Monday, May 17, 2010

Forex Vs Stocks

I have recently published an article on Ezine in which I did a comparison between stock trading and Forex trading. this Forex article had so many views that I have decided to share it with all my blogs readers.
Please enjoy Stocks Vs Forex

Tuesday, November 10, 2009

what is forex part 2

A benefit of forex trading is that it is not really subject to the same kind of swings in the market that stocks are subject to.

Of course if you always buy and sell the same currencies then there will be market swings.

But, because there are hundreds of currencies out there, there is always going to be something for you to make money on because while one currency is up in value another one is down and vice versa.

Forex trading does not take huge amounts of capital to start. Traders can begin investing with as little as three hundred dollars.

Transaction costs are usually minimal. Often brokers will provide you with the tools and data you need to make trades for free.

There are a large number of buyers and sellers all selling the same products. Information is free-flowing and there are few barriers to participation.

Forex trading is an over-the counter (OTC) market. This means buyers and sellers do not meet in central locations to make exchanges. Instead transactions are completed by phone, fax, email, internet or through the websites of brokers specializing in this market.

Currencies are always traded in pairs. Transactions always involve selling one
currency and buying another. If you believe the euros would gain against the dollar you would sell dollars and buy euros.

A very liquid market, your money is not held up for long periods of time. You will have full control of your trading capital.

With planning, a good system to follow, strong money management skills, and self-discipline, Forex trading can be relatively low risk and very lucrative.

what is forex part 1

FX, Forex, Foreign Exchange are all names for the trading transaction of one currency for another, e.g. you buy xx100.00 with $150.25 or sell $150.25 for xx100.00.

Traders buy and sell currencies with the hope of making a profit when the value of the currencies changes in their favor, whether from market news or events that take place in world.

Forex trading has been around or years. It is viewed as the largest financial market in the whole world.
The estimated amount of daily volume is between 1.5 trillion (US) and 3 trillion (US) dollars.

A true 24-hour market, Forex trading begins each day in Sydney, and advances around the globe as the business day begins in each financial center, first to Tokyo, London, and then New York.

Unlike other financial markets, Forex allows investors to respond to currency fluctuations caused by economic, social and political events instantaneously, at the time that events occur, day and night. The market only closes on weekends.

Penny stock top 10 guidelines

first of all let start with the simple question: What are penny stocks?
Learn everything about penny stocks. Are they great undiscovered companies, or dangerous scams? What are the benefits? Are penny stocks right for you?

1-Penny Stocks are a penny for a reason. While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker's money for an IPO. This doesn't make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

2. Trading Volumes

Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn't trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding "dead money", where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.

3. Does the company know how to make a profit?

While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?

If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.

4. Look for chart in day trades and wait for half of a day to see the trend of any stock. If that stock goes up initially, short it and if that stock goes down, pick it at bottom (you can guess the approximate bottom of the day with some practice using daily up down averages). Even when this strategy doesn't work, the losses will be very small.

5. Profitable day traders recognize that penny stock trading is among the greatest ways to harvest BIG piles of cash in the stock market.

6. The problem is that if you don't know what stocks to look for and how to approach them while limiting your risk, you won't even get close to making some profits.

7. You don't necessarily have to trade hot small cap & micro cap stocks all the time. But you can learn how to take advantage of them when you encounter the best opportunities while at the same time limiting your risk.

8. Penny Stocks are among the most volatile and most manipulated form of investment in the stock market.

9. Have an entry and exit strategy. Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you're out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.

If your plan was to sell at $0.15 and it jumps to $0.16, either take the 30% gain, or better still, place your stop at $0.15. Lock in your profits while not capping the upside potential.

10.always have you risk managment plan intact. trade don't gamble

Why Stock Trading

Ask people who have recently engage in stock trading and some of them would probably tell you that one of the reasons why they are encouraged to get into this field is the movie, “The Pursuit of Happyness”.

In fact, many people who are in stock trading right now have once or twice thought about going into stock trading. It all look so easy considering you just need to make a few phone calls and meet some people and talk to some high brass firms. It is all about presentation they say. It’s important that you have the know how to say things at the right time. Now for people who are seriously considering stock trading as a career here are some important things you need to know.

1. What are the types of stocks. There are basically two types of stocks available—the common stock and the preferred stock. The type that most individuals hold is called the “common stock”. Here, the trader represents the majority of stock and he or she reserves the rights when it comes to voting people in the management as well as also calls the shots when it comes to share in dividends. The other type is called as the “preferred stock”. Basically, it is the same with common stock only that the traders enjoy lesser rights. But the good thing about preferred stocks is that the traders do not partake in dividends, thus, making companies have more freedom in deciding the trend of the income from dividends. If you are just beginning in stock trading, it would be best to look for companies that have bigger profits on their preferred stocks because it means that they earn bigger dividends, which can give you bigger return of investment.

2. What are “trading stocks.” This is one of the most basic things you need to know. If you are just starting in stock trading, must understand what a stock is, what does trading entails, and how does trading stocks will affect your overall success. Stocks refer to a unit of ownership one has in a certain company. Trading, on the other hand, is the simplest way of saying buying and selling something or a financial tool that is used stock trading. Stock trading simply means that you will be purchasing and selling stocks in the financial market.

3. Understand the methods of stock trading. Experts say that a beginner in stock trading doesn’t really have to have in-depth knowledge of the minute details of how one buys and sells stocks. The most important thing is that he or she learns the importance of knowing the basics so they would know how to execute the stock trading strategies. In stock trading, there are basically two interactions that take place when a trader executes a trade—the first is on the exchange floor and the other one is by using electronics. If one is trading on the exchange floor, there is a need to open the marketplace where thousands of people are speeding up, shouting, make gestures to one another, and in heated discussions over the phones. There are also those who carefully watch the monitors for any changes, and almost simultaneously enter data into each respective terminals. When it comes to electronic trading, the exchange floor might be more chaotic compared to this set up. These days, there is a stronger demand in shifting trading to the networks and off the trading floors. In fact, because of lesser room for pressure, more and more traders prefer this stock trading set up.

This article is distributed by Hansel Gunners. He owns a site, find people online free. Feel free to look at his find people online freewebsite online people directory website Thank you.

Friday, October 23, 2009

Forex: GBP/USD falls further to 1.6320

GBP/USD continues to fall across the board. GBP/USD slid further to 1.6320, posting a fresh intra-day low. The pair continues it collapse form 1.6690 (one-month high) reached early on Friday during the European session. Currently it trades at 1.6351/55, 1.60% below today’s opening price. On the downside the next support below 1.6300 lies at 1.6240 (Oct 19 low).

The Sterling is suffering the biggest daily decline in a month and lost a big part of weekly gains.

Andrew Wilkinson, analyst at Interactive Brokers, affirms: “A sixth consecutive quarterly decline in British GDP marked the longest recorded string of negative growth readings since records began in 1955. A 0.4% quarterly decline confounded expectations for a 0.2% gain and created an immediate slump in the value of the pound (…) In Monopoly terms, Britain drew a “miss-a-turn” card from the Community Chest pile. Today’s data gives the British economy the appearance as the clear laggard mired in recession. But when you look at the pound relative to recent lows against its two majors, it’s actually performing rather well.”

After sequential stop hunts, now sequential drops are seen

When many traders were wondering what is the force behind such higher level holding and upward stop hunts during the week.The first reversal is shown in USD/CAD and USD/YEN.AUD/USD has initialted the drop and holding to drop big.Then GBP/USD has fallen big.Next EURO/USD and USD/CHF are now expected to show the big reversal moves from late European session.So extended stops hunts lead to reversal.if we understand their act well we can trade along with the players and may appear we are trading against the trend - but the players create apparent trends and reverse and not the true trends during reversal times.