Where To Invest

Many traders use Bollinger Bands to help them identify different stages of a market move including breakout points, continuation patterns, corrections and tops and bottoms.

There are some patterns that can forecast possible price movements that form during different stages of a move and when used with other indicators can raise the probability of that forecast.

Starting at the point where prices are in a squeeze and for this example we'll assume prices decline. (Remember a squeeze is when prices are generally moving sideways and the bollinger bands squeeze together, when prices breakout of the squeeze the bands expand and move apart in opposite directions.) As prices move down, the bands will continue to widen, at the point when the top band begins to stop moving up and turns lower, prices tend to correct. Depending on the severity of the decline this could be a bottom, but is not necessarily. The more severe the decline the more the probability prices are in a correction. The top band will then continue moving lower with prices.

At the point when the bottom band begins to turn up is when the probability of prices bottoming increases dramatically. Prices are likely in another correction at this point and will move back to the 20 period moving average.

Other variables to keep in mind are the severity of the price decline, the steepness of the moving average, volume and the conviction of the correction. Also, momentum indicators are helpful to determine if a bottom is being made. Momentum will be sharply negative by this time, but if it begins to make a B-line for zero it raises the probability of a bottom.

In a steep decline the moving average is likely falling very steep as well. If the correction is relatively flat, rather than a V type correction, the probability of prices falling again after touching the moving average is high. What happens next is important, does the closing bottom bollinger band provide support as prices decline or does it turn lower. This will forecast prices for the short term. If the band provides support, price will move above the moving average and to the top band and a new squeeze and breakout point will emerge.

Remember, there is no pattern that is 100% full proof. Each pattern has its own characteristics, but similarities exist and with study, identifying these similarities will become easier.

Author: John C Morgan
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What does one do if one wants to achieve something in life? One charts out an action plan to reach that goal. In the same way, the destination for you (if you are a trader/investor), who indulges in commodity day trading, is successful transactions that bring huge profits. Unfortunately, many like you fail because of a dearth of proper knowledge about market trends and lack of well-planned strategies.

Before going on to detail some useful tips that could help you to find high-quality commodities, it is necessary to define what exactly a commodity means.

Commodity = It is any item that is offered for sale because it is tangible and useful. It can be purchased within a restricted period of time only, as the supply does not last for long.

(1) Institutions and organizations involved with trade and finance believe that you should collect adequate knowledge about commodity day trading before venturing into the business. This gives you the opportunity to practice an advanced approach.

Experienced and practical investors/traders have been in the arena long enough to realize that the market has no permanent sequence. Hence, it is not easy to come up with a high-quality commodity.

They advise the reverse of what the experts suggest. According to these renowned investors/traders, the most important thing is to keep track of market trends. That is how you will understand what commodity can be gained and what can be lost. By going with the flow and with continual evaluation, you will learn how to foretell future prices of commodities. Thus, you are always prepared (concerning money) for the best or for the worst!

(2) Just following the market trends is not enough. Developing a strategy that works is equally essential. The trading method should match the trading necessities. Trading experts/professionals come in useful here. An alternative is to seek advice from articles and books that deal with commodity day trading.

Along with a good strategy, it is advisable to develop an objective attitude towards the business. Emotions have no role to play and should be kept aside. Perking up when there is a profit and getting depressed when there is a loss, just will not do!

Whatever be the strategy devised for commodity day trading, it should be constantly monitored. The trading plan should be adopted on a consistent basis. When the strategy is put into action time after time, success will definitely not be far away.

(3) Why would you venture into commodity day trading? To generate large revenue for yourself. To this purpose, you wish to obtain a commodity that proves beneficial.

Since adequate knowledge is lacking, there is a tendency to ask others for advice. What is to be kept in mind here is that the information is provided by genuine sources. They should not prove to be mere fairy tales!

Advice comes for free, and so there are plenty of well-wishers around--individuals and writers of articles who promise nothing less than the moon if you should purchase certain commodities! The best thing to do is to listen patiently to all the tips and guidelines offered--then, weed out what does not seem profitable. The ultimate decision about what to do and what not to do, should ultimately rest with you, yourself!

You can always try out some suggested strategies later on. If they work, well and good! Otherwise, dispose of them! After all, commodity day trading requires a certain process to be followed, since you will receive something of value at the end of it all. The commodity should be useful, as well as generate revenue.

Author: Abhishek Agarwal
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Even as a young child, I remember being fascinated by and interested in money.

* How to earn it.

* How to keep it.

* How to multiply it.

My interest in money has led me down some interesting paths. I've bought bank-owned homes and flipped them for profit. I've worked overseas for a big Fortune 500 company. And I've even been the owner/operator of a couple tattoo parlors.

Here's the craziest part. To this day, I haven't found anything quite as easy, exciting, and lucrative as option trading.

Please let me share with you eight clear reasons why I prefer option trading to any other money-making method:

1. You can get started even if you don't have much cash to play around with.

2. There are no products or inventory to keep track of.

3. You don't have to pay rent to a landlord.

4. There are no employees to take care of, no salaries to pay, and no HR issues.

5. You can trade options just about anywhere on earth--even on a tropical beach.

6. You can minimize your risk and win 7 out of 10 trades... IF you're educated and know what you're doing.

7. No glass ceiling! The sky is the limit to how much you can make.

8. And, get this: You can earn a full-time living in only 30 minutes a day.

It is important to note that I didn't become wealthy overnight. I invested many months learning everything I possibly could about option trading.

Still, where else can you get enough leverage to turn $5K into a million bucks in only three short years?

I really can't think of many opportunities that provide as much leverage and profit potential as option trading has provided for me.

And get this: Despite how much my trading "business" has grown, I'm still able to do everything from the relative comfort of my spare bedroom in a quiet Colorado town.

It's just me, my two pet cats, and an accountant who helps me update my books a few times a year.

If you're new to option trading, I strongly recommend that you learn everything you can and stick with it for the long term.

Drink up all the education you can, figure out who to listen to (as well as what really works), and -- most importantly -- make option trading an integral part of your daily wealth routine.

The pay-off? Three years from now you could be 100% financially secure and living the life of your dreams.

Author: Arnold Brown
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Day traders often seek out stories of people who have had amazing success in the markets for guidance. They flock to biographies of financial celebrities hoping to gain insight and tips to get an edge on their own careers. One such celebrity, Warren Buffet, is often seen as a role model, and a recently released book on him, The Snowball: Warren Buffet and the Business of Life, will no doubt increase his influence. But while Buffet has plenty to teach us about investing, his lessons are less applicable to day traders because of the kind of investing strategies that he uses. I'm not at all discounting Buffet's success, but I do want to stress that traders need to understand the difference between the strategies that will work for them and Buffet's kind of investing.

Warren Buffet is, of course, a legend. Before he gave almost his entire fortune to charity, he was the richest man in the entire world. In 1962, when he began buying stock in Berkshire Hathaway, a single share cost $7.50. Today, Buffet is Berkshire' chairman and CEO, and one "Class A" stock is worth more than $118,000.

Buffet is doubtless a financial genius, and many try to follow his advice to become rich. But you need to understand that he is not a stock trader. His investments are not in stocks. Instead he invests in companies.

Buffet has tried to make this clear himself. As he once said, "If, when making a stock investment, you're not considering holding it at least ten years, don't waste more than ten minutes considering it." He has also said, "[s]hares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner." Based on these principles, he developed what he calls the Inner Scorecard, according to which he invests in "wonderful businesses" that fulfill, amongst others, the following criteria:

· They have a good return on capital without a lot of debt.
· They are understandable.
· They see their profits in cash flow.
· They have strong franchises and, therefore, freedom to price.
· They don't take a genius to run.
· Their earnings are predictable.
· The management is owner-oriented.

But Buffet goes even further, looking for "subjective" clues to a company's long term profitability. For example, it is said that once he purchased a company whose owner counted the sheets on the rolls of 500-sheet toilet paper to see if he was being cheated. (It turns out that he was.) Or, in another case, Buffet considered investing in a company whose owner painted only the side of the building facing the street in order to save money. And, in 1983, Buffet acquired the Nebraska Furniture Mart because he liked the way its founder, Rose Blumkin, did business: as a Russian immigrant, her strategy was to undersell the big shots, and she was a merciless negotiator.

There's a clear pattern here. Before Buffet invests in a company, his team analyzes everything: the financial data, the management (including their biographies and sometimes even their personal spending habits), the company's vision, mission and principles, the human resource policy, and much more. Then he buys enough shares to actively influence and change the company's strategies and policies. As he said "Shares represent part ownership of a business," and he acts on that idea once he is invested in a business.

Warren Buffet may well be the world's greatest investor. He buys and sells businesses, and he uses the company's shares to buy himself part ownership of a business. But Buffet is not a trader, and his strategies for success are completely different from those that make money for day traders. He does not analyze market trends, looking for movements. Instead, he looks at a company's fundamentals and decides whether he thinks that company can grow over the long term. It's important to keep this distinction in mind if you want to make money in the market. A day trader may well admire Warren Buffet, but he will have to look elsewhere for a model.

Author: Markus Heitkoetter
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There are significant advantages in trading an index over individual shares.

Here are seven of them:

1) When trading an index you are trading a more reliable indicator than when trading a share. The share price can be manipulated but it is harder to manipulate an index. The reason for this is an index consists of a number of different companies that represent billions of dollars. The Dow Jones Index (DOW) consists of only thirty companies, but they are thirty of the top companies in USA. If they go broke, the USA is bankrupt overnight. This will not occur because only companies in good standing are represented in the index. If a company does not comply with the conditions to be included in the index, it is removed. Besides the DOW, there is the S&P 500, the FTSE 100, the Eurostoxx 50, Nikkei 225, the Heng Seng, the SPI 200 and many more. All these indices are comprised of quality companies.

2) Because these indices represent quality companies there is considerable volume being traded in the derivatives as funds and large private investors hedge their investments in individual companies.

3) When investing in a company, you need to be like Warren Buffet and make a business decision based on sound fundamental facts. This means doing research into the company, the competition and the industry. It also pays to have an understanding of the management, as well as much inside information as possible. This requires quite amount of time, Unless you are going to buy a business, or intend to be a major investor in a company, there is really no need to invest time and energy in researching and seeking out this information, when all you have to do is understand how to read a chart.

4) An index can be traded during market hours and outside market hours. Because of this indices can be traded virtually around the clock. This gives a lot more flexibility for the smaller trader, who cannot buy and sell shares outside market hours.

5) The indices enable you to get greater leverage for your dollar, which means you are able to make more money on a market move. In fact, using cfds you can get leverage up to 2000%. What this means is you have access to $200 leverage for every $1 outlaid. With $100 you are leveraging $2000 and this can mean significant profits. Instead of having to find $200,000 cash to play an index with to make a living, you can have the same purchasing power $10,000 because of the power of leverage. This means that you can trade an index with $10,000 and invest your $190,000 elsewhere. Or if you do not have $200,000, at least you can have the same trading power with only $10,000,

6) There are no issues about short selling indices. You can just as easily take a position where you can make a profit in the shares going up or going down. There is no complicated formula. There is no need to borrow shares. There is no need to pay interest. When there were bans put in place on short selling shares, there were no bans on the indices. This is because the indices do not affect the sharemarket, instead they reflect what is happening in the sharemarket. When share prices fall, then the value of the indices fall with them. The indices themselves cannot be manipulated, since they rely on the underlying sharemarkets to determine their value.

7) The indices provide a better reflection of market psychology than individual shares. Individual shares may rise and fall with the general mood of the market, but they will all not rise and fall in the same way. Different shares in the same industry sector will vary in performance, but this will not affect the index because it reflects the overall position, so there is no concern about being on the worse performing stock. This means all that a trader needs to do is understand how to read a chart that reflects the psychology of market participants and utilize money management techniques.

Author: Happy Riches
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If you are a smart investor, you rely on a lot more than just a tip from your uncle before you invest in a stock. Since penny stocks have the reputation of being slightly more risky than regular stocks, most people need quite a bit of evidence that a penny stock is going to be a sound investment before they are willing to part with their hard earned money. Here are a few of the major signs you want to look for before you fork over your cash and invest in a hot new penny stock.

Buzz

Since the technology that governs our 24/7 world is always updating, always refreshing and always searching for the next big story, it is almost impossible for any stock, penny or otherwise, to hit it big without a groundswell of buzz preceding it. Before the news organizations can begin talking about Penny Stock A, you hear people on websites chattering about it, your broker may call you and alert you about a possible investment opportunity or you may hear something from a friend at work. The problem with buzz is that there is nothing concrete behind it, only speculation. If you are making your stock investment decisions based solely on buzz, than you need to take a second look at what you are doing before you end up in the poor house.

News

The next signal a penny stock to watch is going to increase in value is a flood of good news. When you look at the continuum of stock evolution, concrete news is always the next step along the line after solid buzz. The rumors that a stock was about to receive government approval come true and, often times, penny stock prices begin to take off that very day, but sometimes, there is a small delay as more and more people realize the potential this penny stock has. This is a good time to get ready to buy.

Spike In Activity

While it is always good to get in at the point where the stock price is the lowest, it is also risky because you never know if you are going to be the only one buying when everyone else is selling. Once you begin to see genuine forward momentum on a stock that didn't have it before, than you know it is a good time to buy. The trick here is to get in just as the stock price begins to rise. In the olden days, stock tickers weren't quite what they are today. Now, monitoring stocks is much simpler than it was before, so getting in while the getting is good is easy.

Universal Praise

If you see that your penny stock is making headlines in the financial press and receiving universal praise from analysts across the board, the stock price has likely already begun going up, but it isn't too late to get in on the fun, especially if forecasters are predicting big things for your penny stock in the future. There are many signals that a penny stock to watch is going to be increasing in value, the key is to know when to buy and when to show restraint.

Author: Brent Crouch
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Penny Stocks are sometimes considered a 'risky' investment. However, if you know how to look for stocks, then you can eliminate the risk. Then what is the key to penny stock picking? I will start off by saying that research is perhaps the best tool to help you find successful penny stock. However, if you are new to investing, you might have some trouble going about this "research".

When investing penny stocks you have to be on top of your game. You need to be ready to buy and sell at the drop of a dime. How will you know when to buy and sell? When you research, you look for trends in a stocks history. By looking at this trend you can figure out what the stock is going to do. Whether the value is going to go up or down. Sounds pretty simple right? If going about this research sounds like a hassle to you, that is because it sometimes is. It can be tedious. That is why I recommend using two different resources to help you with your penny stock picking.

The first is a penny stock newsletter. When you subscribe to one of these, they will send you a number of stock picks, which they have researched and predicted will be successful. For the most part, they are pretty accurate, because the research is done by professionals that have a ton of stock trading knowledge.

The second is a stock picking program. These are computer programs that will assist you in your penny stock picking. They work by rapidly researching the stock market looking for successful trades. This is perhaps the most accurate way to find stocks because the amount of research they perform is so much faster than any person. They will time and time again provide you with successful penny stock picks.

Penny Stock Picking can be a tedious task especially if you aren't a pro. If you want to greatly increase your chances of being successful, and decrease the amount of work I suggest subscribing to a newsletter, buying stock picking software or both.

Author: Josh Lewis
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After hour stock quotes and other information pertaining to the stock market are available to traders and investors, thanks mainly to the Internet which provides updated trading activity data, news, analysis and other information that traders and investors need.

After hour trading gives institutional investors and those with high volume the opportunity to trade beyond the usual 9:30 AM-4:00 PM regular market schedule. These investors can participate in late trading through Electronic Communications Networks or ECNs.

According to market observers, activities during after-hour or late trading are good indications of what market activities would be like in the regular hours. In addition, late trading can also give traders the advantage of being privy to trends and movements in markets outside of the United States since these foreign markets open after the regular hours of trading in the U.S. have ended.

However, there are also downsides to this type of trading; one of which is the alleged inferior stocks being offered during these hours as compared with what's available during regular hours. Less liquidity is also said to characterize trading beyond the 4:00 PM regular closing time and prices are likely to move more quickly than what's usual in the regular hour market. These risks have made most after-hour traders use limit orders to lower their chances of incurring losses.

Ticker tape or stock quotes

Ticker tapes pertain to the rolls of paper that contain information such as ticker symbols that represent the stocks and the price and volume of securities being traded. Ticker symbols are a group of letters that identifies the company involved in the trading. The number of letters varies depending on the exchange where the stock is being traded. These ticker symbols and other pertinent data are then relayed to investors. Basically, after-hour ticker tape or stock quotes are such information provided during late trading hours.

There are a number of Web sites that offer online information about stocks that are trading in the after hours; some of these are Nasdaq, CNNMoney, Midnight Trader and Market Watch. Aside from the necessary information needed by investors and traders, these sites also provide data analysis, news and other trends that can affect the trading market.

After hour stock quotes and data are not always up-to-the-minute. NASDAQ.com, for example, has a 15-minute delay in terms of providing stock market updates. However, this has not discouraged traders from participating in late trading, particularly individual traders, mutual fund traders and those with huge volumes of shares to trade.

Author: Dean Forster
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Everybody seems to be amazed about the stock market. People often hear success stories of individuals trading in stocks. People can become millionaires overnight just trading in equity. That is such a dream to all us of - to be wealthy. Some of you might be very curious how it works. You may also want to be a trader yourself. Don't be in such a hurry. You must first understand the stock market. Just like any other business venture, you must study the environment of the industry before venturing. Learning the nature of the stocks and the market itself is to your advantage.

The stock market is considered an equity market where in company stocks and derivatives of company stocks are traded privately or publicly. New York Stock Exchange is the largest stock market in the world. Participants are usually big corporations and even individual traders like wealthy businessmen. The traders can be found in any parts of the world. Professionals usually handle their dealings. It is such a huge marketplace which can accommodate everybody interested. Why it is that stock market is such a hit? The market is very important for some companies who want to raise additional money. Businesses can be publicly traded thus the additional capital they want can be raised by selling their stocks in the public market.

In addition, buyers can easily sell because the exchange provides liquidity. The liquidity aspect of the exchange is what makes it attractive to investors. If you want to invest, obtain basic knowledge in investments. What you will be doing is investing- money is involved in the transaction. The money can either be in small or big quantity. Investing in stocks is one way of achieving your goals of being financially independent. If you know how to deal with stocks, you'll surely hit the jackpot. Bear in mind that the risks involved in here is quite high. The market is a volatile meaning; there is no assurance of you getting profits all the time.

Stock prices can either go up or go down. You should be very keen about the stocks you'll be investing. It would be better if you will run down all the companies included in the list. You must choose companies with excellent financial performance. The stock market jargon should be also familiar to you. Some terms used can be very confusing if you don't have any idea. The proper trading procedures should be noted too. Reading financial books can be a great help in analyzing financial statements of companies. Financial statements will give an idea to the investor about the financial position, performance, cash flow and changes in equity of companies.

Being knowledgeable about statements will help you choose which companies to invest for you to earn money. Trading in stocks is not always a "bed of roses". There will be times when you'll be trading at a loss. Succeeding in the world of stocks is a matter of discipline and having the right techniques in trading. Once you'll know the secrets of the trade, earning becomes easy. Why don't you try it, maybe you'll earn your first million just by trading stocks.

Author: Rick Goldfeller
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So you've decided to sort your finances out some way or another, this might be risking your hard earned cash by investing in potentially profitable ventures, or a simple savings plan, which ever it is, make sure you make use of the tool that investors call compounding.

Compounding is the affect of leaving enough of the initial investment where it is, so that it will keep growing year on year, take out to little, and there is no point investing in the first place, you'll get bored and blow the whole lot. On the other hand, take out to much and what was compounding and starting to give you a small return year on year will be gone for ever.

There are two main traps that are associated with storing money:

1. Not letting the benefits of compounding take place
2. Not reaping the benefits of compounding

I will go as far as assuming that the number 1 relates to the average savings account. You decide you want to sort your finances out, whether that is a sideline, to pay off a loan, or to even pay off your mortgage. You start out with enthusiasm, and keep saving you aim of £50 per week.

What happens then is most savings accounts start to see a nice balance accruing, which is gaining minimal amounts of interest every year, the owner of the funds realizes that the £3,500 in the bank, that they have saved, on top of the sale of their current car, would get them that convertible they have been dieing for!

They proceed to blow their savings and never have the will power to read an article like this again!
Number 2 is slightly different. Most investors are so hung up on making money; they never structure a plan that will allow them to release equity from their portfolio for themselves. Sure they increase the value on a property, sure they make wise investments in businesses, but all they do is re invest and re invest until there is nothing left to invest in, or there is no time for them to reap the benefits of the empire they have created.

Use an effective money management strategy that suits you. Set goals for what you want to achieve.

If we use this as a following scenario:

If you made a series of investments over five years, which were on the same date, once every year, and created a 10% return every year on average, £5,000 investment every year, you'd have £30,525 in the final year of your investments, after investing £25,000.

This in its self isn't particularly impressive, but at this level, you can start to reap your rewards slowly, or carry on investing. Your profit for year 6 would obviously be £2,500 meaning you could take £104 per month as an income, and still be compounding and increasing your income every month for life, as your compounded bank balance increases, you increase your 'payment' or 'profit' to yourself.

Information about short sales is hard to come by even though in many parts of the country, the real estate market is littered with them. A short sale is when a person owes more on their home than the home is worth, and the bank is willing to sell the home for less than what the owner owes.

Until a few months ago, short sales were a dead end for buyers. In April 2008, approximately ten percent of short sales that received offers ended up selling. Back then, banks were not willing to own up to the staggering losses that they were about to take. Most companies were still in public denial about the looming real estate recession.

Times have changed. Banks are not only admitting they are losing money but they are running to the government for bail outs as well. Even though banks are now willing to negotiate, it pays to remember that banks are not the same as private sellers and they do not play by the same rules.

Here is a short list of things to remember when trying to buy a short sale.

- You must have patience Banks can take months to make decisions. This is especially important to remember when it comes to getting you mortgage. If you are buying a short sale, it may pay to lock the rate for a longer period of time.

- Expect to negotiate Know what price you are willing to pay up front and stick with it. Not all short sales are good deals. When the bank sends you a counter offer, consider the details very carefully and reevaluate based on current market conditions.

- The banks are companies and are not as emotional as private sellers This can work for you or against you in your transaction. Since banks are out to make a profit, they think in terms of the bottom line. They don't care as much about an individual sale as a private owner would. On the other hand, they are expecting to take a loss on the sale of the property. In fact, this loss is now part of the bank's business plan.

- Find out if the short sale has already been approved by the bank If it is approved, your chances of success are much higher. This is particularly important because most banks will not allow a short sale unless the seller is behind on their payments. Short sellers who can make their payments but are just trying to avoid losses will be disappointed when the short sale gets rejected. If the short sale is approved, that means the bank has gone over the seller's financial situation and believes it is in the banks best interest to sell the home for less than the seller owes.

Author: Andrew Sturtevant
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"Don't put all of your eggs in one basket!" You've probably heard that over and over again throughout your life...and when it comes to investing, it is very true. Diversification is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should too!

Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market accounts, or even in some real property. The key is to invest in several different areas - not just one.

Over time, research has shown that investors who have diversified portfolios usually see more consistent and stable returns on their investments than those who just invest in one thing. By investing in several different markets, you will actually be at less risk also.

For instance, if you have invested all of your money in one stock, and that stock takes a significant plunge, you will most likely find that you have lost all of your money. On the other hand, if you have invested in ten different stocks, and nine are doing well while one plunges, you are still in reasonably good shape.

A good diversification will usually include stocks, bonds, real property, and cash. It may take time to diversify your portfolio. Depending on how much you have to initially invest, you may have to start with one type of investment, and invest in other areas as time goes by.

This is okay, but if you can divide your initial investment funds among various types of investments, you will find that you have a lower risk of losing your money, and over time, you will see better returns.

Experts also suggest that you spread your investment money evenly among your investments. In other words, if you start with $100,000 to invest, invest $25,000 in stocks, $25,000 in real property, $25,000 in bonds, and put $25,000 in an interest bearing savings account.

Author: Jamulco Setiawan
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Cash flow notes for sale encompass a variety of opportunities for both buyers and sellers. Currently, more than 60 types of cash flow notes exist. The most common include real estate notes, land contracts, business notes, structured settlements, and seller carry back notes.

Cash flow notes used to document real estate transactions are secured by tangible property. Nearly any type of property can be used as collateral including single and multi-dwelling properties, pre-fabricated or mobile homes, and condominiums. Investing in real estate notes can be somewhat risky. Experts recommend consulting with a real estate attorney to ensure proper legal documents are executed. Considering today's recessed economy and housing crisis, careful consideration should be given when investing in real estate notes.

On the flip side, keep in mind that real estate has always rebounded from previous economic disturbances. Investors willing to wait it out could potentially yield a hefty return on their investment. Business notes are another popular choice amongst investors. The three primary cash flow notes in the business sector include Factoring, Purchase Order Funding and Seller Carry Back Financing. Each uses business assets as collateral for funding.

With Factoring, account receivables owed to the business are used to secure the note. Receivables are sold to a funding source, known as the 'Factor'. The Factor can be a private investor, group of investors, bank or other lending institution. Purchase order funding uses the same principals as Factoring. The only difference is upcoming purchase orders are used as collateral. Seller carry back financing is quickly moving to the forefront of cash flow notes for sale. Seller carry back can be used to fund real estate or business transactions. With the current credit crunch, more investors, business owners and property owners are turning to owner financing. Seller carry back goes by many names including "owner will carry" and "owner financing".

In essence the owner carries all or part of the financing to close the deal. Some owners finance 20-percent of the purchase price, while others will finance 100-percent of the deal. Seller carry back notes can be sold to investors. For instance, Sam Smith owns a business valued at $1 million. He sells the business to Joe Jones and carries back 50-percent of the note, or $500,000. Sam Smith can then sell the note to a private investor and assign payment rights over for the entire note, or part of it. Chances are Sam won't receive 100-percent of the note value. However, he will have access to a lump sum of cash instead of waiting years for repayment. Real estate investors might offer Sam $750,000 toward his $1 million cash flow note. The investors now carry the risk and must collect the payments. They also must wait for repayment of the note unless they sell it to another investor; which is unlikely. In the end, the investors will earn a profit of $250,000, plus any new property value.

Many investors appreciate the value of structured settlement cash flow notes. Structured settlements are used to compensate individuals who have been injured due to negligence, as well as lottery jackpot winners. Structured settlements are paid out through annuity payments backed by life insurance companies. Annuitants (individuals who receive payments) can sell all or part of their structured settlement to an investor. In order to sell annuity payments, Annuitants must receive authorization from the court.

A true need to sell the structured settlement must be proven to the judge. Structured settlements are generally arranged to provide individuals with consistent cash flow to pay for medical expenses and healthcare. Judges usually will not approve the sale of structured settlements if they feel it will cause financial harm to the Annuitant. Buying and selling cash flow notes can be beneficial for both parties. However, it is imperative to work with credible professionals and obtain proper legal documentation. Doing so will help to ensure profitable investment opportunities.

Author: Simon Volkov
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Investments can be a big decision, and only worth it if they provide a high return. This is why so many people ask if it is possible to get a low risk investment, and the answer is yes!

Property has always been a high return investment with low risk if you know where to buy and find something affordable. There are now many Americans investing in properties in Costa Rica due to the fact that there are large growth rates as well as a low entry cost from around $30,000-$60,000.

You might be unsure, but here are a few reasons why this is such a low risk investment. Firstly, the growth rates of the last ten years have stood at around 300% on average. This means that many people have been able to double their money. Not only this, but the properties of Costa Rica cost up to 70% less than properties on the south coast of America.

Another great reason why you might choose this as your investment is due to the fact that you can really enjoy it, using your property as a holiday home if you wish, or renting it out whenever it is not in use. Costa Rice itself is a beautiful location, cheap to live in as well as containing some great tax advantages, scenic places of interest, educational institutions and much more!

A big question that many are starting to ask is will prices continue to increase? All evidence shows that yes they will, and there is huge demand making more and more Americans jump on board this unique investment opportunity.

The best investment opportunities at the moment include locations near the freeway to the major cities, around the general location of a new international airport that is being built, or next to the largest marina of the country. Choose an area such as this and you can get your investment before everyone else learns of the great opportunity.

Location really is the most important factor here, so choose wisely to get the most out of your investment as you possibly can. This is a solid low risk investment opportunity but does require you to do some research before you take the plunge. However, this could be the opportunity that you have always dreamed of so start thinking now about how you could use that dream home in Costa Rica and what you might do with the money that you make when you eventually sell this property on.

If this sounds like a great opportunity then you can either choose to go it alone or get some advice on your investment, such as where to buy, how much to invest and so on. Do a simple internet search and you can learn about those willing to help, as well as learning about the local area itself. This is not like investing in stocks or mutual funds, this really is an investment that you can enjoy without all of the associated risks!

Author: J Nolan
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Building a solid stable financial future includes ensuring we keep more of what we make. But how much are we actually keeping when we earn in today's dollar? Due to greater and greater monetary injections of currency into the economy, the value of the dollar continues to lose its purchasing power for the majority of the people in our economy today, save for a precious few.

Gold and other precious metals have an inverse relationship to the value of the dollar and gain value, however, and provide a solid hedge against the deflating value of the dollar. Utilizing the value of gold as a hedge against inflation is a sure way to protect the value of your hard-earned money for both now and the future. Protecting your assets by investing in gold provides both you and your family with the assurance that regardless of how low the value of the dollar falls, your investment value will be maintained and increase with time. By investment in gold coins in particular, the value of earned income and the stability against future value decreases provide both financial security and sound investment strategy.

With proper execution and the right business vehicle to facilitate the financial shifts necessary to enact lasting changes, hedging your future with gold coins can provide not only an opportunity to amass wealth but in a relatively short time frame, allow for a complete security hedge to be grown around your assets. Once this security fence has been erected around your assets, the experience is a feeling unlike any that can be expressed with mere words.

Author: Dave Leresche
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Just about everyone would love to get rich quick, but finding a way to do so is not always easy. One way of earning a lot of money in a short time is through a hyip program. Hyip is short for high yield investment program and it basically does what the name says. A hyip investment will generally bring a much higher return on money invested than what is considered to be a usual rate.

Of course not every hyip program is good and there are some that are more legitimate than others. Finding the best hyip is not always an easy task and in order to do so you will need to do a lot of research on the company before making the final decision to invest money. However, it must also be kept in mind that luck and work on your part may also play a big role in how successful your hyip investment will end up being.

Another way of determining the best hyip is to read their terms of service and understand what they promise and to see if it is something that is feasible. Reading various forums on hyip is also a good thing to do before actually putting money into a certain program. There are often reviews of the hyip available now and many will tell you what they think is the best hyip to join. Since these writers have firsthand experience with the programs you have an even better chance of making the right investment.

A hyip monitor can also be a great help when trying to get the most out of a hyip investment. Going to a hyip monitor website can give you an idea of which hyip are the best available. You may also find a new hyip program that seems promising and if you get in fast, you can even increase the return on your investment. A hyip monitor is not just good for finding a potentially good program, but also to promote them. By creating your own hyip monitoring website you can advertise for the programs you are already a part of and by doing so will also gain referrals.
A good hyip investment can make you a lot of money, but since there are so many programs available you will have to think things through carefully before taking action. Taking the time to learn about a particular hyip program is not wasted since you will soon see a profit.

Author: David Au Johnson
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Moving averages are used very extensively by trading professionals in stock and commodity markets. The importance of the moving average can often be misunderstood. Many traders and market makers use moving averages to determine support and resistance points as well as changes in the direction of a market or stock.

First, lets back up a bit and define what a moving average is. A moving average is the average price of a stock or commodity for a pre-defined number of periods that changes, or moves, when a new period is added and the oldest period is dropped. For example, if you are using a 14 day moving average you would add up the closing prices for the last 14 days and divide that number by 14. On the 15th day you drop the oldest day and add up the last 14 days and divide by 14 again. Now you have two data points. This continues everyday. Fortunately today we have computers that do all the hard work for us, all we have to do is tell it how many periods we want to use and it's done in an instant.

A period can be defined in days, weeks and months. It can also take the form of minutes if you are day trading. So the question becomes, what is the best period to use? The common periods are 9, 14, 21 and 50, but there are many opinions about this and individual investors may have their own timeframe they use that works best for their system.

So, how do you determine what number of periods to use? One way is to choose an average that provides support to reactions, especially for the first reaction after a trend change.

For example, say a market maks a low, then rallies for 10 days, then pulls back for 5 days before turning higher and taking out the high of the first 10 rally, thereby confirming the birth of a new uptrend. The correct average would be the one that offers support at the 5 day low. An average that is too long would be slow to react and would not provide support at the 5 day low, theyby missing the change in trend. An average that is too short would find the price crossing it two or more times and not useful in providing support trend information.

It is important also, to use short, medium and long term moving averages in your charts to help define support and resistance areas and changes in trend for different time periods.

Author: John C Morgan
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High yield investments need not necessarily be high risk. If we look at the risk element rationally it is easy to see why risk exists and if you can do that, and eliminate risk, then you can shoot for returns in excess of 100% or more providing you maintain your risk prevention measures, so lets take a logical look at risk.

A beginner investor can easily out perform the stock market and historical real estate returns. The one thing beginner investors have in common is a small seed capital account. The biggest danger for beginner investors is not that they will make small returns, the biggest danger is that they will lose their seed capital.

A typical high risk high return venture could swallow up their capital and fail within a very short period of time. The thing all investors need to come to terms with is that investment itself is risky by its very intrinsic nature.

To invest you have to physically hand over your money and in that act, in surrendering your money to another, that is exactly the nature of the risk you must assess. When you hand over your capital to another, you actually do something significant. You lose control. Once your capital is out of your account and into anothers, you are now in a passive position of surrender. When you relinquish that essential element "control" you entertain risk.

The way to eliminate risk entirely is to either not invest at all or do something else. That something else is maintaining control of the value of the money. When you buy any tangible object where you can control the value that is represented, you can manipulate the value by cleaning or repairing or just presenting the object to a different market. Not only that but you have the object in your possession so ultimately you have completely eliminated risk if you do this. A typical example of this type of investment is a house, but anything can be an investment if it affords you a return. A car, precious stones, luxury boats, anything with a ready market.

If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read about Martin Thomas in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too.

Author: Terry Hart
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To generate high yield returns from investments you have to consider the risk element before proceeding and this goes without saying, but many investors are aggressive about their returns and few are acceptably aggressive about eliminating risk. Indeed, that is exactly where high yields are possible. If you know how to acceptably eliminate risk, you can completely dominate your investments and of course get incredible compounding gains.

Many investors who discover this act of aggressively targeting risk rather than returns become wealthy very quickly. Knowing how to reduce and eliminate risk leaves you free to make as big returns as you require. Imagine compounding your capital by 1000% for just a few years. Starting with even just $100 dollars you could amass a fortune very quickly.

So the point of investing is not finding high yield investments because they are everywhere. The point is knowing how to eliminate risk from your investment. Ultimately the real nature of risk when it comes to investing is control and loss of control of your capital.

It may sound obvious when stated, but ultimately, if you can invest without losing control of your capital you are going to make a fortune because of course it is a alchemy trick. It is the holy grail of investing. It is like having a genie give you three wishes. Because if you can maintain control over your capital even after you have spent it, then of course you will manipulate it to be worth more. That is the point.

A way to do this is to buy and sell tangible objects. When you buy a tangible object below its intrinsic value, you can manipulate the actual value that your money is represented by, in the form of a ready market willing to give you money for it at any time. You can manipulate value by cleaning or repairing or improving and that is how you can entirely eliminate risk. Cars, boats, planes even small company's can be opportunity investments.

If you need money now, like I mean in the next hour, try what I did. I am making more money now than in my old business and you can too, read about Martin Thomas in the link below. When I joined I was skeptical for just ten seconds before I realized what this was. I was smiling from ear to ear and you will too.

Author: Terry Hart
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Gold is always considered as a good investment instrument, especially against high inflation rates and economic problems. What make this precious metal a good investment instrument is its relative price stability and almost constant growth rate over time. More over allocating a portion of your portfolio to gold ensure diversity of your portfolio and a hedge against portfolio risks arising from price volatility.

There are many different ways, including both are direct and indirect, available for invest in gold. Every method have their own merits and demerits and there are many factors to be considered before adopting to any of the way, including your portfolio size, risk tolerance, risk capital involved, investment experience and active portfolio management strategies you are following. Some popular ways of investing in gold are mentioned here with there merits and demerits.

1. Purchasing Gold Bullions.
Include investing in certified and standardized gold coins and gold bars. The idea is simple, you will get the yellow metal worth the amount you paid and should offer you profit when you sell that after some time. You will have direct ownership of the precious metal. But demerits include insurance and storage costs. Inflation and price change can produce worse effects on your investments.

2. Jewelry
This is a very good way of investing in gold only if you are crazy about these art pieces. From an investor's point of view, who wants portfolio growth, investing in gold jewelry is a costly option. Jewelry items are often far more priced than underlying metal value. But investing in jewelry is very popular in countries like India.

3. Gold Exchange Traded Funds (Gold ETFs)
ETFs are becoming highly popular trading instruments. Gold ETFs, which hold bullion as their underlying asset, is an excellent indirect investment. ETFs are traded on exchanges in the same manner as stocks and their portfolio is fixed. They are cost-effective liquid trading instruments, meaning you can purchase or sell them when ever you want. Investing in gold ETFs do not require investment knowledge but you have to look for the fund management policies first to make yourself clear that 'it is going to work for you'.

4. Gold Mutual Funds
One another indirect way of investing. Mutual funds buy, hold and sell stocks of gold stocks - stocks of gold mining and trading companies. Investors can buy shares of these mutual funds for future gains. Not much investing knowledge required but the investor must choose from different mutual funds following different asset management strategies.

5. Futures on Gold and Gold Options
Futures on gold is perhaps the most cost-effective way of investing in gold. With a small capital investment you can control large sized futures contracts, by effectively utilizing trading margins. Trading futures also include low commissions. Gold options are also powerful and cost-effective investing instruments, which can be used to own desired quantity of yellow metal in future, and can also be used to hedge price changes of bullion/jewelry/share that you hold. But investing and profiting from both futures and options require good trading knowledge and experience.

6. Investing in Gold Stocks
Investing in stocks of gold mining and exploring companies is an indirect way of investing. But it requires good trading knowledge and stock screening skills.

7. Gold Accumulation Plans
These are accounts setup for investing a fixed amount of sum to buy the precious metal every month. When the accounts are closed, investors can own the gold as bar or coin. The advantage is that as fixed amount of money is allocated for each month, more metal can brought in price fall and less in price rise. But this is a long-term process (minimum one year) and you should have steady monthly income to feed these accounts.

Author: Dan Pipitone
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One of the best things the individual investor can do is start looking for ways of making money with offshore banking. Offshore banking gives you an opportunity to gain independence from your domestic country and allows you the ability to tap into the global market. The broad capacity of global market opportunities means greater chances to find wealth. Many developing countries are eagerly searching for investment dollars and offer great rates of returns for your money. By using an offshore bank as a vehicle, you can take advantage of these situations ranging from ways to protect your assets through asset protection trusts to ways to earn more money through offshore mutual funds or an offshore forex account to name a couple. However, these are just a few ways of making money with offshore banking. Here, are a few others that are very popular with investors:

A wealth of investment options:

Making money with offshore banking can be very easy when you consider the wide variety of investment options that are available to you once you use an offshore bank account. By opening an offshore bank account you are no longer handicapped by the rules and regulations of your home country with the exception of its tax laws. What this essentially means is that you are now free to invest in other countries' companies, stocks, bonds, offshore mutual funds, currency through an offshore forex account and other investments. In addition, you can asset protection trusts to help shield your profits from creditors. The result is that not only do you have the opportunity to help diversify your existing portfolio, but you also have the luxury of taking advantage of hiccups in the market or other trends. These can be great ways to make money quickly and easily.

Tax avoidance:

Another benefit for many people on how they are making money with offshore banking is through playing defense of their money. Many offshore banks require little to no taxes on your money, but also offer you better timing options for when to file your returns. In time delays can translate in you getting benefits of time value of money to simply make more during this float time. Although most investors will be unable to avoid income taxes for these accounts, they are often able to get better timetables when the taxes are paid. Plus, there are some offshore trusts that can help shield your money from other taxes like the estate tax.

Higher returns potential:

Since offshore banks do not have the same level of regulations as domestic banks, this means they can operate at a much lower rate. This lower cost of doing business usually leads to higher returns turned over to its investors because the banks want to encourage more foreign investment. This is great news for any individual investors looking to make higher returns than they can at home.

By keeping ideas like these in mind, it is easy to see how so many are making money with offshore banking. If you haven't thought of using an offshore bank account in the past, we strongly recommend you look into them further. Whether you are looking to protect your money through asset protection trusts or looking to make money through various options like offshore mutual funds or an offshore forex account, you will find a wider array of options in offshore banks.

Author: Frank D. Miller
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There are many ways to evaluate a company, but one of the ways is by looking at the P/E ratio. A P/E ratio will help make your decision. If you're not careful, it can come back and bite you in your wallet.

The P/E ratio - the price of a stock divided by the company's annual profits per share - is a guideline used by most investors to value equities. It tells you how much you're paying for each dollar of earnings. Usually the lower the P/E, the cheaper the stock will be.

While P/Es are based on estimated earnings (also known as forward P/Es) are common, they're not always the numbers that are used, some analysts use past earnings. While others may rely on "current year" estimates, which are a mix of actual and projected profits for a given year.

Which is most useful? It depends on what type of company you are valuating Any company that is economically sensitive you would need to use forward P/E, since the company's outlook could change quite quickly. Just look at how the home builders were effected. Yes its risky and analysts are often wrong, but looking backward can be just as dangerous (past performance doesn't really mean anything for the future).

So when you're trying to figure out which P/E is best to use for the different stocks that you may invest in. Make sure you know which measure - future, trailing or current year - you're dealing with. Then, when valuing one stock vs. another, be careful to compare apples with apples. Many times if you're not careful, you could lose a lot of your capitol.

Author: Billy Akerman
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Are you interested in building long term wealth in the stock market but not interested in trying to figure out which stocks to pick for your portfolio? There's no need to worry. You can still capitalize on the power of the stock market without learning how to select individual stocks for your portfolio. All you need to do is learn how to invest in mutual funds, give yourself time to grow and you can build a net worth of over a million dollars over the long haul with mutual funds.

When you are investing in the stock market, timing is everything. You absolutely don't want to sit on a stock that is dropping in price. With mutual funds it's a completely different strategy. The best way to create wealth when investing in mutual funds is to employ a buy and hold strategy. Trying to time the market with mutual funds the way you try to time stocks will only result in massive frustrations and consistently losing money in the process.

So what type of mutual fund should you purchase? One of the best types of mutual funds to invest in is an index fund. An index fund is a mutual fund that seeks to replicate the performance of one of the general market indexes, such as the Dow Jones, the S&P 500 or the Nasdaq Composite Index. Why an index fund? Believe it or not, 85% of the mutual funds available in the open market today fail to outperform the S&P 500 index. As the old saying goes "if you can't beat them, join them!" Purchasing an index fund allows you as the individual investor to get a full exposure to the general market trends, providing you with the ultimate form of diversification.

Some financial advisors recommend that you diversify into multiple mutual funds. I disagree. A mutual fund by nature is already diversified unless the fund you select is a fund that is geared towards companies in a certain industry, such as technology or pharmaceuticals. Why would you diversify your diversification? I've never understood that advice and I suspect that this advice was giving out for the purposes of increasing revenues for the mutual fund companies by being able to charge different management fees for different funds. Unless you have over a million dollars invested into mutual funds you don't need anymore than 1-3 mutual funds to invest in.

The best strategy for investing in mutual funds is to start off with an initial cash investment. Ideally you should start off with at least $10,000 so you can enjoy maximum growth. However, anything is better than nothing. Find out what the minimum amount is that is required for the mutual fund that you are interested in investing in. Once you save up the initial amount you can go ahead and start off with that. You then want to add to your initial amount on a monthly basis. Understand that it takes 10, 20 even 30 years of investing in mutual funds before you can build a million dollar portfolio. However, if you have the patience and the discipline you can make it happen.

Author: S Mcleod
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Want to make money on the stock market? In that case you must plan wisely and execute the plan carefully. No doubt about it - stock trading is an option for the wise investor to make fast money. Financial institutions use stock trading to maximize profits, but as an individual you really need to take care. The stock market and the stock trading system is made for large financial players, but with constant care you too can make money on the stock market.
The following advice will help you to make a profit while not being too risky. Obviously you could contact an investment firm, who can help you analysing stock, but the following advice will set you off to a good start.

* Analyze one stock at the time thoroughly. In what industry does the company belong? Is this industry in growth or in crisis as a general? How does the company make its money? Require and read the company's press releases, financial news and reports. Check the competitors in the market and the general trend in the industry.

* Keep a journal. Whether you decide to sell, buy or hold a particular stock make a note about the reasons for doing so. Analyze your notes and learn from them. Which decisions were good, which were bad and which were absolutely brilliant?

* Analyze and analyze again the stocks you have chosen the same way. Compare and contrast the stocks and you will gain important and valuable knowledge about the stock market.

* Build and use a brain trust. A group a like-minded friends with whom you can share ideas and thoughts. Explain why you reached certain conclusions and how you expect the stock to perform. Very often the brain trust will keep its rationale when you are not.

* Forget about emotions and loyalty (when it comes to trading). You need to be platonic and rational in your decisions, while the stocks are volatile. Review your buy, sell, hold decisions whenever new information hits the market. Are your reasons still valid?

* Reevaluate you portfolio on a weekly basis. Are you exposed to the risk you have decided to accept? Observe market trends - how do they correspond with your portfolio?

* Do not rely on media quoted rates - do not expect to be able to buy or sell at the same price.

* Remember that high valuations entail high risks.

Tools that will help you in the stock market

Information is the most valuable asset when trading stocks and for that the desktop stock ticker is excellent. The desktop stock ticker will provide you with the latest trading prices and in many cases also the latest data on the company. For real time stock quotes you need to have a paid subscription to a broker, the free desktop stock ticker does not have real time quotes, only near real time quotes, which mean a delay of 15 to 20 minutes.

Author: Mike Meyers
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When you are beginning the search for your first (or next) online stock broker, you must first decide which category of brokers you are going to choose from. You need to determine which is going to be the best fit for your trading style and the costs you are willing to pay.

There are three categories of online stock brokers to pick from. They vary depending on their service levels, trading costs and the type of access to stock information.

1. Full Service Brokers - These are mostly the traditional big name firms who offer their own research, a very broad product portfolio and a staff of stock brokers to advise you on your trades.

While these brokers offer the most service, you pay more in commissions and fees. For most online traders, they want to do most of this work themselves. To pay the extra commission for the services of their broker staff then is not worthwhile

2. Direct Access Brokers - This category of brokers is very different than the traditional stock brokerages both in terms of what they offer and who their typical customer is. These brokers offer traders direct access to market data and for making their transactions. They often have their own software that you download onto your computer to make the direct connection and there are few extra services offered.

This category is important to day-traders and others who do serious trading and where minutes and seconds can make a big difference in their success.

3. Discount Brokers - Most online traders and especially beginners choose from the category of discount brokers. They are called discount brokers because when they first started, they focused on providing the tools for individuals to make their trades, but without the involvement of human stock brokers. This obviously saved a lot of cost and so the commissions they charged were a lot less.

Today, these are some of the most well-known and visible stock brokers including e*Trade, TD Ameritrade, TradeKing, Zecco and Scottrade. As their business has evolved, they now offer more advanced services like phone-in trades, branch offices, broker consultations and research.

Author: Daniel B. Johnson
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Trust funds are becoming more and more commonplace amongst not only the super-rich class of citizens, but in average families as well. As the property value on homes increases and people make more and more money off the stock market, people are increasingly turning to trust funds for their children (and even grandchildren) as a way to preserve their own wealth, establish some financial security for their children, and minimize death taxes.

Who Benefits from Trust Funds?

Trust funds benefit not only the beneficiaries of the trust fund (usually, the children of the trustors), but the individuals who establish the trust, as well.

When a trust fund is set up for a child, the money or property is handled by a trustee-usually, someone who has experience and is responsible with handling money. Assigning a trustee to handle and control the money in a trust fund ensures that the beneficiary cannot recklessly spend all of their property.

For the parents, grandparents, or other individuals setting up the trust fund, there are numerous income, gift tax, and estate benefits that come with establishing a trust. In the case of grandparents establishing trusts for their grandchildren, they can establish a trust fund for their grandkids while they are still living, or they can arrange to have money put into a trust after their death.

What Type of Trust Fund Should I Choose?

When deciding to set up a trust fund for your child, it is important that you choose a trust fund that will qualify your investment for the annual gift tax exclusion. Currently, there are two types of trust funds you can set up (for a minor) that qualify for the gift tax exclusion:

· Section 2503(b) trust-with this trust, money must be annually given to the beneficiary while they are a minor. If your child (or grandchild) is too young to responsibly handle the money, it can be put into a separate account for them.

· Section 2503 trust-the section 2503 trust allows for all money and property in the trust to be used for the child until their 21st birthday. Once the beneficiary turns 21, all money left in the trust is given to the child, and it is their decision to either take the money or to extend the trust.

Remember....

It is important to remember that a trust fund is significantly different than a bank account. Once you put money into a trust for your child (or grandchild), you cannot get the money back-even if you really need it! Be sure to think about this decision before allocating money for a trust fund, and be sure to consult a legal professional before making this type of investment.

Author: Joseph Devine
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The best way to make investment in the gold market and get involved in it is the buying of e-gold. A person buying e-gold can use it in the same way as real gold as the price of e-gold is same as that of the price of real gold. So, buying e-gold is considered to be same as buying real gold. However, an e-gold holder is provided with the facility to move the gold value on his own through the internet. This facility is simpler in comparison to the moving of the real money. Besides, a person can easily use his e-gold to invest in other investments.

It is possible that in near future, e-gold will be considered as the worldwide money, and a person possessing e-gold will be able to make any kind of online transaction with it. At present e-gold is used for making online investments like HYIP. But experts believe that soon e-gold will be used even in the conventional investment programs. E-gold can also be used for the purchase of stock worldwide.

E-gold is basically a system of electronic payment that instead of money uses gold. This system of electronic payment is mainly used for the online buying and selling of goods and services. This system is managed by Gold & Silver Reserve Inc. The chief function of this system is to enable the payments between the account holders of e-gold. Besides, this system also makes it possible for the e-gold account holders to make payments to those people do not have e-gold accounts. Though the opening of these accounts is absolutely free, a small amount is charged for the different transactions that take place between people who have e-gold accounts.

Author: Matthew Tutt
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The economy is suffering from the credit crisis and rising energy and food prices. We thought everything would clear by the mid of 2008, but it looks like the downturn would stay with us for a little longer. Our money gets eroded by inflation daily. Zimbabwe is coming up with 100 billion dollar notes. In times like these, it is good if we have money invested, to beat inflation. When should we start investing?

The following paragraphs will focus on the optimal times to commence investing and how to carry it out smoothly.

There are two good times to start investing. One, either you start when you are still in higher education, or when you got your very first paycheque.

Only a few per cent of people do financial planning during school. Some spot the lack of financial knowledge as a reason. The others have insufficient funds to invest.

Investment or money management websites supported by the money or relevant authorities in most countries will help ratify the problem of insufficient knowledge. One can also expect good investing knowledge provided from websites of financial advisory firms. One thing is sure. Sufficient research is necessary before investing.

As for the lack of funds, some savings plans allow an investor to invest regularly about a minimal hundred dollars per month. Thus, there is no excuse not to invest, other than laziness to prepare for the future.

After graduating, if you have not started investing yet, the next best time to start will be when you have just started working. Contrary to popular belief, one does not need a whole lot of excessive cash in order to invest. Only a little will go a long way. Three to four months of cash for emergencies is sufficient. The rest can be used partially for investing.

Before one starts investing, he must know what his long term or short term aims are. For instance, for the long term, the investor might be looking at financial independence. An example of short term aim might be to accumulate enough money for some personal events. No matter what the aims are, always try to be more precise. Instead of wanting to have a lot of money, come up with a specific amount to have at the end. This will allow for more specific and thus, achievable goals. In addition, one has to weigh the risks of the investments and goals against the time horizon that she has.

On a final note, it does not matter how old you are. You can start anytime. You only have to set precise goals, start to save or invest with the right investing knowledge, maintain the discipline for a good number of years, usually more than three years, to reach your goals or to retire comfortably.

Author: Benji Foo
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Stop praying! The facts that are right in front of you is that the oil price is going up. Despite all the assurance and promises that politicians present to you, what is happening in front of your very own eyes shows you that the oil price is going up. How to invest in oil to make a fortune out of it rather than pressurize yourself under the current circumstances?

Oil Investment Basics #1 Invest in Oil via Managed Funds

If you do a simple search, you will find that a lot of mutual funds that are providing oil investment opportunities. For the skeptic and conservative group of investors, investing in oil via mutual funds or managed funds is a great way to make money out of the rising value of oil.

This is because prior to signing up for a mutual fund, a representative of the fund will explain to you what are the details and the investment styles of the fund thoroughly.

Oil Investment Basics #2 Invest in Oil via Oil Company Stocks

Before reading this article, I am sure that you are aware of the few major oil companies such as Exxon and Shell. You can always invest in oil by putting your money on the stocks of these companies. Just a few years back when the oil price started to rise blatantly, Exxon reported its best profit ever.

By becoming a shareholder of these companies, you are indirectly trying to make a fortune from the rising price of oil.

Oil Investment Basics #3 Futures

When you talk about futures trading, you are talking about trading commodities. This is the most risky method. However, the riskier an investment, the higher the profits that you will be earning. Futures trading is very much like the day to day stock market trading but the "company" that you are buying and selling are minerals such as oil, gold and silver.

The downside of trying to invest in oil via futures trading is that the start up capital that you need will be at least $5000, which is very high and not recommended for small time traders.

Author: Wallace Goldman
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Very few people do not dream about being rich, but most have the same problem and that is that they do not know how to make a fortune. One way to become wealthy is through wise investments. There are many areas that are profitable and the only way to find out what is best, is to research the different options, keep up to date with events and to just gather experience. Investments will give the complete protection to the individual's life, as they benefit them during their age of retirements. It is wise to be independent, specifically when it comes to money. Investments will certainly make a person to live with confidence at any age of his life.

It is possible to invest your way to a fortune, but success depends on how and what you do. For one there is investing in a particular area. Popular areas for investors include real estate, foreign exchange of currencies and stocks. There are, however, other potentially profitable areas that have made many people rich in the last few years. These commodities have shown sharp increases in value over a short period of time and since they have not decreased in price, they are a good investment that will one day make you rich. Safe and profitable commodities include gold, silver, platinum, copper and rice or coffee. Crude oil, ethanol and corn are also areas that have made millionaires out of people who had the insight to recognize market trends and who went along for the ride.

You do not have to be rich in order to start making investments. It is possible to start small and work your way to a fortune through smart investments and tactics. There is a wide range of products that can be invested in and surely something can be found in any price range, you just have to get out, learn and do it. Better understanding, wide knowledge will help you to make your investments more successful. Close observance in the market will drive out a better success, which in turn you can achieve a better yield.

Author: Joshua Geralds
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The economy is slumping and no market is looking good, whether it be the stock market, housing market, or the prices you pay at the grocery store. But there are some things you can do to take advantage of the situation and prepare yourself for the future. Here are some tips:

Pay down debt with your refund and stimulus check

Average tax refunds are over $2000 and the tax stimulus plan will put hundreds of dollars into ordinary American's pockets. The government intended for you to spend this money to stimulate the economy. Don't be tempted... Pay off your high interest debt. A majority of Americans have CC debt, pay it off now. Don't even save some of your refund to buy a gift... lower your debt. The government won't always be this friendly and hand money back to you.

Take advantage of life insurance

Term life insurance has been declining in price over the last decade, 33% for some categories. For as little as $30/month you can get a 20 year $500,000 policy.

Don't take a loan out of your 401k

Let's not be stupid here during the recession. 18% of people currently have a loan out of their 401k. The problem with taking a loan out of your 401k is that you pull out pretax dollars, but pay it back with money you've already paid taxes on. When you withdraw the money at retirement, you're essentially double taxed.

Invest Long Term - Invest in the Stock Market

The best advice I could give here. Sure the market is volatile and gaining and dropping hundreds of points a day. But the market is correcting and at a low point right now. Haven't you ever heard "Buy low and sell high?" The best time to buy is when the market is at the low point. Is that low point right now, know one knows for sure, probably not. But it's definitely going to go back up given time. With that said, invest for 10-20-30 years down the road. Diversify in international stocks and various indexes.

Author: Joshua Saunders
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How Funds are sold

Mutual Funds primarily depend upon individual agents and distribution companies to market their schemes to the investors. Nowadays, they also market their schemes directly.

The individual agents who sell schemes of various Mutual Funds also act as financial advisors to many investors. Hence they are required to clear various examinations before acting as an agent. Many Mutual Funds prefer to deal with distribution agency than individual agents as it is easier to manage. These distribution agencies, with their highly qualified executives, will be able to offer better financial advice than individual agents to the investors.

Nowadays, the sales officers and other employees of the investment companies directly approach the investors (particularly the high net worth individuals and corporate clients) to sell different schemes. However, most of the sales of Mutual Funds happen through other distribution route than from marketing directly.

Investment Policies

Every Mutual Fund has a specified investment policy which will be described in the Mutual Fund's prospectus. A family of Mutual Funds will be managed by an Asset Management Company. This Asset Management Company will collect funds from investors and charge a management fee for operating them. They enable investors to invest across different market sectors and switch assets across funds while still benefiting from centralized record keeping.

The investment policies of different types of funds are as follows:

• Equity Funds. They invest in stock. However, they will hold 4% to 5% of their assets in money market securities to offer liquidity. Income funds will hold shares of firms giving high dividend yield and Growth funds will hold shares of firms that enable faster capital appreciation. Sector funds focus on a particular industry.

• Debt Funds. These funds invest in fixed-income securities. Different funds will concentrate on Treasury bills, corporate bonds, Mortgage-backed securities and other kinds of bonds. Some of the funds also specialize on maturity.

• Index Funds. Index funds buy shares that are included in a particular index in proportion to each share's representation in that index. Investing in index funds is a passive strategy because the investors need not do any security analysis.

• Money Market Funds. These funds invest in short-term low-risk instruments of the money market. Since the liquidity is high, some of the funds even offer cheque writing facilities to their investors.

Apart from these funds there are many different varieties of funds with unique investment policies like the international funds which invest in different securities across the world, the balanced funds which minimize risk without compromising heavily on growth opportunities and current income and the flexible funds which depend on market timing.

Author: Dilip V Mohan
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There are many kinds of investments you can avail of but there are an equal number of factors you have to consider before you put in your money.

You can start by searching for investment opportunities taking in to account you risk tolerance, the investments options offered and considering your long-term financial objectives.

Investing money is akin to purchasing an automobile. Where a vehicle is concerned you are going to thoroughly review the model and everything about it before you decide to make the payment, and the same strategy can be applied to investing money.

Before you invest, you have to learn all about investing that you possibly can and also talk with people who are currently investing money.

To get proficient in the ways of the stock market will take considerable time but I can assure you that your time will not be wasted. Today there are a number of books on how to get started, e-books, websites that offer free tutorials, or you can even go through a college level diploma, which is what most stock brokers do. With your internet account you can even start indulging using fake cash, just to get a hang of what it's like.

Starting with stock exchange simulation websites is a very good option you have and you can even make pretend investments and see how they fare.

Stock exchange simulators do not offer all types of investments actually on offer and to understand them you will have to put in some efforts by reading stuff about them.

Now that you are a prospective investor, make it a point to read about everything that you can about the stock market and investing but before you do this make sure you have the basics understood or you may end up getting confused about the whole arena.

Most importantly meet up with a financial planner. They will prove to be of immense help in chalking out a financial plan for you considering your financial objectives. Trust me these people are good! They are trained professionals and they can easily and correctly advise you on where to invest your money. Listen to them carefully and you will get to learn a lot of things about investing.

Author: Joshua Geralds
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One Key to Asset Appreciation is to Invest Where There is Significant Growth and price appreciation. The mere fact that close to 98% of what we do and have is related in some way to crude oil means that even in this great era of tech and communication we all need to be concerned. Not only are petrochemical products used to power our vehicles, run our machines and heat or cool our homes, they are literally the fabric of our lives, the plastic bags and bottles for our goods, and the fertilizers that grow our food to name only a fraction of its benefit.

What is costing you the most these days? Gasoline! Why not participate in the profits being made if you have some money to invest? All of this brings us to this question, and solution about why you should be investing in oil and gas ventures.

And the answers are these:

Oil and gas offer substantial rewards with calculable returns within six to twelve months with a better than 10:1 ROI (return On Investment), which is greater than fifty percent annual rate of return.

The associated risk is considerably less than it was a decade ago with success rates as high as 90%.

According to Newsweek Magazine drilling is one of the best investments for tax advantages.

The availability of small, manageable prospects, overseen by highly professional private companies like ours is flourishing.

The competition is not as fierce as it was in the past because the big money oil giants have all gone offshore because they lack the wherewithal to prospect in the remaining fields. Over 10,000 oil companies have seen their demise since 1982 because of this.

Demand for oil, as we have already stated above is skyrocketing, in fact it is doubling every ten years.

Price forecasts and long-range projections are way up.

Drilling activity is at the lowest it has been in fifty years and so the associated costs are as well.

Industry partners' recent advances in oil locating technology has improved recovery and reduced risk. And, the latest drilling techniques have increased access and availability as well.

And finally, the traditional supplies of drilling money are no longer available which has created a bonanza for independent investors and venture capitalists

Author: Ricky Gee
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Private equity investing means making an investment in securities through a negotiated process. Majority of these investments are in companies that are not listed on the stock exchange. While private equity investing can deliver impressive returns, it is more prone to risk than other forms of financing, such as debt.

If you're planning to do some private equity investing of your own, consider the following:

• Determine the main goals for the overall portfolio.
• Decide the size of private equity allocation.
• Diversification is a vital aspect of any portfolio. It's wise to maintain a healthy mix of target companies across geographies and industries.
• Remember that returns might be volatile in the short-term. Be prepared to stay invested for a reasonable time period, generally five to ten years.
• Returns from private equity investing can only be realized when the stakes are sold. Therefore, there must be easy options available for exiting the investment.
• Returns are always proportionate to risk. Make sure you don't err in your judgment of the latter.

We already mentioned that private equity investing faces a range of risks that could be more severe than in other types of investments. Experienced investors can minimize some of the likely risks, but cannot eliminate them completely.

Environmental risk: Some countries suffer from a higher degree of political and economic instability, which is generally inimical to business. These countries are also likely to experience currency fluctuation and arbitrary changes in regulations. Again, emerging markets are notorious for their bureaucratic hurdles and associated corruption.

Certain countries have stringent or archaic corporate laws, which might make acquiring or divesting companies very difficult. You also need to watch out for accounting and disclosure norms, as well as any limitation of powers of foreign investors. All of these could severely impact your ability to exert influence as a key stakeholder. Also check for the availability of legal, accounting and banking support services.

In developed economies, there are many ways of realizing value from private equity investing, but that is not necessarily true of all countries. Before deciding on private equity investing, be sure to investigate the state of the capital markets and assure yourself that a proper exit mechanism exists.

Market risk: The management team of target companies will certainly present a rosy picture of their market and its future potential. Be sure to independently verify the data. Some sectors such as real estate are highly volatile, and investing all your resources in these businesses could prove disastrous.

Another element of risk that needs close examination is the quality of human resources. Often, entrepreneurs do not have prior working experience in professionally managed companies, which could affect their ability to manage the business. Remember that most smart private equity investors will never back a management team that doesn't match up.

Author: Akhil Shahani
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Learning to trade commodities is becoming more and more popular. An increasing number of private individual investors are moving away from straight equity stock investments and moving into new markets in search of ways to make money.

The fallout from the sub prime crisis in the US has been much greater than many commentators expected. As credit defaults have increased, the cost of borrowing has increased significantly as lenders in all areas (mortgages, credit cards, personal loans) become more wary of lending cheaply. This effect has become known as the credit crunch. However the credit squeeze has not stopped there. Virtually all businesses are funded in part by debt. As a direct result of this increased cost of debt, most business are now being hit with higher costs that impact their profits. As profits fall, so too do company stock prices.

Why learn to trade commodities?

From July 2007 to Jul 2008 the Dow Jones Industrial Average stock exchange fell in value by about 19%. In the same period Crude Oil has risen in value by about 112%. This fact just highlights the difference in performance between the equity sector and the commodities sectors.

The main difference between the two markets is that the commodity markets are demand driven. By their nature commodities are limited in supply, for example there is only a limited amount of oil in the ground. As econnomies grow and use up more of these resources the supply reduces while at the same time the demand continues to increase. These two effects can only ave one result - an increase in prices.

Author: James McKerr
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