FAP Turbo

Make Over 90% Winning Trades Now!

Monday, January 11, 2010

A Look at the Equities Market During the Last Decade

By Jason Raburn

The stock market of the last ten years has been a wild ride. Let's take a few moments to reflect on just how crazy things have been during this time. This has been a very memorable decade as far as the financial markets are concerned.

Looking back to the beginning of the decade, things really opened up with a bang. Internet stocks were in play, and the tech boom brought about new highs in both the NASDAQ and the DJIA.

It seemed like everyone was making a fortune in the stock market. Even taxi drivers were talking about their latest buys, and the mania had gone mainstream like it never had before. People were making more money in a few months' time than they'd typically make over a matter of years.

The NASDAQ's all-time high of over 5,000 still seems surreal today, and things quickly corrected themselves. Many stocks were fractions of their previous high just months after things peaked.

To think that the indexes were as high as they were seems ludicrous in hindsight. Within the span of a few months, the markets had corrected by over 20%. Late 2001 was even worse, as the events of September 11th brought about new financial worries.

A rebuilding mode set in during the next few years, and some steady gains followed through 2006, at which point some of the indexes once again set new records. Investors were optimistic about market conditions and money was beginning to flow back in.

Not only were the equities markets thriving, but fortunes were being made through foreign exchange currency trading and commodities trading. Even vehicles like ETFs began to spring up and attracted heavy investment money.

Once again, the doom kicked back in and the markets hit their lowest points since the 1990s. Things have since rebounded a bit, but it makes you wonder where we might be headed next. Something tells me that wherever we go, it'll be a wild ride - 23212

About the Author:

Your complete guide to Learn How to Trade Options

By Cudazi Berry

How well you are familiar with options trading? It began way back in 1970's but still is a fascinating area of the modern financial world. It is based on an interesting premise that uses the performance of stocks or other financial vehicles, but doesn't always require the investor to have ownership of a security in order to reap a financial benefit from its performance.

Well, by learning how to trade options you can come to know about various techniques that are used by investors who are looking to control the risks in their portfolios. They do this by, fundamentally, purchasing the "scope" for investment, or by insuring the value of their current holdings.

Before we start to learn how to trade options. it helps to know that there are two very basic ways investors can participate in this activity. They can buy a "call option" which is a contract with a "writer" or seller who guarantees them a preset price on a specific stock or commodity for a fixed period of time. They can also purchase a "put option" which guarantees them a preset selling price on a commodity or stock that they currently own as well.

Obviously these guarantees don't come without any price, options trading market is the place where people earn money. Each stockholder must pay a premium to guarantee the contract or option. There is a universal minimum of one hundred shares that any investor must prepay. In addition to the premium, the investor must agree to the "strike price" on the option, which is the preset per share price at the time the contract expires.

While this might seem very hard to understand at the beginning, once someone begins to learn how to trade options, it becomes very simple and streamlined approach to earn money. This is because most people who are active in this particular area will take the time to study specific indexes, commodities and stocks and use this information to make some money.

Lets take a simple case, if an investor thought that over the coming weeks the value of a certain stock was going to increase |if an investor predicts that a certain stock they could purchase a call option that allowed them to lock in on the lowest per share price available. If the stock did indeed rise in value, the buyer could then make the purchase at the reduced price or they could just sell their option for a nice profit instead. They would not have to risk any actual investment, but could purchase their premium and receive the difference in values at the time of their sale. - 23212

About the Author:

A Few Tips About Forex And Where You Can Get A Currency Trading Tutorial

By Eddie Lamb

There are many aspects of the foreign exchange market that are high-speed. The movement of trading is very fast and continues on a 24-hour basis every day of the week throughout the year. The way that the market fluctuates can be very swift as well. Currency rates can rise and fall within minutes during the trading day. The amount of trading that is done each day is large and it happens quickly. The Forex market is one of the largest, active trading markets in the world. However, there is one thing about Forex that is not fast and that involves the currency trading tutorial.

Taking the time to learn Forex will pay off in the end. When you understand how Forex works and the way that markets move, you can proactively make trades that will result in greater gains. Traders have strategies, methods, different tools and indicators that much each be learned and incorporated into your daily trading.

Your role as a trader will be to speculate, or bet, on movements in the currency market. Your goal is to take advantage of fluctuations in currency exchange rates and act on them proactively to get the most gains from a trade as possible. This means that you need to be able to make educated guesses on when markets are going to rise and fall.

There are different levels of risk involved in trading on Forex. If you are beginning, you will want to learn using strategies that lower your risk as much as possible while you are learning the intricacies of trading. The more volatile the market, the more risk there is that you will suffer a loss. However, these same high risks trades can be very profitable if you know Forex trading.

You will find many websites promoting programs and methods to get rich quick with Forex. These sites are growing at an incredible rate. You will also learn that there are multiple ways to learn to successfully trade in Forex that are completely free and easy to find. Learning what to look for when you are seeking information will be the most important part of any tutorial that you get.

Websites that guarantee successful Forex trading or promise that you will make double or triple your investment within a certain amount of time are a major red flag. No system, method, or strategy is fail-safe. Information is received on an even playing field. No one knows ahead of time how the exchange will react to certain actions in the world. A reputable website is not going to make promises or create expectations that are not realistic.

Be extremely cautious when you are confronted with the "super secret" system or program that will make you a great trader within a certain length of time. Everybody learns Forex trading in their own way and time. No one can guarantee that their system or program will teach you the intricacies of Forex trading, there is just too much to learn for any one person to be arrogant enough to think they know it all. And, if they did know it all they wouldn't need to sell you the "super secret" for $49.95 when they are making mega bucks on Forex. Things that look too good to be true, usually are.

The most comprehensive currency trading tutorials you will find will be mostly free. Many successful traders have blogs where they answer questions, talk about different strategies, and share information. These guys are the real deal and know what they are talking about. They love what they do and like talking about what works. By looking for websites that are reputable and joining forums where traders are sharing information, you will learn the aspects of Forex that will help you to become successful and move through the learning curve more easily. - 23212

About the Author:

Mini Foreign Exchange Trading

By Bufen Hill

Foreign exchange trading is one of the best and the most popular way to make some amount of money with the help of World Wide Web. It is true that the market of foreign exchange is very huge. It carries the access to purchase and sell more then sixty currencies. Therefore, you have the option to make lot of money with the help of foreign exchange trading.

It is true that lot of banking organizations, financial institutions were previously involved in the industry of foreign exchange trading. Foreign exchange trading was only possible with the help of banking organizations, and financial institutions. However, the technology has changed the scenario of the world. With the help of internet it is easy for people to trade in the industry of foreign exchange. Needless to say, but foreign exchange industry is one of the largest industries of the world. In the field of foreign exchange, trillions of dollars are transacted, every single day. You will be happy to know that foreign exchange trading is possible throughout the day. The market is open to trade each and everyday, apart from weekends.

As mentioned earlier, forex currency trading is possible in pairs. Generally, most of the traders around the world would prefer to buy or sell the currency of Europe and United States of America. You should be aware about the fact that the rate of currencies keeps on changing, every moment. You should develop a vision to see the financial condition of all the currencies. According to your prediction, try to sell and purchase the international currencies.

If you are planning to enter the industry of foreign exchange trading then it is better for you to know the types of accounts that are available for foreign exchange trading. You should be aware about the fact that foreign exchange trading is possible with two different types of account. These two types of accounts are mini and regular foreign exchange trading account.

If you are beginner then it is better for you start the business of foreign exchange with the help of mini foreign exchange trading account. This will help to learn about the practical aspects as it will be offered by the brokers. At the same time, a mini foreign exchange trading account will help you to control the positions of currencies. Mini foreign exchange trading account is one of the simplest ways to learn the tactics that are essential to get success in the field of foreign exchange. Therefore, it is better for a beginner to try a mini foreign exchange trading account. Try it as it will help you to get some profits with foreign exchange trading.

As a beginner you should plan to go through some essential tips that you will help you in the field of foreign exchange trading. Below mentions tips are not the bad way to start the business online.

It is true that a beginner should prepare an optimistic ratio for profits and loss. It means that you should select a particular amount for profits. However, you should also choose the amount for loss. It is advisable that both the amount should be equivalent to each other. If you are planning to get success in the industry of forex trading then you will have to prepare a ratio for profit and loss. - 23212

About the Author:

Comparing ETFs to Mutual Funds

By Jeffrey Jackson

Because ETFs are traded on an exchange, they are subjects to brokerage fees. Mutual funds, on the contrary, when purchased from the original company, are not subject to any brokerage fees. Brokerage fees to purchase ETF shares can range from $11-20 or $3 from online discount brokerages.

When compared to mutual funds, ETFs have much lower expense ratios. Share-holder related expenses are much lower. They also hold an advantage not being required to invest cash contributions, fund cash redemptions nor maintain a cash reserve for redemptions. Their costs hover around 0.1% - 1% in comparison to mutual funds which charge 1% - 3%. As these costs compound they can become very significant in the long run. Mutual funds charge either a front or back end load and when compared to and ETF, which charges no load, an ETF holds a substantial advantage.

In the U.S., ETFs are structured in such a way that they are much more tax efficient than mutual funds. Anytime a mutual fund realizes any sort of gain not offset by a loss, it must distribute a capital gain to its members. Whether it's to fund shareholder redemptions or for the purpose of reallocating investments, anytime a mutual fund sells portfolio securities they must distribute the capital gain to its members. If members decide to invest the gains back into shares of the very same fund they are still legally obligated to pay capital gains tax.

ETFs act conversely. As any other stock they are sold on the stock market, instead of being redeemed by shareholders as is the case with mutual funds. Capital gains are only realized when a share of stock is sold or there is a change in the original index from an index trade. ETFs have grown in popularity because of their tax advantage over mutual funds.

In the U.K., ETFs have even better capital gains benefits. They can be protected from capital gains by placing them in an individual savings account or a self invested pension as they would other shares.

Trading ETFs have some of the great advantages in that they have the ability to perform and function like a traditional share of stock. Short selling, options (puts and calls) can be written against them, buying on margin, stop-loss orders, limit orders all apply as well. None of the previous applies with mutual funds.

Mutual funds, unlike ETFs, only permit their investors to purchase or sell at the end or a trading day at the fund's closing price. This rule removes any benefit to be had from a stop-loss order. Investors are able to trade ETFs during regular trading hours throughout the day because of their stock-like liquidity that comes from its continual pricing throughout the day. - 23212

About the Author: