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Questions about Gold in the Stock Market

admin — Fri, 16 Dec 2011 17:07:43 +0000

Author : Caterina Christakos

So many investors have taken a "beating" in the stock market recently that more are looking seriously at the Gold market For anyone not heavily involved in the stock market, that may be a very good strategy to, not only prevent more loss, but to build their capital with the rising price of Gold Gold is predicted to reach $1,100 an ounce within this year (2009) Other optimistic individuals foresee gold reaching $2,000 an ounce at its peak Liquidating all of one's investments into the purchase of gold is not recommended Neither is putting all of one's capital into any other one vehicle Diversification is advisable Never put all your eggs in one basket, as they say

Many people are actually collecting the gold jewelry that they have lying around, not being worn and taking it to a gold dealer for the cash Maybe once they've done that, they will take the cash they receive and buy gold on the stock market as an investment

Let's look at gold investment potential

For the sake of this discussion, let's imagine you invested 10,000 in the gold market in 2000 By December of this year (2009) you would be looking at a tremendous profit in your investment approximately 238% or nearly $34,000 That same amount invested in stocks in the S&P 500 would be realizing a loss of near 40% in the same period of time There has even been a 198% rise in the investment of those owning rare coins Many strategists foresee gold becoming a real Bull Market, and the wealthy are not losing any time at buying gold for their investment package

Want some reasons to invest in gold?

Check these out The price of gold is determined by inflation, fluctuations in the dollar, and by increases and decreases in the other commodities Gold is produced for its intrinsic value as an accumulation commodity Gold is money

Gold is a hedge against inflation It is a hedge against the falling dollar Gold has been called the crisis commodity and has been shown to outperform other investments when there is world tension When banking crises occur, like now, everyone is looking for a safe haven and therefore, looks to investing in gold Gold will always maintain its value It is recommended as a diversifier for a stock portfolio Its price increases in value in markets that negatively affect stocks and bonds

Read more about the Gold Market on the internet or talk with a financial advisor to find out what the procedure is to convert one or more of your stocks or bonds into gold

What China is doing

China's economy is expected to become the 2nd largest in the world by 2020, next to the United States And now, China is passing legislation go afford their population the ability to buy gold bars from their four commercial banks Gold is in It may be that the time is right for you to get on the bandwagon

Caterina Christakos is a private investor and published author. To get more information about the stock market visit: http://financialinvestmentsdirectory.com

Penny Stock Trading The Risks

admin — Fri, 16 Dec 2011 17:07:42 +0000

Author : John Merritt

Many people chose to buy penny stocks due to the potential profits of picking the right stock and having it pay off big However, knowing the risks of these types of stocks is critical Because if you don't know the risks, chances are you will lose money!

When we talk about penny stocks, it's a good idea to first define what qualifies as a penny stock While most people would probably consider any stock priced under $1 00 to be a penny stock, there are almost as many investors and larger funds that consider any stock priced under $5 00 to be in penny stock territory So for the sake of this discussion, we'll use $5 00 as our cutoff for what we'll refer to as a penny stock With that in mind, here's some factors that can influence (or increase) the risks of penny stocks that you may not find in stocks that trade at higher prices:

1 The stock exchange

Is the stock listed on one of the exchanges? Buying a stock on one of the exchanges is less risky than trading stocks over-the-counter In other words, it's much easier for "sketchy" or questionable companies to get listed through OTC pink sheets than the three major exchanges The NYSE, NASDAQ and AMEX all have tougher requirements in place to get listed, as well as rules for financial reporting and market capitalization, among others Any company that falls out of compliance is booted off the exchange if not brought back into compliance

2 Trading volume

How much trading volume is there each day? If not many shares are traded in the particular stock, this can make buying and selling the stock at a market price very difficult and can increase the risk of losses For example, if you want to sell 100,000 shares of a stock with a last trade of 10 cents but the closest best bid with that many shares is all the way down to 06 cents, you may end up losing 40% if you need to sell the stock right then This is sometimes called "liquidity risk" and although it can be a risk of higher priced stocks as well, it is not as pronounced as in penny stocks

3 Stock price

Why is the stock a penny stock in the first place? The price of the stock itself is important, because many times the reason a stock is trading for such a low price is the company itself may be having financial problems or other issues The company may even be on the verge of bankruptcy Can you be sure the company isn't going to fold the day after you buy the stock? It's a good idea to check recent news and press releases for the company to make sure there's no suprises you aren't aware of

4 Volatility

Is there much historical volatility? And what I mean by this, is if you look at a 1 year chart for the stock does it make big price moves often, either up or down? While volatility can be your friend, it can also be your worst enemy Imagine buying a stock for $1 00 a share, and having it fall to 30 cents in just a few days That's a big loss, especially if you've put a lot of money in one stock

5 News, information and research

Since the bulk of penny stocks tend to be smaller, lesser known companies, it's sometimes hard to find any information about them The company may rarely (if ever) release news about company developments, it's products or general business conditions This makes it very diffuclt to do research or decide if it's a company worth buying stock in And this increases risk

6 Location of the company

Given all these other factors, one additional thing to consider is where is the company located? Since the US, Canada and the UK tend to have more securities laws and regulation in place to discourage fraud, corruption and other unethical business practices, other countries may not, or if they do they may be loosely enforced Buying stock in a small, unknown company in the US may be risky enough, but buying stock in a small, unknown company in Russia or some other country that may not be subject to the business or securities laws of your country can increase the risks exponentially And just to be clear here I am not picking on Russia, I love Russia and I love Russians, they are some of the smartest business people out there - I only use this as an example to make a point

What do I think?

Overall I think penny stocks carry higher than average risk, so I would not invest a lot of money in these types of stocks However, if you are a person who is interested in penny stocks and think the risk is worth the potential big gains, just be sure you fully understand the risks and take steps to mitigate them as much as possible Good luck!

John Merritt is an active investor and founder of invest.us, which offers resources for investing in America. Visit us for more investing basics, or link to this article on penny stock trading.

4 Important Requirements That Can Change Your Day Trading Overnight

admin — Mon, 31 Oct 2011 01:37:59 +0000

Author : Abbie Jones

The desire to succeed lives on in most people, there are very few times when the desire to fail actually sets in, but this is a problem that does occur on occasion and if you are not careful you would quickly discover that you are
sinking far into a trap that you cannot escape

One of the best ways to get started as a forex day trading is to ensure that you are at least mildly proficient in the skills that are needed After all, as with any venture, a few skills are needed to ensure optimum success

Mathematics - This is an area that is very important because it can have a huge impact on the overall way in which you handle your transactions You need to be able to at least determine how much you can afford to invest at a
time, what price you need to sell at in order to make a profit and how much your transaction fees will be Without knowing this basic information you will find that it is virtually impossible to get the results that you want

Reading and Vocabulary - This seems rather basic but in truth many people do not know the proper vocabulary for the stock market In order to be successful you need to understand the different terms completely If you are
talking to your stockbroker, you do not want to have to continuously pull out a dictionary to look up the phrases Rather you need to know exactly what the key phrases mean, and how they can impact you, if you will be using them or
if they are something that is only reserved for special situations or transactions

Judgment - This simply means that ability to determine if you think a transaction is wise or not Without this skill, you could find yourself sinking into trouble quickly You need to be able to tell the difference between an obviously good transaction and an obviously bad one For example,
if you buy a stock at $5 a share, it would be very bad to turn around and sell them at only $1 per share

Patience - The ability to remain patient even as you are sitting around nervously watching the stock tickers to see what your stocks will do is a skill that very few actually have If you are overly concerned with how you are going to handle this then it might be a good idea to get a bit of
practice in before you actually set off to engage in real transactions You should work at calming your nerves as well, because stocks do shift in value almost continuously If you sell too early, you will cut into your profits

and potentially cause a loss, if you hold onto them too long you will again hurt your profits Treading the fine line in the middle is critical

As you can see, there is nothing overly complicated about getting started as a day trader With some basic skills, this is something that literally, anyone can be a part of and as long as you are willing and agreeable to brush
up on any skills where you might be lacking the results of your transactions should be quite good Just realize that you need to continuously work on improving your skills to continue seeing the greatest benefits possible

Please visit: DayTrade-r.com where you can get FREE Day Trading Online Videos and Resources, and discover more related resources on Day Trading Stocks

Foreign exchange market is different from the stock market

admin — Fri, 04 Jun 2010 00:34:00 +0000

The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970′s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.

The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.

Foreign exchange market is different from the stock market

admin — Thu, 03 Jun 2010 23:00:00 +0000