Thursday, July 30, 2009

Determining Where To Invest

By Owen Jones

There are several different sorts of investment vehicles on the market, and there are many factors, which you should use to determine where you should place your money.

Naturally, determining where you will place your money starts with checking out the different types of investment available, determining your risk aversion, and determining your investment style and your financial aims.

If you were going to purchase a new car, for instance, you would do a fair bit of research before making a final decision and a purchase. You would never consider buying a car that you had not fully looked over and taken for a test drive. Investing your money works in very much the same way.

You will, naturally, learn as much about the prospective investment as possible, and you would want to learn how previous investors have done too. It's only common sense, isn't it?

Does researching the stock market and investments take a lot of time? Yes it does, but it is certainly time well spent. There are numerous of books and websites on the subject, and you can also take college level courses on the topic, which is what professional stock brokers do. If you have access to the Internet, you can actually play the stock market with pretend money in order to get a feeling for how it all works.

You can make pretend investments in a pretend portfolio often called a 'Wish List' and see how they fare. Do a search with any search engine for 'Stock Market Games' or 'Stock Market Simulations', although almost any online stock broker provides these services. It really is a great way to start learning about investing on the stock market.

Other types of investments external to the stock market do not always have simulators, so you must learn about those types of investments the hard way - by reading.

As a potential investor, you should read thing you can possibly get your hands on about investing, but start at the lowest level of investment books and websites to start with, or, you will find that you quickly get lost.

Finally, speak with a financial adviser. Tell her your goals and ask them for their suggestions. This is what they do! A good financial planner can easily help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many planner will even teach you about investing along the way, so make sure you pay attention to what they are telling you! - 23309

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The Facts Behind High Yielding Investments

By Mr Christopher Latter

What is most important factor that is running the world today? Uncertainty, this word would be the answer to this question. Are you certain of tomorrow? Are you certain of your future? Are you certain of your finances? Everything is uncertain. Don't you see the need for securing your future and finances? Many people have realized the fact that investing would alone be the answer to their fears for the future. The quickest way to earn money and thus secure your future is to invest money in high yielding investments.

The amount of uncertainty is ever growing. This makes it very confusing for every one in choosing the right ways to make profitable investments. High yield investments are certainly the best option to earn more profits in quick span. But the risk is high. The point is you can not have both i.e. less risk and more profits. You have to sacrifice at least one. If you want high profits then get ready to play a high stake game.

High yielding investments are non conventional i.e. modern. High yield investments are much better than the traditional and conventional ways of investing as they seem to yield high amounts of profits. Real estate investing, FOREX trade, futures, arbitrage are some of the examples of high yield investment areas. The scope and leverage in these areas of investment are very high and hence the returns are high. You could multiply your own money in no time if you opt to invest in high yielding investments.

But you should be very careful not to fall in to the trap of some fraudulent programs. 95% of the advertised high yielding investment programs are false. This is really shocking but true. This means 19 out of every 20 programs are false scams. Some may not even exist and are just targeted for getting free and easy money from the aspirants. So look out for the 5 percent genuine programs which are true and reliable enough to make an investment.

You might be really confused on security concerns whether to go with high yielding investments or not. The above mentioned statistics would only add up to the confusion. The fact is you cannot ignore them because of fraud in some programs as there are lots of genuine programs that are very worthy to invest. Everything would be dependant on making the right choice.

High yielding investments can prove to be a scam or a savior depending on the respective investor's perspective. Perspective is the key. If you make a right choice then that scheme would work wonders for you or if the choice is incorrect then you would end up in heavy losses.

It is true what the statistics say-95% of the high yielding investment schemes are scams. The reason for this unsocial issue is due to the high returns that one can acquire in this area. Moreover, people too have a general deviation towards earning "lots" in less time. There are several other High Yielding Investment Schemes that play with the minds of the people. As long as the people are offered some bonuses, they'll not be termed as 'scams'. But unnoticeably, these schemes tend to eat out the investors' investments.

In spite of all these problems, high yielding investments are still considered to be the most profitable mode of investing considering the rate at which the capital grows. Choosing genuine programs would be the key challenge while investing in high yielding investments. If you are a little careful and follow the tips discussed then you are sure to achieve success and ultimate financial freedom. - 23309

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Knowing the Market Sentiment (Part V)

By Ahmad Hassam

Rather than looking at the commercial participants, you should focus on the non-commercial participants when you look at the COT report. You would want to know the reason for ignoring the commercial category in the COT report. Commercial participants are mostly trading currency futures for hedging their future business transactions against exchange rate fluctuations. Commercial participants are mostly large transnational companies. These companies keep on rolling their positions from month to month for hedging even though they maybe taking losses.

However, large speculators like the hedge funds and the banks trade the forex futures contract for speculation and capital gains only. Most will immediately close their losing position instead of rolling it over to the next month. Large speculators do not have any intention of taking delivery of the currency in cash like the commercial participants.

There is a close correlation between the forex futures market and the spot forex market. By gauging market sentiment in the forex futures market, you can also gauge the market sentiment in the spot forex market.

Forex futures are basically spot prices adjusted for the forwards to arrive at the future delivery price based on the interest rate differentials. Near the maturity of the forex futures contract, both the prices converge. Prices become equal on maturity.

Forex futures are traded on a Centralized Exchange Chicago Mercantile Exchange (CME). CME functions as a clearing house between the counter parties. The main difference between the spot forex market and the forex futures market is that the spot forex market is not a centralized market. It is an Over the Counter (OTC) market. So no volume and net position data is available for the spot forex market.

You should become familiar with the differences in price quotation system used in both the markets. When either the spot or the future price of the currency rises, the other also tends to rise and when either falls, the other also tend to falls. For example, if GBP futures price goes up spot price of GBP/USD goes up too. The spot and futures prices of a currency tend to move in tandem.

Calculate the net position of the non-commercial contracts in the COT report by subtracting the total long positions from the total short positions. Usually when a particular currency is trending up against the US Dollar, the non-commercials tend to register a net long position. This is due to the fact that the large speculators like to continue riding the trend as long as it lasts.

The opposite would be also true when a particular currency is trending down against the US Dollar. The non-commercials will have a net short position. By comparing the latest net positioning with that of the past few weeks or months, you can tell if the latest net positioning is skewing towards an extreme reading.

When the majority of the market is positioned incorrectly, dramatic price moves like the major turning points tend to occur. You can detect turning points in the spot forex market with the COT reports by keeping an eye on the net directional positioning and net contract volume in the non-commercial category.

COT report is a treasure trove. What deters many traders from using the COT report is its raw organization of data. Entry and exit cannot be timed solely based on COT report but it can generate warning signals of a possible turn ahead in the spot forex market. You can use your COT report analysis to optimize your trading strategies. - 23309

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Knowing What you Need To Trade the Forex Market

By Matt Ferency

The Forex market is huge. In fact it is one of the top financial markets on the planet. It has no central location so trading goes on 24 hours a day, 7 days a week. Forex stands for foreign exchange and is all about trading currencies, changing dollars into pounds, yen into dollars and so on. Big banks and financial institutions trade in the Forex market. Many individuals make money with Forex trading too.

Trading the Forex can be tricky if you do not know what you are doing. And just like any other stock that you have traded there is no guarantee that you will make money, and every time you play you are putting the money invested at risk.

Many Forex traders got their start playing on paper first. If you are able to win more than you lose on a consistent basis when you trade with play money, then you are ready to begin trading with real cash.

Most people have a fear of getting in the market because they think it requires to much capitol to get started. However, trading the Forex market is something only requires a couple hundred dollars to get started so you can get in there and get going. Talking to a broker about the capitol you will need, and the best way to trade this market is something you should do right up front.

If you are unaware of how to trade the Forex market, and that is the only thing keeping you out. You will be happy to know that there are many different tools that are at your disposal. Using these tools can get you the knowledge you so desperately need so that you can be on you're way to trading.

Consider attending Forex trading seminars that are put on by brokers or successful traders. There are also instructional DVDs you can order that will give you in depth training. The more time you invest in your Forex education, the more money you stand to earn.

The Internet is a rich resource for learning about Forex. You can access broker websites, buy ebooks and hot tip newsletters, learn from fellow traders in chat rooms, and buy Forex analysis software.

To get stared in the exciting world of Forex trading, the first thing you should do is seek out an online broker who offers a dummy account that you can set up just as if it was a real money account. You should compare brokers to make sure you find one that provides great service at an affordable price.

With the technology that is out there, you will need to make sure that you have two required things for effective trading. Those two things are an up-to-date computer and high speed internet. You will need these to download the latest software, and to watch your stocks in real time.

Over a trillion dollars exchanges hands everyday through Forex trading. Many people and businesses make money on the Forex market and you can too if you invest in learning before you invest money in trading. Read books from authors who are successful and respected Forex traders, learn about the various world currencies, and most importantly learn success strategies for maximizing your earnings and minimizing your risks. - 23309

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Silver Eagle Coins USA

By George Lapidis

Coin collector aficionados consider the American Silver Eagle coins sets a valuable addition to their collection. Though many consider the Eagle coins a collector's item across the world, only the staunchest collectors know that it is made off the purest legal silver in the history of the United States.

Of the many aspects associated with these coins, one is the size. They are an easy convenient size which makes them very mobile and the owner can transport them with ease.

These coins have a government guarantee status which is applicable universally. This makes the coins highly valuable and they retain great value around the world.

The Silver Eagle coin collection is not an antique collector's item, so one might wonder how to compare their uniqueness and appraise them in comparison with other collector coins.

This collector's item is a young issue and has been in circulation for only 20 years.

When purchasing an American Silver Eagle coins set for your collection you must be aware of the location and date the coins were minted. Also you may be able to get a good comprehension of the value of the coin if you know the mint marks and the finish of the production.

These coins are not meant for market distribution or trading but were created and issued only for collectors. The collectibles can be purchased directly from the US Mint.

Initially when the Silver Eagle coins were launched, collectors were allowed to purchase only from certified coin dealers or the manufacturers of precious metals. However, later on collectors could purchase directly from the mint.

The silver eagle coin collection from the limited edition set of the 1955 era is the highly sought after collectible. The 1995 " W Proof American Silver Eagle is off the market and not available for purchase.

The one ounce American gold eagle along with the half, quarter and tenth were also included in the set. The set was available in the market for less than a grand with only 125 sets minted in total.

The fact that the American eagle coin collection is certified by the government gives the collector an assurance regarding the purity, value and weight of the coins in question. These coins are loaded by hand into the coin press and then they were stuck on specially burnished blanks that had the special mint mark for each coin.

With over one 130 million pieces circulating in the market since 1986 today the American Silver Eagle coin is a leading collectors item. It is globally recognized as the bestseller due to the fact that it is made of 100% pure silver guaranteed by the government. - 23309

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