Title: Stock Market Advice From Chicken Little

Word Count:
468

Summary:
One day, while Chicken Little was walking in the woods, an acorn fell and hit him on his head.

“Goodness gracious me!” said Chicken Little, “The sky is falling, the sky is falling. I must go warn everyone.”

We see this all the time. The stock market goes straight up for eight or nine months, and if there are 2 or 3 down days in a row, there is hand-wringing and the moaning all over the place.

Who are these people that panic at the first sign of a downturn or with the…

Keywords:
retirement, stocks, stock market, investment, investments, finance

Article Body:
One day, while Chicken Little was walking in the woods, an acorn fell and hit him on his head.

“Goodness gracious me!” said Chicken Little, “The sky is falling, the sky is falling. I must go warn everyone.”

We see this all the time. The stock market goes straight up for eight or nine months, and if there are 2 or 3 down days in a row, there is hand-wringing and the moaning all over the place.

Who are these people that panic at the first sign of a downturn or with the slightest bit of profit taking?

The first group are people who get in the near the top and are now worried that their small losses will turn into big losses. Also, people who haven’t invested in the stock market are in this same box. For many, many years they were wrong to not have invested, but now that the market has declined very slightly for a few days they would like the point out how smart they are and how dumb everyone else is.

Short–sellers are the next group. Short selling is selling a security that the seller does not own but is committed to repurchasing eventually. It is used to take advantage of an expected decline in the security’s price.

The press comes next. You have heard this before: “bad news sells newspapers.”

The 24–hour television news stations must make every tiny move in a stock or in the stock market seem like a momentous occasion. Imagine hearing such a stupid statement as “this is the largest stock market decline since last week.”

The slimiest are the politicians whose party is out of power. They try to make themselves look good by making the other guys look bad. It does not matter which group you belong to or who is in power or out of power at the moment.

An out of power politician must find the cloud in every silver lining.

So, how can you protect yourself? What should you do to keep out of “the sky is falling” trap?

The most important thing that you can do is to be clear about your long-term financial goals and objectives. Yes, in the very short run, many circumstances can affect the value of your portfolio. In a well-diversified portfolio, these declines will be relatively small and short lived.

Twenty years from now, it will not have mattered who was shot during the past twenty years or who was in power or who went to jail or to war. Simply ask yourself, “how will three dollar a gallon gasoline affect my retirement twenty years from now?”

Don’t worry about tales of imminent doom and gloom. Don’t listen to, and certainly, don’t act upon rumors and scare stories. And, most of all, don’t spread these stories yourself.

Title: Staying On Top Of The Top Penny Stocks

Word Count:
499

Summary:
Before you put money into any investment, you like to know that the investment has a reasonable chance of appreciating in value. And the same applies to penny stocks; there are thousands and thousands of penny stocks, but before you buy any of them you would certainly benefit from knowing how to separate the top penny stocks in a sector from the rest.

The skills to do that can be learned with a great deal of homework and some trading experience. If you really could spo…

Keywords:
Buy Penny Stocks, Good Penny Stocks, Hot Penny Stocks

Article Body:
Before you put money into any investment, you like to know that the investment has a reasonable chance of appreciating in value. And the same applies to penny stocks; there are thousands and thousands of penny stocks, but before you buy any of them you would certainly benefit from knowing how to separate the top penny stocks in a sector from the rest.

The skills to do that can be learned with a great deal of homework and some trading experience. If you really could spot the top penny stocks before everyone else, you would be almost certain to achieve some serious profits. If you want to find the top penny stocks, there are some techniques which you may find useful.

Finding Top Penny Stocks

One of the best ways to find top penny stocks is to review their trading charts to see if there are any noticeable trading patterns. If a stock has a regular history of spiking in price shortly before the quarterly report, you can time your buying to coincide with the next anticipated spike, and sell before the earnings report is issued. Learning to read a stock’s charts is the easiest way to determine if it belongs in your top penny stocks list.

Look to companies with trustworthy experienced management in hot sectors for other top penny stocks. The penny stock market is unfortunately rife with sham companies run by dishonest stock promoters who do nothing except print and hype their stock. They can often manipulate their stock price, but because there is no real company behind their claims, the spike in price seldom lasts more than a single trading session.

You can find top penny stocks in industries for which the demand is ongoing. As long as your company offers a product or service with features not offered by any of its more established competitors, it has a chance of being discovered and if so, its stock price will skyrocket.

Recognize The Hype

Like all blue chip stocks, top penny stocks do not rely on hype, but have the value of a company with a positive record underlying their market performance. If a penny stock you own suddenly starts climbing on rumor or a “fluff” press release, play it safe and take your profits. Only stay with a rise in price if it is based in solid fundamentals, and even them you should lock in at least some of your profits. For more info see http://www.pick-pennystocks.com/Articles/Hot_Penny_Stocks.php on Hot Penny Stocks.

If you do develop a system for finding tip penny stocks, don’t think that it is invincible. While it will greatly enhance your chances of trading success, the penny stock market is a gamble. Never risk more than you can afford to loses; remember that a even a small profit is better than a loss and don’t get greedy; and never confuse fluff for substance when you are assessing a penny stock company.

Title: Online Forex Trading – The Basics

Word Count:
592

Summary:
Forex trading is derived from a combination of two words, foreign and exchange. More simply put it is the trading of foreign currencies and is often referred to as the FX market. If you are searching for excitement and profits this could be the market to trade.

Keywords:
forex, trading, online, system, market, training, trade, traders, trader, software

Article Body:
Forex trading has become extremely popular the world over and has people from all different countries and backgrounds trading like only the professional traders could do just a short time ago. Until recently Forex trading was performed mostly by major banks and large institutional traders. The technological advancements that have occurred of late have transformed Forex into the playground of average traders like you and me.

It’s easy to find an online FX trading system, platform or software that can make it easy and fun to trade the market. Simply browse the web and you will be inundated with many exciting offers and promotions. There are many firms that sell or even give away free training software, charts or other useful tools for your future in Forex trading.

Foreign currency trading is done in pairs or combinations. For example, trading the Dollar versus Yen, the Euro vs. the Dollar or the British Pound against the dollar. The most popular currencies that are used for trading and investment purposes are the United States Dollar (USD), Japanese Yen, British Pound, Euro and Swiss Franc. The make up the major portion of all currency trading.

When you come across these currencies in the market you will see them written as a pair: USD/JPY (U S Dollar and Japanese Yen), EUR/USD (Euro and U S Dollar), USD/CHF (U S Dollar and Swiss Franc) and GBP/USD (British Pound and U S Dollar).

The vast majority of all day trades of foreign currency involve these five major currencies. Your goal as a trader is to pick out which currency will appreciate against another. If you can find or develop a system that will allow you to choose the correct direction a currency will be taking it is possible to make good profits in the FX market.

Most trades on the FX market are done by Forex brokers and dealers at major banking institutions across the globe. And since it is a world wide market that makes it a 24 hour a day market. The brokers or dealers work in different shifts so that major institutional traders can perform their trades 24 hours a day around the clock.

However, don’t be alarmed. You do not have to be awake all day and all night to trade the market. It is a simple matter of placing stop orders with brokers to buy or sell at pre-determined price levels even while you are sleeping. If your pre-specified price points are met the order will go through as planned. If your price points are not met the orders will not be placed or carried out. This is the key to stopping potentially big losses. You’d hate to be asleep when the market turned against you without a way to get out. Having specified price levels can save you a lot of stress in the market place. With stop orders you don’t have to constantly follow your currencies every second of the day. You can place your orders and then go about your normal daily routine.

The FX is unlike stock exchanges in that stock exchanges can be very volatile. The FX market is ordinarily a great deal smoother and doesn’t gyrate up and down as quickly or rapidly. The market is actually very easy to trade and is very liquid, meaning you can get your money in or out at any time. Placing an order can be done in a matter of seconds. If you have the temperament for this type of activity it can be a very worthwhile endeavor.

Title: My Most Recent Experiences About E Currency Exchange Trading

Word Count:
540

Summary:
You keep hearing about this money generating model that takes no marketing or selling, merely 60 minutes a day (at the most) and no genius skill.

I have to see it to believe it!

At the least that was the 1st feeling for any person that knows the internet for some time.

Let’s take a look at the Real Facts about E Currency Exchanging.

What if you were somehow able to render the flow of capital for “Internet Money” therefore it may be listed as a financial backing or…

Keywords:
e currency exchange, e currency trading, currency trading, dxinone, egold, invest in egold

Article Body:
You keep hearing about this money generating model that takes no marketing or selling, merely 60 minutes a day (at the most) and no genius skill.

I have to see it to believe it!

At the least that was the 1st feeling for any person that knows the internet for some time.

Let’s take a look at the Real Facts about E Currency Exchanging.

What if you were somehow able to render the flow of capital for “Internet Money” therefore it may be listed as a financial backing or “material currency”?

We can produce as much as 1.5% to 4% every 24 hours in interests for you investment for doing E Currency Trading. My interest went through the roof. We can produce coumponded interest for a first investment as small as fifty green ones.

Depending on your background, it may not be so easy to believe that People doing this system can take $100 and make them into $800 in less than 45 days. I’m twenty-one years old and it’s not something I hear everyday. You’re really putting your income to produce more money. As much as it took me to grasp it, it happens. And it guides no special skill. After all, your cash is the one doing all the hard work.

There is a hard part, on the other hand. It’s a somewhat complex technique to get the whole picture of at first. In fact it can get exhausting whenever you don’t know what the heck you’re doing. Start an account here, an additional one there, buy some stuff here choose some stuff there. You can go insane tackling to figure it out by yourself.

I was privileged enough to learn it the mellow way. If any person points you stepwise, with a visual simulacrum of how he employs the model In microscopic detail, and then it becomes much easier

“do this, Start this account, then Create this additional account, put your cash here, transfer it here, and look at how it increases”

After anyone guides you by the hand like that and educates you, it just becomes very simple. What is required is that you watch the first video, then do what you just saw. Watch the next video, then follow the instructions. Watch the next one and… well you catch my drift.

One of the coolest things about E Currency Exchange is that you, me, and anyone else follows the same process to make money. We all take the same base steps, so it’s something you can model. If you’re headed at this direction, if you’re looking into learning about E Currency Trading, I have to recommend you invest the fast lane and learn the business instead of tackling to figuring out through the hard path.

When you decide to do E-Currencies the easygoing way, the benefits are greater in a shorter period, without truly having a learning period because you are learning it straight from somebody that is already making income for themselves.

Remember the natural law that reminds us that the shortest way between two distances is a straight line.

I’ve writen detailed reviews for the best courses about e-currency exchange, visit my site (www.currencytrading-center.com) for the inside scoop and to get the myths revealed about E currency Exchange

Title: Forex Is The Best and More Lucrative Home Based Business?

Word Count:
553

Summary:
With $1,5 trillion exchanged everyday, it is really the best opportunity in the world today. Like everything new, although the FX Trading is open to the public since 1998, it is still seen by people as difficult and for an elite of traders . They imagine that it is something they can’t do. The truth is that it is a big misconception. It is simple, has more advantages than any other business and everybody can be successful…

Keywords:
forex,trading,pips,candelsticks japanese,stocks,futures,home business,online business,foreign currencies,finance,market,easy trading,investments,commodities,funds

Article Body:
The first reason why you should trade the forex market is because it is the most lucrative home based business. Although It is not a new market, it is still unknown by non traders. It is more amazing when you know that most of the traders are not aware of the huge opportunity of the forex. The Forex or Foreign Exchange Currency Market is open to the public since 1998.
With the economic situation today and the fear of most of the people worldwide to wake up a morning and be jobless, without resources to feed their family, there is an increasing need in lucrative home based business.

On another hand, it is really difficult to find a real opportunity which will allow you to make a living from your home computer. You got to put hours of recherches and invest some hard earned money, with the fear of being involved in a scam company.
Let’ s say you found a good opportunity, and honestly, there is a lot of legitimate business you can make a lot of money if you are serious. But, is that what you really want? Most of the opportunities on the web today, even if you make big profits, are held by someone else. That mean that when you participate in those turnkey businesses, you do not have any control.

It is really amazing to see all these people who want freedom, more time with their family and friends, more time for their favorite hobbies… and the most important, fire their boss, going the same way.
To understand, they want to be free, they found that on the web you can make money and be free, all that they need, but if you look at the situation, 80% of these people fired their boss, to meet another boss on the Internet! A virtual boss, who is making them work, but they don’t feel it, because they have the impression to be free, they work wherever and whenever they want, and better than all that, they have never seen their boss.
People make money in these programs, they may win $5000 a month or more but actually, the owner of the program is making tons of money.

There is a way to make much more money on the web that you think now, and Internet seekers and people in general should discover trading, specially the forex market. While the word market could intimidate some people, believe it, no one must be afraid about that, and think about the difficult stock market, or commodities, futures…
The forex market which is also called FX is not really as difficult as it seems.
There is not that much technical vocabulary to learn, and the risk is considerably low, if you compare to the other markets like the stock for instance.

The fact that home businesses seekers should really consider is that you can choose at which time to trade, and where you want to trade; you need only an Internet connection, and that’s it, you are ready to tape in the biggest market of the world with $1,5 trillion activity everyday in the same way banks and large corporation do it and it is not difficult at all. Rather it is simple, and the methods already tested by serious traders will help you in your adventure.

Title: Should You Invest In Mutual Funds Or Stocks?

Word Count:
726

Summary:
With so many options out there for the individual investor, it is sometimes difficult to determine that investments are right for you. The key to having a long-term, stable and profitable portfolio is to diversify your investments. For many investors the process of diversification includes investing in both mutual funds and stocks. The best course is to learn all you can about both types of investments and find your ideal balance between the two.

Mutual funds are open-end …

Keywords:
mutual funds,best mutual funds,vanguard mutual funds,fidelity mutual funds,investing in mutual funds

Article Body:
With so many options out there for the individual investor, it is sometimes difficult to determine that investments are right for you. The key to having a long-term, stable and profitable portfolio is to diversify your investments. For many investors the process of diversification includes investing in both mutual funds and stocks. The best course is to learn all you can about both types of investments and find your ideal balance between the two.

Mutual funds are open-end funds that are not listed for trading on a stock exchange. They are created by companies who use their capital to invest in other companies. Mutual funds will sell their own new shares to investors. Capitalization is not fixed and normally shares are issued as people want them.

1. Mutual funds have great characteristics for investors

Mutual funds are professionally managed. The mutual funds employ professional managers to operate all investing. These professional managers bring with them many years of experience. They are experts in selecting and evaluating investments for the fund. The managers make all of the buying decisions and selling decisions that relieves the individual investors from that responsibility.

2. Mutual Funds Are Diversified

Another advantage of mutual funds is that most of their portfolios are highly diversified. This means that the mutual fund is invested in a wide variety of stocks. The advantage of diversification is that if a few stocks drop in price the entire fund won (TM)t be dramatically affected. Diversification occurs by investing in many different companies. It can also be accomplished by investing in several different industries. The advantage of diversifying through mutual funds is that the funds can reach a wider diversification than can be reached by individual investors.

3. There are thousands of mutual funds to choose from

Depending on your preferences, you can choose to invest with a mutual fund that covers the whole market or with a fund that focuses on one or two industries. There are even mutual funds available that invest only in foreign markets. Mutual funds can be very convenient for the investor since the fund does all the record keeping. Your mutual fund will provide you with all the forms you need to file your taxes. Additionally, many may offer perks such as the ability to write checks against the money market fund.

4. Stocks Have Greater Returns (Potentially)

On the other hand, purchasing individual stocks has attractive features as well. After the brokerage fee is paid, there is no ongoing fee associate with owning individual stocks. This is in contrast to mutual funds that charge a participation fee. Mutual fund fees can totally negate the mutual fund return that you are expecting.

With investing in individual stocks, an investor has the ability to be very flexible with their investing and move with market if they so desire. Mutual funds are very stable but this also keeps them slow. Individual stock investments can be traded quickly if need be, and purchased just as quickly if the investor finds an undervalued stock.

5. More Control

With individual stock investing, an investor has a greater level of control over their investing. Although brokerage firms are involved there is the opportunity to be more hands on with the stock purchases. This level of involvement is impossible with mutual funds. Many investors like to know exactly where their money is going and this can be hard with a mutual fund that holds shares in 50 or more companies. Investing in individual stocks allows the investor to have a larger relationship with the company they are investing in. This can create a sense of comfort for the investor because they know where their money is being used. They can track the activities of the company they have invested in and feel like a true part of that company.

6. The Verdict

Investing a mixture of mutual funds and individual stocks seems to the best method for a majority of investors. Those who do not want to take the time to research their stocks and would rather let an expert handle things are more comfortable with mutual funds. On the other end of the spectrum, those who want a greater level of participation with their investments will find individual stock investing attractive. As part of a long-term diversification strategy it may be best to look into both in the ratio that you are comfortable with.

Title: Benefits Of Using Forex Software

Word Count:
561

Summary:
As the Internet grows in popularity, more and more individuals are learning about the benefits of trading currencies on the Forex market. In recent years, Forex trading has become known as a great way of investing money. But if you do decide that you want part of the action, you should do some quick research on the Forex software packages on the market. They can help you trade easily and from the comfort of your home and office.

One great benefit about Forex software is…

Keywords:
forex software

Article Body:
As the Internet grows in popularity, more and more individuals are learning about the benefits of trading currencies on the Forex market. In recent years, Forex trading has become known as a great way of investing money. But if you do decide that you want part of the action, you should do some quick research on the Forex software packages on the market. They can help you trade easily and from the comfort of your home and office.

One great benefit about Forex software is that it can perform many tasks for you, and keep you up-to-date on the values of the currencies you are trading. If you had to do these tasks manually, you would have to spend many hours fiddling with newspaper reports, charts and graphs. But with the push of a button, you can know how and when to trade. With a general knowledge of where the currency is heading, you can allow your trades to run, or stop them as your position reverses.

But not only does Forex trading software allow you to manage your funds, it also provides you with the opportunity to withdraw or deposit money into your Forex account when you need to. This means you can leave your money in an interest bearing account until you are ready to trade. This way, you earn interest on your money and avoid having extra money sitting idly in your trading account.

Also if you want you can set up the Forex software so when the currency drops to a certain level or has reached a specified value, then it will automatically sell it for you. By doing this you are not only minimizing your risks, but it also means that you do not need to keep a constant watch and control over your profits.

However the best way of ensuring the software you are buying is right for your needs is to test it before you start investing your hard earn money. A good Forex software package will allow you to practice with the software using play money while you learn. Then once you are comfortable with trading, you can deposit some of your money into a trading account and start trading. It is best if you practice as much as possible before. This way you will be ready for any losses that may occur in the beginning. From the start it is best if you only invest small amounts of money when trading until you feel more confident with the software.

Forex software comes either as a desktop or Internet based package. The Internet software systems have several advantages over the desktop versions. One of these advantages is that you
do not need to deal with maintenance issues. The software seller often looks after these technical goings-on. Security is another issue you don’t have to concern yourself with.

The seller will already have in place more security measures than you can afford on a desktop version. The systems offer data encryption on a secure server and will therefore protect you for hackers and thieves. Plus, Internet based systems offer you more convenience than a desktop model. You can check your account no matter where you are in the world. All you need to do is key in your login and password information. You can then view your currency trading account in a secured environment.

Title: Forex 101 – Foreign Currency Exchange Trading

Word Count:
536

Summary:
Nearly everyone enjoys making money. More often than not, the more money we make the better we feel and the more confidence we have. These are good things as long as making money doesn’t get too emotional. If investing is treated like a business and most of the emotion is left behind, many people can do well with their investments.

Forex Trading, also known as FX Trading is another way you can make money in a trading environment. Everyone has heard of the New York St…

Keywords:
forex trading, forex brokers, foreign currency trading, fx currency trading

Article Body:
Nearly everyone enjoys making money. More often than not, the more money we make the better we feel and the more confidence we have. These are good things as long as making money doesn’t get too emotional. If investing is treated like a business and most of the emotion is left behind, many people can do well with their investments.

Forex Trading, also known as FX Trading is another way you can make money in a trading environment. Everyone has heard of the New York Stock Exchange (NYSE) or the Chicago Mercantile Exchange (CME), each featuring either stock trading or options and futures trading. Forex Trading involves the buying and selling of currencies instead of stocks, bonds, options or futures. It is also different in that there is no physical floor or exchange area like there is in New York or Chicago where the above mentioned exchanges are located. The Foreign Exchange Market (FOREX) can only be accessed by phone or by electronic network. The advantage of not having a central location, but instead having an electronic network, is that the Forex can operate 24 hours a day. In fact, it is open for trading all day and night during work days, roughly 5 days a week.

Since the Spot Forex Market is the largest financial market in the world, it is also the most liquid. This means it is easy to get in and out of a position whenever you want. The more liquid a market is, the easier it is to initiate and fulfill a transaction. Of course, the objective when trading in any market is to buy low and sell high. With Online Forex Trading, a person buys and sells the currencies of other nations. If one believes the U.S. Dollar will strengthen against the EURO, for instance, they can buy Dollars now and sell them later at a profit. Currencies are traded in currency pairs and each currency is represented by a 3 letter code. Therefore, a rate, which consists of a pair of currency codes, will end up being a 6 letter code. For instance, USD/GBP is considered a currency pair with each containing three letters for a total of 6 in a rate.

Your objective as a Forex trader is to make sure you can correctly identify the current trend in the currencies you are trading and to make sure you are buying a currency which is appreciating in value and selling a currency which is depreciating. Slightly different than stock trading, you will utilize special software programs which allow you to participate in Online Forex Trading. You can also participate in Forex Trading Education at many Forex Trading company websites, and some allow you to test your Forex Trading Strategy in a “practice mode” before you actually use your own money.

Forex or FX Currency Trading can be an exciting alternative to the stock, bond, option or precious metals markets. To some it is a simpler way to trade and profit. To others it is a welcome break from disappointing corporate news that can drive a stock down dramatically in seconds. Whatever your reasons, Forex Trading may be just the break you need from other investments you may be tiring of.

Title: Finding The Most Effective Forex Trading System

Word Count:
516

Summary:
The Forex trading system comes in many different guises ranging from the genuinely useful to the appallingly useless. As well as the genuine but still profitless systems that exists there are also the equally common scams from people trying to earn money for providing no valuable service. Traders who are interested in finding a profitable system will have to do their homework.

Systems are only as valuable as their results. Traders should never purchase any system or softwa…

Keywords:
Forex Trading System

Article Body:
The Forex trading system comes in many different guises ranging from the genuinely useful to the appallingly useless. As well as the genuine but still profitless systems that exists there are also the equally common scams from people trying to earn money for providing no valuable service. Traders who are interested in finding a profitable system will have to do their homework.

Systems are only as valuable as their results. Traders should never purchase any system or software, for that matter, that doesn’t show previous results or offer a reasonable trial period to paper trade the results. Almost all genuine systems will provide some sort of credentials about the service on offer because they want to persuade traders to purchase from them. Check the website of the system in question for historical results.

As well as looking at the results themselves traders should pay particular attention to the validity of the results. By checking some of the results against the criteria of the system it is possible to verify the selections easily and quickly. In the long run, this can save a lot of heartache. A failed system won’t necessarily lose an investor the money they spend on the system itself. Any money invested on the back of a bad system is also lost money.

A Forex trading system should give some idea as to how the selections are determined. While some secrecy is obviously required to ensure the creator retains the integrity of their system, there should be some information pertaining to the selection criteria used. An astute trader will look at this information and either be able to form their own decision on whether it sounds like a viable system or at least research the theories. It is unlikely that any system is so unique that no supporting evidence can be found.

Buyers should never rely on the testimonials that appear on websites. It doesn’t take much to write these testimonials and without some kind of verification this means there is absolutely no guarantee they weren’t written by the webmaster themselves.

As well as the Forex trading system, there are also software packages and forecasts available. The same principles apply to these as to the trading systems. The most sensible thing a trader can do before taking the plunge and paying hundreds of dollars for any system or software package is to conduct thorough research into the theories, the selections, the results and the service itself.

If somebody has already been stung by a particular scam then there is likely to be information all over the Internet. Similarly, a proven Forex trading system is also likely to have generated some interest from numerous parties.

The Forex Trader Education website has its own software called VantagePoint. VantagePoint has fully documented results and also offers free forecasts to anyone interested in purchasing the software. This gives traders the opportunity to conduct their research and to even paper trade the forecast and determine the effectiveness of the software. Visit http://www.forextradereducation.com for more information and to receive your free Forex forecasts.

Title: Forex Versus Futures Market – What Is The Difference

Word Count:
518

Summary:
Today’s market takes root in the agriculture markets of the 19th century, when farmers began to sell contracts to deliver their crops at a later date. This was done to anticipate the needs of the market and stabilize supply and demand during poor crop seasons. Like goods and services, the contracts themselves soon became seen as valuable. A grocery store chain, for example, might want to bid on such a contract to ensure that they, and not their competitors, have fresh strawbe…

Keywords:
capital forex market,forex,futures,options,stock market,forex market trading

Article Body:
Today’s market takes root in the agriculture markets of the 19th century, when farmers began to sell contracts to deliver their crops at a later date. This was done to anticipate the needs of the market and stabilize supply and demand during poor crop seasons. Like goods and services, the contracts themselves soon became seen as valuable. A grocery store chain, for example, might want to bid on such a contract to ensure that they, and not their competitors, have fresh strawberries during the winter.

1. The Futures Market

The current futures market, of course, includes far more than just foods! It is a market for all sorts of commodities including manufactured goods, agricultural products, and financial instruments such as currencies and treasury bonds. A futures contract states what price will be paid for a product at a specified delivery date.

2. Playing The Futures Market

When an investor plays the futures market, the actual goods are not important and there is no expectation of a real delivery. After all, locusts or the elements of nature could destroy the crop. As such, the value of the contract itself changes daily according to the market value of the commodity.

3. How Transactions Work

A futures contract has a buyer and seller. The contract specifies the buying price, a quantity of goods, and a delivery date. You can never lose money on a futures trade – you will never pay more than the initial amount of the contract. By locking in prices at a fixed rate, you ensure that you will still get that price years from now, protecting against price raises. On the other side of the coin, if the value of the commodity drops, the producer will make money.

4. How Is Profit Made?

In the end, investors are hoping to profit from the daily fluctuations of the market. They buy long term contracts and hope the market will rise the value of the commodities. This way, they can buy low and sell high. Alternatively, those wishing to sell their goods can offer short term contracts if they expect the value of those items to go down.

5. The FOREX Market

FOREX is trading in currencies. It is therefore very liquid in nature – you will never get stuck with two hundred boxes of strawberries that have to be sold within 2 weeks or they will go bad and youll lose a lot of money. Far, far less slippage occurs in the FOREX market compared with the futures market. Slippage is a term that refers to you losing money.

6. Always Open

While most futures exchanges can happen 7 hours in any given day, FOREX is open 24 hours a day for trading. This makes futures far more liquid, able to take advantage of trading opportunities as they arise.

7. No Commission

Traders pay a fee for each transaction they enter into instead of having to pay commissions to brokers. There is a very high volume of trading FOREX transactions are almost instantly executed. This minimizes slippage and increases price certainty. Brokers in the futures market often quote prices reflecting the last trade – not necessarily the price of your trade.