Tag Archive | "trading"

Investing vs. Trading – What’s The Difference?

Investing vs. Trading – What’s The Difference?

There is a question which is sometimes asked by those new to the financial markets, and even occasionally debated by experienced participants. That question is how one differentiates between trading and investing. Because both trading and investing – when one considers them from the perspective of the financial markets – are performed in very similar fashions, they are often thought of as interchangeable actions.

In my book, The Essentials of Trading, I followed along with this basic theme by introducing the idea that what differentiates the two is scope definition. Both trading and investing, after all, are at the most simple of levels application of capital in the pursuit of profits. If I buy XYZ stock I expect to either see the price appreciate or earn dividends – perhaps both. What separates trading from investing, however, is that generally in trading one has an exit expectation. This might be in the form of a price target or in terms of how long the position will be held. Either way, the trade is seen to have a finite life. Investing, on the other hand, is more open-ended. An investor will buy a company’s stock with no predefined notion of when he or she will sell, if ever.

We can use examples to help demonstrate the difference. Warren Buffet is an investor. He buys companies which he sees as somehow undervalued and holds on to his positions for as long as he continues to like their prospects. He does not think in terms of a price at which he will exit the stock. George Soros is (or at least was while he was still actively running his hedge fund) a trader. His most famous trade was shorting the British Pound when he thought the currency was overvalued and ready to be withdrawn from the European Exchange Rate Mechanism. The position he took was based on a specific circumstance. Once the Pound was allowed to float freely, and quickly devalued in the market, Soros exited with a handsome profit. That meets the criteria of having a predefined exit, making it a trade, not an investment.

There is another way one can define trading as set against investing, though. It has to do with the manner in which the applied capital is expected to produce a return. In trading the appreciation of capital is the objective. You buy XZY stock at 10 expecting it to go to 15 and thereby produce a capital gain. If dividends or interest are paid out along the way, that is fine, but likely only a minor contribution to the expected profits.

In contrast, investing looks more toward income over time. That makes income production, such as dividends and bond interest payments, the major focal point. Do investors experience capital appreciation? Sure, but unlike in trading, that is not the prime motivation.

With these definitions in mind, consider what many people refer to as their single biggest investment – their home. Based our second definition of investing, however, a home is generally not an investment because in most cases is does not produce any income. In fact, it produces considerable expenses in the form of mortgage interest payments, utility bills, and upkeep. If anything, a home is a trade. We buy it and hope for its value to rise over time, increasing our equity. And the fact that many people expect to move in only a few years and sell at that point makes it even more of a trade rather than an investment. (Of course own rental property can certainly be viewed as investing, unless one is flipping it, which would definitely be more trading.)

As noted earlier, for many people trading and investing seem like the same thing. The mechanics of buying and selling are basically the same. Sometimes the analysis one does to make those decisions is identical as well. It’s the intention and definition of objectives which separate trading and investing, though.

Posted in Currency MarketComments (0)

Tell Me About Offshore Stock Trading And Online Banking?

Tell Me About Offshore Stock Trading And Online Banking?

When you are thinking about offshore stock trading and online banking you might consider The Commonwealth of Dominica. Dominica offers one of the best tax havens, and offer offshore banking and asset protection in total secrecy. Dominica has some of the newest offshore legislation in the world and is more advanced than most other jurisdictions, technologically.

All offshore bank accounts will be opened in the name of your offshore company, with help from their law offices and Dominica’s new company formation process. Your International Business Company will be incorporated with the documents sent back to you by courier within a few days. You may have bearer shares with only one director of your company for incorporation.

You will also have your choice of offshore banks in 5 jurisdictions, including Dominica, for offshore stock trading and online banking. You will have internet access to your account from anywhere in the world. You will also receive free brokerage account documents as part of your account package.

Why should you choose an offshore stock trading, online banking, offshore company in Dominica? You will need only one director and one shareholder to get you registered as a company, director and shareholder can be the same person. A company secretary is not required by law. Bearer shares and non par value shares are allowed. There is no limitation to the value of Share Capitol and incorporation and annual fees are not dependant upon the Share Capital amount. The annual fee is due on the day the company was incorporated. Share capital can be in any currency, and the State guarantees tax exemption for a minimum of 20 years. Annual shareholder meetings can be held in any country in the world and there is no need to come to Dominica to incorporate your company or conduct business.

You should choose Offshore Company in Dominica because there are no taxation treaties with other countries so there is no need to exchange information with other tax authorities. You will be able to choose from a wide variety of names for your new company. Dominica offers the lowest prices on the market for IBC incorporations and offshore services. Significant discounts are available for clients who buy package services. You can incorporate online and pay online with Visa, Master Card, Discover or American Express; if you want to remain anonymous, you can pay by Western Union, Wire Transfer, or Money Gram. There is also an option to pay by wire transfer.

The process of incorporation with Dominica will not take more than 24 hours. Your company will be incorporated with the Government Agent with years of experience in offshore services. You will incorporate a company from the country of origin, there will be no middle man. This will save you money and make all of your business activities confidential. If you are serious about becoming incorporated in Dominica, you will be able to choose from many packages they offer for offshore stock trading and online banking.

Posted in Currency MarketComments (0)

Is Day Trading For A Living Your Cup Of Tea?

Is Day Trading For A Living Your Cup Of Tea?

If you like working with other people’s money, then maybe day trading for a living is what you should be doing. This type of trading works daytime hours only, from the moment the stock market opens at 9am until it closes at 4pm in the afternoon, you can do a lot of trading in that amount of time. Or maybe you want to do day trading for livings with your own money, that way if you loose it, then you have no one to blame but yourself. However, it may be a good way to watch your money grow too. The following is the basic definition of what day trading is all about. Maybe it is your cup of tea, maybe not, only you can decide.

What is Day Trading?

Day trading for a living is when you take a position in the markets with a view of squaring that position before the end of that day. Day trading for a living mean a trader usually trades many times a day looking for fractions of a point to a few points per trade, however, by the end of the day he or she will close out all their positions. The goal of the day is to capitalize on price movement within one trading day. Unlike investors, the day trader will hold positions for only a few seconds or minutes, and never overnight.

What day trading really means.

The meaning of day trading is actually a misunderstood term. True day trading means not holding on to your stock positions beyond the current trading day, meaning your not suppose to hold on to your stock overnight. Trading this way is really the safest way to do day trading, this way one is not exposed to the potential losses that can happen if the stock marked is closed due to news that can affect the prices of your stocks. There are many people out there today who are not very good “day traders,” they are actually more like con artists just out to take your money. Because of greed, they will hold your stock overnight, setting themselves up for the catastrophic elimination of their capital. In day trading currency, the term “day trading” changes slightly. Because currencies can be traded 24-hours a day, there can’t’ really be any overnight trading. You can have open positions for longer than a day with active stop losses than can be activated at any time.

There are a few different types of day traders out there today, it can actually be subdivided into a number of styles.

Scalpers- This type of day trading involves the rapid and repeated buying and selling of a large amount of stocks within minutes or seconds. The goal here is to earn a small per share profit on each transaction while minimizing the risk.

Momentum Traders- This style of day trading involves identifying and trading stocks that are in a moving pattern during the day, in an attempt to buy such stocks at bottoms and sell at tops.

The advantages of day trading for a living is there are no overnight risks. Because positions are closed prior to the end of the trading day, news and events that affect the next trading day’s opening prices do not affect your client’s portfolio. Day trading for a living has a greater leverage on your client’s capital because of the low margin requirements as their trades are closed in the same market day. This increased leverage can increase your client’s profits if used wisely.

Posted in Currency MarketComments (0)

Getting The Heads Up For Options Trading Indicators

Getting The Heads Up For Options Trading Indicators

Prior to making things happen and making them big, all that you have to firstly deal with is that of familiarizing yourself with as well as identifying the options trading indicators. This course of action is as essential as learning your ABC.

Your ignorance to the jargons as well as with the indicators will only mean that you are pushing your luck way too far from you. As it goes, the more knowledgeable you are, the better chances you can have in your hands. There are generally six of the most vital trading indicators that you must get educated with. These are by and large the signals that you have to look for before you can execute any action. Consider them at all times and you will be guided towards the right path in maneuvering your endeavor towards success.

Below is the outline of the pertinent options trading indicators which are likely to be used by an enthusiast like you. Get to know them fully so that you will be assured that your every decision is based on a formal, tried and tested chart.

Moving Averages.

This refers to the trend lines that show the particular direction to which the trend is leaning towards. This applies best to those who prefer to work in the trading market for a long span of time. Remember though that this must not be relied on alone. It has to be mixed up with other useful indicators to get more positive results.

Bollinger Bands.

Weaknesses are also part of the trend in the trading market. Hence, this is a tool that will help you out in recognizing the volatility of the market itself. Again, this has to be used alongside with the other indicators since it merely acts as a tool that expresses the possibilities of your opportunity.

Net Trader Positions.

This is yet regarded as among the greatest tools to use. It looks up for the contrary trades and is worked out by the CFTC on a bi-weekly time frame. Currency markets are also well served by this tool apart from spotting the opportunities in the future markets. With this guide, you are on your way to foreseeing the major trends.

Stochastic.

This has been developed by none other than George Lane. He therefore concluded that in the uptrend, the prices are more possible to close within the range of their higher scale. However, in the case of a downtrend market, the prices are more probable to get closer to their lower scale. This is so far the best indicator to be used in conducting trades and generating profits.

Relative Strength Index.

Otherwise known as RSI, it gauges the strength of the price as compared to the past condition of the market. It furthermore provides you with a clear idea as to how strong the market can become in the future.

Average Directional Movement.

Also termed as ADX, this indicator is aimed at calculating the trend’s strength as well as the possible attempts that will gauge if the market is doing well or not. This can also help you determine the strongest trends and provide you with warnings should there be contrary trades or danger in your profit.

There you go with the relevant options trading indicators. Be sure to use them wisely if you want to hit success.

Posted in Currency MarketComments (0)

Trading Options And Futures – Comparing The Two Types Of Contracts

Trading Options And Futures – Comparing The Two Types Of Contracts

In trading, it is quite common for the terms options and futures to be used interchangeably. Although these two contracts have a lot of similarities when it comes to principles, they are actually two very different things and therefore interchanging them when conducting trades in the market can be a very lethal mistake for anyone.

Let us learn the differences between these two contracts in order to prevent making the wrong decisions in buying and selling rights for stocks or commodities. Through this, we may just be able to prevent risks and maximize chances for profit.

What Is An Options Contract?

An option is basically the right to buy or sell a specific amount of stock, currency, or whatever commodity offered in the market. This contract basically allows an individual to enjoy, but to necessarily become obligated, to exercise these rights. This contract can only be valid for a specific period of time, and commodities traded can only be bought and sold at a certain fixed price.

What Is A Futures Contract?

On the other hand, a future is a transferable contract that requires the delivery of a certain stock, currency or whatever commodity traded. Like an option, the delivery of the trade is done through a fixed price stated in the contract and within a time frame, so one should not go beyond the expiry date.

However, it is very important to take note that a holder is obligated to exercise the conditions of the contract unlike in options where the holder can have the liberty of deciding.

The Differences Between Options And Futures

Aside from the fundamental difference between the two contracts on rights and obligations, there are also other differences that include commissions, the size of underlying stocks or commodities traded and how gains are realized.

In a futures contract, an investor has the liberty to sign into the contract without paying upfront. However, an investor cannot take hold of an options position without paying a premium to the contract holder. The option premium therefore serves as payment for the privilege to not become obligated to purchase the underlying commodities in cases wherein there are unfavorable shifts in prices.

Another major difference between options and futures is also the size of the underlying positions that can be traded. Usually, futures contracts would include much larger sizes for the underlying positions as compared to that included in options contracts. Because of this, the obligations included in futures make it riskier for a contract holder to trade due to the possibility of losing so much.

Lastly, the two contracts differ with how gains are received by parties involved. For options contracts, gains can be attained in three methods. Either the holder exercises the option, purchases an opposite option, or waits until the expiration date arrives to be able to collect the difference between the price for asset and the strike price, so he or she could get profits. However, profits for futures contracts can only be realized by either taking an opposition position or through the instant change in the value of positions at the end of each trading day.

Knowing about the differences between an options contract and a futures contract can help broaden your knowledge in stock trading, and this can surely prevent you from making the wrong decisions if ever you decide in joining this particular arena.

Remember to never trade without doing your research and fully understanding what contracts you are dealing with. If you just take the extra step to acquaint yourself, then you just might be able to spare losing so much money.

Posted in Currency MarketComments (0)

Recommended Tips To Make Your Forex Trading Take Off

Recommended Tips To Make Your Forex Trading Take Off

If you’re on the hunt for a profitable business opportunity, you might just be interested in affiliate marketing. It’s simple enough to understand, but you would be surprised at just how many people get things wrong when marketing. Pay attention to the information in this article. It just might help choose your next business opportunity.

Create a mini-site. A typical mini-site has just one page which is essentially a sales pitch culminating in an order. This page concentrates exclusively on getting your customer to make the purchase. There are no other distractions, no external links to other resources, and no unnecessary graphics. It’s quick to set up, and you get good conversion rates.

A great affiliate marketing tip is to have at least 30 pages of content on your web site. It’s a good idea to have many pages of content on your web site because it makes your site look more professional. An ideal amount of pages is 250.

You will find a lot of affiliate marketing material online available for free, so always remember to sign up for multiple newsletters and e-zines. You are not necessarily looking to copy the moves other people are making or to follow someone else’s path verbatim, but you can find some great inspiration.

Avoid posting affiliate promotions on or near the holidays! If your promotion is holiday-specific, try to post it at least a month ahead of time so people will be able to read your review and make the decision to purchase, and have the item delivered in time for the big day.

In any affiliate marketing campaign you need to keep track of what is producing money and what is not. You do not want the primer space on your blogs and websites being devoted to affiliate products that are not making you money and are not selling. So keep track of what is good and what is bad and reserve that prime space for the money makers and get rid of the dead weight.

In order to use affiliate marketing, you should know what keywords are being searched for. If someone is searching for you, they will be using keywords that could help you see if you have successful marketing campaigns. This will also show you which marketing strategies are not working for you.

Increasing your productivity in affiliate marketing is about mindset just as much as it is about action. So in order to make sure you have the proper mindset, you should always wait until you experience results before increasing your campaign. Results will give you the confidence to grow and the drive to follow through.

If you’re going to post something about a sale your affiliate is having on their products, do some research into which keywords including “discount” or “sale” are the best to optimize your content for. Include those keywords in the title, URL, and file names of any graphics that you’re using on the page.

Now, no amount of solid information can save your affiliate business on its own. It also takes the right actions by you, the business owner. Just remember that affiliate marketing is a legitimate business, and that you need to approach it as such. Failing to take it seriously and treating it as a gimmick will result in ultimate failure.

Posted in How To Forex TradingComments (0)

The Stock Market And Forex Trading

The Stock Market And Forex Trading

More books and articles have been written on the stock market than on perhaps any other business subject in the world.

Most of these have as their purpose instructing the reader on exactly how he can invest to make a sizable amount of money, and if he really applies himself, how he can become rich in either three or five years.

One of the most useful books written appeared in 1961. It did not tell you how to get rich. It emphasized the difficulties of investing in the stock market and it performed a tremendous service in this way, plus isolating the significant factors which record and explain the ups and downs of the market.

To invest in the market by following the procedures outlined in that book is anything but easy.

It requires a considerable amount of work every day the stock market is in operation. The book is written more for the professional investor to tell him how to make maximum profits out of both the rises and falls of the market.

The average investor will not take the time or perform the work necessary to maximize his profits, and he is satisfied with something less than maximum profits over a period of time. It is this type of person that we are writing for, not the professional investor who often spends 100% of his time on investments. We are, furthermore, writing for the smaller investor, not for the larger, professional one.

When we talk about the stock market we are not trying to write one more treatise on how to get wealthy in the stock market.

We do not present it as the only outlet for funds, although it certainly is for many people who know only the stock market on the one hand and the savings bank on the other. We treat the stock market as one outlet for funds, an outlet that can be almost the only good outlet at certain times, and a terrible outlet at other times one that offers too much risk.

In 1960 the stock market for the non-professional investor was, in my opinion, a substandard investment. Other investments in my portfolio yielded 12% and 14% and sent checks monthly, and the underlying businesses grew stronger while a number of the major firms listed on the Stock Exchanges showed declining profits and the trend of the market was down until late in the year. An inexpert investor in the stock market during most of the year 1960 would have had the cards stacked against him.

If we consider investments primarily of the loan type, those in which a person or organization is obligated to return a given number of dollars, plus a profit, over a period of months or years. Above everything, the proper investigation of these risks and safeguards against losses have been stressed.

The stock market is good for long term investing especially through investment trusts
and unit trusts.

Forex is more risky but greater profits can be made. Good software will help you to reduce the risks if you trade the Forex.

Posted in How To Forex TradingComments (0)

Trading In Forex Will Soon Be Just As Popular As Shares

Trading In Forex Will Soon Be Just As Popular As Shares

Shares are now owned by millions of ordinary people worldwide.

By 1956, 37 million families owned automobiles a rise of 61 per cent in eight years. By 1956, 37 million married couples were living in their own households—an increase of 28 per cent over the total of ten years before. The ,000-a-year income, that mystical dividing line between scraping and comfort, had been achieved by 23 million families or individuals a jump of 153 per cent in ten years.

Inflation, subtle and invisible, had also set in and had begun to erode the value of a dollar. Yet it was not the catastrophic, runaway inflation of Germany in the Twenties, but a benign, “creeping” inflation the kind of mild stomach distress that accompanies rich living. Prices have risen inexorably. The generation of war babies is growing up in a world of ,000 cars, ,000 houses, theater tickets, books, 28-cent milk, and suits. A nickel buys almost nothing. Even the candy bar has jumped 20 per cent to six cents—and a mighty small candy bar it is, too.

The end is not yet. The Sixties are here, and it may be it could be that the shooting pains of inflation will be diagnosed as ulcerous. But for the present, the vigor of the economy seems generally to be overcoming the drags and resistances.

People have not only been spending more, but saving more. “Discretionary income,” that pleasant bulge over and beyond the budget for necessities, is at the command of most families. Consumer credit, which in the past has expanded dangerously beyond people’s ability to pay, has reached astronomic heights with an astonishingly low percentage of defaults.

The enormous and unremitting flow of dollars into the market place has returned unexampled profits to industry. Corporations have assiduously strengthened their underpinning, invested hugely in research, laid away cash surpluses, and still distributed the highest dividend totals in history.

The combination of these forces and these events and of many others, as well—has been faithfully noted by the stock market. It has surged upward strongly, scaling peaks like a mountain goat, past the frayed rope ends and broken ice axes marking the high point of 1929, and into the rarefied atmosphere beyond. As noted, about 12,500,000 people are making the trip.

Who are these people and what do they want? They are, for the most part, plain old American citizens who want a piece of the American future. They work, they earn, they put something by, and they believe they know a solid, reasonably safe, capitalistic investment when they see one. For nearly fifteen years, American business has been doing handsomely, as anyone with half an eye can tell. It’s a meager little town that hasn’t acquired an assembly plant, a parts depot, a retail outlet, a branch sales office, or some other piece of one industrial complex or another in the past decade. There is a fine glow of prosperity about these places, and if you can’t see it, your local friends who work there will be happy to tell you about it.

What doesn’t pop up under one’s nose is in the air. Never has industry seemed so glamorous. This is not to say that strikes and unemployment and other stubborn problems of the capitalistic pattern have been eliminated, but that there is a new gloss and glitter to industry’s ability to perform and produce. The accelerated technology of the postwar period has plunged stodgy old business into the frontiers of the universe. Missiles, rockets, electronic miracles of a thousand kinds are now meat-and-potatoes business not only for established giants like General Electric but for fresh young sprouts like Texas Instruments, Tracerlab, Ampex, Polaroid, and many other fast-growing corporations.

Ordinarily, such excitement would be noted almost exclusively by business and financial publications, except for the occasional rocket whose manufacturer’s name makes the front page of the paper. But through television, industry is now in every home. Not alone to sell foods, drugs, cosmetics, cigarettes, and appliances; radio had and has plenty to say about these, too. But to sell industry itself its resourcefulness, its inventiveness, its enormous concern with creature comforts and with national welfare. With tremendous visual impact, the institutional commercials of Westinghouse, U.S. Steel, duPont, Alcoa, and the rest are telling the success story of American business for all to hear.

Two prime requisites of an active stock market are hereby established. Across the country, people with “discretionary income” are becoming acquainted with the sweet smell of corporate success. There are buyers and something to buy they can easily buys shares or unit trusts and a lot of people are also investing on Forex.

As computers became more intelligent they can predict future price movements and take a lot of the risk out of Forex trading.

Soon Forex trading could be just as prevalent as owning stocks and shares.

Posted in Forex TradingComments (0)

Trading the Wrong Market

Trading the Wrong Market

If you know the pitfalls of trad¬ing, you can easily avoid them. Small mistakes are inevitable, such as entering the wrong stock symbol or incorrectly setting a buy level. But these are forgivable, and, with luck, even profitable. What you have to avoid, however, are the mistakes due to bad judgment rather than simple errors. These are the “deadly” mistakes which ruin entire trading careers instead of just one or two trades. To avoid these pitfalls, you have to watch yourself closely and stay diligent.

Think of trading mistakes like driving a car on icy roads: if you know that driving on ice is dangerous, you can avoid traveling in a sleet storm. But if you don’t know about the dangers of ice, you might drive as if there were no threat, only realizing your mistake once you’re already off the road.

Too many traders are fixed on only one market. They may trade only the forex USD/EUR, or the E-mini Russell, or the E-mini DOW, or just cer¬tain stocks, etc. While they may feel a certain sense of expertise or mastery over this one market, no one, no matter how experienced they are, can predict what will happen all the time. These people are setting themselves up for catastrophe, because there will inevitably come a time when they’ll make a mistake. And, with no diversity in their trades, they will lose everything they’ve worked so hard to gain.

The key to choosing a market isn’t to look for one you seem to understand better than the others. That will always be something of an illusion. But there is one market you can always depend on: the one that is moving. You know you should buy when the market goes up and sell when the market goes down. A moving market will always be profitable, even if you’ve never traded a single share there before.

Pay close attention to trendlines, both in the markets where you’re already trading and the markets you’re considering. If one of your markets is consistently choppy or just moving sideways, get out of it and move on to another. If you think of successful trading as sticking not with a market but with a trend, no matter which market it’s in, then you’re thinking successfully.

The key, of course, is that you have to keep an eye on markets where you aren’t currently trading. Keeping up with your options is just as important as watching what you’re familiar with. This is where research and experience come into play. Getting to know a number of markets (and how to find out about them) takes time. But don’t let that discourage you. Also, don’t feel like you have to understand every option at the very beginning. Pick a few different markets to actually trade in, but also choose a few just to watch. That way, you’ll see how your own trades work, and you can also compare that activity to markets you may not know much about (yet).

The only way to learn about which markets are right and wrong for you is to watch them. Watching a variety of markets will give you the knowledge you’ll need to use when it’s time to change gears and find that elusive moving trend.

Posted in How To Forex TradingComments (0)

How Free Information Can Help Make You Rich Trading Forex Or Shares

How Free Information Can Help Make You Rich Trading Forex Or Shares

No one can predict the future with any high degree of accuracy, and the farther ahead the seer attempts to look, the less accurate he is likely to be.

Be receptive; good information is where you find it.

Second, you will find that the costliness of information does not necessarily reflect its value.

Much of the best material you will get is free.

Your primary sources of investment information are two: New York Stock Exchange member firms and the companies in which you are interested.

Your brokerage firm will provide accurate, up-to-date material, free for the asking. The increase in the number of new investors has launched many firms on broad-scale informational programs. Most of them have weekly market letters, monthly or quarterly surveys, analyses of individual stocks or industries.

(A recent tabulation shows that some 296 member firms now issue about 30,700 market letters, 15,500 pieces of sales literature, and 1,800 special reports— a stack of paper some 38 feet high and weighing around 975 pounds!)

The weekly letter is usually the work of a senior analyst whose job is to move around and tap professional opinion on current market trends, or to conduct field investigations of new developments in companies or industries. It is conversational, newsy, and necessarily not very exhaustive.

The monthly and quarterly surveys are more thoroughgoing, but the editorial and production time involved in putting them together makes them something less than up-to-the-minute. These usually compare performances, indicate trends, and carry ratings or opinions of various groups of stocks. You can get on the mailing list for these items very easily.

Also join selective internet message services to give you up to the minute information.

On request, your broker will also send you fact sheets on individual companies you may be interested in. These usually cover the basic elements of the company’s financial history: its capitalization, its earnings and dividend records, and the prices at which its stock has sold.

On request, too, you may get rather more elaborate studies of companies or industries, the range depending mostly on the versatility of your brokerage firm’s research department.

Finally, your broker should have booklets on specialized ventures, such as the Monthly Investment Plan, investment clubs,Forex or commodity trading.

Corporations are also very much aware of investor interest these days, and most of them are happy to send you annual reports, quarterly statements, stocks prospectuses, or other information, if requested.

These are frequently more ample than your broker can provide; annual reports contain balance sheets, consolidated income statements, and earnings records going back 10 or even 20 years, as well as general factual information on the company’s activities.

It must be remembered that companies are naturally prejudiced in favor of their own business interests, and are inclined to put their best foot forward.

This does not mean that their information cannot be trusted, but simply that an annual report, for instance, which is management’s accounting of its stewardship to stockholders, will put the company in the best light. It is possible that there will be an overenthusiastic view of its performance or prospects.

Secondary sources coming easily to hand, are ordinary newspapers some 600 of which now print daily stock tables and general circulation magazines dealing with business and finance.

These have the virtue of non-involvement with the financial community as such, and possibly a broader perspective on the news. On the other hand, they may lack some of the information readily found in more specialized financial publications.

If you are trading on the Forex download some Forex software to help you predict future price movements.

Posted in How To Forex TradingComments (0)

Forex Strategies

Trade:Forex, Oil and Gold

Powered by Yahoo! Answers