that wish to take their money from e-currency and convert it back to the dollar. As a console holder you receive a percentage of the amount being exchanged as profit. There are literally people lined up in a queue that need these exchanges processed daily. There is such a high demand right now for exchangers that it is a very profitable business for those who are able to console.
The only down-side is learning how to navigate through this e-currency network which is extremely difficult without assistance. Most people try it out for a few days, become frustrated and quit because they simply do not know what they are doing. That is why we have developed a guide that will walk you through everything you need to know! We have everything from personal phone support, to forums, to live chat rooms. There is no selling or recruiting and that is what makes this the perfect business!
About the author:
Learn how I turned a $400 investment into $4,000 over the course of 60 days. For more information and resources check out E-currency Online
by: Chris Rohrer
If you are reading this article you are one of many people who have spent many hours trying to find a work at home business that really does work. Searching for unique ways to make money on the internet. Very few people go on to succeed working from home, and most have failed many of times trying different things.
So how are some people succeeding? The answer is quite simple; they are finding a business that works with their specific strengths and needs. The majority of people today trying to get into the home-based business industry are not salesmen and genius marketers. People fiddle around looking in all the wrong places wasting loads of money on advertising that isn’t working and E-books that promise wealth.
It took me five years to find a business that did not involving selling, building a down-line or that required me to recruit more people. That is when I stumbled across e-currency exchange, the fastest growing online opportunity today.
So what is it then? E-currency exchange allows everyday people just like you and I to build a financial portfolio through a complex system of thousands of people exchanging funds from dollars to electronic currency. There are two sides to the trading system, the portfolio side and the console side.
Initially you create a portfolio that receives 1.5% to 4.0% gains per day on the amount of money in the portfolio. For example, if you put in $1,000 and received gains at a rate of .35%, your profits for one day would be $3.50. This money is compounded daily and grows continuously over time. It is not uncommon for people who initially invest $100 to grow their portfolio value to $1000 in 1 month. It is easy to see that over the course of time you can make substantial gains.
Once you have been in e-currency exchange program for 90 days and your portfolio has grown to a value of $5000, you are able to apply for a console. With a console you can now process requests from people that wish to take their money from e-currency and convert it back to the dollar. As a console holder you receive a percentage of the amount being exchanged as profit. There are literally people lined up in a queue that need these exchanges processed daily. There is such a high demand right now for exchangers that it is a very profitable business for those who are able to console.
The only down-side is learning how to navigate through this e-currency network which is extremely difficult without assistance. Most people try it out for a few days, become frustrated and quit because they simply do not know what they are doing. That is why we have developed a guide that will walk you through everything you need to know! We have everything from personal phone support, to forums, to live chat rooms. There is no selling or recruiting and that is what makes this the perfect business!
About the author:
Learn how I turned a $400 investment into $4,000 over the course of 60 days. For more information and resources check out E-currency Online
Monday, September 1, 2008
Forex Trading: Great Opportunity or Scam?
Forex Trading: Great Opportunity or Scam?
by: Steve Pickering
A lot of interest has been generated recently in FOREX trading, hailed by some as the great new investment opportunity. There are even companies running TV infomercials, offering sure fire systems that will bring massive profits in an easy fashion.
So what is forex? Is it something new? The exchange of currencies is said by some to be the world's second oldest profession and as long as there have been two sovereign states that have issued their own currencies, there has been foreign exchange as a facilitator for trade.
Forex, as foreign exchange has been abbreviated to, has been conducted for centuries and has become a global market with a daily turnover according to a recent Bank for International Settlements survey of $1.9 trillion (billion, billion) per day. Essentially it is a global market place with no physical exchange building where all claims on foreign currencies are settled - between governments, corporations, investors and speculators among others. Banks have traditionally been the middlemen who provide the liquidity to this gigantic market, which incidentally is traded on an almost continuous 24-hour basis.
Then came the Internet and suddenly it became possible for everyone to get a piece of the speculative action. Brokers sprouted up with their electronic trading platforms and high 'leverage'. Essentially the brokers lend clients funds to speculate with, 100:1 or in some cases up to 400:1 ratio, or leverage. This means that $10,000 can 'control' up to $4,000,000 in the market. This is far higher than is possible in the stock market.
Many people have been attracted to the possibilities of earning fast profits from forex. There are often sharp movements that can turn your $10,000 to $20,000 in a matter of minutes. You can also get wiped out, but the lure of a fast buck has turned would-be speculators into out-and-out gamblers.
The Internet has also made it possible for the individual to obtain so-called 'charts', that allow them to do 'technical analysis' on their own PCs. The theory is that price movement patterns repeat themselves, so if you have a system of analysis, you can predict a future move in the market.
This may well be the case, but it does not address the problems of the psychology of trading - the fear and greed that drives many to irrational behaviour. People are often taken in by the seller of a system, often paying $5,000 for a piece of software that shows a green light to buy and a red light to sell. However, they don't tell you how to manage your money.
So speculators lose. It has been estimated that 90% of new investors in forex lose their capital in the first year - an appalling figure. What can one do to avoid being a victim? Well, forex is a business like any other business and planning is required. It is also a profession and as such, adequate training is necessary so that you understand fully what forex trading is all about.
Many are prepared to invest thousands in forex trading without really knowing what it is all about. Just think if franchises were offered in a major hamburger chain without the franchisees having a clue how to run a restaurant or even make the burgers. The failure rate would also probably be 90%!
As with all investing, it is all a matter of risk and reward. Investing in Government securities is considered low risk, therefore they carry the lowest return. Increase the risk (the probability of loss on the investment), the higher an investor is rewarded in terms of return. An individual trading forex decides his own level of risk, which should dictate the level of reward. However, in the hands of an inexperienced trader, the two factors are impossible to reconcile, meaning in stark terms that traders cannot control the risk or the reward levels.
People attracted to forex trading often have an unrealistic expectation of what can be earned. To start with an investment of $5,000 and expect to be making $100,000 a year after the first year is unrealistic. It is not impossible; then again, neither is winning the lottery.
If the parameters for trading are laid down and adhered to combined with knowledge of forex trading, success is possible. It does not take much in the way of 'enhanced' returns to be able to double an investment. 26% per annum is required to double your investment within 3 years.
Who is going to teach you? There are some very good courses available, but these will only give you the theory, in itself very important. The ideal way is to have a mentor, or guide to show you the way.
Getting mentored is a wise move because it makes it possible to draw on the experience of a veteran expert and avoid making the common mistakes that cause the unwary to suffer catastrophic losses. After a while under guidance, a forex trader will gain the experience
The bottom line is that forex is not in itself a scam. There are for sure scam artists who prey on individuals' greed as there are in any other business. If it is approached in a sensible and realistic manner and the trader is prepared to work hard, forex can provide a good living both financially and materially.
About the author:
Steve Pickering is founder and owner of Forex Trader Mentor and has been engaged in the forex markets since 1971.
by: Steve Pickering
A lot of interest has been generated recently in FOREX trading, hailed by some as the great new investment opportunity. There are even companies running TV infomercials, offering sure fire systems that will bring massive profits in an easy fashion.
So what is forex? Is it something new? The exchange of currencies is said by some to be the world's second oldest profession and as long as there have been two sovereign states that have issued their own currencies, there has been foreign exchange as a facilitator for trade.
Forex, as foreign exchange has been abbreviated to, has been conducted for centuries and has become a global market with a daily turnover according to a recent Bank for International Settlements survey of $1.9 trillion (billion, billion) per day. Essentially it is a global market place with no physical exchange building where all claims on foreign currencies are settled - between governments, corporations, investors and speculators among others. Banks have traditionally been the middlemen who provide the liquidity to this gigantic market, which incidentally is traded on an almost continuous 24-hour basis.
Then came the Internet and suddenly it became possible for everyone to get a piece of the speculative action. Brokers sprouted up with their electronic trading platforms and high 'leverage'. Essentially the brokers lend clients funds to speculate with, 100:1 or in some cases up to 400:1 ratio, or leverage. This means that $10,000 can 'control' up to $4,000,000 in the market. This is far higher than is possible in the stock market.
Many people have been attracted to the possibilities of earning fast profits from forex. There are often sharp movements that can turn your $10,000 to $20,000 in a matter of minutes. You can also get wiped out, but the lure of a fast buck has turned would-be speculators into out-and-out gamblers.
The Internet has also made it possible for the individual to obtain so-called 'charts', that allow them to do 'technical analysis' on their own PCs. The theory is that price movement patterns repeat themselves, so if you have a system of analysis, you can predict a future move in the market.
This may well be the case, but it does not address the problems of the psychology of trading - the fear and greed that drives many to irrational behaviour. People are often taken in by the seller of a system, often paying $5,000 for a piece of software that shows a green light to buy and a red light to sell. However, they don't tell you how to manage your money.
So speculators lose. It has been estimated that 90% of new investors in forex lose their capital in the first year - an appalling figure. What can one do to avoid being a victim? Well, forex is a business like any other business and planning is required. It is also a profession and as such, adequate training is necessary so that you understand fully what forex trading is all about.
Many are prepared to invest thousands in forex trading without really knowing what it is all about. Just think if franchises were offered in a major hamburger chain without the franchisees having a clue how to run a restaurant or even make the burgers. The failure rate would also probably be 90%!
As with all investing, it is all a matter of risk and reward. Investing in Government securities is considered low risk, therefore they carry the lowest return. Increase the risk (the probability of loss on the investment), the higher an investor is rewarded in terms of return. An individual trading forex decides his own level of risk, which should dictate the level of reward. However, in the hands of an inexperienced trader, the two factors are impossible to reconcile, meaning in stark terms that traders cannot control the risk or the reward levels.
People attracted to forex trading often have an unrealistic expectation of what can be earned. To start with an investment of $5,000 and expect to be making $100,000 a year after the first year is unrealistic. It is not impossible; then again, neither is winning the lottery.
If the parameters for trading are laid down and adhered to combined with knowledge of forex trading, success is possible. It does not take much in the way of 'enhanced' returns to be able to double an investment. 26% per annum is required to double your investment within 3 years.
Who is going to teach you? There are some very good courses available, but these will only give you the theory, in itself very important. The ideal way is to have a mentor, or guide to show you the way.
Getting mentored is a wise move because it makes it possible to draw on the experience of a veteran expert and avoid making the common mistakes that cause the unwary to suffer catastrophic losses. After a while under guidance, a forex trader will gain the experience
The bottom line is that forex is not in itself a scam. There are for sure scam artists who prey on individuals' greed as there are in any other business. If it is approached in a sensible and realistic manner and the trader is prepared to work hard, forex can provide a good living both financially and materially.
About the author:
Steve Pickering is founder and owner of Forex Trader Mentor and has been engaged in the forex markets since 1971.
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