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
Tuesday, September 25, 2007
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
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
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
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
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
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
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
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
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
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
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
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
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
Monday, December 04, 2006
Forex Markets - Trading Internationally
investments & trading
Forex Markets - Trading Internationally
Forex market trading is trading money, currencies worldwide. Most all countries around the world are involved in the forex trading market, where money is bought and sold, based on the value of that currency at the time. As some currencies are not worth much, it is not going to be traded heavily, as the currency is worth more, additional brokers and bankers are going to choose to invest in that market at that time.
Forex trading does take place daily, where almost two trillion dollars are moved every day - that is a huge amount of money. Think about how many millions it does take to bring about a total of a trillion and then consider that this is done on a daily basis - if you want to get involved in where the money is, forex trading is one 'setting' where money is exchanging hands daily.
The currencies that are traded on the forex markets are going to be those from every country around the world. Every currency has it own three-letter symbol that will represent that country and the currency that is being traded. For example, the Japanese yen is the JPY and the United Stated dollar is USD. The British pound is the GBP and the Euro is the EUR. You can trade within many currencies in one day, or you can trade to a different currency every day. Most all trades through a broker, or those any company are going to require some type of fee so you want to be sure about the trade you are making before making too many trades which are going to involve many fees.
Trades between markets and countries are going to happen every day. Some of the most heavily trades occur between the Euro and the US dollar, and then the US dollar and the Japanese yen, and then of the other most often seen trades is between the British pound and the US dollar. The trades happen all day, all night, and thought out various markets. As one country opens trading for the day another is closing. The time zones across the world affect how the trading takes place and when the markets are open.
When you are making a transaction from one market to another, involving one currency to another you will notice the symbols are used to explain the transactions. All transactions are going to look something like this EURzzz/USDzzz the zzz is to represent the percentages of trading for the percentage of the transaction. Other instances could look like this AUSzzz/USD and so on. When reading and reviewing your forex statements and online information you will understand it all much better if you are to remember these symbols of the currencies that are involved.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Forex Markets - Trading Internationally
Forex market trading is trading money, currencies worldwide. Most all countries around the world are involved in the forex trading market, where money is bought and sold, based on the value of that currency at the time. As some currencies are not worth much, it is not going to be traded heavily, as the currency is worth more, additional brokers and bankers are going to choose to invest in that market at that time.
Forex trading does take place daily, where almost two trillion dollars are moved every day - that is a huge amount of money. Think about how many millions it does take to bring about a total of a trillion and then consider that this is done on a daily basis - if you want to get involved in where the money is, forex trading is one 'setting' where money is exchanging hands daily.
The currencies that are traded on the forex markets are going to be those from every country around the world. Every currency has it own three-letter symbol that will represent that country and the currency that is being traded. For example, the Japanese yen is the JPY and the United Stated dollar is USD. The British pound is the GBP and the Euro is the EUR. You can trade within many currencies in one day, or you can trade to a different currency every day. Most all trades through a broker, or those any company are going to require some type of fee so you want to be sure about the trade you are making before making too many trades which are going to involve many fees.
Trades between markets and countries are going to happen every day. Some of the most heavily trades occur between the Euro and the US dollar, and then the US dollar and the Japanese yen, and then of the other most often seen trades is between the British pound and the US dollar. The trades happen all day, all night, and thought out various markets. As one country opens trading for the day another is closing. The time zones across the world affect how the trading takes place and when the markets are open.
When you are making a transaction from one market to another, involving one currency to another you will notice the symbols are used to explain the transactions. All transactions are going to look something like this EURzzz/USDzzz the zzz is to represent the percentages of trading for the percentage of the transaction. Other instances could look like this AUSzzz/USD and so on. When reading and reviewing your forex statements and online information you will understand it all much better if you are to remember these symbols of the currencies that are involved.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Friday, November 24, 2006
Forex Trading, What The Hype Is All About
investments & trading
Forex trading, what the hype is all about by J. Foley
Forex trading is all about making big money. Some investors have found it quite easy to make a large amount of money as the forex market changes daily. Forex, is the foreign exchange market. Online and offline you will find references to the forex market as FX as well. Forex trading takes place through a broker or a financial institution often where you are able to purchase other types of stocks, bonds and investments.
When you are thinking about getting involved in the forex markets you should know you are sending money to be invested with other countries. This is done to prop up the investments of people involved in certain types of hedge funds, and in the markets overseas. The forex market could have your money invested in one market one day, and the next day your money is invested in another country. The daily changes are determined by your broker or financial institution. When reading your statements and learning more about your account, you will find that every type of currency has three letters that will represent that currency.
For example, the United States dollars is USD, the Japanese yen is JPY, and the British pound sterling will read as GBP. You will also find that for every transaction on your account listing you will see information that looks like this: JPYzzz/GBPzzz. This means that you took your Japanese yen money and invested it into something in the British pound market. You will find many transactions from one currency to another if you have money that is scattered through out the forex markets.
Forex markets trading by investment management firms are the companies you can trust with your money. You want to find a company that has been dealing with forex trading since the early seventies, and not someone just new on the block so you get the most for your hard earned money. It is important that you beware of companies that are popping up online, and often times from foreign countries that are stating they can get you involved in the forex markets and trading. Read the fine print, and know whom you are dealing with for the best possible protection.
If you are interested in trading on the forex market, you will find limits for investing are different from company to company. Often times you will learn that you need a minimum of $250 or $500 while other companies will need $1000 or $10,000. The company you are dealing with will set limits in how much you need to open an account with their company. The scams that are online will tell you, that you only need a $1 or $5 to open an account, but you need to learn more about that company and where they are doing business before investing any money, this is for your own protection while dealing in forex trading and markets online.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Forex trading, what the hype is all about by J. Foley
Forex trading is all about making big money. Some investors have found it quite easy to make a large amount of money as the forex market changes daily. Forex, is the foreign exchange market. Online and offline you will find references to the forex market as FX as well. Forex trading takes place through a broker or a financial institution often where you are able to purchase other types of stocks, bonds and investments.
When you are thinking about getting involved in the forex markets you should know you are sending money to be invested with other countries. This is done to prop up the investments of people involved in certain types of hedge funds, and in the markets overseas. The forex market could have your money invested in one market one day, and the next day your money is invested in another country. The daily changes are determined by your broker or financial institution. When reading your statements and learning more about your account, you will find that every type of currency has three letters that will represent that currency.
For example, the United States dollars is USD, the Japanese yen is JPY, and the British pound sterling will read as GBP. You will also find that for every transaction on your account listing you will see information that looks like this: JPYzzz/GBPzzz. This means that you took your Japanese yen money and invested it into something in the British pound market. You will find many transactions from one currency to another if you have money that is scattered through out the forex markets.
Forex markets trading by investment management firms are the companies you can trust with your money. You want to find a company that has been dealing with forex trading since the early seventies, and not someone just new on the block so you get the most for your hard earned money. It is important that you beware of companies that are popping up online, and often times from foreign countries that are stating they can get you involved in the forex markets and trading. Read the fine print, and know whom you are dealing with for the best possible protection.
If you are interested in trading on the forex market, you will find limits for investing are different from company to company. Often times you will learn that you need a minimum of $250 or $500 while other companies will need $1000 or $10,000. The company you are dealing with will set limits in how much you need to open an account with their company. The scams that are online will tell you, that you only need a $1 or $5 to open an account, but you need to learn more about that company and where they are doing business before investing any money, this is for your own protection while dealing in forex trading and markets online.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Friday, November 17, 2006
Foreign Exchange Market Is Different From The Stock Market
investments & trading
Foreign Exchange Market Is Different From The Stock Market By J. Foley
The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Foreign Exchange Market Is Different From The Stock Market By J. Foley
The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Wednesday, November 08, 2006
FOREX : Trading Foreign Currency
investment & trading
FOREX : Trading Foreign Currency By J. Foley
FOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.
What makes the FOREX market different from the stock market?
A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.
What really makes up the FOREX markets?
The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.
You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!
The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number.
investment & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
FOREX : Trading Foreign Currency By J. Foley
FOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.
What makes the FOREX market different from the stock market?
A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.
What really makes up the FOREX markets?
The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.
You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!
The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number.
investment & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Monday, October 30, 2006
Investing Mistakes To Avoid
investments & trading
Investing Mistakes to Avoid By J. Foley
Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you are to be a successful investor. For instance, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your money work for you – even if all you can spare is $20 a week to invest!
While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another big mistake. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.
Don’t invest to get rich quick. That is the riskiest type of investing that there is, and you will more than likely lose. If it was easy, everyone would be doing it! Instead, invest for the long term, and have the patience to weather the storms and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.
Don’t put all of your eggs into one basket. Scatter it around various types of investments for the best returns. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow – don’t panic if the stock drops a few dollars. If the stock is a stable stock, it will go back up.
A common mistake that a lot of people make is thinking that their investments in collectibles will really pay off. Again, if this were true, everyone would do it. Don’t count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Investing Mistakes to Avoid By J. Foley
Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you are to be a successful investor. For instance, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your money work for you – even if all you can spare is $20 a week to invest!
While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another big mistake. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.
Don’t invest to get rich quick. That is the riskiest type of investing that there is, and you will more than likely lose. If it was easy, everyone would be doing it! Instead, invest for the long term, and have the patience to weather the storms and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.
Don’t put all of your eggs into one basket. Scatter it around various types of investments for the best returns. Also, don’t move your money around too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow – don’t panic if the stock drops a few dollars. If the stock is a stable stock, it will go back up.
A common mistake that a lot of people make is thinking that their investments in collectibles will really pay off. Again, if this were true, everyone would do it. Don’t count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead.
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Wednesday, October 25, 2006
About On-line Trading
investments & trading
About Online Trading By J. Foley
The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!
We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.
Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.
If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.
You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.
It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.
Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
About Online Trading By J. Foley
The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!
We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.
Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.
If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.
You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.
It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.
Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!
investments & trading
http://travelguy.typepad.com/investments
Article Written By J. Foley
Wednesday, October 11, 2006
Why The Smaller Investor Has Advantages Over Huge Multinational Funds
investments & trading
Why The Smaller Investor Has Advantages Over Huge Multinational Funds When It Comes To Scooping Up Higher Investment Returns By J. Foley
You would be forgiven in thinking that with all the professional managers, funds and resources.at their disposal that investment funds would win head over heels against the smaller investor like you and I. In fact this is not at all the case – smaller investors have several advantages over the big funds and have every chance of beating their returns on investments. Here’s why:
The individual investor does not have to invest millions and so they can invest in small caps (tiny growth companies) that have the potential to grow many times over. These stocks are typically far too illiquid for funds to enter.
The smaller investor can get in and out of a stock with the simple click of a mouse or a phone call (and get roughly the same sale price per share). The larger funds have to gradually sell their holdings in a company (they may have millions of shares to offload – not an easy or quick thing to achieve).
Individual investors can effectively trade positions for small gains – something that larger funds simply do not have the ability to do.
On top of this, the internet has more or less facilitated the smaller investor to have access to the same information at the same time as the big city fund managers. Arguably, the individual investor also has the added advantage of speed – a fund manager may have to get approval in order to buy into a company (not a case for the individual investor) and cannot take advantage of special situations (such as buying on breaking news and so on).
Remember however, if you really want to become a “professional investor” – one who is savvy enough to beat the market and essentially make a living from investments then you need to learn as much as you can about how the market works, how to analyse companies, the part psychology plays in driving markets and how to create an investment/trading system that’s right for you. Even the masters of investing such as Warren Buffet and Jim Slater all started from scratch. Warren Buffet once did not know what the PE of a company meant. Jim Slater once did now know how to read the balance sheet of a company. They educated themselves and discovered how to pick stocks that have excellent potential – you could be doing the same. The first step to investment is to invest in yourself and your education. To offer an overused yet apt phrase – KNOWLEDGE IS POWER!
investments & trading
Article Written By J. Foley
http://travelguy.typepad.com/investments
Why The Smaller Investor Has Advantages Over Huge Multinational Funds When It Comes To Scooping Up Higher Investment Returns By J. Foley
You would be forgiven in thinking that with all the professional managers, funds and resources.at their disposal that investment funds would win head over heels against the smaller investor like you and I. In fact this is not at all the case – smaller investors have several advantages over the big funds and have every chance of beating their returns on investments. Here’s why:
The individual investor does not have to invest millions and so they can invest in small caps (tiny growth companies) that have the potential to grow many times over. These stocks are typically far too illiquid for funds to enter.
The smaller investor can get in and out of a stock with the simple click of a mouse or a phone call (and get roughly the same sale price per share). The larger funds have to gradually sell their holdings in a company (they may have millions of shares to offload – not an easy or quick thing to achieve).
Individual investors can effectively trade positions for small gains – something that larger funds simply do not have the ability to do.
On top of this, the internet has more or less facilitated the smaller investor to have access to the same information at the same time as the big city fund managers. Arguably, the individual investor also has the added advantage of speed – a fund manager may have to get approval in order to buy into a company (not a case for the individual investor) and cannot take advantage of special situations (such as buying on breaking news and so on).
Remember however, if you really want to become a “professional investor” – one who is savvy enough to beat the market and essentially make a living from investments then you need to learn as much as you can about how the market works, how to analyse companies, the part psychology plays in driving markets and how to create an investment/trading system that’s right for you. Even the masters of investing such as Warren Buffet and Jim Slater all started from scratch. Warren Buffet once did not know what the PE of a company meant. Jim Slater once did now know how to read the balance sheet of a company. They educated themselves and discovered how to pick stocks that have excellent potential – you could be doing the same. The first step to investment is to invest in yourself and your education. To offer an overused yet apt phrase – KNOWLEDGE IS POWER!
investments & trading
Article Written By J. Foley
http://travelguy.typepad.com/investments
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