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Monday, April 6, 2009

Commodity Market Index For Diversity

By Derek Powell

If we were to define the word commodity insofar as it relates to the market, we would define it to include crops that are grown and goods are produced from the ground, for example wheat and corn, aluminium and oil. These commodities are traded each day on speculation, and the tracking of this is called the commodity market index.

There is a fair amount of risk involved in commodity investing as natural occurrences can adversely affect a particular crop. The commodity market index levels the risk, by dispersing amongst various other commodity investments. Thus, if a crop such as coffee is damaged by bad weather, another such as gold could be performing very well and would balance out the loss.

Those who prefer not to invest in the futures market find the commodity market index particularly attractive. As commodities are traded on all the major exchanges, there is a piece of the pie available to all investors. You can choose to take an active approach and base your transactions on a strategy to outperform a benchmark index, or you can take a passive role. Buy and sell with the hopes of matching the future index performance.

If you are looking for a diversified portfolio with protection against inflation investing in commodities is for you. So long as you can stand the fast paced style of this market with constant price fluctuations, you could achieve success by involving yourself with the commodities market index. Many investors turn to charts to track this market and there are several online resources available which allow you to enter quotes so you can track commodity prices.

Businesses which rely on certain commodities heavily, utilize the commodity market index as a strategy for risk reduction. By balancing price swings, such companies hedge their bets.

The commodity market index can also be used as a forecaster for investing in mutual funds. Some people prefer mutual funds because there is less risk and expense compared with direct investing.

With a commodity market index, the current and futures market prices are given. The index sets pricing based on a percentage that is determined by production, liquidity and performance. There are a number of indexes which differ by the types of commodities they trade. Among them are the Chicago Board of Trade, the Reuters/Jefferies CRB Index, the Goldman-Sachs Commodity Index, the Dow Jones AIG Commodity Index, the New York Board of Trade and the Commodity Futures Trading Commission.

Although the commodity market index tracks the prices of hogs, soy, gold, and other items, investors don't necessarily have to take possession of the products. They can invest simply to make a profit. There are a number of funds available to meet your investment goals. There are direct commodity funds, natural resources funds, commodity funds that hold futures and combination funds that include actual and future holdings. - 23223

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Can I Become A Great Trader?

By Hass67

If you dont have winning forex trading plan, you will be crushed by the forex markets in no time. When you start forex trading, first you need to choose a good strategy. Then you need a method to implement that strategy. This is in nutshell what we call a trading plan.

Let me tell you about a great experiment in history. This experiment is a perfect example of developing and then implementing a winning trading plan. This experiment was known as Turtle Traders Experiment.

Richard Dennis and Bill Eckhardt were two great traders and partners who were arguing one day on whether great traders are born or made. This was the year 1983. Both were commodities speculators.

Bill was saying that great traders could only be born and not made. Richard had the opinion that great traders could be made through good training. To settle the argument, both agreed to select and then train a few traders to see the trading results after training.

The Great Turtle Trading Experiment in history was born that day. An ad was placed in the Barrons, Wall Street Journal and the New York Times. 1000 people applied for the experiment.

After short listing only 80 were called for interviews. In the end only 13 traders were selected for the training. The students were called Turtles.

The turtles were given training and a complete trading plan based on rules on how to apply it. Richard would always emphasize to the turtles that he could give these rules to anyone but these rules were useless unless they were applied consistently.

Success in forex trading will only come if you get good training. Then use that training to develop your trading plan that is based on rules that are mechanical in nature and do not depend on emotional decisions. The key to success in trading is controlling your emotions. A good trading plan just does that.

Then you need to apply those rules with discipline and consistency. Without discipline and consistency, you can never become a great trader! - 23223

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Purchase Forex Software that Works

By John Eather

Do you have an intention to undertake online trading forex? If your answer is "Yes", then you had better be sure that you if you expect to have any actual opportunity of doing substantial success, you'll require some type of software. Forex traders who have continued to pull in earnings regularly from their forex trading, all have been able to do this by employing some system or software to assist.

The important thing is that If you're searching for a way to start active involvement in forex trading then you're definitely not going to have a chance of succeeding until you narrow done what kind of assistance you'll use.

Thinking about my own trading experience, I've observed that the next 3 chief factors to be totally necessary if you're committed to producing wealth via online forex trading. These 3 factors are employing historically supported trading signals that are consistent and precise.

A rightfully telling trading signal should attest to historically backed results. Trading with a formula that doesn't deliver reproducible results that have represented and time proven, then you're just exposing yourself to the great risk of financial demise in regards to your forex trading.

Furthermore, you should utilise a trading plan which bears uniform profitable signals. There are numerous systems on the market that don't issue very many trading signals. It has to be said that this is simply not advantageous if you're really serious about forex trading online since it's essential tot be trading a great deal if you would like to have any opportunity of raking in worthwhile profits.

If you're forex trading regularly then the chance of taking profit regularly is greatly magnified. In the end, trading signals require dependability for there's zero reward in trading a forex system that aren't able tot give back consistent steady-going signals.

75 percent of trades should be reliable. Three quarters of your trades had better be successes or you'd better eliminate the system as soon as possible. There are some forex traders who choose more than a 60 percent ratio, however I'm even more demanding than them.

If you're attempting to find a forex trading system that holds fast to the above measures then there's a link below to a related website. You'll be able to see some of the high-grade forex software accessible in the marketplace today. I'd like to extend my best wishes to you in your online forex trading. - 23223

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Solar Energy Technologys Top Smallcap Companies

By James Brumley

Solar energy does work, and it can be profitable. Thats no longer in question. The next focal point for the industry is going to be making solar power more cost effective, and/or more efficient. A handful of small, publicly-traded companies are working on technological advancements that will not only bring solar energys cost closer to gas or coal energy prices, but also make it feasible to integrate the technology into our current infrastructure.

Below youll find brief descriptions of solar energys next technological leaps, and some stocks of the companies making them happen. They may prove to be outstanding investments.

Paint On Solar Panels

Do you hink a solar panel is a large, flat piece of equipment that you have to securely mount? Thats what they are now, but a new development may change the definition of solar panel in the future. In tests, the photovoltaic materials used in a traditional solar cell have also successfully been painted onto a solid structure, and then successfully converted solar power into electricity. Mounting a panel may not be necessary if the paint can be made to work well enough.

There are no publicly-traded companies with a significant focus on painted solar panels at least not yet. Like most technologies however, once its proven that it can generate a profit, corporations may start to commercialize a competitive product.

Paper-Thin Solar Panels Make Like Much Easier

Formerly, solar cell panels were heavy and fragile, and therefore difficult to install " one of their limiting factors. Recent advancements have flattened solar panels to paper-thin widths, without sacrificing efficiency. Best of all, these thin film panels arent rigid like previous ones. That flexibility makes thin-film panels considerably easier to mount without the risk of breaking.

One of the leaders of this technology is First Solar Inc. (NASDAQ: FSLR). First Solar manufactures a cadmium telluride thin film that costs less than $1.00 per watt.

Bigger may not necessarily be better though. Smallcap company XsunX, Inc. (OTCBB: XSNX) believes that its ASI-120 (amorphous silicon) solar module can provide an even lower cost per watt while supplying electricity in a wider variety of geographical environments. The companys thin-film modules find a balance between the common silicon wafer modules, which are more costly, and lower rated power thin film modules, which are fairly ineffective.

Another small stock of interest is Energy Conversion Devices (NASDAQ: ENER). Its wholly-owned subsidiary Uni-Solar Ovonic manufactures a triple-junction silicon solar cell that is proving to a vast improvement on already0advanced thin film panels.

Making It Is One Thing; Storing It Is Another

For solar energy to really be functional, it has to supply power even when the sun isnt shining. but the amount sunshine we receive is one thing we cant improve. The solution to the problem is simple " a battery that stores this electricity. Thats easier said than done though.

Most modern batteries simply wont work well enough to allow for complete dependence on solar power. The solid components in most rechargeable batteries degrade relatively quickly, and are slow to charge. Plus, they dont last long. The development of liquid components rather than solid materials appears to be a potential solution to all those challenges.

Though the liquid battery to date is only being developed as part of a test at MIT, it shows a great deal of promise. And, once the technology shows real promise, we anticipate for-profit corporations becoming involved with their own versions.

Thats not to say investors have to wait for the liquid battery to become commercialized though. Several solid-component battery manufacturers are producing products that still meet current demands. One of them is Valence Technology Inc. (NASDAQ:VLNC), which has a great deal of the large-capacity battery market the kind that utility companies would be interested in. Advanced Battery Technologies Inc. (NASDAQ: ABAT) and EnerSys (NYSE: ENS) are also key players in the battery market, and could play a major role as the need for power storage is increased.

That said, there are at least a couple of dozen battery companies that could actually meet the needs created by the continued growth of solar power. Some are better than others, but thats not a function of size.

Bio-Backsheets

Its a little ironic that solar power was largely designed to be an alternative to the use of petroleum, yet petroleum is used to manufacture solar panels. Where? Not the solar collection cells themselves " those are made of silicon. However, these cells are covered by a protective coating called a backsheet, most of which use petroleum in their design.

Of course, this means the cost to build backsheets can vary with the price of oil " volatility that most technology companies just cant tolerate. To avoid that kind of price volatility in addition to improving the quality of backsheets, a small company called BioSolar Inc. (OTCBB: BSRC) has designed an effective solution. Rather than use petroleum in backsheets, use a plant material to make what are effectively bio-based backsheets.

The bulk of BioSolars previous work was supplying bio-backsheets for common crystalline silicon solar cell panels. However, the newer copper-indium-gallium-selenide and cadmium telluride panels are growing in popularity and may soon be the new standard. Therefore, BioSolar has also begun to develop bio-backsheets for those kinds of solar panels.

Electricity-Generating Windows

A lack of transparency clearly limits where and how photovoltaic panels can be used, since a window blocked by a solar panel isnt a window at all. However, not utilizing the surface area of windows " particularly for large, glass-covered buildings " is a waste of potential energy. The solution is a see-through solar panel.

Turning glass into an effective solar panel without sacrificing transparency isnt science fiction for New Energy Technologies, Inc. (OTCBB: NENE). This small company has devised a way to coat windows with silicon nanoparticles that actually convert ultraviolet light into electricity. Needless to say, if an entire building could become a self-contained electricity supply, the implications would be enormous.

Advice to Investors

As enticing as some of these afore-mentioned companies may be, bear in mind its ultimately the technology that will determine their profitability. While these stocks are presently the most interesting, be vigilant about finding the companies that will actually reach the proverbial finish line first. At the same time, remember the best technology is one thing, but profits may be another.

In our experience, the smaller companies and their stocks tend to be better opportunities. These organizations and their management are nimble, and intensely focused (not to mention highly motivated). No matter what though, small or large, dollars are going to flow to some of these companies.

The paradigm shifts in solar powers technology are no small matter, but for serious investors who need details of their commercialization potential, keeping tabs can be tough. Thats why we strongly recommend subscribing to our free newsletter. Well inform you of the industrys advances, and the stocks that can let you tap into that progress. - 23223

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Understanding The Basics Of Forex Trading

By John Eather

"What is forex trading and how can I make money doing it?" You may have asked this question before, but getting a straight answer is easier said than done. The purpose of this article is to cut through any misconceptions and provide you with a clear and systematic way to turn a profit. By following these essential guidelines, you will assure your trades are consistent, savvy and successful!

1. Trades Consist of Two Currencies, Not One - You should never undertake a forex trade without considerable knowledge of the both currencies involved. Take the time to research any currencies you are considering prior to pulling the trigger on your trade.

2. Read About Your Market - Any successful forex trader knows how important it is to be abreast of major global news and events. Sometimes, even rumors can have an affect on your trading. Knowing the difference between the real and preceived news of the day is one of the basics of forex trading.

3. Trading for small profits: Many a times new traders place very tight orders in order to take small profits. This is not a good approach as one may get profits in the short term but he is surely risking his earning for the long term. Because with tight trades it is not possible for you to recover the big difference between the bid and ask price.

4. Define a Plan - A well defined strategy is essential to success in the forex market. As a result, there are hundreds of profit making strategies to chose from. While a fundamental analysis of the trade is the most popular, take the time to find the strategy that most closely you are most comfortable with.

5. Know Your Emotions - Everyone has a bad day at the office. However, undertaking a forex trade with anything other than a level head can be extremely costly. If you find yourself unable to focus or becoming to emotionally attached to your trading, consider taking the day off.

6.Read Your Technical Analysis - A well prepared analysis can contain key information on when to buy and sell the market. You can determine whether the market is long, short or over extended by paying attention to a technical analysis. Keep abreast of them.

7. Believe in Yourself! (Confidence) - Forex trading is not a "get rich quick" scheme. It takes studying, planning, and most importantly, confidence. When your software says you are up, but your bank account says otherwise, its easy to get discouraged. Make sure to study the basics and master your skills before entering the market. A steady approach can take all of the magic out of "forex trading", steel your confidence, and earn your the profits you desire! - 23223

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