Wednesday, December 19, 2007

Where Can You Buy Mutual Funds?

Investments & Trading

Where Can You Buy Mutual Funds? By J. Foley

For those that are new to investing and have decided that mutual funds are the way to go, the next logical question is how do you go about purchasing them? There are many different ways to go about investing in mutual funds, and you have several different options to choose from.

One of the most popular ways to buy mutual funds is directly from the companies. The type of fund you want to look for is a no-load mutual fund. No-load funds are free from fees and additional costs that load funds tend to have. Since you’re going directly through to the fund company, you will save a transaction fee that you would normally have to pay through a broker, and since you aren’t paying any fees, all of your money goes towards investing.

Going about investing directly is easy. Once you’ve chosen the company you want to deal with, you simply fill out an application, enclose a check for the amount you want to invest and mail it in. It couldn’t be easier.

Another popular way to buy mutual funds is online through a broker or through a mutual fund superstore. Most of these online superstores like T. Rowe Price or Wells Fargo (there are many others, as well) don’t charge any transaction fees for their services because the fund you end up buying will reimburse them. Be careful though, these online superstores often sell funds that do carry transaction fees or they carry load mutual funds that can come with some steep fees of their own. Make sure you read all the fine print and know what you’re investing in before you buy it.

Maybe the most common way of buying mutual funds is through your work’s retirement program. Your 401(k) account is most likely tied to mutual funds so you may already be a seasoned mutual fund investor and not even know it. To find out more about the funds your retirement plan invests in, you can visit the website of the fund that your 401(k) invests in.

If you have signed up for a 529 College Saving Plan, than you’ve bought into mutual funds. These brand new plans are made for families who are trying to help their kids through college. Their main benefit is the tax laws that are used for withdrawals from the plan. In most cases, if money is taken out for education expenses, it’s tax free. This is an ideal plan for most families who are worrying about paying for college.

A final way that you can invest in mutual funds is with a financial advisor. While this way would be a bit more costly since you would have to pay the advisor, you are bound to make the best mutual fund investment choice for you.

Buying mutual funds in this day and age of the Internet is easier than it has ever been. But be careful, make sure you crunch the numbers and make an educated choice and you can be well on your way to financial freedom with mutual funds!

Article Written By J. Foley

Wednesday, December 05, 2007

Online Investing

Investments & Trading

Online Investing By J. Foley


The world of stock trading has changed dramatically over the last 20 years. Trades that use to take more than a week to process now take only moments. While once you needed to have a stock broker to make a trade for you, now, from the comfort of your own computer, you can make as many trades as you like, and at a much lower commission than your grandfather would have paid to make the same trade 50 years earlier. The world of online trading can be very tempting to many. Investing is a lot like gambling, with possible huge profits and even bigger losses possible. But how do you know if online investing is for you?

The first question you need to answer is do you have money to burn? Of course, none of us want to toss our money down the drain, but you have to be prepared for the worst. Most online investors are armed with a copy of the New York Times, online subscriptions to several investment websites as well as strong word of mouth from family and friends, but even with all this information, some investments don’t go the way you want them to. Make sure you have room in your budget so that you can afford to lose some and still be secure. Online investing can be addictive, so you should know when to stop.

Be prepared to arm yourself with as much information as possible. While it’s true that even the most informed traders make mistakes, the more you know, the less likely this will happen. This means immersing yourself in reliable, timely and knowledgeable advice. If you’re not willing to take the time to properly educate yourself, you might want to leave investing to your broker.

A good investor has to learn to be patient. While it is tempting to take on the human herding instinct and put your money on the latest trend or the most fashionable stock, those investors that are confident and patient usually come out on top.

If you’re new, stick to blue chip stocks. There is a reason they are called blue chips, they have shown slow and steady growth over long periods of time. There is no such thing as a safe stock, but blue chips are the closest thing you’ll find. A good tip is to always leave a portion of your investments in blue chips, so if the rest of your investments go south, you’ll have something to fall back on.

Online investing can be exciting and fun, but it can also be terrifying for a newbie. Do the research, develop some patience and stick to familiar ground and online investing can be a great way to develop your portfolio without having to bow to mainstream brokers.
Curious About The First Commercially Available Stock Trading “Robot” Which Earns $346.77 Per Week (Managing $1000 Capital

Article Written By J. Foley

Tuesday, November 20, 2007

What is a Prospectus and How Do I Read it?

Investments & Trading

What is a Prospectus and How Do I Read it J. Foley

When you first buy into a mutual fund, most people have a thousand questions. How has the fund performed in the past year? How do the fees work and which ones do I have to pay? Are there any penalties for withdrawing my money early? What happens if the fund goes out of business? All the answers to these questions are listed in what is known as a prospectus.

A prospectus is simply a book or pamphlet that lists all the information about a fund. Every mutual fund company gives out a prospectus, and sometimes, if the performance for a particular fund hasn’t done well recently, it will even come with bad news about that fund. A prospectus must be accurate. The United States Securities & Exchange Commission checks on the validity of the statements in all financial documents released by investment firms to make sure they are honestly showing people what the fund has done and what they think it will do.

When you open the front cover to a prospectus, they usually hit on three different topics right off the bat: the fees that this fund charges, the objectives of the fund and the performance of the fund. While there are other concerns when you look at a prospectus, these three things are the most important.

Most companies will present the fee schedule in an easy to read graph. Remember, the fund must disclose all fees, there can’t be any surprises.

A mutual fund prospectus is also required by the SEC to list their performance. They must list this information, even if it’s not up to the expectations of the fund. It can usually be found within the first few pages of the prospectus. Most of this data is presented in the form of a table so that reading it and understating it is simple. Also, there is no shame whatsoever in asking questions. Every investor had to start somewhere and if you don’t ask questions about a particular mutual fund before investing in it, you might just be throwing your money away.

There will likely be more information in your prospectus as well, including profiles of the managers that handle the fund, as well as the founders of the investment company and so on.

A prospectus is like a bible for whatever mutual fund you choose to invest in. With oversight provided by the SEC, a prospectus must be a honest document that shows you exactly what you’re getting yourself into with every mutual fund.

Curious About The First Commercially Available Stock Trading “Robot” Which Earns $346.77 Per Week (Managing $1000 Capital

Article Written By J. Foley

Wednesday, November 07, 2007

What A Forex Rate Is And How To Read It

Investments & Trading

What A Forex Rate Is And How To Read It By J. Foley

When we talk about the forex rate, we’re talking about the relative value between two currencies -- how many of one the other is worth, in other words. For forex traders, the forex rate is the basic information they use to do their job. The rate is to a forex trader what nails are to a carpenter.

If you plan to get involved in forex trading, reading and understanding the forex rates is absolutely vital to your success, like learning the basics of addition before becoming a mathematician.

A forex rate is always expressed in pairs, followed by a number. The number is how many of the second currency you’d get for one of the first one. For example, you might see USD/EUR: 0.7928. That means that one U.S. dollar is currently worth .7928 euros. If you were to exchange $100, you’d get 79.28 euros for it. Since the number in this rate (0.7928) is less than 1, that means the second currency is currently stronger than the first one -- that is, the euro is stronger than the U.S. dollar.

Forex traders look at rates constantly throughout the day. They carefully examine trends in various currencies’ performance, noting which are going up and which are going down. If a rate suggests, say, that the British pound is starting to increase in value compared to the euro, a trader might swap his euros for pounds. Then, when new rates show the pound has become very strong, he can swap back again, turning a profit because the pound is now worth more than he “paid” for it.

Forex rates are available everywhere on the Internet. Casual observers to the forex trading industry might glance at them for reference on hundreds of different Web sites. Regular traders, though, usually own software that keeps them up to date on rates throughout the day, without having to visit a particular site to get them.

This is important, because rates change constantly, and can be influenced by a wide variety of economic and political factors. The overall change over the course of a day usually isn’t more than a few percentage points either way, but there are minor changes regularly, and those minor changes add up in the long run. Experienced traders watch the rates for those tiny fluctuations, carefully observing whether there is a general upward or downward trend that requires their attention.

Article Written By J. Foley

Wednesday, October 17, 2007

Different Types Of Mutual Funds

investments & trading

Different Types Of Mutual Funds By J. Foley


So, you’ve decided to jump into the mutual fund investment game. While mutual funds have shown themselves over time to be a safer bet than regular stock trading, there is always the chance you could lose your shirt. But the type of fund you choose will have a lot to do with the amount of risk you take on and the kind of return you’re looking for. For starters, mutual funds are usually broken down into six main categories.

Equity mutual funds allow you to invest in typical shares of common, everyday stock.

Fixed income mutual funds allow you to invest in corporate or government securities that usually offer a set rate of return on your investment.

Balanced mutual funds allow the investor to take on a fund that includes both stock and bond options.

Maybe the safest form of mutual funds are known as money market mutual funds. They offer a high degree of stability for your principal, as well as high liquidity if you need to back out.

Bond mutual funds are popular since they invest in tax free as well as taxable ones.

And finally, sector/speciality funds are used to help diversify your holdings within a particular industry.

Each of these types of funds can be both aggressive and risky with a high level of reward possible, or they can be safer and lower risk. It all depends on which fund you choose.

To break things down further, equity funds are usually divided up into four different categories: Growth and Income mutual funds, International mutual funds, growth mutual funds and aggressive growth mutual funds. Each different type of fund has a particular goal in mind. For some, it’s to aggressively pursue income, even in risky situations, while others seek to preserve the initial investment and only take smaller chances.

As you can see, the mutual fund landscape is filled with so many options, it can make a newbie’s head spin. But fear not, there is almost limitless information available on which mutual fund is right for your particular investment strategy. Not only do most mutual funds and those that run them have their own website, there is endless advice as to which fund is right for you on the Internet, as well. Don’t forget to utilize publications like the Wall Street Journal, as well as friends and family who might have had particular luck with a specific fund. Welcome to mutual fund investing! >"WARNING: Do Not Read This Unless You Are Already Rich!" ... Or Curious About The First Commercially Available Stock Trading "Robot" Which Earns $346.77 Per Week (Managing $1000 Capital.

Article Written By J. Foley

Tuesday, September 25, 2007

9-11 and the New York Stock Exchange

investments & trading

9-11 and the New York Stock Exchange By J. Foley

Maybe no event in American history was as dramatic as the attacks of September 11, 2001. When the attack on Pearl Harbor happened, we had live radio broadcasts bringing updates, and the next days newspaper how photographs of the carnage, but with 9/11, we had live, crystal clear television pictures beamed right into our living rooms. While we still take pause to think of that horrendous day, the world’s financial markets took a hit like they never have before as the ripple effect from Ground Zero was felt all around the world.

When the attacks happened, and because of how close the World Trade Centers were located to Wall Street, trading wasn’t even started. Everyone that had shown up to work that day was told to stay inside until it was safe. Many people inside the exchange reported feeling the ground shake as the two towers collapsed, and the exchange became a refuge for those fleeing the giant cloud of dust, smoke and debris that appeared once the towers fell.

The buildings that hold the New York Stock Exchange were not damaged during the attacks, but a major telephone bunker than held the phone system for the entire area located near the World Trade Center was severely damaged, hence making communication on the floor of the exchange impossible.

The stock market remained closed until September 17. It would turn out to be the longest that the market would remain closed since 1933 and the Great Depression. During it’s first day of trading after the attacks, the market lost over 680 points, the single biggest one day drop in the exchanges history. While the drop only accounted for a little over 7 percent, it is still considered a major event. By the end of that first week back open, the Dow Jones had lost over 1360 points or 14 percent of its value. It would go down as the worst week in market history. The total money losses during that time were estimated to be around 1.2 trillion.
The events of September 11 led to a dramatic increase in security around the exchange, as many feel it could be a target in future attacks.

The events of 9/11 will live on in the minds of everyone who lived through it. For those who had shown up for a day at work on Wall Street, the event is difficult to forget. The NYSE came through it stronger and so did the nation.

Article Written By J. Foley

Thursday, September 06, 2007

More About Day Trading

investments & trading

More About Day Trading By J. Foley

You don’t need to know everything about day trading to succeed as a day trader. Whatever percentage you choose to ride on a single day trade, the idea is to ensure that no single trade is really going to significantly affect your day trading float, positively or negatively. You need to position yourself so that you can endure long strings of losses, and maintain your day trading system.

An experienced day trader will focus on the trade entry points, but also on the trade exit points. Some investors can become addicted to day trading. As long as you consistently follow the rules layed out by a well designed trading plan, you can count on steadily growing your trading account.

Every successful day trader must be flexible, alert and feisty. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations. A day trader may sell a stock if it goes down only two or three cents.

Day traders aim to make small profits on a large number of 'intra-day' transactions. Don’t begin your day trading with money that you can not afford to lose. You can start Day Trading with as little as $750 if you decide to trade using a spreadbetting account rather than a standard broker.

Day traders, both institutional and individual, play an important role in the marketplace by keeping the markets efficient and liquid. Many day traders end up losing a lot of money because they fail to make trades that meet their own criteria. Day trading is like running any other kind of business. It requires planning and expertize. Are there effective methods for day-trading?

The general rules for day trading are always trade with the trend, always cut losses short , and never get emotionally involved in your trades. A Day Trader attempts to produce a profit within a single trading day. Risk management is crucial if you want to have any hope of becoming a successful trader.

Before starting out in the Forex daytrading market we need to make sure we understand the basics of daytrading. Day traders must watch the market continuously during the day at their computer terminals. Access to timely information and fast execution of trades is essential to day trade successfully.

Daytraders frequently find day trading to be exciting. Successful day-traders believe in their indicators but also are aware that nothing is 100% foolproof. Good day traders generally sell into good news and buy on bad news.

In the simplest terms, day trading is the purchase and sale, or sale and purchase, of a security on the same day. Day trading, the business of trying to make money by buying and selling stocks for oneself throught the day, is an extremely risky business. Day trading is not something to jump into without considerable thought.

As with all trading activities, daytrading carries a great risk. Is successful day-trading more luck than skill? Did you know that a successful trader can lose money on 9 out of 10 trades and still make money? Daytrading can be fun, but also stressful.

Curious About The First Commercially Available Stock Trading “Robot” Which Earns $346.77 Per Week (Managing $1000 Capital

Article Written By J. Foley

Sunday, July 29, 2007

How Online Trading Education Can Make A Difference

How Online Trading Education Can Make A Difference By J. Foley


Each online trader will trade in their own style, depending on whether they are
going to be long-term, medium term, short-term or day traders. Making a
decision on the type of trader you want to be, however, means you need to be
aware of the trading education available to assist you.

Stock charts

Stock charts are used and analysed by an online trader in order to help him
determine when to buy and sell stock. The main types of stock charts in use
include:

- Line charts: which, as the name suggests, is a line on a chart connecting
stock price over a period of time (can be minutes, hours, days, weeks,
months, or even years).

- Bar charts: similar to line chart, however the information contained is the
open, high, low and close price of the stock for one particular day.

- Reference chart – charts the stocks price and trading volume and is used to
plot where the stock price may go to.

- Candlestick charts – the information contained in candlestick charts is the
same as that you can find in bar charts; however, the display format is slightly
different.

Technical indicators

As there name suggests, technical indicators are used by stock traders to
track a stock’s previous performance in the hope that it may forecast where
the stock is going to go. This is done by making use of the stock charts
previously mentioned, plus additional analytical indicators which might have a
part to play.

It should be noted that technical indicators can be very confusing if you are
new to this type of information analysis. However, basic use is made of a:
- Bollinger band: which was invented by John Bollinger and uses 3 band lines
to track stock price fluctuations: an upper, centre and lower. The centreline is

the moving average, while the upper and lower lines are twice the plus and
minus standard deviations, respectively.

- Moving average: is a stock price/time series technical indicator. These can
then be calculated over short, medium and long term periods, as the need
requires, to determine where the stock may go and whether you should be
looking to maintain a short, medium or longer term position.

- Candle stick trend reversal: using a candle stick chart, a candle stick trend
reversal technical indicator will use the information in the chart to determine
when to buy in and sell out of a stock.

Keep in mind that there are other types of technical indicators in use, but the
above are the primarily the types used by new online stock traders.

Analysing the information

Assuming you have correctly analysed the stock chart and technical indicator
data, you should then be able to chart a stock’s movements – thereby
hopefully ensuring that you remain one of the 20 percent who make a profit
from online trading from Day One.


Article Written By J. Foley

Want To Learn How To Trade Like A Pro

Friday, July 13, 2007

Investing In Stocks ?

investments & trading

Investing In Stocks ? By J. Foley

Stock investments are generally considered among the best ways of addressing inflation risk over the long term. Investments are the classic example of an undiversifiable risk because the stock market tends to have low returns just when the rest of the economy is also performing poorly. Stock investments are typically common stock, which is the basic ownership share of a company, and also primarily common stock in large-cap companies, while the fixed-income investments are primarily a wide variety of investment grade bonds. Stock investments are typically directed toward long-term capital appreciation, while bond and cash investments are intended to provide ongoing income with significantly less price volatility than stocks.

Market

Market dips, sometimes significant, are simply part of investing in stocks. Markets that lose momentum are sold, while sectors that turn up are purchased. good return for a long term and one should be careful in investing in those stocks which have higher market index. Even the bad stock with poor results would do well in the upcoming market and in the next year with good results.

One should build stock portfolio after considering the risks involved in market. There is rise in stock investments in the market nowadays due to the most advanced technologies available and the process is made easy to check fraud in the markets. When building a stock portfolio, you should carefully consider the risks of investing in the stock market and develop a diversified asset allocation strategy that fits your goals, investing time frame and risk tolerance. Other investment options include buying bonds and mutual funds, delving in real estate and trying your hand out at network marketing. While stock investments can indeed provide excellent returns in the long term, the stock market does indeed fluctuate.

Investments

Investments are the major source of income for many firms which lead to growth and financial status. Investments are not only applicable to firms but also individuals. Investments are not guaranteed a return, and some investments are worse than others. Investments can be a bit risky, but who ever got anywhere by not taking a chance. Investments in common stocks are effected by government policy which may adversely effect the value of the stocks, such as wage price controls, price caps, interest rate increases, tax increases, etc. Investments in a particular company may be impacted by changes in technology. Investments are stated at their purchase price with no impairment as the value of the company invested in exceeds the value paid and the Company does not have the ability to exercise significant influence over the investee’s operating and financial policies. Investments that offer potentially high returns are accompanied by higher risk factors.

Investors

Investors purchase stocks in the hopes that the value of the corporation will increase over time. Investors should pay close attention to press releases from a company. Investors can search the SEDAR site by date, document type, company name, or industry sector. Investors should consider their financial ability to continue purchases during periods of market fluctuation.

Its up to the people to understand and evaluate the best method used before making investment decision in the stock market. If you've decided that investing in stocks is right for you, where do you start to learn about the right stocks for you to invest in. The only strategy that has proven successful for investing in stocks is to pick wisely when you first invest and then hold on for the long term. When you’ve mastered the ropes, stock investments are sure to make some great returns.

All stock investments are risky, but growth stocks represent a gamble too huge for some investors. Good stock investments are always hard to come by but with free stock tips derived from something like disandvantages of stock options one can help learn to invest in the stock market or also learning to invest in the stock market. Most stock investments are higher in risk than bonds and money market securities, but also offer higher potential total returns. It has been proven, that over a long period of time, the market risks associated with stock investments are significantly reduced.
Remember that stock investments are generally meant to be long-term if you want to see any kind of significant return.

Article Written By J. Foley

Forex Trading Machine

Monday, June 04, 2007

Is Mutual Funds The Way To Go !

investments & trading

Is Mutual Funds The Way To Go ? By J. Foley

Mutual funds can invest in many different kinds of securities. Mutual funds are liable to a special set of regulatory, accounting, and tax rules. Mutual funds are divided into two categories: closed-end and open-end. Mutual funds only trade at the end of the day because you trade mutual funds based on their net asset value (NAV). Mutual funds must update their prospectuses at least once a year, so always check to make sure you're looking at the most recent version.

Investors

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. Investors may enter a fund with an initial investment of as little as $500 or regular investments of as little as $50 or $100 per month, withdrawn automatically through investor checking or savings accounts. Investors typically purchase shares in small quantities through brokers at a small premium or discount to the net asset value; this is how the institutional investor makes its profit. Investors like to see not only the rate of return for an individual mutual fund, but also how that fund compares to other similar funds. Investors should be careful about investing in ETFs for income, and evaluate them the same way you would evaluate a dividend-paying stock: Is the yield sustainable (What is the payout ratio).

Performance

Performance measurements are probably the single most selection feature of any stock mutual fund. Performance data for periods of less than one year does not reflect the deduction of purchase and redemption fees. The performance of an actively managed fund largely depends on the investment decisions of its manager. Most mutual funds' investment portfolios are continually adjusted under the supervision of a professional manager, who forecasts the future performance of investments appropriate for the fund and chooses those which he or she believes will most closely match the fund's stated investment objective.

Mutual funds offer two key benefits: diversification and professional management. Mutual funds are now popular in employer-sponsored defined contribution retirement plans (401(k)s), IRAs and Roth IRAs. Mutual funds issue redeemable shares that investors purchase directly from the fund (or through a broker for the fund) instead of purchasing from investors on a secondary market. Mutual funds generally sell their shares on a continuous basis, although some funds will stop selling when, for example, they become too large.

Mutual funds are subject to SEC registration and regulation, and are subject to numerous requirements imposed for the protection of investors. Mutual funds are also subject to the Securities Act of 1933 and the Securities Exchange Act of 1934. Mutual funds and other investment companies allow individuals to pool their savings with those of other investors so they may benefit from professional investment management and diversification. Mutual funds are actively managed by a professional money manager who constantly monitors the stocks and bonds in the fund's portfolio.

Article Written By J. Foley

Forex Trading Machine

Monday, May 07, 2007

FOREX (Foreign Exchange Market)

investment& trading

FOREX (Foreign Exchange Market) By J. Foley

The foreign exchange market is also known as FX or it is also found to be referred to as the FOREX. All three of these have the same meaning, which is the trade of trading between different companies, banks, businesses, and governments that are located in different countries. The financial market is one that is always changing leaving transactions required to be completed through brokers, and banks. Many scams have been emerging in the FOREX business, as foreign companies and people are setting up online to take advantage of people who don't realize that foreign trade must take place through a broker or a company with direct participation involved in foreign exchanges.

Cash, stocks, and currency is traded through the foreign exchange markets. The FOREX market will be present and exist when one currency is traded for another. Think about a trip you may take to a foreign country. Where are you going to be able to 'trade your money' for the value of the money that is in that other country? This is FOREX trading basis, and it is not available in all banks, and it is not available in all financial centers. FOREX is a specialized trading circumstance.

Small business and individuals often times looking to make big money, are the victims of scams when it comes to learning about FOREX and the foreign trade markets. As FOREX is seen as how to make a quick buck or two, people don't question their participation in such an event, but if you are not investing money through a broker in the FOREX market, you could easily end up losing everything that you have invested in the transaction.

Scams to be wary of
A FOREX scam is one that involves trading but will turn out to be a fraud; you have no chance of getting your money back once you have invested it. If you were to invest money with a company stating they are involved in FOREX trading you want read closely to learn if they are permitted to do business in your country. Many companies are not permitted in the FOREX market, as they have defrauded investors before.

In the last five years, with the help of the Internet, FOREX trading and the awareness of FOREX trading has become all the rage. Banks are the number one source for FOREX trading to take place, where a trained and licensed broker is going to complete transactions and requirements you set forth. Commissions are paid on the transaction and this is the usual.

Another type of scam that is prevalent in the FOREX markets is software that will aid you in making trades, in learning about the foreign markets and in practicing so you can prepare yourself for following and making trades. You want to be able to rely on a program or software that is really going to make a difference. Consult with your financial broker or your bank to learn more about FOREX trading, the FX markets and how you can avoid being the victim while investing in these markets.

investment& trading
Article Written By J. Foley

Saturday, April 21, 2007

Day Trading Strategies

investments & trading

Day Trading Strategies By J. Foley

While day trading is neither illegal nor is it unethical, it can be highly risky. As a trader you will probably fall into two main categories, traders who like to trade the breakout and traders who like to join the trend once established. Most day traders have their favorite markets.

You don’t need to know everything about day trading to succeed as a day trader. More important for the day-trader than others is to have the proper 'team' in place. Keep in mind a day-trader with a computer and access to the Internet already has access to a world of information.

Some day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. During the day trading, a day trader will quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures.

An investor needs to have a system that helps him to be prepared for all scenarios of a trade. Is Day Trading Right For You? Can day-trading be learned?

With the unlimited potential to earn of daytrading, comes the possibility of great financial loss. The Forex market is the largest financial market in the world with average daily trading of the currencies going over US$1.6 trillion. Day trading doesn't mean trading every day. Day trading simply means not holding any position beyond the current trading day.
Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations. Before starting out in the Forex daytrading market we need to make sure we understand the basics of daytrading. Even if you`re starting out with a small day trading float, you should practice good money management.

By simply changing the amount of capital you risk in your day trading, you can turn a system from returning 10% to returning a 100% per annum. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. Your best chance to make money trading is by following the path of the best traders.

Access to timely information and fast execution of trades is essential to day trade successfully. You must know how to daytrade if you want to be a sucessful daytrader. Some websites have sought to profit from day traders by offering them hot tips and stock picks for a fee.

The application of Fibonacci to trading can be very complex, and take much time and experience to perfect. Day traders go bankrupt because they lose money, not because they don't make enough money. You’ll need to ascertain for yourself whether you are comfortable with the levels of risk inherent in daytrading..

Do you have the tolerance for the risk involved with day trading? Day traders typically hold stocks anywhere from only a few seconds to several hours but they never keep stocks overnight. Can day-trading be learned? Be aware that day trading does not offer the protection of an advisor who can tell you whether a particular investment is suitable to your financial goals.

investments & trading
Article Written By J. Foley

Sunday, April 08, 2007

Practicing in the Forex Market

investments & trading

Practicing in the Forex Market By J. Foley

So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.

To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.

You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.

The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets.

investments & trading
Article Written By J. Foley

Sunday, March 25, 2007

Investing for Retirement

investments & trading

Investing for Retirement By J. Foley


Retirement may be a long way off for you – or it might be right around the corner. No matter how near or far it is, you’ve absolutely got to start saving for it now. However, saving for retirement isn’t what it used to be with the increase in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!

Let’s start by taking a look at the retirement plan offered by your company. Once upon a time, these plans were quite sound. However, after the Enron upset and all that followed, people aren’t as secure in their company retirement plans anymore. If you choose not to invest in your company’s retirement plan, you do have other options.

First, you can invest in stocks, bonds, mutual funds, certificates of deposit, and money market accounts. You do not have to state to anybody that the returns on these investments are to be used for retirement. Just simply let your money grow overtime, and when certain investments reach their maturity, reinvest them and continue to let your money grow.

You can also open an Individual Retirement Account (IRA). IRA’s are quite popular because the money is not taxed until you withdraw the funds. You may also be able to deduct your IRA contributions from the taxes that you owe. An IRA can be opened at most banks. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the money that you are investing in your account, but when you cash out, no federal taxes are owed. Roth IRA’s can also be opened at a financial institution.

Another popular type of retirement account is the 401(k). 401(k’s) are typically offered through employers, but you may be able to open a 401(k) on your own. You should speak with a financial planner or accountant to help you with this. The Keogh plan is another type of IRA that is suitable for self employed people. Self-employed small business owners may also be interested in Simplified Employee Pension Plans (SEP). This is another type of Keogh plan that people typically find easier to administer than a regular Keogh plan.

Whichever retirement investment you choose, just make sure you choose one! Again, do not depend on social security, company retirement plans, or even an inheritance that may or may not come through! Take care of your financial future by investing in it today.

investments & trading
Article Written By J. Foley

Monday, March 05, 2007

The World Wide Forex Market

investments & trading

The World Wide Forex Market By J. Foley

Forex is a trading 'method' also known as FX or and foreign market exchange. Those involved in the foreign exchange markets are some of the largest companies and banks from around the world, trading in currencies from various countries to create a balance as some are going to gain money and others are going to lose money. The basics of forex are similar to that of the stock market found in any country, but on a much larger, grand scale, that involves people, currencies and trades from around the world, in just about any country.

Different currency rates happen and change every day. What the value of the dollar may be one day could be higher or lower the next. The trading on the forex market is one that you have to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. The main trading areas for forex, happens in Tokyo, in London and in New York, but there are also many other locations around the world where forex trading does take place.

The most heavily traded currencies are those that include (in no particular order) the Australian dollar, the Swiss franc, the British pound sterling, the Japanese yen, the Eurozone eruo, and the United States dollar. You can trade any one currency against another and you can trade from that currency to another currency to build up additional money and interest daily.

The areas where forex trading is taking place will open and close, and the next will open and close. This is seen also in the stock exchanges from around the world, as different time zones are processing order and trading during different time frames. The results of any forex trading in one country could have results and differences in what happens in additional forex markets as the countries take turns opening and closing with the time zones. Exchange rates are going to vary from forex trade to forex trade, and if you are a broker, or if you are learning about the forex markets you want to know what the rates are on a given day before making any trades.

The stock market Is generally based on products, prices, and other factors within businesses that will change the price of stocks. If someone knows what is going to happened before the general public, it is often known as inside trading, using business secrets to buy stocks and make money - which by the way is illegal. There is very little, if any at all inside information in the forex trading markets. The monetary trades, buys and sells are all a part of the forex market but very little is based on business secrets, but more on the value of the economy, the currency and such of a country at that time.

Every currency that is traded on the forex market does have a three letter code associated with that currency so there is no misunderstanding about which currency or which country one is investing with at the time. The eruo is the EUR and the US dollar is known as the USD. The British pound is the GBP and the Japanese yen is known as the JPY. If you are interested in contacting a broker and becoming involved in the forex markets you can find many online where you can review the company information and transactions before processing and becoming involved in the forex markets.

investments & trading
Article Written By J. Foley

Monday, February 26, 2007

Day Trading

investments & trading
Day Trading By J. Foley

A Day Trader attempts to produce a profit within a single trading day. It takes tremendous discipline to be a day trader. Top daytraders have a proven day trading system.

Day trading can be stressful and requires determination and a keen business sense. Day traders also have high expenses, paying their firms large amounts in commissions, for training, and for computers. The most important question of a Trading System is how much to invest and how many positions to trade at the same time.

You need to master the psychology of day trading. An investor needs to have a system that helps him to be prepared for all scenarios of a trade. A trade needs to be completely planned in advance.

In the simplest terms, day trading is the purchase and sale, or sale and purchase, of a security on the same day. Day trading is a location-independent activity. Decide each day how much you are willing to risk in your day trading endeavours and stick to it.

Individuals who attempt to day trade without an understanding of market fundamentals often end up losing money. Behind all of the possible financial rewards of day trading lies the potential for financial disaster. Most day traders who trade for a living work for a large institution. Did you know that a successful trader can lose money on 9 out of 10 trades and still make money?

investments & trading
Article Written By J. Foley

Sunday, February 18, 2007

Selling Your Stock : Is It The Right Time?

investments & trading

Selling Your Stock: Is It The Right Time? By J. Foley
  
Selling your stock is the most important step in the entire investment process for it will determine your profit or loss. If you plan your strategy before you invest you can minimize your loss and maximize your gains. Some investors wish to ensure maximum profit and hold on to their shares, they fear if they prematurely sell off their stocks they might stand to lose. What they fail to realize is that the stock market is never stable and if it crashes they could incur a huge loss. There is no full proof strategy to prevent loss but the following will help you decide when to sell off your stocks. 

Ask yourself:  Am I in need of cash? 
If you find yourself needing cash and the market is in your favor you can sell off. But after you   sell off, the share price may continue to rise, it is then that you regret your decision. The only precaution possible is not to invest money that might be required in recent future. 

Is the company performance under question? 
As an investor you look for stability, excellent management and reputation of a company when you invest. The company strategies could be   revised or the management overhauled, then you might reexamine your investment and decide to sell off your stocks if the company no longer holds promise.  

Is the stock being over valued? 

Stocks may be over valued at times. The prices soar much beyond their original value and plunge all of a sudden, the intention is to buy back the shares when the market falls. If you wish to sell off an over valued stock it is more desirable than procuring an over valued one. The prices may keep rising after you sell off but then again you could have incurred a loss had you held on to your share. 

Has the money doubled? 

The general rule in the market is that you should sell off half your share once a stock doubles. Many investors follow this approach. It provides you with a sense of comfort that you have recovered the money that you invested .You play safe  and at the same time  have funds in the market  to take risks with.    Is the stock price ever going to rise in the future? 

Plummeting stock prices can be another reason to sell off. There are stocks that undergo a lot of fluctuation, prices reach a high or low instead of a steady increase. If you are unsure about the future of the stock and you have a niggling doubt so as to whether the stock price would rise or not, you might consider selling off. An intelligent decision would be not to have highly unpredictable holdings. 

Do I have a better   investment opportunity? 

As far as market returns are concerned if you sense a better opportunity sell off your current holdings in order to invest in a new company. You need to be well informed about the new company and compare your present holdings, analyze possible future returns and then sell off.  

Have I reached my goal? 

When you invest you have a certain target in mind. Once that financial objective is realized you can start selling off your holdings. If your investment plans have been successful it's time to enjoy your profits. 

The above-mentioned strategies are not full proof as mentioned earlier but the cardinal rule is to weigh all the consequences before you sell your stocks. You must decide after surveying all other alternatives and do not hesitate to sell if they no longer hold promise.

investments & trading
Article Written By J. Foley

Monday, January 01, 2007

A Few Tips On Day Trading

investments & trading

A Few Tips On Day Trading By J. Foley


Don't believe advertising claims that promise quick and sure profits from day trading. The NASDAQ officially defines "pattern day trading" as placing four or more round-trip orders over a five-day period. Day Traders utilize high amounts of leverage and short-term trading strategies to capitalize on small price movements in highly liquid stocks or currencies.

Risk management is crucial if you want to have any hope of becoming a successful trader. Even if you`re starting out with a small day trading float, you should practice good money management. Generally, a day trader should have enough day trading capital to buy at least 1000 shares of any given stock on any particular day.

A novice day trader should normally have day trading capital of at least $20,000 to start, so this is not a business to undertake lightly. You need to trade stocks which will not make it hard for you to exit your day trading position quickly at a fair price. A day trader will rarely hold a tock overnight as there are many other opportunities and a stock that takes hours to move is not worth holding.

The benefit of day-trading can be summed up with one word: control. Day trading has become an online phenomenon in the last year which has resulted in manuals and courses on how to successfully day trade. Although day trading has become somewhat of a controversial phenomenon, its prevalence is undeniable.

While day trading has become popular, the characterizing of day trading as another mode of investing may be overstated. Limiting your losses when day trading is by far more important than making big profits. For the sophisticated investor day trading may be safe since such investors know what they are doing and are willing to absorb the risk of losing money. Day trading is not a get rich quick business.

investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley