What is Automatic Investing?

Investments & Trading

What is Automatic Investing? By J. Foley


For many, the idea of investing in mutual funds, stocks and bonds is appealing, but it all seems too complicated. Too much jargon, too much danger, too much hassle. Thankfully, the companies that run mutual funds know this and have come up with a way for new investors who may not have a big wad of cash to invest right off the bat.

It’s called automatic investing and it is highly recommended for those new to mutual funds and for those that want to invest but don’t have a lot of up-front funds.

Automatic investing is done through a mutual fund company, and what happens is, you sign up to purchase a set amount of funds either every month or every few months (usually quarterly). You buy a bit at a time, whatever you feel you can afford, and your shares are managed by the mutual fund company. It is a great way to watch a nest egg form from money you didn’t even know you had.

A great part about automatic investing is that most mutual fund companies are so excited to get new investors in, they will waive most if not all transaction and investment fees for those that are signing up for automatic investing. They understand you may not have a lot of extra cash to throw away on fees and they want you to get your feet wet with mutual funds.

Maybe the best part about automatic investing is that it is a very disciplined form of investing. Instead of opening up an E-Trade account and investing from your home computer, an investment expert at the mutual fund company that you invest in will handle your shares and in this case, it is probably best to let the experts handle it. It’s extremely tempting to chase mutual funds when investing yourself. You hear the latest news about funds that may be surging and its tempting to take your money and jump on the hottest fund, but disciplined, long-term investing is a much more beneficial way to go.

Whichever company you choose to use for automatic investing will supply you with a prospectus that will outline all of the fees that may or may not be associated with your account. This is key since you’ll need to know what any possible cost might be for things like early withdrawals.

For many, automatic investing takes the guesswork and the fear out of mutual fund investing by allowing a large amount of money to build up over time. Contact a mutual fund company to see if automatic investing is right for you!

Article Written By J. Foley

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Finding a Forex Broker in a Crowded Marketplace

investments & trading

Finding a Forex Broker in a Crowded Marketplace By J. Foley

So you want to get involved in the foreign exchange market, or forex. You’re itching to trade one currency for another and make some profit. But you can’t just barge into Citigroup of Merrill Lynch and start throwing euros and yen around. To participate, you need a forex broker.

The preeminent forex broker for day traders (i.e., average Joes) is Advanced Currency Markets, or ACM. To many people, the Swiss company, founded in 2002, is synonymous with “forex broker,” trading about $70 billion a month.

There are dozens of other brokers, though, who service day traders. It’s done almost exclusively online, and in fact ordinary citizens rarely got involved with forex trading at all until the computer boom of the 1980s, and then exponentially more with the advent of the Internet in the 1990s. Since then, forex brokers have proliferated.

As you might expect, levels of reliability and competence vary from one broker to another. The Internet is rife with unsavory types seeking to take advantage of suckers, so you would do well to investigate thoroughly any broker you’re planning to use. Does their Web site look professional and reassuring, or is it riddled with dead links and spelling errors? Google the broker to see if they’ve been mentioned in news articles. Ask about their track record. And above all, avoid anyone who promises things that sound too good to be true, or who downplay the financial risk involved in forex trading.

Look for a broker that seems to genuinely want your business. Does the firm have customer service representatives available? Is there a phone number you can call to speak to a live person? The Web site should explain things clearly. If the site is full of language that seems designed to go over your head, look for a different broker.

If you set up an account with an online forex broker, it will work like this. First, you must apply for an account, which most brokers allow you to do online. This is to verify your identity and the validity of your bank accounts and financial records. Some brokers also require you to download their forex trading software, while others let you use whatever software you prefer. You will also have to transfer a minimum deposit to your account with your new broker. The minimum can be anywhere from $100 to $2,500.

Ideally, the broker you choose should offer service and support when you need it but should mostly simply stay out of the way and let you conduct your business. If you can find a forex broker who is professional and helpful, your experience in the forex market should be full of smooth sailing.

Article Written By J. Foley

Online Forex Forums Connect Traders Around The World

Investments& Trading

Online Forex Forums Connect Traders Around The World By J. Foley

Most forex trading is done online, with investors looking at forex charts, considering trends, and making decisions. There’s very little interaction, even via the Internet, with other human beings. That’s one of the reasons that many traders also spend time in forex forums, chatting with other investors and sharing tips.

There are dozens of forex-related forums and message boards on the Internet. Some are tied to brokerage firms, while others are just freestanding forums on forex-related sites. Since the market is active 24 hours a day, you can usually count on the forums being busy at all hours too.

As mentioned, one of the reasons for visiting forex forums is simply psychological: Humans like to interact with other humans, especially when their day jobs require them to be alone with a computer for hours at a stretch.

Furthermore, there are a lot of emotions involved in trading. It’s real money, after all, and often large amounts of it. Online forums give traders a place to discuss the psychological effects of long-term trading, how it can become addictive and nerve-racking, and what impact it has on everyday life. You could think of message boards as being a sort of support group for traders, or the equivalent of the office water cooler.

Forex forums have more practical uses, too, of course. Traders find the tips and strategies offered by their fellow traders to be invaluable. Forums are often rife with people more seasoned and experienced than the average person, which benefits the newcomers. And many experienced traders enjoy visiting the forums because it gives them a chance to share their wisdom with others.

Forex forums are also useful for gauging the general mood of the marketplace. The charts and rates give you the cold, hard facts. But many times making a decision to buy or sell comes from the gut, based not just on the numbers but on how the market FEELS. The forums are a place to see what other traders are thinking right now. Do they feel optimistic? Pessimistic? Are things looking up? Are they discouraged? All of this information can be taken into account when considering a trade.

ForexFactory.com and ForexForum.net are two very popular, widely visited message boards. There are dozens of others out there, too. All forex forums give traders a chance to connect with their colleagues and to learn from one another.

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Article Written By J. Foley

The Stock Market Correction Of 1987

Investments & Trading

The Stock Market Correction Of 1987 By J. Foley
The events of October 19, 1987, at the time, were looked upon as a full-fledged stock market crash. In retrospect, no depression or even a recession was sparked by this dramatic fall in prices, but the event is historic nonetheless. One of the aspects that makes it so memorable is the fact that to this day, no one really knows what caused it. There are many different theories as to the reason of the correction, but its all speculation.

The ’87 correction, known now as Black Monday was the first ever global stock market crash. The final numbers are staggering, with the Hong Kong stock exchange losing over 45 percent of its value, the Australian stock market losing almost 42 percent of its value, the UK lost over 26 percent, while the New York Stock Exchange lost 22.6 percent.

The October 1987 fall ended up being the second biggest single day percentage drop in the history of the stock market. The biggest one day decline happened in 1914 when the Dow Jones lost just over 24 percent. This drop was attributed to the fact that the market had been closed for four months due to World War I prior to that day. The biggest point loss in history was the first day of trading after the attacks of September 11th, when the Dow lost over 680 points.

Starting in mid-August of that year, the Dow began to correct itself. A series of 100+ point drops plagued the market over the next two months, but the drops were always followed by recoveries. Even days before the October 19 drop, there had been a major dip, and the next day, stocks were back up. It wasn’t until the Black Monday collapse that stocks went down and stayed there.

Possible causes for the crash are usually broken down into a few different categories, including market psychology, illiquidity, overvaluation and program trading. Other possible causes for the correction are attributed to a major storm in the UK which happened on the previous Friday. The storm did not allow traders in the UK to finish their days work and this caused many in the US and around the world (especially in Hong Kong where the crash first started to happen) to sell.

While time has shown the events of October 1987 weren’t quite as bad as some had feared, dramatic market corrections are a part of investing and while they can be terrifying when they happen, they shouldn’t take a savvy investor by surprise.
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Article Written By J. Foley

Want To Learn Forex ?

Investments & Trading

Want To Learn Forex ? By J. Foley

It isn’t hard to learn forex, but it does take time and dedication. The principles involved are fairly easy from a mathematical standpoint, and the basic way that the system works is straightforward enough once it’s been explained to you. But the details and nuances of the market can make it daunting.

The first step as you set out to learn forex should be to do some basic reading on how the foreign exchange market works. The foreign exchange Wikipedia article is good basic reading, and there are plenty of Web sites that offer overviews to help you learn the fundamentals.

Plenty of books have been written on the topic, some of which will help you and some of which just want your money. Try the public library first: Books are free, and if they’re in the library, they were probably published by legitimate publishing houses with legitimate editors and researchers. The information will be more reliable than something you get from a Web site where a guy wants you to buy his e-book.

After that, you have a number of options, all of which will help in different ways. You can make your choice depending on what your own learning process is usually like, whether you’re a visual learner or prefer written instruction, for example.

There are many forex seminars held in major cities, sometimes for free. In these, experienced traders offer tips and strategies to new traders trying to learn forex for the first time.

There are also online courses available, which you can take at your own pace over the course of several weeks. These almost always cost money, and the quality varies. (Remember, you usually get what you pay for.) Some of these courses come from brokers who want you to learn the system so you can start trading with their companies, so it’s in their own best interest to train you well.

You should also consider a demo account, which can help you practice through a realistic simulation of currency trading. You get the full experience of trading without any of the financial risk.

Many firms also offer mini forex accounts, which are real accounts with real money, only with much smaller amounts. For example, instead of a minimum starting investment of $1,000, the minimum might be only $100. This lets you learn forex through actual hands-on practice, but with a risk that is much smaller than usual. You can quickly see if you’re cut out for trading or if it’s just not in your constitution to handle the emotional roller coaster.

Once you learn, forex can be fun and exciting, not to mention financially lucrative. It is necessary to learn, though, and not just jump in blindly.

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Article Written By J. Foley

The Buttonwood Agreement – The Forerunner To The NYSE

Investments & Trading

The Buttonwood Agreement – The forerunner to the NYSE By J. Foley

When we think of the current New York Stock Exchange, images come to mind of the Big Board, ticker tape and incredible amounts of stress. But it didn’t always use to be that way. There was a time when a group of men met under a shady tree in the spring to found what would become one of the most powerful and well known exchanges in the world.

The story of the Buttonwood Agreement actually goes back even further than 1792. Two years earlier, then Secretary of the Treasury Alexander Hamilton (pre-duel) issued a then staggering amount of $80 million in war bonds to help pay for the rising costs of the Revolutionary War. It would be these bonds that would play a key role in the founding of the Buttonwood Agreement.

A major reason for the founding of the Buttonwood Agreement was that securities trading in New York City at that time was a bit disorganized. Auctioneers would deal in commodity trading, land speculation and foreign currency exchange, but the Buttonwood Agreement sought to organize and streamline the trading so that it could be done in one place.

Two years later, on May 17, 1792, a group of 24 prominent New York City business men met outside of 68 Wall Street in lower Manhattan and put together the Buttonwood Agreement. With a simple two-sentence contract, they formed the New York Stock & Exchange Board and the first securities to be traded were those very war bonds that Alexander Hamilton had issued two years prior. The first company to be listed on the new exchange was the bank of New York. The original home for the new stock & exchange board would be the Tontine Coffee House, which was owned by Hugh Smith, one of the 24 founding members. Other founding members included well known New York business men such as Charles McEvers Jr, John Bush, Alexander Zuntz and Ephraim Hart.

In 1817, the adopted name of the New York Stock & Exchange Board was formally adopted, as well as a comprehensive constitution and bylaws, and later in 1863, this name was shortened to the name we know today, the New York Stock Exchange.

It’s amazing to consider that the billions of dollars that trade hands every day on the floor of the New York Stock Exchange started as a group of business men looking to organize colonial American commodity trading under a tree. But it’s true, and their legacy is felt every single day and it will continue to be felt for as long as the NYSE stands.
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A Good Forex trading Strategy Can Mean The Difference Between Failure And Success

Investment & Trading

A Good Forex trading Strategy Can Mean The Difference Between Failure And Success By J. Foley


No sane person would jump into the forex market blindly. You might as well set your money on fire if that’s what you’re going to do. Sensible investors study the market carefully first, learn the ins and outs of currency trading -- and even then, before they launch into it, they devise a smart forex trading strategy.

The market is constantly changing and is not always predictable, true. But you still need a strategy, one that allows for unknowns and surprises.

Your strategy should begin with how much money you can afford to lose. That may sound like a negative outlook -- after all, the goal is to MAKE money, not lose it -- but common sense tells you that the forex market is a gamble. There are precautions you can take that will make you less likely to lose your initial investment, but there’s no way to guarantee it. Your strategy must allow for the possibility that you’ll take a bath, and for that reason you should never invest more than you can afford to lose.

Another good tip for your trading strategy is to avoid putting all your investments in one currency. What’s the old saying about eggs and baskets? Yeah, don’t put ‘em all in one. Spreading them out makes it much, much less likely that you’ll be wiped out, the way you would if you relied on one currency and it bottomed out.

As you prepare your trading strategy, make yourself aware of what the market is doing right now. Is it trending upward, or downward? What’s the general mood among traders? They all have a strategy, too, and are eager to know what others are thinking.

Consider also what your timeline is. How long do you want to stay in the market before taking your profits and getting out?

Your strategy must also involve learning the timing of the business. Timing is everything: Too late or too early and your potential profit evaporates. As you learn to gauge the market and make trades at just the right time, your profits will increase. A good strategy will factor in this learning curve and allow for a few mistakes at first.

Above all, to prepared to accept surprises when it comes to forex trading. Strategy can only get you so far. The rest is ingenuity and a little bit of luck.

Article Written By J. Foley

Securities Exchange Commission

Investments & Trading

Securities Exchange Commission By J. Foley

The United States Securites and Exchange Commission was founded in 1934 in response to the great stock market crash of 1929. Congress created the SEC in the hopes that it would serve as an independent and non-partisan agency that would help regulate the dealing of securities in the USA. Thanks to the crash of 1929, Congress also enacted many new securities laws that the SEC was created to enforce.

The main job of the SEC is to enforce a series of laws, most of them enacted from 1933-1940 that help protect investors of securities and the economy as a whole. Congress has given the SEC the right to bring civil cases against companies that they feel have committed a series of crimes, such as insider trading, fraud, or companies that have given false information. The SEC also works hand-in-hand with local police, the FBI or the CIA in pursuing criminal charges when the proper laws have been broken.

One of the ways that the SEC gathers information about various companies so that it can see if any of them have broken the law is be requiring that publicly held companies submit reports four times a year and then an annual report, as well, showing their financial numbers. The companies also file reports with the SEC that outline how the business did that year and how it expects to do in the future.

These reports are absolutely vital to investors when trying to figure out which company to invest in. The capital markets are notorious for upheaval and these reports are essential for investors who are trying to figure out which companies are safe to invest in and which ones aren’t.

The SEC allows anyone to read these reports and they are available via an online system to read at any time. The SEX also uses this same system so that individual investors may file complaints against a company that they feel might be breaking the law. This allows every day citizens the chance to call attention to a possibly crooked company.

A recent pop culture reference to the SEC came from the now-defunct television show Arrested Development, when the pilot episode featured the SEC boarding a yacht to confiscate documents related to the Bluth family business.

The SEC is a vital government agency that helps companies walk the straight and narrow and helps individual investors make educated decisions about the right companies to invest in. If you’re thinking about investing in the capitals market, a visit to the SEC online system is an absolute must.

Article Written By J. Foley

Where Can You Buy Mutual Funds?

Investments & Trading

Where Can You Buy Mutual Funds? By J. Foley

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

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

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

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

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

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

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

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

Article Written By J. Foley

Online Investing

Investments & Trading

Online Investing By J. Foley


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

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

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

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

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

Online investing can be exciting and fun, but it can also be terrifying for a newbie. Do the research, develop some patience and stick to familiar ground and online investing can be a great way to develop your portfolio without having to bow to mainstream brokers.
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Article Written By J. Foley

What is a Prospectus and How Do I Read it?

Investments & Trading

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

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

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

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

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

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

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

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

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What A Forex Rate Is And How To Read It

Investments & Trading

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

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

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

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

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

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

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

Article Written By J. Foley

Different Types Of Mutual Funds

investments & trading

Different Types Of Mutual Funds By J. Foley


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

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

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

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

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

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

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

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

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

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

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9-11 and the New York Stock Exchange

investments & trading

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

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

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

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

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

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

Article Written By J. Foley

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

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

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

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

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

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