How About ETFs?

By Ahmad Hassam

ETFs mean Exchange Traded Funds. ETFs represent an ownership stake in a basket of underlying securities. This basket can represent a specific index like the S&P 500 or the Nasdaq 100, segment of market like the small cap, large growth stocks, sector like semiconductor, energy, travel or foreign currencies like Euro, Yen.

The value of the ETF is determined by the underlying securities. It can also comprise of bonds, gold, silver or other commodities. So you may be thinking this sound like investing in a mutual fund.

The unit price of ETF changes instantaneously unlike the Mutual Funds that are priced at the end of the trading day. ETFs can be brought and sold throughout the trading day like ordinary stocks. ETFs are different from the Mutual Funds in a number of ways.

ETFs can be shorted, traded with a margin account and many trade options. ETFs can be traded using the market, limit and stop loss orders. There is no minimum for ETF purchases. So ETFs offer the diversification advantages of mutual funds and the flexibility of stocks.

One of the main advantages of ETFs is that they offer diversification. Suppose you have a bullish opinion on the oil sector. You will have to analyze dozens of companies in the oil sector and spend hours to select the one that you think is the strongest.

ETFs provide you the benefit of diversification in the same way that mutual funds do to the small retail investors. Instead of investing in a few stocks you can now invest in a particular sector just like investing in a mutual fund. You could choose the Oil Sector ETF that would give you the advantage of mimicking some oil sector index.

However, mutual funds are priced only once at the end of each trading day. The key advantage that ETFs hold over mutual funds is that they can be sold or bought at anytime of the day and their prices keep on changing in relation to the underlying assets.

Another main advantage of ETFs over mutual funds is the fees charged by each. A mutual fund charges management fees and can also charge upfront, backend or other sales loads. Expense ratios for ETFs on average are not more than 0.4%. ETF expenses are low because they are passively managed and generally follow an established index.

Currency trading has become extremely popular among the institutional investors, big companies and hedge funds. Foreign currency trading is not just for gamblers or commodity traders.

Foreign currency has become a respected asset classification. It is so hot that now you can trade Exchange Traded Funds (ETFs) on currencies. If you want to hedge or speculate that the U.S. dollar is strengthening or weakening against major foreign currencies and like the idea and concept of ETFs, now there is a pretty good inventory of product to choose from. As with any other product there are advantages and disadvantages of trading ETFs so you need to do your due diligence before making any investment decision. - 23309

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and forex. Understand The Forex Market. Learn Forex Trading!

Get A Home Get A Special Deed

By Don Burnham

Nearly everywhere, you can buy real property at an auction. In some states, there is what's called Redemption Laws; the deed or title for this type of purchase is special and has specific rules attached to it. The title you hold is not clear yet, or in simpler terms: temporary. This means that in a matter of months, the former owner from which the property has been auctioned can reclaim the property -the title is defeasible or can be defeated.

Redemption Rights: If you buy the redemption rights from the owner at the time of the auction, you will own the title and the rights and therefore be able to get clear title. A redemption purchase should also be notarized. You should consult a local attorney, because each state differs in the way in which this should be handled.

When purchasing redemption rights, you may be dealing with an owner who is under a great deal of stress and may not be aware of the amount of equity they have in their property. Though they may be able to get more for their redemption rights, the rule of thumb is to offer the owner $1,500. They may ask for more, but you should weigh the amount of equity involved.

Purchasing Property

Acquiring Property:A lot of hopeful homeowners, besides scouting out good property, usually start with getting a loan. A note is the borrowed money, say $200,000. When you use that note to purchase real estate, you are issued a mortgage or deed of trust -this is the security instrument. So when you're paying off your loan, it's called paying off your mortgage. If you, the owner and borrower can no longer pay for your mortgage, your property can be foreclosed -that is repossessed, confiscated, or taken as collateral. Or, depending on certain factors, the lender can see you in court.

The relationship between notes, deeds, mortgages, foreclosures, borrowers, etc:

3 parties are always involved in a deed of trust sale:

Trustor: otherwise known as the Borrower

Beneficiary = Person lending the money (mortgagee)

Trustee = Party handling the transaction

So, in a Deed of Trust state, the Trustee would be the person to file the foreclosure on behalf of the Beneficiary. However, in a mortgage state, the mortgagee would hire a lawyer to start the foreclosure process. The Deed of Trust and a mortgage are two separate security instruments, but they perform the same function. They both secure the property as collateral.

In the event of a foreclosure, there are usually 2 major ways to handle it:

Equity Split

Equity Split

Sometimes however, should the property and case require it, there is the "subject to" transaction which bases purchase on the existing financing of the real property. - 23309

About the Author:

Want to know more about real estate? Log on to Don Burnham's website http://www.weknowthewayback.com and know everything from redemptions and foreclosure all under one roof.

What You Should Know About Short Sale

By Don Burnham

When a Trustor can no longer pay a loan in full, what often follows is foreclosure or even bankruptcy. This is a very depressing financial situation, but it can be solved with a little known alternative: the short sale.

Short sale is usually the last step taken by the bank to recover losses from a defaulted mortgagor. When lenders agree to a short sale, it means the lender agrees to accept less than the total amount due. They are willing to forgive a certain amount of debt or deficiency. However, not all lenders will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose.

State laws vary, so consult your real estate lawyer to determine if your loan and case qualifies for a deficiency judgment or claim for a short sale.

To pursue a short sale, consult your real estate attorney if your case is eligible -certain state laws only allow specific values for a loan to qualify for a deficiency judgment in a short sale. Also, consult an accountant, the IRS may consider the unpaid debts as income, affecting your tax records. Also, the borrower is not guaranteed that the lender will not pursue them for the remaining debts beyond the debt already forgiven -an especially good reason to consult your attorney.

The tedious process of securing a short sale is sure to take a very, very long time. 21 days is the usual answer, should you ask the lender. But that's just a minimum, some cases may actually take twice that time to get approved.

Short Sale Strategy Overview

How the Short Sale works:

The Contract: The contract can be of any variety-a one page, a nine page, a board of realtors' version, or any generic type of purchase and sales contract. However, at any point in the contract in which price is mentioned, you should fill in the phrase: "See Addendum."

The Addendum- Your Most Important Tool

The basic document that contains nearly all vital info on conducting the transaction is contained in the addendum:

Info on the origin of the contract for short sale

The Date

The names and other info pertinent to the parties involved

Address

Tip: It's advised to list both the legal address and the simple address in the addendum -for the purposes of clarity and transparency.

Any good investor should be aware that a short sale is a good way to peruse quality bargain real property -a case in which a short sale is actually more financially reasonable than outright foreclosure. - 23309

About the Author:

Know about short sale an alternatives to bankruptcy or foreclosure only at Don Burnham's website http://www.weknowthewayback.com. Visit today to know all about short sale!

Play The Market with Hot Stocks

By Hannah Page

In the previous couple of years, a brand-new way of playing the stockmarket has appeared. Ignoring the standard wisdom of buy low, sell high, hot stocks employs a different method of gaining high returns on investments. Buy high and sell higher is the idea behind hot stocks. It is a strategy that is's working for many financiers. It's a hit and run approach to investing.

The good thing about purchasing stocks this way is the short turn around time. Your money isn't tied up waiting for an undervalued stock to rise. The old method is still good, but adding hot stocks trading to your investment planning will help grow your money more quickly.

Hot stocks are perfect for day traders. If you watch the market trends closely you can choose from stocks that are on the rise. The largest trick isn't to get greedy. Decide before buying the stock the maximum time you intend to hold it before selling. Whether or not the stock is still rising, sell according to your time table. Take your profits and get out.

If you chance to pick a stock that starts to stagnate or drop in price, sell it immediately, even if you have got to take losses. Never think the stock will recover and you will get your investment back. If it drops lower you'll lose even more. The concept is to maximise your gains and keep your losses as low as possible.

With hot stocks, you will decide to buy and sell a specific stock in one day. To utilise this strategy of stocking trading, you have to keep a lid on of your investments and watch the stocks closely. Study market trends. When a stock drops, sell it straight away. Do not get greedy or use the old gamblers instinct that tells you you can still win. You can't on this one stock, but their are lots of others.

Anyone that is trading seriously in the market should use more than one plan. Hot stocks are great, but they're frequently high risk. Your portfolio should be diversified, with proven stocks from different business sectors. This helps offset losses and protects your investments. Hot stocks should be part of your investment plan.

Hot stocks only work as a short term investment. These are stocks which should be bought and sold in less than a week. If the stock continues to rise after you sell, that's's O.K, you made a profit. The stock could just as simply drop in worth.

If you are using a broker for your stock transactions, you will have to pay a fee every time you buy or sell a stock. This will have an impact on your bottom line. There are online trading services that are less expensive than brokers for transactions of this sort. If you are considering investing in hot stocks, you must look into tactics to save on brokerage charges. This will be substantial when many transactions are concerned and could even wipe out your profits.

the market is a way to grow your investments. Hot stocks is one way to make reasonable profits in a short amount of time. When investing your money always use more than one method and ensure that at least part of your money is in a safe, if low yield, financial instrument. Never gamble on the market with money you are unable to afford to lose. Remember the old Wall St. Saying" sometimes you eat the bear, and often the bear eats you." Good luck! - 23309

About the Author:

Find more on best stock buys and hot stocks.

Protect your Forex Investment with a Forex Broker

By Bart Icles

FOREX is popularly known among investors as Foreign Exchange Market. It offers many advantages compared to other investments like stocks and futures trading. Knowing where to start is important for every newcomer to the game, so it's vital that learning Forex basics should be on the first list of things to do before anything else.

Not long ago, Forex was limited to large players of the market, e.g. banks - national and central, being a few of them, then the multi-national companies and investment firms. By the 80's the rules changed, allowing much smaller and independent investors to join in using margin accounts. It's this reason why Forex trading has become as popular as it is now. With a margin account, any one can control of large amounts with only a small sum as an investment. An example would be: if you have a $1,000 investment, you can control $100,000 in a 100:1 margin.

Forex trading is a volatile and unpredictable market with many risks and pitfalls to be encountered. Learning all the most basic to the most advanced subjects pertaining to the market may not be enough to keep one's investment in one's pocket, but may serve well as a solid foundation to build a successful career on. Experience, confidence, and a sound trading system are also some of the other essential elements to have when involved in currency trading.

One other such good move would be to open a Forex account with a certified Forex broker to handle your trading for you. Most Forex brokers are associated with large financial institutions, and are duly registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC). This greatly reduces most known risks and other negative factors if you go with their services. But, then again, always do the needed research on them, as well as getting solid referrals, just to be on the safe side of things.

Most beginners are often advised to practice trading with "paper trades" for a relative period of time. This exercise lets the newbie get properly acquainted and accustomed to all the Forex activities, and how the system works in general. Majority of online brokers offer these demo accounts free of charge which form partly with registering an account with them. Most of the software programs are the generic kinds and are common to all Forex brokers. Again, research is vital to know that the programs being served by such brokers are suited to the type of trading system you are planning to use or are already using. Be sure to ask whether or not program updates are free or come with a price. - 23309

About the Author:

Making forex trades starts with a desire to learn and a drive to become a great trader. Learning to day trade forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.