Title: Stock Market Strategies For Investors

Word Count:
524

Summary:
Investors can use a number of strategies to invest in the stock market. To begin with, they need to analyze market trends, learn about the market in which the companies they are interested in operate, and purchase shares at an appropriate time.

Usually, good companies announce their profits, or their status in the market, at certain times of the year. The prices of their shares tend to increase before such announcements are made. Therefore, investors need to watch out for …

Keywords:
stocks, shares, market, strategy, invest, portfolio, funds, mutual, broker, value, cost, charge

Article Body:
Investors can use a number of strategies to invest in the stock market. To begin with, they need to analyze market trends, learn about the market in which the companies they are interested in operate, and purchase shares at an appropriate time.

Usually, good companies announce their profits, or their status in the market, at certain times of the year. The prices of their shares tend to increase before such announcements are made. Therefore, investors need to watch out for these periods, and not purchase shares at this time. In other words, it is important to wait for the right ‘Market Timing’ for trading in shares. Some basic stock market strategies for investors are listed below: –

Make a well-planned investment portfolio that satisfies a particular level of risk tolerance.

Keep reviewing and updating the investment portfolio to keep up with market trends.

The technical analysis of stocks helps in gaining better knowledge about a company: its profits, its market capitalization, and its future growth prospects. Equally important is to be able to understand and apply the quantitative measures of the stock market.

Since investing in the stock market is complex, inexperienced investors should always seek help from financial advisors and stock market analysts before committing themselves and their money.

The motto being “Buy Low and Sell High”, always buy shares when their prices are low, and sell them when the price goes up.

Invest intelligently. A sharp sense of the market, along with a good knowledge of the company you plan to invest in, helps in making better investment decisions. Investors should thoroughly research the market in which the chosen company operates.

Long-term vision and planning is vital. Investors should evaluate their capital strength, and set their tolerance limits, before investing in a company. This means, knowing when to hold on to the shares, and when to quit.

It is generally advised to devise and apply an exit strategy cautiously. Investors can make their exit when they have gained good returns over a certain period.

The returns gained from selling the shares of a company can be re-invested in some other, promising higher profits.

Investors should also set their tolerance limit for the amount of loss that they are ready to bear when the market is down. They can exit when their losses approach or cross this predetermined limit. This strategy of limiting the amount of loss an investor can withstand is commonly known as “Stop Loss Limit”.

Another strategy investors can follow is to ‘Buy and Change Frequently’. Market research shows that every company has some limit on the expected gains from their shares. Investors can therefore move out of a stock when they have achieved maximum returns from shares accordingly. It is important to invest in a variety of companies to withstand the losses of a few.

The objective of any investment is to maximize returns while minimizing risks. Diversification helps in maximizing returns from investments in stocks and bonds by managing risks better. Investors ought to distribute their investments across several categories like foreign securities and mutual funds to be on the safe side, and in the process enjoy good returns.

Title: Stock Market Investments Or Gambling? What Is The Difference

Word Count:
525

Summary:
The art of speculating in one form or another has been around forever.

When it comes to speculating, there are always three things that you can be sure of – there will be always people willing to speculate, there will always be people who will love to play the game with the first group. Lastly history can be counted on to repeat itself.

Sure the object of speculation may change, the rules may change and the technology may change. But in the end it is always the same.

Keywords:
invest , investment , stocks , bonds , gambling ,alchoholism , futures , wealth , addictions

Article Body:
The art of speculating in one form or another has been around forever.

When it comes to speculating, there are always three things that you can be sure of – there will be always people willing to speculate, there will always be people who will love to play the game with the first group. Lastly history can be counted on to repeat itself.

Sure the object of speculation may change, the rules may change and the technology may change. But in the end it is always the same.

However what has happened before is 100 %sure to happen again. You can count on it. Everyone thinks always that they are so original when it always the same story again and again. Whether it is tulip bulbs, precious metals, mutual funds, lottery tickets or penny stocks human nature is human nature.

Ignorance, greed, fear and hope determine how people react and thus how prices move and markets behave. People have speculated on everything at one time or another,

For the last hindered years and certainly into the foreseeable future speculating on stock prices offers liquidity combined with legitimacy and purpose. Stock speculation, trading and investing have become an essential and vital parts of both our economy and our lives.

Trading is just another word for speculating and investing is nothing more than speculating, except that it supposedly encompasses a longer time horizon and for some odd reason implies less risk. Speculators speculate, trader’s trade and investors invest to make money. Traders buy stock or any other object of speculation because they anticipate a price appreciation.

Speculation and gambling are similar, with a few important distinctions. One difference is the perception, sometimes true, that successful speculators profit due to their skill or an unseen advantage, while gamblers prosper due to chance or luck.

Remember though that it may not happen to you but in the end given enough time or chances the odds will always prevail. The casinos in Atlantic City and Las Vegas were not built with winner’s money.

Another distinction is that gambling in most forms has been illegal (at least until government got involved and changed the rules in their favor) while speculation plays an essential role in our markets and thus our economy.

These important distinctions make speculating which indeed is what our investment industry purveys as an accepted occupation – indeed one with one prestige and gamblers not being accepted in the same light.

Whether a gambler, a trader or a speculator, in all cases the attraction is the same – the chance to make a lot of money in a hurry. It is the immediate gratification of the win that makes these games irresistible – an opiate of sorts.

Indeed problem gamblers have been compared to alcoholics in needing that rush which gives them such pleasure and serves amazingly to release endorphins to relax their troubled minds.

On top of that the unpredictability of the wins serves to even reinforce this addictive behavior.

Not far off of the methods of B.F. Skinner and the rats of operant conditioning fame.

Indeed some people will tell you that “it will almost always end with crying!”

Title: Stock Market Investment Advice That The Gurus Teach

Word Count:
434

Summary:
There are many well known investment gurus out there – Joel Greenbalt, Warren Buffett, and Dr. Mark Faber are just a few and here is some of that stock market investment advice that the Gurus teach.

The number one stock market investment advice that the Gurus teach is to find the hidden jewel. In other words don’t just buy that well known business name instead do your research and check out those tiny out of the way rather mundane companies that are the hidden jewels.

J…

Keywords:

Article Body:
There are many well known investment gurus out there – Joel Greenbalt, Warren Buffett, and Dr. Mark Faber are just a few and here is some of that stock market investment advice that the Gurus teach.

The number one stock market investment advice that the Gurus teach is to find the hidden jewel. In other words don’t just buy that well known business name instead do your research and check out those tiny out of the way rather mundane companies that are the hidden jewels.

Just take a look at Buffett’s investment in American Express when when it was near bankrupt. It looked like they’d never make it back to the surface and yet Buffett purchased these stocks and made a fortune following the stock market investment advice that the Gurus teach.

The second piece of stock market investment advice that the Gurus teach is about spin offs. A company will spin off a subsidiary into it’s own stand alone company. It may do this for a host of reasons including a hidden jewel that they want to expose. Spin offs do well in the first three years throwing 10% or higher returns and yet they are too often overlooked by investors. Check out all the options that the spin off provides you and the see what stock market investment advice that the Gurus teach.

Another popular stock market investment advice that the Gurus teach is all about the merge although the opportunities aren’t are not seen as much as in the past because Graham and Buffett made the strategy famous and now it’s no longer a secret in the world of investments.

Bankruptcy is another stock market investment advice that the Gurus teach regularly. When a company sits bankrupt there are all kinds of stock holders just dying to sell off their stocks so there is the potential for huge profits but the stock market investment advice that the Gurus teach also notes that you need to make sure you choose a bankrupt company that can make it back from the bowels of extinction or you’ll loose your money.

There is plenty of stock market investment advice that the gurus teach. This is just the tip of the iceberg and with so much knowledge to share don’t miss out on their teachings. Shop around for a variety of stock market investment advice that the Gurus teach online. Many sites post it to help you.

Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)

Title: Stock market guide

Word Count:
589

Summary:
Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals.

Keywords:
stocks,history,finance,wall

Article Body:
Stock market is an inquisitive place for many. It is because the place has given birth to many millionaires and is also responsible for turning millionaires to locals. Thus the bulls and bears have always been charismatic. Now millions of people invest in the stock market to make good money. The aura of the place is such that it is swarming with people any hour of the day and any season of the year. But only few know that how the stock market came into existence or what actually are its origins.

A short encounter with the past

The oldest stock certificate was issued in favor of a Dutch company in 1606. The purpose of this company was to benefit from the spice trade between India and the Far East. During the 18th and the 19th centuries the trade of spices drifted to England when Napoleon reigned over the place. With the development of United States of America as a colony to British and Alexander Hamilton (the first US secretary of the Treasury) flourished the American Stock Exchange. Hamilton played a crucial role in encouraging the trading in the Wall Street and Broad Street in New York. The New York Stock and Exchange Board now popularly known as the New York Stock Exchange was organized by the traders of New York in 1817 when trade and commerce bloomed there.

A precise survey of the Western stock market

• The Wall Street- a place where the whole of 18th century trade and commerce took place, Wall Street is a recognized place across the globe. The street was termed as Wall Street since it ran alongside a wall that was taken as the northern boundary of New Amsterdam in 17th century.

The Wall Street is known for the J.P. Morgan’s million dollar merger that created US Steel Corporation, the ruinous crisis that resulted in Great Depression and the “Black Monday” of 1987.

• The NYSE or the New York Stock Exchange is perhaps the foremost and so the oldest stock exchange in United States that is believed to be born in 1792. The significant aspects related to NYSE include the Buttonwood Agreement when 24 stockbrokers and traders of New York signed this accord and established the New York Stock Exchange and Securities Board which is now recognized as the NYSE; the considerable swings that the NYSE saw during the 20th and 21st century; the hitting of the 100 and later even 1000 mark by the Dow around 1971 and the mark of 10,000 that the Dow scaled in 1999.

• NASDAQ is the National Association of Securities Dealers Automated Questions. It is an apparent or virtual stock market where all trading is done through the electronic media. NASDAQ, the global and the largest electronic stock market today was first established in 1971 in United States at the time when computers were not as developed as they are today and it was very difficult to compute. The main exchange of NASDAQ is in United Sates while its branches can be found in Canada and Japan and it is also linked to markets of Hong Kong and Europe. NASDAQ functions by purchasing and selling the over- the- counter or OTC stocks.

• AMEX-was discovered in 1842. The putative father of the institution is Edward Mc Cormick (the commissioner of SEC) who endowed it with its current name. It started its journey as the New York Curb Exchange and its name is factual. The AMEX in contrast to the NYSE operates with the small and more dynamic companies some of which even make it to the NYSE board.

Title: Stock Market – What’s in a Trading Edge

Word Count:
956

Summary:
Unless you are able to develop a considerable trading edge over the other traders, you will end up losing your money, even if you are disciplined and organized. See what’s in a Trading Edge.

Keywords:
stock market, trading, investments, day trading

Article Body:
Unless you are able to develop a considerable trading edge over the other traders, you will end up losing your money, even if you are disciplined and organized. In this article, I discuss some elements that I use in my trading edge.

Fundamental Analysis

Fundamental analysis is the process of evaluating the financial condition of a company using financial reports, price/earning ratios, revenues, market share, sales and growth, etc. This type of analysis can be time consuming so instead of going through pages of financial reports, I simply look at IBD ratings.

I like to use Investor’s Business Daily (IBD found at investors.com) to get a quick overview of a stock. The IBD rating covers:

1 – Earnings Per Share (EPS) rating: tells me a stock’s average short term (recent quarters) and long term (last three years) earning growth rate. The number I see is how the company compares to all other companies. The scale runs from 1 to 99, 99 being the best.

2 – Relative Price Strength (RS) Rating: Measures a stock’s relative price change in the last 12 months in comparison to all other equities. The scale runs from 1 to 99, 99 being the best.

3 – Industry Relative Price Rating: Compares a stock’s industry price action in the last 6 months to the other 196 industries in IBD’s industry list. The scale is from A to E, A being the best.

4 – Sales + Profit Margins + ROE (Return on Equity) Rating: Crunches a firm’s sales growth rate during the last 3 quarters, before and after profit margins and return on equity into one letter. The scale is from A to E, A being the best.

5 – Accumulation/Distribution rating: Applies a formula of price and volume changes in the last 13 weeks to determine if it is being accumulated or distributed. A = heavy buying, C = Neutral, E = heavy selling.

If you like the idea of including fundamental analysis into your trading plan, consider trading only stocks that meet some minimum requirements – for example A or B, > 70, etc.

I like to use fundamental ratings for longer term trades such as the ones I plan on weekly charts. It is not really useful if you trade intraday.

Technical Analysis

Fundamental analysis is great to build a list of strong stocks, or as a way to filter out weak stocks, but that’s about it. It does not provide you with an objective method to enter and exit trades. All my trading decisions (entry, exit, and stops) are based on technical analysis.

Technical analysis is the study of prices. The price action draws patterns on charts and because human behavior can be repetitive, the price patterns can also be repetitive.

You can choose from a variety of chart types. The Japanese candlestick charts are by far the best and it is the only form you need. There are entire books dedicated to the study of candlestick patterns – if you are serious about studying candlestick charts, look at books written by Steve Nison and and Gregory L. Morris.

– Support and Resistance: The most important concept in technical analysis is Support and Resistance. It forms the foundation for every trading decision and could cover many pages but I will limit myself to simplified definitions and a couple examples:

Support level: A price level that a declining market or stock failed to penetrate
Example: the low of the previous day forms an area of support and is often used as a stop loss.

Resistance level: A price level that a rising market or stock failed to break through
Example: a prior high in an uptrend forms an area of resistance and can be used as a minimum objective to take some profits.

Some technical indicators may also provide some support and resistance, for example moving averages, in part maybe because so many traders expect it.

– Oscillators

An oscillator is a technical indicator that tells you at a glance whether a market or a stock currently trades in an “overbought” or “oversold” condition. Some traders use oscillators to forecast a change of direction. Some examples include the RSI, Stochastic Oscillator, and MACD.

There are hundreds of oscillators and technical indicators. I personally look at them to filter out some stocks if I have too many good ones to choose from. I never use them as a signal to open or close a trade.

– Public Sentiment

I look for support and resistance on the VIX (Volatility Index) daily chart to anticipate reversals.

I look at the Put/Call Ratio (5 MA and 10 MA) on the daily chart to see if traders are too bearish (MAs > 0.8) or too bullish (MAs < 0.5).

(MA = Moving Average)

– Market internals to see if the market is overbought or oversold

I look at the TRIN (5 MA and 10 MA) on the daily chart – overbought (MAs 1.2).

I look at the McClellan Oscillator – the market is overbought if it rises above +70 and oversold if drops below -70. A buy signal is generated if it falls into the oversold area (-70 to -100) and then turns up – a sell signal is generated if it rises into the overbought area (+70 to +100) and then turns down. If it goes beyond the -100/+100 levels then it may be a sign of continuation of the current trend.

– Market and Industries

I like to buy stocks from industries in a strong uptrend and short stocks from industries in a downtrend. I also consider the direction of the industry for the day (positive or negative).

Putting it all together

This article is not about teaching you how to develop an edge but hopefully it shows you that there are many different tools that can be used to improve your odds. It takes time to find a combination that fits your personality. It takes time to find what works for you.

Title: Sourcing The Secondary Market: Buying Liquidations, Overstocks And More

Word Count:
594

Summary:
It’s estimated that, by 2008, there will be $63 billion dollars in obsolete merchandise in the US market. These goods aren’t unusable; most still have a great deal of life left – and that fact presents a tremendous opportunity for online sellers. Because, while these items are no longer the latest, flashiest models available, there’s still a market for them – one with a great deal of profit potential.

Business-to-business (B2B) auction web sites provide E-Biz owners acces…

Keywords:
ecommerce,estore,auction,ebay,online store,internet,product sourcing,liquidation,wholesalers,product

Article Body:
It’s estimated that, by 2008, there will be $63 billion dollars in obsolete merchandise in the US market. These goods aren’t unusable; most still have a great deal of life left – and that fact presents a tremendous opportunity for online sellers. Because, while these items are no longer the latest, flashiest models available, there’s still a market for them – one with a great deal of profit potential.

Business-to-business (B2B) auction web sites provide E-Biz owners access to large retailers’ overstocks and excess inventory. Says Bill Angrick, CEO of bulk auction site http://Liquidation.com, “Online sellers and E-Biz owners are always in need of new product sources. With B2B auctions, you’re getting below-wholesale price points that let you compete in the marketplace.”

Performing Due Diligence
To use an auction site effectively, start by conducting market research. First, review the goods you’re interested in and gauge the price at which you can resell them. Factor in the costs related to repackaging or refurbishing the inventory, shipping costs, and any buyer’s premiums. Determine the profit margin you need to make; and from there, work backwards to figure out the maximum amount you can bid on a lot.

Signs of a Good Site
Don’t stop at researching the products – you also need to scrutinize the sites you’re sourcing from. Ask lots of questions:

• Are they reputable? The same things you want in a traditional business relationship apply to an online marketplace: do they have a demonstrated relationship with their product sources? Can you find a physical location for the business that supports them or place a direct call to reach their customer service?

• Do they have efficient shipping? You should be able to obtain shipping quotes, so you can figure out the total cost of goods before placing your bid. Some sites can ship your products from multiple geographic locations, a service which helps reduce your freight costs.

• Do they have a secure settlement and transaction support service? Look for a site that can handle multiple forms of payment, and make sure they won’t release your payment to the seller until after you’ve received and examined the goods.

• Do they provide in-depth product information and history? You want to know where your product is from, how many SKUs, the total quantity, the condition category (shelf pulls, returns, salvage, etc.), and any technical information – the more details, the better.

• Do they offer proxy bidding? Some sites have a system in place that allows you to set your maximum bid, and then automatically bids for you up to that amount. Proxy bidding can save you time and help you stay disciplined in what you’re willing to pay for your goods.

• Do they give you the ability to conduct complete product research? Can you search for items by keyword, category, quantity, condition, geographic location, etc? Do they have automated communications to keep you apprised of lots that meet your purchase criteria?

• Do they give you quick access to your buys? While you want enough time to perform due diligence, you also want to have speedy access to your goods so you can move them forward to resale.

As long as you’re doing your homework and making informed buying decisions, the online B2B marketplace gives you a great tool for sourcing inventory. Says Angrick, “If you’ve got a portal to all this product, at below-wholesale costs, that you can remarket online, then you have a powerful resource for growing your E-Biz and supplementing your regular product line-up.”

Title: Six Keys to Find Momentum Stocks

Word Count:
634

Summary:
Momentum stock trading is a proven method for accumulating great wealth in the stock market. There are six distinct characteristics one must look for in a potential stock in order to be successful.

Keywords:
online stock trading, stock trading, option trading, stock market, option trader

Article Body:
Copyright 2006 Billy Williams

Momentum stock trading has been around for awhile and has been proven to a sound method for creating incredible wealth in the stock market. During the 1990s, for example, Clear Channel Communications went up 5,615%, Emulex rose 6,412%, Dell Computer went up 10,198%, Activision went up 13,819%, and Semtech rose 15,231%.

It is not uncommon to find stocks that accelerate in price that go on to make 100% to 300% returns in less than year or even in a few months. However, for beginning investors it can be a confusing and frustrating experience to find such stocks.

While many momentum stock traders all have different criteria when searching out tomorrow’s big winners there are typically six key steps when screening for a big winner.

They are:

1) Accelerating earnings or EPS (earnings per share). 2) Annual earnings up 25% or more in the last 3 years. 3) Minimum volume of 100,000 or at least increasing volume. 4) A 17% ROE (return on equity) or better. 5) Has leadership role in the market place. 6) Price at an all-time high.

Potential stocks for momentum trading should show strong fundamentals on there balance sheet and show that they are growing at an accelerated rate. By selecting stocks that are showing high EPS ratings and accelerating rates of growth over previous quarters you can be sure that you have a company that is growing out an above average rate. Wall Street loves earnings that are growing quickly and a company that does will be rewarded with institutional sponsorship by the big funds further causing share value to increase.

Momentum stocks also have shown that they are strong players in their market and prove there value by exhibiting strong annual earnings. Less than a 25% annual increase in annual earnings will not stimulate interest by the big mutual funds or investors resulting in a stock whose price will likely remain stagnant or increase in value at too slow a pace for momentum investing.

Stocks for consideration should have a daily average of 100,000 shares or at least see there average daily volume increase as the value of the stock rises. Any volume less than this shows little interest by the investment community and you could find yourself having trouble with liquidity in the stock if you need to sell and get out.

A potential stock should show a ROE of 17% or better. ROE is the net income divided by the number of shares held by investors. It shows the responsible return on capital by investors and the higher this ratio is the better for investors. In my opinion, this is one of the most important attributes for any stock investment.

Momentum stocks are also leaders in the market. When the major indices have declines true stock leaders exhibit strength by holding or even exceeding there highs or near there highs. When the major indices rally these leaders typically lead the rally and go on to make new highs and outpace the market.

Momentum stocks should also be traded at there all time highs. Buy trading at these levels at key technical entry points you are likely to ride the trend as the stock increases in share price. This type of characteristic increase your chances for profitability because a up trend in place is six times more likely to stay in place so you have the odds on your side.

You can stock for scans like these at Yahoo Financial or MSN Financial for free. Begin keeping a list of potential candidates and then track there performance. It may take a little practice but with time you will be able to spot the stocks that go on to make the big moves of 100% or more.

As with all types of investing keep in mind to cut your losers quickly and ride your winners with a good money management plan.

Good luck and good trading.

Title: Choosing a Forex Third Party Signal Provider

Word Count:
716

Summary:
When choosing a third party signal provider for your forex account you need to be carefull. Here are a few tips and things to look for when making your decision.

Keywords:
forex, fx, trading, third party signal, autotrading, trading systems, automated trading

Article Body:
With the growing popularity and easy access to the foreign exchange (ForEx) market, more and more people are drawn to it as their financial vehicle of choice. Along with this popularity come all the extras. This includes all kinds of software, trading systems for sale, books, videos, and third party signal party providers. Today I’m going to touch on a few points when seeking out a third party forex signal provider.

Before we get into choosing a provider we need to have a good understanding of what a third party signal provider is. A signal provider is a trader or analyst that generates trades that in turn get placed on your account. You can have several signal providers trading your forex account or just one.

Like anything else, all third party signal providers are not created equal. At first glance a trader may look like a home run. That same trader may well end up completely torpedoing your entire account in one afternoon. To help make sure this doesn’t happen we’ll set down a few guidelines. These guidelines will give us something to look for when choosing our third party signal provider.

1. The first thing I look at is weather the trader is a winner or a loser. This may seem obvious to nearly everyone, but I often see losing signal providers with 50-100 people trading their signals.

2. The next thing I look at is how long they have been a winner. If a trader has been winning for a week that means nothing to me. I recommend that you don’t trade any signal provider with less than a few months of results to show you. Any one can place a few good trades one week and get lucky. If you are going to be trading this trader’s signals they need to be established.

3. Look at the max draw down. This is the largest peak to trough draw down in equity that the trader has historically had. Some traders refuse to take a loss. This causes them to hold on to losing trades forever or until they turn to a winner. Turning a loser into a winner sounds great, but it will eat up a huge chunk of margin and may never turn around. If it doesn’t turn in your direction, you will have your entire account destroyed by a trader that could have taken a 30 pip loss but held on until it was an 800 pip loss.

4. The first three are easy to look at. They will be displayed right on the main screen of signal providers to choose from. Once you get a few signal providers you are thinking of using, its time to dive a bit deeper into their history.

a. Look at their actual trades. Do they have a good win rate because they have opened a ton of trades all at the same time on the same currency pair? They may have 20 winners in a row. This looks great, but if you look a bit deeper you will see that its really only 1 winning trade places 20 times. Not as impressive is it?
b. Look at their draw down on individual trades. Do they let a trade go 300 pips against them and then close it out when it hits 5 pips of profit? This is a trader who lets their losses run out of control and cuts their winning trades short. It’s not a trader that you want in control of your money.
c. Do they add to losing positions? A trader who constantly adds to losing positions hoping it will turn for them is not someone you want trading your account.

5. Choose a signal provider that suits you. Some traders may provide larger returns over time, but take bigger risks leading to bigger draw downs. This might be OK with you. If you are more conservative and cannot stomach large drops in equity you probably should choose a more conservative trader.

These are just a few things to look for when choosing a third party signal provider to trade your forex account. You should always trade a demo account before opening a live account with real money. Remember it’s your account. In the end you choose the signal providers, and you are responsible for what happens.

Title: Basic Introduction To Forex Trading

Word Count:
692

Summary:
An introduction to the basic terms, definitions and concepts of forex trading.

Keywords:
Forex, forex trading, FOREX market, foreign exchange market, foreign exchange market brokers

Article Body:
If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies. A few years ago, foreign exchange trading was mostly limited to large banks and institutional traders however; today technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade.

The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily transactions involve trading of the major currencies.

Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should know that no dividends are paid on currencies.

If you think one currency will appreciate against another, you may exchange that second currency for the first one and be able to stay in it. In case everything goes as you plan it, eventually you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it.

Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. FOREX is a necessary part of the world wide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts.

Therefore, it is reasonable for you to believe that the FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution.

Price movements on the FOREX market are very smooth and without the gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is somewhere around $1.2 trillion, so a new investor can enter and exit positions without any problems.

The fact is that the FOREX market never stops, even on September 11, 2001 you could still get your hands on two-side quotes on currencies. The currency market is the largest and oldest financial market in the world. It is also called the foreign exchange market, FX market for short. It is the biggest and most liquid market in the world, and it is traded mostly through the 24 hour-a-day inter-bank currency market.

When you compare them, you will see that the currency futures market is only one per cent as big. Unlike the futures and stock markets, trading currencies is not centered on an exchange. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S. it is truly a full circle trading game.

In the past, the forex inter-bank market was not available to small speculators because of the large minimum transaction sizes and strict financial requirements.

Banks, major currency dealers and sometimes even very large speculator were the principal dealers. Only they were able to take advantage of the currency market’s fantastic liquidity and strong trending nature of many of the world’s primary currency exchange rates.

Today, foreign exchange market brokers are able to break down the larger sized inter-bank units, and offer small traders like you and me the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market.

As you can see, the foreign exchange market has come a long way. Being successful at it can be intimidating and difficult when you are new to the game. So if you want to step into this market, first thing you do is get the right knowledge and educate yourself until you feel ready to jump in.

Title: Forex Training For You: The Cost

Word Count:
578

Summary:
The largest financial trading market in the world. Open 24 hours a day, seven days a week. Two trillion dollars on the line every day. And it’s all trade accessible from your personal computer.

Foreign exchange trading, often referred to as Forex trading, is potentially the key to monetary success in an open market. By trading foreign currency on an inter-bank, inter-dealer market, traders simply make money buying and selling any number of worldwide monies. But Forex train…

Keywords:
forex, for ex, foreign exchange,stock,stock market,money,bonds,cash,currency

Article Body:
The largest financial trading market in the world. Open 24 hours a day, seven days a week. Two trillion dollars on the line every day. And it’s all trade accessible from your personal computer.

Foreign exchange trading, often referred to as Forex trading, is potentially the key to monetary success in an open market. By trading foreign currency on an inter-bank, inter-dealer market, traders simply make money buying and selling any number of worldwide monies. But Forex training is essential to successful Forex trading. It’s a simple equation with enormous implications toward success or failure in the market.

A fast-paced industry with sudden, unexpected changes happening every day, multiple times a day, this market is forever moving. With no centralized market location, forex markets are traded mostly over computer terminals around the world. A literal 24/7 market, trading begins in Sydney and opens around the globe as the day rolls on. First in Tokyo, then London and onto New York.

Truly unique as a financial market, traders get to experience the ups and downs of the economy based on real-time current events. From economic fluctuations in Tokyo to a natural disaster in Europe or the election of a new U.S. President, Forex traders feel the fluctuations. Essentially, the value of a country’s economy or monetary power is mirrored in its financial situation. Trading on the Forex is like trading other countries based on their value.

Therefore, forex training is the key to success on this ever-changing worldwide market. Knowledge, training and a broad understanding of the basics and history of this institution is invaluable.

Foreign exchange is traded in currency pairs and involves the simultaneous buying of one currency and selling of another. More than 85 percent of all the daily transactions totaling $2 trillion dollars revolve around trading seven major currencies: U.S. Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Australian Dollar and Canadian Dollar. Trading these pairs allows for the best opportunities for financial success due to the incredible, nearly perfect liquidity of this market.

In recent years, technology and proper forex training has allowed for the Forex to transform into a trading revolution for the personal investor. In the past, only large investors and corporations could set foot in the market. Today, market makers and market participants and clients join together to make this interbank market a reality. The result: an efficient, low-price way to trade on a worldwide market.

Forex training must include a thorough understanding of how the trade process works. Essentially, there are two types of accounts: standard and mini. In a standard account, 1 contract controls $100,000 of currency with a margin requirement of $1000. A mini account controls $10,000 worth of currency with a $50 margin requirement. Therefore, the standard account has a leverage of 100:1, while the mini is at 200:1.

The minimum price increment measured is called a “pip,” also known as a point. When comparing currency pairs, investors buy their base currency against another. For example, if an investor purchased the U.S. Dollar against the Euro at 1.2500 and the price increased, the amount of pips would increase by the ratio of the standard or mini account.

Major advantages to trading the market with essential Forex training include free real-time quotes and charts, no exchange fees, 24-hour liquidity and no price discrepancy between the one desired and the actual price on fills.
Trading the forex is an opportunity with great potential for monetary success if the knowledge gained is fully understood and implemented.