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Thursday, October 22, 2009

Tips for Penny Stock Traders

By Alfred Wayne

There are many things that you need to consider while trading penny stocks. You must be careful to select the right ones. You should do proper research about the company before selecting one.

You can get the information about profitable trades from various alert services. These will help you buy the stocks that are expected to rise in price. Many experts run their own alert services.

You should always choose the alerts service that has some reputation in the market. The person offering the service must be reputed. You should act wisely on the trades if you do not want to lose money.

Excel worksheets can be used to keep all records of trades done. You should use these tools to do trade like professionals. Microsoft Excel is a good option. You can use other free software that offers the same functionality.

You can also participate in forums related to penny stock trading. There, you can get in touch with experts and get useful tips and free alerts about good companies. You will get lots of useful information there.

It is also good to invest some money in professional training programs for penny stock trading. It is a profitable field. It will be great for you to learn it from an expert. There are many training programs available online and offline.

There are many people selling tools, training programs and services for people interested in trading penny stocks. You can gain a lot by using the right tools and services. You should also work with a trusted online broker.

Penny stock trading is a very profitable business for smart traders. You should get the advice from all sources but apply your own research before making a decision to buy any stocks. Thus you can use all these tips to do well as a penny stock trader. - 23223

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Top Tips For Buying Income Real Estate

By Mark Knowles

If you are considering buying investment real estate there are a few things you should consider. Before you jump into the real estate market, you need to think carefully about what you ultimately hope to get out of the purchases that you make. This can help you narrow down the many different properties that you can choose from and select those that allow you to meet your investment goals.

The first kind of investment homes that many starting investors look at is a flip. A flip is a regular home that is usually in need of updating and repair. It is purchased, renovated by the purchaser or their contractor, and then resold. This is done in an attempt to realize a profit. By adding cosmetic updates and increasing the worth of the home it is possible to make a profit by flipping.

A flip is often the first thing that entry level investors consider when they think of investment income. Most people dream of finding a diamond in the rough, property which are broken down but has good bones. They love the thought of putting in time and elbow grease in order to create a dream home and realize an excellent profit. But you should be aware that that may not be the result you get. A home can often harbor unseen damage and renovations may go over budget and take longer than expected. If you cannot afford to float two mortgages indefinitely, you may not want to flip a houses.

Rental properties are also a good investment homes. This is because as soon as you have tenants, you can begin collecting income. This can help cover the cost of the mortgage. You need to decide whether you want commercial or residential tenants. Both of these types of investment properties can be found on the MLS. Another way to find potential rental properties is through befriending a real estate agent and having them do the searching for you. They may find properties that are available before they are put on the MLS and you may be able to scoop a dream houses for a great price.

Vacant land or land that may have derelict buildings on it is another potential type of investment homes. You can find these kinds of properties online. You may not find as many of them on the MLS however. If you are looking at investing in a large city, you may want to check out that city's website. There will often be properties you can select in the industrial park and you can also see what incentives there are for investors. As well, you can become familiar with any bylaws that may affect the use of your investment property.

One of the best tips is to have good legal advice. Real estate law is complex and you don't want to find out that there is a clause you have misunderstood that can cause problems down the road. As well, rental and other investment properties will require different financing than what you would be eligible for with a primary residence. You will also need a good accountant to help you with the intricacies of income from investment properties.

You will also need financial guidance as well. This can cover everything from taxation to how this affects your credit rating and your ability to take part in future business ventures. Because you may not know all of the financial ins and outs of an investment purchase, an accountant can be worth their weight in gold during the course of your investing lifetime.

Purchasing investment properties is not hard. There are plenty of properties out there to choose from. By taking the time to do your homework and research thoroughly, there is less chance that you will get stung down the road. Choose wisely and well, and you can begin to enjoy the added income that investment properties can bring you. - 23223

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Understanding Position Trading (Part II)

By Ahmad Hassam

A professional currency trader may be confident that the US Dollar is indicating overall weakness and the Euro is indicating overall strength for the coming six months after performing the fundamental analysis on both economies.

What should be your next step as a position trader? The next step for the position trader would be to open a long position in EUR/USD pair keeping in view the overall strength of Euro and the weakness of US Dollar. This simultaneously provides the position trader with long Euro position and a short US Dollar position.

Going long on Euro and at the same time short on US Dollar, this combined trading position fulfills your fundamental outlook as the position trader on both the currencies. The long term directional bias has been formed by you as the position trader on the basis of fundamental analysis.

However, pinpointing the best time for the trade entry as well as setting risk managed control strategies is best accomplished by using technical analysis. Position trading depends on using fundamental analysis in identifying a profitable position in the currency market and then using technical analysis in setting up the actual trade.

So the position trading uses fundamental analysis in pairing strength with weakness. Now this concept fits extremely well with the forex markets as all currencies are traded in pairs unlike the stock market or for that matter other financial markets.

Trading forex requires a directional commitment on two currencies for each trade, so position trading is ideal for forex trading. Position trading with the strength/weakness model is the most logical fundamental method for approaching long term forex trading.

Buying one currency because it looks like it will become stronger while simultaneously selling another currency because it looks like it will become weaker is a better way to trade as compared to other financial markets.

Your first step as a position trader should be analyze the Central Bank policy statements, economic growth factors of these countries, global economic news etc to identify the currency with the strongest positive future prospects and the currency with the strongest negative future prospects at a given point in time. As a position trader, you will have to do fundamental research and analysis on all major currency pairs.

Suppose you identify USD and CHF as the strongest loser currencies by performing fundamental analysis while EUR and AUD as the strongest gainer currencies in the foreseeable future. Possible currency pairs for position trading could be long EUR/USD, long AUD/CHF, short USD/AUD and short CHF/EUR.

In currency markets, price action never moves in a straight line and is never ever linear. It is always up and down with minor trends superimposed on a major general trend. Swing traders usually ride the minor trends while position traders ride long term general trends. You can enter the trades with the help of technical analysis and hold them as long as they move in the correct direction disregarding minor corrective swings and market noise in position trading.

Position trading maybe the most difficult method of approaching forex trading for the beginners! It requires a great deal of patience and faith in ones own analysis to weather the inevitable swings against the trading position. But if done properly it can be one of the most effective methods of extracting long term profits from the forex markets. - 23223

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Forex Market Explained

By AHmad Hassam

Right now forex trading is considered to be the hottest wealth creation opportunity. You can trade forex from anywhere in the world. You only need a computer, an internet connection and a few hundred dollars to begin trading. The foreign exchange market most often called the forex market is the most traded financial market in the world. Average daily currency trading volumes exceed $2 trillion per day. To give you an idea it is 10-15 times the size of the daily trading volume on all the world stock markets combined. That is a mind boggling number isnt it.

If you have been a tourist to another country, you would have definitely converted your domestic currency into travelers cheques. Now a day you dont need any conversion, your credit card company will automatically do the conversion for you. There many players in the forex markets. Big banks, multinational companies and other institutions require foreign exchange to carry out their day to day business. While commercial and financial transactions in the currency markets represent huge nominal sums, they still pale in comparison to amounts based on speculation. By far the vast majority of the currency trading volume is based on speculation.

Traders buying and selling currencies for short term gains based on minute to minute, hour to hour and day to day fluctuations. Almost something like 90% of the volume in currency trading is speculative in nature.

The bulk of the spot currency trading almost like 75% takes place in the so called major currencies which represent the worlds largest and most developed economies. Additionally activity in the forex market frequently functions on regional currency blocs basis where bulk of the trading takes place between the USD bloc, JPY bloc and the EUR bloc representing the three largest economic regions.

A highly liquid market like the forex can see large trading volumes transacted with relatively minor price changes. Liquidity represents how much faster or easier it is to buy or sell an asset. Forex markets are highly liquid. In other words, liquidity is the level of buying or selling volume available at any given moment for a particular asset or security.

Forex markets are the most liquid financial markets with a very high volume of transactions. At any given moment, dozens of global financial centers are open such as Sydney, Hong Kong, Tokyo, New York or London and currency trading desks in those financial centers are active in the market. The forex market is open and active 24 hours a day from the start of the business hours on Monday morning in the Asia-Pacific time zone straight through to the Friday close of business hours in New York.

There is no official starting time for trading day or week. But for all practical purposes the market kicks off when Wellington, New Zealand, the first financial center opens on Monday morning local time. It roughly corresponds to Sunday afternoon in US, Sunday evening in EU and early Monday morning in Asia.

Forex markets are unlike the stock markets or for that matter any other market. Unlike other financial markets, you can see around the clock action in the forex markets except on weekends. Forex markets are open 24/5. Sunday open represents the resumption of trading after the Friday close of trading in North America. This is the first chance for the forex market to react to news that may have happened during the weekend. Prices may have closed New York trading at one level. However, they may start trading at another level altogether at the Sunday open. - 23223

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Fiat Fallacies

By James Pynn

In these trying times it's important to start branching off and learn more about the factors that affect us financially. Economics was a class that I glazed over and put the bare minimum of effort in order to pass. But now that the recession is over a year old and the number of unemployed Americans is in double digits, learning at least the economic essentials is a must. The first issue I decided to learn about was the gold standard. I use the past tense because Richard Nixon discarded the standard on August 15, 1971.

Before we begin to explore the history of how we were taken off the gold standard, let's its concept down. It is defined as, "A commitment by participating countries to fix the prices of their domestic currencies in terms of a specified amount of gold. National money and other forms of money (bank deposits and notes) were freely converted into gold at the fixed price." Basically, the gold standard was embraced in an effort create an even playing field across all national economies.

Historically, the United States used a variety of precious metals upon which it based its currency. The two most prominent have been gold and silver. Bimetallicism -- as it's known -- was enacted by Congress via the Standard Act. Now it's important to also know that whenever there is a recession or depression, governments hate having such a shiny standard. What they like doing in such dire times is print more money giving the immediate illusion that markets are holding fast and steady. They don't like having to worry about a standard to uphold because that only slows the printing presses. But that's not how it works.

This tactic of printing more money is a favorite of central banks worldwide. When one powerful economy, like that of the United States, begins to print more money, so too, in most cases, do the banks of foreign nations. This had and still has -- a tremendous affect on the Forex (or Foreign Currency) markets. To keep parity with the dollar, they must print more or less money.

Since 1971, every major currency worldwide has become a fiat currency, that is, it has no intrinsic value. It is only as valued as it is accepted for goods and services. The hidden danger involved is in the inflation that arbitrary printing causes. It has been estimated that the buying power of a 1971 dollar is now roughly eight cents to the dollar. Without a peg to the dollar, the Fed can print as much as it wants, thereby causing a massive tide of inflation that has the potential to flood our everyday lives. - 23223

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